CLEVELAND, Feb. 25 /PRNewswire-FirstCall/ -- Park-Ohio Holdings Corp. (Nasdaq: PKOH), today announced results for the fourth quarter and the year ended December 31, 2002.
FULL YEAR RESULTS
Park-Ohio reported net sales of $634.5 million for 2002, compared to sales of $636.4 million in 2001. Park-Ohio reported net income, as adjusted(A), of $4.5 million or $.41 per share dilutive for 2002, compared to a net loss of ($2.1) million or ($.21) per share in 2001. Including all unusual charges, Park-Ohio reported a loss before cumulative effect of accounting change of ($12.4) million or ($1.18) per share for 2002 compared to a net loss of ($26.0) million or ($2.49) per share in 2001.
FOURTH QUARTER RESULTS
Park-Ohio reported net sales of $156.6 million for the fourth quarter of 2002, a 7% increase compared to sales of $146.7 million in the fourth quarter of 2001. Park-Ohio reported net income, as adjusted(B), of $2.0 million or $.19 per share dilutive for the fourth quarter of 2002, compared to a net loss of ($2.5) million or ($.24) per share in the same period of 2001. Including all unusual charges, Park-Ohio reported a net loss of ($11.6) million or ($1.12) per share in the fourth quarter of 2002 compared to a fourth quarter net loss of ($22.0) million or ($2.11) per share in 2001.
(Note A) Full year 2002 net income, as adjusted, excludes the after-tax
impact of restructuring and other unusual charges of
$19.2 million in 2002 and $30.3 million in 2001, and goodwill
amortization of $3.7 million in 2001.
(Note B) Fourth quarter net income, as adjusted, excludes the after-tax
impact of restructuring and other unusual charges of
$13.9 million in 2002 and $27.5 million in 2001, and goodwill
amortization of $935 thousand in 2001.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "Although revenues were stagnant in 2002 we were able to increase EBITDA year over year by 17% ($52.2 million compared to $44.5 million in 2001). Our initiative to reduce bank debt produced a reduction of 10% ($126.0 million down to $114.0 million), and we continue to pursue the sale of non-core assets and anticipate cash receipts of approximately $10.0 million by April 1, 2003."
As a result of the implementation of FAS 142 the Company also recorded a non-cash goodwill impairment charge, which reduced goodwill from $130.4 million to $81.6 million and was recorded as the cumulative effect of a change in accounting principle effective January 1, 2002. This charge is consistent with the Company's prior forecast and will have no effect on the future operating results of the company.
A conference call reviewing Park-Ohio's year-end results will be
broadcast live over the Internet on Wednesday, February 26, commencing at 10:00 am EST. Simply log on to http://www.firstcallevents.com/service/ajwz375974776gf12.html .
Park-Ohio is a leading provider of supply chain logistics services, and a manufacturer of highly engineered products for industrial original equipment manufacturers. Headquartered in Cleveland, Ohio, the Company operates
25 manufacturing sites and 40 logistics services warehouses.
This news release contains forward-looking statements 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 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)
Three Months Ended Year Ended
December 31 December 31
2002 2001 2002 2001
Net sales $156,621 $146,661 $634,455 $636,417
Cost of products sold 138,294 138,269 546,857 552,595
Gross profit 18,327 8,392 87,598 83,822
Selling, general and
administrative expenses 14,346 15,347 57,830 66,321
Amortization of goodwill 0 935 0 3,733
Restructuring and other unusual
charges 8,339 17,151 13,601 18,163
Operating income (loss) (4,358) (25,041) 16,167 (4,395)
Interest expense 6,995 7,452 27,623 31,108
Non-operating expenses 0 0 0 1,850
Loss before income taxes and
cumulative effect of
accounting change (11,353) (32,493) (11,456) (37,353)
Income taxes (benefit) 287 (10,475) 897 (11,400)
Loss before cumulative effect
of accounting change (11,640) (22,018) (12,353) (25,953)
Cumulative effect of accounting
change (48,799) 0 (48,799) 0
Net loss ($60,439) ($22,018) ($61,152) ($25,953)
Net loss per common share:
Basic and diluted -before
effect of accounting change ($1.12) ($2.11) ($1.18) ($2.49)
Basic and diluted -after
effect of accounting change ($5.79) ($2.11) ($5.86) ($2.49)
Common shares used in the
computation
Basic and diluted 10,434 10,434 10,434 10,434
Other financial data:
EBITDA, as defined $13,061 $7,046 $52,244 $44,487
Note A--In the fourth quarter of 2002, the Company recorded primarily non-
cash charges of $13.9 million for restructuring and disposition of
non-performing assets related to management decisions, as approved by the
board of directors to exit certain under-performing product lines. The
charges are composed of $5.6 million for the impairment of inventory which
is included in cost of products sold, and $8.3 million for other
restructuring and asset impairment charges which are reflected in
restructuring and other unusual charges.
Note B--The 2002 results reflect the elimination of goodwill amortization,
in conjunction with implementing Statement of Financial Accounting
Standard No. 142 "Goodwill and Other Intangible Assets." The Company
completed the impairment tests required and effective January 1, 2002,
recorded a $48.8 million charge reflected as a cumulative effect of a
change in accounting principle. The non-cash impairment charge will have
no effect on the future operating results of the Company.
Note C-- EBITDA, as defined in the Company's bank credit agreement,
represents EBITDA adjusted for non-operating income and expenses,
restructuring and other unusual charges and Park-Ohio Holdings
corporate-level expenses.
SOURCE Park-Ohio Holdings Corp.
02/25/2003
CONTACT: Edward F. Crawford of Park-Ohio Holdings Corp.,
1-216-692-7200/
First Call Analyst:
Audio: http://www.firstcallevents.com/service/ajwz375974776gf12.html/
(PKOH)
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