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ESCO TECHNOLOGIES ESCO Announces First Quarter Fiscal 2021 Results February 8 , 2021 - GAAP EPS $ 0.52 and Adjusted EPS $ 0.55 ( Tops Consensus Estimate ) - Record Q1 Cash Flow from Operations , Leverage Ratio 0.38x , Liquidity of $ 740 Million - St. Louis , Feb. 08 , 2021 ( GLOBE NEWSWIRE ) -- ESCO Technologies Inc. ( NYSE : ESE ) ( ESCO , or the Company ) today reported its operating results for the first quarter ended December 31 , 2020 ( Q1 2021 ) compared to the first quarter ended December 31 , 2019 ( Q1 2020 ) . COVID - 19 Update Vic Richey , Chairman and Chief Executive Officer , commented , " While we continue managing through the COVID - 19 global pandemic , our primary focus remains the health and safety of our employees , customers and suppliers , thereby securing the financial well - being of the Company . " Our Q1 2021 results reflect the importance of maintaining diversity across our end - markets , as this diversity , coupled with our strong balance sheet and substantial liquidity will continue to support our long - term growth . Our multi - segment platform , enabled us to substantially mitigate COVID - 19's impact on sales and earnings , while generating record cash flow during Q1 which allowed us to further reduce our debt and lower our leverage ratio to 0.38x at December 31st . Our continued focus on operating execution and effective cost management resulted in a strong start to the year . “ I'm confident that our well - tested operating model and our recent cost reduction actions will position us for solid earnings growth as our end - markets recover . The fundamentals of our portfolio remain strong and our goal remains the same – to create long - term shareholder value . " Q1 2021 Acquisition As announced previously , on October 22 , 2020 , the Company acquired Advanced Technology Machining , Inc. and its affiliate TECC Grinding , Inc. ( collectively referred to as " ATM " ) , a small , privately - held manufacturer of precision machined metal parts serving the aerospace , defense , and space industries . Located in Valencia , California near Crissair's facility , ATM has a solid customer base supplying custom - designed parts widely used on defense and commercial aircraft , as well as missile and tank programs . The results of ATM are included in the Q1 2021 A & D operating segment since the date of acquisition . Discrete Items During Q1 2021 , the Company incurred $ 1 million , or $ 0.03 per share , of one - time purchase accounting charges related to the ATM acquisition , and facility shut - down costs in the USG segment related to the closure of a former manufacturing facility in Toronto ( described in the November 2020 earnings release ) . These costs are excluded from the calculation of Adjusted EBITDA and Adjusted EPS in Q1 2021 . During Q1 2020 , the company incurred $ 0.7 million , or $ 0.02 per share , of cost reduction actions primarily related to the move of Doble's headquarters facility from Watertown to Marlborough , Massachusetts . These costs are excluded from the calculation of Adjusted EBITDA and Adjusted EPS in Q1 2020 . Also during Q1 2020 , the company completed the sale of its Technical Packaging segment which resulted in gross cash proceeds of $ 191 million and a $ 77 million , or $ 2.93 per share net gain on the sale which is recorded as discontinued operations . The impact of discontinued operations is excluded from the calculation of Adjusted EBITDA and Adjusted EPS in Q1 2020 . The financial results presented include certain non - GAAP financial measures such as EBIT , EBITDA , Adjusted EBITDA and Adjusted EPS , as defined within the " Non - GAAP Financial Measures " described below . Any non - GAAP financial measures presented are reconciled to their respective GAAP equivalents . Management believes these non - GAAP financial measures are useful in assessing the ongoing operational profitability of the Company's business segments , and therefore , allow shareholders better visibility into the Company's underlying operations . See " Non - GAAP Financial Measures " described below . Earnings Summary Q1 2021 GAAP EPS was $ 0.52 per share ( GAAP net earnings of $ 14 million ) and included the net earnings ' impact of the Q1 2021 Discrete Items described above . Excluding the net earnings impact of the Discrete Items , Q1 2021 Adjusted EPS was $ 0.55 per share . Q1 2020 GAAP EPS was $ 3.32 per share ( GAAP net earnings of $ 87 million ) and included $ 2.91 per share from discontinued operations and $ 0.02 per share from the Discrete Items noted above . Excluding discontinued operations and the net earnings impact of the Discrete Items , Q1 2020 Adjusted EPS was $ 0.43 per share . Q1 2021 Adjusted EBITDA increased 4.4 percent to $ 29.2 million , compared to Q1 2020 Adjusted EBITDA of $ 28 million . Operating Highlights - Q1 • Net sales were $ 163 million in Q1 2021 , compared to $ 172 million in Q1 2020 . • A & D segment sales decreased $ 11 million in Q1 2021 , resulting from lower commercial aerospace sales due to COVID - 19 ,