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ESCO TECHNOLOGIES ESCO Announces Third Quarter Fiscal 2021 Results August 9 , 2021 - Q3 GAAP EPS $ 0.57 and Adjusted EPS $ 0.67 - YTD 2021 GAAP EPS $ 1.65 and Adjusted EPS $ 1.75 ( versus $ 1.87 YTD 2020 ) - $ 75 Million YTD Cash Flow from Operations - Q3 Orders Over $ 200 Million - Book - to - bill of 1.12 - St. Louis , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) -- ESCO Technologies Inc. ( NYSE : ESE ) ( ESCO , or the Company ) today reported its operating results for the third quarter and nine months ended June 30 , 2021 ( Q3 2021 and YTD 2021 ) compared to the third quarter and nine months ended June 30 , 2020 ( Q3 2020 and YTD 2020 ) . Vic Richey , Chairman and Chief Executive Officer , commented , " Our dedicated team continues to successfully manage through the impacts of the COVID - 19 global pandemic . Our liquidity and end - market diversity have helped provide stability in our operating results as we have navigated through this challenging time . Our commitment to improving working capital management , cost reduction activities , and new product development has us well - positioned for profitable growth as our end - markets continue to recover . " At the beginning of this fiscal year , we stated that with the strength of the first half of fiscal 2020 ( pre - COVID ) , we projected the first half of fiscal 2021 to be slightly lower in comparison to 2020 , and that we expected the second half of 2021 to be a favorable comparison to the prior year given our expectation of tangible elements of recovery . Due to our focus on effective cost management and program execution , our first half Adjusted EPS and Adjusted EBITDA exceeded the prior year on lower revenue ( as presented in our May 4 , 2021 earnings release for Q2 and the first half of 2021 ) . In Q3 , we began to see positive signs of the start of longer term recovery across our end - markets most affected by COVID . Q3 entered orders were up $ 46 million ( 29 percent ) over the prior year Q3 to over $ 200 million , with growth in commercial and military aerospace , Navy , space , electric utility and renewable energy . Sales increased 5 percent over the prior year with all three business segments posting higher sales for the quarter . We will continue our focus on optimizing our cost structure , driving working capital improvement , and investing in the business to deliver profitable growth going forward . " Discrete Items During Q3 2021 , the Company incurred $ 2.7 million ( $ 0.10 per share ) consisting of after - tax charges at Corporate due to one - time compensation costs related to management transition and acquisition costs ( $ 0.09 per share ) , and charges related to the USG ( Morgan Schaffer ) facility move ( $ 0.01 per share ) . These costs are excluded from the calculation of Q3 2021 Adjusted EBITDA and Adjusted EPS . YTD 2021 , the Company has incurred $ 2.8 million ( $ 0.10 per share ) consisting of after - tax charges at Corporate due to one - time compensation and acquisition costs ( $ 0.10 per share ) , an ATM acquisition inventory step - up charge ( $ .01 per share ) , and charges related to USG ( Manta and Morgan Schaffer ) facility consolidations ( $ 0.05 per share ) , partially offset by the final settlement from the sale of the Doble Watertown facility ( $ 0.06 gain per share ) . These costs are excluded from the calculation of Q3 2021 YTD Adjusted EBITDA and Adjusted EPS . During Q3 2020 , the Company incurred $ 0.9 million ( $ 0.04 per share ) of after - tax charges primarily related to incremental costs associated with COVID - 19 . These costs are excluded from the calculation of Q3 2020 Adjusted EBITDA and Adjusted EPS . In the first nine months of 2020 , the Company incurred $ 1.5 million ( $ 0.06 per share ) of after - tax charges primarily related to incremental costs associated with COVID - 19 ( $ 0.04 per share ) and charges related to the move of the Doble headquarters facility ( $ .02 per share ) . In addition , during Q1 2020 , the company completed the sale of its Technical Packaging segment which resulted in gross cash proceeds of $ 191 million and a net gain on the sale of $ 77 million , or $ 2.91 per share , which is recorded as discontinued operations . The financial results presented include certain non - GAAP financial measures such as Adjusted SG & A , EBIT , Adjusted 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 Q3 2021 GAAP EPS was $ 0.57 per share ( GAAP net earnings of $ 14.9 million ) and included the net earnings impact of the Q3 2021 Discrete Items described above . Excluding the net earnings impact of the Discrete Items , Q3 2021 Adjusted EPS was $ 0.67 per share . In the third quarter , the Company's P & L was negatively impacted by approximately $ 2.1 million driven by new product development challenges , increased production costs , and product quality issues at our Westland Technologies subsidiary , within our A & D segment . We have already taken a number of steps to correct production issues and reduce costs throughout the operation . Westland will continue to be an important part of the overall A & D group and we are actively exploring additional opportunities for synergies with our Globe operating unit . YTD 2021 GAAP EPS was $ 1.65 per share ( GAAP net earnings of $ 43.1 million ) and included the net earnings impact of the YTD 2021 Discrete Items described above . Excluding the net earnings impact of the Discrete Items , YTD 2021 Adjusted EPS was $ 1.75 per share . During the third quarter of 2021 , the Company identified $ 2.3 million out of period pretax adjustments to our previously reported YTD P & L related to the Westland operating issues described above . Of this amount , $ 1.1 million and $ 1.2 million related to the first and second quarters of 2021 , respectively . We have restated our discussion of GAAP and As Adjusted results for YTD 2021 to reflect the correction of these items in the proper periods . On a prospective basis , interim period consolidated financial statements will be updated to reflect these corrections and we have provided disclosures for these items in our interim financial statements .