Fourth quarter:
- Net sales from continuing operations of $389 million, up 2%
year-over-year
- GAAP EPS from continuing operations of $0.54 per diluted share,
up from a loss of $(0.58) per diluted share a year ago
- Q4 results impacted by United Auto Workers strike at light
vehicle and heavy truck plants
- Strong Q4 operating cash flows of $29 million and free cash
flow of $22 million
- Completed sale of Aluminum Products business
Full year:
- Record net sales from continuing operations of $1.7 billion, up
11% YOY, and record net sales in each business segment
- GAAP EPS from continuing operations of $2.72 per diluted share
compared to $0.83 in 2022
- Adjusted EPS from continuing operations of $3.07 per diluted
share, up 74% compared to $1.76 per diluted share in 2022
- EBITDA from continuing operations improved 33% to $134 million
in 2023
- Strong full year operating cash flows of $53 million and free
cash flow of $25 million
2024 Outlook:
- Revenues expected to grow in the mid-single digit range
year-over-year, driven primarily by continued strong demand
expected in Supply Technologies and strong backlogs in Engineered
Products
- Expected year-over-year improvement in EPS and EBITDA
Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its
results for the fourth quarter and full year 2023.
“Our team delivered strong growth of 11% during 2023 even with
the adverse impact of the UAW strikes during the fourth
quarter. These results represented record revenue for our
business in total and for every business segment.
Additionally, gross margin increased more than 200 basis points
over 2022, and operating cash flow exceeded $53 million, which was
used to grow our business and reduce debt. Our strong
performance is a testament to the hard work of our teams and strong
positioning in the market of our portfolio of brands,” said Matthew
V. Crawford, Chairman and Chief Executive Officer.
“While we expect our sales growth to moderate during 2024, we
will use this opportunity to build on our progress in 2023 to
further improve our operating execution and drive further
improvements in profitability and cash flow.”
FOURTH QUARTER AND FULL YEAR CONSOLIDATED
RESULTS FROM CONTINUING OPERATIONS
In the fourth quarter of 2023, net sales from continuing
operations were $389.3 million compared to $381.6 million in the
2022 period, an increase of 2%. Gross margin increased 200 basis
points in the 2023 period compared to the 2022 period. Income from
continuing operations attributable to ParkOhio common shareholders
in the fourth quarter of 2023 was $6.9 million, or $0.54 per
diluted share, compared to a loss of $7.0 million, or $0.58 per
diluted share in the fourth quarter of 2022. Excluding special
items, adjusted EPS from continuing operations was $0.54 per
diluted share in the fourth quarter of 2023 compared to a loss of
$0.09 per diluted share in the 2022 period. Our net sales and
income in the fourth quarter of 2023 were negatively impacted by
the United Auto Workers (“UAW”) strike in September-October 2023,
which negatively impacted several OEM customer plants and reduced
our net sales and EPS by approximately $25 million and
approximately $0.20 per diluted share, respectively. Please refer
to the table that follows for a reconciliation of income (loss)
from continuing operations to adjusted income (loss) from
continuing operations.
Full year 2023 net sales were $1.7 billion compared to $1.5
billion in 2022, an increase of 11%. Our 2023 net sales performance
was a record for our continuing operations on a consolidated basis,
and a record in each of our three individual business segments.
Gross margin increased 230 basis points in 2023 compared to 2022.
Income from continuing operations attributable to ParkOhio common
shareholders in 2023 was $34.0 million, or $2.72 per diluted share,
compared to $10.1 million, or $0.83 per diluted share in 2022.
Excluding special items, adjusted EPS from continuing operations
was $3.07 per diluted share in 2023, an increase of 74% compared to
$1.76 per diluted share in 2022. EBITDA, as defined in 2023 was
$134.2 million, an increase of 33% compared to $101.0 million in
2022. Please refer to the tables that follow for a reconciliation
of income from continuing operations to adjusted income from
continuing operations and income from continuing operations
attributable to ParkOhio common shareholders to EBITDA, as
defined.
FOURTH QUARTER SEGMENT RESULTS FROM CONTINUING
OPERATIONS
In our Supply Technologies segment, net sales in the fourth
quarter of 2023 were $177.5 million, a decrease of 2% compared to
$181.0 million in the fourth quarter a year ago, driven by the
impact of the UAW strike and lower demand primarily in the
heavy-duty truck end market. Our net sales in the quarter were
impacted by the UAW strike affecting several OEM vehicle assembly
plants. Segment operating income was $14.0 million in the fourth
quarter of 2023 compared to $10.3 million in the fourth quarter
2022. Operating income margin was 220 basis points higher in the
2023 fourth quarter compared to the same quarter a year ago due
primarily to customer price increases and other profit-enhancement
actions. For the full year 2023, net sales increased 7% to a record
$763.4 million, as we benefited from strong demand in most key end
markets, most notably in power sports, heavy-duty truck, and
commercial aerospace, and increased demand for our proprietary
fastener products. Operating margin improved 130 basis points to
7.7%, driven by the higher sales and the impact of
profit-enhancement actions, including increased product
pricing.
In Assembly Components, which excludes the Aluminum Products
business for all periods presented, net sales were $97.0 million,
up 3% compared to $94.6 million in the 2022 fourth quarter. Our net
sales in the quarter were impacted by the UAW strike affecting
several OEM vehicle assembly plants. Segment operating income was
$6.5 million in the fourth quarter of 2023 compared to $0.4 million
in the 2022 quarter. On an adjusted basis excluding special charges
in the 2022 period related to plant consolidation, operating income
was $6.5 million in the 2023 period compared to $1.8 million in the
2022 period. The improvement in segment operating results in the
2023 period compared to the same period a year ago was driven by
the benefit of profit-improvement initiatives implemented over the
past two years, including increased product pricing and plant
consolidation actions, and the profit flow-through from the higher
sales levels. For the full year 2023, net sales increased 10% to a
record $427.8 million, driven by increased customer pricing and new
programs implemented during the year. Operating margin improved 750
basis points to 7.8%, driven by the benefit of profit-improvement
initiatives implemented over the past two years, including
increased product pricing, and the higher sales levels.
In Engineered Products, net sales were $114.8 million in the
2023 fourth quarter, up 8% compared to $106.0 million in last
year's fourth quarter, driven by strong demand in both our capital
equipment business and our forged and machined products business.
In our capital equipment business, new equipment backlog totaled
$162 million at December 31, 2023 compared to $163 million at
December 31, 2022. Bookings of new equipment in 2023 totaled $175
million compared to $201 million in 2022. Aftermarket net sales
continued to be strong and were $40.5 million in the 2023 fourth
quarter, up 12% compared to $36.1 million in last year’s fourth
quarter. In our forged and machined products business, fourth
quarter 2023 sales were up 12% compared to the same quarter a year
ago, driven by continued strong demand in certain key end markets,
primarily rail and aerospace and defense. Segment operating income
in the 2023 fourth quarter was $3.8 million compared to $0.1
million in the 2022 quarter. On an adjusted basis excluding special
charges in 2022 related to plant consolidation, segment operating
income was $3.8 million in the fourth quarter of 2023 compared to
$5.6 million in the 2022 period. Excluding special charges, the
profitability decline in the 2023 fourth quarter was driven by
lower profitability in our forged and machined products business,
which more than offset the strong performance in our capital
equipment business. For the full year 2023, net sales increased 19%
to a record $468.5 million, driven by our backlogs at the start of
the year and higher customer demand in both our capital equipment
business and our forged and machined products business. Operating
margin improved 30 basis points to 4.1%, driven by profit
flow-through from the higher sales levels and implemented
operational improvements, which more than offset the lower margins
in forged and machined products.
LIQUIDITY AND CASH FLOW
At December 31, 2023, our total liquidity was $166 million,
which included cash on hand of $54.8 million and $111.2 million of
unused borrowing availability under our credit arrangements. In
2023, operating cash flows were $53.4 million and free cash flow
was $25.2 million, up significantly compared to 2022.
SALE OF ALUMINUM PRODUCTS BUSINESS
Effective December 29, 2023, the Company completed the
divestiture of its Aluminum Products business to Angstrom
Automotive Group (the “Buyer”) for approximately $50 million in
cash and promissory notes, plus the assumption of approximately $3
million of finance lease obligations by the Buyer. The loss on sale
of the Aluminum Products business was $23.6 million. In 2023, the
business generated an EBITDA loss of $0.2 million and negative free
cash flow of $6.8 million.
The sale proceeds, which were and will be used to repay a
portion of the Company’s outstanding indebtedness, consisted of a
cash down payment of $20.0 million paid to the Company in December
2022; cash of $15.5 million paid to the Company at closing; and
promissory notes totaling $15 million payable to the Company on
December 31, 2024, of which $10 million is contingent on the
Aluminum Products business attaining certain purchase commitments
during 2024.
2024 OUTLOOK - CONTINUING OPERATIONS
For 2024, we expect revenue growth in the mid-single digit range
year-over-year, driven by continued strong demand expected in most
end markets in Supply Technologies and Assembly Components and the
strength of our backlog in Engineered Products. In addition, we
expect year-over-year improvement in EPS and EBITDA.
SUBSEQUENT EVENT – ACQUISITION OF EMA INDUTEC
GmbH
Effective February 29, 2024, the Company acquired all of the
outstanding shares of EMA Indutec GmbH (“EMA”), headquartered in
Meckesheim, Germany, from the Aichelin Group, headquartered in
Modling, Austria. EMA, a leading manufacturer of induction heating
equipment and converters, operates through its two locations in
Meckesheim, Germany and Beijing, China. The acquisition strengthens
our global induction heating expertise throughout Europe and
expands our portfolio of induction equipment brands and our
aftermarket service capabilities. The cash purchase price was
approximately $14 million.
Mr. Crawford stated, “The strategic acquisition of EMA will
expand our leading global induction business throughout Germany and
will be immediately accretive to our margins. We expect revenues
from EMA over the next twelve months to exceed $30 million."
CONFERENCE CALL
A conference call reviewing ParkOhio’s fourth quarter and full
year 2023 results will be broadcast live over the Internet on
Wednesday, March 6, 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 approximately
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 realize any contingent
consideration from the sale of the Aluminum Products business; the
impact supply chain 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, including the EMA
acquisition; 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 OPERATIONS (UNAUDITED)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
(In millions, except per share
data)
Net sales
$
389.3
$
381.6
$
1,659.7
$
1,492.9
Cost of sales
325.2
326.1
1,388.3
1,282.4
Selling, general and administrative
expenses
46.4
45.1
181.5
162.2
Restructuring and other special
charges
—
7.3
6.6
17.3
Loss (gain) on sales of assets, net
—
0.5
(0.8
)
(2.4
)
Operating income
17.7
2.6
84.1
33.4
Other components of pension income and
other postretirement benefits expense, net
0.6
2.8
2.5
11.1
Interest expense, net
(11.7
)
(10.1
)
(45.1
)
(33.8
)
Income (loss) from continuing operations
before income taxes
6.6
(4.7
)
41.5
10.7
Income tax (expense) benefit
—
(2.1
)
(8.5
)
0.7
Income (loss) from continuing
operations
6.6
(6.8
)
33.0
11.4
Loss (income) attributable to
noncontrolling interest
0.3
(0.2
)
1.0
(1.3
)
Income (loss) from continuing operations
attributable to ParkOhio common shareholders
6.9
(7.0
)
34.0
10.1
Loss from discontinued operations, net of
tax
(21.4
)
(16.9
)
(26.2
)
(24.3
)
Net (loss) income attributable to ParkOhio
common shareholders
$
(14.5
)
$
(23.9
)
$
7.8
$
(14.2
)
Earnings (loss) per common share
attributable to ParkOhio common shareholders:
Basic:
Continuing operations
$
0.56
$
(0.58
)
$
2.76
$
0.83
Discontinued operations
(1.73
)
(1.40
)
(2.13
)
(2.00
)
Total
$
(1.17
)
$
(1.98
)
$
0.63
$
(1.17
)
Diluted:
Continuing operations
$
0.54
$
(0.58
)
$
2.72
$
0.83
Discontinued operations
(1.69
)
(1.40
)
(2.10
)
(1.99
)
Total
$
(1.15
)
$
(1.98
)
$
0.62
$
(1.16
)
Weighted-average shares used to compute
earnings (loss) per share:
Basic
12.4
12.1
12.3
12.1
Diluted
12.7
12.1
12.5
12.2
Cash dividends per common share
$
0.125
$
0.125
$
0.50
$
0.50
Other financial data:
EBITDA, as defined
$
29.1
$
25.9
$
134.2
$
101.0
PARK-OHIO HOLDINGS CORP. AND
SUBSIDIARIES
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted earnings (loss) from continuing operations is a
non-GAAP financial measure that the Company is providing in this
press release. Adjusted earnings (loss) from continuing operations
is income (loss) 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 (loss)
from continuing operations to compare its operating performance on
a consistent basis over multiple periods because they remove the
impact of certain significant non-cash credits or charges and
certain infrequent items impacting income (loss). Adjusted earnings
(loss) is not a measure of performance under GAAP and should not be
considered in isolation from, or as a substitute for, income (loss)
from continuing operations calculated in accordance with GAAP.
Adjusted income (loss) from continuing operations herein may not be
comparable to similarly titled measures of other companies. The
following table reconciles income (loss) from continuing operations
to adjusted earnings (loss) from continuing operations:
Three Months Ended December
31,
Year Ended December
31,
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 (loss) from continuing operations
attributable to ParkOhio common shareholders
$
6.9
$
0.54
$
(7.0
)
$
(0.58
)
$
34.0
$
2.72
$
10.1
$
0.83
Adjustments:
Restructuring and other special
charges
—
—
7.2
0.59
4.6
0.36
16.4
1.34
Severance
—
—
—
—
1.9
0.15
—
—
Acquisition-related expenses
—
—
0.1
0.01
0.1
0.01
0.9
0.07
Loss (gains) on sales of assets, net
—
—
0.5
0.04
(0.8
)
(0.06
)
(2.4
)
(0.20
)
Tax effect of adjustments
—
—
(1.9
)
(0.15
)
(1.3
)
(0.11
)
(3.6
)
(0.28
)
Adjusted earnings (loss) from continuing
operations
$
6.9
$
0.54
$
(1.1
)
$
(0.09
)
$
38.5
$
3.07
$
21.4
$
1.76
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 December
31, 2023
Three Months Ended December
31, 2022
Supply Technologies
$
—
$
—
$
—
$
—
$
0.4
$
0.4
Assembly Components
—
—
—
1.4
—
1.4
Engineered Products
—
—
—
—
5.5
5.5
Corporate
—
—
—
—
—
—
Total continuing operations
$
—
$
—
$
—
$
1.4
$
5.9
$
7.3
Year Ended December 31,
2023
Year Ended December 31,
2022
Supply Technologies
$
—
$
0.2
$
0.2
$
—
$
1.6
$
1.6
Assembly Components
1.5
—
1.5
5.6
—
5.6
Engineered Products
0.2
4.7
4.9
—
8.4
8.4
Corporate
—
—
—
—
1.7
1.7
Total continuing operations
$
1.7
$
4.9
$
6.6
$
5.6
$
11.7
$
17.3
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 income (loss) from continuing operations attributable to
ParkOhio 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 believes that EBITDA is useful
to investors as an indication of the Company's compliance with its
Debt Service Ratio covenant in its revolving credit facility.
Additionally, EBITDA, as defined is a measure used under the
Company's revolving credit facility to determine whether the
Company may incur additional debt under such 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 loss
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 income
(loss) from continuing operations attributable to ParkOhio common
shareholders to EBITDA from continuing operations, as defined:
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
(In millions)
Income (loss) from continuing operations
attributable to ParkOhio common shareholders
$
6.9
$
(7.0
)
$
34.0
$
10.1
Add back:
Interest expense, net
11.7
10.1
45.1
33.8
Income tax expense
—
2.9
8.5
—
Depreciation and amortization
8.2
7.3
31.7
30.2
Stock-based compensation
1.6
1.8
6.5
7.2
Restructuring, business optimization and
other costs
—
4.0
6.5
13.2
Loss on sale of assets
—
3.4
0.4
3.4
Asset impairment
—
3.2
—
3.2
Acquisition-related expenses
—
0.1
0.1
0.9
EBITDA loss attributable to Designated
Subsidiary
0.7
—
2.8
—
Other
—
0.1
(1.4
)
(1.0
)
EBITDA, as defined
$
29.1
$
25.9
$
134.2
$
101.0
PARK-OHIO HOLDINGS CORP. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
December 31,
2023
2022
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$
54.8
$
58.2
Accounts receivable, net
263.3
246.3
Inventories, net
411.1
406.5
Promissory note related to financing
arrangement
—
25.0
Other current assets
95.2
89.2
Current assets held-for-sale -
discontinued operations
—
107.2
Total current assets
824.4
932.4
Property, plant and equipment, net
184.9
181.1
Operating lease right-of-use assets
44.7
54.7
Goodwill
110.2
108.9
Intangible assets, net
73.3
78.7
Pension assets
75.1
63.9
Other long-term assets
28.1
16.9
Total assets
$
1,340.7
$
1,436.6
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Trade accounts payable
$
204.0
$
221.0
Current portion of long-term debt and
short-term debt
9.4
10.9
Current portion of operating lease
liabilities
10.6
11.2
Accrued employee compensation
31.8
22.3
Financing arrangement liability
—
45.0
Other accrued expenses
107.8
94.4
Current liabilities held-for-sale -
discontinued operations
—
43.8
Total current liabilities
363.6
448.6
Long-term liabilities, less current
portion:
Long-term debt
633.4
655.1
Long-term operating lease liabilities
34.4
43.7
Deferred income taxes
9.0
10.6
Other long-term liabilities
10.4
10.7
Total long-term liabilities
687.2
720.1
Park-Ohio Holdings Corp. and Subsidiaries
shareholders' equity
280.4
256.5
Noncontrolling interests
9.5
11.4
Total equity
289.9
267.9
Total liabilities and shareholders'
equity
$
1,340.7
$
1,436.6
PARK-OHIO HOLDINGS CORP. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Year Ended December
31,
2023
2022
(In millions)
OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS
Income from continuing operations
$
33.0
$
11.4
Adjustments to reconcile income from
continuing operations to net cash provided (used) by operating
activities from continuing operations:
Depreciation and amortization
31.7
30.2
Stock-based compensation
6.5
7.2
Gain on sales of assets, net
(0.8
)
(2.4
)
Deferred income taxes
(7.2
)
(8.3
)
Changes in operating assets and
liabilities:
Accounts receivable
(14.1
)
(23.2
)
Inventories
(1.3
)
(56.0
)
Prepaid and other current assets
(1.2
)
(11.1
)
Accounts payable and accrued expenses
3.3
33.1
Other
3.5
(7.5
)
Net cash provided (used) by operating
activities from continuing operations
53.4
(26.6
)
INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS
Purchases of property, plant and
equipment
(28.2
)
(26.9
)
Proceeds from sales of assets
2.0
9.5
Proceeds from sale of discontinued
operations
15.5
—
Business acquisitions, net of cash
acquired
(1.2
)
(23.3
)
Net cash used by investing activities from
continuing operations
(11.9
)
(40.7
)
FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS
(Payments on) proceeds from revolving
credit facility, net
(22.3
)
64.8
Payments on term loans and other debt
(7.2
)
(3.6
)
Proceeds from other long-term debt
4.3
3.5
Proceeds from finance lease facilities,
net
0.9
8.5
Proceeds from down payment for sale of
discontinued operations
—
20.0
Payments related to prior acquisitions
(2.9
)
—
Dividends
(7.4
)
(7.0
)
Payments of withholding taxes on stock
awards
(2.0
)
(1.6
)
Net cash provided by financing activities
from continuing operations
(36.6
)
84.6
DISCONTINUED OPERATIONS1:
Total used by operating activities
(2.9
)
(1.0
)
Total used by investing activities
(3.9
)
(4.8
)
Total used by financing activities
(2.4
)
(3.4
)
Decrease in cash and cash equivalents from
discontinued operations
(9.2
)
(9.2
)
Effect of exchange rate changes on
cash
0.9
(4.0
)
(Decrease) increase in cash and cash
equivalents
(3.4
)
4.1
Cash and cash equivalents at beginning of
year
58.2
54.1
Cash and cash equivalents at end of
year
$
54.8
$
58.2
Income taxes paid (received), net
$
7.3
$
10.7
Interest paid
$
47.6
$
34.5
(1) - Our continuing operations exclude
the results of our Aluminum Products business unit, which was sold
December 29, 2023 and presented in discontinued operations for all
periods presented.
PARK-OHIO HOLDINGS CORP. AND
SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
(In millions)
NET SALES FROM CONTINUING
OPERATIONS:
Supply Technologies
$
177.5
$
181.0
$
763.4
$
711.5
Assembly Components
97.0
94.6
427.8
388.8
Engineered Products
114.8
106.0
468.5
392.6
Total continuing operations
$
389.3
$
381.6
$
1,659.7
$
1,492.9
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES:
Supply Technologies
$
14.0
$
10.3
$
59.0
$
45.7
Assembly Components
6.5
0.4
33.4
1.1
Engineered Products
3.8
0.1
19.1
14.8
Total segment operating income
24.3
10.8
111.5
61.6
Corporate costs
(6.6
)
(7.7
)
(28.2
)
(30.6
)
(Loss) gain on sales of assets, net
—
(0.5
)
0.8
2.4
Operating income
17.7
2.6
84.1
33.4
Other components of pension and other
postretirement benefits income, net
0.6
2.8
2.5
11.1
Interest expense, net
(11.7
)
(10.1
)
(45.1
)
(33.8
)
Income (loss) from continuing operations
before income taxes
$
6.6
$
(4.7
)
$
41.5
$
10.7
PARK-OHIO HOLDINGS CORP. AND
SUBSIDIARIES
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted operating income is a non-GAAP financial measure that
the Company is providing in this press release. Adjusted operating
income is calculated as operating income (loss) plus adjustments
for plant closure and consolidation, severance and other. The
Company presents this non-GAAP financial measure because management
uses adjusted operating income to compare its operating performance
on a consistent basis over multiple periods because they remove the
impact of certain significant non-cash credits or charges and
certain infrequent items impacting income (loss). Adjusted
operating income 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 operating income herein
may not be comparable to similarly titled measures of other
companies. The following table reconciles adjusted operating income
to operating income (loss):
Three Months Ended December
31,
2023
2022
(In millions)
Operating income (loss):
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
14.0
$
—
$
14.0
$
10.3
$
0.4
$
10.7
Assembly Components
6.5
—
6.5
0.4
1.4
1.8
Engineered Products
3.8
—
3.8
0.1
5.5
5.6
Corporate
(6.6
)
—
(6.6
)
(7.7
)
—
(7.7
)
Loss on sale of assets
—
—
—
(0.5
)
0.5
—
Adjusted operating income
$
17.7
$
—
$
17.7
$
2.6
$
7.8
$
10.4
Year Ended December
31,
2023
2022
(In millions)
Operating income (loss):
As reported
Adjustments
As adjusted
As reported
Adjustments
As adjusted
Supply Technologies
$
59.0
$
0.2
$
59.2
$
45.7
$
1.6
$
47.3
Assembly Components
33.4
1.5
34.9
1.1
5.6
6.7
Engineered Products
19.1
4.9
24.0
14.8
8.4
23.2
Corporate
(28.2
)
—
(28.2
)
(30.6
)
1.7
(28.9
)
Gain on sales of assets
0.8
(0.8
)
—
2.4
(2.4
)
—
Adjusted operating income
$
84.1
$
5.8
$
89.9
$
33.4
$
14.9
$
48.3
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, 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
December 31, 2023
Year Ended
December 31, 2023
(In millions)
Net cash provided by operating activities
from continuing operations
$
29.1
$
53.4
Less: purchases of property plant and
equipment
(7.4
)
(28.2
)
Free cash flow
$
21.7
$
25.2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305780150/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
