Slide 1: ESCO Technologies Fourth Quarter FY 2023 Earnings Call
ESCO Technologies Fourth Quarter FY 2023 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO November 16, 2023 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation regarding expectations for future results, sales and sales growth, EPS, Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost reduction efforts, margins, income tax rates, the financial success of the Company, the strength
Slide 3: Q4 Results
Q4 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 339.6 44.0 272.6 42.8 $1.25 256.5 $1.21 244.7 16.1% 16.7% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Entered Orders Q4’22 Q4’23 Delta $ Delta % • Record Quarterly Orders Entered Orders $244.7 $3
Slide 4: A&D – Q4
A&D – Q4 ($ in Millions) Entered Orders Sales Adjusted EBIT 177.4 103.7 107.0 23.6 19.1 22.7% 97.5 17.8% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Entered Orders • Entered Orders +$80M (+82%) - Primarily driven by commercial Q4’22 Q4’23 Delta $ Delta % /defense aerospace & Navy orders • Q4 Book-to-Bill of
Slide 5: USG – Q4
USG – Q4 ($ in Millions) Entered Orders Sales Adjusted EBIT 97.4 102.1 26.2 87.8 83.5 19.8 25.7% 23.7% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Entered Orders • Entered Orders +$10M (+11%) Q4’22 Q4’23 Delta $ Delta % • Primarily driven by utility orders at Doble +$14M (+20%) Entered Orders $87.8 97.4 9.6
Slide 6: Test – Q4
Test – Q4 ($ in Millions) Entered Orders Sales EBIT 64.9 69.3 59.4 63.5 11.8 11.1 17.0% 17.5% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Entered Orders • Entered Orders +$5M (+9%) Q4’22 Q4’23 Delta $ Delta % • Strong orders quarter highlighted by large Utility Shielding and Entered Orders $59.4 64.9 +5.5 9
Slide 7: Test Segment Acquisition – MPE, Ltd.
Test Segment Acquisition – MPE, Ltd. • Manufacturer of Electronic Filters • Facility & Component Filters: • 98 Years in Business • Shielded Rooms, Anechoic chambers, MRI • Liverpool, UK • Feedthrough and equipment filters which • 42,000 ft2 Facility are embedded into military, automotive & other cri
Slide 8: Full Year Results
Full Year Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 1,033.4 956.0 131.9 960.5 857.5 $3.70 113.0 $3.21 13.8% 13.2% FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 Entered Orders FY’22 FY’23 Delta $ Delta % • Entered Orders +$73M (+8%) - driven b
Slide 9: Full Year Results by segment
Full Year Results ($ in Millions, except per share amounts) A&D USG Test Sales Sales Sales 392.4 342.3 351.4 -2.8% 278.4 227.7 221.3 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 Adjusted EBIT Adjusted EBIT EBIT 73.1 76.9 69.0 -0.6% 58.1 32.6 32.4 19.6% 18.6% 22.5% 20.9% 14.3% 14.6% FY'22 FY'23 FY'22 FY'23 FY
Slide 10: Full Year Cash Flow & Capital Expenditures
Full Year Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 32.1 135.3 22.4 76.9 FY'22 FY'23 FY'22 FY'23 Operating Cash Flow Cash Flow FY’22 FY’23 Delta • Higher working capital requirements • Accounts Receivable related to increased sales Operating Cash Flow $135
Slide 11: FY'24 Guidance
FY’24 Guidance Sales - Expected to increase 7% to 9% and be in the range of $1.02B to $1.04B (including MPE) • A&D - 8 percent to 10 percent • USG - 6 to 8 percent • Test - 8 to 10 percent (including MPE acquisition) Adjusted EBIT - Expected to increase ~ 12% to 15%, with margins increasing to 14.3%
Slide 12: ESCO Technologies Q&A
ESCO Technologies Fourth Quarter FY 2023 Earnings Call Q&A 12
Slide 13: Reconciliation of Non-GAAP Measures – Q4
Reconciliation of Non-GAAP Measures – Q4 13
Slide 14: Reconciliation of Non-GAAP Measures – Full Year
Reconciliation of Non-GAAP Measures – Full Year 14