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Dec 31, 2019

Enpro Q4 2019 Earnings Report

Enpro Industries reported results for Q4 2019

Key Takeaways

Enpro Industries reported a decrease in sales by 1.4% to $286.5 million, but an increase in segment profit by 145.2% to $28.2 million for the quarter. Adjusted EBITDA increased 27.7% to $43.3 million. The company completed the divestiture of its Fairbanks Morse division and provided 2020 guidance.

Sales decreased 1.4% to $286.5 million for the quarter.

Segment profit increased 145.2% to $28.2 million for the quarter.

Adjusted EBITDA increased 27.7% to $43.3 million for the quarter.

Adjusted diluted earnings per share from continuing operations increased 54% to $0.57 for the quarter.

Total Revenue
$287M
Previous year: $381M
-24.9%
EPS
$0.57
Previous year: $0.98
-41.8%
Adjusted EBITDA
$43.3M
Adjusted EBITDA Margin
15.1%
Segment Margin
9.8%
Gross Profit
$98.1M
Previous year: $114M
-13.9%
Cash and Equivalents
$121M
Previous year: $130M
-6.5%
Total Assets
$2.04B
Previous year: $1.72B
+18.6%

Enpro

Enpro

Enpro Revenue by Segment

Forward Guidance

EnPro Industries expects current trends to continue through the first half of the year in most markets and continued weakness in the heavy-duty truck market. Adjusted EBITDA for 2020 is expected to be between $180 million and $190 million, with 18-20% occurring in the first quarter, and 2020 adjusted diluted earnings per share from continuing operations to be between $2.82 and $3.14.

Positive Outlook

  • Cost reductions across EnPro
  • Increased earnings in semiconductor businesses
  • Increased earnings in food and pharma businesses
  • Adjusted EBITDA for 2020 is expected to be between $180 million and $190 million
  • 2020 adjusted diluted earnings per share from continuing operations to be between $2.82 and $3.14

Challenges Ahead

  • Current trends continue through the first half of the year in most markets
  • Continued weakness throughout the year in the heavy-duty truck market.
  • Anticipated impact of the Coronavirus
  • Full-year guidance excludes changes in the number of shares outstanding
  • Full-year guidance excludes impacts from future acquisitions, dispositions and related transaction costs, restructuring costs, incremental impacts of tariffs and trade tensions on market demand and costs

Revenue & Expenses

Visualization of income flow from segment revenue to net income