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Sep 30, 2021

Enpro Q3 2021 Earnings Report

Enpro reported strong third quarter results driven by continued momentum in Sealing Technologies and Advanced Surface Technologies segments.

Key Takeaways

Enpro Industries reported a 5.5% increase in sales to $283.1 million, with organic sales up 15.8%. Adjusted EBITDA increased by 22% to $51.5 million, resulting in an adjusted EBITDA margin of 18.2%. Diluted earnings per share from continuing operations were $1.33, while adjusted diluted earnings per share increased by 39% to $1.40.

Sales increased 5.5% to $283.1 million; organic sales increased 15.8%.

Adjusted EBITDA increased 22% to $51.5 million; adjusted EBITDA margin increased 250 bps to 18.2%.

Diluted earnings per share from continuing operations was $1.33, compared to a diluted loss per share of $1.05.

Adjusted diluted earnings per share increased 39% to $1.40 versus $1.01.

Total Revenue
$283M
Previous year: $268M
+5.5%
EPS
$1.4
Previous year: $0.67
+109.0%
Adjusted EBITDA
$51.5M
Previous year: $42.1M
+22.3%
Adjusted EBITDA Margin
18.2%
Previous year: 15.7%
+15.9%
Gross Profit
$110M
Previous year: $94.5M
+15.9%
Cash and Equivalents
$330M
Previous year: $441M
-25.2%
Total Assets
$2.15B
Previous year: $2.02B
+6.4%

Enpro

Enpro

Enpro Revenue by Segment

Forward Guidance

The company now expects 2021 sales to be in the range of $1.085 billion to $1.120 billion, adjusted EBITDA to be in the range of $202 million to $208 million, and adjusted diluted earnings per share from continuing operations to be in the range of $5.35 to $5.55.

Positive Outlook

  • Sales expected to be in the range of $1.085 billion to $1.120 billion.
  • Adjusted EBITDA expected to be in the range of $202 million to $208 million.
  • Adjusted diluted earnings per share from continuing operations expected to be in the range of $5.35 to $5.55.
  • Amortization of Acquisition-Related Intangible Assets: $44 – $46 million
  • Net Interest Expense: $13 – $15 million

Challenges Ahead

  • Depreciation and Other Amortization: $28 – $30 million
  • Normalized Tax Rate: 30%
  • Full-year guidance excludes changes in the number of shares outstanding
  • Full-year guidance excludes impacts from future and pending acquisitions, dispositions and related transaction costs
  • Full-year guidance excludes pending or potential labor disputes

Revenue & Expenses

Visualization of income flow from segment revenue to net income