ESCO Technologies Inc. (NYSE:ESE) Q3 2021 Results Earnings Conference Call August 9, 2021 5:00 PM ET Company Participants Kate Lowrey - Director of Investor Relations Vic Richey - Chairman, Chief Executive Officer, President Chris Tucker - Senior Vice President, Chief Financial Officer Conference Call Participants Cameron Lochridge - Stephens John Franzreb - Sidoti Jon Tanwanteng - CJS Securities Operator Good day and welcome to the ESCO Q3 conference call. Today's call is being recorded. With us today are ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR | --- | --- | --- | --- | |---------------------------------------------------------------------------------|----------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported Q2 adjusted EPS of $0.59, compared to $0.68 in the prior year Q2, reflecting the impact of the COVID operating environment [24] - Adjusted EBITDA for Q2 remained constant at $31 million, equal to the $31 million reported last year in Q2 pre-COVID, despite a 6% decrease in sales [25][15] - Year-to-date adjusted EBITDA increased over $60 million with an 18% margin, up from 17% in the prior year [26] Business Line Data and Key Metrics Changes - The AMD sales were significantly lower than the prior year due to COVID impact on commercial aerospace, but the portfolio diversity helped mitigate this headwind [14] - The test business outperformed expectations with sales growth in both Q2 and year-to-date, achieving an EBIT margin of 13% [37] - The USG business reported an adjusted EBITDA margin of 26% for the first six months of the year, up from approximately 22% in the prior year's first half [19] Market Data and Key Metrics Changes - There are signs of recovery in commercial aerospace, with airlines adding idle aircraft back into service [16] - The company booked $176 million in new business in Q2, ending the quarter with a backlog of $522 million and a book-to-bill ratio of 106% [29] - The commercial aerospace and utility end markets are showing customer stabilization, supporting a positive outlook for recovery in the second half of fiscal 2021 [31] Company Strategy and Development Direction - The company aims to maximize liquidity for future M&A growth and increased investment in new products and solutions [20] - The focus remains on creating long-term shareholder value while evaluating several M&A opportunities [39] - The company plans to leverage existing cost structures through M&A to create additional operating efficiencies [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by COVID, highlighting solid operating results and increased liquidity [12] - The outlook for near-term growth opportunities in navy and space businesses remains strong, with expectations for continued recovery in commercial aerospace [16][31] - The increasing distribution of COVID-19 vaccines is anticipated to benefit and accelerate the recovery of commercial air travel and utility spending [31] Other Important Information - The company generated record cash flow during the first half of the year, with free cash flow conversion at 134% of net earnings [21] - The balance sheet is described as rock solid, with approximately $760 million of liquidity available [22] - Management noted that the amortization of intangibles and interest expense both decreased, while tax expense as a percent of pre-tax income increased [28] Q&A Session Summary Question: Insights on A&D performance and margin structure - Management noted that non-commercial aerospace segments performed better than expected, with non-recurring engineering contributing positively [43] - The cost structure has been reset, and management plans to be diligent about adding costs back as business grows [44] Question: Balance sheet optimization and M&A strategy - Management indicated comfort with leverage levels around 2.5 times, with a focus on acquisitions in the $20 million to $150 million range [46][50] - The pipeline for potential acquisitions is strong, with many opportunities being evaluated [47] Question: Impact of potential infrastructure bill - Management believes the infrastructure bill could positively impact renewable energy and defense budgets, particularly in naval programs [53][54] Question: Test business performance and order activity - The test business has shown solid performance with higher margins driven by project execution and a favorable sales mix [60] - Order activity is picking up as utility services return to normal operations post-COVID [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 MARCH 31, 2021 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 | --- | --- | --- | |-----------------------------------------------------|---------------------|------------- ...

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 DECEMBER 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR | --- | --- | --- | --- | |---------------------------------------------------------------------------|-------------------|----------------------------------------------------------- ...

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, 2020 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) Q4 2020 Earnings Conference Call November 19, 2020 5:00 PM ET Company Participants Kate Lowrey - Director, Investor Relations Vic Richey - Chairman and Chief Executive Officer Gary Muenster - Vice President and Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities John Franzreb - Sidoti & Company Operator Good day and welcome to ESCO’s Q4 Conference Call. Today’s call is being recorded. With us today are Vic Richey, Chairman and CEO; Gary Muen ...

ESCO Technologies, Inc. (NYSE:ESE) Q3 2020 Earnings Conference Call August 10, 2020 5:00 PM ET Company Participants Kate Lowrey - Director, IR Victor Richey - Chairman, President & CEO Gary Muenster - EVP, CFO & Director Conference Call Participants John Franzreb - Sidoti & Company Jonathan Tanwanteng - CJS Securities Operator Good day, and welcome to the ESCO Technologies Third Quarter 2020 Earnings Conference Call. Today's call is being recorded. With us today are Vic Richey, Chairman and CEO; Gary Muenst ...

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, 2020 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) | --- | --- | |------------------ ...

ESCO Technologies Inc. (NYSE:ESE) Q2 2020 Earnings Conference Call May 6, 2020 5:00 PM ET Company Participants Vic Richey - Chairman and CEO Gary Muenster - Vice President and CFO Kate Lowrey - Director of Investor Relations Conference Call Participants Robert McCarthy - Stephens Jon Tanwanteng - CJS Securities John Franzreb - Sidoti and Company Operator Good day, and welcome to the Q2 2020 ESCO Technologies conference call. Today's call is being recorded. With us today are Vic Richey, Chairman and CEO; Gar ...