ESE
$64.65
Esco Technologies
($.10)
(.15%)
Earnings Details
4th Quarter September 2017
Tuesday, November 14, 2017 4:15:31 PM
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Summary

ESCO Technologies Guides Below Estimates

Esco Technologies (ESE) reported 4th Quarter September 2017 earnings of $0.79 per share on revenue of $207.0 million. The consensus earnings estimate was $0.75 per share on revenue of $210.9 million. Revenue grew 29.8% on a year-over-year basis.

The company said it expects first quarter GAAP earnings of $0.28 to $0.33 per share and fiscal 2018 earnings of $2.30 to $2.40 per share. The current consensus earnings estimate is $0.48 per share for the quarter ending December 31, 2017 and $2.55 per share for the year ending September 30, 2018.

ESCO Technologies Inc designs and manufactures specialty filtration products including hydraulic filter elements and fluid control devices used in commercial aerospace applications, filter mechanisms used in micro-propulsion devices for satellites.

Results
Reported Earnings
$0.79
Earnings Whisper
-
Consensus Estimate
$0.75
Reported Revenue
$207.0 Mil
Revenue Estimate
$210.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

ESCO Announces Fiscal 2017 Results

- Net earnings of $54 million and Adjusted EBITDA of $123 million -

- GAAP EPS $2.07 and Adjusted EPS $2.22 -

ST. LOUIS, November 14, 2017 - ESCO Technologies Inc. (ESE) (ESCO, or the Company) today reported its operating results for the fourth quarter (Q4 2017) and fiscal year ended September 30, 2017 (2017), compared to the fourth quarter (Q4 2016) and fiscal year ended September 30, 2016 (2016).

The Company previously announced it acquired Mayday Manufacturing Co. and its affiliate, Hi-Tech Metals, Inc. (collectively Mayday) on November 7, 2016, NRG Systems Inc. (NRG) on May 8, 2017, the assets of Morgan Schaffer Inc. (Morgan Schaffer) on May 25, 2017, and the assets of Vanguard Instruments Company (Vanguard) on August 30, 2017. Net sales, earnings, acquisition costs, non-cash purchase accounting inventory step-up charges, and amortization of intangible assets related to these entities are included in the 2017 operating results from the date of acquisition.

The financial results presented include certain non-GAAP financial measures such as EBIT, EBITDA (defined as earnings before interest, taxes, depreciation and amortization), Adjusted EBITDA (defined as EBITDA excluding certain charges, such as non-cash purchase accounting inventory step up charges, and acquisition costs incurred to complete the transactions), and Adjusted EPS. Any non-GAAP financial measures presented are reconciled to their respective GAAP equivalents.

Management believes these non-GAAP financial measures are useful in assessing the ongoing operational profitability of the Company’s business segments, and therefore, allows shareholders better visibility into the Company’s underlying operations. See "Non-GAAP Financial Measures" described below.

Earnings Summary - Full Year

- 2017 GAAP EPS was $2.07 per share and Adjusted EPS was $2.22 per share, which excludes the ($0.15) per share impact ($6.1 million pretax) of non-cash purchase accounting inventory step-up charges and costs incurred to complete the 2017 acquisitions;

- 2016 GAAP EPS was $1.77 per share and Adjusted EPS was $2.03 per share (the adjustments related to the prior year restructuring charges were described in earlier releases);

- 2017 GAAP net earnings were $54 million compared to $46 million in 2016; and,

- Adjusted EBITDA increased 22 percent to $123 million in 2017 from $101 million in 2016.

Earnings Summary - Q4

- Q4 2017 GAAP EPS was $0.74 per share and Adjusted EPS was $0.79 per share, which excludes ($0.05) per share impact ($1.8 million pretax) of non-cash purchase accounting inventory step-up charges and costs incurred to complete the 2017 acquisitions;

- Q4 2016 GAAP EPS was $0.65 per share and Adjusted EPS was $0.67 per share (the adjustments related to prior year Q4 restructuring charges were described in earlier releases);

- Q4 2017 GAAP net earnings were $19 million compared to $17 million in Q4 2016; and,

- Adjusted EBITDA increased 34 percent to $43 million in Q4 2017 from $32 million in Q4 2016.

Adjusted EBITDA is reconciled to GAAP net earnings in the Condensed Business Segment Information table below for all periods presented.

Operating Highlights - 2017

- 2017 sales increased $115 million (20 percent) to $686 million compared to $571 million in 2016;

- On a segment basis, 2017 Filtration sales increased $72 million, or 35 percent compared to 2016 primarily driven by the contribution of Westland and Mayday sales of $61 million. Technical Packaging sales increased $8 million, or 11 percent compared to 2016 driven by Plastique, and Test sales were $161 million in both periods presented. USG sales increased $35 million, or 27 percent, as Doble sales increased $11 million (9 percent) driven by the additional sales contribution from new products and software solutions, and NRG / Morgan Schaffer / Vanguard contributed $24 million in sales since the dates of acquisition;

- SG&A expenses increased $17 million in 2017 compared to 2016 primarily due to additional expenses related to Westland, Mayday, NRG, Morgan Schaffer and Vanguard in the current period, coupled with additional sales and marketing expenses at Doble to support future revenue growth. Acquisition costs are recorded at Corporate;

- Entered orders were $737 million in 2017 (book-to-bill of 1.07x) reflecting a $51 million (16 percent) increase in backlog during the year and an ending backlog of $377 million at September 30, 2017;

- Filtration orders were $286 million (book-to-bill of 1.03x) in 2017 comprised of recurring commercial aerospace orders and additional space and navy products;

- Test orders were a record $199 million in 2017 (book-to-bill of 1.23x) which reflects increasing momentum in the wireless, electric vehicle, and automotive chamber markets;

- USG orders were $164 million in 2017 (book-to-bill of 1.01x) which reflects increased orders for new products such as the Doble Universal Controller (DUC), on-line monitoring solutions, dissolved gas analyzers (DGA’s) and additional software applications;

- Technical Packaging orders were $87 million in 2017 (book-to-bill of 1.05x) driven by higher KAZ, medical, medical device, and pharmaceutical projects; and,

- Net cash provided by operating activities was $67 million in 2017 which resulted in net debt of $229 million (outstanding borrowings less cash on hand) at September 30, 2017 and a 2.2x leverage ratio (gross debt outstanding / Adjusted EBITDA).

Chairman’s Commentary - 2017

Vic Richey, Chairman and Chief Executive Officer, commented, "I’m pleased with the way we wrapped up the year as we delivered EPS and Adjusted EBITDA within our previously expected ranges, and we successfully completed several acquisitions, which remains one of our key strategic goals. I’ve mentioned this before, but it is worth repeating: Not only did we add great companies to our portfolio, we also added very solid management teams who share our vision and our values.

"Regarding the recent acquisitions, I’m pleased to see the integration is going smoothly and is nearly complete, which supports my enthusiasm for USG’s outlook as the group has come together with a unified focus on sales growth, market expansion, new product development, and enhanced operating margins.

"Whenever you add new companies to an existing portfolio, it is never without risk. But I’m thrilled with the way our entire company, legacy entities and new partners, came together and collectively delivered $123 million of Adjusted EBITDA in 2017. This reflects a 22 percent increase over prior year and represents the best year in ESCO’s history.

"Touching on a few Q4 operating highlights, Filtration delivered a 22 percent EBIT margin driven by outstanding performance at Crissair and VACCO. Test reported a 16 percent EBIT margin in Q4 and during the past six months of 2017, delivered $89 million in sales at a 15 percent EBIT margin. Doble continued to outperform in Q4 by delivering an EBIT margin above 28 percent as its new products, software and solution offerings continue to gain traction in the utility market.

"Wrapping up the year, a clear highlight for the Company is the strength of our order activity as all four operating segments achieved book-to-bill ratios greater 1.0x, led by Test’s nearly $200 million in new business.

"As we enter 2018, we plan to build on the successes we achieved in 2017 and benefit from having aggressively addressed the challenges we faced during the past year, which gives me a favorable view of the future with our goal remaining unchanged - to increase long-term shareholder value."

Dividend Payment

The next quarterly cash dividend of $0.08 per share will be paid on January 19, 2018 to stockholders of record on January 4, 2018.

Board of Directors

Effective November 8, 2017, the Company added an additional independent director, Patrick M. (Pat) Dewar to the Company’s Board of Directors.

Mr. Dewar currently serves as Chief Executive of The Trenton Group LLC. Previously, Mr. Dewar spent 34 years in the Aerospace Sector with GE Aerospace and Lockheed Martin, where he created and led Lockheed Martin International as an Executive Vice President managing over $10 billion in annual revenue. He holds a Master of Science degree in Electrical Engineering from Drexel University as well as a Bachelor of Science degree in Engineering from Swarthmore College. Mr. Dewar is a member of the Council of Foreign Relations and serves as a senior advisor to numerous investment firms on Aerospace & Defense matters.

Mr. Dewar was selected to serve the Company as his extensive strategic and operational experience in the aerospace and defense markets will allow him to assist the board in guiding strategy from the highest level.

Adding a new director further enhances Corporate Governance, facilitates board refreshment, and adds new and relevant experience supplementing existing independent director oversight. The Board of Directors performed extensive diligence in its search, including utilizing a globally recognized executive search firm.

Business Outlook - 2018

With the increased level of M&A activity, Management has placed more emphasis on Adjusted EBITDA as a supplement to EPS as it believes this is a relevant metric to be considered for measuring ongoing operating performance as well as the Company’s enterprise valuation. Adjusted EBITDA is also a key financial metric used by Management when determining the appropriate price for acquisitions.

Management continues to see meaningful sales and Adjusted EBITDA growth across each of the Company’s business segments and anticipates growth rates in 2018 and beyond that exceed the Company’s defined peer group and the broader industrial market.

The details of Management’s growth expectations for 2018 compared to 2017 are as follows:

- Sales are expected to increase approximately 13 percent driven by: incremental sales from acquisitions being included for a full year; increased commercial aerospace deliveries at PTI, Crissair and Mayday; higher organic sales at USG; significantly higher sales at Test including the catch-up of 2017 deliveries as well as significant new product wins currently in backlog; partially offset by a reduction in lower margin industrial/automotive market product deliveries at PTI as it exits that market; and flat sales in Technical Packaging;

- Adjusted EBITDA is expected to increase between 15 and 17 percent, resulting in Adjusted EBITDA in the range of $141 million to $143 million, compared to 2017 Adjusted EBITDA of $123 million;

- Interest expense on higher debt (acquisition funding) is expected to be approximately $9.5 million, reflecting an increase of $4.9 million (or $0.12 per share) over the $4.6 million of interest expense in 2017;

- Non-cash depreciation and amortization of intangibles is expected to increase approximately $7.1 million (or $0.18 per share after-tax) as a result of the recent acquisitions. Purchase accounting intangible asset amortization charges are recorded at Corporate;

- Income tax expense is expected to increase in 2018 as Management is projecting a 35 percent effective tax rate calculated on higher pretax earnings. Management’s expected rate excludes any impact resulting from potential tax reform. When compared to the 33 percent tax rate in 2017, the 2 percent higher rate on the additional pretax earnings negatively impacts 2018 EPS ($0.07 per share); and,

- In summary, Management projects 2018 GAAP EPS to be in the range of $2.30 to $2.40 per share, including the profit contributions from the recent acquisitions, the additional depreciation and amortization charges, higher interest, and incremental tax expense as described above.

On a quarterly basis, Management expects 2018 operating results to reflect a profile similar to 2017 and previous years, with revenues and EPS being more second-half weighted. As with past years, projected second half 2018 sales and EPS are expected to be significantly stronger than the first half.

Management expects Q1 2018 GAAP EPS to be in the range of $0.28 to $0.33 per share. The timing of quarterly sales and earnings throughout the year, coupled with higher non-cash charges within the respective quarters impacts comparability in Q1.

Chairman’s Commentary - 2018

Mr. Richey continued, "Given the expected contribution from our recent acquisitions, coupled with current expectations of organic growth from "legacy" operations, I believe 2018 reflects solid sales, EBIT, EBITDA and EPS growth and positions us well to meet or exceed our shareholder value-creation goals.

"We ended 2017 in a favorable position given our strong backlog and balance sheet, and as we enter the new year, I am very comfortable with our outlook. Our core businesses remain solid and the acquisitions are nearly fully integrated and are contributing at a meaningful level. We enter 2018 with numerous growth opportunities throughout our operating segments as described above.

"I’m especially excited by our growth outlook in Test, where we’ve worked diligently for the past few years on right-sizing the cost structure and enhancing operating efficiency to allow it to be more competitive and significantly more profitable. Test’s current backlog firmly supports our outlook, and I’m happy to report that we were recently notified of two new large chamber wins totaling $30 million from globally recognized customers in the government / defense and automotive markets.

"Additionally, at Westland, we were recently awarded a large, multi-year contract to supply next-generation technology protecting naval vessels in support of our long-term outlook for this growing platform.

"Our market leadership positions and the breadth and diversity of our new product offerings will allow us to continue to grow at levels above our peer averages. Our management teams’ focus on profitable growth and ROIC will remain steadfast as we believe these are the key drivers of continued and sustainable share price appreciation."

Conference Call

The Company will host a conference call today, November 14, at 4:00 p.m. Central Time, to discuss the Company’s 2017 results. A live audio webcast will be available on the Company’s website at www.escotechnologies.com. Please access the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available for seven days on the Company’s website noted above or by phone (dial 1-855-859-2056 and enter the pass code 96067789).

Forward-Looking Statements

Statements in this press release regarding the Company’s expected quarterly, 2018 full year and beyond results, revenue and sales growth, EPS, EPS growth, EBIT, EBITDA, Adjusted EBITDA, gross profit, interest expense, non-cash depreciation and amortization of intangibles, corporate costs, effective tax rates, the Company’s ability to increase operating margins, realize financial goals and increase shareholder value, the success of acquisition efforts, the size, number and timing of future sales and growth opportunities, the long-term success of the Company, and any other statements which are not strictly historical are "forward-looking" statements within the meaning of the safe harbor provisions of the federal securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including, but not limited to those described in Item 1A, "Risk Factors", of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016, and the following: the success of the Company’s competitors; weakening of economic conditions in served markets; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties; delivery delays or defaults by customers; material changes in the costs and availability of certain raw materials; the appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts; the timing and content of future contract awards or customer orders; performance issues with key customers, suppliers and subcontractors; labor disputes; the impacts of natural disasters on the Company’s operations and those of the Company’s customers and suppliers; changes in laws and regulations, including but not limited to changes in accounting standards and taxation requirements; changes in interest rates; costs relating to environmental matters arising from current or former facilities; financial exposure in connection with Company guarantees of certain Aclara contracts; the availability of select acquisitions; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the success and integration of recently acquired businesses.

Non-GAAP Financial Measures

The financial measures EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are presented in this press release. The Company defines "EBIT" as earnings before interest and taxes, "EBITDA" as earnings before interest, taxes, depreciation and amortization, "Adjusted EBITDA" as EBITDA excluding certain defined non-recurring charges, and "Adjusted EPS" as GAAP earnings per share (EPS) excluding the non-recurring charges described above which were $0.05 per share for Q4 2017 and $0.02 per share for Q4 2016.

EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes that EBIT, EBITDA and Adjusted EBDITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The Company believes that the presentation of EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

ESCO, headquartered in St. Louis: Manufactures highly-engineered filtration and fluid control products for the aviation, space and process markets worldwide; is the industry leader in RF shielding and EMC test products; provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries; and, produces custom thermoformed packaging, pulp-based packaging, and specialty products for medical and commercial markets. Further information regarding ESCO and its subsidiaries is available on the Company’s website at www.escotechnologies.com.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months
Three Months
Ended
Ended
September 30,
September 30,
2017
2016
Net Sales
$
207,005
159,505
Cost and Expenses:
Cost of sales
129,769
96,038
Selling, general and administrative expenses
41,329
34,304
Amortization of intangible assets
4,790
3,090
Interest expense
1,826
391
Other (income) expenses, net
(496)
1,365
Total costs and expenses
177,218
135,188
Earnings before income taxes
29,787
24,317
Income taxes
10,613
7,402
Net earnings
$
19,174
16,915
Diluted EPS - GAAP
$
0.74
0.65
Diluted EPS - As Adjusted
$
0.79
(1)
0.67
(2)
Diluted average common shares O/S:
26,057
25,935
(1)
Q4 2017 As Adjusted EPS excluded $1.8 million, pretax (or $0.05 per share) of purchase accounting inventory step up charges and acquisition costs during the fourth quarter of 2017.
(2)
Q4 2016 As Adjusted EPS excluded $0.8 million, pretax (or $0.02 per share) of restructuring charges incurred at ETS and Doble during the fourth quarter of 2016.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Year Ended
Year Ended
September 30,
September 30,
2017
2016
Net Sales
$
685,740
571,459
Cost and Expenses:
Cost of sales
436,918
350,807
Selling, general and administrative expenses
148,433
131,493
Amortization of intangible assets
16,338
11,630
Interest expense
4,578
1,308
Other (income) expenses, net
(680)
7,801
Total costs and expenses
605,587
503,039
Earnings before income taxes
80,153
68,420
Income taxes
26,450
22,538
Net earnings
$
53,703
45,882
Diluted EPS - GAAP
$
2.07
1.77
Diluted EPS - As Adjusted
$
2.22
(1)
2.03
(2)
Diluted average common shares O/S:
25,995
25,968
(1)
2017 As Adjusted EPS excluded $6.1 million, pretax (or $0.15 per share) of purchase accounting inventory step up charges and acquisition costs during fiscal 2017.
(2)
2016 As Adjusted EPS excluded $7.8 million, pretax (or $0.26 per share) of restructuring charges incurred at ETS and Doble during fiscal 2016.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)
GAAP
Q4 2017
Q4 2016
Net
Sales
Filtration
$
80,640
61,994
Test
51,115
41,903
USG
52,183
34,129
Technical Packaging
23,067
21,479
Totals
$
207,005
159,505
EBIT
Filtration
$
17,905
15,716
Test
8,404
5,276
USG
11,010
9,502
Technical Packaging
2,836
2,590
Corporate
(8,542)
(8,376)
Consolidated EBIT
31,613
24,708
Less: Interest expense
(1,826)
(391)
Less: Income tax expense
(10,613)
(7,402)
Net earnings
$
19,174
16,915
Note 1: Adjusted net earnings were $20.4 million in Q4 17 which excluded $1.8 million, pretax (or $0.05 per share) net impact from the acquisitions of NRG, Morgan Schaffer & Vanguard during the fourth quarter of 2017.
Note 2: Adjusted net earnings were $17.5 million in Q4 16 which excluded $0.8 million, pretax (or $0.02 per share) of net restructuring charges at ETS and Doble during the fourth quarter of 2016.
EBITDA Reconciliation to Net earnings:
Q4 2017
Q4 2017
Q4 2016
Q4 2016
- As Adj
- As Adj
Consolidated EBITDA
$
40,819
42,636
31,067
31,905
Less: Depr & Amort
(9,206)
(9,206)
(6,359)
(6,359)
Consolidated EBIT
31,613
33,430
24,708
25,546
Less: Interest expense
(1,826)
(1,826)
(391)
(391)
Less: Income tax expense
(10,613)
(11,249)
(7,402)
(7,617)
Net earnings
$
19,174
20,355
16,915
17,538

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)
GAAP
FY 2017
FY 2016
Net
Sales
Filtration
$
279,510
207,752
Test
160,853
161,512
USG
162,469
127,785
Technical Packaging
82,908
74,410
Totals
$
685,740
571,459
EBIT
Filtration
$
52,201
45,227
Test
19,481
13,863
USG
36,596
31,083
Technical Packaging
8,495
9,625
Corporate
(32,042)
(30,070)
Consolidated EBIT
84,731
69,728
Less: Interest expense
(4,578)
(1,308)
Less: Income tax expense
(26,450)
(22,538)
Net earnings
$
53,703
45,882
Note 1: Adjusted net earnings were $57.7 million in FY 17 which excluded $6.1 million, pretax (or $0.15 per share) net impact from the acquisitions of Mayday, NRG, Morgan Schaffer & Vanguard during fiscal 2017.
Note 2: Adjusted net earnings were $52.8 million in FY 16 which excluded $7.8 million, pretax (or $0.26 per share) of restructuring charges at ETS and Doble during fiscal 2016.
EBITDA Reconciliation to Net earnings:
FY 2017
FY 2017
FY 2016
FY 2016
- As Adjusted
- As Adjusted
Consolidated EBITDA
$
116,960
123,044
93,296
101,097
Less: Depr & Amort
(32,229)
(32,229)
(23,568)
(23,568)
Consolidated EBIT
84,731
90,815
69,728
77,529
Less: Interest expense
(4,578)
(4,578)
(1,308)
(1,308)
Less: Income tax expense
(26,450)
(28,579)
(22,538)
(23,387)
Net earnings
$
53,703
57,658
45,882
52,834

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
September 30,
September 30,
2017
2016
Assets
Cash and cash equivalents
$
45,516
53,825
Accounts receivable, net
160,580
121,486
Costs and estimated earnings on
long-term contracts
47,286
28,746
Inventories
124,515
105,542
Other current assets
14,895
13,884
Total current assets
392,792
323,483
Property, plant and equipment, net
132,748
92,405
Intangible assets, net
351,134
231,759
Goodwill
377,879
323,616
Other assets
5,891
7,108
$
1,260,444
978,371
Liabilities and Shareholders’ Equity
Short-term borrowings and current
$
20,000
20,000
maturities of long-term debt
Accounts payable
54,789
42,074
Current portion of deferred revenue
28,583
27,212
Other current liabilities
91,597
68,790
Total current liabilities
194,969
158,076
Deferred tax liabilities
86,378
69,562
Other liabilities
52,179
45,624
Long-term debt
255,000
90,000
Shareholders’ equity
671,918
615,109
$
1,260,444
978,371

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
Year Ended
September 30,
2017
Cash flows from operating activities:
Net earnings
$
53,703
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization
32,229
Stock compensation expense
5,444
Changes in assets and liabilities
(19,539)
Change in deferred revenue and costs, net
1,650
Effect of deferred taxes
1,360
Pension contributions
(2,677)
Other
(4,830)
Net cash provided by operating activities
67,340
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired
(198,628)
Capital expenditures
(29,728)
Additions to capitalized software
(9,002)
Proceeds from sale of land
1,184
Proceeds from life insurance
2,307
Net cash used by investing activities
(233,867)
Cash flows from financing activities:
Proceeds from long-term debt
257,000
Principal payments on long-term debt
(92,000)
Dividends paid
(8,257)
Other
20
Net cash provided by financing activities
156,763
Effect of exchange rate changes on cash and cash equivalents
1,455
Net decrease in cash and cash equivalents
(8,309)
Cash and cash equivalents, beginning of period
53,825
Cash and cash equivalents, end of period
$
45,516

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data (Unaudited)
(Dollars in thousands)
Backlog And Entered Orders - Q4 FY 2017
Filtration
Test
USG
Technical Packaging
Total
Beginning Backlog - 7/1/17
$
204,054
105,568
42,369
27,506
379,497
Entered Orders
79,706
60,339
45,395
19,175
204,615
Sales
(80,640)
(51,115)
(52,183)
(23,067)
(207,005)
Ending Backlog - 9/30/17
$
203,120
114,792
35,581
23,614
377,107
Backlog And Entered Orders - FY 2017
Filtration
Test
USG
Technical Packaging
Total
Beginning Backlog - 10/1/16
$
195,801
77,032
33,744
19,654
326,231
Entered Orders
286,829
198,613
164,306
86,868
736,616
Sales
(279,510)
(160,853)
(162,469)
(82,908)
(685,740)
Ending Backlog - 9/30/17
$
203,120
114,792
35,581
23,614
377,107

SOURCE ESCO Technologies Inc.

Kate Lowrey, Director of Investor Relations, (314) 213-7277

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: ESCO Technologies Inc via Globenewswire