ParkOhio Announces Fourth Quarter and Full Year 2023 Results and the Acquisition of EMA Indutec GmbH
- Record net sales of $1.7 billion in 2023, up 11% YoY, with GAAP EPS of $2.72 per diluted share and adjusted EPS of $3.07 per diluted share.
- EBITDA from continuing operations improved 33% to $134 million in 2023.
- Q4 net sales of $389 million, up 2% YoY, with GAAP EPS of $0.54 per diluted share.
- Strong operating cash flows of $53 million and free cash flow of $25 million in 2023.
- Outlook for 2024 includes revenue growth in mid-single digits, improvement in EPS and EBITDA.
- Completed sale of Aluminum Products business and acquired EMA Indutec GmbH for approximately $14 million.
- Conference call to discuss Q4 and full year 2023 results scheduled for March 6, 10:00 am ET.
- None.
Insights
The reported increase in net sales and GAAP EPS from Park-Ohio Holdings Corp. suggests a positive trajectory for the company's financial health. The transition from a loss in the previous year to profit per diluted share indicates a turnaround in operations. The record net sales in each business segment and overall gross margin improvement by 200 basis points year-over-year are significant indicators of efficient cost management and potential pricing power.
However, the impact of the UAW strike, which reduced net sales and EPS, highlights the company's susceptibility to labor disputes. Investors should consider the resilience of Park-Ohio's supply chain and labor relations as factors in the company's future performance. Additionally, the strong operating cash flow and free cash flow demonstrate the company's ability to generate liquidity, which has been strategically used to reduce debt and potentially fund further growth.
From a market perspective, Park-Ohio's diversified operations across Supply Technologies, Assembly Components and Engineered Products allow it to mitigate risks associated with demand fluctuations in any single market. The reported strong demand in key end markets, such as power sports and aerospace, is indicative of the company's alignment with industry growth areas.
Furthermore, the divestiture of the Aluminum Products business, which was generating losses, reflects a strategic move to streamline operations and focus on more profitable segments. The mid-single digit revenue growth projection for 2024, along with expected improvements in EPS and EBITDA, suggests confidence in the company's strategic direction and operational execution, which could influence investor sentiment positively.
Regarding the sale of the Aluminum Products business and the subsequent acquisition of EMA Indutec GmbH, these transactions demonstrate proactive corporate restructuring. The divestiture of a loss-making segment and the acquisition aimed at expanding global induction heating expertise could be seen as strategic moves to optimize the company's portfolio. The contingent nature of part of the sale proceeds based on future performance introduces a variable to consider when evaluating the company's expected cash inflows.
Legal diligence in such transactions is critical to ensure compliance with international trade and merger regulations. The acquisition of EMA also suggests an expansion of intellectual property assets, which could benefit Park-Ohio's competitive positioning in the induction heating market.
Fourth quarter:
-
Net sales from continuing operations of
$389 million 2% year-over-year -
GAAP EPS from continuing operations of
$0.54 $(0.58) - Q4 results impacted by United Auto Workers strike at light vehicle and heavy truck plants
-
Strong Q4 operating cash flows of
$29 million $22 million - Completed sale of Aluminum Products business
Full year:
-
Record net sales from continuing operations of
$1.7 billion 11% YOY, and record net sales in each business segment -
GAAP EPS from continuing operations of
$2.72 $0.83 -
Adjusted EPS from continuing operations of
$3.07 74% compared to$1.76 -
EBITDA from continuing operations improved
33% to$134 million -
Strong full year operating cash flows of
$53 million $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
“Our team delivered strong growth of
“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
Full year 2023 net sales were
FOURTH QUARTER SEGMENT RESULTS FROM CONTINUING OPERATIONS
In our Supply Technologies segment, net sales in the fourth quarter of 2023 were
In Assembly Components, which excludes the Aluminum Products business for all periods presented, net sales were
In Engineered Products, net sales were
LIQUIDITY AND CASH FLOW
At December 31, 2023, our total liquidity was
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
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
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,
Mr.
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
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
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.
PARK-OHIO HOLDINGS CORP.
(440) 947-2000
Source: Park-Ohio Holdings Corp.
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