Revenue Segments - The Aerospace & Defense (A&D) segment accounted for approximately 44% of total revenue in 2024, up from 41% in both 2023 and 2022[20]. - The Utility Solutions Group (USG) segment represented about 36% of total revenue in 2024, consistent with 2023, and an increase from 32% in 2022[23]. - The Test segment contributed approximately 20% of total revenue in 2024, down from 23% in 2023 and 27% in 2022[25]. - International sales accounted for about 28% of total revenue in 2024, a slight decrease from 30% in both 2023 and 2022[29]. - Direct and indirect sales to the U.S. Government accounted for approximately 27%, 23%, and 25% of total revenue in 2024, 2023, and 2022, respectively[30]. Acquisitions and Strategic Initiatives - The company completed the acquisition of MPE Limited in November 2023, enhancing its product offerings for military and critical infrastructure applications[17]. - The company also acquired CMT Materials, LLC in February 2023, which specializes in syntactic materials for various applications[17]. - A Sale and Purchase Agreement for the acquisition of Ultra Electronics' Signature Management & Power business is set for approximately $550 million, with closing expected in the second quarter of fiscal 2025[18]. - The company is conducting a strategic review of its Space business at VACCO, which may lead to a sale or other alternatives to optimize its portfolio[18]. - The company has consolidated Westland Technologies and Globe Composites into a single business to streamline operations and reduce costs[16]. - The company has secured adequate financing for the SM&P Acquisition, with the waiting period under the Hart-Scott-Rodino Act expired in August 2024[18]. Growth and Backlog - Total Company backlog of firm orders at September 30, 2024, was $879.0 million, representing an increase of $106.6 million (13.8%) from $772.4 million at September 30, 2023[40]. - Approximately 70% of the total backlog at September 30, 2024, is expected to be completed in the fiscal year ending September 30, 2025[40]. - The A&D segment's backlog increased from $484.1 million in 2023 to $600.4 million in 2024[40]. Workforce and Engagement - As of September 30, 2024, the company employed 3,281 persons, including 3,242 full-time employees, with 20% located in 19 foreign countries[50]. - The company achieved an overall engagement favorability of 81% in its first global engagement survey, exceeding comparable benchmarks[52]. - The company has a diverse workforce, with over half of employees coming from demographically diverse backgrounds[53]. - As of September 30, 2024, the workforce composition is 69% male and 24% female, with 7% classified as unknown[60]. - Among the workforce, 41% are identified as minorities, with 37% being White[59]. - The generational breakdown shows 40% Millennials, 27% Gen X, 20% Boomers, and 13% Gen Z[59]. Intellectual Property and Risk Management - The company emphasizes developing intellectual property and protecting its rights, with significant value attributed to its patents across all segments[39]. - The company has sought patent protection for significant inventions in its Test segment, including novel designs for window and door assemblies and improved acoustic techniques[38]. - The company is subject to supply chain risks, particularly for aerospace-grade titanium and gaseous helium, which may be in short supply[42]. - The company has a structured approach to risk factors, which is referenced in its reports[63]. Leadership - The current President and CEO, Bryan H. Sayler, has been in position since January 1, 2023, and previously led the Utility Solutions Group[67]. - Christopher L. Tucker has been the CFO since April 2021, focusing on enhancing finance and IT capabilities[67]. - David M. Schatz has served as Senior Vice President and General Counsel since April 2021, with extensive knowledge of the company's operations and M&A[67]. Transparency and Reporting - The company provides free access to its financial reports and other documents on its website[65].

Financial Performance - Q4 FY24 - Sales increased by 9.5% to $298.5 million, with organic growth contributing 8.5% and the MPE acquisition adding 1%[6,7] - Adjusted EBIT increased by 17.7% to $51.8 million, resulting in an adjusted EBIT margin of 17.4%, a 1.3 percentage point increase[6,7] - Adjusted EPS increased by 16.8% to $1.46, despite profit erosion on Space development programs at VACCO[6,7] - Entered orders decreased by 14.9% to $288.8 million, leading to a book-to-bill ratio of 0.97, but the ending backlog increased by $107 million (14%) from September 30, 2023[6,7] Segment Performance - Q4 FY24 - A&D sales increased by 16.2% to $124.3 million, with adjusted EBIT increasing by 26.7% to $24.2 million and a record ending backlog of +$116 million (+24%) from 9/30/23[9,10,11] - USG sales increased by 6.2% to $108.5 million, with adjusted EBIT increasing by 9.0% to $28.6 million[12,13] - Test sales increased by 3.6% to $65.8 million, with adjusted EBIT increasing by 8.1% to $12.0 million[17,20] Full Year FY24 Performance - Sales increased by 7.4% to $1,026.8 million[21,23] - Adjusted EBIT increased by 13.8% to $150.1 million, with an adjusted EBIT margin of 14.6%, an increase of 0.8 percentage points[21,23] - Adjusted EPS increased by 13.0% to $4.18[21,23] - Entered orders increased by 9.7% to $1,133.4 million, resulting in a book-to-bill ratio of 1.10 and an ending backlog increase of $107 million (14%)[21,22,23] FY25 Guidance - Sales are expected to increase by 6% to 8%, reaching a range of $1.09 billion to $1.11 billion[28,29] - Adjusted EBIT is expected to increase by approximately 12% to 15%, with margins increasing to 15.3% - 15.7%[28] - Adjusted EPS is expected to be in the range of $4.70 to $4.90 per share, representing a growth of 12% to 17%[28,30]

Financial Data and Key Metrics Changes - The company achieved a significant milestone with orders and sales both exceeding $1 billion for the first time in its history [6][24] - Sales in Q4 increased by 9.5%, driven by 8.5% organic growth and 1% from the MPE acquisition [16] - Adjusted EBIT margins improved by 130 basis points to 17.4%, with adjusted EPS rising 17% to $1.46 per share [17][24] Business Line Data and Key Metrics Changes - **Aerospace & Defense**: Orders saw a decline of 15% in Q4 due to tough comparisons from the previous year, but backlog increased by 24% to over $600 million [15][18] - **Utility Solutions Group**: Orders increased by 2% and sales grew by 6%, with adjusted EBIT up 70 basis points to 26.4% of sales [20] - **Test Business**: Orders decreased by 8.5%, but sales grew by 4%, with margins increasing by 80 basis points to 18.3% [21][22] Market Data and Key Metrics Changes - The regulated utility market is experiencing increased capital spending forecasts, which is beneficial for the company's global business [11] - The renewable energy segment showed strong orders and sales growth in Q4, indicating a positive outlook for future demand [12] Company Strategy and Development Direction - The company is focused on maintaining momentum in its business segments, particularly in Aerospace & Defense and Utility Solutions, while also addressing challenges in the Test business [7][10] - The company is optimistic about the future, with guidance for 2025 indicating sales growth of 6% to 8% and adjusted EPS growth of 12% to 17% [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges, including the resolution of the Boeing strike, which is not expected to impact financials in 2025 [9][30] - The company is closely monitoring the regulatory environment and potential impacts on the renewable energy sector, but remains optimistic about underlying market demand [44][48] Other Important Information - The company completed regulatory filings for the Signature Management & Power acquisition and is awaiting UK approvals [31][32] - Operating cash flow for the year was over $127 million, a substantial increase from the previous year [25] Q&A Session Summary Question: A&D outlook and Boeing impact - Management indicated a conservative approach to forecasting, with expectations of offsetting any potential impacts from Boeing contracts with work from other customers [34][36] Question: SM&P acquisition guidance - Management confirmed that updated guidance will break down components related to the acquisition, including amortization impacts [38][39] Question: Test business growth expectations - Management noted that no significant improvement in China is embedded in the forecast, maintaining a steady outlook [43] Question: Renewable energy policy risks - Management emphasized that underlying market demand for electrification is increasing, regardless of policy changes [44][48] Question: VACCO Space business review - Management is considering options for the VACCO business and expects to provide updates in February [53][54] Question: SM&P acquisition status - Management provided an update on the acquisition process, indicating a normal bureaucratic pace in the UK review [62]

Core Viewpoint - ESCO Technologies Inc. reported strong financial results for Q4 2024 and FY 2024, with significant sales growth and improved earnings per share, despite a decrease in entered orders in Q4 2024. The company anticipates continued growth in 2025 across its business segments, driven by strong market demand in aerospace, Navy, and electric power sectors [1][2][10]. Operating Highlights - Q4 2024 sales increased by $26 million (9.5%) to $299 million compared to $273 million in Q4 2023, with organic sales up by $23 million (8.5%) and the MPE acquisition contributing $3 million (1.0%) [2]. - FY 2024 sales rose by $71 million (7.4%) to $1.03 billion from $956 million in FY 2023, with organic sales increasing by $61 million (6.4%) and the MPE acquisition adding $10 million (1.0%) [2]. - Q4 2024 GAAP EPS increased by 6.5% to $1.32 per share compared to $1.24 per share in Q4 2023, while adjusted EPS rose by 16.8% to $1.46 per share [2]. - FY 2024 GAAP EPS increased by 10.1% to $3.94 per share compared to $3.58 per share in FY 2023, with adjusted EPS up by 13.0% to $4.18 per share [2]. Segment Performance Aerospace & Defense (A&D) - Q4 2024 sales increased by $17 million (16.2%) to $124 million from $107 million in Q4 2023, driven by strength in Navy, commercial aerospace, and defense aerospace programs [5]. - FY 2024 sales increased by $56 million (14.2%) to $448 million from $392 million in FY 2023 [5]. - Q4 2024 EBIT increased by $4.7 million to $23.4 million, with adjusted EBIT margin improving to 19.4% [5][6]. Utility Solutions Group (USG) - Q4 2024 sales increased by $6 million (6.2%) to $108 million from $102 million in Q4 2023, with FY 2024 sales up by $27 million (7.8%) to $369 million from $342 million [7]. - Q4 2024 EBIT increased by $2.4 million to $28.6 million, with adjusted EBIT margin at 26.4% [7]. RF Test & Measurement (Test) - Q4 2024 sales increased by $2 million (3.6%) to $66 million from $64 million in Q4 2023, while FY 2024 sales decreased by $12 million (5.3%) to $210 million [8]. - Q4 2024 EBIT and adjusted EBIT both increased by $0.9 million to $12.0 million, with a margin of 18.3% [8]. Business Outlook - Management expects net sales to grow by 6% to 8% in FY 2025, reaching a range of $1.09 to $1.11 billion, with A&D growing by 7% to 9%, USG by 7% to 9%, and Test by 3% to 5% [10]. - Adjusted EBIT is anticipated to increase by approximately 12% to 15%, with margins rising to 15.3% to 15.7% of sales [10]. - FY 2025 adjusted EPS is expected to increase by 12% to 17% to a range of $4.70 to $4.90 per share [10]. Strategic Initiatives - The company is in the process of acquiring Signature Management & Power (SM&P) for $550 million, which is expected to enhance its Navy business [9]. - A strategic review of the Space business at VACCO is underway to optimize the company's portfolio and create shareholder value [11][12].

Core Insights - ESE Entertainment Inc. has acquired Bombee Global Entertainment Ltd., expanding its services into live events and entertainment sectors [1][2][4] - The acquisition is seen as a strategic move to enhance ESE's market position and capitalize on the growing demand for live events post-COVID [5] Company Overview - ESE Entertainment Inc. is a global technology company focused on gaming, providing services to video game developers, publishers, and brands [7] - Bombee Global Entertainment Ltd. specializes in live production, special effects, broadcast, and event management for the gaming sector, with a notable client roster including Microsoft, AMD, and Electronic Arts [3][6] Industry Context - The gaming events industry is experiencing significant growth, exemplified by the 2024 Esports World Cup, which had a record prize pool of over $60 million [3] - The convergence of gaming, music, and sports is creating new opportunities for innovative experiences in the entertainment sector [5]

Company Performance - Esco Technologies (ESE) has gained approximately 10.1% year-to-date, outperforming the average gain of 9.8% in the Industrial Products group [2] - The Zacks Consensus Estimate for ESE's full-year earnings has increased by 2.1% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [2] - Esco Technologies currently holds a Zacks Rank of 2 (Buy), suggesting favorable conditions for potential investors [1] Industry Comparison - Esco Technologies is part of the Manufacturing - Electronics industry, which has an average gain of 12.1% year-to-date, indicating that ESE is slightly underperforming its industry [3] - In contrast, Trimble Navigation (TRMB), another stock in the Industrial Products sector, has returned 13.8% year-to-date and is part of the Manufacturing - General Industrial industry, which has declined by 4.1% this year [2][3] - The Zacks Sector Rank places the Industrial Products group at 14 out of 16 groups, reflecting its relative performance within the broader market [1]

Company Overview - ESCO Technologies Inc. is a global provider of highly engineered products and solutions serving diverse end-markets [2] - The company manufactures filtration and fluid control products for aviation, Navy, space, and process markets worldwide [2] - ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems [2] - The company provides diagnostic instruments, software, and services to industrial power users and the electric utility and renewable energy industries [2] - ESCO is headquartered in St. Louis, Missouri, with offices and manufacturing facilities worldwide [2] Upcoming Financial Event - ESCO will report its fourth quarter financial results after the market close on Thursday, November 14, 2024 [1] - A conference call will follow the financial results announcement, scheduled for 4:00 p.m. Central Time on the same day [1] - The conference call will include a webcast and an accompanying slide presentation available in the Investor Center of ESCO's website [1] - A replay of the webcast will be available for those unable to participate live [1]

Core Insights - ESE Entertainment Inc. has acquired Bombee Global Entertainment Ltd., enhancing its growth strategy and expanding its reach in the gaming and entertainment sectors [1][4] - The acquisition is expected to improve ESE's financial performance and provide access to Bombee's strong roster of Tier 1 clients [1][2] Strategic Highlights and Future Objectives - Bombee brings a proven revenue growth track record and a robust project pipeline extending into 2025 and 2026, reinforcing ESE's growth trajectory [2] - The acquisition enhances ESE's technology and production capabilities, including offerings in artificial intelligence, immersive augmented reality, and special effects [2][5] - ESE aims to leverage Bombee's established relationships with industry giants like Electronic Arts to expand its market presence [3] Enhanced Operational Capacity - Bombee's advanced production capabilities will allow ESE to deliver large-scale, high-quality projects across various sectors, including live broadcasting and special effects [3][5] - The combined resources of ESE and Bombee are expected to strengthen their industry position and open new opportunities for innovation [4][5] Leadership and Vision - The leadership teams from both companies bring deep industry expertise, which is anticipated to enhance ESE's operational capabilities and strategic vision [3][4] - ESE's CEO emphasized that the acquisition aligns with the company's vision to become a leader in the North American gaming and entertainment space [4]

Core Viewpoint - ESE Entertainment Inc. has acquired Bombee Global Entertainment Ltd., enhancing its presence in the North American gaming market and positioning itself for future growth and innovation in the industry [1][2]. Acquisition Details - The acquisition was executed through a share purchase agreement, where ESE acquired all outstanding shares of Bombee Americas for a total consideration of $1,500,000 in cash and 30,000,000 common shares valued at $0.10 each [2][3]. - The cash payment structure includes $750,000 at closing, $375,000 six months post-closing, and another $375,000 twelve months post-closing, subject to adjustments based on working capital [2]. Operational Continuity - The founders of Bombee Americas will continue to manage the business under ESE for three years, ensuring operational continuity and a smooth transition [3]. - The acquisition includes the assumption of Bombee Americas' liabilities, which are expected to have a negligible impact on ESE's overall operations [3]. Strategic Implications - This acquisition marks a significant milestone for ESE, referred to as a "2.0 version" of the company, aimed at delivering enhanced value to partners and improving the gaming experience for clients globally [2]. - ESE aims to leverage Bombee's expertise in live production and event management to expand its service offerings in the gaming sector [1][2].

VANCOUVER, BC, Sept. 13, 2024 /PRNewswire/ - ESE Entertainment Inc. (TSXV: ESE) (OTCQB: ENTEF) ("ESE" or the "Company"), a gaming company that provides a range of services to leading video game developers and publishers, is pleased to announce the appointment of Ryan Maarschalk B.Sc, CPA, as a Director of the Company. About Mr. Maarschalk Mr. Ryan Maarschalk was previously a Director of ESE Entertainment, after its initial public listing and subsequent valuation growth. He brings over two decades of leaders ...