- Net sales of $428 million, increased 16% from $370 million in
Q2 2022
- GAAP EPS from continuing operations of $0.57 per diluted share,
an increase of 10% year-over-year
- Adjusted EPS from continuing operations of $0.83, an increase
of 69% year-over-year
- Gross margin from continuing operations improved 190 basis
points year-over-year to 16.4%
- Operating income from continuing operations improved to $19
million from $14 million in Q2 2022; Adjusted operating income from
continuing operations improved 77% to $23 million from $13 million
year-over-year
- EBITDA, as defined, from continuing operations improved 37%
year-over-year to $35.7 million
- 2023 Outlook for Net Sales from continuing operations growth
increased to 10-15% year-over-year
Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its
results for the second quarter of 2023.
Matthew V. Crawford, Chairman, Chief Executive Officer and
President, stated, “Record revenue during the second quarter was
the result of continued strength across almost all our end markets.
Our earnings metrics also show substantial progress resulting from
restructuring achieved in prior periods, ongoing operational
improvements, and improved commercial terms. In the aggregate, we
see demand growth leveling off during the second half of this year,
but still solid as we enjoy strong backlogs in many parts of the
business."
SECOND QUARTER CONSOLIDATED RESULTS FROM
CONTINUING OPERATIONS
In the second quarter of 2023, net sales from continuing
operations were a record $428.1 million compared to $369.8 million
in the 2022 period, an increase of 16%. Gross margin was 16.4%, an
increase of 190 basis points compared to 14.5% in the 2022 second
quarter, driven by profit flow-through from our higher sales
levels, benefits from plant consolidation, and other
profit-improvement actions, including increased product
pricing.
Income from continuing operations attributable to ParkOhio
common shareholders in the second quarter of 2023 was $7.1 million,
or $0.57 per diluted share, compared to $6.4 million, or $0.52 per
diluted share in the second quarter of 2022. Excluding special
items, adjusted EPS from continuing operations was $0.83 per
diluted share in the second quarter of 2023 compared to $0.49 per
diluted share in the 2022 period. EBITDA from continuing operations
totaled $35.7 million in the 2023 second quarter, up 37%
year-over-year. Please refer to the tables that follow for a
reconciliation of income from continuing operations to adjusted
income from continuing operations and a reconciliation of net
income to EBITDA, as defined.
SECOND QUARTER SEGMENT RESULTS FROM CONTINUING
OPERATIONS
In our Supply Technologies segment, net sales in the second
quarter of 2023 were a record $197.3 million, an increase of 12%
compared to $175.8 million in the second quarter a year ago, due to
stronger customer demand in almost all of our key end markets, with
the largest increases in the power sports, heavy-duty truck,
industrial and agricultural equipment and civilian aerospace
markets, as well as the sales from our 2022 acquisition of Southern
Fasteners. Second quarter average daily sales in our supply chain
business were up 11% compared to the same period a year ago. Sales
in our fastener manufacturing business were up 19% year-over-year,
driven by higher customer demand for our proprietary products and
sales from our 2022 acquisition of Charter Automotive. Segment
operating income was $15.4 million in the second quarter of 2023
compared to $12.7 million in the second quarter 2022, an increase
of 21%. Operating income margin was 60 basis points higher in the
2023 second quarter compared to the same quarter a year ago. These
2023 increases were driven by the higher sales volumes and
profit-enhancement actions in this business, which more than offset
certain inflationary supply chain costs. On a sequential basis, net
sales and operating income in the second quarter of 2023 were up 1%
and 10%, respectively, compared to the first quarter of 2023, as a
result of the impact of profit-improvement initiatives.
In Assembly Components, which now excludes the Aluminum Products
business that has been reclassified to discontinued operations for
all periods presented, net sales were a record $112.0 million, up
17% compared to $95.4 million in the 2022 second quarter. Segment
operating income was $8.4 million in the second quarter of 2023
compared to a loss of $1.4 million in the corresponding 2022
quarter. On an adjusted basis, which excludes plant closure and
consolidation and other special costs in both periods, operating
income was $9.6 million in the 2023 period compared to $0.1 million
in the 2022 period. Operating margins were up 900 basis points
year-over-year. The improvement in segment operating results in the
2023 period compared to the same period a year ago was driven by
profit flow-through from the higher sales levels and the benefit of
profit-improvement initiatives implemented over the past two years,
including increased product pricing. On a sequential basis, net
sales, operating income and adjusted operating income in the second
quarter of 2023 were up 1%, 15% and 26%, respectively, compared to
the first quarter of 2023, as a result of the impact of
profit-improvement initiatives.
In Engineered Products, net sales were a near-record $118.8
million in the 2023 second quarter, up 20% compared to $98.6
million in last year's second quarter, driven by strong demand in
both our capital equipment business and our forged and machined
products business. In our capital equipment business, sales were up
27% year-over-year, and new equipment backlog totaled $170 million
at June 30, 2023 compared to $163 million at December 31, 2022, an
increase of 4%. Bookings of new equipment remained strong in the
second quarter and totaled $51 million compared to 2022’s average
quarterly bookings of $50 million. In our forged and machined
products business, second quarter 2023 sales were up 5% compared to
the same quarter a year ago, driven by both higher customer demand
in key end markets, primarily rail and aerospace and defense, and
new business awarded during the past several quarters. Segment
operating income in the 2023 second quarter was $3.2 million,
compared to $7.1 million in the 2022 second quarter. On an adjusted
basis, which excludes primarily plant closure and consolidation,
severance and other restructuring actions, segment operating income
was $6.1 million in the second quarter of 2023 compared to $7.9
million in the 2022 period. During the quarter, operating income in
our capital equipment business was very strong, as we converted our
robust backlog levels into higher sales levels and achieved higher
margins driven by implemented operational improvement initiatives.
The significant profitability improvement in the capital equipment
business was more than offset by operating losses in our forged and
machined products business, which was impacted by equipment
downtime and labor challenges in our two forging plants, which
impacted our segment results during the quarter. On a sequential
basis, net sales in the second quarter were up 1%, and operating
income decreased $1.8 million compared to the first quarter of 2023
due to the operating challenges in our forged and machined products
business and higher restructuring and other special charges in the
2023 second quarter.
Please refer to the tables that follow for a reconciliation of
segment operating income and margins to adjusted segment operating
income and margins.
YEAR-TO-DATE CONSOLIDATED RESULTS FROM
CONTINUING OPERATIONS
In the six months ended June 30, 2023, net sales from continuing
operations were $851.6 million compared to $727.5 million in the
2022 period, an increase of 17%. Gross margin in the six months
ended June 30, 2023 was 16.1%, an increase of 200 basis points
compared to 14.1% in the period in 2022, driven by profit
flow-through from our higher sales levels, benefits from plant
consolidation, and other profit-improvement actions, including
increased product pricing.
Income from continuing operations attributable to ParkOhio
common shareholders in the six months ended June 30, 2023 was $14.6
million, or $1.18 per diluted share, compared to $10.1 million, or
$0.83 per diluted share in the same period in 2022. Excluding
special items, adjusted EPS from continuing operations was $1.55
per diluted share in the six months ended June 30, 2023 compared to
$1.00 per diluted share in the 2022 period. EBITDA from continuing
operations totaled $67.2 million in the six months ended June 30,
2023, up 42% year-over-year. Please refer to the tables that follow
for a reconciliation of income from continuing operations to
adjusted income from continuing operations and a reconciliation of
net income to EBITDA, as defined.
DISCONTINUED OPERATIONS
In the fourth quarter of 2022, we made the decision to exit our
aluminum products business, which is now classified as a
discontinued operation. In December 2022, we entered into a
Memorandum of Understanding pursuant to which a third party would
purchase the business. As we discussed on our 2022 year-end
earnings call, we received a portion of the estimated total
purchase price in December 2022, consisting of $20 million in cash
and a promissory note in the principal amount of $25 million. In
the event a definitive agreement and the sale are not successfully
consummated, the promissory note will be canceled, and we will
repay the $20 million. During the 2023 second quarter, the net loss
from this business totaled $1.7 million. The net book value
classified on our balance sheet as net assets held for sale is
approximately $67 million as of June 30, 2023.
LIQUIDITY AND CASH FLOW
At June 30, 2023, our total liquidity was $169 million, which
included cash on hand of $53 million and $116 million of unused
borrowing availability under our credit arrangements, including $24
million of suppressed availability. During the second quarter of
2023, operating cash flow from continuing operations was $0.7
million, an improvement from a $32.9 million use of cash in the
2022 period, as working capital days continue to improve despite
the strong sales growth in the quarter.
2023 OUTLOOK - CONTINUING OPERATIONS
For 2023, we now expect revenues from continuing operations to
increase 10-15% year-over-year compared to prior revenue growth
guidance of 5-10%, with the increase driven by higher customer
demand and strong capital equipment backlogs. We also continue to
expect improvement in adjusted operating income; EBITDA, as
defined; free cash flow and adjusted EPS in 2023 as a result of
higher sales levels and improved operating margins in each
segment.
CONFERENCE CALL
A conference call reviewing ParkOhio’s second quarter 2023
results will be broadcast live over the Internet on Thursday,
August 3, commencing at 10:00 am Eastern Time. Simply log on to
http://www.pkoh.com. An investor presentation is available on
the Company's website.
ParkOhio is a diversified international company providing
world-class customers with a supply chain management outsourcing
service, capital equipment used on their production lines, and
manufactured components used to assemble their products.
Headquartered in Cleveland, Ohio, ParkOhio operates more than 130
manufacturing sites and supply chain logistics facilities
worldwide, through three reportable segments: Supply Technologies,
Assembly Components and Engineered Products.
This news release contains forward-looking statements, including
statements regarding future performance of the Company, that are
subject to known and unknown risks, uncertainties and other factors
that may cause our actual results, performance and achievements, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These factors that could cause actual
results to differ materially from expectations include, but are not
limited to, the following: our ability to consummate the sale of
our Aluminum Products business for any reason, including the
inability to enter into a definitive purchase agreement; the impact
supply chain issues such as the global semiconductor micro-chip
shortage and logistic issues have on our business, results of
operations, financial position and liquidity; our substantial
indebtedness; the uncertainty of the global economic environment;
general business conditions and competitive factors, including
pricing pressures and product innovation; demand for our products
and services; the impact of labor disturbances affecting our
customers; raw material availability and pricing; fluctuations in
energy costs; component part availability and pricing; changes in
our relationships with customers and suppliers; the financial
condition of our customers, including the impact of any
bankruptcies; our ability to successfully integrate recent and
future acquisitions into existing operations; the amounts and
timing, if any, of purchases of our common stock; changes in
general economic conditions such as inflation rates, interest
rates, tax rates, unemployment rates, higher labor and healthcare
costs, recessions and changing government policies, laws and
regulations, including those related to the current global
uncertainties and crises, such as tariffs and surcharges; adverse
impacts to us, our suppliers and customers from acts of terrorism
or hostilities, including the conflict between Russia and Ukraine,
or political unrest, including the rising tension between China and
the United States; public health issues, including the outbreak of
infectious diseases and any impact on our facilities and operations
and our customers and suppliers; our ability to meet various
covenants, including financial covenants, contained in the
agreements governing our indebtedness; disruptions, uncertainties
or volatility in the credit markets that may limit our access to
capital; potential disruption due to a partial or complete
reconfiguration of the European Union; increasingly stringent
domestic and foreign governmental regulations, including those
affecting the environment or import and export controls and other
trade barriers; inherent uncertainties involved in assessing our
potential liability for environmental remediation-related
activities; the outcome of pending and future litigation and other
claims and disputes with customers; our dependence on the
automotive and heavy-duty truck industries, which are highly
cyclical; the dependence of the automotive industry on consumer
spending; our ability to negotiate contracts with labor unions; our
dependence on key management; our dependence on information
systems; our ability to continue to pay cash dividends, and the
timing and amount of any such dividends; and the other factors we
describe under “Item 1A. Risk Factors” included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022.
Any forward-looking statement speaks only as of the date on which
such statement is made, and we undertake no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by law.
In light of these and other uncertainties, the inclusion of a
forward-looking statement herein should not be regarded as a
representation by us that our plans and objectives will be
achieved. The Company assumes no obligation to update the
information in this release.
Park-Ohio Holdings Corp. and
Subsidiaries
Condensed Consolidated
Statements of Income (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(In millions, except per share
data)
Net sales
$
428.1
$
369.8
$
851.6
$
727.5
Cost of sales
358.0
316.1
714.3
624.9
Selling, general and administrative
expenses
46.8
40.5
92.1
80.7
Restructuring and other special
charges
4.1
2.3
6.6
5.6
Gains on sales of assets
—
(2.9
)
(0.8
)
(2.9
)
Operating income
19.2
13.8
39.4
19.2
Other components of pension income and
other postretirement benefits expense, net
0.6
2.8
1.3
5.6
Interest expense, net
(11.1
)
(7.6
)
(21.8
)
(14.7
)
Income from continuing operations before
income taxes
8.7
9.0
18.9
10.1
Income tax (expense) benefit
(2.1
)
(2.1
)
(4.7
)
0.7
Income from continuing operations
6.6
6.9
14.2
10.8
Loss (income) attributable to
noncontrolling interests
0.5
(0.5
)
0.4
(0.7
)
Income from continuing operations
attributable to Park-Ohio Holdings Corp. common shareholders
7.1
6.4
14.6
10.1
Loss from discontinued operations, net of
tax
(1.7
)
(5.4
)
(3.4
)
(3.0
)
Net income attributable to Park-Ohio
Holdings Corp. common shareholders
$
5.4
$
1.0
$
11.2
$
7.1
Income (loss) per common share
attributable to Park-Ohio Holdings Corp. common shareholders:
Basic:
Continuing operations
$
0.58
$
0.53
$
1.20
$
0.83
Discontinued operations
(0.14
)
(0.45
)
(0.28
)
(0.25
)
Total
$
0.44
$
0.08
$
0.92
$
0.58
Diluted:
Continuing operations
$
0.57
$
0.52
$
1.18
$
0.83
Discontinued operations
(0.14
)
(0.44
)
(0.28
)
(0.25
)
Total
$
0.43
$
0.08
$
0.90
$
0.58
Weighted-average shares used to compute
income (loss) per share:
Basic
12.2
12.1
12.2
12.1
Diluted
12.4
12.2
12.4
12.2
Dividends per common share
$
0.125
$
0.125
$
0.250
$
0.250
Other financial data:
EBITDA, as defined
$
34.1
$
24.9
$
63.9
$
51.6
Park-Ohio Holdings Corp. and
Subsidiaries Supplemental Non-GAAP Financial Measures
(Unaudited)
Adjusted earnings from continuing operations is a non-GAAP
financial measure that the Company is providing in this press
release. Adjusted earnings from continuing operations is income
from continuing operations calculated in accordance with generally
accepted accounting principles ("GAAP"), adjusted for special
items. The Company presents this non-GAAP financial measure because
management uses adjusted earnings from continuing operations to
compare its operating performance on a consistent basis over
multiple periods because they remove the impact of certain
significant noncash credits or charges and certain infrequent items
impacting net income. Adjusted earnings is not a measure of
performance under GAAP and should not be considered in isolation
from, or as a substitute for, income from continuing operations
calculated in accordance with GAAP. Adjusted income from continuing
operations herein may not be comparable to similarly titled
measures of other companies. The following table reconciles income
from continuing operations to adjusted earnings from continuing
operations:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Earnings
Diluted
EPS
Earnings
Diluted
EPS
Earnings
Diluted
EPS
Earnings
Diluted
EPS
(In millions, except for
earnings per share (EPS))
Income from continuing operations
attributable to Park-Ohio Holdings Corp. common shareholders
$
7.1
$
0.57
$
6.4
$
0.52
$
14.6
$
1.18
$
10.1
$
0.83
Adjustments:
Restructuring and other special
charges
2.2
0.19
2.3
0.19
4.6
0.38
5.3
0.43
Severance
1.9
0.15
—
—
1.9
0.15
—
—
Acquisition-related expenses
—
—
—
—
0.1
0.01
0.3
0.03
Gain on sale of assets
—
—
(2.9
)
(0.24
)
(0.8
)
(0.06
)
(2.9
)
(0.24
)
Tax effect of above adjustments
(1.0
)
(0.08
)
0.2
0.02
(1.3
)
(0.11
)
(0.6
)
(0.05
)
Adjusted earnings
$
10.2
$
0.83
$
6.0
$
0.49
$
19.1
$
1.55
$
12.2
$
1.00
The following table shows the impact of these adjustments on our
segment results (continuing operations):
Cost of Sales
SG&A
Total
Cost of Sales
SG&A
Total
(In millions)
Three Months Ended June 30,
2023
Three Months Ended June 30,
2022
Supply Technologies
$
—
$
—
$
—
$
—
$
—
$
—
Assembly Components1
1.2
—
1.2
1.5
—
1.5
Engineered Products
0.2
2.7
2.9
—
0.8
0.8
Corporate
—
—
—
—
—
—
Total continuing operations1
$
1.4
$
2.7
$
4.1
$
1.5
$
0.8
$
2.3
Six Months Ended June 30,
2023
Six Months Ended June 30,
2022
Supply Technologies
$
—
$
0.2
$
0.2
$
—
$
0.3
$
0.3
Assembly Components
1.5
—
1.5
3.0
—
3.0
Engineered Products
0.2
4.7
4.9
—
1.4
1.4
Corporate
—
—
—
—
0.9
0.9
Total
$
1.7
$
4.9
$
6.6
$
3.0
$
2.6
$
5.6
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of June 30, 2023 and December 31, 2022 and is
presented in discontinued operations for all periods presented.
Aluminum Products was previously included in our Assembly
Components segment.
Park-Ohio Holdings Corp. and
Subsidiaries Supplemental Non-GAAP Financial Measures
(Unaudited)
EBITDA, as defined is a non-GAAP financial measure that the
Company is providing in this press release. EBITDA, as defined
reflects net income attributable to Park-Ohio Holdings Corp. common
shareholders before interest expense, income taxes, depreciation
and amortization, and also excludes certain charges and
corporate-level expenses as defined in the Company's current
revolving credit facility. The Company presents this non-GAAP
financial measure because management uses EBITDA, as defined to
assess the Company's performance and to calculate its debt service
coverage ratio under its current revolving credit facility. EBITDA,
as defined is not a measure of performance under GAAP and should
not be considered in isolation from, or as a substitute for, net
income or cash flow information calculated in accordance with GAAP.
EBITDA, as defined herein may not be comparable to similarly titled
measures of other companies. The following table reconciles net
income to EBITDA, as defined:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(In millions)
Income from continuing operations
attributable to Park-Ohio Holdings Corp. common shareholders
$
7.1
$
6.4
$
14.6
$
10.1
Loss from discontinued operations, net of
tax
(1.7
)
(5.4
)
(3.4
)
(3.0
)
Net income attributable to Park-Ohio
Holdings Corp. common shareholders
5.4
1.0
11.2
7.1
Add back:
Interest expense, net
11.9
8.3
23.3
16.1
Income tax expense
1.5
0.7
3.3
—
Depreciation and amortization
7.8
9.2
15.5
18.9
Stock-based compensation expense
1.7
1.8
3.3
3.4
Restructuring, business optimization and
other costs
4.1
3.7
6.5
5.6
Acquisition-related expenses
—
—
0.1
0.3
EBITDA loss attributable to Designated
Subsidiary
1.8
—
1.6
—
Other
(0.1
)
0.2
(0.9
)
0.2
EBITDA, as defined(a)(b)
$
34.1
$
24.9
$
63.9
$
51.6
EBITDA from continuing operations
$
35.7
$
26.1
$
67.2
$
47.4
EBITDA from discontinued operations
(1.6
)
(1.2
)
(3.3
)
4.2
EBITDA, as defined(a)(b)
$
34.1
$
24.9
$
63.9
$
51.6
(a) EBITDA, as defined includes amounts
attributable to discontinued operations.
(b) 2022 and 2023 year-to-date EBITDA, as
defined does not equal the sum of quarterly amounts due to
inclusion/exclusion of certain tax expense/benefit and
determination of certain limitations, as calculated pursuant to our
Credit Agreement.
Park-Ohio Holdings Corp. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Unaudited)
June 30, 2023
December 31,
2022
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$
53.4
$
58.2
Accounts receivable, net
256.9
246.3
Inventories, net
405.9
406.5
Other current assets
127.0
114.2
Current assets held-for-sale -
discontinued operations1
108.8
107.2
Total current assets
952.0
932.4
Property, plant and equipment, net
183.2
181.1
Operating lease right-of-use assets
49.4
54.7
Goodwill
109.8
108.9
Intangible assets, net
76.3
78.7
Other long-term assets
81.1
80.8
Total assets
$
1,451.8
$
1,436.6
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Trade accounts payable
$
207.3
$
221.0
Current portion of long-term debt and
short-term debt
12.5
10.9
Current portion of operating lease
liabilities
10.8
11.2
Accrued expenses and other
159.8
161.7
Current liabilities held-for-sale -
discontinued operations1
42.3
43.8
Total current liabilities
432.7
448.6
Long-term liabilities, less current
portion:
Long-term debt
673.1
655.1
Long-term operating lease liabilities
38.7
43.7
Other long-term liabilities
21.7
21.3
Total long-term liabilities
733.5
720.1
Park-Ohio Holdings Corp. and Subsidiaries
shareholders' equity
274.6
256.5
Noncontrolling interests
11.0
11.4
Total equity
285.6
267.9
Total liabilities and shareholders'
equity
$
1,451.8
$
1,436.6
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of June 30, 2023 and December 31, 2022 and is
presented in discontinued operations for all periods presented.
Park-Ohio Holdings Corp. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Six Months Ended June
30,
2023
2022
(In millions)
OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS
Income from continuing operations
$
14.2
$
10.8
Adjustments to reconcile income from
continuing operations to net cash provided (used) by operating
activities from continuing operations:
Depreciation and amortization
15.5
15.1
Stock-based compensation expense
3.3
3.4
Gains on sales of assets
(0.8
)
(2.9
)
Changes in operating assets and
liabilities:
Accounts receivable
(8.8
)
(30.9
)
Inventories
3.0
(32.8
)
Prepaid and other current assets
(14.1
)
(3.6
)
Accounts payable and accrued expenses
(15.1
)
8.0
Other
3.7
(2.1
)
Net cash provided (used) by operating
activities from continuing operations
0.9
(35.0
)
INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS
Purchases of property, plant and
equipment
(13.4
)
(12.7
)
Proceeds from sale of assets
1.4
4.0
Business acquisitions, net of cash
acquired
(1.0
)
—
Net cash used in investing activities from
continuing operations
(13.0
)
(8.7
)
FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS
Proceeds from revolving credit facility,
net
14.2
67.9
Payments on other debt
(0.8
)
(1.3
)
Proceeds from other debt
4.2
1.3
Proceeds from (payments on) finance lease
facilities, net
0.9
(1.3
)
Payments related to prior acquisitions
(2.0
)
—
Dividends
(3.2
)
(3.2
)
Payments of withholding taxes on share
awards
(1.2
)
(1.1
)
Net cash provided by financing activities
from continuing operations
12.1
62.3
DISCONTINUED OPERATIONS1:
Total used by operating activities
(2.2
)
(3.3
)
Total used by investing activities
(1.7
)
(2.7
)
Total used by financing activities
(1.2
)
(1.7
)
Decrease in cash and cash equivalents from
discontinued operations
(5.1
)
(7.7
)
Effect of exchange rate changes on
cash
0.3
(3.9
)
(Decrease) increase in cash and cash
equivalents
(4.8
)
7.0
Cash and cash equivalents at beginning of
period
58.2
54.1
Cash and cash equivalents at end of
period
$
53.4
$
61.1
Interest paid
$
22.6
$
15.4
Income taxes paid
$
4.4
$
2.7
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of June 30, 2023 and December 31, 2022 and is
presented in discontinued operations for all periods presented.
Park-Ohio Holdings Corp. and
Subsidiaries
Business Segment Information
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(In millions)
NET SALES OF CONTINUING OPERATIONS:
Supply Technologies
$
197.3
$
175.8
$
393.1
$
344.6
Assembly Components1
112.0
95.4
222.4
193.3
Engineered Products
118.8
98.6
236.1
189.6
$
428.1
$
369.8
$
851.6
$
727.5
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES:
Supply Technologies
$
15.4
$
12.7
$
29.4
$
24.7
Assembly Components1
8.4
(1.4
)
15.7
(1.9
)
Engineered Products
3.2
7.1
8.2
8.9
Total segment operating income
27.0
18.4
53.3
31.7
Corporate costs
(7.8
)
(7.5
)
(14.7
)
(15.4
)
Gains on sales of assets
—
2.9
0.8
2.9
Operating income
19.2
13.8
39.4
19.2
Other components of pension income and
other postretirement benefits expense, net
0.6
2.8
1.3
5.6
Interest expense, net
(11.1
)
(7.6
)
(21.8
)
(14.7
)
Income from continuing operations before
income taxes1
$
8.7
$
9.0
$
18.9
$
10.1
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of June 30, 2023 and December 31, 2022 and is
presented in discontinued operations for all periods presented.
Aluminum Products was previously included in our Assembly
Components segment.
Park-Ohio Holdings Corp. and
Subsidiaries Supplemental Non-GAAP Financial Measures
(Unaudited)
Adjusted segment operating income (loss) is a non-GAAP financial
measure that the Company is providing in this press release.
Adjusted segment operating income (loss) is calculated as segment
operating income (loss) plus adjustments for plant closure and
consolidation, severance and other. The Company presents this
non-GAAP financial measure because the business segments have
incurred significant restructuring and related expenses during the
year-to-date and quarter-to-date periods. Adjusted segment
operating income (loss) is not a measure of performance under GAAP
and should not be considered in isolation from, or as a substitute
for, earnings in accordance with GAAP. Adjusted segment operating
income (loss) herein may not be comparable to similarly titled
measures of other companies. The following table reconciles
adjusted segment operating income (loss) to segment operating
income (loss):
Three Months Ended June
30,
2023
2022
(In millions)
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
15.4
$
—
$
15.4
$
12.7
$
—
$
12.7
Assembly Components
8.4
1.2
9.6
(1.4
)
1.5
0.1
Engineered Products
3.2
2.9
6.1
7.1
0.8
7.9
Corporate
(7.8
)
—
(7.8
)
(7.5
)
—
(7.5
)
Gain on sale of assets
—
—
—
2.9
(2.9
)
—
Operating income - continuing
operations
$
19.2
$
4.1
$
23.3
$
13.8
$
(0.6
)
$
13.2
Six Months Ended June
30,
2023
2022
(In millions)
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
29.4
$
0.2
$
29.6
$
24.7
$
0.3
$
25.0
Assembly Components
15.7
1.5
17.2
(1.9
)
3.0
1.1
Engineered Products
8.2
4.9
13.1
8.9
1.4
10.3
Corporate
(14.7
)
—
(14.7
)
(15.4
)
0.9
(14.5
)
Gain on sale of assets
0.8
(0.8
)
—
2.9
(2.9
)
—
Operating income - continuing
operations
$
39.4
$
5.8
$
45.2
$
19.2
$
2.7
$
21.9
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802534855/en/
MATTHEW V. CRAWFORD PARK-OHIO HOLDINGS CORP. (440) 947-2000
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