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)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.113d-4 (c))
|
1.
|
The voting for directors was as follows:
|
Nominee
|
Votes “For”
|
Votes “Withheld”
|
Broker Non-Votes
|
Percent of Represented Shares Voted “For”
|
Leon J. Olivier
|
21,848,132
|
502,490
|
1,208,143
|
92.7%
|
Victor L. Richey
|
21,438,633
|
911,989
|
1,208,143
|
91.0%
|
James M. Stolze
|
21,702,153
|
648,469
|
1,208,143
|
92.1%
|
Votes “For”
|
Votes “Against”
|
Abstentions
|
Broker Non-Votes
|
Percent of Represented Shares Voted “For”
|
23,198,061
|
349,407
|
11,298
|
0
|
98.5%
|
Votes “For”
|
Votes “Against”
|
Abstentions
|
Broker Non-Votes
|
Percent of Represented Shares Voted “For”
|
21,584,010
|
746,060
|
20,552
|
1,208,143
|
91.6%
|
Votes “For”
|
Votes “Against”
|
Abstentions
|
Broker Non-Votes
|
Percent of Represented Shares Voted “For”
|
8,465,764
|
11,003,573
|
2,881,286
|
1,208,143
|
35.9%
|
Exhibit No.
|
Description of Exhibit
|
99.1
|
Press Release dated February 9, 2016
|
|
Gary E. Muenster
|
|
Executive Vice President
|
|
and Chief Financial Officer
|
·
|
Q1 2016 sales increased $12 million, or 10 percent, to $133 million compared to $121 million in Q1 2015;
|
·
|
Q1 2016 Filtration sales increased $8 million, or 17 percent, Test sales increased $3 million, or 9 percent, and Utility Solutions Group (USG, or Doble) sales increased $1 million, compared to Q1 2015;
|
·
|
Gross margin percentages were approximately 40 percent in both Q1 periods presented;
|
·
|
SG&A decreased in Q1 2016, primarily driven by the lower cost structure at Test, lower operating costs throughout Filtration, partially offset by additional international sales and marketing expenses at Doble to support its near-term growth opportunities, and higher Corporate spending on professional fees related to M&A activities;
|
·
|
The effective tax rate was 31.9 percent in Q1 2016 compared to 26.2 percent in 2015. The tax rates in both periods were favorably impacted by the respective years’ December extension of the research tax credit;
|
·
|
Orders were $143 million (book-to-bill of 1.07x) reflecting a $10 million, or 3 percent, increase in backlog during Q1 2016, which resulted in an ending backlog of $337 million at December 31, 2015;
|
·
|
Filtration orders were $73 million (book-to-bill of 1.31x) and included significant commercial aerospace orders (A-350 and other new platforms) at PTI, and significantly higher medical/pharma orders at TEQ;
|
·
|
Doble’s orders were $31 million (book-to-bill of 0.91x) which reflected higher sales recognized on previous period orders received on long-term international service contracts, and the quarterly timing of domestic product, software and solution bookings;
|
·
|
Test orders were $39 million (book-to-bill of 0.91x) which reflected higher sales recognized on the large automotive chamber in Asia awarded in 2015, and the timing of orders expected in the year; and,
|
·
|
Net debt at December 31, 2015 was $30 million ($40 million of cash and $70 million of borrowings) and includes the purchase of Fremont Plastics in October 2015.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
|
|||||||||
Condensed Consolidated Statements of Operations (Unaudited)
|
|||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||
|
|||||||||
Three Months
Ended
December 31,
2015
|
Three Months
Ended
December 31,
2014
|
||||||||
Net Sales
|
$ | 132,833 | 120,547 | ||||||
Cost and Expenses:
|
|||||||||
Cost of sales | 80,049 | 71,621 | |||||||
Selling, general and administrative expenses | 33,291 | 33,504 | |||||||
Amortization of intangible assets | 2,694 | 1,873 | |||||||
Interest expense | 229 | 195 | |||||||
Other expenses (income), net | 3,602 | (221 | ) | ||||||
Total costs and expenses | 119,865 | 106,972 | |||||||
Earnings before income taxes
|
12,968 | 13,575 | |||||||
Income taxes
|
4,139 | 3,552 | |||||||
Net earnings | $ | 8,829 | 10,023 | ||||||
Diluted EPS - GAAP | $ | 0.34 | 0.38 | ||||||
Diluted EPS - As Adjusted | $ | 0.47 | (1) |
|
0.38 | ||||
Diluted average common shares O/S: | 26,044 | 26,386 | |||||||
(1)
|
As Adjusted excludes $4.1 million (or $0.13 per share) of previously announced adjustments for restructuring charges incurred at ETS & Doble during the first quarter of fiscal 2016.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
|
||||||||||||||||||||
Condensed Business Segment Information (Unaudited)
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
|
||||||||||||||||||||
GAAP
|
Q1 2016
Adjustments
(1)
|
As Adjusted
|
||||||||||||||||||
Q1 2016 | Q1 2015 | Q1 2016 | Q1 2015 | |||||||||||||||||
Net Sales
|
||||||||||||||||||||
Filtration
|
$ | 55,538 | 47,511 | 55,538 | 47,511 | |||||||||||||||
Test
|
42,773 | 39,421 | 42,773 | 39,421 | ||||||||||||||||
Utility Solutions Group
|
34,522 | 33,615 | 34,522 | 33,615 | ||||||||||||||||
Totals
|
$ | 132,833 | 120,547 | 0 | 132,833 | 120,547 | ||||||||||||||
EBIT
|
||||||||||||||||||||
Filtration
|
$ | 10,097 | 7,076 | 10,097 | 7,076 | |||||||||||||||
Test
|
2,338 | 2,594 | 2,512 | 4,850 | 2,594 | |||||||||||||||
Utility Solutions Group
|
8,249 | 9,977 | 1,323 | 9,572 | 9,977 | |||||||||||||||
Corporate
|
(7,487 | ) | (5,877 | ) | 293 | (7,194 | ) | (5,877 | ) | |||||||||||
Consolidated EBIT
|
13,197 | 13,770 | 4,128 | 17,325 | 13,770 | |||||||||||||||
Less: Interest expense
|
(229 | ) | (195 | ) | (229 | ) | (195 | ) | ||||||||||||
Less: Income tax expense
|
(4,139 | ) | (3,552 | ) | (661 | ) | (4,800 | ) | (3,552 | ) | ||||||||||
Net earnings
|
$ | 8,829 | 10,023 | 3,467 | 12,296 | 10,023 | ||||||||||||||
Note:
|
Depreciation and amortization expense was $5.4 million and $4.3 million for the quarters ended December 31, 2015 and 2014, respectively.
|
|||||||||||
|
||||||||||||
(1)
|
Adjustments consist of $4.1 million (or $0.13 per share) of restructuring charges at ETS & Doble during the first quarter of 2016.
|
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
|
||||||||
Condensed Consolidated Balance Sheets (Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
|
||||||||
December 31,
2015
|
September 30,
2015
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 39,825 | 39,411 | |||||
Accounts receivable, net
|
101,192 | 102,607 | ||||||
Costs and estimated earnings on
|
||||||||
long-term contracts
|
30,851 | 28,387 | ||||||
Inventories
|
104,260 | 99,786 | ||||||
Current portion of deferred tax assets
|
15,626 | 15,558 | ||||||
Other current assets
|
9,074 | 12,502 | ||||||
Total current assets
|
300,828 | 298,251 | ||||||
Property, plant and equipment, net
|
80,941 | 77,358 | ||||||
Intangible assets, net
|
193,274 | 190,748 | ||||||
Goodwill
|
295,561 | 291,157 | ||||||
Other assets
|
7,781 | 6,694 | ||||||
$ | 878,385 | 864,208 | ||||||
Liabilities and Shareholders' Equity
|
||||||||
Short-term borrowings and current
|
$ | 20,000 | 20,000 | |||||
maturities of long-term debt
|
||||||||
Accounts payable
|
29,575 | 37,863 | ||||||
Current portion of deferred revenue
|
22,260 | 21,498 | ||||||
Other current liabilities
|
56,903 | 63,850 | ||||||
Total current liabilities
|
128,738 | 143,211 | ||||||
Deferred tax liabilities
|
75,796 | 74,469 | ||||||
Other liabilities
|
32,714 | 32,346 | ||||||
Long-term debt
|
50,000 | 30,000 | ||||||
Shareholders' equity
|
591,137 | 584,182 | ||||||
$ | 878,385 | 864,208 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
|
||||
Consolidated Statements of Cash Flows (Unaudited)
|
||||
(Dollars in thousands)
|
||||
|
||||
Three Months
Ended
December 31, 2015
|
||||
Cash flows from operating activities:
|
||||
Net earnings
|
$ | 8,829 | ||
Adjustments to reconcile net earnings
|
||||
to net cash provided by operating activities:
|
||||
Depreciation and amortization
|
5,360 | |||
Stock compensation expense
|
1,329 | |||
Changes in assets and liabilities
|
(15,645 | ) | ||
Effect of deferred taxes
|
1,259 | |||
Other
|
208 | |||
Net cash provided by operating activities
|
1,340 | |||
Cash flows from investing activities:
|
||||
Acquisition of business, net of cash acquired
|
(12,408 | ) | ||
Capital expenditures
|
(2,749 | ) | ||
Additions to capitalized software
|
(1,713 | ) | ||
Net cash used by investing activities
|
(16,870 | ) | ||
Cash flows from financing activities:
|
||||
Proceeds from long-term debt
|
33,000 | |||
Principal payments on long-term debt
|
(13,000 | ) | ||
Dividends paid
|
(2,065 | ) | ||
Debt issuance costs
|
(950 | ) | ||
Net cash provided by financing activities
|
16,985 | |||
Effect of exchange rate changes on cash and cash equivalents
|
(1,041 | ) | ||
Net increase in cash and cash equivalents
|
414 | |||
Cash and cash equivalents, beginning of period
|
39,411 | |||
Cash and cash equivalents, end of period
|
$ | 39,825 |
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
|
||||||||||||||||
Other Selected Financial Data (Unaudited)
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
|
||||||||||||||||
Backlog And Entered Orders - Q1 FY 2016
|
USG
|
Test
|
Filtration
|
Total
|
||||||||||||
Beginning Backlog - 10/1/15
|
$ | 36,272 | 95,129 | 196,109 | 327,510 | |||||||||||
Entered Orders
|
31,227 | 38,941 | 72,555 | 142,723 | ||||||||||||
Sales
|
(34,522 | ) | (42,773 | ) | (55,538 | ) | (132,833 | ) | ||||||||
Ending Backlog - 12/31/15
|
$ | 32,977 | 91,297 | 213,126 | 337,400 |
D!\@'Z @,"# (4
M AT")@(O C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+! LL"U0+@ NL"
M]0, PL#%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H#QP/3 ^ #[ /Y
M! 8$$P0@!"T$.P1(!%4$8P1Q!'X$C 2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C :=
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M:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@;""8(,0@\"$<
M(4@A=2&A( &YXS'DJ>8EYYWI&>J5[!'MC>\)\
M(7R!?.%]07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*"](-7@[J$'82
MA..%1X6KA@Z& G]L.^OIIO^&@_B-#YTC/Y<>H;43)
MSA1C@#H!7ZJ>(;#6/VI?^#1[QA\5/VAM;U#XA^+[NZN/$'AK6-;<37NCN-3B
MTZV6!\917:-\@?>6=LYS0!^%W[,O[3GCC]CWXUZ'\0OAWX@O?#?BKP_.)K:Z
MMVX(X+>UUGQQJ3ZC<6\
M#%H;;("K$A;G:BJJC/. *\QHH _<+_@R6^"L=[^T+\;?B=>0JEOX8\.6N@PW
M$GW8VNYS/)@]B%LER>P;WK]AY/\ @NW^Q[%(RM^T-\-0RG!']I=#^5?F)_P1
M+N8OV'_^#7W]H3XP7&VSU+Q?_;L^G7.=K.PMH],LUS[7?F8_WC7\^- 'Z4?\
M'2W[=W@W]NK_ (*+Z;??#OQ-IOBSP;X0\)V>D6FHZ?+YEK<3M+-*ZCP7_P '>?[&?PWT"'2?#O@GXF:#I=OQ%9Z=X6L+
M6WC_ -U([H*/P% 'T99?\%<_C9\1F#> ?V%_C[JEN_\ JY?$]]IGA;>.QQ<2
ML1^-:P_;D_;/N@&A_85M85/:Z^->CJX_!+=Q^M>+_!O_ (.V_P!F3XZ?%OPS
MX+T/0?BT=9\6:K;:19?:-%M(X5FGE6)"[?:CM0%@6;' !-3?MH_\'9G[+_[*
MGBZ\\.^'9O$7Q
OC3X'\%I
M\0%\?7GBGPX-;NI/[*_L\V3^?)"55?-DW(S1L5)(/RD$5O?\&SGP*7X[?\%F
M_A%%- 9[+PG/=>)[CC(C-G;R20L?I<\<5]X_\ !Q;_ ,$=?VMO^"B'_!3#
M6O&GP_\ A;<>(O NEZ'IVAZ+?GQ!I=J)HXXS-+B.:Y210+B>,HSC/0@T ?
MC[^P9^VUXO\ ^">G[3.C?%+P/(BZ]HMO=V\<4K'R+@3V\D.V51]]%9U?:>"8
MUZ=1YQ\2_B7X@^,GQ UCQ5XJU:^U[Q'X@NY+[4=0O)3)/=S.=S.S'N2?H.@X
MKUC]MW_@FU\:/^"/VK@?^#;'X#K\?O^"S'P=M)XO-L?#-Y<>)KG(R$^Q6\DT1/_;<0C\:^%:_
M:3_@S4\ :;X7^,O[0'QJUMDATOX9^#$M9)W'$"7$CW,KY]H]/;\&H ^.?^#C
M7X[+^T!_P66^-FHP3&:QT'5(O#=L-VY4%A;Q6T@'L9HYF_X%7N'_ :1_LX7
MWQK_ ."BWBGQ!9LUO+X%\":I/:7706][>(+*$Y[';-,?^ &OS3^+GQ$N_B]\
M5_$WBR_+&^\3ZM=:M<$G,GF>5N?JYK^AS_ (,E_P!G1O"_[,OQ@^*5Q"5D
M\8:_:Z!:.P_Y8V,+2N5]FDO,'WB]J /PO_9/_:N^)G_!,+]L6S\:^%[BYT7Q
MEX*U*6RU/3[@LL5ZJ2%+FQN4S\T;%2K \@@,,,H(_LK_ &!OVV?"/_!0S]E+
MPG\5O!