Missouri
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1-10596
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43-1554045
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(State or Other
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(Commission
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(I.R.S. Employer
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Jurisdiction of Incorporation)
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File Number)
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Identification No.)
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9900A Clayton Road, St. Louis, Missouri
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63124-1186
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(Address of Principal Executive Offices)
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(Zip Code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.113d-4 (c))
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Exhibit No.
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Description of Exhibit
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99.1
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Press Release dated May 9, 2012
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For more information contact:
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For media inquiries:
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Kate Lowrey
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David P. Garino
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Director, Investor Relations
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(314) 982-0551
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ESCO Technologies Inc.
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||
(314) 213-7277
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·
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Entered orders were $185 million, resulting in a book-to-bill of 1.07x, and a firm order backlog of $405 million at March 31, 2012. Backlog increased $11 million in the second quarter ($62 million year-to-date);
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·
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Segment book-to-bill ratios were: Utility Solutions Group (USG) 1.31x, Filtration 1.08x, and Test 0.69x (timing of large chamber orders throughout the year);
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·
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USG orders were $98 million, comprised of: $46 million of additional COOPs, $11 million of PLS IOUs, $6 million of PLS International, $6 million of RF Water, $6 million of Software, and $24 million at Doble;
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·
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Filtration net sales were $49 million, an increase of $9 million, or 23 percent over Q2 2011 net sales of $40 million;
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·
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Test net sales were $50 million, an increase of $8 million, or 20 percent over Q2 2011 net sales of $42 million;
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·
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USG net sales were $74 million, a decrease of $11 million, or 12 percent, compared to Q2 2011 net sales of $85 million;
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·
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Within USG, Aclara’s net sales decreased $10 million compared to Q2 2011 due to lower volumes at PG&E gas, New York City water, and CFE in Mexico, partially offset by an increase of $8 million, or 35 percent, in COOP sales;
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·
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Also within USG, Doble Q2 sales were relatively consistent at $25 million in both years;
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·
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Consolidated net sales were $174 million, an increase of $7 million, or 4 percent, compared to $167 million in Q2 2011 (segment specifics detailed above);
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·
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SG&A increased $4 million in Q2 2012 compared to Q2 2011 due to the Test business acquisition (EMV-Germany) included in Q2 2012; increased new product development (NPD) costs in Filtration for additional Space product applications and additional content on Airbus platforms; start-up costs incurred for the SoCalGas AMI project, additional NPD costs related to new Smart Grid applications and advanced networking capabilities at Aclara; and additional sales, marketing and engineering costs related to new products and new global market expansion initiatives at Doble;
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·
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The Q2 2012 effective tax rate was higher than previously expected due to a non-recurring, non-cash charge resulting from the write-down of a purchase accounting deferred tax asset. This charge increased the effective tax rate, which impacted EPS negatively by $0.03 per share; and
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·
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Q2 2012 EPS was $0.38 per share ($0.41 per share when adjusted for the non-recurring tax charge), compared to $0.49 in Q2 2011.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
|
||||||||
Three Months
Ended
March 31, 2012
|
Three Months
Ended
March 31, 2011
|
|||||||
Net Sales
|
$ | 173,863 | 166,748 | |||||
Cost and Expenses:
|
||||||||
Cost of sales
|
105,967 | 98,594 | ||||||
Selling, general and administrative expenses
|
47,944 | 43,409 | ||||||
Amortization of intangible assets
|
3,254 | 3,035 | ||||||
Interest expense
|
470 | 538 | ||||||
Other (income) expenses, net
|
(376 | ) | 125 | |||||
Total costs and expenses
|
157,259 | 145,701 | ||||||
Earnings before income taxes
|
16,604 | 21,047 | ||||||
Income taxes
|
6,402 | 7,820 | ||||||
Net earnings
|
$ | 10,202 | 13,227 | |||||
Earnings per share:
|
||||||||
Basic
|
||||||||
Net earnings
|
$ | 0.38 | 0.50 | |||||
Diluted
|
||||||||
Net earnings
|
$ | 0.38 | 0.49 | |||||
Average common shares O/S:
|
||||||||
Basic
|
26,706 | 26,583 | ||||||
Diluted
|
26,985 | 26,883 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
|
||||||||
Six Months
Ended
March 31, 2012
|
Six Months
Ended
March 31, 2011
|
|||||||
Net Sales
|
$ | 326,788 | 326,684 | |||||
Cost and Expenses:
|
||||||||
Cost of sales
|
198,688 | 196,077 | ||||||
Selling, general and administrative expenses
|
96,634 | 87,054 | ||||||
Amortization of intangible assets
|
6,407 | 5,888 | ||||||
Interest expense
|
961 | 1,312 | ||||||
Other (income) expenses, net
|
(848 | ) | (493 | ) | ||||
Total costs and expenses
|
301,842 | 289,838 | ||||||
Earnings before income taxes
|
24,946 | 36,846 | ||||||
Income taxes
|
9,537 | 12,806 | ||||||
Net earnings
|
$ | 15,409 | 24,040 | |||||
Earnings per share:
|
||||||||
Basic
|
||||||||
Net earnings
|
$ | 0.58 | 0.91 | |||||
Diluted
|
||||||||
Net earnings
|
$ | 0.57 | 0.90 | |||||
Average common shares O/S:
|
||||||||
Basic
|
26,689 | 26,562 | ||||||
Diluted
|
26,940 | 26,847 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information
(Unaudited)
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||||||||||
Utility Solutions Group
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$ | 74,475 | 84,992 | 144,824 | 177,182 | |||||||||||||||||||||||||||
Test
|
50,483 | 42,103 | 89,837 | 74,106 | ||||||||||||||||||||||||||||
Filtration
|
48,905 | 39,653 | 92,127 | 75,396 | ||||||||||||||||||||||||||||
Totals
|
$ | 173,863 | 166,748 | 326,788 | 326,684 | |||||||||||||||||||||||||||
EBIT
|
||||||||||||||||||||||||||||||||
Utility Solutions Group
|
$ | 9,101 | 15,814 | 14,067 | 31,169 | |||||||||||||||||||||||||||
Test
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4,775 | 5,214 | 6,722 | 7,123 | ||||||||||||||||||||||||||||
Filtration
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9,468 | 6,534 | 17,704 | 12,009 | ||||||||||||||||||||||||||||
Corporate
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(6,270 | ) (1) | (5,977 | ) (2) | (12,586 | ) (3) | (12,143 | ) (3) | ||||||||||||||||||||||||
Consolidated EBIT
|
17,074 | 21,585 | 25,907 | 38,158 | ||||||||||||||||||||||||||||
Less: Interest expense
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(470 | ) | (538 | ) | (961 | ) | (1,312 | ) | ||||||||||||||||||||||||
Earnings before income taxes
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$ | 16,604 | 21,047 | 24,946 | 36,846 | |||||||||||||||||||||||||||
Note:Depreciation and amortization expense was $6.3 million and $5.8 million for the quarters ended March 31, 2012 and 2011, respectively, and $12.3 million and $11.3 million for the six-month periods ended March 31, 2012 and 2011, respectively.
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(1) Includes $1.1 million of amortization of acquired intangible assets.
(2) Includes $1.2 million of amortization of acquired intangible assets.
(3) Includes $2.3 million of amortization of acquired intangible assets.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
|
||||||||
March 31,
2012
|
September 30, 2011
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 27,071 | 34,158 | |||||
Accounts receivable, net
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136,425 | 144,083 | ||||||
Costs and estimated earnings on long-term
contracts
|
9,636 | 12,974 | ||||||
Inventories
|
111,532 | 96,986 | ||||||
Current portion of deferred tax assets
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20,562 | 20,630 | ||||||
Other current assets
|
22,463 | 19,523 | ||||||
Total current assets
|
327,689 | 328,354 | ||||||
Property, plant and equipment, net
|
73,269 | 73,067 | ||||||
Intangible assets, net
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231,872 | 231,848 | ||||||
Goodwill
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361,786 | 361,864 | ||||||
Other assets
|
17,746 | 16,704 | ||||||
$ | 1,012,362 | 1,011,837 | ||||||
Liabilities and Shareholders’ Equity
|
||||||||
Short-term borrowings and current maturities
of long-term debt
|
$ | 126,365 | 50,000 | |||||
Accounts payable
|
51,662 | 54,037 | ||||||
Current portion of deferred revenue
|
23,211 | 24,499 | ||||||
Other current liabilities
|
69,096 | 77,301 | ||||||
Total current liabilities
|
270,334 | 205,837 | ||||||
Deferred tax liabilities
|
85,385 | 85,313 | ||||||
Other liabilities
|
44,152 | 44,977 | ||||||
Long-term debt
|
- | 75,000 | ||||||
Shareholders’ equity
|
612,491 | 600,710 | ||||||
$ | 1,012,362 | 1,011,837 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
|
||||
Six Months Ended
March 31, 2012
|
||||
Cash flows from operating activities:
|
||||
Net earnings
|
$ | 15,409 | ||
Adjustments to reconcile net earnings to net cash
provided by operating activities:
|
||||
Depreciation and amortization
|
12,327 | |||
Stock compensation expense
|
2,261 | |||
Changes in current assets and liabilities
|
(16,343 | ) | ||
Effect of deferred taxes
|
140 | |||
Change in deferred revenue and costs, net
|
(1,580 | ) | ||
Pension contributions
|
(1,340 | ) | ||
Other
|
(9 | ) | ||
Net cash provided by operating activities
|
10,865 | |||
Cash flows from investing activities:
|
||||
Acquisition of business/minority interest
|
(1,345 | ) | ||
Capital expenditures
|
(6,152 | ) | ||
Additions to capitalized software
|
(6,751 | ) | ||
Net cash used by investing activities
|
(14,248 | ) | ||
Cash flows from financing activities:
|
||||
Proceeds from long-term debt
|
39,365 | |||
Principal payments on long-term debt
|
(38,000 | ) | ||
Dividends paid
|
(4,268 | ) | ||
Other
|
(258 | ) | ||
Net cash used by financing activities
|
(3,161 | ) | ||
Effect of exchange rate changes on cash and cash equivalents
|
(543 | ) | ||
Net decrease in cash and cash equivalents
|
(7,087 | ) | ||
Cash and cash equivalents, beginning of period
|
34,158 | |||
Cash and cash equivalents, end of period
|
$ | 27,071 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data
(Unaudited)
(Dollars in thousands)
|
||||||||||||||||
Backlog And Entered Orders – Q2 FY 2012
|
Utility Solutions
|
Test
|
Filtration
|
Total
|
||||||||||||
Beginning Backlog – 1/1/12
|
$ | 164,700 | 93,117 | 136,075 | 393,892 | |||||||||||
Entered Orders
|
97,722 | 34,794 | 52,752 | 185,268 | ||||||||||||
Sales
|
(74,475 | ) | (50,483 | ) | (48,905 | ) | (173,863 | ) | ||||||||
Ending Backlog – 3/31/12
|
$ | 187,947 | 77,428 | 139,922 | 405,297 | |||||||||||
Backlog And Entered Orders – YTD Q2 FY 2012
|
Utility Solutions
|
Test
|
Filtration
|
Total
|
||||||||||||
Beginning Backlog – 10/1/11
|
$ | 125,352 | 86,856 | 130,865 | 343,073 | |||||||||||
Entered Orders
|
207,419 | 80,409 | 101,184 | 389,012 | ||||||||||||
Sales
|
(144,824 | ) | (89,837 | ) | (92,127 | ) | (326,788 | ) | ||||||||
Ending Backlog – 3/31/12
|
$ | 187,947 | 77,428 | 139,922 | 405,297 |
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