ESCO Technologies Inc. (NYSE:ESE) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


ESCO Technologies Inc. (NYSE:ESE) Q1 2019 Earnings Conference Call Transcript


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Good day, and welcome to the ESCO Technologies First Quarter 2019 Earnings Conference Call. Today's call is being recorded. With us today are Vic Richey, Chairman and CEO; Gary Muenster, Vice President and CFO. And now to present the forward-looking statement, I would now like to turn the call over to Kate Lowrey, Director of Investor Relations. Please go ahead.

Kate Lowrey

Thank you. Statements made during this call regarding the amounts and timing of 2019 and beyond EPS, adjusted EPS, EBITDA, adjusted EBITDA, cash flow, debt, growth, profitability, sales, costs productivity, tax rate, success in completing additional acquisitions and other statements which are not strictly historical are forward-looking statements within the meaning of the safe harbor provisions of the federal securities laws. These statements are based on current expectations and assumptions, and actual results may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment including, but not limited to, the risk factors referenced in the company's press release issued today, which will be included as an exhibit to the company's Form 8-K to be filed. We undertake no duty to update or revise these forward-looking statements whether as a result of new information, future events or otherwise.

In addition, during this call, the company may discuss some non-GAAP financial measures in describing the company's operating results. A reconciliation of these measures to the most comparable GAAP measures can be found in the press release issued today and found on the company's website at under the link Investor Relations.

Now I'll turn the call over to Vic.

Vic Richey

Thanks, Kate. Before I hand it over to Gary to provide some detailed insight into the first quarter financials, I want to make a couple of comments. We had a solid first quarter across the business and our outlook for the year remains the same as we communicated entering the year. It was a good start to the year with the first quarter being little bit stronger than expected and this trend took a little bit pressure of the -- normal second half ramp-up. Once again I think the first quarter results demonstrate the earnings power of the business and higher sales volumes and continue to be a testament supporting our multi-segment, multi-industry strategy.

We have solid performance across almost every business. The only soft spots we had were in our packaging business and in the renewable energy space, both of which we think are simply timing related. As we look to the rest of the year, our solid order performance in Q1 enhances our confidence and meet our commitments for the year. I'll now provide a little insight into the individual businesses.The aerospace, space and navy markets are all strong and look to remain that way for the next several years. Aircraft manufacturers continue to ramp up production across several air frames and the aftermarket and recently entered MRO market both remained strong.

Additionally, we continue to identify new opportunities