EX-99.4 5 c23936exv99w4.htm UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS exv99w4
 

Exhibit 99.4
Unaudited Pro Forma Consolidated Statement of Operations for the year ended September 30, 2007
                                         
    ESCO     Less: Filters     Add: Doble     Pro Forma     ESCO  
(In thousands, except per share data)   Historical     Business (1)     Historical (2)     Adjs     Pro Forma  
 
                                        
Net Sales
   $ 527,537       (82,833 )     79,502               524,206  
Cost and Expenses:
                                        
Cost of sales
     349,891       (67,295 )     28,601               311,197  
SG&A
     122,502       (10,892 )     28,332       (915 )  (3)     139,027  
Amortization of intangible assets
     10,705       (462 )     0       3,459    (4)     13,702  
Interest expense (income)
     (744 )     145       (528 )     12,100    (5)     10,973  
Other expenses, (income) net
     2,455       360       (1,271 )             1,544  
 
                              
Total costs and expenses
     484,809       (78,144 )     55,134       14,644       476,443  
 
                              
 
                                        
Earnings before income taxes
     42,728       (4,689 )     24,368       (14,644 )     47,763  
Income taxes
     9,015       (1,382 )     8,099       (5,442 )  (6)     10,290  
 
                              
Net earnings
   $ 33,713       (3,307 )     16,269       (9,202 )     37,473  
 
                              
 
                                        
Earnings per share:
                                        
Basic
   $ 1.30                             $ 1.45  
 
                                    
Diluted
   $ 1.28                             $ 1.42  
 
                                    
 
                                        
Average common shares outstanding:
                                        
Basic
     25,865                               25,865  
 
                                    
Diluted
     26,387                               26,387  
 
                                    

 

Footnotes to Exhibit 99.4: Unaudited Pro Forma Consolidated Statement of Operations for the year ended September 30, 2007 (Dollars in thousands)
  (1)   Excludes the Filtertek business which was sold on November 25, 2007 and reflected as a discontinued operation effective in the three months ended December 31, 2007.
 
  (2)   Includes the results of operations of Doble for its fourth fiscal quarter ended December 31, 2006 and its first three fiscal quarters of fiscal year 2007.
 
  (3)   To adjust Doble’s historical selling, general and administrative expenses to exclude $915 of non-recurring transaction related expenses.
 
  (4)   To record amortization expense of $3,459 for the estimated identifiable intangible assets from the acquisition of Doble by the Registrant. The preliminary estimated identifiable intangible assets and their related estimated useful lives are as follows:
                 
            Estimated  
            Useful Life  
(Dollars in thousands)   Fair Value     (in years)  
 
                
Identifiable intangible assets:
                
Trade names
   $ 75,720     indefinite
Customer relationships
     54,210     20
Software and databases
     3,740     5
 
              
Total identifiable intangible assets
   $ 133,670          
 
              
  (5)   To record interest expense of $11,500 related to borrowings under the Registrant’s revolving credit facility to finance the acquisition at a weighted average interest rate of 4.6%. The Registrant has an interest rate swap on $175 million of the outstanding debt at 4% plus a spread of 75-100 bps. The remaining outstanding debt is at 3.30% plus a spread of 75-100 bps. Also, includes $600 of amortization of the debt issuance costs in connection with the Registrant’s new credit facility.
 
  (6)   To record the tax impact of $5,442 of the pro forma adjustments at an effective tax rate of 37.2%.