ParkOhio Announces Record Net Sales and Strong Second Quarter 2023 Results
-
Net sales of
, increased$428 million 16% from in Q2 2022$370 million -
GAAP EPS from continuing operations of
per diluted share, an increase of$0.57 10% year-over-year -
Adjusted EPS from continuing operations of
, an increase of$0.83 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
from$19 million in Q2 2022; Adjusted operating income from continuing operations improved$14 million 77% to from$23 million year-over-year$13 million -
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
Matthew V.
SECOND QUARTER CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS
In the second quarter of 2023, net sales from continuing operations were a record
Income from continuing operations attributable to ParkOhio common shareholders in the second quarter of 2023 was
SECOND QUARTER SEGMENT RESULTS FROM CONTINUING OPERATIONS
In our Supply Technologies segment, net sales in the second quarter of 2023 were a record
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
In Engineered Products, net sales were a near-record
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
Income from continuing operations attributable to ParkOhio common shareholders in the six months ended June 30, 2023 was
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
LIQUIDITY AND CASH FLOW
At June 30, 2023, our total liquidity was
2023 OUTLOOK - CONTINUING OPERATIONS
For 2023, we now expect revenues from continuing operations to increase 10
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
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
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,
|
|
December 31,
|
||
|
(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.
PARK-OHIO HOLDINGS CORP.
(440) 947-2000
Source: Park-Ohio Holdings Corp.