(Exact name of Registrant, as specified in its charter) |
(State or other jurisdiction | (Commission file number) | (I.R.S. Employer | ||||||||||||
of incorporation) | Identification No.) |
(Address of principal executive offices, including zip code) |
Not Applicable | ||
(Former name or address, if changed since last report) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
(d) | Exhibits |
Press Release of EnPro Industries, Inc. dated October 31, 2023 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ENPRO INDUSTRIES, INC. | |||||||||||
By: | /s/ Robert S. McLean | ||||||||||
Robert S. McLean | |||||||||||
Executive Vice President, General Counsel and Secretary |
Quarters Ended September 30, | |||||||||||
2023 | 2022 | Change | |||||||||
Net Sales | $ | 250.7 | $ | 280.1 | (10.5) | % | |||||
Income from Continuing Operations Attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.2 | (68.3) | % | |||||
Diluted Earnings Per Share from Continuing Operations Attributable to EnPro Industries, Inc. | $ | 0.39 | $ | 1.26 | (69.0) | % | |||||
Adjusted Net Income from Continuing Operations Attributable to EnPro Industries, Inc.* | $ | 33.1 | $ | 39.4 | (16.0) | % | |||||
Adjusted Diluted Earnings Per Share from Continuing Operations* | $ | 1.58 | $ | 1.89 | (16.4) | % | |||||
Adjusted EBITDA* | $ | 57.7 | $ | 71.3 | (19.1) | % | |||||
Adjusted EBITDA Margin* | 23.0 | % | 25.5 | % |
Quarters Ended September 30, | |||||||||||
(Dollars in millions) | 2023 | 2022 | Change | ||||||||
Sales | $161.4 | $157.9 | 2.2% | ||||||||
Adjusted Segment EBITDA | $48.0 | $39.7 | 20.9% | ||||||||
Adjusted Segment EBITDA Margin | 29.7% | 25.1% |
Quarters Ended September 30, | |||||||||||
(Dollars in millions) | 2023 | 2022 | Change | ||||||||
Sales | $89.4 | $122.5 | (27.0)% | ||||||||
Adjusted Segment EBITDA | $19.0 | $39.9 | (52.4)% | ||||||||
Adjusted Segment EBITDA Margin | 21.3% | 32.6% |
Investor Contacts: | Milt Childress | |||||||
Executive Vice President and Chief Financial Officer | ||||||||
James Gentile | ||||||||
Vice President, Investor Relations | ||||||||
EnPro Industries, Inc. | ||||||||
Phone: | 704-731-1527 | 5605 Carnegie Boulevard | ||||||
Charlotte, North Carolina, 28209 | ||||||||
Email: | investor.relations@enproindustries.com | www.enproindustries.com |
EnPro Industries, Inc. | |||||||||||||||||
Consolidated Statements of Operations (Unaudited) | |||||||||||||||||
For the Quarters and Nine Months Ended September 30, 2023 and 2022 | |||||||||||||||||
(In Millions, Except Per Share Data) | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net sales | $ | 250.7 | $ | 280.1 | $ | 810.2 | $ | 827.3 | |||||||||
Cost of sales | 151.1 | 169.3 | 479.7 | 509.5 | |||||||||||||
Gross profit | 99.6 | 110.8 | 330.5 | 317.8 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative | 65.6 | 65.8 | 210.3 | 205.1 | |||||||||||||
Goodwill impairment | — | — | 60.8 | — | |||||||||||||
Other | 2.1 | 0.1 | 3.1 | 2.3 | |||||||||||||
Total operating expenses | 67.7 | 65.9 | 274.2 | 207.4 | |||||||||||||
Operating income | 31.9 | 44.9 | 56.3 | 110.4 | |||||||||||||
Interest expense | (10.8) | (9.4) | (34.9) | (24.2) | |||||||||||||
Interest income | 3.7 | 0.1 | 11.3 | 0.3 | |||||||||||||
Other income (expense) | (1.9) | 0.3 | (4.3) | (1.7) | |||||||||||||
Income from continuing operations before income taxes | 22.9 | 35.9 | 28.4 | 84.8 | |||||||||||||
Income tax expense | (14.7) | (9.1) | (17.0) | (19.8) | |||||||||||||
Income from continuing operations | 8.2 | 26.8 | 11.4 | 65.0 | |||||||||||||
Income from discontinued operations, including gain on sale, net of tax | — | 0.7 | 11.4 | 13.9 | |||||||||||||
Net income | 8.2 | 27.5 | 22.8 | 78.9 | |||||||||||||
Less: net income (loss) attributable to redeemable non-controlling interest | (0.1) | 0.6 | (4.3) | 0.8 | |||||||||||||
Net income attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.9 | $ | 27.1 | $ | 78.1 | |||||||||
Income attributable to EnPro Industries, Inc. common shareholders: | |||||||||||||||||
Income from continuing operations, net of tax | $ | 8.3 | $ | 26.2 | $ | 15.7 | $ | 64.2 | |||||||||
Income from discontinued operations, including gain on sale, net of tax | — | 0.7 | 11.4 | 13.9 | |||||||||||||
Net income attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.9 | $ | 27.1 | $ | 78.1 | |||||||||
Basic earnings per share attributable to EnPro Industries, Inc.: | |||||||||||||||||
Continuing operations | $ | 0.40 | $ | 1.26 | $ | 0.75 | $ | 3.09 | |||||||||
Discontinued operations | — | 0.03 | 0.55 | 0.67 | |||||||||||||
Basic earnings per share | $ | 0.40 | $ | 1.29 | $ | 1.30 | $ | 3.76 | |||||||||
Average common shares outstanding | 20.9 | 20.8 | 20.9 | 20.8 | |||||||||||||
Diluted earnings per share attributable to EnPro Industries, Inc.: | |||||||||||||||||
Continuing Operations | $ | 0.39 | $ | 1.26 | $ | 0.75 | $ | 3.08 | |||||||||
Discontinued operations | — | 0.03 | 0.54 | 0.66 | |||||||||||||
Diluted earnings per share | $ | 0.39 | $ | 1.29 | $ | 1.29 | $ | 3.74 | |||||||||
Average common shares outstanding | 21.0 | 20.9 | 21.0 | 20.9 |
EnPro Industries, Inc. | ||||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||||
For the Nine Months Ended September 30, 2023 and 2022 | ||||||||
(In Millions) | ||||||||
2023 | 2022 | |||||||
Operating activities of continuing operations | ||||||||
Net income | $ | 22.8 | $ | 78.9 | ||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||||||||
Income from discontinued operations, net of taxes | (11.4) | (13.9) | ||||||
Taxes related to sale of discontinued operations | (3.3) | — | ||||||
Depreciation | 18.4 | 19.4 | ||||||
Amortization | 52.7 | 58.5 | ||||||
Goodwill impairment | 60.8 | — | ||||||
Deferred income taxes | (1.6) | (1.9) | ||||||
Stock-based compensation | 7.9 | 4.6 | ||||||
Other non-cash adjustments | 3.9 | 4.9 | ||||||
Change in assets and liabilities, net of effects of divestitures of businesses: | ||||||||
Accounts receivable, net | 16.9 | (17.0) | ||||||
Inventories | 5.4 | (19.2) | ||||||
Accounts payable | (9.6) | 2.7 | ||||||
Other current assets and liabilities | 2.7 | (13.2) | ||||||
Other non-current assets and liabilities | (10.8) | 7.8 | ||||||
Net cash provided by operating activities of continuing operations | 154.8 | 111.6 | ||||||
Investing activities of continuing operations | ||||||||
Purchases of property, plant and equipment | (20.7) | (10.2) | ||||||
Proceeds from sale of businesses | 25.7 | 0.6 | ||||||
Receipts from settlements of derivative contracts | — | 27.4 | ||||||
Purchase of short-term investments | (35.8) | — | ||||||
Redemption of short-term investments | 35.0 | — | ||||||
Other | 0.5 | 2.9 | ||||||
Net cash provided by investing activities of continuing operations | 4.7 | 20.7 | ||||||
Financing activities of continuing operations | ||||||||
Proceeds from debt | — | 60.5 | ||||||
Repayments of debt | (143.1) | (304.2) | ||||||
Dividends paid | (18.3) | (17.6) | ||||||
Other | (1.4) | (7.8) | ||||||
Net cash used in financing activities of continuing operations | (162.8) | (269.1) | ||||||
Cash flows of discontinued operations | ||||||||
Operating cash flows | (0.6) | 8.8 | ||||||
Investing cash flows | — | (4.3) | ||||||
Net cash provided by (used in) discontinued operations | (0.6) | 4.5 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (0.7) | (39.6) | ||||||
Net decrease in cash and cash equivalents | (4.6) | (171.9) | ||||||
Cash and cash equivalents at beginning of period | 334.4 | 338.1 | ||||||
Cash and cash equivalents at end of period | $ | 329.8 | $ | 166.2 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 29.2 | $ | 15.8 | ||||
Income taxes, net of refunds | $ | 10.8 | $ | 35.8 |
EnPro Industries, Inc. | ||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||
As of September 30, 2023 and December 31, 2022 | ||||||||
(In Millions) | ||||||||
September 30, | December 31, | |||||||
2023 | 2022 | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 329.8 | $ | 334.4 | ||||
Accounts receivable, net | 119.5 | 137.1 | ||||||
Inventories | 145.9 | 151.9 | ||||||
Prepaid expenses and other current assets | 41.3 | 44.9 | ||||||
Current assets of discontinued operation | — | 15.9 | ||||||
Total current assets | 636.5 | 684.2 | ||||||
Property, plant and equipment, net | 186.0 | 185.2 | ||||||
Goodwill | 805.2 | 863.8 | ||||||
Other intangible assets | 749.6 | 799.8 | ||||||
Other assets | 124.0 | 114.8 | ||||||
Total assets | $ | 2,501.3 | $ | 2,647.8 | ||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 8.1 | $ | 15.6 | ||||
Accounts payable | 63.6 | 73.4 | ||||||
Accrued expenses | 123.4 | 120.2 | ||||||
Current liabilities of discontinued operation | — | 2.3 | ||||||
Total current liabilities | 195.1 | 211.5 | ||||||
Long-term debt | 640.5 | 775.1 | ||||||
Deferred taxes and non-current income taxes payable | 133.7 | 136.5 | ||||||
Other liabilities | 106.2 | 111.7 | ||||||
Total liabilities | 1,075.5 | 1,234.8 | ||||||
Redeemable non-controlling interests | 17.9 | 17.9 | ||||||
Shareholders’ equity | ||||||||
Common stock | 0.2 | 0.2 | ||||||
Additional paid-in capital | 302.5 | 299.2 | ||||||
Retained earnings | 1,139.0 | 1,130.2 | ||||||
Accumulated other comprehensive loss | (32.6) | (33.3) | ||||||
Common stock held in treasury, at cost | (1.2) | (1.2) | ||||||
Total shareholders’ equity | 1,407.9 | 1,395.1 | ||||||
Total liabilities and equity | $ | 2,501.3 | $ | 2,647.8 |
EnPro Industries, Inc. | |||||||||||||||||
Segment Information (Unaudited) | |||||||||||||||||
For the Quarters and Nine Months Ended September 30, 2023 and 2022 | |||||||||||||||||
(Dollars In Millions) | |||||||||||||||||
Sales | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Sealing Technologies | $ | 161.4 | $ | 157.9 | $ | 511.4 | $ | 467.4 | |||||||||
Advanced Surface Technologies | 89.4 | 122.5 | 299.1 | 360.7 | |||||||||||||
250.8 | 280.4 | 810.5 | 828.1 | ||||||||||||||
Less: intersegment sales | (0.1) | (0.3) | (0.3) | (0.8) | |||||||||||||
$ | 250.7 | $ | 280.1 | $ | 810.2 | $ | 827.3 | ||||||||||
Income from continuing operations attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.2 | $ | 15.7 | $ | 64.2 | |||||||||
Earnings before interest, income taxes, depreciation, | |||||||||||||||||
amortization and other selected items (Adjusted Segment EBITDA) | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Sealing Technologies | $ | 48.0 | $ | 39.7 | $ | 153.9 | $ | 118.1 | |||||||||
Advanced Surface Technologies | 19.0 | 39.9 | 72.6 | 112.6 | |||||||||||||
$ | 67.0 | $ | 79.6 | $ | 226.5 | $ | 230.7 | ||||||||||
Adjusted Segment EBITDA Margin | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Sealing Technologies | 29.7 | % | 25.1 | % | 30.1 | % | 25.3 | % | |||||||||
Advanced Surface Technologies | 21.3 | % | 32.6 | % | 24.3 | % | 31.2 | % | |||||||||
26.7 | % | 28.4 | % | 28.0 | % | 27.9 | % | ||||||||||
Reconciliation of Adjusted Segment EBITDA to Income from Continuing Operations Attributable to EnPro Industries, Inc. | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Income from continuing operations attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.2 | $ | 15.7 | $ | 64.2 | |||||||||
Plus: net income (loss) attributable to redeemable non-controlling interests | (0.1) | 0.6 | (4.3) | 0.8 | |||||||||||||
Income from continuing operations | 8.2 | 26.8 | 11.4 | 65.0 | |||||||||||||
Income tax expense | (14.7) | (9.1) | (17.0) | (19.8) | |||||||||||||
Income from continuing operations before income taxes | 22.9 | 35.9 | 28.4 | 84.8 | |||||||||||||
Acquisition and divestiture expenses | — | — | — | 0.4 | |||||||||||||
Non-controlling interest compensation allocation1 | — | (0.6) | (0.3) | (0.1) | |||||||||||||
Amortization of the fair value adjustment to acquisition date inventory | — | 1.0 | — | 12.3 | |||||||||||||
Restructuring and impairment expense | 2.0 | 0.1 | 2.6 | 1.2 | |||||||||||||
Depreciation and amortization expense | 23.5 | 25.7 | 70.9 | 77.7 | |||||||||||||
Corporate expenses | 9.4 | 9.1 | 35.1 | 31.4 |
Interest expense, net | 7.1 | 9.3 | 23.6 | 23.9 | |||||||||||||
Goodwill impairment | — | — | 60.8 | — | |||||||||||||
Other expense (income), net | 2.1 | (0.9) | 5.4 | (0.9) | |||||||||||||
Adjusted Segment EBITDA | $ | 67.0 | $ | 79.6 | $ | 226.5 | $ | 230.7 |
EnPro Industries, Inc. | |||||||||||
Adjusted Segment EBITDA Reconciling Items by Segment (Unaudited) | |||||||||||
For the Quarters and Nine Months Ended September 30, 2023 and 2022 | |||||||||||
(In Millions) | |||||||||||
Quarter Ended September 30, 2023 | |||||||||||
Sealing Technologies | Advanced Surface Technologies | Total Segments | |||||||||
Restructuring and impairment expense | $ | 1.6 | $ | 0.4 | $ | 2.0 | |||||
Depreciation and amortization expense | $ | 6.2 | $ | 17.3 | $ | 23.5 |
Quarter Ended September 30, 2022 | |||||||||||
Sealing Technologies | Advanced Surface Technologies | Total Segments | |||||||||
Non-controlling interest compensation allocation1 | $ | — | $ | (0.6) | $ | (0.6) | |||||
Amortization of the fair value adjustment to acquisition date inventory | $ | — | $ | 1.0 | $ | 1.0 | |||||
Restructuring and impairment expense | $ | 0.1 | $ | — | $ | 0.1 | |||||
Depreciation and amortization expense | $ | 6.3 | $ | 19.4 | $ | 25.7 |
Nine Months Ended September 30, 2023 | |||||||||||
Sealing Technologies | Advanced Surface Technologies | Total Segments | |||||||||
Non-controlling interest compensation allocation1 | $ | — | $ | (0.3) | $ | (0.3) | |||||
Restructuring and impairment expense | $ | 1.7 | $ | 0.9 | $ | 2.6 | |||||
Depreciation and amortization expense | $ | 18.9 | $ | 52.0 | $ | 70.9 |
Nine Months Ended September 30, 2022 | |||||||||||
Sealing Technologies | Advanced Surface Technologies | Total Segments | |||||||||
Acquisition and divestiture expenses | $ | — | $ | 0.4 | $ | 0.4 | |||||
Non-controlling interest compensation allocation1 | $ | — | $ | (0.1) | $ | (0.1) | |||||
Amortization of the fair value adjustment to acquisition date inventory | $ | — | $ | 12.3 | $ | 12.3 | |||||
Restructuring and impairment expense | $ | 0.6 | $ | 0.6 | $ | 1.2 | |||||
Depreciation and amortization expense | $ | 19.9 | $ | 57.8 | $ | 77.7 |
EnPro Industries, Inc. | ||||||||||||||||||||||||||
Reconciliation of Income from Continuing Operations Before Income Taxes to Adjusted Income from Continuing Operations Attributable to EnPro Industries, Inc. and Adjusted Diluted Earnings Per Share (Unaudited) | ||||||||||||||||||||||||||
For the Quarters and Nine Months Ended September 30, 2023 and 2022 | ||||||||||||||||||||||||||
(In Millions, Except Per Share Data) | ||||||||||||||||||||||||||
Quarters Ended September 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
$ | Average common shares outstanding, diluted | Per Share | $ | Average common shares outstanding, diluted | Per Share | |||||||||||||||||||||
Income from continuing operations attributable to EnPro Industries, Inc. | $ | 8.3 | 21.0 | $ | 0.39 | $ | 26.2 | 20.9 | $ | 1.26 | ||||||||||||||||
Net income (loss) attributable to redeemable non-controlling interests | (0.1) | 0.6 | ||||||||||||||||||||||||
Income tax expense | 14.7 | 9.1 | ||||||||||||||||||||||||
Income from continuing operations before income taxes | 22.9 | 35.9 | ||||||||||||||||||||||||
Adjustments from selling, general, and administrative: | ||||||||||||||||||||||||||
Non-controlling interest compensation allocations1 | — | (0.6) | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 17.1 | 18.7 | ||||||||||||||||||||||||
Adjustments from other operating expense and cost of sales: | ||||||||||||||||||||||||||
Restructuring and impairment expense | 2.2 | 0.1 | ||||||||||||||||||||||||
Amortization of the fair value adjustment to acquisition date inventory | — | 0.9 | ||||||||||||||||||||||||
Adjustments from other non-operating expense: | ||||||||||||||||||||||||||
Environmental reserve adjustments | 0.4 | 0.1 | ||||||||||||||||||||||||
Costs associated with previously disposed businesses | 0.4 | 0.2 | ||||||||||||||||||||||||
Pension expense (income) (non-service cost) | 0.4 | (0.7) | ||||||||||||||||||||||||
Foreign exchange losses related to the divestiture of a discontinued operation2 | 0.5 | — | ||||||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||
Other | 0.2 | 0.2 | ||||||||||||||||||||||||
Adjusted income from continuing operations before income taxes | 44.1 | 54.8 | ||||||||||||||||||||||||
Adjusted income tax expense | (11.1) | (14.8) | ||||||||||||||||||||||||
Net loss (income) attributable to redeemable non-controlling interests | 0.1 | (0.6) | ||||||||||||||||||||||||
Adjusted income from continuing operations attributable to EnPro Industries, Inc. | $ | 33.1 | 21.0 | $ | 1.58 | 3 | $ | 39.4 | 20.9 | $1.89 | 3 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
$ | Average common shares outstanding, diluted | Per Share | $ | Average common shares outstanding, diluted | Per Share | |||||||||||||||||||||
Income from continuing operations attributable to EnPro Industries, Inc. | $ | 15.7 | 21.0 | $ | 0.75 | $ | 64.2 | 20.9 | $ | 3.08 | ||||||||||||||||
Net income (loss) attributable to redeemable non-controlling interests | (4.3) | 0.8 | ||||||||||||||||||||||||
Income tax expense | 17.0 | 19.8 | ||||||||||||||||||||||||
Income from continuing operations before income taxes | 28.4 | 84.8 | ||||||||||||||||||||||||
Adjustments from selling, general, and administrative: | ||||||||||||||||||||||||||
Acquisition and divestiture expenses | 0.1 | 1.0 | ||||||||||||||||||||||||
Non-controlling interest compensation allocations1 | (0.3) | (0.2) | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 51.5 | 56.3 | ||||||||||||||||||||||||
Adjustments from other operating expense and cost of sales: | ||||||||||||||||||||||||||
Restructuring and impairment expense | 3.2 | 2.2 | ||||||||||||||||||||||||
Amortization of the fair value adjustment to acquisition date inventory | — | 12.1 | ||||||||||||||||||||||||
Adjustments from other non-operating expense: | ||||||||||||||||||||||||||
Asbestos receivable adjustment | — | 2.8 | ||||||||||||||||||||||||
Environmental reserve adjustments | 0.5 | (0.2) | ||||||||||||||||||||||||
Costs associated with previously disposed businesses | 0.8 | 0.8 | ||||||||||||||||||||||||
Pension expense (income) (non-service cost) | 1.1 | (2.1) | ||||||||||||||||||||||||
Goodwill impairment | 56.6 | — | ||||||||||||||||||||||||
Foreign exchange losses related to the divestiture of a discontinued operation2 | 1.5 | — | ||||||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||
Other | 0.3 | 0.6 | ||||||||||||||||||||||||
Adjusted income from continuing operations before income taxes | 143.7 | 158.1 | ||||||||||||||||||||||||
Adjusted income tax expense | (35.9) | (42.7) | ||||||||||||||||||||||||
Net loss (income) attributable to redeemable non-controlling interests | 4.3 | (0.8) | ||||||||||||||||||||||||
Adjusted income from continuing operations attributable to EnPro Industries, Inc. | $ | 112.1 | 21.0 | $ | 5.35 | 3 | $ | 114.6 | 20.9 | $ | 5.49 | 3 |
EnPro Industries, Inc. | |||||||||||||||||
Reconciliation of Income from Continuing Operations Attributable to EnPro Industries, Inc. to Adjusted EBITDA (Unaudited) | |||||||||||||||||
For the Quarters and Nine Months Ended September 30, 2023 and 2022 | |||||||||||||||||
(In Millions) | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Income from continuing operations attributable to EnPro Industries, Inc. | $ | 8.3 | $ | 26.2 | $ | 15.7 | $ | 64.2 | |||||||||
Net income (loss) attributable to redeemable non-controlling interests | (0.1) | 0.6 | (4.3) | 0.8 | |||||||||||||
Income from continuing operations | 8.2 | 26.8 | 11.4 | 65.0 | |||||||||||||
Adjustments to arrive at earnings before interest, income taxes, depreciation, amortization, and other selected items (Adjusted EBITDA): | |||||||||||||||||
Interest expense, net | 7.1 | 9.3 | 23.6 | 23.9 | |||||||||||||
Income tax expense | 14.7 | 9.1 | 17.0 | 19.8 | |||||||||||||
Depreciation and amortization expense | 23.6 | 25.7 | 71.1 | 77.9 | |||||||||||||
Restructuring and impairment expense | 2.2 | 0.1 | 3.2 | 2.2 | |||||||||||||
Environmental reserve adjustments | 0.4 | 0.1 | 0.5 | (0.2) | |||||||||||||
Costs associated with previously disposed businesses | 0.4 | 0.2 | 0.8 | 0.8 | |||||||||||||
Acquisition and divestiture expenses | — | — | 0.1 | 1.0 | |||||||||||||
Pension expense (income) (non-service cost) | 0.4 | (0.7) | 1.1 | (2.1) | |||||||||||||
Non-controlling interest compensation allocation1 | — | (0.6) | (0.3) | (0.1) | |||||||||||||
Asbestos receivable adjustment | — | — | — | 2.8 | |||||||||||||
Amortization of the fair value adjustment to acquisition date inventory | — | 1.0 | — | 12.3 | |||||||||||||
Foreign exchange losses related to the divestiture of a discontinued operation2 | 0.5 | — | 1.5 | — | |||||||||||||
Goodwill impairment | — | — | 60.8 | — | |||||||||||||
Other | 0.2 | 0.3 | 0.3 | 0.6 | |||||||||||||
Adjusted EBITDA | $ | 57.7 | $ | 71.3 | $ | 191.1 | $ | 203.9 |
EnPro Industries, Inc. | |||||
Reconciliation of Free Cash Flow (Unaudited) | |||||
(In Millions) | |||||
Free Cash Flow - Nine Months Ended September 30, 2023 | |||||
Net cash provided by operating activities of continuing operations | $ | 154.8 | |||
Purchases of property, plant, and equipment | (20.7) | ||||
Free cash flow | $ | 134.1 | |||
Free Cash Flow - Nine Months Ended September 30, 2022 | |||||
Net cash provided by operating activities of continuing operations | $ | 111.6 | |||
Purchases of property, plant, and equipment | (10.2) | ||||
Free cash flow | $ | 101.4 |
Document and Entity Information |
Oct. 31, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 31, 2023 |
Entity Registrant Name | ENPRO INDUSTRIES, INC. |
Entity Central Index Key | 0001164863 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NC |
Entity File Number | 001-31225 |
Entity Tax Identification Number | 01-0573945 |
Entity Address, Address Line One | 5605 Carnegie Boulevard, Suite 500 |
Entity Address, City or Town | Charlotte |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 28209 |
City Area Code | 704 |
Local Phone Number | 731-1500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, $0.01 par value |
Trading Symbol | NPO |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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