CLEVELAND, Aug. 11 /PRNewswire-FirstCall/ -- Park-Ohio Holdings Corp. today announced results for its second quarter ended June 30, 2008.
SECOND QUARTER RESULTS
Net sales were $285.9 million for second quarter 2008, essentially unchanged from net sales of $286.6 million for second quarter 2007. Net income for the second quarter of 2008 was $5.7 million, or $.49 per share dilutive compared to net income of $5.8 million, or $.50 per share dilutive, for second quarter 2007.
SIX MONTHS RESULTS
Net sales were $553.0 million for the first six months of 2008, essentially unchanged from net sales of $554.5 million for the same period of 2007. Net income was $9.2 million, or $.79 per share dilutive, versus $11.1 million, or $.95 per share dilutive, in the same period of 2007.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "We are pleased with the overall performance of most of our businesses, particularly our Manufactured Products Division servicing the worldwide aerospace, rail, steel, oil and gas industries. We expect our Supply Technologies unit to continue to improve through the balance of 2008. Our automotive businesses, most notably Aluminum Products, continue to be slower than anticipated and we are taking the appropriate steps to reduce costs and implement new business."
A conference call reviewing Park-Ohio's second quarter results will be broadcast live over the Internet on Tuesday, August 12, commencing at 10:00 am Eastern Time. Simply log on to http://www.pkoh.com/ .
Park-Ohio is a leading provider of supply chain logistics services and a manufacturer of highly engineered products. Headquartered in Cleveland, Ohio, the Company operates 24 manufacturing sites and 55 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 INCOME (UNAUDITED) PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES (In Thousands, Except per Share Data) Three Months Six Months Ended Ended June 30, June 30, 2008 2007 2008 2007 ------ ------ ------ ------ Net sales $285,940 $286,636 $553,030 $554,522 Cost of products sold 242,205 244,256 470,602 473,533 ------- ------- ------- ------- Gross profit 43,735 42,380 82,428 80,989 Selling, general and administrative expenses 28,012 24,859 53,957 50,349 Gain on sale of assets held for sale 0 0 0 (2,299) - - - ------- Operating income 15,723 17,521 28,471 32,939 Interest expense 6,632 8,286 13,896 16,293 ----- ----- ------ ------ Income before income taxes 9,091 9,235 14,575 16,646 Income taxes 3,374 3,386 5,376 5,593 ----- ----- ----- ----- Net Income $5,717 $5,849 $9,199 $11,053 ====== ====== ====== ======= Amounts per common share: Basic $0.52 $0.53 $0.83 $1.00 Diluted $0.49 $0.50 $0.79 $0.95 Common shares used in the computation Basic 11,082 11,061 11,118 11,055 Diluted 11,597 11,631 11,644 11,598 Other financial data: EBITDA, as defined $21,866 $23,386 $40,587 $42,357 ======= ======= ======= ======= 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 income to EBITDA, as defined: Three Months Six Months Ended Ended June 30, June 30, 2008 2007 2008 2007 ------ ------ ------ ------ Net income $5,717 $5,849 $9,199 $11,053 Add back: Income taxes 3,374 3,386 5,376 5,593 Interest expense 6,632 8,286 13,896 16,293 Depreciation and amortization 5,155 5,280 10,388 10,527 Gain on the sale of assets held for sale 0 0 0 (2,299) Miscellaneous 988 585 1,728 1,190 --- --- ----- ----- EBITDA, as defined $21,866 $23,386 $40,587 $42,357 ======= ======= ======= ======= CONSOLIDATED CONDENSED BALANCE SHEETS PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES June 30, December 31, 2008 2007 (Unaudited) (Audited) ----------- --------- (In Thousands) ASSETS Current Assets Cash and cash equivalents $32,678 $14,512 Accounts receivable, net 194,451 172,357 Inventories 233,056 215,409 Deferred tax assets 21,976 21,897 Unbilled contract revenue 21,570 24,817 Other current assets 15,705 15,232 ------ ------ Total Current Assets 519,436 464,224 Property, Plant and Equipment 275,804 266,222 Less accumulated depreciation 170,222 160,665 ------- ------- Total Property Plant and Equipment 105,582 105,557 Other Assets Goodwill 101,060 100,997 Net assets held for sale 3,203 3,330 Other 102,547 95,081 ------- ------- Total Other Assets 206,810 199,408 ------- ------- Total Assets $831,828 $769,189 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade accounts payable $139,311 $121,875 Accrued expenses 78,813 67,007 Current portion of long-term debt 8,172 2,362 Current portion of other postretirement benefits 2,041 2,041 ----- ----- Total Current Liabilities 228,337 193,285 Long-Term Liabilities, less current portion 8.375% Senior Subordinated Notes due 2014 210,000 210,000 Revolving credit maturing on December 31, 2010 164,400 145,400 Other long-term debt 2,770 2,287 Deferred tax liability 22,722 22,722 Other postretirement benefits and other long-term liabilities 23,227 24,017 ------ ------ Total Long-Term Liabilities 423,119 404,426 Shareholders' Equity 180,372 171,478 ------- ------- Total Liabilities and Shareholders' Equity $831,828 $769,189 ======== ======== BUSINESS SEGMENT INFORMATION (UNAUDITED) PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES (In Thousands) Three Months Six Months Ended Ended June 30, June 30, 2008 2007 2008 2007 ------ ------ ------ ------ NET SALES Supply Technologies $138,551 $131,133 $267,784 $269,890 Aluminum Products 43,984 48,563 84,520 90,650 Manufactured Products 103,405 106,940 200,726 193,982 --------- --------- --------- --------- $285,940 $286,636 $553,030 $554,522 ========= ========= ========= ========= INCOME BEFORE INCOME TAXES Supply Technologies $6,585 $5,548 $11,292 $12,132 Aluminum Products (62) 1,404 (1,117) 2,154 Manufactured Products 14,419 14,164 27,641 23,673 --------- --------- --------- --------- 20,942 21,116 37,816 37,959 Corporate and Other Costs (5,219) (3,595) (9,345) (5,020) Interest Expense (6,632) (8,286) (13,896) (16,293) --------- --------- --------- --------- $9,091 $9,235 $14,575 $16,646 ========= ========= ========= =========
