August 24, 2017 1:25 AM ET

Machinery

Company Overview of ESCO Technologies Inc.

Company Overview

ESCO Technologies Inc., through its subsidiaries, produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial applications worldwide. The company’s Filtration segment supplies filtration and fluid control products, including filter elements, manifolds, assemblies, modules, indicators, custom and standard valves, filters, regulators, actuators, and other related components; and elastomeric-based signature reduction solutions. Its RF Shielding and Test segment designs and manufactures RF test facilities, acoustic test enclosures, RF and magnetically shielded rooms, secure communication facilities, RF measurement systems, and broadcast and recording ...

9900A Clayton Road

St. Louis, MO 63124

United States

Founded in 1990

2,419 Employees

Phone:

314-213-7200

Key Executives for ESCO Technologies Inc.

Chairman, Chief Executive Officer and President
Age: 60
Total Annual Compensation: $824.5K
Chief Financial Officer, Executive Vice President and Director
Age: 57
Total Annual Compensation: $550.0K
Senior Vice President, General Counsel and Secretary
Age: 58
Total Annual Compensation: $326.0K
Compensation as of Fiscal Year 2016.

ESCO Technologies Inc. Key Developments

ESCO Technologies Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended June 30, 2017; Provides Earnings Guidance for the Full Year of 2017; Announces Quarterly Cash Dividend, Payable on October 17, 2017

ESCO Technologies Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended June 30, 2017. For the quarter, the company’s GAAP EPS was $0.49 per share and Adjusted EPS was $0.51 per share, which excludes the loss of $0.02 per share net impact from the acquisitions of NRG and Morgan Schaffer. The loss of $0.02 per share net impact of the NRG and Morgan Schaffer acquisitions reflects the partial period EBIT contribution of $1.2 million, offset by loss of $1.3 million of costs and fees incurred to complete the acquisitions, and loss of $0.7 million of non-cash purchase accounting inventory step-up charges in third quarter of 2017. In third quarter of 2016 GAAP EPS was $0.44 per share, and Adjusted EPS was $0.49 per share. GAAP net earnings were $12.6 million compared to $11.5 million in third quarter of 2016 and Adjusted EBITDA increased 9.5% to $27.7 million from $25.3 million in third quarter of 2016. Sales increased $31 million 22% to $171 million compared to $140 million in third quarter of 2016. Earnings before income taxes were $17,422,000 compared to $17,520,000 a year ago. Net earnings were $12,645,000 compared to $11,528,000 a year ago. For the nine months, the company's sales increased $67 million 16% to $479 million compared to $412 million for the same period in 2016. Net cash provided by operating activities was $33 million, which resulted in net debt (outstanding borrowings less cash on hand) of $216 million at June 30, 2017. Earnings before income taxes were $50,366,000 compared to $44,103,000 a year ago. Net earnings were $34,529,000 compared to $28,967,000 a year ago. Diluted EPS- GAAP were $1.33 compared to $1.12 a year ago. Adjusted EPS were $1.41 compared to $1.36 a year ago. Adjusted EPS was $1.41 which excluded $2.0 million or $0.08 per share net impact from the acquisitions of Mayday, NRG and Morgan Schaffer during the first nine months of 2017. Adjusted EPS was $1.36 which excluded $6.3 million or $0.24 per share of restructuring charges incurred at ETS and Doble during the first nine months of 2016. Capital expenditures were $23,055,000. Additions to capitalized software were $6,213,000. The company announced a quarterly cash dividend of $0.08 per share will be paid on October 17, 2017 to stockholders of record on October 3, 2017. 2017 sales compared to 2016 are expected to increase approximately $120 million, or 21% (previous guidance was 18% to 20%). The increase is driven by the additional sales from acquisitions, increased space and navy business at VACCO, and higher sales of Doble's new products (DUC, etc.), software and services. Gross profit dollars and margins in 2017 are negatively impacted by $4 million or $0.10 per share after-tax of non-cash purchase accounting inventory step-up charges at Mayday, NRG and Morgan Schaffer. EBIT dollars are expected to increase by more than 21% over 2016. 2017 Adjusted EBITDA is expected to increase approximately 21% over 2016, consistent with the original guidance, resulting in Adjusted EBITDA of approximately $122 million compared to 2016 Adjusted EBITDA of $101 million. Management expects a 33% effective tax rate in 2017, consistent with the 33% effective tax rate in 2016. Management projects 2017 GAAP EPS to be in the range of $2.05 to $2.10 per share.

ESCO Technologies Mulls Acquisitions

Vic Richey, Chairman and Chief Executive Officer of ESCO Technologies Inc. (NYSE:ESE) said,""On the acquisition front, we've been very active recently and are currently evaluating additional opportunities. We remain optimistic that we can further supplement our organic growth in both the near term and longer term, but we remain disciplined in our approach and will continue to maintain our focus on generating an attractive ROIC"

ESCO Technologies Inc. to Report Q3, 2017 Results on Aug 08, 2017

ESCO Technologies Inc. announced that they will report Q3, 2017 results at 4:00 PM, Central Standard Time on Aug 08, 2017

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Recent Private Companies Transactions

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May 25, 2017
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