ESCO Technologies Inc., together with its subsidiaries, produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial markets worldwide. The company operates in three segments: Filtration, Test, and Utility Solutions. The Filtration segment supplies filtration and fluid control products, including filter elements, manifolds, assemblies, modules, indicators, filters, regulators, custom and standard valves, actuators, and other components for hydraulic, fuel, and air filtration systems; and produces engineered thermoformed products and packaging materials for medical, retail, food, and electronic applications. The Test segment provides products to mea...
9900A Clayton Road
St. Louis, MO 63124
Founded in 1990
ESCO Technologies Inc. Announces Executive Appointments
May 8 14
ESCO Technologies Inc. announced that it has added two additional independent directors, Leon J. (Lee) Olivier and Robert J. (Bob) Phillippy, to the company's Board of Directors effective May 5, 2014. Mr. Olivier currently serves as Chief Operating Officer and Executive Vice President of Northeast Utilities. Mr. Olivier was selected to serve the Company as his electric utility transmission and distribution operational experiences will allow him to assist the board in guiding strategy from the highest level. Mr. Phillippy currently serves as Chief Executive Officer, President and Director of Newport Corporation. Mr. Phillippy was selected to serve the Company as, along with his current CEO experience leading a public company, he brings extensive experience in mergers and acquisitions, as well as new product innovation and international business development. The new directors were added to further enhance Corporate Governance and to facilitate board refreshment and director succession, as well as seeking new and relevant experience to supplement existing director oversight.
ESCO Technologies Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended March 31, 2014; Provides Earnings Guidance for the Third Quarter of 2014; Reaffirms Earnings Guidance for 2014; Amends Bylaws
May 7 14
ESCO Technologies Inc. reported unaudited consolidated earnings results for the second quarter and six months ended March 31, 2014. The company reported net loss of $33,677,000 in its fiscal second quarter, compared with net earnings of $1,559,000 in the second quarter of fiscal 2013, the result of operating the Aclara unit prior to its divestiture March 28. Net sales reached $124,762,000, up nearly 6% from $118,039,000 for the same quarter in fiscal 2013. Earnings before income taxes were $13,214,000 against $10,537,000 for the same period in the last year. Net earnings from continuing operations were $9,264,000 or $0.35 per diluted share against $5,523,000 or $0.21 per diluted share for the same period in the last year. Loss per diluted share was $1.26 against earnings per diluted share of $0.06 for the same period in the last year. Adjusted earnings before income taxes from continuing operations were $13,520,000 against $11,960,000 for the same period in the last year. Consolidated EBIT was $13,868,000 against $11,173,000 for the same period in the last year. Adjusted consolidated EBIT was $14,174,000 against $12,596,000 for the same period in the last year. EPS from continuing operations as adjusted was $0.36 for the second quarter of the fiscal 2014. At March 31, 2014, the company had $36 million of cash and $40 million of debt outstanding for a net debt position of $4 million.
For the six months, the company reported net sales of $249,212,000 against $228,557,000 for the same period in the last year. Earnings before income taxes were $26,954,000 against $18,557,000 for the same period in the last year. Net earnings from continuing operations were $18,096,000 or $0.68 per diluted share against $10,866,000 or $0.41 per diluted share for the same period in the last year. Loss per diluted share was $0.84 against earnings per diluted share of $0.07 for the same period in the last year. Net loss was $22,488,000 against net earnings of $1,805,000 for the same period in the last year. Consolidated EBIT was $28,300,000 against $19,776,000 for the same period in the last year. Adjusted consolidated EBIT was $28,807,000 against $22,640,000 for the same period in the last year. Adjusted earnings before income taxes from continuing operations were $27,461,000 against $21,421,000 for the same period in the last year. Net cash provided by operating activities was $15,089,000 for the six months of fiscal 2014. Capital expenditures were $5,799,000 for the six months of fiscal 2014. EPS from continuing operations as adjusted was $0.70 for the six months of the fiscal 2014.
Management's expectations for 2014 are consistent with the guidance presented in the February 6, 2014 release. Management continues to see strong growth in 2014 across the business. Based on projected revenue growth of approximately 8% to 10%, and growth in EBIT of 10% to 13%, Management expects 2014 EPS from continuing operations as adjusted in the range of $1.50 to $1.60, which excludes filtration segment charges. The 2014 annual effective tax rate is expected to be approximately 35%. The company expects EPS from continuing operations to range from $1.45 to $1.55.
Third quarter 2014 EPS from continuing operations as adjusted is expected to be in the range of $0.36 to $0.41.
Effective May 5, 2014, upon the unanimous recommendation of its Nominating and Corporate Governance Committee and by the unanimous written consent of its Board of Directors pursuant to Section 3.1 of its Bylaws, the company’s Bylaws were amended in the following respects: Section 3.1(a) was amended to eliminate reference to a provision of the Missouri corporation laws no longer in effect which formerly required the company to report any change in the number of directors to the Secretary of State; and Section 3.8 was amended to add a provision that a person first elected to the Board of Directors effective on or after May 5, 2014 shall not be eligible for election as a director if such person's 75th birthday shall fall on a date prior to the commencement of the term for which such person is to be elected or appointed.