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| 8-K - FORM 8-K - PARK OHIO HOLDINGS CORP | l42635e8vk.htm |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
|
CONTACT: | EDWARD F. CRAWFORD PARK-OHIO HOLDINGS CORP. (440) 947-2000 |
ParkOhio Announces First Quarter 2011 Earnings Per Share Increased
Over 300% as Compared to 2010
Over 300% as Compared to 2010
CLEVELAND, OHIO, May 9, 2011 — Park-Ohio Holdings Corp. (NASDAQ:PKOH) today announced
that its earnings per share for its first quarter ended March 31, 2011 increased over 300% as
compared to its first quarter of 2010.
ParkOhio
also reported net sales of $241.6 million for first quarter 2011, an increase of
$49.9 million or 26% from net sales of $191.7 million for first quarter 2010 and reported net
income of $8.7 million, or $.73 per share dilutive, for first quarter 2011, compared to net income
of $2.1 million, or $.18 per share dilutive, for first quarter 2010, an increase of 314% and 306%,
respectively.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, “We are beginning to make
progress.”
A conference call reviewing ParkOhio’s first quarter results will be broadcast live over the
Internet on Tuesday, May 10, 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 31 manufacturing
sites and 49 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.
#####
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Net sales |
$ | 241,628 | $ | 191,701 | ||||
Cost of products sold |
199,693 | 162,363 | ||||||
Gross profit |
41,935 | 29,338 | ||||||
Selling, general and administrative expenses |
25,665 | 20,968 | ||||||
Operating income |
16,270 | 8,370 | ||||||
Interest expense |
5,863 | 5,436 | ||||||
Income before income taxes |
10,407 | 2,934 | ||||||
Income taxes |
1,678 | 868 | ||||||
Net Income |
$ | 8,729 | $ | 2,066 | ||||
Amounts per common share: |
||||||||
Basic |
$ | 0.76 | $ | 0.19 | ||||
Diluted |
$ | 0.73 | $ | 0.18 | ||||
Common shares used in the computation |
||||||||
Basic |
11,460 | 11,108 | ||||||
Diluted |
11,987 | 11,647 | ||||||
Other financial data: |
||||||||
EBITDA, as defined |
$ | 20,668 | $ | 13,050 | ||||
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, | ||||||||
| 2011 | 2010 | |||||||
Net income |
$ | 8,729 | $ | 2,066 | ||||
Add back: |
||||||||
Income taxes |
1,678 | 868 | ||||||
Interest expense |
5,863 | 5,436 | ||||||
Depreciation and amortization |
3,955 | 4,168 | ||||||
Miscellaneous |
443 | 512 | ||||||
EBITDA, as defined |
$ | 20,668 | $ | 13,050 | ||||
CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Audited) | |||||||
| (In Thousands) | ||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 30,814 | $ | 35,311 | ||||
Accounts receivable, net |
146,470 | 126,409 | ||||||
Inventories |
200,707 | 192,542 | ||||||
Deferred tax assets |
10,496 | 10,496 | ||||||
Unbilled contract revenue |
13,774 | 12,751 | ||||||
Other current assets |
10,646 | 12,800 | ||||||
Total Current Assets |
412,907 | 390,309 | ||||||
Property, Plant and Equipment |
256,820 | 253,077 | ||||||
Less accumulated depreciation |
189,664 | 184,294 | ||||||
Total Property Plant and Equipment |
67,156 | 68,783 | ||||||
Other Assets |
||||||||
Goodwill |
9,671 | 9,100 | ||||||
Other |
85,227 | 84,340 | ||||||
Total Other Assets |
94,898 | 93,440 | ||||||
Total Assets |
$ | 574,961 | $ | 552,532 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Trade accounts payable |
$ | 114,972 | $ | 95,695 | ||||
Accrued expenses |
66,199 | $ | 59,487 | |||||
Current portion of long-term debt |
7,792 | $ | 13,756 | |||||
Current portion of other postretirement benefits |
2,178 | 2,178 | ||||||
Total Current Liabilities |
191,141 | 171,116 | ||||||
Long-Term Liabilities, less current portion |
||||||||
8.375% Senior Subordinated Notes due 2014 |
183,835 | 183,835 | ||||||
Revolving credit facility |
103,800 | 113,300 | ||||||
Other long-term debt |
5,058 | 5,322 | ||||||
Deferred tax liability |
9,721 | 9,721 | ||||||
Other postretirement benefits and other
long-term liabilities |
23,372 | 22,863 | ||||||
Total Long-Term Liabilities |
325,786 | 335,041 | ||||||
Shareholders’ Equity |
58,034 | 46,375 | ||||||
Total Liabilities and Shareholders’ Equity |
$ | 574,961 | $ | 552,532 | ||||
BUSINESS SEGMENT INFORMATION (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
NET SALES |
||||||||
Supply Technologies |
$ | 123,226 | $ | 94,238 | ||||
Aluminum Products |
39,041 | 36,588 | ||||||
Manufactured
Products |
79,361 | 60,875 | ||||||
| $ | 241,628 | $ | 191,701 | |||||
INCOME (LOSS) BEFORE INCOME TAXES |
||||||||
Supply Technologies |
$ | 8,633 | $ | 4,484 | ||||
Aluminum Products |
3,314 | 1,936 | ||||||
Manufactured
Products |
8,546 | 4,933 | ||||||
| 20,493 | 11,353 | |||||||
Corporate and Other Costs |
(4,223 | ) | (2,983 | ) | ||||
Interest Expense |
(5,863 | ) | (5,436 | ) | ||||
| $ | 10,407 | $ | 2,934 | |||||