Enpro Investor Presentation November 2023
Consolidated Adjusted Net Income
(In Millions, Except Per Share Data)
2023
Quarters Ended September 30,
(In Millions, Except Per Share Data)
2022
Average
Average
common
shares
$
outstanding,
diluted
Per
Share
$
common
shared
outstanding,
diluted
Per
Share
Income from continuing operations attributable to EnPro
Industries, Inc.
Net income (loss) from redeemable non-controlling
interests
Income tax expense
$ 8.3
21.0
$ 0.39
$ 26.2
20.9
$ 1.26
(0.1)
0.6
14.7
9.1
Income from continuing operations before income taxes
Adjustments from selling, general, and administrative:
22.9
35.9
Non-controlling interest compensation allocations¹
Amortization of acquisition-related intangible assets
Adjustments from other operating expense and cost of sales:
Restructuring and impairment expense
(0.6)
17.1
18.7
2.2
0.1
Income from continuing operations attributable to EnPro Industries, Inc.
Net income (loss) from redeemable non-controlling interests
Income tax expense
Income from continuing operations before income taxes
Adjustments from selling, general, and administrative:
Acquisition and divestiture expenses
Non-controlling interest compensation allocations¹
Amortization of acquisition-related intangible assets
Adjustments from other operating expense and cost of sales:
2023
Average
$
common
shares
outstanding,
diluted
Per
Share
$
common
shared
outstanding,
diluted
Per
Share
$ 15.7
21.0
$ 0.75
$ 64.2
20.9
$ 3.08
(4.3)
0.8
17.0
19.8
28.4
84.8
ENPRO
Nine Months Ended September 30,
2022
Average
0.1
1.0
(0.3)
(0.2)
51.5
56.3
Amortization of the fair value adjustment to acquisition date
inventory
Restructuring and impairment expense
3.2
2.2
0.9
Adjustments from other non-operating expense:
Amortization of the fair value adjustment to acquisition date inventory
Adjustments from other non-operating expense:
12.1
Environmental reserve adjustment
0.4
0.1
Asbestos receivable adjustment
2.8
Costs associated with previously disposed businesses
0.4
0.2
Environmental reserve adjustment
0.5
Pension income (non-service cost)
0.4
(0.7)
Costs associated with previously disposed businesses
0.8
Foreign exchange losses related to the divestiture of a
discontinued operation²
Pension income (non-service cost)
1.1
0.5
Goodwill impairment
56.6
Other adjustments:
Other
0.2
Adjusted income from continuing operations before income
Adjusted income tax expense
44.1
0.2
54.8
Foreign exchange losses related to the divestiture of a discontinued
operation²
1.5
།ྱསྐྱེ། |
(0.2)
0.8
(2.1)
Other adjustments:
Net loss (income) from redeemable non-controlling interests
Adjusted income from continuing operations
(11.1)
0.1
(14.8)
(0.6)
Other
0.3
0.6
3
3
$ 33.1
21.0
$ 1.58
$ 39.4
20.9
$ 1.89
Adjusted income from continuing operations before income taxes
Adjusted income tax expense
143.7
158.1
(35.9)
(42.7)
Net loss (income) from redeemable non-controlling interests
Adjusted income from continuing operations
4.3
(0.8)
3
$112.1
21.0
$ 5.35
$114.6
20.9
3
$ 5.49
Management of the Company believes that it would be helpful to the readers of the financial statements to understand the impact of certain selected items on the Company's reported income from continuing operations attributable to EnPro Industries, Inc., net of tax and
diluted earnings per share from continuing operations attributable to EnPro Industries, Inc., including items that may recur from time to time. The items adjusted for in this schedule are those that are excluded by management in budgeting or projecting for performance in
future periods, as they typically relate to events specific to the period in which they occur. This presentation enables readers to better compare EnPro Industries, Inc. to other diversified industrial manufacturing companies that do not incur the sporadic impact of restructuring
activities, costs associated with previously disposed of businesses, acquisitions and divestitures, or other selected items. 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% and 27.0% for 2023 and 2022, respectively. 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 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.
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 was denominated in a foreign currency. As a result of this note, we recorded a loss
due to the change in exchange rate in 2023. In January 2023, we hedged the outstanding notes in order to mitigate related gains or losses.
3 Adjusted diluted earnings per share.
ENPRO
Enpro Investor Presentation November 2023
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