ESCO Technologies(US:ESE)2022-08-08 16:00Revenue - The Company reported total revenues of $219,066 thousand for the three months ended June 30, 2022, with a breakdown of $158,977 thousand from commercial customers and $60,089 thousand from U.S. Government customers[54] - For the nine months ended June 30, 2022, total revenues reached $601,004 thousand, with $247,671 thousand from commercial customers and $194,877 thousand from U.S. Government customers[54] - Total revenues for the three months ended June 30, 2022, were $509.962 million, a significant increase from $181.394 million in the same period of 2021[57] - The U.S. Government segment generated $139.008 million in revenue, while the Commercial segment contributed $352.950 million for the same period[57] - Approximately 80% of the remaining performance obligations, totaling $706.8 million, are expected to be recognized as revenue in the next twelve months[61] - The company recognized approximately $74 million in revenues from contract liabilities during the first nine months of 2022[62] - The company expects to recognize revenue from contracts with the U.S. Government on a straight-line basis over the contract term for certain contracts[60] Financial Position - As of June 30, 2022, the Company had total borrowings of $201,000 thousand, with a current portion of long-term debt of $20,000 thousand and total long-term debt of $181,000 thousand[41] - The Company had approximately $291.0 million available to borrow under its Credit Facility as of June 30, 2022, in addition to $61.0 million cash on hand[42] - Shareholders' equity totaled $1,029,882 thousand as of June 30, 2022, reflecting an increase from $1,004,854 thousand at the end of June 2021[46] - The Company classified $20 million as the current portion of long-term debt, intending to repay this amount within the next twelve months[42] Taxation - The effective income tax rate for the third quarter of 2022 was 21.5%, slightly up from 21.3% in the same quarter of 2021, while the year-to-date effective tax rate was 22.3%, down from 22.5%[44] Lease Obligations - Total lease costs for the three months ended June 30, 2022, were $2.739 million, compared to $2.269 million in the same period of 2021[68] - The weighted-average remaining lease term for operating leases was 9.8 years, while for finance leases it was 12.3 years as of June 30, 2022[68] - Cash paid for operating leases was $4.502 million for the nine months ended June 30, 2022, compared to $4.102 million in the same period of 2021[68] - The company has options to extend leases for up to 20 years, which are included in the lease term for future payment calculations[63] Market Risks - The Company is exposed to market risks primarily from changes in interest rates and foreign currency exchange rates[113] - The Company selectively uses derivative financial instruments, including forward contracts and swaps, to manage these risks[113] - The Canadian subsidiary, Morgan Schaffer, enters into foreign exchange contracts to manage foreign currency risk, as a portion of their revenue is denominated in U.S. dollars[113] - All derivative instruments are reported on the balance sheet at fair value[113] - For cash flow hedges, gains or losses on derivatives are deferred in accumulated other comprehensive income until recognized in earnings[113] - There has been no material change to the Company's market risks since September 30, 2021[113] - Further discussion about market risk can be found in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2021[113] Operational Profitability - EBIT is used by management to assess operational profitability, excluding interest and taxes, and is a key measure for resource allocation and incentive compensation[39] Foreign Currency Translation - The Company experienced a foreign currency translation loss of $11,905 thousand for the three months ended June 30, 2022, contributing to an accumulated other comprehensive loss of $19,377 thousand[46]