Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

ESCO TECHNOLOGIES INC.

(ESE)
  Report
Delayed Nyse  -  04:00:02 2023-02-06 pm EST
99.74 USD   +0.01%
01/19ESCO Technologies Announces First Quarter 2023 Earnings Release and Conference Call
GL
01/06Esco Technologies Inc : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
AQ
01/06ESCO Technologies Inc. Announces Executive Changes
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

ESCO Technologies : Q4 2022 Earnings Presentation

11/17/2022 | 04:29pm EST

ESCO Technologies

Fourth Quarter FY 2022 Earnings Call

Vic Richey

Chairman, CEO & President

Chris Tucker

Sr. Vice President & CFO

Bryan Sayler

Utility Solutions Group President

November 17, 2022

1

Forward Looking Statement

Statements in this presentation and made during today's conference call regarding the timing and magnitude of recovery in the Company's end markets, the continuing impacts of COVID-19 on the Company's results, sales, Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost reduction efforts, margins, growth, the financial success of the Company, the strength of its end markets, the outlook for the A&D, Test and USG segments, the ability to increase shareholder value, the timing and success of acquisition efforts, internal investments in new products and solutions, the impacts of inflation, 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 presentation, 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, 2021; the availability and acceptance of viable COVID-19 vaccines by enough of the U.S. and world's population to curtail the pandemic; the continuing impact of the COVID-19 pandemic and the effects of known or unknown COVID-19

variants including labor shortages, facility closures, shelter in place policies or quarantines, material shortages, transportation delays, termination or delays of Company contracts, and the inability of our suppliers or customers to perform; the impacts of Executive Order 14042 and other vaccine mandates on our employees and businesses; the impacts of natural disasters on the Company's operations and those of the Company's customers and suppliers; the timing and content of future contract awards or customer orders; the appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company's competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties; the success of the Company's acquisition efforts; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; changes in the costs and availability of certain raw materials; labor disputes; changes in U.S. tax laws and regulations; other changes in laws and regulations including but not limited to changes in accounting standards and foreign taxation; changes in interest rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration of recently acquired businesses.

During this call, the Company may discuss some non-GAAP financial measures in describing the Company's operating results. A reconciliation of these measures to their most comparable GAAP measures can be found in the press release issued today and found on the Company's website at www.escotechnologies.comunder the link: Investor Relations.

In addition, the financial results presented in this presentation include certain non-GAAP financial measures such as EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS. These non-GAAP financial measures are reconciled to their respective GAAP equivalents in the "Reconciliation of Non-GAAP Measures" presented below.

2

Q4 Results ($ in Millions, except per share amounts)

Entered Orders

258.5

244.7

Q4'21

Q4'22

Sales

256.5

205.5

Q4'21

Q4'22

Adjusted EBIT

42.8

28.2

16.7%

13.7%

Q4'21

Q4'22

Adjusted EPS

$1.21

$0.85

Q4'21

Q4'22

Entered Orders

  • Book-to-Billof 0.95 - record quarterly revenue > Q4 orders
  • Continuing strength in commercial aerospace & renewables
  • PY included acquired backlog at Altanova & Phenix

Sales

  • Sales increased 25% - Organic +19% and Acquisitions +6%
  • Organic Growth driven by commercial and defense aerospace, Navy, space, utility spending, renewables, medical/industrial shielding & power filters

Adjusted EBIT

  • Higher margins in A&D and Test, USG down slightly (23.7% vs 24.3%)

Q4'21

Q4'22

Delta $

Delta %

Entered Orders

$258.5

$244.7

($13.8)

-5.3%

Sales

205.5

256.5

51.0

24.8%

Adjusted EBIT

28.2

42.8

14.6

51.6%

Adj EBIT Margin

13.7%

16.7%

+3.0 pts

Adjusted EBITDA

40.0

54.9

14.9

37.1%

Adj EBITDA Margin

19.5%

21.4%

+1.9 pts

EPS GAAP

$0.78

$1.19

$0.41

52.6%

EPS Adjusted

$0.85

$1.21

$0.36

42.4%

3

A&D - Q4 ($ in Millions)

Entered Orders

88.6

97.5

Q4'21

Q4'22

Sales

103.7

80.1

Q4'21

Q4'22

Adjusted EBIT

23.6

22.7%

14.7

18.3%

Q4'21

Q4'22

Entered Orders

Q4'21

Q4'22

Delta $

Delta %

Primarily driven by commercial aerospace recovery

Entered Orders

$88.6

97.5

8.9

10.0%

OEM production ramps & increased MRO

Sales

Sales

80.1

103.7

23.6

29.5%

Aerospace - Commercial +50% & Defense +22%

Adjusted EBIT

14.7

23.6

8.9

60.9%

Navy +28% and Space +20%

Adj EBIT Margin

18.3%

22.7%

+4.4 pts

Partially offset by Industrial - VACCO

Adjusted EBIT

9/30/21

9/30/22

Delta $

Delta %

Driven by leverage on higher volume & price increases, partially offset

Backlog

$367.2

408.3

41.1

11.2%

by wage and material cost inflation

Strong recovery for PTI, Mayday & Westland

4

USG - Q4 ($ in Millions)

Entered Orders

96.0

87.8

Q4'21

Q4'22

Sales

83.5

61.1

Q4'21

Q4'22

Adjusted EBIT

19.8

14.9

23.7%

24.3%

Q4'21

Q4'22

Entered Orders

  • Decrease driven by timing of orders booked in Q4'21 related to acquired backlog - Altanova & Phenix
  • NRG +$7.2 (+76%) - Wind & Solar strength

Sales

  • Altanova & Phenix +$10.6M
  • Doble Organic +$10.2M (+22%) - increased electric utility spending
  • NRG +$1.6M (+16%) - strong demand across renewables product lines

Adjusted EBIT

  • Driven by leverage on higher revenue and price increases, partially offset by wage and material cost inflation, unfavorable mix & higher commissions

Q4'21

Q4'22

Delta $

Delta %

Entered Orders

$96.0

87.8

(8.2)

-8.6%

Sales

61.1

83.5

22.4

36.6%

Adjusted EBIT

14.9

19.8

4.9

33.2%

Adj EBIT Margin

24.3%

23.7%

-0.6 pts

9/30/21

9/30/22

Delta $

Delta %

Backlog

$91.6

128.2

36.6

39.9%

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Esco Technologies Inc. published this content on 17 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2022 21:28:02 UTC.


ę Publicnow 2022
All news about ESCO TECHNOLOGIES INC.
01/19ESCO Technologies Announces First Quarter 2023 Earnings Release and Conference Call
GL
01/06Esco Technologies Inc : Change in Directors or Principal Officers, Financial Statements an..
AQ
01/06ESCO Technologies Inc. Announces Executive Changes
CI
01/06ESCO Technologies Inc. Announces CEO Changes
CI
01/04ESCO Technologies Management Will Present at the CJS Securities New Ideas for the New Y..
AQ
01/04ESCO TECHNOLOGIES INC. : Ex-dividend day for
FA
2022Doble Engineering Appoints Matthew Carrara as President
PR
2022ESCO Technologies Inc. Announces Executive Changes
CI
2022ESCO Technologies Inc. Announces CEO Changes, Effective January 1, 2023
CI
2022Esco Technologies : 2023 Proxy Bookmarked
PU
More news
Analyst Recommendations on ESCO TECHNOLOGIES INC.
More recommendations
Financials (USD)
Sales 2023 919 M - -
Net income 2023 91,6 M - -
Net cash 2023 40,5 M - -
P/E ratio 2023 28,3x
Yield 2023 -
Capitalization 2 582 M 2 582 M -
EV / Sales 2023 2,76x
EV / Sales 2024 2,50x
Nbr of Employees 2 908
Free-Float 82,9%
Chart ESCO TECHNOLOGIES INC.
Duration : Period :
ESCO Technologies Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ESCO TECHNOLOGIES INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 3
Last Close Price 99,74 $
Average target price 106,67 $
Spread / Average Target 6,94%
EPS Revisions
Managers and Directors
Bryan H. Sayler President, Chief Executive Officer & Director
Christopher L. Tucker Chief Financial Officer & Senior Vice President
Victor L. Richey Executive Chairman
James M. Stolze Lead Independent Director
Leon J. Olivier Independent Director
Sector and Competitors
1st jan.Capi. (M$)
ESCO TECHNOLOGIES INC.13.93%2 582
SMC CORPORATION20.58%32 903
COGNEX CORPORATION18.66%9 407
MKS INSTRUMENTS, INC.28.93%6 979
WUHAN GUIDE INFRARED CO., LTD.8.09%5 707
BADGER METER, INC.10.88%3 538