EnPro Industries(US:NPO)2024-02-27 17:30Financial Performance - Total third-party sales for the year ended December 31, 2023, were $1,059.3 million, with the semiconductor market contributing the largest share at $363.5 million, representing 34.3% of total sales[34]. - The company reported a total adjusted segment EBITDA reconciliation for the years ended December 31, 2023, 2022, and 2021, indicating ongoing financial performance tracking[257]. - The company has $299.3 million outstanding on the Amended Credit Agreement as of December 31, 2023, with a variable interest rate that adjusts at least quarterly[260]. - The company has fixed rate debt obligations totaling $350.9 million as of December 31, 2023, with an average interest rate of 5.7%[259]. Sales and Market Reach - The Sealing Technologies segment generated approximately two-thirds of its total revenue from aftermarket or recurring revenue, indicating strong customer reliance on its products[38]. - As of December 31, 2023, the company had a backlog of orders valued at $225.4 million, down from $310.7 million at the end of 2022, with $110.4 million related to Sealing Technologies and $115.0 million to Advanced Surface Technologies[61]. - Approximately 43% of Sealing Technologies segment sales were delivered to customers outside the United States in 2023, highlighting the company's global reach[46]. - The Advanced Surface Technologies segment's products and solutions accounted for approximately 34% of sales delivered to customers outside the United States in 2023, indicating a significant international presence[55]. - The Sealing Technologies segment serves a variety of markets, including aerospace, food and pharmaceutical, and oil and gas, with general industrial and commercial vehicle markets being significant contributors[34][37]. Research and Development - The company employs scientists, engineers, and technicians to focus on research and development, with a significant portion of spending directed towards semiconductor manufacturing equipment solutions[60]. - The Advanced Surface Technologies segment includes four operating businesses, each specializing in high-growth markets and demanding applications, such as semiconductor manufacturing and life sciences[50]. Quality and Compliance - The company maintains stringent quality control standards, with 31 manufacturing and service facilities ISO 9000 certified as of December 31, 2023[63]. - The company aims to align with ISO 45001 at major manufacturing locations in 2024 to enhance safety culture and programs[70]. Competition and Differentiation - The Sealing Technologies segment differentiates itself from competitors through product performance, reliability, and customer service, with major competitors including A.W. Chesterton Company and Parker Hannifin Corporation[47]. Workforce and Diversity - As of December 31, 2023, the company had approximately 3,500 employees, with 66% in North America, 12% in Europe, and 22% in Asia Pacific[67]. - The company’s gender and ethnic/racial diversity, including senior management, is 47% diverse, reflecting its commitment to a diverse and inclusive environment[73]. - The company has implemented a new performance management and development process in 2023, emphasizing manager engagement and employee ownership[69]. - The company has a company-wide minimum wage of $15 per hour in the United States, along with a comprehensive benefits program[71]. Community Engagement - The company has contributed $1.75 million to the Enpro Foundation since its formation in 2020, with $690,000 in donations focused on charitable organizations nominated by employees[75]. Foreign Exchange and Hedging - The notional amount of foreign exchange contracts hedging foreign currency transactions was $110.5 million as of December 31, 2023, compared to $103.3 million in 2022[261].