EnPro Industries Inc. Reports Operating Results (10-Q)
Enpro Industries Inc. has a market cap of $632.22 million; its shares were traded at around $30.75 with a P/E ratio of 11.31 and P/S ratio of 0.79. NPO is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: We recorded an income tax expense of $25.7 million on pre-tax income from continuing operations of $70.2 million in the second quarter of 2010. During the second quarter of 2009, we recorded an income tax expense of $4.0 million on a loss from continuing operations before income taxes of $102.4 million. The income tax expense in the second quarter of 2009 was significantly impacted by the jurisdictional mix of earnings and losses in addition to a goodwill impairment charge which included amounts which were not deductible for tax purposes.
Net income from continuing operations was $44.5 million, or $2.17 per share, in the second quarter of 2010 compared to a net loss from continuing operations of $106.4 million, or $(5.33) per share, in the same quarter of 2009.
Net income was $45.2 million, or $2.20 per share in the second quarter of 2010 compared to a net loss of $105.7 million, or $(5.30) per share, in the same quarter of 2009. Earnings (loss) per share are expressed on a diluted basis.
Net income from continuing operations was $50.1 million, or $2.44 per share, for the first six months of 2010 compared to a net loss from continuing operations of $105.3 million, or $(5.29) per share, in the same period last year. Net income was $144.2 million, or $7.02 per share during the first six months of 2010 compared to a net loss of $102.5 million, or $(5.15) per share, in the same period last year.
Investing activities from continuing operations generated $144.5 million of cash during the first half of 2010, primarily due to the divestiture of Quincy Compressor partially offset by the deconsolidation of GST effective on the Petition Date, and used $12.9 million during the same period in 2009. We received $182.4 million from the divestiture of Quincy Compressor during the first half of 2010 and there were no divestitures in the comparable period of 2009. We made net payments of $5.2 million to complete acquisitions in the first half of 2009. There were no acquisitions in the comparable period of 2010. Capital expenditures were $3.1 million less in the first half of 2010 than during the same period of 2009. Financing activities in the first six months of 2010 included repayment of $3.5 million of debt which was previously eliminated in consolidation prior to the deconsolidation of GST. In the comparable period of 2009, we retired $9.6 million in industrial revenue bonds.
Until June 8, 2010, the maximum amount available for borrowings under the facility was $75 million. Just prior to the Petition Date, we amended the facility to accommodate GST s debtor-in-possession loan agreement which was entered into on June 8, 2010. The amendment reduced the maximum amount available under the facility to $60 million. Under certain conditions, we may request that the facility be increased by up to $25 million, to $85 million in total. Actual borrowing availability at any date is determined by reference to a borrowing base of specified percentages of eligible accounts receivable and inventory and is reduced by usage of the facility, which includes outstanding letters of credit, and any reserves. The actual borrowing availability at June 30, 2010 under our senior secured revolving credit facility was $55.9 million after giving consideration to $4.1 million of letters of credit outstanding.
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