Enpro reports solid 30+ percent growth for 2022 sales
Enpro reported 27.8% sales growth for its 2022 fourth quarter and 30.8% higher sales for the 2022 full year.
Highlights of its financial results for the three months and year ended December 31, 2022:
(All results reflect comparisons to the respective prior-year period unless otherwise noted)
- For the quarter, sales of $271.9 million increased 27.8% and organic sales increased 14.8%; for the year, sales of $1.10 billion increased 30.8% and organic sales increased 14.1%
- For the quarter, loss from continuing operations attributable to EnPro Industries, Inc. was $57.5 million, compared to a loss of $1.6 million, driven by a non-cash goodwill impairment charge; for the year, income from continuing operations was $6.7 million, compared to income of $56.9 million
- For the quarter, adjusted EBITDA* increased 39.4% to $53.4 million and adjusted EBITDA margin* increased 160 bps to 19.6%; for the year, adjusted EBITDA* increased 58.5% to $257.4 million and adjusted EBITDA margin* increased 410 bps to 23.4%
- For the quarter, diluted loss per share from continuing operations attributable to EnPro Industries, Inc. was $(2.76), compared to a diluted loss per share of ($0.08), driven by a non-cash goodwill impairment charge; for the year, diluted earnings per share from continuing operations was $0.32, compared to a diluted earnings per share of $2.74
- For the quarter, adjusted diluted earnings per share* increased 48.5% to $1.47 versus $0.99; for the year, adjusted diluted earnings per share* increased 62.2% to $7.04 in 2022 versus $4.34
- Completed the divestiture of GGB for $305 million in November. Subsequent to quarter-end, in late January, the divestiture of GPT closed, completing the divestiture portion of the company's portfolio optimization strategy
- Net leverage ratio of 1.8x entering 2023 provides ample financial flexibility to pursue future organic and inorganic investments
- Introduces guidance for 2023: revenue growth in the flat-to-low single digits, adjusted EBITDA* in the range of $248 million to $260 million, and adjusted diluted earnings per share from continuing operations* of $6.45 to $7.05
"Enpro had an outstanding 2022 driven by our team's continued excellent execution and the resilience of our operating model. Our optimized portfolio delivered strong revenue growth and margin expansion in excess of 400 basis points for the year, as our teams demonstrated agility to deliver for our customers in the face of continued macroeconomic uncertainty," said Eric Vaillancourt, president and CEO. “2022 was a milestone year for Enpro as we completed the divestiture portion of our portfolio reshaping strategy with the exit of the Engineered Materials segment. We are moving forward with a strong foundation of high-margin businesses in secular growth markets that position us for continued profitable growth and value creation."
“We are well positioned to build on the progress achieved in 2022 by continuing to execute on our strategic pillars," he continued. "Our teams are motivated to outperform in a challenging economic environment by focusing on enhancing our portfolio with innovative solutions and investing in long-term growth opportunities to drive profitability. We remain focused on leveraging our strong balance sheet to invest, both organically and inorganically, in high-growth, high-margin areas that build on our robust foundation as we execute on our proven strategic framework to drive the company forward."
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