EnPro Industries, Inc. (NPO) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.90 million, or $ 0.14 a share in the quarter, against a net profit of $6.60 million, or $0.30 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.30 million, or $0.15 a share compared with $9.60 million or $0.43 a share, a year ago. Revenue during the quarter dropped 10.87 percent to $286.90 million from $321.90 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 31.58 percent. Total expenses were 95.36 percent of quarterly revenues, up from 93.29 percent for the same period last year. That has resulted in a contraction of 207 basis points in operating margin to 4.64 percent.
Operating income for the quarter was $13.30 million, compared with $21.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $28.80 million compared with $32.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 4 basis points in the quarter to 10.04 percent from 10 percent in the last year period.
"Despite the market headwinds that continue to be quite challenging, I am very much energized about EnPro’s future", said Steve Macadam, EnPro Industries president and chief executive officer. "Over the past year, we have taken a variety of actions to resolve our asbestos burden, strengthen our core business and create new growth opportunities. In the fourth quarter, we completed several major milestones in our plan to finalize the ACRP, and we remain on track for the confirmation and ultimate consummation of the joint plan of reorganization filed pursuant to the consensual comprehensive settlement announced on March 17, 2016. Assuming receipt of necessary court approvals, we expect consummation and the reconsolidation of GST into EnPro to occur in the third quarter of this year. Our efforts to reduce costs and exit underperforming businesses have resulted in a leaner and more agile organization, and our ongoing investments in innovation are showing promise in many of our businesses.
Operating cash flow drops significantlyEnPro Industries, Inc. has generated cash of $64.50 million from operating activities during the year, down 25.43 percent or $22 million, when compared with the last year. The company has spent $61.40 million cash to meet investing activities during the year as against cash outgo of $86.50 million in the last year.
Cash flow from financing activities was $22 million for the year as against cash outgo of $85.20 million in the last year period.
Cash and cash equivalents stood at $111.50 million as on Dec. 31, 2016, up 7.83 percent or $8.10 million from $103.40 million on Dec. 31, 2015.
Working capital declines
EnPro Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $221.90 million as at Dec. 31, 2016, down 7.23 percent or $17.30 million from $239.20 million on Dec. 31, 2015. Current ratio was at 1.73 as on Dec. 31, 2016, down from 1.86 on Dec. 31, 2015.
Debt moves up
EnPro Industries, Inc. has witnessed an increase in total debt over the last one year. It stood at $451.20 million as on Dec. 31, 2016, up 18.55 percent or $70.60 million from $380.60 million on Dec. 31, 2015. Total debt was 29.18 percent of total assets as on Dec. 31, 2016, compared with 25.31 percent on Dec. 31, 2015. Debt to equity ratio was at 1.26 as on Dec. 31, 2016, up from 0.83 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.94 for the quarter from 1.57 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
