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Esco Technologies Inc, USA
COMPANY WATCH
Esco Technologies Inc, USA Key Figures (US$ million) First quarter ended 31.12 2010 Net Sales Of Which: Filtration/Fluid Flow
112.7
35.7
24.5
97.5
67.4
144.1
112.0
Earnings before Income Taxes Of Which: Filtration/Fluid Flow
15.8
0.7
5.5
2.4
Net Earnings
10.8
0.4
Total Costs and Expenses
March 2011
Richey said the company had begun the quarter with a record level of orders, which made the US$186 million of new contracts signed in the first period particularly satisfying. “The increase in our backlog was driven by the significant orders received in Test and Utility Solutions Group, both domestically and internationally,” he added. Richey said Esco was confident about its sales and earnings profit for the remainder of 2011, with significant growth prospects expected for the next three years. “We have a sizeable amount of specific, identifiable growth opportunities that should manifest themselves into orders and sales over that time frame,” Richey said. “The significant amount of remaining 2011 sales expected from current backlog provides reasonable visibility into our nearterm sales and profit outlook. On the international growth front, our new business opportunities, including the potential expansion of several current deployments over the next few years, remain very exciting.” Esco is forecasting that its full-year revenues will increase in the region of 10-15% on fiscal 2010. ■ www.escotechnologies.com
2009
Revenues Of Which: Pulp and Paper Water Treatment
190.7
139.2
52.9 127.3
40.7 95.9
Cost of Sales
152.1
106.2
Gross Profit
38.6
33.0
7.4
7.7
(0.9)
1.7
Nine months ended 31.12 2010
2009
EBITDA
COMMENT Esco Technologies enjoyed a strong first quarter of fiscal 2011 with sales reaching US$159.9 million, up 42% on a year earlier. Net earnings leapt to US$10.8 million from fiscal 2010’s US$0.4 million. Revenues in the company’s Filtration segment increased 46% year on year to reach US$35.7 million, with US$6 million of the US$11 million uplift coming from its recent Crissair acquisition. EBIT in the division was up 129% to US$5.5 million. Vic Richey, Esco’s chair and CEO, said the figures represented the best first fiscal quarter operating results in the company’s history. “We continue to focus on sales growth and executing our operating plan, and during the first quarter, we again demonstrated our success,” he said. “First quarter sales increased US$47 million over the prior year as all three operating segments showed meaningful growth. EBIT increased more than US$14 million in the first quarter, reflecting exceptional operating performance across the company, which in turn drove EBIT margins higher in all three segments.”
Key Figures (C$ million) Third quarter ended 31.12 2010
2009
159.9
Cost of Sales
GLV Inc, Canada
Net Earnings/(Loss)
Revenues Of Which: Pulp and Paper Water Treatment
512.0
355.2
144.4 337.3
128.2 219.8
Cost of Sales
413.6
267.8
Gross Profit
98.4
87.3
7.0
14.4
(14.6)
3.3
EBITDA Net Earnings/(Loss)
COMMENT Industrial water and pulp treatment firm GLV Inc has posted third quarter revenues for fiscal 2011 of C$190.7 million, a 37.0% increase on the same quarter a year earlier. The sales increase reflected organic growth in both its divisions, particularly the Water Treatment, segment, plus the contribution of its recent acquisition Christ Water Technology (CWT). The company, however, posted a net loss of C$0.9 million for the period compared to a net profit of C$1.7 million posted in the 2010 comparator. The company said the loss resulted from the unfavourable effect of provisions recognized in the third quarter, the increase in
amortization of intangible assets prior to the acquisition of CWT and interest on long-term debt financing. “The results for the third quarter show a marked improvement in profitability compared with the two previous fiscal quarters,” Richard Verreault, GLV’s president and CEO, said. “While the integration of CWT has proven to be more challenging than expected and had a negative impact on results in the first half of the fiscal year, efforts to consolidate our water treatment operations under the Ovivo brand and strengthen management and control processes are starting to pay off.” ■ www.glv.com
Filtration Industry Analyst
9
Esco Technologies Inc, USA Key Figures (US$ million) First quarter ended 31.12 2010 Net Sales Of Which: Filtration/Fluid Flow
112.7
35.7
24.5
97.5
67.4
144.1
112.0
Earnings before Income Taxes Of Which: Filtration/Fluid Flow
15.8
0.7
5.5
2.4
Net Earnings
10.8
0.4
Total Costs and Expenses
March 2011
Richey said the company had begun the quarter with a record level of orders, which made the US$186 million of new contracts signed in the first period particularly satisfying. “The increase in our backlog was driven by the significant orders received in Test and Utility Solutions Group, both domestically and internationally,” he added. Richey said Esco was confident about its sales and earnings profit for the remainder of 2011, with significant growth prospects expected for the next three years. “We have a sizeable amount of specific, identifiable growth opportunities that should manifest themselves into orders and sales over that time frame,” Richey said. “The significant amount of remaining 2011 sales expected from current backlog provides reasonable visibility into our nearterm sales and profit outlook. On the international growth front, our new business opportunities, including the potential expansion of several current deployments over the next few years, remain very exciting.” Esco is forecasting that its full-year revenues will increase in the region of 10-15% on fiscal 2010. ■ www.escotechnologies.com
2009
Revenues Of Which: Pulp and Paper Water Treatment
190.7
139.2
52.9 127.3
40.7 95.9
Cost of Sales
152.1
106.2
Gross Profit
38.6
33.0
7.4
7.7
(0.9)
1.7
Nine months ended 31.12 2010
2009
EBITDA
COMMENT Esco Technologies enjoyed a strong first quarter of fiscal 2011 with sales reaching US$159.9 million, up 42% on a year earlier. Net earnings leapt to US$10.8 million from fiscal 2010’s US$0.4 million. Revenues in the company’s Filtration segment increased 46% year on year to reach US$35.7 million, with US$6 million of the US$11 million uplift coming from its recent Crissair acquisition. EBIT in the division was up 129% to US$5.5 million. Vic Richey, Esco’s chair and CEO, said the figures represented the best first fiscal quarter operating results in the company’s history. “We continue to focus on sales growth and executing our operating plan, and during the first quarter, we again demonstrated our success,” he said. “First quarter sales increased US$47 million over the prior year as all three operating segments showed meaningful growth. EBIT increased more than US$14 million in the first quarter, reflecting exceptional operating performance across the company, which in turn drove EBIT margins higher in all three segments.”
Key Figures (C$ million) Third quarter ended 31.12 2010
2009
159.9
Cost of Sales
GLV Inc, Canada
Net Earnings/(Loss)
Revenues Of Which: Pulp and Paper Water Treatment
512.0
355.2
144.4 337.3
128.2 219.8
Cost of Sales
413.6
267.8
Gross Profit
98.4
87.3
7.0
14.4
(14.6)
3.3
EBITDA Net Earnings/(Loss)
COMMENT Industrial water and pulp treatment firm GLV Inc has posted third quarter revenues for fiscal 2011 of C$190.7 million, a 37.0% increase on the same quarter a year earlier. The sales increase reflected organic growth in both its divisions, particularly the Water Treatment, segment, plus the contribution of its recent acquisition Christ Water Technology (CWT). The company, however, posted a net loss of C$0.9 million for the period compared to a net profit of C$1.7 million posted in the 2010 comparator. The company said the loss resulted from the unfavourable effect of provisions recognized in the third quarter, the increase in
amortization of intangible assets prior to the acquisition of CWT and interest on long-term debt financing. “The results for the third quarter show a marked improvement in profitability compared with the two previous fiscal quarters,” Richard Verreault, GLV’s president and CEO, said. “While the integration of CWT has proven to be more challenging than expected and had a negative impact on results in the first half of the fiscal year, efforts to consolidate our water treatment operations under the Ovivo brand and strengthen management and control processes are starting to pay off.” ■ www.glv.com
Filtration Industry Analyst
9