- Q2 GAAP EPS $0.64 and Adjusted EPS $0.65 - Q2 Sales increase 23.5% to $205 Million - $236 Million in Q2 Orders / Book-to-bill of 1.15x -
St. Louis, May 09, 2022 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter ended March 31, 2022 (Q2 2022) compared to the second quarter ended March 31, 2021 (Q2 2021).
Operating Highlights
Vic Richey, Chairman and Chief Executive Officer, commented, “Our global team delivered strong orders, sales, and earnings growth in Q2. I was particularly pleased to see increased activity from our North American utility customers drive revenue growth and margin improvement in our USG segment. In A&D, it was also encouraging to see our Q2 commercial aerospace revenue at the highest level since the beginning of the pandemic. Overall, the combination of meaningful organic growth and the contribution of recent acquisitions helped us deliver record Q2 revenue of $205 million and 16 percent growth in Adjusted EPS.
“The quarter was not without its challenges, as supply chain issues and wage and material cost inflation continue to present headwinds. Our teams continue to work diligently to navigate supply chain issues and implement price increases to offset the impacts of inflation. These actions enabled us to exceed earnings expectations in the quarter. It is through the hard work and dedication of our employees that we were able overcome these economic disruptions to support our customers and deliver meaningfully improved operating results.
“We continue to see strong entered orders across our commercial aerospace, electric utility, renewables and Test end-markets. Our year-to-date orders of $461 million are up 38% over the prior year, resulting in record backlog which gives us confidence in our ability to deliver our stated revenue and earnings goals for 2022. Our end-market exposure is favorable and we are well-positioned to deliver profitable long-term growth and shareholder value as market demand continues to recover.”
Segment Performance
Aerospace & Defense (A&D)
Utility Solutions Group (USG)
Share Repurchase ProgramAs previously announced in our August 9, 2021 press release, the Company’s Board of Directors approved a new stock repurchase program. During Q2 2022, the Company repurchased approximately 113,000 shares for $8 million. As of March 31, 2022, the Company has repurchased approximately 229,000 shares for $18 million.
Dividend PaymentThe next quarterly cash dividend of $0.08 per share will be paid on July 19, 2022 to stockholders of record on July 5, 2022.
Board of DirectorsEffective May 4, 2022, the Company added an additional independent director, Janice L. Hess, to the Company’s Board of Directors. She was also named to the Nominating and Corporate Governance Committee of the Board of Directors.
Since 2014, Ms. Hess has been the President of the Engineered Systems Segment (ESS) and Teledyne Brown Engineering of Teledyne Technologies Incorporated (NYSE:TDY), a diversified multinational company which provides enabling technologies for industrial growth markets that require advanced technology and high reliability. She has full responsibility for ESS strategic positioning, growth, and profitability. Serving energy, space, maritime, and defense markets, ESS designs, develops and delivers a diverse array of advanced technology-driven solutions, systems, products, and services for complex and harsh environments. She previously served in a number of positions of increasing financial, operational, and executive responsibility with Teledyne from 2000 to 2014, including as ESS’s Executive Vice President and Chief Financial Officer.
She was selected to serve on the Company’s Board on the basis of her four decades of operational, financial, and leadership experience, her commitment to continuous improvement, and her performance in growing traditional, adjacent, and emerging markets similar to those served by the Company, which will enable her to assist the Board in guiding Company strategy at the highest level.
Ms. Hess has a BSBA in Accounting from Auburn University. She holds a Certificate in Management from the University of Virginia’s Darden Graduate School of Business, as well as a professional designation in Advanced Government Contracting. She is a Certified Public Accountant in Alabama (inactive) and a graduate of Leadership Alabama.
Business Outlook – 2022 Management’s expectations for 2022 remain consistent with the details outlined in our November 18, 2021 release. Our 2022 guidance represents meaningful growth in sales, Adjusted EBIT, and Adjusted EBITDA across each of the Company’s business segments.
Our year-to-date results have generally matched our expectations as presented in November. Consistent with prior years and our November guidance, our revenue and earnings will be more second half weighted and reflect a significant ramp compared to the first half of the year. With solid backlog driving revenue growth and improving margins, we are on track to deliver our stated goal for the year of adjusted earnings per share in the range of $3.10 to $3.20. Our expectation is for Q3 Adjusted EPS in the range of $0.84 to $0.91 per share, representing growth of 25 to 35 percent over the prior year.
Conference CallThe Company will host a conference call today, May 9, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2022 results. A live audio webcast and an accompanying slide presentation will be available on the Company’s website at https://investor.escotechnologies.com. A replay of the conference call will be available on the Company’s website noted above or by phone (dial 1-855-859-2056 and enter the pass code 9495619).
Forward-Looking StatementsStatements in this press release regarding the timing and magnitude of recovery in the Company’s end markets, the continuing impacts of COVID-19 on the Company’s results, sales, Adjusted SG&A, Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost reduction efforts, margins, growth, the financial success of the Company, the strength of its end markets, the outlook for the A&D, Test and USG segments, the ability to increase shareholder value, the timing and success of acquisition efforts, internal investments in new products and solutions, the impacts of inflation, the long-term success of the Company, and any other statements which are not strictly historical are “forward-looking” statements within the meaning of the safe harbor provisions of the federal securities laws.
Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021; the availability and acceptance of viable COVID-19 vaccines by enough of the U.S. and world’s population to curtail the pandemic; the continuing impact of the COVID-19 pandemic and the effects of known or unknown COVID-19 variants including labor shortages, facility closures, shelter in place policies or quarantines, material shortages, transportation delays, termination or delays of Company contracts, and the inability of our suppliers or customers to perform; the impacts of Executive Order 14042 and other vaccine mandates on our employees and businesses; the impacts of natural disasters on the Company’s operations and those of the Company’s customers and suppliers; the timing and content of future contract awards or customer orders; the appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties; the success of the Company’s acquisition efforts; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; changes in the costs and availability of certain raw materials; labor disputes; changes in U.S. tax laws and regulations; other changes in laws and regulations including but not limited to changes in accounting standards and foreign taxation; changes in interest rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration of recently acquired businesses.
Non-GAAP Financial MeasuresThe financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financials Measures, and “Adjusted EPS” as GAAP earnings per share (EPS) excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures, which were ($0.01) per share in Q2 2022.
EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.
ESCO, headquartered in St. Louis, Missouri: Manufactures highly-engineered filtration and fluid control products for the aviation, Navy, space and process markets worldwide, as well as composite-based products and solutions for Navy, defense and industrial customers; is the industry leader in RF shielding and EMC test products; and provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries. Further information regarding ESCO and its subsidiaries is available on the Company’s website at www.escotechnologies.com.
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | |||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||
Net Sales | $ | 204,928 | 165,894 | ||||||||||
Cost and Expenses: | |||||||||||||
Cost of sales | 128,375 | 103,553 | |||||||||||
Selling, general and administrative expenses | 47,959 | 38,746 | |||||||||||
Amortization of intangible assets | 6,510 | 4,917 | |||||||||||
Interest expense | 1,020 | 432 | |||||||||||
Other (income) expenses, net | (604 | ) | (1,903 | ) | |||||||||
Total costs and expenses | 183,260 | 145,745 | |||||||||||
Earnings before income taxes | 21,668 | 20,149 | |||||||||||
Income tax expense | 5,085 | 4,745 | |||||||||||
Net earnings | $ | 16,583 | 15,404 | ||||||||||
Diluted EPS: | |||||||||||||
Diluted - GAAP | |||||||||||||
Net earnings | $ | 0.64 | 0.59 | ||||||||||
Diluted - As Adjusted Basis | |||||||||||||
Net earnings | $ | 0.65 | (1 | ) | 0.56 | (2 | ) | ||||||
Diluted average common shares O/S: | 26,045 | 26,201 | |||||||||||
(1 | ) | Q2 2022 Adjusted EPS excludes $0.01 per share of after-tax charges associated with the NEco acquisition inventory step-up charge and Corporate acquisition related costs. | |||||||||||
(2 | ) | Q2 2021 Adjusted EPS excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation. |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | |||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
Six Months Ended March 31, 2022 | Six Months Ended March 31, 2021 | ||||||||||||
Net Sales | $ | 381,938 | 328,568 | ||||||||||
Cost and Expenses: | |||||||||||||
Cost of sales | 236,680 | 203,175 | |||||||||||
Selling, general and administrative expenses | 94,594 | 79,746 | |||||||||||
Amortization of intangible assets | 12,977 | 9,865 | |||||||||||
Interest expense | 1,753 | 973 | |||||||||||
Other (income) expenses, net | (571 | ) | (1,880 | ) | |||||||||
Total costs and expenses | 345,433 | 291,879 | |||||||||||
Earnings before income taxes | 36,505 | 36,689 | |||||||||||
Income tax expense | 8,398 | 8,467 | |||||||||||
Net earnings | $ | 28,107 | 28,222 | ||||||||||
Diluted EPS: | |||||||||||||
Diluted - GAAP | |||||||||||||
Net earnings | $ | 1.08 | 1.08 | ||||||||||
Diluted - As Adjusted Basis | |||||||||||||
Net earnings | $ | 1.11 | (1 | ) | 1.08 | (2 | ) | ||||||
Diluted average common shares O/S: | 26,098 | 26,192 | |||||||||||
(1 | ) | YTD Q2 2022 Adjusted EPS excludes $0.03 per share of after-tax charges associated with the Altanova & NEco acquisition inventory step-up charges and Corporate acquisition related costs. | |||||||||||
(2 | ) | YTD Q2 2021 Adjusted EPS excludes after-tax income associated with the final settlement from the sale of the Doble Watertown facility offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up. |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | |||||||||||||||
Condensed Business Segment Information (Unaudited) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
GAAP | As Adjusted | ||||||||||||||
Q2 2022 | Q2 2021 | Q2 2022 | Q2 2021 | ||||||||||||
Net Sales | |||||||||||||||
Aerospace & Defense | $ | 84,821 | 82,528 | 84,821 | 82,528 | ||||||||||
USG | 64,191 | 39,555 | 64,191 | 39,555 | |||||||||||
Test | 55,916 | 43,811 | 55,916 | 43,811 | |||||||||||
Totals | $ | 204,928 | 165,894 | 204,928 | 165,894 | ||||||||||
EBIT | |||||||||||||||
Aerospace & Defense | $ | 14,349 | 17,006 | 14,489 | 17,046 | ||||||||||
USG | 11,314 | 6,725 | 11,331 | 5,461 | |||||||||||
Test | 8,494 | 5,688 | 8,494 | 5,688 | |||||||||||
Corporate | (11,469 | ) | (8,838 | ) | (11,344 | ) | (8,548 | ) | |||||||
Consolidated EBIT | 22,688 | 20,581 | 22,970 | 19,647 | |||||||||||
Less: Interest expense | (1,020 | ) | (432 | ) | (1,020 | ) | (432 | ) | |||||||
Less: Income tax expense | (5,085 | ) | (4,745 | ) | (5,150 | ) | (4,530 | ) | |||||||
Net earnings | $ | 16,583 | 15,404 | 16,800 | 14,685 | ||||||||||
Note 1: Adjusted net earnings were $16.8 million in Q2 2022 which excludes $0.01 per share of after-tax charges associated with the NEco acquisition inventory step-up charge and Corporate acquisition related costs. | |||||||||||||||
Note 2: Adjusted net earnings were $14.7 million in Q2 2021 which excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation. | |||||||||||||||
EBITDA Reconciliation to Net earnings: | Adjusted | Adjusted | |||||||||||||
Q2 2022 | Q2 2021 | Q2 2022 | Q2 2021 | ||||||||||||
Consolidated EBITDA | $ | 34,808 | 30,684 | 35,090 | 29,750 | ||||||||||
Less: Depr & Amort | (12,120 | ) | (10,103 | ) | (12,120 | ) | (10,103 | ) | |||||||
Consolidated EBIT | 22,688 | 20,581 | 22,970 | 19,647 | |||||||||||
Less: Interest expense | (1,020 | ) | (432 | ) | (1,020 | ) | (432 | ) | |||||||
Less: Income tax expense | (5,085 | ) | (4,745 | ) | (5,150 | ) | (4,530 | ) | |||||||
Net earnings | $ | 16,583 | 15,404 | 16,800 | 14,685 | ||||||||||
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | |||||||||||||||
Condensed Business Segment Information (Unaudited) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
GAAP | As Adjusted | ||||||||||||||
YTD Q2 | YTD Q2 | YTD Q2 | YTD Q2 | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net Sales | |||||||||||||||
Aerospace & Defense | $ | 155,065 | 149,144 | 155,065 | 149,144 | ||||||||||
USG | 127,676 | 94,095 | 127,676 | 94,095 | |||||||||||
Test | 99,197 | 85,329 | 99,197 | 85,329 | |||||||||||
Totals | $ | 381,938 | 328,568 | 381,938 | 328,568 | ||||||||||
EBIT | |||||||||||||||
Aerospace & Defense | $ | 24,304 | 25,266 | 24,639 | 25,626 | ||||||||||
USG | 24,705 | 19,456 | 25,172 | 18,842 | |||||||||||
Test | 12,459 | 11,030 | 12,459 | 11,030 | |||||||||||
Corporate | (23,210 | ) | (18,090 | ) | (22,905 | ) | (17,740 | ) | |||||||
Consolidated EBIT | 38,258 | 37,662 | 39,365 | 37,758 | |||||||||||
Less: Interest expense | (1,753 | ) | (973 | ) | (1,753 | ) | (973 | ) | |||||||
Less: Income tax | (8,398 | ) | (8,467 | ) | (8,653 | ) | (8,489 | ) | |||||||
Net earnings | $ | 28,107 | 28,222 | 28,959 | 28,296 | ||||||||||
Note 1: Adjusted net earnings were $29.0 million in YTD Q2 2022 which excludes $0.03 per share of after-tax charges associated with the Altanova & NEco acquisition inventory step-up charges and Corporate acquisition related costs. | |||||||||||||||
Note 2: Adjusted net earnings were $28.3 million in YTD Q2 2021 which excludes income from the final settlement on the sale of the Doble Watertown facility offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up. | |||||||||||||||
EBITDA Reconciliation to Net earnings: | Adjusted | Adjusted | |||||||||||||
YTD Q2 | YTD Q2 | YTD Q2 | YTD Q2 | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Consolidated EBITDA | $ | 62,550 | 57,777 | 63,657 | 57,873 | ||||||||||
Less: Depr & Amort | (24,292 | ) | (20,115 | ) | (24,292 | ) | (20,115 | ) | |||||||
Consolidated EBIT | 38,258 | 37,662 | 39,365 | 37,758 | |||||||||||
Less: Interest expense | (1,753 | ) | (973 | ) | (1,753 | ) | (973 | ) | |||||||
Less: Income tax expense | (8,398 | ) | (8,467 | ) | (8,653 | ) | (8,489 | ) | |||||||
Net earnings | $ | 28,107 | 28,222 | 28,959 | 28,296 | ||||||||||
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | ||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
(Dollars in thousands) | ||||||
March 31, 2022 | September 30, 2021 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 54,324 | 56,232 | |||
Accounts receivable, net | 140,497 | 146,341 | ||||
Contract assets | 111,453 | 93,771 | ||||
Inventories | 175,152 | 147,148 | ||||
Other current assets | 31,972 | 22,662 | ||||
Total current assets | 513,398 | 466,154 | ||||
Property, plant and equipment, net | 156,963 | 154,265 | ||||
Intangible assets, net | 407,203 | 409,250 | ||||
Goodwill | 508,406 | 504,853 | ||||
Operating lease assets | 30,139 | 31,846 | ||||
Other assets | 9,677 | 10,977 | ||||
$ | 1,625,786 | 1,577,345 | ||||
Liabilities and Shareholders' Equity | ||||||
Current maturities of long-term debt | $ | 20,000 | 20,000 | |||
Accounts payable | 71,811 | 56,669 | ||||
Contract liabilities | 108,629 | 106,045 | ||||
Other current liabilities | 77,355 | 92,281 | ||||
Total current liabilities | 277,795 | 274,995 | ||||
Deferred tax liabilities | 82,187 | 73,560 | ||||
Non-current operating lease liabilities | 26,302 | 28,032 | ||||
Other liabilities | 42,329 | 47,062 | ||||
Long-term debt | 176,000 | 134,000 | ||||
Shareholders' equity | 1,021,173 | 1,019,696 | ||||
$ | 1,625,786 | 1,577,345 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | ||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||
(Dollars in thousands) | ||||||
Six Months Ended March 31, 2022 | Six Months Ended March 31, 2021 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 28,107 | 28,222 | |||
Adjustments to reconcile net earnings to net cash | ||||||
provided by operating activities: | ||||||
Depreciation and amortization | 24,292 | 20,115 | ||||
Stock compensation expense | 3,428 | 2,745 | ||||
Changes in assets and liabilities | (41,451 | ) | 9,179 | |||
Gain on sale of building and land | 0 | (1,950 | ) | |||
Effect of deferred taxes | 8,627 | (989 | ) | |||
Net cash provided by operating activities | 23,003 | 57,322 | ||||
Cash flows from investing activities: | ||||||
Acquisition of business, net of cash acquired | (15,592 | ) | (6,684 | ) | ||
Capital expenditures | (20,715 | ) | (13,153 | ) | ||
Additions to capitalized software | (4,727 | ) | (3,973 | ) | ||
Proceeds from sale of building and land | 0 | 1,950 | ||||
Net cash used by investing activities | (41,034 | ) | (21,860 | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from long-term debt | 88,000 | 34,000 | ||||
Principal payments on long-term debt and short-term borrowings | (46,000 | ) | (74,368 | ) | ||
Dividends paid | (4,150 | ) | (4,167 | ) | ||
Purchases of common stock into treasury | (17,878 | ) | 0 | |||
Other | (2,719 | ) | 0 | |||
Net cash provided (used) by financing activities | 17,253 | (44,535 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (1,130 | ) | 2,166 | |||
Net (decrease) increase in cash and cash equivalents | (1,908 | ) | (6,907 | ) | ||
Cash and cash equivalents, beginning of period | 56,232 | 52,560 | ||||
Cash and cash equivalents, end of period | $ | 54,324 | 45,653 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | ||||||||||||||
Other Selected Financial Data (Unaudited) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Backlog And Entered Orders - Q2 2022 | Aerospace & Defense | USG | Test | Total | ||||||||||
Beginning Backlog - 1/1/22 | $ | 387,173 | 94,382 | 157,844 | 639,399 | |||||||||
Entered Orders | 94,550 | 86,485 | 55,443 | 236,478 | ||||||||||
Sales | (84,821 | ) | (64,191 | ) | (55,916 | ) | (204,928 | ) | ||||||
Ending Backlog - 3/31/22 | $ | 396,902 | 116,676 | 157,371 | 670,949 | |||||||||
Backlog And Entered Orders - YTD Q2 2022 | Aerospace & Defense | USG | Test | Total | ||||||||||
Beginning Backlog - 10/1/21 | $ | 367,216 | 91,631 | 133,176 | 592,023 | |||||||||
Entered Orders | 184,751 | 152,721 | 123,392 | 460,864 | ||||||||||
Sales | (155,065 | ) | (127,676 | ) | (99,197 | ) | (381,938 | ) | ||||||
Ending Backlog - 3/31/22 | $ | 396,902 | 116,676 | 157,371 | 670,949 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES | |||||
Reconciliation of Non-GAAP Financial Measures (Unaudited) | |||||
EPS – Adjusted Basis Reconciliation – Q2 2022 | |||||
EPS – GAAP Basis – Q2 2022 | $ | 0.64 | |||
Adjustments (defined below) | 0.01 | ||||
EPS – As Adjusted Basis – Q2 2022 | $ | 0.65 | |||
Adjustments exclude $0.01 per share consisting of NEco acquisition inventory | |||||
step-up charges and Corporate related acquisition costs in the second quarter of 2022. | |||||
The $0.01 of EPS adjustments per share consists of $282K of pre-tax charges | |||||
offset by $65K of tax benefit for net impact of $217K. | |||||
EPS – Adjusted Basis Reconciliation – Q2 2021 | |||||
EPS GAAP Basis – Q2 2021 | $ | 0.59 | |||
Adjustments (defined below) | (0.03 | ) | |||
EPS – As Adjusted Basis – Q2 2021 | $ | 0.56 | |||
Adjustments exclude $0.03 per share consisting of income associated with the final | |||||
settlement from the sale of the Doble Watertown facility partially offset by charges | |||||
related to the Doble Manta facility consolidation in the second quarter of 2021. | |||||
The $0.03 of EPS adjustments per share consists of $934K of pre-tax income | |||||
offset by $215K of tax expense for net impact of $719K. | |||||
EPS – Adjusted Basis Reconciliation – YTD Q2 2022 | |||||
EPS – GAAP Basis – YTD Q2 2022 | $ | 1.08 | |||
Adjustments (defined below) | 0.03 | ||||
EPS – As Adjusted Basis – YTD Q2 2022 | $ | 1.11 | |||
Adjustments exclude $0.03 per share consisting of Altanova & NEco acquisition inventory | |||||
step-up charges and Corporate related acquisition costs in the first six months of 2022. | |||||
The $0.03 of EPS adjustments per share consists of $1,107K of pre-tax charges | |||||
offset by $255K of tax benefit for net impact of $852K. | |||||
SOURCE ESCO Technologies Inc.Kate Lowrey, Vice President of Investor Relations, (314) 213-7277
- Прибыль на акцию по GAAP за 2 квартал составила 0,64 доллара США, Скорректированная прибыль на акцию - 0,65 доллара США - Продажи во 2 квартале увеличились на 23,5% до 205 миллионов долларов США - 236 миллионов долларов США при заказе во 2 квартале в 1,15 раза -
Сент-Луис, 09 мая 2022 г. (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, или Компания) сегодня сообщила о своих операционных результатах за второй квартал, закончившийся 31 марта 2022 г. (2 квартал 2022 г.) по сравнению со вторым кварталом, закончившимся 31 марта 2021 г. (2 квартал 2021 г.).
Основные моменты работы
Вик Ричи, председатель правления и главный исполнительный директор, прокомментировал: “Наша глобальная команда обеспечила значительный рост заказов, продаж и прибыли во 2 квартале. Мне было особенно приятно видеть, что возросшая активность наших североамериканских потребителей коммунальных услуг привела к росту выручки и повышению маржи в нашем сегменте USG. Что касается A& D, то также обнадеживает тот факт, что наши доходы от коммерческой аэрокосмической деятельности во втором квартале достигли самого высокого уровня с начала пандемии. В целом, сочетание значительного органического роста и вклада недавних приобретений помогло нам обеспечить рекордную выручку за 2 квартал в размере 205 миллионов долларов и 16-процентный рост скорректированной прибыли на акцию.
“Квартал не обошелся без проблем, поскольку проблемы с цепочками поставок, а также инфляция заработной платы и материальных затрат продолжают создавать препятствия. Наши команды продолжают усердно работать над решением проблем в цепочке поставок и повышением цен, чтобы компенсировать последствия инфляции. Эти действия позволили нам превзойти ожидания по прибыли в этом квартале. Именно благодаря упорной работе и самоотверженности наших сотрудников мы смогли преодолеть эти экономические трудности, чтобы поддержать наших клиентов и добиться значительного улучшения операционных результатов.
“Мы по-прежнему видим высокие поступившие заказы на наших коммерческих аэрокосмических, электроэнергетических, возобновляемых источниках энергии и конечных рынках тестирования. Наши годовые заказы на сумму 461 миллион долларов выросли на 38% по сравнению с предыдущим годом, что привело к рекордному отставанию, что дает нам уверенность в нашей способности достичь заявленных целей по выручке и прибыли на 2022 год. Наше влияние на конечный рынок благоприятно, и мы имеем хорошие возможности для обеспечения прибыльного долгосрочного роста и акционерной стоимости, поскольку рыночный спрос продолжает восстанавливаться”.
Показатели сегмента
Аэрокосмическая и оборонная промышленность (A&D)
Группа коммунальных решений (USG)
Программа обратного выкупа акций Как было ранее объявлено в нашем пресс-релизе от 9 августа 2021 года, Совет директоров Компании одобрил новую программу обратного выкупа акций. Во 2 квартале 2022 года Компания выкупила около 113 000 акций за 8 миллионов долларов. По состоянию на 31 марта 2022 года Компания выкупила около 229 000 акций за 18 миллионов долларов.
Выплата дивидендов Следующий ежеквартальный денежный дивиденд в размере 0,08 доллара США на акцию будет выплачен 19 июля 2022 года акционерам record 5 июля 2022 года.
Совет Директоровэффект 4 мая 2022 года Компания добавила в состав Совета директоров Компании дополнительного независимого директора Дженис Л. Хесс. Она также была назначена в Комитет Совета директоров по назначениям и корпоративному управлению.
С 2014 года г-жа Хесс является президентом сегмента инженерных систем (ESS) и Teledyne Brown Engineering Teledyne Technologies Incorporated (NYSE:TDY), диверсифицированной многонациональной компании, предоставляющей технологии для развивающихся рынков, требующих передовых технологий и высокой надежности. Она несет полную ответственность за стратегическое позиционирование ESS, рост и прибыльность. Обслуживая энергетический, космический, морской и оборонный рынки, ESS разрабатывает, разрабатывает и поставляет широкий спектр передовых технологических решений, систем, продуктов и услуг для сложных и суровых условий. Ранее она занимала ряд должностей, связанных с повышением финансовой, операционной и исполнительной ответственности в Teledyne с 2000 по 2014 год, в том числе в качестве исполнительного вице-президента ESS и финансового директора.
Она была выбрана для работы в Совете директоров Компании на основе ее четырехдесятилетнего опыта работы, финансового и лидерского опыта, ее приверженности постоянному совершенствованию и ее работы на растущих традиционных, смежных и развивающихся рынках, аналогичных тем, которые обслуживает Компания, что позволит ей помогать Совету директоров в руководстве стратегией Компании на самом высоком уровне.
Мисс Хесс получила степень бакалавра в области бухгалтерского учета в Обернском университете. Она имеет сертификат в области менеджмента Высшей школы бизнеса Дардена Университета Вирджинии, а также профессиональную квалификацию в области передовых государственных контрактов. Она является сертифицированным государственным бухгалтером в Алабаме (неактивный) и выпускницей Школы лидерства в Алабаме.
Перспективы бизнеса – 2022 Ожидания руководства на 2022 год остаются в соответствии с деталями, изложенными в нашем выпуске от 18 ноября 2021 года. Наш прогноз на 2022 год отражает значительный рост продаж, скорректированной EBIT и скорректированной EBITDA в каждом из бизнес-сегментов Компании.
Наши результаты за год в целом соответствовали нашим ожиданиям, представленным в ноябре. В соответствии с предыдущими годами и нашим ноябрьским прогнозом, наши доходы и прибыль будут более взвешенными во втором полугодии и отражают значительный рост по сравнению с первым полугодием. С учетом значительного отставания, способствующего росту выручки и повышению рентабельности, мы находимся на пути к достижению нашей заявленной цели на год - скорректированной прибыли на акцию в диапазоне от 3,10 до 3,20 долл. Мы ожидаем, что скорректированная прибыль на акцию за 3 квартал составит от 0,84 до 0,91 доллара на акцию, что представляет собой рост на 25-35 процентов по сравнению с предыдущим годом.
Конференц-связь Компания проведет телефонную конференцию сегодня, 9 мая, в 16:00 по Центральному времени, чтобы обсудить результаты Компании за 2 квартал 2022 года. Прямая аудио-трансляция и сопровождающая слайд-презентация будут доступны на веб-сайте Компании по адресу https://investor.escotechnologies.com . Воспроизведение конференц-звонка будет доступно на веб-сайте Компании, указанном выше, или по телефону (наберите 1-855-859-2056 и введите код доступа 9495619).
Прогнозные заявления Заявления в этом пресс-релизе относительно сроков и масштабов восстановления на конечных рынках Компании, продолжающегося воздействия COVID-19 на результаты Компании, продажи, Скорректированные SG &A, Скорректированный EBIT, Скорректированный EBITDA, Скорректированный EPS, денежный поток, результаты усилий по сокращению затрат, рентабельность, рост, финансовый успех Компании, сила ее конечных рынков, перспективы для сегментов A & D, тестирования и USG, способность увеличивать акционерную стоимость, сроки и успех усилий по приобретению, внутренние инвестиции в новые продукты и решения, влияние инфляции, долгосрочный успех Компании и любые другие заявления, которые не являются строго историческими, являются “прогнозными” заявлениями по смыслу положений о безопасной гавани федеральных законов о ценных бумагах.
Инвесторы предупреждаются, что такие заявления являются только прогнозами и действуют только на дату настоящего выпуска, и Компания не берет на себя никаких обязательств по их обновлению, за исключением случаев, когда это может потребоваться в соответствии с применимыми законами или нормативными актами. Фактические результаты в будущем могут существенно отличаться от прогнозируемых в прогнозных заявлениях из-за рисков и неопределенностей, которые существуют в деятельности компании и бизнес-среды, включая, но не ограничиваясь, описанным в пункте 1А, “факторы риска”, в годовом отчете компании по форме 10-K за финансовый год, закончившийся 30 сентября 2021; наличие и принятии жизнеспособных COVID-19 вакцины достаточно для США и мирового населения по сдерживанию пандемии; продолжать воздействие COVID-19 пандемией и воздействию известных или неизвестных COVID-19 вариантов в том числе и дефицита рабочей силы, механизм закрытия, укрытия в политику или карантин, дефицит материалов, транспортные задержки, отмены или задержки в компанию договоров, и невозможность наших поставщиков или клиентов, для выполнения; последствий указ 14042, и другие вакцины мандатов на наших сотрудников и бизнеса; последствий стихийных бедствий на деятельность компании и те компании, клиенты и поставщики; сроки и содержание будущих контрактов или заказов клиентов; присвоение, распределение и доступности государственных средств; расторжение по инициативе правительства и других заказчиком контрактов или заказов; ослабление экономических условий в обслуживаемых рынков; успех компании конкурентов; изменение требований заказчика или клиента процедура банкротства; конкуренции; права на интеллектуальную собственность; технических трудностей; успех компании по приобретению усилия; доставка задержки или невыполнения обязательств клиентами; характеристики вопросов с ключевыми заказчиками, поставщиками и субподрядчиками; изменения в стоимости и наличия некоторых видов сырья; трудовые споры; изменения налоговыми законами и правилами США; другие изменения в законы и нормы, включая, но не ограничиваясь изменения в стандартах бухгалтерского учета и налогообложения иностранных; изменение процентных ставок; расходы, связанные с экологическим вопросам, вытекающим из действующих или бывших объектов; неопределенность в отношении окончательного решения существующих споров, исков, судебных споров и арбитража; и интеграции недавно приобретенных компаний.
Финансовые показатели, не относящиеся к GAAP Финансовые показатели EBIT, Скорректированный показатель EBIT, показатель EBITDA, Скорректированный показатель EBITDA и Скорректированный показатель EPS представлены в этом пресс-релизе. Компания определяет “EBIT” как прибыль до вычета процентов и налогов, “EBITDA” как прибыль до вычета процентов, налогов, износа и амортизации, “Скорректированный EBIT” и “Скорректированная EBITDA” как исключающие чистое влияние статей, описанных в прилагаемой Сверке финансовых показателей, не относящихся к GAAP, и “Скорректированный EPS” как прибыль на акцию по GAAP (EPS) без учета чистого влияния статей, описанных и выверенных в прилагаемой Сверке финансовых показателей, не относящихся к GAAP, которые составили (0,01 доллара США) на акцию во 2 квартале 2022 года.
Показатель EBIT, Скорректированный показатель EBIT, показатель EBITDA, Скорректированный показатель EBITDA и Скорректированный показатель EPS не признаются в соответствии с общепринятыми принципами бухгалтерского учета США (GAAP). Однако Руководство считает, что показатель EBIT, Скорректированный показатель EBIT, показатель EBITDA и Скорректированный показатель EBITDA полезны для оценки операционной прибыльности бизнес-сегментов Компании, поскольку они исключают проценты, налоги, износ и амортизацию, которые обычно учитываются по всей Компании на консолидированной основе. Показатель EBIT также является одним из показателей, используемых Руководством при определении распределения ресурсов внутри Компании, а также стимулирующего вознаграждения. Представление показателей EBIT, Скорректированной EBIT, EBITDA, Скорректированной EBITDA и скорректированной прибыли на акцию предоставляет инвесторам важную дополнительную информацию, облегчая сравнение с другими компаниями, многие из которых используют аналогичные финансовые показатели, не относящиеся к GAAP, для дополнения своих результатов по GAAP. Использование финансовых показателей, не относящихся к GAAP, не предназначено для замены каких-либо показателей эффективности, определенных в соответствии с GAAP.
ESCO со штаб-квартирой в Сент-Луисе, штат Миссури: Производит высокотехнологичные продукты для фильтрации и контроля жидкостей для авиации, военно-морского флота, космоса и технологических рынков по всему миру, а также продукты и решения на основе композитных материалов для военно-морских, оборонных и промышленных заказчиков; является лидером отрасли в области радиочастотной защиты и продуктов для испытаний на электромагнитную совместимость; и предоставляет диагностические инструменты, программное обеспечение и услуги в интересах промышленных потребителей электроэнергии, а также предприятий электроэнергетики и возобновляемых источников энергии. Дополнительная информация о ESCO и ее дочерних компаниях доступна на веб-сайте Компании по адресу www.escotechnologies.com .
ESCO Technologies INC. AND SUBSIDIARIES | |||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||
Net Sales | $ | 204,928 | 165,894 | ||||||||||
Cost and Expenses: | |||||||||||||
Cost of sales | 128,375 | 103,553 | |||||||||||
Selling, general and administrative expenses | 47,959 | 38,746 | |||||||||||
Amortization of intangible assets | 6,510 | 4,917 | |||||||||||
Interest expense | 1,020 | 432 | |||||||||||
Other (income) expenses, net | (604 | ) | (1,903 | ) | |||||||||
Total costs and expenses | 183,260 | 145,745 | |||||||||||
Earnings before income taxes | 21,668 | 20,149 | |||||||||||
Income tax expense | 5,085 | 4,745 | |||||||||||
Net earnings | $ | 16,583 | 15,404 | ||||||||||
Diluted EPS: | |||||||||||||
Diluted - GAAP | |||||||||||||
Net earnings | $ | 0.64 | 0.59 | ||||||||||
Diluted - As Adjusted Basis | |||||||||||||
Net earnings | $ | 0.65 | (1 | ) | 0.56 | (2 | ) | ||||||
Diluted average common shares O/S: | 26,045 | 26,201 | |||||||||||
(1 | ) | Q2 2022 Adjusted EPS excludes $0.01 per share of after-tax charges associated with the NEco acquisition inventory step-up charge and Corporate acquisition related costs. | |||||||||||
(2 | ) | Q2 2021 Adjusted EPS excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation. |
ESCO Technologies INC. AND SUBSIDIARIES | |||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
Six Months Ended March 31, 2022 | Six Months Ended March 31, 2021 | ||||||||||||
Net Sales | $ | 381,938 | 328,568 | ||||||||||
Cost and Expenses: | |||||||||||||
Cost of sales | 236,680 | 203,175 | |||||||||||
Selling, general and administrative expenses | 94,594 | 79,746 | |||||||||||
Amortization of intangible assets | 12,977 | 9,865 | |||||||||||
Interest expense | 1,753 | 973 | |||||||||||
Other (income) expenses, net | (571 | ) | (1,880 | ) | |||||||||
Total costs and expenses | 345,433 | 291,879 | |||||||||||
Earnings before income taxes | 36,505 | 36,689 | |||||||||||
Income tax expense | 8,398 | 8,467 | |||||||||||
Net earnings | $ | 28,107 | 28,222 | ||||||||||
Diluted EPS: | |||||||||||||
Diluted - GAAP | |||||||||||||
Net earnings | $ | 1.08 | 1.08 | ||||||||||
Diluted - As Adjusted Basis | |||||||||||||
Net earnings | $ | 1.11 | (1 | ) | 1.08 | (2 | ) | ||||||
Diluted average common shares O/S: | 26,098 | 26,192 | |||||||||||
(1 | ) | YTD Q2 2022 Adjusted EPS excludes $0.03 per share of after-tax charges associated with the Altanova & NEco acquisition inventory step-up charges and Corporate acquisition related costs. | |||||||||||
(2 | ) | YTD Q2 2021 Adjusted EPS excludes after-tax income associated with the final settlement from the sale of the Doble Watertown facility offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up. |
ESCO Technologies INC. AND SUBSIDIARIES | |||||||||||||||
Condensed Business Segment Information (Unaudited) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
GAAP | As Adjusted | ||||||||||||||
Q2 2022 | Q2 2021 | Q2 2022 | Q2 2021 | ||||||||||||
Net Sales | |||||||||||||||
Aerospace & Defense | $ | 84,821 | 82,528 | 84,821 | 82,528 | ||||||||||
USG | 64,191 | 39,555 | 64,191 | 39,555 | |||||||||||
Test | 55,916 | 43,811 | 55,916 | 43,811 | |||||||||||
Totals | $ | 204,928 | 165,894 | 204,928 | 165,894 | ||||||||||
EBIT | |||||||||||||||
Aerospace & Defense | $ | 14,349 | 17,006 | 14,489 | 17,046 | ||||||||||
USG | 11,314 | 6,725 | 11,331 | 5,461 | |||||||||||
Test | 8,494 | 5,688 | 8,494 | 5,688 | |||||||||||
Corporate | (11,469 | ) | (8,838 | ) | (11,344 | ) | (8,548 | ) | |||||||
Consolidated EBIT | 22,688 | 20,581 | 22,970 | 19,647 | |||||||||||
Less: Interest expense | (1,020 | ) | (432 | ) | (1,020 | ) | (432 | ) | |||||||
Less: Income tax expense | (5,085 | ) | (4,745 | ) | (5,150 | ) | (4,530 | ) | |||||||
Net earnings | $ | 16,583 | 15,404 | 16,800 | 14,685 | ||||||||||
Note 1: Adjusted net earnings were $16.8 million in Q2 2022 which excludes $0.01 per share of after-tax charges associated with the NEco acquisition inventory step-up charge and Corporate acquisition related costs. | |||||||||||||||
Note 2: Adjusted net earnings were $14.7 million in Q2 2021 which excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation. | |||||||||||||||
EBITDA Reconciliation to Net earnings: | Adjusted | Adjusted | |||||||||||||
Q2 2022 | Q2 2021 | Q2 2022 | Q2 2021 | ||||||||||||
Consolidated EBITDA | $ | 34,808 | 30,684 | 35,090 | 29,750 | ||||||||||
Less: Depr & Amort | (12,120 | ) | (10,103 | ) | (12,120 | ) | (10,103 | ) | |||||||
Consolidated EBIT | 22,688 | 20,581 | 22,970 | 19,647 | |||||||||||
Less: Interest expense | (1,020 | ) | (432 | ) | (1,020 | ) | (432 | ) | |||||||
Less: Income tax expense | (5,085 | ) | (4,745 | ) | (5,150 | ) | (4,530 | ) | |||||||
Net earnings | $ | 16,583 | 15,404 | 16,800 | 14,685 | ||||||||||
ESCO Technologies INC. AND SUBSIDIARIES | |||||||||||||||
Condensed Business Segment Information (Unaudited) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
GAAP | As Adjusted | ||||||||||||||
YTD Q2 | YTD Q2 | YTD Q2 | YTD Q2 | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net Sales | |||||||||||||||
Aerospace & Defense | $ | 155,065 | 149,144 | 155,065 | 149,144 | ||||||||||
USG | 127,676 | 94,095 | 127,676 | 94,095 | |||||||||||
Test | 99,197 | 85,329 | 99,197 | 85,329 | |||||||||||
Totals | $ | 381,938 | 328,568 | 381,938 | 328,568 | ||||||||||
EBIT | |||||||||||||||
Aerospace & Defense | $ | 24,304 | 25,266 | 24,639 | 25,626 | ||||||||||
USG | 24,705 | 19,456 | 25,172 | 18,842 | |||||||||||
Test | 12,459 | 11,030 | 12,459 | 11,030 | |||||||||||
Corporate | (23,210 | ) | (18,090 | ) | (22,905 | ) | (17,740 | ) | |||||||
Consolidated EBIT | 38,258 | 37,662 | 39,365 | 37,758 | |||||||||||
Less: Interest expense | (1,753 | ) | (973 | ) | (1,753 | ) | (973 | ) | |||||||
Less: Income tax | (8,398 | ) | (8,467 | ) | (8,653 | ) | (8,489 | ) | |||||||
Net earnings | $ | 28,107 | 28,222 | 28,959 | 28,296 | ||||||||||
Note 1: Adjusted net earnings were $29.0 million in YTD Q2 2022 which excludes $0.03 per share of after-tax charges associated with the Altanova & NEco acquisition inventory step-up charges and Corporate acquisition related costs. | |||||||||||||||
Note 2: Adjusted net earnings were $28.3 million in YTD Q2 2021 which excludes income from the final settlement on the sale of the Doble Watertown facility offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up. | |||||||||||||||
EBITDA Reconciliation to Net earnings: | Adjusted | Adjusted | |||||||||||||
YTD Q2 | YTD Q2 | YTD Q2 | YTD Q2 | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Consolidated EBITDA | $ | 62,550 | 57,777 | 63,657 | 57,873 | ||||||||||
Less: Depr & Amort | (24,292 | ) | (20,115 | ) | (24,292 | ) | (20,115 | ) | |||||||
Consolidated EBIT | 38,258 | 37,662 | 39,365 | 37,758 | |||||||||||
Less: Interest expense | (1,753 | ) | (973 | ) | (1,753 | ) | (973 | ) | |||||||
Less: Income tax expense | (8,398 | ) | (8,467 | ) | (8,653 | ) | (8,489 | ) | |||||||
Net earnings | $ | 28,107 | 28,222 | 28,959 | 28,296 | ||||||||||
ESCO Technologies INC. AND SUBSIDIARIES | ||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
(Dollars in thousands) | ||||||
March 31, 2022 | September 30, 2021 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 54,324 | 56,232 | |||
Accounts receivable, net | 140,497 | 146,341 | ||||
Contract assets | 111,453 | 93,771 | ||||
Inventories | 175,152 | 147,148 | ||||
Other current assets | 31,972 | 22,662 | ||||
Total current assets | 513,398 | 466,154 | ||||
Property, plant and equipment, net | 156,963 | 154,265 | ||||
Intangible assets, net | 407,203 | 409,250 | ||||
Goodwill | 508,406 | 504,853 | ||||
Operating lease assets | 30,139 | 31,846 | ||||
Other assets | 9,677 | 10,977 | ||||
$ | 1,625,786 | 1,577,345 | ||||
Liabilities and Shareholders' Equity | ||||||
Current maturities of long-term debt | $ | 20,000 | 20,000 | |||
Accounts payable | 71,811 | 56,669 | ||||
Contract liabilities | 108,629 | 106,045 | ||||
Other current liabilities | 77,355 | 92,281 | ||||
Total current liabilities | 277,795 | 274,995 | ||||
Deferred tax liabilities | 82,187 | 73,560 | ||||
Non-current operating lease liabilities | 26,302 | 28,032 | ||||
Other liabilities | 42,329 | 47,062 | ||||
Long-term debt | 176,000 | 134,000 | ||||
Shareholders' equity | 1,021,173 | 1,019,696 | ||||
$ | 1,625,786 | 1,577,345 |
ESCO Technologies INC. AND SUBSIDIARIES | ||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||
(Dollars in thousands) | ||||||
Six Months Ended March 31, 2022 | Six Months Ended March 31, 2021 | |||||
Cash flows from operating activities: | ||||||
Net earnings | $ | 28,107 | 28,222 | |||
Adjustments to reconcile net earnings to net cash | ||||||
provided by operating activities: | ||||||
Depreciation and amortization | 24,292 | 20,115 | ||||
Stock compensation expense | 3,428 | 2,745 | ||||
Changes in assets and liabilities | (41,451 | ) | 9,179 | |||
Gain on sale of building and land | 0 | (1,950 | ) | |||
Effect of deferred taxes | 8,627 | (989 | ) | |||
Net cash provided by operating activities | 23,003 | 57,322 | ||||
Cash flows from investing activities: | ||||||
Acquisition of business, net of cash acquired | (15,592 | ) | (6,684 | ) | ||
Capital expenditures | (20,715 | ) | (13,153 | ) | ||
Additions to capitalized software | (4,727 | ) | (3,973 | ) | ||
Proceeds from sale of building and land | 0 | 1,950 | ||||
Net cash used by investing activities | (41,034 | ) | (21,860 | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from long-term debt | 88,000 | 34,000 | ||||
Principal payments on long-term debt and short-term borrowings | (46,000 | ) | (74,368 | ) | ||
Dividends paid | (4,150 | ) | (4,167 | ) | ||
Purchases of common stock into treasury | (17,878 | ) | 0 | |||
Other | (2,719 | ) | 0 | |||
Net cash provided (used) by financing activities | 17,253 | (44,535 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (1,130 | ) | 2,166 | |||
Net (decrease) increase in cash and cash equivalents | (1,908 | ) | (6,907 | ) | ||
Cash and cash equivalents, beginning of period | 56,232 | 52,560 | ||||
Cash and cash equivalents, end of period | $ | 54,324 | 45,653 |
ESCO Technologies INC. AND SUBSIDIARIES | ||||||||||||||
Other Selected Financial Data (Unaudited) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Backlog And Entered Orders - Q2 2022 | Aerospace & Defense | USG | Test | Total | ||||||||||
Beginning Backlog - 1/1/22 | $ | 387,173 | 94,382 | 157,844 | 639,399 | |||||||||
Entered Orders | 94,550 | 86,485 | 55,443 | 236,478 | ||||||||||
Sales | (84,821 | ) | (64,191 | ) | (55,916 | ) | (204,928 | ) | ||||||
Ending Backlog - 3/31/22 | $ | 396,902 | 116,676 | 157,371 | 670,949 | |||||||||
Backlog And Entered Orders - YTD Q2 2022 | Aerospace & Defense | USG | Test | Total | ||||||||||
Beginning Backlog - 10/1/21 | $ | 367,216 | 91,631 | 133,176 | 592,023 | |||||||||
Entered Orders | 184,751 | 152,721 | 123,392 | 460,864 | ||||||||||
Sales | (155,065 | ) | (127,676 | ) | (99,197 | ) | (381,938 | ) | ||||||
Ending Backlog - 3/31/22 | $ | 396,902 | 116,676 | 157,371 | 670,949 |
ESCO Technologies INC. AND SUBSIDIARIES | |||||
Reconciliation of Non-GAAP Financial Measures (Unaudited) | |||||
EPS – Adjusted Basis Reconciliation – Q2 2022 | |||||
EPS – GAAP Basis – Q2 2022 | $ | 0.64 | |||
Adjustments (defined below) | 0.01 | ||||
EPS – As Adjusted Basis – Q2 2022 | $ | 0.65 | |||
Adjustments exclude $0.01 per share consisting of NEco acquisition inventory | |||||
step-up charges and Corporate related acquisition costs in the second quarter of 2022. | |||||
The $0.01 of EPS adjustments per share consists of $282K of pre-tax charges | |||||
offset by $65K of tax benefit for net impact of $217K. | |||||
EPS – Adjusted Basis Reconciliation – Q2 2021 | |||||
EPS GAAP Basis – Q2 2021 | $ | 0.59 | |||
Adjustments (defined below) | (0.03 | ) | |||
EPS – As Adjusted Basis – Q2 2021 | $ | 0.56 | |||
Adjustments exclude $0.03 per share consisting of income associated with the final | |||||
settlement from the sale of the Doble Watertown facility partially offset by charges | |||||
related to the Doble Manta facility consolidation in the second quarter of 2021. | |||||
The $0.03 of EPS adjustments per share consists of $934K of pre-tax income | |||||
offset by $215K of tax expense for net impact of $719K. | |||||
EPS – Adjusted Basis Reconciliation – YTD Q2 2022 | |||||
EPS – GAAP Basis – YTD Q2 2022 | $ | 1.08 | |||
Adjustments (defined below) | 0.03 | ||||
EPS – As Adjusted Basis – YTD Q2 2022 | $ | 1.11 | |||
Adjustments exclude $0.03 per share consisting of Altanova & NEco acquisition inventory | |||||
step-up charges and Corporate related acquisition costs in the first six months of 2022. | |||||
The $0.03 of EPS adjustments per share consists of $1,107K of pre-tax charges | |||||
offset by $255K of tax benefit for net impact of $852K. | |||||
ИСТОЧНИК ESCO Technologies Inc.Кейт Лоури, вице-президент по связям с инвесторами, (314) 213-7277
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