Exhibit 99.4
Unaudited Pro Forma Consolidated Statement of Operations for the year ended September 30, 2007
| ESCO | Less: Filters | Add: Doble | Pro Forma | ESCO | ||||||||||||||||
| (In thousands, except per share data) | Historical | Business (1) | Historical (2) | Adjs | Pro Forma | |||||||||||||||
| Net Sales | $ | 527,537 | (82,833 | ) | 79,502 | 524,206 | ||||||||||||||
| Cost and Expenses: | ||||||||||||||||||||
| Cost of sales | 349,891 | (67,295 | ) | 28,601 | 311,197 | |||||||||||||||
| SG&A | 122,502 | (10,892 | ) | 28,332 | (915 | ) (3) | 139,027 | |||||||||||||
| Amortization of intangible assets | 10,705 | (462 | ) | 0 | 3,459 | (4) | 13,702 | |||||||||||||
| Interest expense (income) | (744 | ) | 145 | (528 | ) | 12,100 | (5) | 10,973 | ||||||||||||
| Other expenses, (income) net | 2,455 | 360 | (1,271 | ) | 1,544 | |||||||||||||||
| Total costs and expenses | 484,809 | (78,144 | ) | 55,134 | 14,644 | 476,443 | ||||||||||||||
| Earnings before income taxes | 42,728 | (4,689 | ) | 24,368 | (14,644 | ) | 47,763 | |||||||||||||
| Income taxes | 9,015 | (1,382 | ) | 8,099 | (5,442 | ) (6) | 10,290 | |||||||||||||
| Net earnings | $ | 33,713 | (3,307 | ) | 16,269 | (9,202 | ) | 37,473 | ||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 1.30 | $ | 1.45 | ||||||||||||||||
| Diluted | $ | 1.28 | $ | 1.42 | ||||||||||||||||
| Average common shares outstanding: | ||||||||||||||||||||
| Basic | 25,865 | 25,865 | ||||||||||||||||||
| Diluted | 26,387 | 26,387 | ||||||||||||||||||
Footnotes to Exhibit 99.4: Unaudited Pro Forma Consolidated Statement of Operations for the year ended September 30, 2007 (Dollars in thousands)
| (1) | Excludes the Filtertek business which was sold on November 25, 2007 and reflected as a discontinued operation effective in the three months ended December 31, 2007. | ||
| (2) | Includes the results of operations of Doble for its fourth fiscal quarter ended December 31, 2006 and its first three fiscal quarters of fiscal year 2007. | ||
| (3) | To adjust Doble’s historical selling, general and administrative expenses to exclude $915 of non-recurring transaction related expenses. | ||
| (4) | To record amortization expense of $3,459 for the estimated identifiable intangible assets from the acquisition of Doble by the Registrant. The preliminary estimated identifiable intangible assets and their related estimated useful lives are as follows: |
| Estimated | ||||||||
| Useful Life | ||||||||
| (Dollars in thousands) | Fair Value | (in years) | ||||||
| Identifiable intangible assets: | ||||||||
| Trade names | $ | 75,720 | indefinite | |||||
| Customer relationships | 54,210 | 20 | ||||||
| Software and databases | 3,740 | 5 | ||||||
| Total identifiable intangible assets | $ | 133,670 | ||||||
| (5) | To record interest expense of $11,500 related to borrowings under the Registrant’s revolving credit facility to finance the acquisition at a weighted average interest rate of 4.6%. The Registrant has an interest rate swap on $175 million of the outstanding debt at 4% plus a spread of 75-100 bps. The remaining outstanding debt is at 3.30% plus a spread of 75-100 bps. Also, includes $600 of amortization of the debt issuance costs in connection with the Registrant’s new credit facility. | ||
| (6) | To record the tax impact of $5,442 of the pro forma adjustments at an effective tax rate of 37.2%. |