Missouri
|
1-10596
|
43-1554045
|
(State or Other
|
(Commission
|
(I.R.S. Employer
|
Jurisdiction of Incorporation)
|
File Number)
|
Identification No.)
|
9900A Clayton Road, St. Louis, Missouri
|
63124-1186
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
|
(d) Exhibits
|
Exhibit No. Description of Exhibit
|
99.1 Press Release dated August 2, 2011
|
ESCO TECHNOLOGIES INC.
|
|
Dated: August 2, 2011
|
By: /s/ G.E. Muenster
|
G.E. Muenster
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
EXHIBIT INDEX
|
Exhibit No. Description of Exhibit
|
99.1 Press Release dated August 2, 2011
|
For more information contact:
|
For media inquiries:
|
|
Kate Lowrey
|
David P. Garino
|
|
Director, Investor Relations
|
(314) 982-0551
|
|
ESCO Technologies Inc.
|
||
(314) 213-7277
|
·
|
Net sales were $176 million, an increase of $18 million, or 12 percent, over Q3 2010 net sales of $158 million;
|
·
|
Filtration net sales increased $12 million, or 39 percent over Q3 2010, with Crissair contributing $7 million of the increase;
|
·
|
Test net sales increased $11 million, or 33 percent over Q3 2010;
|
·
|
Utility Solutions Group (USG) net sales were $87 million, a decrease of $5 million, or five percent compared to Q3 2010 net sales of $92 million. Aclara sales decreased $8 million (lower sales at PG&E gas and New York City water), partially offset by $3 million of increased sales at Doble;
|
·
|
EPS was $0.49 per share, compared to Q3 2010 EPS of $0.55 per share;
|
·
|
Net cash provided by operating activities was $12 million;
|
·
|
Entered orders were $177 million resulting in a book-to-bill ratio of 1.0x and firm order backlog of $387 million at June 30, 2011; and
|
·
|
Entered orders included $15 million of initial AMI software and services for Southern California Gas Co. (SoCalGas).
|
·
|
Net sales were $503 million, an increase of $103 million, or 26 percent, over 2010 YTD net sales of $400 million;
|
·
|
Filtration net sales increased $38 million, or 46 percent, with Crissair contributing $20 million of the increase;
|
·
|
Test net sales increased $27 million, or 29 percent;
|
·
|
USG net sales increased $39 million, or 17 percent. Aclara sales increased $27 million, and Doble sales increased $12 million in 2011;
|
·
|
EPS was $1.38 per share compared to $0.79 per share;
|
·
|
Net cash provided by operating activities was $48 million versus $16 million in 2010; and
|
·
|
Entered orders were $530 million compared to $507 million.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
|
||||||||
Three Months
Ended
June 30, 2011
|
Three Months
Ended
June 30, 2010
|
|||||||
Net Sales
|
$ | 176,326 | 157,582 | |||||
Cost and Expenses:
|
||||||||
Cost of sales
|
105,522 | 91,994 | ||||||
Selling, general and administrative expenses
|
47,520 | 38,144 | ||||||
Amortization of intangible assets
|
3,055 | 2,891 | ||||||
Interest expense
|
534 | 791 | ||||||
Other (income) expenses, net
|
(522 | ) | 551 | |||||
Total costs and expenses
|
156,109 | 134,371 | ||||||
Earnings before income taxes
|
20,217 | 23,211 | ||||||
Income taxes
|
7,139 | 8,664 | ||||||
Net earnings
|
$ | 13,078 | 14,547 | |||||
Earnings per share:
|
||||||||
Basic
|
||||||||
Net earnings
|
$ | 0.49 | 0.55 | |||||
Diluted
|
||||||||
Net earnings
|
$ | 0.49 | 0.55 | |||||
Average common shares O/S:
|
||||||||
Basic
|
26,605 | 26,448 | ||||||
Diluted
|
26,899 | 26,679 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
|
||||||||
Nine Months
Ended
June 30, 2011
|
Nine Months
Ended
June 30, 2010
|
|||||||
Net Sales
|
$ | 503,010 | 399,568 | |||||
Cost and Expenses:
|
||||||||
Cost of sales
|
301,599 | 238,829 | ||||||
Selling, general and administrative expenses
|
134,574 | 114,161 | ||||||
Amortization of intangible assets
|
8,943 | 8,662 | ||||||
Interest expense
|
1,846 | 3,028 | ||||||
Other (income) expenses, net
|
(1,015 | ) | 1,862 | |||||
Total costs and expenses
|
445,947 | 366,542 | ||||||
Earnings before income taxes
|
57,063 | 33,026 | ||||||
Income taxes
|
19,945 | 12,076 | ||||||
Net earnings
|
$ | 37,118 | 20,950 | |||||
Earnings per share:
|
||||||||
Basic
|
||||||||
Net earnings
|
$ | 1.40 | 0.79 | |||||
Diluted
|
||||||||
Net earnings
|
$ | 1.38 | 0.79 | |||||
Average common shares O/S:
|
||||||||
Basic
|
26,576 | 26,437 | ||||||
Diluted
|
26,864 | 26,697 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information
(Unaudited)
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Three Months Ended
June 30,
|
Nine Months Ended
June 30,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||||||||||
Utility Solutions Group
|
$ | 86,837 | 91,718 | 264,018 | 224,950 | |||||||||||||||||||||||||||
Test
|
45,848 | 34,575 | 119,955 | 93,143 | ||||||||||||||||||||||||||||
Filtration
|
43,641 | 31,289 | 119,037 | 81,475 | ||||||||||||||||||||||||||||
Totals
|
$ | 176,326 | 157,582 | 503,010 | 399,568 | |||||||||||||||||||||||||||
EBIT
|
||||||||||||||||||||||||||||||||
Utility Solutions Group
|
$ | 12,428 | 20,424 | 43,597 | 35,615 | |||||||||||||||||||||||||||
Test
|
4,616 | 3,397 | 11,739 | 6,193 | ||||||||||||||||||||||||||||
Filtration
|
9,595 | 6,072 | 21,604 | 11,419 | ||||||||||||||||||||||||||||
Corporate
|
(5,888 | ) | (1) | (5,891 | ) | (1) | (18,031 | ) | (2) | (17,173 | ) | (2) | ||||||||||||||||||||
Consolidated EBIT
|
20,751 | 24,002 | 58,909 | 36,054 | ||||||||||||||||||||||||||||
Less: Interest expense
|
(534 | ) | (791 | ) | (1,846 | ) | (3,028 | ) | ||||||||||||||||||||||||
Earnings before income taxes
|
$ | 20,217 | 23,211 | 57,063 | 33,026 | |||||||||||||||||||||||||||
Note:Depreciation and amortization expense was $6.1 million and $5.4 million for the quarters ended June 30, 2011 and 2010, respectively, and $17.4 million and $16.6 million for the nine-month periods ended June 30, 2011 and 2010, respectively.
|
(1) Includes $1.2 million of amortization of acquired intangible assets.
(2) Includes $3.5 million of amortization of acquired intangible assets.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
|
||||||||
June 30,
2011
|
September 30, 2010
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 31,798 | 26,508 | |||||
Accounts receivable, net
|
144,966 | 141,098 | ||||||
Costs and estimated earnings on long-term
contracts
|
9,693 | 12,743 | ||||||
Inventories
|
102,240 | 83,034 | ||||||
Current portion of deferred tax assets
|
18,632 | 15,809 | ||||||
Other current assets
|
11,923 | 17,169 | ||||||
Total current assets
|
319,252 | 296,361 | ||||||
Property, plant and equipment, net
|
73,664 | 72,563 | ||||||
Goodwill
|
362,694 | 355,656 | ||||||
Intangible assets, net
|
231,524 | 229,736 | ||||||
Other assets
|
19,042 | 19,975 | ||||||
$ | 1,006,176 | 974,291 | ||||||
Liabilities and Shareholders’ Equity
|
||||||||
Short-term borrowings and current maturities
of long-term debt
|
$ | 50,370 | 50,000 | |||||
Accounts payable
|
47,402 | 59,088 | ||||||
Current portion of deferred revenue
|
24,902 | 21,907 | ||||||
Other current liabilities
|
77,360 | 55,985 | ||||||
Total current liabilities
|
200,034 | 186,980 | ||||||
Deferred tax liabilities
|
79,588 | 79,388 | ||||||
Other liabilities
|
44,453 | 47,941 | ||||||
Long-term debt
|
89,000 | 104,000 | ||||||
Shareholders’ equity
|
593,101 | 555,982 | ||||||
$ | 1,006,176 | 974,291 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
|
||||
Nine Months Ended
June 30, 2011
|
||||
Cash flows from operating activities:
|
||||
Net earnings
|
$ | 37,118 | ||
Adjustments to reconcile net earnings to net cash
provided by operating activities:
|
||||
Depreciation and amortization
|
17,387 | |||
Stock compensation expense
|
3,742 | |||
Changes in current assets and liabilities
|
(4,760 | ) | ||
Effect of deferred taxes
|
(2,677 | ) | ||
Change in deferred revenue and costs, net
|
3,104 | |||
Pension contributions
|
(4,620 | ) | ||
Other
|
(1,690 | ) | ||
Net cash provided by operating activities
|
47,604 | |||
Cash flows from investing activities:
|
||||
Acquisition of businesses
|
(4,982 | ) | ||
Additions to capitalized software
|
(10,369 | ) | ||
Capital expenditures
|
(9,292 | ) | ||
Net cash used by investing activities
|
(24,643 | ) | ||
Cash flows from financing activities:
|
||||
Proceeds from long-term debt
|
33,370 | |||
Principal payments on long-term debt
|
(48,000 | ) | ||
Dividends paid
|
(6,367 | ) | ||
Proceeds from exercise of stock options
|
690 | |||
Other
|
357 | |||
Net cash used by financing activities
|
(19,950 | ) | ||
Effect of exchange rate changes on cash and cash equivalents
|
2,279 | |||
Net increase in cash and cash equivalents
|
5,290 | |||
Cash and cash equivalents, beginning of period
|
26,508 | |||
Cash and cash equivalents, end of period
|
$ | 31,798 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data
(Unaudited)
(Dollars in thousands)
|
||||||||||||||||
Backlog And Entered Orders – Q3 FY 2011
|
Utility Solutions
|
Test
|
Filtration
|
Total
|
||||||||||||
Beginning Backlog – 3/31/11
|
$ | 159,812 | 90,377 | 136,649 | 386,838 | |||||||||||
Entered Orders
|
72,662 | 63,945 | 40,021 | 176,628 | ||||||||||||
Sales
|
(86,837 | ) | (45,848 | ) | (43,641 | ) | (176,326 | ) | ||||||||
Ending Backlog – 6/30/11
|
$ | 145,637 | 108,474 | 133,029 | 387,140 | |||||||||||
Backlog And Entered Orders – YTD Q3 FY 2011
|
Utility Solutions
|
Test
|
Filtration
|
Total
|
||||||||||||
Beginning Backlog – 10/1/10
|
$ | 153,478 | 74,333 | 132,835 | 360,646 | |||||||||||
Entered Orders
|
256,177 | 154,096 | 119,231 | 529,504 | ||||||||||||
Sales
|
(264,018 | ) | (119,955 | ) | (119,037 | ) | (503,010 | ) | ||||||||
Ending Backlog – 6/30/11
|
$ | 145,637 | 108,474 | 133,029 | 387,140 |