Enpro Inc

NYSE:NPOUnited States

May 7, 2024

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• Enpro's Q1 Adjusted Earnings, Net Sales Decline, from 8:39AM ET on Tuesday May 07, 2024 by MT Newswires

  8:39AM ET on Tuesday May 07, 2024 by MT Newswires
  Companies Mentioned: NPO
  08:39 AM EDT, 05/07/2024 (MT Newswires) -- Enpro (NPO) reported Q1 adjusted earnings Tuesday of $1.57 per diluted share, compared with $1.95 a year earlier. Three analysts surveyed by Capital IQ expected $1.54. Net sales for the quarter ended March...

• -- Earnings Flash (NPO) ENPRO Reports Q1 Revenue $257.5M, from 6:36AM ET on Tuesday May 07, 2024 by MT Newswires

  6:36AM ET on Tuesday May 07, 2024 by MT Newswires
  Companies Mentioned: NPO
  06:36 AM EDT, 05/07/2024 (MT Newswires) -- ...

• -- Earnings Flash (NPO) ENPRO Posts Q1 EPS $1.57, from 6:36AM ET on Tuesday May 07, 2024 by MT Newswires

  6:36AM ET on Tuesday May 07, 2024 by MT Newswires
  Companies Mentioned: NPO
  06:36 AM EDT, 05/07/2024 (MT Newswires) -- ...

• Enpro Reports First Quarter 2024 Results, from 6:30AM ET on Tuesday May 07, 2024 by Business Wire

  6:30AM ET on Tuesday May 07, 2024 by Business Wire
  Companies Mentioned: NPO

  --(All results reflect comparisons to prior-year period, from continuing operations, unless otherwise noted)

  --(*Non-GAAP measure. See the attached schedules for adjustments and reconciliations of historical measures to GAAP measures)

• Enpro Reports First Quarter 2024 Results, from 6:30AM ET on Tuesday May 07, 2024 by Dow Jones

  6:30AM ET on Tuesday May 07, 2024 by Dow Jones
  Companies Mentioned: NPO
  activities, costs associated with previously disposed of businesses, acquisitions and divestitures, or other selected items. The adjustments in the table above relate solely to expenses attributable to Enpro Inc. and have been adjusted to remove any amounts attributable to non-controlling interests. Management acknowledges that there are many items that impact a company's reported results and this list is not intended to present all items that may have impacted these results. Other adjustments are included in selling, general, and administrative, cost of sales, and other operating expenses on the consolidated statements of operations. The adjusted income tax expense presented above is calculated using a normalized company-wide effective tax rate excluding discrete items of 25.0%. Per share amounts were calculated by dividing by the weighted-average shares of diluted common stock outstanding during the periods. (1) Non-controlling interest compensation allocation represents compensation expense adjustment associated with a portion of the rollover equity from the acquisition of Alluxa that was subject to reduction for certain types of employment terminations of the Alluxa sellers and is directly related to the terms of the acquisition. This expense was recognized as compensation expense over the term of the put and call option associated with the acquisition unless certain employment terminations occurred. The Alluxa non-controlling interests were acquired in February 2024. (2) In connection with the sale of GGB, accounted for as a discontinued operation, in the fourth quarter of 2022, we issued an intercompany note between a domestic and foreign entity that is denominated in a foreign currency. As a result of this note, we have recorded losses due to the changes in the foreign exchange rate. The outstanding note is hedged in order to minimize related gains or losses. (3) We issued a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We will continue to monitor the note regularly and make adjustments to the reserve as needed based on known facts and circumstances. (4) Adjusted diluted earnings per share. Enpro Inc. Reconciliation of Income from Continuing Operations to Adjusted EBITDA (Unaudited) ---------------------------------------------------------------------------- For the Three Months Ended March 31, 2024 and 2023 (In Millions) Three Months Ended March 31, ---------------------- 2024 2023 ------------ -------- Income from continuing operations $ 12.5 $ 26.0 Adjustments to arrive at earnings before interest, income taxes, depreciation, amortization, and other selected items (Adjusted EBITDA): Interest expense, net 8.2 7.9 Income tax expense 1.8 8.1 Depreciation and amortization expense 24.6 23.6 Restructuring expense 0.8 0.8 Environmental reserve adjustments 0.2 0.1 Costs associated with previously disposed businesses 0.3 0.2 Acquisition expenses 3.3 -- Pension expense -- 0.4 Non-controlling interest compensation allocation(1) -- 0.4 Amortization of the fair value adjustment to acquisition date inventory 1.7 -- Foreign exchange losses related to the divestiture of a discontinued operation(2) 0.5 0.7 Long-term promissory note reserve(3) 4.5 -- Other -- 0.4 -------- ------- Adjusted EBITDA $ 58.4 $ 68.6 ======== ======= (1) Non-controlling interest compensation allocation represents compensation expense adjustment associated with a portion of the rollover equity from the acquisition of Alluxa that was subject to reduction for certain types of employment terminations of the Alluxa sellers and is directly related to the terms of the acquisition. This expense was recognized as compensation expense over the term of the put and call option associated with the acquisition unless certain employment terminations occurred. The Alluxa non-controlling interests were acquired in February 2024. (2) In connection with the sale of GGB, accounted for as a discontinued operation, in the fourth quarter of 2022, we issued an intercompany note between a domestic and foreign entity that is denominated in a foreign currency. As a result of this note, we have recorded losses due to the changes in the foreign exchange rate. The outstanding note is hedged in order to minimize related gains or losses. (3) We issued a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected credit losses. We will continue to monitor the note regularly and make adjustments to the reserve as needed based on known facts and circumstances. Supplemental disclosure: Adjusted EBITDA as presented also represents the amount defined as "EBITDA" under the indenture governing the Company's 5.75% Senior Notes due 2026. For the three months ended March 31, 2024, approximately 47% of the adjusted EBITDA as presented above was attributable to Enpro's subsidiaries that do not guarantee the Company's 5.75% Senior Notes due 2026. Enpro Inc. Reconciliation of Free Cash Flow (Unaudited) ---------------------------------------------------------------------------- (In Millions) Free Cash Flow - Three Months Ended March 31, 2024 ---------------------------------------------------------------------------- Net cash provided by operating activities of continuing operations $ 6.3 Purchases of property, plant, and equipment (8.2) ------------------------------------------------------------------ ---- Free cash flow $(1.9) ================================================================== ==== Free Cash Flow - Three Months Ended March 31, 2023 ---------------------------------------------------------------------------- Net cash provided by operating activities of continuing operations $26.4 Purchases of property, plant, and equipment (5.0) ------------------------------------------------------------------ ---- Free cash flow $21.4 ================================================================== ====