NPO - Earnings call transcript Q1 2022

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Operator

Hello and welcome to the EnPro first quarter 2022 earnings call and webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star, zero on your telephone keypad.

As a reminder, this conference is being recorded. pleasure President the of my James over now Vice Gentile, Investor is to call turn to It Relations. Please go ahead, James.

James Gentile

Executive and and earnings me Eric and will the presentation Thank Financial first today at enproindustries.com, call is Kevin, good accompanies Milt Chief can Welcome webcast Executive Vice everyone. Officer. Chief you find you to is quarter President being XXXX President you this conference Vaillancourt, remind I that Childress, our where call. and Officer, that our morning EnPro’s call. With

rates our uncertainties, Before and geopolitical general note on our the this we are my the a and pandemic to during foreign appendix future changes not as excludes are obligation impacts friendly and economy, we in this related we call, COVID-XX quarter, further of from described financial market over presentation from nature. variables It other inflation, the are Please measures that during end responses including is to not costs, litigation differing governmental spread forward-looking impact other and from the environmental and reminder the the and in of related on to will full turn and involve number that forward-looking outstanding, to reconciling that statements. considered tensions sanctions we XX-K. measures. as included Eric. interest making in of Also assumptions pleasure statements are their first impacts the begin today’s statements from call that in conflict discussion, will number quarter, costs, impact These be the do changes with costs and GAAP to well which and call in and historical the materials. transaction facts a demand, first Form increases forward-looking in the on numbers year non-GAAP Tables including undertake dispositions including these uncertainties to risks impacts incremental this Ukraine, Eric? We outlined reference a recent measures providing these filings comparable any SEC, guidance update will of call, the that from most trade exchange to charges. in acquisitions, rate guidance, restructuring of of the or subsequent the subsequent impacts be shares variants, risks

Eric Vaillancourt

XXXX. company. joining provide James, Thanks financial for update us morning anniversary strategic marks an independent as XXXX public we of XXth a Thank and good as for and everyone. you our quarter first today our

Over foundation EnPro the last sustainable two decades, dedication built the and thanks work for a have we strong creation. value to and the growth hard team, of

flow enhanced key of expand growth As the and acquisitions markets, selectively EnPro cash all excited our will more stakeholders. have pursue far drive criteria. am been enable and we charge in models forward, proud I to strategic investments, future organic our of come I for continue and never fit that we of have our to us financial our how end and

highlights. first Now onto quarter our

technologies in global as we results work, significant hard for despite pressures, and and significant I uncertainty geographical the from am our our advanced strong under macroeconomic as resilience the our particularly produced are customers execution first flexibility realizing already team technological surface and benefits excited commercial their I stakeholders. our resulting arising all continue platform. NxEdge to our acquisition agile advantages like of across teams’ Our challenging combining the of entire of our would circumstances to deliver about to and opportunities quarter thank headwinds. inflationary we

strategic the is demonstrating and Our and teams fit. solid are cultural combination closely coordinating

material challenging and services environment, quarter, sales our of for supply, Amid a growth we organic XX.X% to processes, costs, in and particularly sealing team collaborate operations costs company. our materials broad strong exposed with duty to labor secure our and with demand environment in offset truck pricing freight across pursue in chain, engineered results on actions continue segment and the improve also rising the delivered heavy our technologies segment. to supply and products commercial continues market the the That For automotive markets based. line present to headwinds, top inflationary largely

improvement. persist these we and to year opportunities headwinds conditions and mitigate with continuous these end expect least pricing, to to explore operational We through continue sourcing, at

Our our profitability to portfolio enterprise the entire and of optimization close with elevated execute purpose colleagues and has our creation objectives the strategy empowered on collaboration. has value

largely of EBITDA XX.X% to adjusted first its and points expanded year-over-year basis quarter, XX.X%. XXX reporting contributions million from increased quarter margin to adjusted first Our due $XX.X full NxEdge in EBITDA would milestone for our I company. EBITDA this quarterly has in history that the our our time out tremendous which is first that margin XX%, to like XX-year point marks exceeded adjusted a

margin. a portfolio. we a This achievement more have model our at is XX% the EBITDA stronger, short of in resilience the testament to Just and steps year we ago profitable time focused to taken adjusted operating a finished XXXX, create the

EBITDA robust science-related and XXXX EBITDA XX% full year. the of reiterating perspective, cash that Our on remain for focused a exposure. we From adjusted are high margin, aftermarket businesses north and guidance we margins flow growth sales with niche, strategic material adjusted today strong implies

by our leadership in into market-leading lean are that higher opportunities. as profitable markets supported most tailwinds we We are secular positions growth developing

balance We through Milt quarter process long flow deeper the margins investment and and call capital disciplined to cash outlook our results continue for initiatives is now maximizing of diversity, It and on allocation, preserve to first to while the increase commitment XXXX. transparency. a dive into pleasure to my returns for hand over and improvement shareholder return time-tested leverage sustainability term our our and to

Milt Childress

Thanks Eric and good morning everyone.

delays. earnings quarter inflationary and in aerospace, the in general Ukraine $XX.X sales adjusted XXX of semiconductor, Eric As points strategic were the gas, from approximately $XXX.X first XXXX and rising margin in growth, raw an had increased the of million offset ago, the partially initiatives due million variability expenses. the even largely by and initiatives labor, chain first drove first sales first quarter our a compared petrochemical persisted NxEdge heavy customer supply acquisition as Positive inflationary globally. stated, as another experienced good of from prior segment of XX.X% year’s and, duty contribution acquisition the corporate quarter and geopolitical offset recent solid pricing driven Adjusted increased completed we XXXX. expense lagged. accruals. to in headwinds, and and on as offset to of well the by well truck, Adjusted organically. related truck and market and issues duty year higher quarter growth markets, basis in engineered year-over-year, macroeconomic forces inflationary divestiture freight demand as diluted lag increased $XX.X oil addition to of XXXX. and million share the momentum by sales aggressive quarter incentive XX.X% supply from and year-over-year increase activities as quarter period, by offset increasing leverage costs XX.X% NxEdge in our interest driven chain uncertainty increased as Reported pharma, drove as Eric XX.X%, primarily the as industrial, heavy $XX.X the of year restructuring in we $X.XX delivered EBITDA and mentioned, Operating of lower due the where partially food driven forces of period, largely NxEdge, partially automotive expenses reduction million well these by compensation price divestitures residing per of the by XX.X% materials organic of over Corporate in to automotive in a last in material continued EBITDA compared divestitures charges, by markets primarily Despite sales the net costs, year incurred prior of impact

X.X%, sealing the a $XXX.X last discussion pharma, divestiture general sales duty by of demand to technology components heavy and of by in increased performance, polymer truck, offset of business food and driven strong the industrial Moving the year. impact markets, aerospace, of partially segment completed million

XX.X%. businesses translation, Excluding of foreign sales exchange increased the divested impact organic and

materials EBITDA $XX.X to contracted basis quarter, million essentially raw business. These year in leverage increases. pressures offset heavy cost were For to by truck EBITDA due and adjusted partially particularly segment labor costs, duty XXX freight primarily operating the on our higher pressures increased inflationary compared first and price the from margin was prior and XX.X% of period. segment strong Adjusted to flat points volume

divestitures foreign the to exchange impact and X.X% translation, Excluding the increased of year segment prior compared EBITDA period. adjusted

than quarter of in sales to million NxEdge more driven from advanced $XXX.X strong demand technologies, and by now continued market. the contributions doubled, semiconductor first surface Turning

impact of year increased sales foreign period. and the the translation, NxEdge XX.X% prior the versus acquisition exchange Excluding

and acquisition $XX.X EBITDA more segment For driven the the growth. first than organic quarter, primarily million, by NxEdge to doubled sales adjusted strong

optical segment due impact expenses the semiconductor the and expansion investments applications translation, in to increased foreign supporting Excluding States of in and X.X% Taiwan. exchange NxEdge United adjusted advanced and capacity decreased filter operating growth the of both supporting EBITDA development

addition, were node we strong we semiconductor advanced semiconductor-related with and price primarily future. applications to that into various work continue large focused will businesses In Qualification product demand in ongoing adjustments. impacted increases ahead and results our see mix by wage are foreseeable on of customers the is optimistic

partially CPI prior very technologies. market, by and by chain-related for engineered of We year, decreased divestiture and demand XX.X% encouraged quarter affecting sales surface first aerospace, advanced offset X.X%. industrial, increased the and in by million $XX in are primarily automotive the the stronger markets. outlook the to oil industry-wide materials, quarter the for constraints gas general Organic sales supply In compared production driven

prior First divestiture. quarter over primarily the by decreased EBITDA driven CPI adjusted year period segment XX% the

compared prior reflecting excess Excluding foreign automotive divestiture headwinds wage the decreased in the the pricing freight year particularly and initiatives, EBITDA in and translation, costs, market. X% material impact raw period, of of adjusted exchange the to

year we further tax available With total cash March $XXX statement $XX bring onshore in revolving our efficient had cash we facility. of flow, we under an jurisdictions. balance At million first and expect efforts from to million quarter $XXX sheet Turning billion to $XXX In the in finished underway, million debt end. XX, million. our and credit with cash borrowing by foreign repatriated repatriation quarter, additional $X.XXX for the we of

up remains higher sheet first the healthy initiatives. balance cash months financial XXXX the by million, working primarily $XX debt. Our year strategic in reduce ample $XX was and growth profits, free cash driven expenditures. million on growth management, have for flow to our flexibility operating investments to Free plan use the flow We excess improvement to three and of from capital we execute capital lower prior and in fund

$X.XX first the year. prior During paid million, three quarterly share months first and representing totaled we the increase payments a year, of dividend versus per $X.X quarter, dividend for X.X% the the a

billion, implying $X.XX and expectation guidance, for million, continue EBITDA range adjusted the XX% of the our between growth to reiterating the adjusted we EBITDA Based for this XXXX we million weighted to revenue are expect fairly over we digit second in $XXX north outlook, of full to be Turning year. of adjusted double of to XXXX reported EBITDA evenly for half half $XXX margins the our low sales first year. and current expect on

to agile as We prior macroeconomic from expectation assumptions due in to adjusted reflect order operational range are $X.XX modestly dynamic interest into will currently our and the environment. quarter remains improvements and remain to impacts per costs the of earnings increased pricing, projected to year strong share and sourcing with Underlying demand progresses. $X.XX the a the acceleration trends guidance inflationary our diluted to for we second interest rates revising mitigate of above

the Eric by for some Now ESG on closing call followed to our initiatives, comments. I’ll update an turn back

Eric Vaillancourt

Milt. you Thank

management. development with usage framework: working to and and continue culture in share personal work and greenhouse enterprise-wide a safety, reflected by ways growth our values suppliers. Stewardship our end; diversity to We five our and three risk year and increased that communities, daily embraces bottom a water and ESG and comprehensive ESG calculating cycle foster ago committed integrate are We build topics more These and efforts including three, diversity, strong excellence our we our line and am create engage on and two, is further sustains into management efforts colleagues. timeless and our for both related training a EnPro’s towards to customers, approach; In a by integrate our future established XXXX, are practices as climate energy, key and waste profitable enterprise-level values and of shareholders action a initiatives our ourselves four, and ESG our of and inclusion; dual I champion many support years to gas of safety, manufacturing facilities governance considerations that one, baseline empowers product pleased sustainable environmental, respect. for underpinned together our life focused on culture ESG our into social collecting professional organization plan, the core our five, communication; communities objectives and teammates. further our

are initiatives and supported multi-year as framework monitored directors by multi-faceted, ESG our is the Our board implemented. of

We of initiatives our a XXXX expect all you on to conditions. to footing basis. regular start as on macroeconomic challenging solid navigate on report progress these We teams

returns industrial technology and in our leading across recurring revenue and into opportunities businesses we are company. XXth an building continue with in tailwinds, businesses, our critical and that customers anniversary safeguarding and the we solid company, company, a will our lean we while products environments enjoy technological as transformation each to invest upon cash of our foundation strong portfolio best our secular our public our As for growth flow strong of streams, as compelling independent differentiation, continue services

benefits sustained of future the and your open have to come our actions today, our EnPro economic you is of and at Thank the am cultural time reshaping all far bright. for questions. how I’ll I and line With the differentiation, we portfolio future. The for incredibly and excited proud

Operator

Our Markets. first is today question coming Jeff Capital Hammond Keybanc from instructions] [Operator from

Your line is now live.

Jeff Hammond

good Hey, morning guys.

Eric Vaillancourt

Jeff. morning Good

Jeff Hammond

Just a first EBITDA revenue guide. the sounds into trying and momentum what’s sense holding XQ. business has in back better like like continued a to seems or quarter, It start, on strong very certainly raise get

Milt Childress

off relative little a year, start. faster a good Hey year’s the the quarter so to Jeff, we into to did coming expectations have first

our seeing We’re not globally, to about you’re feel thinking. on globally we year, We more also, we earnings. reduced so we’ll develops. our the though things early first We are, U.S. concerns year outlook the have the with it’s our feel reading like same better think that quarter. a GDP from how occasions, coming the couple balance we our a being global of we’ll strong some like call had months even adjusting That’s know - in economy in three the really the the just a growth be from talking on we’re economy when now little a of little guidance QX for seeing down

Jeff Hammond

better just pricing into of On just year. tech, comes I if to with to--I and get trying some for about this truck you’re about for Okay. margin transitory so how sealing margins talked you the wanted hold through you dynamic know price, as a all-in I’m tech getting that sequentially and XQ sense thinking of cadence think for sealing flat

Eric Vaillancourt

Eric, that I think is will sealing. in The challenge X. flat It’s a just improve hold effect price margins March maybe took implemented and even May year the increase X we Jeff. do throughout

filter the we’ll it middle through and in continue XX-day backlog and before towards a July. that we about to on have that the the start end to of backlog towards more you May start to as somewhere and work increase, well see price so We - so will build quarter to have second realize start of

momentum and expect throughout finish where flat even We to year I price will we of in were. ahead the slightly this or see

Milt Childress

into that through so We’ll to this would as come to also we’re expecting have year. mark travel costs say XX% picks the company overall that Jeff, up, some company most continue I our as around hover EBITDA a of margins back

Jeff Hammond

were looks for the year, added like wondering expansion. it you you semi year little run looks lower those around NxEdge, like the one and maybe investments a for the base. margins if the Alluxa the AFT, then and bit if rate back just through just last it Okay, prior on had out continue than some I’m

Milt Childress

contraction, have factors. some attributable margin several right, if exclude you’re really Jeff Yes, it was to - we NxEdge, and did you

some a filter in are it capacity In the product are growth, that that We in we saw only thing, good investing it’s associated news one [indiscernible] story. we for segment. with There in investing semiconductors. so optical are board the costs, but across not so that’s saw development, the operating costs and really business, new growth,

that and I earnings the United beneficial growth all the expect to call ongoing States we Then expense big to momentum a the pick the we well, in which margins to that it. in ramp of which have in for we team. we the three that that positive a and impact the we’re a part new the as advance up full news speed are continue investments making so to the nanometer know, well, some ramp-up going it’s but as Taiwan We we’re by would there there’s to what prepare here up coming years, - year is launch, will progresses, way in good ongoing That’s get growth we’re growth story the a on expect have segment. for also up confident and new there’s continuing building, you very in of about adding capacity as

bit. product are year We have mix, segment, of some did pressures the segment. the that sealing of we but though pressures in some the pricing more cost in did initiatives, margins overall Now, the affected We and cost evident for some cost even mix very the the future pressures, we’re some had a AST. balance ahead about positive have engineered

Jeff Hammond

guys. Thanks great. Okay,

Milt Childress

in year-over-year Oh, little bit was a very QX a last thing specifically strong there. you It we so one see of at if kind that we LeanTeq, I year, would high of quarter. had there’s other comp look of water mention, a mark a

places too. in the You see company it other in a couple

last had saw that’s theme low, because sharply a rebounded quarter little of pandemic bit year You very from quarter. quarter compared engineered a this a so we to first strong the it automotive in last too as

Operator

you. Thank

Ferazani Steve from Sidoti. from coming is question next Our

Your line is now live.

Steve Ferazani

really I I noted weakness was get a after sense you a sense automotive, than this supply the headwinds are on so little one economic very demand, it area Milt, that and a about that’s Morning impacting just headwinds, just you at the to but any but seeing of strong kind to quarter, a bit even get think anecdotally, I’m everyone. want point? is economic talked side customers you are from trying demand

Eric Vaillancourt

some much are same a At and economy is think, still doing, our that be few remain backlogs to leading time, slowing. our there dropped, last time, that’s or at are short XX% could really The the indicator truck usually drop, answer the the things XX% starting spot about that At strong. as of so look we they’ve I rates same are weeks, optimistic you what businesses. in if indicators as

Milt Childress

an saw last I U.S. that just as dropped now Yes, to this I weekend. just forecast example, the XXXX the for GDP for saw for X.X% has -

from indicators Now, sources, board affecting it’s first fact that the economic our indicators, of had hold all us, guidance to it’s that’s despite just the the across the decision spot global but rates, a that not the more quarter. good we are

Steve Ferazani

a get Completely at I are wanted it, to not understandable, sense the sounds answer point and this you just actually like if seeing yet.

Milt Childress

continue are bit By team, company now. with watching and things team favorable We with our so. our see and that, the commercial a way, backlogs the good we generally are watch order our and watching to but time right them at of as will strong spend we’re patterns indicators, supply chain

Steve Ferazani

would or quarter. to shareholders do the what capex expecting really year flow, be pipeline point One, was capex your M&A this still for out returning you I another guidance low projected you what free what’s strong pretty consider and cash there? on also see based question on healthy cash given you’re would at for then a Then year, this guess

Milt Childress

that the in not U.S. on in year. with the early to made may for point are chip in especially We’ll X.X% would we was with year good than the Capital to certain that forward the labor stick that of production this more time, guidance provide Yes, investment chalk up does and X% support out, of and on-shoring planned make full and questions. quarter, and we’ve expected the in that spending those that we investments we’d for year, QX, to At as COVID it projects progresses. are challenging as capital previously, move have we spending to the that said lower being include

there In good growth have we’ll is for be predictable that we flow have But cash have think we equal year. we’ll year flow and adjusted some spending cash net perhaps to disclosed income a those progresses, I as we’ve year what River, we outflow will some with cash that support be of that, resolution two to on - if as free we environmental so the expect Passaic you cash more cash to versus previously we exclude companies terms to had would other expect portfolio that in year the than mentioned, and talk semi flow, that environmental the matters be the likely full capital the the about as I yes, a so to favorable, could progresses. free for matters, today U.S. It’s to few expect so more the free that’s the that situation of we bring year, outside years with and about various progression outside flow ago. specifically that our and items,

Steve Ferazani

thanks. Great,

Milt Childress

some is and In terms ongoing cash, that use right down want want of also now investment. our focus we of for capital, leverage to use then our paying reduce to our capital of We debt. that the

have have year. the the strategic use year progresses, expectation that we inorganic primary so could primary--our We some for organic to growth and our are opportunities cash investments as that’s this support of

Steve Ferazani

Great. appreciate all Milt, Thanks color. the Eric,

Milt Childress

Steve. Thanks

Operator

you. Thank

one that’s in star, be reminder, to a placed queue. the question As

question Oppenheimer. Ian Zaffino is next Our coming from from

is now line Your open.

Ian Zaffino

able to wanted into backlog, new of backlog the Are Great, re-price and as price Thanks. the a is or take to just as bumping orders? thank you any, just more. you into touch go action you most maybe pricing on bit elasticity, pricing, the say, let’s back far upon and are you. little also the environment I

Eric Vaillancourt

they make It’s pricing they I are sure more demand have on what elasticity general. The actions around don’t into get think in we’re are supportive. customers to going want order. and they bumping and through

take for time, if at re-price limiting able for we really we’re backlog; of can’t the I’m that it example, they XX runway not so XX-day days’ do question. we that a customers sure, aren’t I what your--I’m advantage really notice in average of not We that so the buy an longer that missed sure, it, than limit exists, same give do does to period limiting limit it, we’re we part regard. the so usage to complete

Ian Zaffino

No, thank that expense the debt little it was maybe versus us sensitivity floating? how what’s question, the Milt, thanks. rate that but you as it I and broke helpful, was you. and on far interest a fixed increases now as stack, as for Then the out again, just is interest again increases, relates much remind know bit, to

Milt Childress

in the than and as could what XX economy do point the is know a of fixed, we this it’s Yes, we we’re May model, were we that economy happens a but we’ll the essence the of certainty the depending XX expectations the model think less roughly so increases in ago, markets, point assumption, Fed adjust decides--I the prepared rate point a we if one our that basis affect slows expect--we’ve three given doesn’t on XX our almost end improvements--increases, and roughly interest as our adjusted and I quarter earlier where be see adjustments assumption XX% them year, four our in we and the floating, from have then in We’ve changed have--we we’ll noted just more. year, remarks. basis XX% have all in but basis essentially really and at it so increase to that, Ian, on now

Ian Zaffino

Great, thank you much. very

Milt Childress

Ian. Thanks

Operator

you. Thank

question Justin is from next coming Our from Gabelli Bergner Funds.

Your line is now live.

Justin Bergner

Milt, morning James. good Eric, morning Good morning good

Eric Vaillancourt

morning. Good

Milt Childress

Justin. hey Yes,

Justin Bergner

the start drivers relates Nice question general My the the outlook. first year. to to of

your guide investments in release this guide, of outlook and material to that EBITDA you’re it maybe terms slightly with today. surface presentation of sharing adjusted plan? there’s or sort the Is your kept in the surface to same, slightly has was always noting revenue better you’re but in You adjusted within that least technologies, in press your advanced safe assume investment more advanced at then which technologies, higher unchanged a expenses EBITDA envisioned but associated be the stayed specifics

Milt Childress

would our it expenses there, thinking guidance, more it’s the growth our additional think there but yes, latest question our good on will bit the it’s on true some some three Justin, months had fluid quarter throughout there we know say into of now account more bit yes, specificity on that because thing always expenses have guidance than wherever did moving, adjusting. think we will describe The how outlook way incorporated it’s to I our ago. ago take investments. that year some are develop Yes, into quarter did the investments same are than We it’s end with it, our best a would baked a always clarity just baking I year. ago into a a safe and growth it’s for a we that the into guidance not for on are quarter impact, be next the - have do we so we I we up little those little

Justin Bergner

I helpful. capacity mainly guess this them expect phenomenon, semiconductor that’s outside year U.S. advanced some expansion, next growth to the a of mean, Are expect XXXX you would great, to--I or in you Okay year? the growth surface of technologies investments would continue these investments into

Milt Childress

I Well, one if the describe so we’re always that what’s to the that, bit the semiconductor exclude it investing would given way ahead just going describe always that. are there’s It think element some be to so of where be would so little a growth, we’ll big I expecting in in of way more industry, one it. growth U.S. we be you is you I big happening - is that’s currently significant the hit the happens in segment, the the

Justin Bergner

know, costs, you stand Okay, the you freight? of great. today to where cost the last over That’s three how - How three cost labor headwinds and major months? different would components the Switching view relative inflationary helpful. materials, associated with evolved has of describe back we the maybe those headwinds

Milt Childress

QX where really from going the jump not just we we’re in and bit Eric fine, Last covering invite then I I’ll year, add had and was you and increases challenging, we’re a became walk-through we first wage more half still increases. then quarter, the give overall I’ll increases than continued the were--it freight we in. because QX significant and of increase Well, were experience only more the to effects seeing more to little costs would cost during of but good challenge little last were then year. in I’m year, we this material seeing say context a

what’s adjusted Ukraine, that on in up, in going those one affect not why is will look a China reasons economy, mentioned last the this year. Now bit continue we earlier. with and at pressures I what’s think of kind and of of to happening little and a which we being it’s guidance, the ports locked That’s as the year the trends likely have back

Eric Vaillancourt

- next the so heavy things have the up other caught our don’t we as Think about than truck June heavy crazy we price up market, we on and implemented now and of duty market, way In it and general go I in this again July X. another in March did truck for in rest businesses I duty the it we’ve the increases again January X we’re announced quarter. X, caught think as think long

in effect The it’s is were often of and not and there not efficient there other have so chain. as to a Things aren’t bit bit little inefficiency, inefficiency around large things able available, piled just you’re you little smaller happening to supply runs like that’s not that’s price. you’re and that, plant before, a the more is a as thing just due is as so more really or moving that’s

improve capture will as well. that supply chain trying that We’re improves, as to -

Justin Bergner

color. EBITDA corporate it’s is to of if suggest One rate. expenses run of I being helpful called trying last sure clarity Then you suggest trying a wasn’t in but up, expenses, question, so divestiture any you’re very corporate restructuring just your you that’s part and there? I expense out mentioned Great, a run not not in new you or were hire new and to this that’s that sort and thought rate adjusted the calculations, hire description, acquisition

Milt Childress

expenses, it’s report good goes total when M&A that report, a that and can the because question GAAP--you that specific the is into about did number, is expenses, resulted we’re the it increase when take about that that some we talk create we all I’ll the year-over-year confusion. and EBITDA. Yes, first some question clear, correct know, expenses for Corporate out last so talking adjusted expenses, exclude portion and corporate corporate Justin? adjusted for not Is that we we in But purpose.

Justin Bergner

that clear. Yes, is

Milt Childress

but bit purposes say a the margin, Once again, some EBITDA, made excluded that structure about resulted sense adjusted that talking some corporate the - we restructuring Then right. on there. charge included stranded restructuring reduced would in charge for so overall some opportunity as of did activity, all to level expenses charges with our had in costs cost from some overall the bit at and divestiture restructuring a our from we cited CPI, and Okay, headcount well, of it’s particularly corporate conjunction but of I as the we adjust an that it’s expenses. have--we is

Justin Bergner

you. thank Great,

Operator

Thank you.

further reached our and over have floor comments. session. the any back closing question We of to like or I’d answer James for to the turn end

James Gentile

for your day. this and of morning rest Thank have time great you a your

Operator

That and webcast. you. today’s Thank does conclude teleconference

may We your wonderful at day. and today. your You time a this participation line thank have for you disconnect

EnPro Industries (NPO) 2 May 222022 Q1 Earnings call transcript