EnPro Industries, Inc. (NYSE:NPO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 08:00 am ET

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EnPro Industries, Inc. (NYSE:NPO) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the EnPro Industries Third Quarter 2019 Earnings Conference Call. At this time, all participants will be in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Chris O'Neal, Senior Vice President, Investor Relations, Strategy and Corporate Development. Please go ahead, Chris.

Executive
Chris O'Neal

Thanks, Kevin. Good morning, everyone, and welcome to EnPro Industries' quarterly earnings conference call. I remind you that our call is also being webcast at enproindustries.com where you can find the slides that accompany the call. Marvin Riley, our CEO and Milt Childress, our CFO, will begin their review of our third quarter performance and our outlook in a moment.

But before we begin our discussion, let me point out that we will be making statements on this call that are not historical facts and that are considered forward-looking in nature. These statements involve a number of risks and uncertainties that are described in more detail in our filings with the SEC, including our most recent Form 10-K and Form 10-Q. We do not undertake to update any of these forward-looking statements. Also, during the call, we will reference a number of non-GAAP financial measures. Tables reconciling these measures to the comparable GAAP measures are included in the appendix to the presentation materials.

With regard to guidance that we will share in this call, we have limited visibility into long-term demand as most of our businesses have relatively short order-to-shipment cycles and typical order backlogs range from a handful of days to a couple of months. Power systems is the exception to this.

Additionally, many of our products serve niche applications for which demand has not correlated well with macro end market indicators. This further complicates accurate forecasting. Our guidance excludes changes in the number of shares outstanding; impacts from future acquisitions, divestitures and related transaction costs; restructuring cost; the impact of tariffs and trade tensions and market demand and costs subsequent to the end of the third quarter; the impact of foreign exchange rate changes subsequent to the end of the third quarter; and environmental and legacy litigation charges.

And now, I'll turn the call over to Marvin.

Executive
Marvin Riley

Thanks, Chris, and good morning, everyone. Before I share my remarks on our third quarter results, I want to provide an update on my transition to the CEO role and a few of my thoughts on our strategy moving forward. Having completed my first quarter as CEO, I have been spending my time out on the road speaking with our employees, investors and customers. I've also been spending time with each business to understand how we can improve our customer intimacy, operational efficiencies and competitiveness in each market we serve.

Additionally, during the quarter, I was able to spend time with the leaders of LeanTeq and Aseptic, the two businesses acquired during the quarter. They and their teams are extremely excited about the development of their