- Net sales of $419 million, increased 9% from $384 million in Q3
2022
- Record year-to-date sales; expected record full year sales
- GAAP EPS from continuing operations of $0.99 per diluted share,
an increase of 71% year-over-year
- Adjusted EPS from continuing operations of $0.99, an increase
of 16% year-over-year
- Gross margin from continuing operations improved 300 basis
points year-over-year to 16.7%
- Operating income from continuing operations improved to $27
million from $12 million in Q3 2022; Adjusted operating income from
continuing operations improved 70% to $27 million from $16 million
year-over-year
- EBITDA from continuing operations improved 29% year-over-year
to $39 million, operating cash flow was $23 million, and free cash
flow was $17 million
Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its
results for the third quarter of 2023.
Matthew V. Crawford, Chairman, Chief Executive Officer and
President, stated, “Strong financial performance during the third
quarter was a tribute to our diversified business model and our
commitment to both commercial and operational improvements. I would
draw particular attention to our improvement in gross margins and
our free cash flow during the quarter. Backlogs remain above
historical levels, and demand is stable across most end markets
with the notable exception of customers affected by UAW strikes,
which will provide a headwind during the fourth quarter.
Regardless, we are well positioned to end 2023 as a stronger and
more focused company.”
THIRD QUARTER CONSOLIDATED RESULTS FROM
CONTINUING OPERATIONS
In the third quarter of 2023, net sales from continuing
operations were $418.8 million compared to $383.8 million in the
2022 period, an increase of 9%. Gross margin was 16.7%, an increase
of 300 basis points compared to 13.7% in the 2022 third quarter,
driven by profit flow-through from our higher sales levels,
benefits from completed plant consolidations, and other
profit-improvement actions, including increased product
pricing.
Income from continuing operations attributable to ParkOhio
common shareholders in the third quarter of 2023 was $12.5 million,
or $0.99 per diluted share, compared to $7.1 million, or $0.58 per
diluted share in the third quarter of 2022. Excluding special
items, adjusted EPS from continuing operations was $0.99 per
diluted share in the third quarter of 2023 compared to $0.85 per
diluted share in the 2022 period. EBITDA from continuing operations
totaled $38.5 million in the 2023 third quarter, up 29%
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.
THIRD QUARTER SEGMENT RESULTS FROM CONTINUING
OPERATIONS
In our Supply Technologies segment, net sales in the third
quarter of 2023 were $192.8 million, an increase of 4% compared to
$185.9 million in the third quarter a year ago, due to stronger
customer demand in almost all of our key end markets, with the
largest increases in the heavy-duty truck and bus, military and
civilian aerospace, power sports, and industrial and agricultural
equipment markets. Third quarter average daily sales in our supply
chain business were up 6.1% compared to the same period a year ago.
Sales in our fastener manufacturing business continued to be
strong, driven by higher customer demand for our proprietary
products. Segment operating income was $15.6 million in the third
quarter of 2023 compared to $10.7 million in the third quarter
2022, an increase of 45%. Operating income margin was 8.1% and 230
basis points higher in the 2023 third quarter compared to the same
quarter a year ago. These 2023 increases were driven by the higher
sales levels, customer price increases and other profit-enhancement
actions in this segment.
In Assembly Components, which now excludes the Aluminum Products
business that has been reclassified to discontinued operations for
all periods presented, net sales were $108.4 million, up 7%
compared to $101.0 million in the 2022 third quarter. Segment
operating income was $11.2 million in the third quarter of 2023
compared to $2.6 million in the corresponding 2022 quarter. On an
adjusted basis, which excludes plant closure and consolidation and
other special costs in the 2022 period, operating income was $11.2
million in the 2023 period compared to $3.8 million in the 2022
period. Operating margins were 10.3% and 770 basis points higher
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.
In Engineered Products, net sales were $117.6 million in the
2023 third quarter, up 21% compared to $96.9 million in last year's
third 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 21%
year-over-year, and new equipment backlog totaled $172 million at
September 30, 2023 compared to $163 million at December 31, 2022,
an increase of 6%. Bookings of new equipment remained strong in the
third quarter and totaled $44 million. In our forged and machined
products business, third quarter 2023 sales were up 22% compared to
the same quarter a year ago, driven by higher customer demand in
key end markets, primarily rail and aerospace and defense. Segment
operating income in the 2023 third quarter was $7.1 million,
compared to $5.8 million in the 2022 third quarter. On an adjusted
basis, which excludes plant closure and consolidation, severance
and other restructuring costs in the 2022 period, segment operating
income was $7.1 million in the third quarter of 2023 compared to
$7.2 million in the 2022 period. During the quarter, operating
income in our capital equipment business continued to improve
year-over-year, 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 lower profitability in our forged and machined
products business.
Please refer to the tables that follow for a reconciliation of
segment operating income to adjusted segment operating income.
YEAR-TO-DATE CONSOLIDATED RESULTS FROM
CONTINUING OPERATIONS
In the nine months ended September 30, 2023, net sales from
continuing operations were a record $1.3 billion compared to $1.1
billion in the 2022 period, an increase of 14%. Gross margin in the
nine months ended September 30, 2023 was 16.3%, an increase of 240
basis points compared to 13.9% in the period in 2022, driven by
profit flow-through from our higher sales levels, benefits from
completed plant consolidations, and other profit-improvement
actions, including increased product pricing.
Income from continuing operations attributable to ParkOhio
common shareholders in the nine months ended September 30, 2023 was
$27.1 million, or $2.19 per diluted share, compared to $17.2
million, or $1.41 per diluted share in the same period in 2022.
Excluding special items, adjusted EPS from continuing operations
was $2.55 per diluted share in the nine months ended September 30,
2023 compared to $1.85 per diluted share in the 2022 period, an
increase of 38%. EBITDA from continuing operations totaled $104.8
million in the nine months ended September 30, 2023, up 35%
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 third quarter, the net loss
from this business totaled $1.4 million. The net book value
classified on our balance sheet as net assets held for sale is
approximately $68 million as of September 30, 2023.
LIQUIDITY AND CASH FLOW
At September 30, 2023, our total liquidity improved sequentially
and was $174.9 million, which included cash on hand of $51.2
million and $123.7 million of unused borrowing availability under
our credit arrangements. During the third quarter of 2023,
operating cash flow from continuing operations was $23.4 million
and free cash flow totaled $16.6 million, as working capital days
continue to improve despite the strong sales growth in the
quarter.
Effective September 13, 2023, we amended and restated our
existing revolving credit facility. The amended facility, which
extends the scheduled maturity date from November 26, 2024 to
September 13, 2028 (or, if earlier, the date that is 91 days prior
to the scheduled maturity of the Company's 2017 Senior Notes),
combined with free cash flow expected in 2023, enhances our strong
liquidity foundation that will support our current requirements and
future growth strategy.
2023 OUTLOOK - CONTINUING OPERATIONS
For 2023, we continue to expect revenues from continuing
operations to increase 10-15% year-over-year and expect
year-over-year improvement in adjusted operating income; EBITDA, as
defined; free cash flow and adjusted EPS in 2023. Our fourth
quarter revenues will be negatively impacted by the United Auto
Workers (“UAW”) strike, which has affected several OEM customer
plants. Although there appears to be tentative agreements between
the OEMs and the UAW, it is difficult to estimate the full impact
of the strike on our fourth quarter revenues as production ramps
back up to normal levels. Our monthly revenue levels from the OEM
plants impacted by the strike total approximately $25 to $30
million across our Assembly Components and Supply Technologies
segments.
CONFERENCE CALL
A conference call reviewing ParkOhio’s third quarter 2023
results will be broadcast live over the Internet on Thursday,
November 2, 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, including the UAW strike; 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 conflicts between Russia and Ukraine
and in the Middle East, 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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(In millions, except per share
data)
Net sales
$
418.8
$
383.8
$
1,270.4
$
1,111.3
Cost of sales
348.8
331.4
1,063.1
956.3
Selling, general and administrative
expenses
43.0
36.5
135.1
117.2
Restructuring and other special
charges
—
4.3
6.6
9.9
Gains on sales of assets
—
—
(0.8
)
(2.9
)
Operating income
27.0
11.6
66.4
30.8
Other components of pension income and
other postretirement benefits expense, net
0.6
2.7
1.9
8.3
Interest expense, net
(11.6
)
(9.0
)
(33.4
)
(23.7
)
Income from continuing operations before
income taxes
16.0
5.3
34.9
15.4
Income tax (expense) benefit
(3.8
)
2.2
(8.5
)
2.9
Income from continuing operations
12.2
7.5
26.4
18.3
Loss (income) attributable to
noncontrolling interests
0.3
(0.4
)
0.7
(1.1
)
Income from continuing operations
attributable to Park-Ohio Holdings Corp. common shareholders
12.5
7.1
27.1
17.2
Loss from discontinued operations, net of
tax
(1.4
)
(4.4
)
(4.8
)
(7.4
)
Net income attributable to Park-Ohio
Holdings Corp. common shareholders
$
11.1
$
2.7
$
22.3
$
9.8
Income (loss) per common share
attributable to Park-Ohio Holdings Corp. common shareholders:
Basic:
Continuing operations
$
1.01
$
0.58
$
2.22
$
1.42
Discontinued operations
(0.11
)
(0.36
)
(0.39
)
(0.61
)
Total
$
0.90
$
0.22
$
1.83
$
0.81
Diluted:
Continuing operations
$
0.99
$
0.58
$
2.19
$
1.41
Discontinued operations
(0.11
)
(0.36
)
(0.39
)
(0.61
)
Total
$
0.88
$
0.22
$
1.80
$
0.80
Weighted-average shares used to compute
income (loss) per share:
Basic
12.4
12.1
12.2
12.1
Diluted
12.6
12.2
12.4
12.2
Dividends per common share
$
0.125
$
0.125
$
0.375
$
0.375
Other financial data:
EBITDA, as defined
$
37.3
$
28.5
$
100.3
$
80.7
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 September
30,
Nine Months Ended September
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
$
12.5
$
0.99
$
7.1
$
0.58
$
27.1
$
2.19
$
17.2
$
1.41
Adjustments:
Restructuring and other special
charges
—
—
3.9
0.32
4.6
0.37
9.2
0.76
Severance
—
—
—
—
1.9
0.15
—
—
Acquisition-related expenses
—
—
0.4
0.03
0.1
0.01
0.7
0.05
Gain on sale of assets
—
—
—
—
(0.8
)
(0.06
)
(2.9
)
(0.24
)
Tax effect of above adjustments
—
—
(1.0
)
(0.08
)
(1.3
)
(0.11
)
(1.6
)
(0.13
)
Adjusted earnings
$
12.5
$
0.99
$
10.4
$
0.85
$
31.6
$
2.55
$
22.6
$
1.85
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 September
30, 2023
Three Months Ended September
30, 2022
Supply Technologies
$
—
$
—
$
—
$
0.8
$
0.1
$
0.9
Assembly Components1
—
—
—
1.2
—
1.2
Engineered Products
—
—
—
—
1.4
1.4
Corporate
—
—
—
—
0.8
0.8
Total continuing operations1
$
—
$
—
$
—
$
2.0
$
2.3
$
4.3
Nine Months Ended September
30, 2023
Nine Months Ended September
30, 2022
Supply Technologies
$
—
$
0.2
$
0.2
$
0.8
$
0.4
$
1.2
Assembly Components1
1.5
—
1.5
4.2
—
4.2
Engineered Products
0.2
4.7
4.9
—
2.8
2.8
Corporate
—
—
—
—
1.7
1.7
Total continuing operations1
$
1.7
$
4.9
$
6.6
$
5.0
$
4.9
$
9.9
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of September 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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(In millions)
Income from continuing operations
attributable to Park-Ohio Holdings Corp. common shareholders
$
12.5
$
7.1
$
27.1
$
17.2
Loss from discontinued operations, net of
tax
(1.4
)
(4.4
)
(4.8
)
(7.4
)
Net income attributable to Park-Ohio
Holdings Corp. common shareholders
11.1
2.7
22.3
9.8
Add back:
Interest expense, net
12.6
9.6
35.9
25.8
Income tax expense
3.0
—
6.3
—
Depreciation and amortization
7.9
9.4
23.4
28.2
Stock-based compensation expense
1.6
2.0
4.9
5.4
Restructuring, business optimization and
other costs
—
3.9
6.5
9.8
Acquisition-related expenses
—
0.4
0.1
0.7
EBITDA loss attributable to Designated
Subsidiary
1.2
—
2.0
—
Other
(0.1
)
0.5
(1.1
)
1.0
EBITDA, as defined(a)(b)
$
37.3
$
28.5
$
100.3
$
80.7
EBITDA from continuing operations
$
38.5
$
29.9
$
104.8
$
77.9
EBITDA from discontinued operations
(1.2
)
(1.4
)
(4.5
)
2.8
EBITDA, as defined(a)(b)
$
37.3
$
28.5
$
100.3
$
80.7
(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)
September 30,
2023
December 31,
2022
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$
51.2
$
58.2
Accounts receivable, net
265.8
246.3
Inventories, net
404.2
406.5
Other current assets
141.3
114.2
Current assets held-for-sale -
discontinued operations1
102.5
107.2
Total current assets
965.0
932.4
Property, plant and equipment, net
182.5
181.1
Operating lease right-of-use assets
46.8
54.7
Goodwill
108.8
108.9
Intangible assets, net
73.8
78.7
Other long-term assets
79.6
80.8
Total assets
$
1,456.5
$
1,436.6
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Trade accounts payable
$
202.1
$
221.0
Current portion of long-term debt and
short-term debt
12.2
10.9
Current portion of operating lease
liabilities
10.9
11.2
Accrued expenses and other
191.8
161.7
Current liabilities held-for-sale -
discontinued operations1
34.4
43.8
Total current liabilities
451.4
448.6
Long-term liabilities, less current
portion:
Long-term debt
659.1
655.1
Long-term operating lease liabilities
36.3
43.7
Other long-term liabilities
22.4
21.3
Total long-term liabilities
717.8
720.1
Park-Ohio Holdings Corp. and Subsidiaries
shareholders' equity
276.6
256.5
Noncontrolling interests
10.7
11.4
Total equity
287.3
267.9
Total liabilities and shareholders'
equity
$
1,456.5
$
1,436.6
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of September 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)
Nine Months Ended September
30,
2023
2022
(In millions)
OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS
Income from continuing operations
$
26.4
$
18.3
Adjustments to reconcile income from
continuing operations to net cash provided (used) by operating
activities from continuing operations:
Depreciation and amortization
23.4
22.7
Stock-based compensation expense
4.9
5.4
Gains on sales of assets
(0.8
)
(2.9
)
Changes in operating assets and
liabilities:
Accounts receivable
(20.2
)
(34.0
)
Inventories
2.5
(51.2
)
Prepaid and other current assets
(30.8
)
(2.1
)
Accounts payable and accrued expenses
14.2
23.6
Other
4.7
(6.8
)
Net cash provided (used) by operating
activities from continuing operations
24.3
(27.0
)
INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS
Purchases of property, plant and
equipment
(20.8
)
(20.0
)
Proceeds from sales of assets
2.0
4.0
Business acquisitions, net of cash
acquired
(1.2
)
(21.9
)
Net cash used in investing activities from
continuing operations
(20.0
)
(37.9
)
FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS
Proceeds from revolving credit facility,
net
1.4
90.0
Payments on other debt
(1.4
)
(3.1
)
Proceeds from other debt
5.1
2.7
Proceeds from (payments on) finance lease
facilities, net
0.3
(2.0
)
Payments related to prior acquisitions
(2.1
)
—
Dividends
(4.9
)
(5.3
)
Payments of withholding taxes on share
awards
(1.9
)
(1.3
)
Net cash (used) provided by financing
activities from continuing operations
(3.5
)
81.0
DISCONTINUED OPERATIONS1:
Total used by operating activities
(3.4
)
(4.4
)
Total used by investing activities
(2.0
)
(3.7
)
Total used by financing activities
(1.9
)
(2.5
)
Decrease in cash and cash equivalents from
discontinued operations
(7.3
)
(10.6
)
Effect of exchange rate changes on
cash
(0.5
)
(5.9
)
Decrease in cash and cash equivalents
(7.0
)
(0.4
)
Cash and cash equivalents at beginning of
period
58.2
54.1
Cash and cash equivalents at end of
period
$
51.2
$
53.7
Interest paid
$
29.6
$
18.5
Income taxes paid
$
7.1
$
1.8
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of September 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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(In millions)
NET SALES OF CONTINUING OPERATIONS:
Supply Technologies
$
192.8
$
185.9
$
585.9
$
530.5
Assembly Components1
108.4
101.0
330.8
294.3
Engineered Products
117.6
96.9
353.7
286.5
$
418.8
$
383.8
$
1,270.4
$
1,111.3
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES:
Supply Technologies
$
15.6
$
10.7
$
45.0
$
35.4
Assembly Components1
11.2
2.6
26.9
0.7
Engineered Products
7.1
5.8
15.3
14.7
Total segment operating income
33.9
19.1
87.2
50.8
Corporate costs
(6.9
)
(7.5
)
(21.6
)
(22.9
)
Gains on sales of assets
—
—
0.8
2.9
Operating income
27.0
11.6
66.4
30.8
Other components of pension income and
other postretirement benefits expense, net
0.6
2.7
1.9
8.3
Interest expense, net
(11.6
)
(9.0
)
(33.4
)
(23.7
)
Income from continuing operations before
income taxes1
$
16.0
$
5.3
$
34.9
$
15.4
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of September 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 September
30,
2023
2022
(In millions)
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
15.6
$
—
$
15.6
$
10.7
$
0.9
$
11.6
Assembly Components1
11.2
—
11.2
2.6
1.2
3.8
Engineered Products
7.1
—
7.1
5.8
1.4
7.2
Corporate
(6.9
)
—
(6.9
)
(7.5
)
0.8
(6.7
)
Operating income - continuing
operations1
$
27.0
$
—
$
27.0
$
11.6
$
4.3
$
15.9
Nine Months Ended September
30,
2023
2022
(In millions)
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
45.0
$
0.2
$
45.2
$
35.4
$
1.2
$
36.6
Assembly Components1
26.9
1.5
28.4
0.7
4.2
4.9
Engineered Products
15.3
4.9
20.2
14.7
2.8
17.5
Corporate
(21.6
)
—
(21.6
)
(22.9
)
1.7
(21.2
)
Gain on sale of assets
0.8
(0.8
)
—
2.9
(2.9
)
—
Operating income - continuing
operations1
$
66.4
$
5.8
$
72.2
$
30.8
$
7.0
$
37.8
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which is
held-for-sale as of September 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.
Free cash flow is a non-GAAP financial measure that the Company
is providing in this press release. The Company presents free cash
flow, which it defines as net cash provided by operating activities
minus purchases of property, plant and equipment plus proceeds from
sales of assets, because management uses free cash flow to measure
its performance. Free cash flow is not a measure of performance
under GAAP and should not be considered in isolation from, or as a
substitute for, amounts calculated in accordance with GAAP. Free
cash flow herein may not be comparable to similarly titled measures
of other companies. The following tables reconcile net cash
provided by operating activities to free cash flow:
Three Months Ended September
30, 2023
(In millions)
Net cash provided by operating activities
from continuing operations
$
23.4
Less: purchases of property plant and
equipment
(7.4
)
Plus: proceeds from sales of assets
0.6
Free cash flow
$
16.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101976375/en/
MATTHEW V. CRAWFORD PARK-OHIO HOLDINGS CORP. (440) 947-2000
Grafico Azioni Park Ohio (NASDAQ:PKOH)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Park Ohio (NASDAQ:PKOH)
Storico
Da Gen 2024 a Gen 2025
