ParkOhio Announces Third Quarter Results
More News related to PKOH
- Morning Movers 10/03: BNI, DDRX, BDK, AIMC, RTEC, MEDW Higher; CKEC, TPGI, IBCP, NSTC, CMLS, HEB Lower
- Morgan Joseph Downgrades Park-Ohio Holdings (PKOH) to Hold
- Park-Ohio Holdings Corp. Third Quarter 2009 Results Conference Call Webcast
- Park-Ohio Holdings (PKOH) Reports a Q3 Loss
- ParkOhio Announces Third Quarter Results
CLEVELAND, Nov. 2 /PRNewswire-FirstCall/ -- Park-Ohio Holdings Corp. (Nasdaq: PKOH) today announced results for its third quarter ended September 30, 2009.
THIRD QUARTER RESULTS
Net sales were $168.6 million for third quarter 2009, a reduction of 37% from net sales of $266.1 million for third quarter 2008. Net loss for the third quarter of 2009 was $3.2 million, or $(.29) per share dilutive compared to a net loss of $9.1 million, or $(.82) per share dilutive, for third quarter 2008.
NINE MONTHS RESULTS
Net sales were $513.3 million for the first nine months of 2009, a reduction of 37% from net sales of $819.2 million for the same period of 2008. Net loss was $5.4 million, or $(.50) per share, versus net income of $.1 million, or $.01 per share dilutive, in the same period of 2008.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "The most difficult period in the company's history has been addressed and we look forward to the next 18 months."
A conference call reviewing ParkOhio's third quarter results will be broadcast live over the Internet on Tuesday, November 3, commencing at 10:00 am Eastern Time. Simply log on to http://www.pkoh.com.
ParkOhio is a leading provider of supply management services and a manufacturer of highly engineered products. Headquartered in Cleveland, Ohio, the Company operates 28 manufacturing sites and 38 supply chain logistics facilities.
This news release contains forward-looking statements, including statements regarding future performance of the Company that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected.
Among the key factors that could cause actual results to differ materially from expectations are: the cyclical nature of the vehicular industry; timing of cost reductions; labor availability and stability; changes in economic and industry conditions, including as a result of the current global financial crisis; adverse impacts to the Company, its suppliers and customers from acts of terrorism or hostilities; the financial condition of the Company's customers and suppliers, including the impact of any bankruptcies; the Company's ability to successfully integrate the operations of acquired companies; the uncertainties of environmental, litigation or corporate contingencies; and changes in regulatory requirements. These and other risks and assumptions are described in the Company's reports that are available from the United States Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net sales $168,597 $266,148 $513,252 $819,178
Cost of products
sold 145,938 226,759 437,402 697,361
------- ------- ------- -------
Gross profit 22,659 39,389 75,850 121,817
Selling, general
and administrative
expenses 21,701 28,799 66,537 82,755
Restructuring and
impairment charges 0 17,480 0 17,480
Gain on purchase of
8.375% senior
subordinated notes (2,011) 0 (5,107) 0
------ --- ------ ---
Operating income
(loss) 2,969 (6,890) 14,420 21,582
Interest expense 5,897 6,775 17,996 20,672
----- ----- ------ ------
Income (loss)
before income
taxes (2,928) (13,665) (3,576) 910
Income taxes 296 (4,597) 1,838 779
--- ------ ----- ---
Net (loss)
income ($3,224) ($9,068) ($5,414) $131
======= ======= ======= ====
Amounts per common
share:
Basic ($0.29) ($0.82) ($0.50) $0.01
Diluted ($0.29) ($0.82) ($0.50) $0.01
Common shares used in
the computation:
Basic 11,011 11,006 10,931 11,081
Diluted 11,011 11,006 10,931 11,605
Other financial data:
EBITDA, as
defined $10,459 $17,618 $35,742 $58,205
======= ======= ======= =======
Note A--EBITDA, as defined, reflects earnings before interest, income
taxes, and excludes depreciation, amortization, certain non-cash charges
and corporate-level expenses as defined in the Company's Revolving Credit
Agreement. EBITDA is not a measure of performance under generally accepted
accounting principles ("GAAP") and should not be considered in isolation
or as a substitute for net income, cash flows from operating, investing
and financing activities and other income or cash flow statement data
prepared in accordance with GAAP or as a measure of profitability or
liquidity. The Company presents EBITDA because management believes that
EBITDA is useful to investors as an indication of the Company's
satisfaction of its Debt Service Ratio covenant in its Revolving Credit
Agreement and because EBITDA 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 herein may not be
comparable to other similarly titled measures of other companies. The
following table reconciles net (loss) income to EBITDA, as defined:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net (loss) income ($3,224) ($9,068) ($5,414) $131
Add back:
Income taxes
(benefit) 296 (4,597) 1,838 779
Interest expense 5,897 6,775 17,996 20,672
Depreciation and
amortization 4,426 5,586 14,015 15,974
Restructuring and
impairment charges 0 18,059 0 18,059
Reserve for
customer in
bankruptcy 2,139 0 4,154 0
Miscellaneous 925 863 3,153 2,590
--- --- ----- -----
EBITDA, as defined $10,459 $17,618 $35,742 $58,205
======= ======= ======= =======
Note B--In the first nine months of 2009, the Company recorded a gain of
$5.1 million on the purchase of $6.125 million principal amount of Park-
Ohio Industries, Inc. 8.375% senior subordinated notes due 2014 of which
$2.0 million was recorded in the third quarter.
Note C--In the first nine months of 2009 the Company recorded a charge of
$4.2 million to reserve for an account receivable from a customer in
bankruptcy.
Note D--In the third quarter of 2008, the Company recorded $18.1 million
of restructuring and asset impairment charges associated with the weakness
and volatility in the automotive markets ($13.8 million in the Aluminum
Products segment and $4.3 million in the Manufactured Products segment).
Inventory impairment charges of $.6 million were included in Cost of
Products Sold and $17.5 were included in Restructuring and impairment
charges.
CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
September 30, December 31,
2009 2008
(Unaudited) (Audited)
----------- ---------
(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents $19,377 $17,825
Accounts receivable, net 122,851 165,779
Inventories 199,171 228,817
Deferred tax assets 9,446 9,446
Unbilled contract revenue 9,151 25,602
Other current assets 9,113 12,818
----- ------
Total Current Assets 369,109 460,287
Property, Plant and Equipment 253,724 248,474
Less accumulated depreciation 170,514 157,832
------- -------
Total Property Plant and Equipment 83,210 90,642
Other Assets
Goodwill 4,206 4,109
Other 65,424 64,182
------ ------
Total Other Assets 69,630 68,291
------ ------
Total Assets $521,949 $619,220
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $76,165 $121,995
Accrued expenses 52,556 74,351
Current portion of long-term debt 2,369 8,778
Current portion of other postretirement
benefits 2,290 2,290
----- -----
Total Current Liabilities 133,380 207,414
Long-Term Liabilities, less current portion
8.375% Senior Subordinated Notes due 2014 188,770 198,985
Revolving credit maturing on December 31, 2010 147,800 164,600
Other long-term debt 6,051 2,283
Deferred tax liability 9,090 9,090
Other postretirement benefits and other
long-term liabilities 23,580 24,093
------ ------
Total Long-Term Liabilities 375,291 399,051
Shareholders' Equity 13,278 12,755
------ ------
Total Liabilities and Shareholders'
Equity $521,949 $619,220
======== ========
BUSINESS SEGMENT INFORMATION (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
NET SALES
Supply Technologies $82,464 $131,668 $242,879 $399,452
Aluminum Products 31,663 35,784 75,656 120,304
Manufactured Products 54,470 98,696 194,717 299,422
------ ------ ------- -------
$168,597 $266,148 $513,252 $819,178
======== ======== ======== ========
INCOME (LOSS) BEFORE INCOME TAXES
Supply Technologies $2,078 $5,259 $5,509 $16,551
Aluminum Products (1,337) (17,557) (6,793) (18,674)
Manufactured Products 3,413 10,062 20,498 37,703
----- ------ ------ ------
4,154 (2,236) 19,214 35,580
Corporate and Other Costs (1,185) (4,654) (4,794) (13,998)
Interest Expense (5,897) (6,775) (17,996) (20,672)
------ ------ ------- -------
($2,928) ($13,665) ($3,576) $910
======= ======== ======= ====
SOURCE Park-Ohio Holdings Corp.
Related Categories
Press ReleasesStocks Mentioned
+0.33Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
