Enpro Investor Presentation November 2023
Segment Information (1/2)
ENPRO
For the Quarters and Nine Months Ended September 30, 2023 and 2022
(In Millions)
Sales
Reconciliation of Adjusted Segment EBITDA to Income from Continuing Operations Attributable to EnPro Industries, Inc.
Nine Months Ended
Quarters Ended
September 30,
September 30,
Quarters Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Income from continuing operations attributable to EnPro Industries, Inc.
8.3
26.2
15.7
64.2
2023
2022
2023
2022
Sealing Technologies
Advanced Surface Technologies
Less: intersegment sales
$161.4
$ 157.9
$ 511.4
$ 467.4
Plus: net income (loss) attributable to redeeming non-controlling interests
Income from continuing operations
(0.1)
0.6
(4.3)
0.8
8.2
26.8
11.4
65.0
89.4
122.5
299.1
360.7
Income tax expense
$
(14.7) $
(9.1)
$
(17.0) $
(19.8)
250.8
280.4
810.5
828.1
Income from continuing operations before income taxes
22.9
35.9
28.4
84.8
(0.1)
(0.3)
(0.3)
(0.8)
Acquisition and divestiture expense
0.4
$ 250.7
$ 280.1
$ 810.2
$ 827.3
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
Income from continuing operations attributable to EnPro
Industries, Inc.
Restructuring and impairment expense
2.0
0.1
2.6
1.2
$ 8.3
$ 26.2
$ 15.7
$ 64.2
Depreciation and amortization expense
23.5
25.7
70.9
77.7
Corporate expenses
9.4
9.1
35.1
31.4
Earnings before interest, income taxes, depreciation,
Interest expense, net
7.1
9.3
23.6
23.9
amortization and other selected items (Adjusted Segment EBITDA)
Goodwill impairment
2023
2022
2023
2022
Other income (expense), net
Sealing Technologies
$ 48.0
$ 39.7
$ 153.9
Advanced Surface Technologies
19.0
39.9
72.6
$ 118.1
112.6
Adjusted Segment EBITDA
$ 67.0
$ 79.6
$ 226.5
$ 230.7
60.8
2.1
(0.9)
5.4
(0.9)
$
67.0 $
79.6
$ 226.5 $ 230.7
Adjusted Segment EBITDA Margin
Sealing Technologies
Advanced Surface Technologies
2023
2022
2023
2022
29.7 %
25.1 %
30.1 %
25.3 %
21.3 %
32.6 %
24.3 %
26.7 %
28.4 %
28.0 %
31.2 %
27.9 %
Adjusted Segment EBITDA is total segment revenue reduced by operating expenses and other costs
identifiable with the segment, excluding acquisition and divestiture expenses, restructuring and
impairment expense, non-controlling interest compensation, amortization of the fair value adjustment to
acquisition date inventory, and depreciation and amortization.
Corporate expenses include general corporate administrative costs. Expenses not directly attributable to
the segments, corporate expenses, net interest expense, gains/losses related to the sale of assets, and
income taxes are not included in the computation of Adjusted Segment EBITDA. The accounting policies
of the reportable segments are the same as those for the Company. Adjusted segment EBITDA margin for
a period is calculated by dividing adjusted segment EBITDA for the period by revenue for the period.
1 Non-controlling interest compensation allocation represents compensation expense associated with a
portion of the rollover equity from the acquisitions of LeanTeq and Alluxa that is subject to reduction for
certain types of employment terminations of the LeanTeq and Alluxa sellers and is directly related to the
terms of the respective acquisitions. This expense will continue to be recognized as compensation expense
over the term of the put and call options associated with the acquisitions unless certain employment
terminations have occurred. The LeanTeq non-controlling interests were acquired by Enpro in December
2022. The LeanTeq non-controlling interests were acquired by Enpro in December 2022.
Enpro Investor Presentation November 2023
17
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