Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____ Commission file number: 1-10596 ESCO Technologies Inc. (Exact name of registrant as specified in its charter) Missouri 43-1554045 (State or oth ...

Financial Data and Key Metrics Changes - The company reported a 9% growth in adjusted EBITDA and a 13% growth in adjusted EPS for fiscal 2019 compared to fiscal 2018, with adjusted EBITDA reaching $151 million and adjusted EPS at $3.13 per share [11][14][21] - Cash flow from operating activities for the year was $105 million, resulting in a leverage ratio of 1.68 as of September 30 [16] - Q4 cash from operating activities was $68 million, marking the strongest quarterly cash flow in the company's history [17] Business Line Data and Key Metrics Changes - Filtration sales increased by 14% year-over-year, with aerospace businesses contributing a $32 million increase, while the renewable energy business saw a decrease [12][14] - The Test and Doble segments experienced better-than-expected sales growth, while the USG segment showed signs of recovery [43][51] Market Data and Key Metrics Changes - The company expects consolidated top-line growth of 9% to 10% for fiscal 2020, driven by a 14% growth in Filtration and 7% to 8% growth in USG [19] - Entered orders exceeded $900 million for the first time, leading to a backlog increase of $92 million or 24% from the start of the year [17][18] Company Strategy and Development Direction - The divestiture of the Technical Packaging business is seen as a strategic move to streamline operations and focus on core segments, allowing for debt reduction and increased liquidity for future M&A [9][10] - The company aims to leverage its strong market position in medical device and pharmaceutical packaging to pursue additional acquisitions that align with its core businesses [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the backlog growth and the ability to achieve fiscal 2020 targets despite potential timing issues in revenue recognition [35][36] - The company is closely monitoring geopolitical risks, particularly in relation to operations in China, but does not foresee significant impacts on its business [38][39] Other Important Information - The effective tax rate for fiscal 2020 is projected to be 23% to 24%, higher than the previous year, which will negatively impact projected EPS by $0.10 per share [20][21] - The company is focused on maintaining a flat capital expenditure outlook while continuing to invest in automation and efficiency improvements [48][49] Q&A Session Summary Question: Can you provide the adjusted EBITDA number and margins for next year? - The adjusted EBITDA for 2019 is approximately $139 million, with expected growth of 12% to 13% for 2020 [30] Question: What is the timing of your backlog and forecast dip from Q1 to Q2? - The company anticipates a back-half weighted year, similar to fiscal 2018, with 30% to 33% of adjusted EPS expected in the first half [31][33] Question: How much of the backlog is related to the packaging business being divested? - Approximately $11 million of the backlog is associated with the packaging business [36] Question: What is the current status of the M&A pipeline? - The company is actively pursuing several promising opportunities in its M&A pipeline [37] Question: Have there been any changes in global and geopolitical risks? - Management indicated that geopolitical risks have not significantly impacted operations, particularly in relation to China [38] Question: Can you discuss the cash generation of the Technical Packaging business? - The Technical Packaging business has been a cash drain, but its divestiture is expected to improve overall free cash flow generation [46] Question: What are the expectations for acquired revenues for 2020? - The company expects approximately $37 million in revenue from the Globe acquisition for 2020 [51] Question: Where do you see the biggest area of concern or opportunity in forecasting? - The capital budgets in utilities present some risk, but the company is diversified enough to mitigate potential impacts [53]

Financial Data and Key Metrics Changes - The company reported Q3 adjusted EPS of $0.81, exceeding the guidance range of $0.75 to $0.80 and the consensus estimate of $0.77, representing an 11% increase from Q3 2018's adjusted EPS of $0.73 [12] - Q3 adjusted EBITDA increased by 9% to $38 million, while year-to-date adjusted EBITDA rose by 15% to $100 million [13] - Year-to-date sales increased by 7%, led by a 17% increase in the Filtration segment [13] Business Line Data and Key Metrics Changes - The Filtration segment experienced a significant sales increase of 17% [13] - The company successfully lowered SG&A as a percentage of sales despite ongoing cost inflation, contributing to a 32% increase in year-over-year adjusted EPS through June 30 [14] Market Data and Key Metrics Changes - The company reported a $50 million increase in backlog since the start of the year, reflecting strong order growth across all operating segments [6][45] - The submarine business showed robust order growth, particularly with new contracts related to the Virginia Class and Lot 5 [42] Company Strategy and Development Direction - The company is focused on executing its M&A strategy and supporting future growth both organically and through acquisitions, while maintaining a focus on return on invested capital (ROIC) and increasing shareholder value [17] - The integration of the recently acquired Globe is progressing smoothly, and the company is actively seeking additional acquisitions to support organic growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering commitments for the remainder of the year, citing strong year-to-date performance [6] - The company anticipates a strong finish for the year, with no significant areas of softness in order trends [45] Other Important Information - The company is experiencing a timing issue with cash generation related to navy programs, but expects a significant improvement in Q4 [63] - Management indicated that the current market for acquisitions is somewhat frothy, but they are actively pursuing opportunities [54] Q&A Session Summary Question: Were there any push outs in the test segment this quarter? - Management acknowledged a slight push out primarily related to site preparation in China, estimating a revenue impact of about $3 million [23][25] Question: Can you quantify the pushed out revenue? - Management estimated the pushed out revenue to be around $3 million, with an EBIT impact of approximately $400,000 to $500,000 moving to Q4 [25] Question: What are the growth opportunities for the new products? - Management indicated that while it is hard to quantify, they expect significant sales growth from new products next year [27] Question: Can you comment on order trends exiting the quarter? - Management noted that order dollars remain robust, with no softness observed, and anticipate solid dollar growth in orders [40][41] Question: What is the state of your appetite for M&A? - Management confirmed they are actively pursuing M&A opportunities and are seeing good prospects in the market [36] Question: What is the expected accretion from the recent acquisition? - Management indicated that the recent acquisition is expected to provide positive accretion, with meaningful growth prospects [56] Question: How would you grade your cash generation performance this quarter? - Management graded their cash generation performance as a C or C-, citing timing issues but expecting significant improvement in Q4 [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ COMMISSION FILE NUMBER 1-10596 ESCO TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) Missouri 43-1554045 (State or oth ...

ESCO Technologies, Inc. (NYSE:ESE) Q2 2019 Earnings Conference Call May 7, 2019 5:00 PM ET Company Participants Kate Lowrey - Director, Investor Relations Vic Richey - Chairman & Chief Executive Officer Gary Muenster - Vice President & Chief Financial Officer Conference Call Participants Operator Good day and welcome to the ESCO Technologies, Inc. Q2 2019 Earnings Conference Call. Today's call is being recorded. With us today are Vic Richey, Chairman and CEO; Gary Muenster, Vice President and CFO. And now t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2019 OR ¨ TRANSITION EXCHANGE ACT OF 1934 FOR | --- | --- | --- | |----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------- ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2019, including key statements and notes, highlighting the adoption of ASC 606 [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial data, covering ASC 606 implementation, segment performance, debt, income tax changes, and derivative instruments, including ASC 606 impact reconciliation - Revenue recognition policies have been updated under ASC 606, with revenue recognized over time for approximately **52% of Filtration**, **75% of Test**, **20% of USG**, and **100% of Technical Packaging** revenues, based on methods like cost-to-cost or milestones[25](index=25&type=chunk)[35](index=35&type=chunk)[40](index=40&type=chunk) Segment EBIT (Q1 2019 vs Q1 2018) | Segment | EBIT Q1 2019 (in thousands) | EBIT Q1 2018 (in thousands) | | :--- | :--- | :--- | | Filtration | $10,610 | $9,645 | | Test | $3,310 | $2,596 | | USG | $21,546 | $10,651 | | Technical Packaging | $106 | $965 | | **Consolidated EBIT** | **$25,147** | **$14,986** | - The Q1 2018 income tax was a **$25.1 million net benefit** due to the Tax Cuts and Jobs Act (TCJA), which significantly lowered the effective tax rate for that period compared to Q1 2019's **25.5% rate**[68](index=68&type=chunk) - As of December 31, 2018, the company had **$398.3 million** in remaining performance obligations (backlog), with approximately **83%** expected to be recognized as revenue in the next twelve months[86](index=86&type=chunk) Consolidated Statements of Operations Highlights (Q1 2019 vs Q1 2018) | Indicator | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net Sales | $182,597 thousand | $173,495 thousand | | Earnings before income taxes | $23,257 thousand | $12,801 thousand | | Net Earnings | $17,317 thousand | $34,671 thousand | | Diluted EPS | $0.66 | $1.33 | Consolidated Balance Sheet Highlights | Indicator | December 31, 2018 | September 30, 2018 | | :--- | :--- | :--- | | Total Current Assets | $411,919 thousand | $396,023 thousand | | Total Assets | $1,268,211 thousand | $1,265,122 thousand | | Total Liabilities | $491,419 thousand | $505,712 thousand | | Total Shareholders' Equity | $776,792 thousand | $759,410 thousand | Consolidated Statements of Cash Flows Highlights (Q1 2019 vs Q1 2018) | Indicator | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,102 thousand | $17,797 thousand | | Net cash provided (used) by investing activities | $6,256 thousand | $(5,922) thousand | | Net cash (used) by financing activities | $(6,959) thousand | $(17,050) thousand | | Net increase (decrease) in cash | $6,153 thousand | $(3,916) thousand | - The company adopted the new revenue recognition standard ASC 606 on October 1, 2018, using the modified retrospective method, resulting in a **$5.5 million increase** to retained earnings, primarily affecting the Filtration and Technical Packaging segments[20](index=20&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(MD%26A)) Management discusses Q1 2019 financial performance, highlighting 5.2% net sales growth, a net earnings decrease due to prior-year tax benefits, and a fiscal 2019 Adjusted EPS outlook of $2.95 to $3.05 [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section details segment operational performance, noting strong sales growth in Filtration and Test, a USG EBIT surge from a property sale, Technical Packaging decline, and reduced SG&A as a percentage of sales Net Sales Change by Segment (Q1 2019 vs Q1 2018) | Segment | Q1 2019 Sales (in millions) | Q1 2018 Sales (in millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Filtration | $66.2 | $60.0 | +10.3% | | Test | $41.3 | $37.5 | +10.0% | | USG | $55.9 | $55.8 | +0.2% | | Technical Packaging | $19.2 | $20.2 | -4.7% | - The company's backlog increased to **$398.3 million** at December 31, 2018, from **$382.8 million** at September 30, 2018[102](index=102&type=chunk) - SG&A expenses decreased to **$41.0 million (22.4% of sales)** from **$42.2 million (24.3% of sales)** in the prior-year quarter, mainly due to cost reduction actions in the USG segment[103](index=103&type=chunk) - USG segment EBIT increased from **$10.7 million to $21.5 million**, primarily due to the gain on the sale of the Doble Watertown facility[113](index=113&type=chunk) [Capital Resources and Liquidity](index=29&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong financial position with increased working capital, despite decreased operating cash flow due to lower earnings and higher working capital needs, retaining significant liquidity - Working capital increased to **$217.3 million** at Dec 31, 2018, from **$195.5 million** at Sep 30, 2018, with contract assets increasing by **$41.0 million** mainly due to the adoption of ASC 606[122](index=122&type=chunk) - Net cash provided by operating activities was **$8.1 million**, a decrease from **$17.8 million** in Q1 2018, driven by lower earnings (excluding non-cash tax benefits in prior year) and higher working capital requirements[123](index=123&type=chunk) - As of December 31, 2018, the company had **$215 million** in outstanding borrowings, **$209 million** available under its credit facility, and **$36.6 million** in cash[125](index=125&type=chunk) - Q1 2019 net earnings and EPS were **$17.3 million** and **$0.66**, respectively, a decrease from **$34.7 million** and **$1.33** in Q1 2018, primarily due to a **$25.1 million** net tax benefit recorded in Q1 2018 from the Tax Cuts and Jobs Act[95](index=95&type=chunk) - Net sales increased by **$9.1 million (5.2%)** YoY, driven by growth in the Filtration segment (+$6.2 million) and Test segment (+$3.8 million)[96](index=96&type=chunk) - Other income included an **$8 million gain** on the sale of the Doble Watertown, MA building and land, significantly boosting EBIT for the USG segment and the consolidated company[106](index=106&type=chunk) - Management expects 2019 Adjusted EPS to be in the range of **$2.95 to $3.05 per share**, excluding certain gains and restructuring costs[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's market risk exposure from interest rates and foreign currency, managed through derivatives, with no material changes reported since the last fiscal year - The company's primary market risks stem from changes in interest rates and foreign currency exchange rates[135](index=135&type=chunk) - To manage risk, the company uses derivative instruments, entering into interest rate swaps with a notional amount of **$150 million** in 2018 to hedge against variable rate debt interest payments[135](index=135&type=chunk) - There has been no material change to the Company's market risks since September 30, 2018[136](index=136&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 31, 2018, due to a material weakness in deferred revenue internal controls, with remediation efforts ongoing - The CEO and CFO concluded that the company's disclosure controls and procedures were **ineffective** as of December 31, 2018[138](index=138&type=chunk) - The ineffectiveness is due to a **material weakness** in internal control over financial reporting related to the deferred revenue general ledger account, as disclosed in the 2018 Form 10-K[139](index=139&type=chunk) - Remedial actions, including enhanced policies and training, are being implemented but have not been in place long enough to be considered fully remediated[139](index=139&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, SOX certifications, and XBRL-formatted financial data - The report includes certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32)[143](index=143&type=chunk) - Financial information is also provided in **XBRL** (Extensible Business Reporting Language) format (Exhibit 101)[142](index=142&type=chunk)

ESCO Technologies Inc. (NYSE:ESE) Q1 2019 Earnings Conference Call February 7, 2019 5:00 PM ET Company Participants Vic Richey - Chairman and Chief Executive Officer Gary Muenster - Vice President and Chief Financial Officer Kate Lowrey - Director, Investor Relations Conference Call Participants Jon Tanwanteng - CJS Securities Operator Good day and welcome to the ESCO Technologies First Quarter 2019 Earnings Conference Call. Today’s call is being recorded. With us today are Vic Richey, Chairman and CEO; Gar ...