EX-99.1 2 l39586exv99w1.htm EX-99.1 exv99w1
EXHIBIT 99.1
         
FOR IMMEDIATE RELEASE
  CONTACT:   EDWARD F. CRAWFORD
 
      PARK-OHIO HOLDINGS CORP.
 
      (440) 947-2000
ParkOhio Announces First Quarter Results
     CLEVELAND, OHIO, May 3, 2010 — Park-Ohio Holdings Corp. (NASDAQ:PKOH) today announced results for its first quarter ended March 31, 2010.
     ParkOhio reported net sales of $191.7 million for first quarter 2010, an increase of $10.4 million from net sales of $181.3 million for first quarter 2009. ParkOhio reported net income of $2.1 million, or $.18 per share dilutive, for first quarter 2010, compared to a net loss of ($5.5) million, or ($.50) per share dilutive, for first quarter 2009.
     Edward F. Crawford, Chairman and Chief Executive Officer, stated, “We are pleased with the start to 2010. Most business units performed ahead of our expectations and continue to build momentum for the balance of the year.”
     A conference call reviewing ParkOhio’s first quarter results will be broadcast live over the Internet on Tuesday, May 4, 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 40 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; 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.
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
                 
    Three Months Ended  
    March 31,  
    2010     2009  
Net sales
   $ 191,701     $ 181,250  
Cost of products sold
     162,363       157,388  
 
            
Gross profit
     29,338       23,862  
Selling, general and administrative expenses
     20,968       22,621  
 
            
Operating income
     8,370       1,241  
Interest expense
     5,436       5,971  
 
            
 
Income (loss) before income taxes
     2,934       (4,730 )
Income taxes
     868       732  
 
            
Net Income (loss)
   $ 2,066       ($5,462 )
 
            
 
Amounts per common share:
                
Basic
   $ 0.19       ($0.50 )
Diluted
   $ 0.18       ($0.50 )
 
Common shares used in the computation:
                
Basic
     11,108       10,950  
Diluted
     11,647       10,950  
 
Other financial data:
                
EBITDA, as defined
   $ 13,050     $ 7,726  
 
            
Note A—EBITDA, as defined, reflects earnings before interest and 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 income to EBITDA, as defined:
                 
    Three Months Ended  
    March 31,  
    2009     2008  
Net income (loss)
   $ 2,066       ($5,462 )
 
Add back:
                
Income taxes
     868       732  
Interest expense
     5,436       5,971  
Depreciation and amortization
     4,168       5,194  
Miscellaneous
     512       1,291  
 
            
EBITDA, as defined
   $ 13,050     $ 7,726  
 
            

 

 

CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
                 
    March 31,     December 31,  
    2010     2009  
    (Unaudited)     (Audited)  
    (In Thousands)  
ASSETS
                
 
Current Assets
                
Cash and cash equivalents
   $ 28,134     $ 23,098  
Accounts receivable, net
     120,048       104,643  
Inventories
     173,290       182,116  
Deferred tax assets
     8,104       8,104  
Unbilled contract revenue
     20,570       19,411  
Other current assets
     10,529       12,700  
 
            
Total Current Assets
     360,675       350,072  
 
Property, Plant and Equipment
     245,857       245,240  
Less accumulated depreciation
     172,482       168,609  
 
            
Total Property Plant and Equipment
     73,375       76,631  
 
Other Assets
                
Goodwill
     3,983       4,155  
Other
     77,224       71,410  
 
            
Total Other Assets
     81,207       75,565  
 
            
Total Assets
   $ 515,257     $ 502,268  
 
            
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
Current Liabilities
                
Trade accounts payable
   $ 86,600     $ 75,083  
Accrued expenses
     45,286     $ 39,150  
Current portion of long-term debt
     10,748     $ 10,894  
Current portion of other postretirement benefits
     2,197       2,197  
 
            
Total Current Liabilities
     144,831       127,324  
 
Long-Term Liabilities, less current portion
                
8.375% Senior Subordinated Notes due 2014
     183,835       183,835  
Revolving credit facility maturing on June 30, 2013
     130,400       134,600  
Other long-term debt
     4,563       4,668  
Deferred tax liability
     7,200       7,200  
Other postretirement benefits and other long-term liabilities
     21,272       21,831  
 
            
Total Long-Term Liabilities
     347,270       352,134  
 
Shareholders’ Equity
     23,156       22,810  
 
            
Total Liabilities and Shareholders’ Equity
   $ 515,257     $ 502,268  
 
            

 

 

BUSINESS SEGMENT INFORMATION (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)
                 
    Three Months Ended March 31,  
    2010     2009  
NET SALES
                
 
Supply Technologies
   $ 94,238     $ 82,971  
Aluminum Products
     36,588       22,358  
Manufactured Products
     60,875       75,921  
 
            
 
   $ 191,701     $ 181,250  
 
            
INCOME (LOSS) BEFORE INCOME TAXES
                
 
Supply Technologies
   $ 4,484     $ 546  
Aluminum Products
     1,936       (3,662 )
Manufactured Products
     4,933       7,712  
 
            
 
     11,353       4,596  
 
Corporate and Other Costs
     (2,983 )     (3,355 )
Interest Expense
     (5,436 )     (5,971 )
 
            
 
   $ 2,934       ($4,730 )