CLEVELAND, May 7 /PRNewswire-FirstCall/ -- Park-Ohio Holdings Corp. (Nasdaq: PKOH), today announced results for its first quarter ended March 31, 2003.
Park-Ohio reported net income of $2.4 million or $.22 per share dilutive for the first quarter of 2003, compared to income in the first quarter of 2002 of $.1 million or $.01 per share dilutive before cumulative effect of accounting change. Park-Ohio reported net sales of $154.9 million for the first quarter of 2003 compared to net sales of $153.8 million one year earlier.
Edward F. Crawford, Chairman and Chief Executive Officer, stated,
"We continue to improve our performance with modest assistance on the revenue side."
First Quarter Business Segment Performance
ILS segment operating income increased by $.4 million or 7%, to
$5.8 million, despite a sales decrease of 4%, or $3.4 million, to
$92.4 million.
Aluminum Products segment operating income increased by $1.5 million, 69%, to $3.6 million, despite a sales decrease of 9%, or $2.4 million to
$24.0 million.
Manufactured Products segment operating income increased by $.6 million
to $1.1 million on a sales increase of 22% or $6.8 million to $38.5 million.
A conference call reviewing Park-Ohio's year-end results will be
broadcast live over the Internet on Thursday, May 8, commencing at 10:00am EDT. Simply log on to http://www.firstcallevents.com/service/ajwz381517626gf12.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 23 manufacturing sites and 35 supply chain logistics facilities.
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 March 31,
2003 2002
Net sales $154,851 $153,843
Cost of products sold 130,441 132,145
Gross profit 24,410 21,698
Selling, general and administrative expenses 15,079 14,254
Restructuring and other unusual charges 0 622
Operating income 9,331 6,822
Interest expense 6,757 6,680
Income before income taxes and
cumulative effect of accounting change 2,574 142
Income taxes 137 67
Income before cumulative effect
of accounting change 2,437 75
Cumulative effect of accounting change 0 (48,799)
Net income (loss) $2,437 ($48,724)
Amounts per common share:
Basic: Income before cumulative
effect of accounting change $0.23 $0.01
Cumulative effect of
accounting change 0.00 (4.68)
Net income (loss) $0.23 ($4.67)
Diluted: Income before cumulative
effect of accounting change $0.22 $0.01
Cumulative effect of
accounting change 0.00 (4.53)
Net income (loss) $0.22 ($4.52)
Common shares used in the computation
Basic 10,434 10,434
Diluted 10,852 10,770
Other financial data:
EBITDA, as defined $13,591 $11,774
Note A -- The Company completed the impairment tests required by Statement of Financial Standards No. 142 "Goodwill and Other Intangible Assets" and effective January 1, 2002, recorded a $48.8 million charge reflected as a cumulative effect of a change in accounting principle.
Note B -- The effective income tax rate for the first quarter of 2003 is less than the statutory Federal income tax rate due primarily to the recognition of net operating loss carryforwards.
Note C -- EBITDA reflects earnings before interest, income taxes, and non-operating income and expense (Operating Income), and excludes depreciation and amortization, non-recurring items and certain 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 data prepared in accordance with GAAP or as a measure of profitability or liquidity. The Company presents EBITDA because management believes that EBITDA could be useful to investors as an indication of the Company's ability to incur and service debt 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 income (loss) before income taxes to EBITDA, as defined:
Three Months Ended March 31,
2003 2002
Income before income taxes and
cumulative effect of accounting change $2,574 $142
Add back:
Interest expense 6,757 6,680
Depreciation and amortization 4,202 4,183
Restructuring and other unusual
charges 0 622
Miscellaneous 58 147
EBITDA, as defined $13,591 $11,774
CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
March 31 December 31
2003 2002
(Unaudited) (Audited)
(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents $3,912 $8,812
Accounts receivable, net 107,833 101,477
Inventories 153,380 151,645
Other current assets 10,321 10,307
Total Current Assets 275,446 272,241
Property, Plant and Equipment 232,303 227,426
Less accumulated depreciation 119,287 114,302
Total Property Plant and
Equipment 113,016 113,124
Other Assets
Goodwill 81,689 81,464
Net assets held for sale 12,474 19,205
Other 55,188 52,083
Total Other Assets 149,351 152,752
Total Assets $537,813 $538,117
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $69,916 $74,868
Accrued expenses 58,426 48,907
Current portion of long-term
liabilities 2,822 3,056
Total Current Liabilities 131,164 126,831
Long-Term Liabilities, less current portion
9.25% Senior Subordinated Notes due 2007 199,930 199,930
Revolving credit maturing on June 30, 2004 106,500 114,000
Other long-term debt 9,954 9,886
Other postretirement benefits 23,713 23,829
Other 3,210 3,483
Total Long-Term Liabilities 343,307 351,128
Shareholders' Equity 63,342 60,158
Total Liabilities and
Shareholders' Equity $537,813 $538,117
SOURCE Park-Ohio Holdings Corp.
05/07/2003
CONTACT: Edward F. Crawford of Park-Ohio Holdings Corp.,
+1-216-692-7200/
First Call Analyst: /
FCMN Contact: /
(PKOH)
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