CLEVELAND, July 28 /PRNewswire-FirstCall/ -- Park-Ohio Holdings Corp. (Nasdaq: PKOH - News), today announced results for its second quarter ended June 30, 2004.
SIX MONTHS RESULTS
Park-Ohio reported net income of $12.5 million or $1.12 per share dilutive for the first six months of 2004, a 145% increase on net income of $5.1 million or $.47 per share dilutive in the same period of 2003. Park Ohio reported net sales of $393.3 million for the first six months of 2004, a 25% increase on sales of $314.8 million in the same period of 2003.
SECOND QUARTER RESULTS
Park-Ohio reported net income of $6.7 million or $.60 per share dilutive for the second quarter of 2004, a 148% increase on net income of $2.7 million or $.25 per share dilutive in the same period of 2003. Park Ohio reported net sales of $200.9 million for second quarter 2004, a 26% increase on sales of $159.9 million in the same quarter of 2003.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "Revenue growth continues in each of our business segments. We expect to post EPS of between $1.80 and $2.00 for 2004."
A conference call reviewing Park-Ohio's second quarter results will be broadcast live over the Internet on Thursday, July 29, commencing at 10:00 am EST. Simply log on to:
http://www.pkoh.com or
http://phx.corporate-ir.net/playerlink.zhtml?c=69908&s=wm&e=921498.
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 21 manufacturing sites and 32 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 INCOME (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Net sales $200,908 $159,916 $393,278 $314,767
Cost of products sold 167,256 134,069 329,388 264,510
Gross profit 33,652 25,847 63,890 50,257
Selling, general and
administrative expenses 19,755 15,620 37,452 30,699
Operating income 13,897 10,227 26,438 19,558
Interest expense 6,196 6,695 12,332 13,452
Income before income taxes 7,701 3,532 14,106 6,106
Income taxes 1,035 835 1,626 972
Net income $6,666 $2,697 $12,480 $5,134
Amounts per common share:
Basic $0.63 $0.26 $1.18 $0.49
Diluted $0.60 $0.25 $1.12 $0.47
Common shares used in the
computation
Basic 10,603 10,501 10,584 10,499
Diluted 11,164 10,903 11,129 10,878
Other financial data:
EBITDA, as defined $17,884 $14,337 $34,426 $27,928
Note A--The effective income tax rate for the first six months of 2004 is less than the statutory Federal income tax rate due primarily to the non-recognition of net operating loss carryforwards.
Note B--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 could be 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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Net income $6,666 $2,697 $12,480 $5,134
Add back:
Income taxes 1,035 835 1,626 972
Interest expense 6,196 6,695 12,332 13,452
Depreciation and amortization 3,937 4,009 7,904 8,212
Miscellaneous 50 101 84 158
EBITDA, as defined $17,884 $14,337 $34,426 $27,928
CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
June 30 December 31
2004 2003
(Unaudited) (Audited)
(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents $2,758 $3,718
Accounts receivable, net 142,245 100,938
Inventories 171,803 149,075
Other current assets 9,833 10,780
Total Current Assets 326,639 264,511
Property, Plant and Equipment 230,858 225,710
Less accumulated depreciation 136,214 129,559
Total Property Plant and
Equipment 94,644 96,151
Other Assets
Goodwill 82,191 82,278
Net assets held for sale 2,113 2,321
Other 63,643 62,191
Total Other Assets 147,947 146,790
Total Assets $569,230 $507,452
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $93,259 $66,158
Accrued expenses 56,977 46,623
Current portion of long-term liabilities 2,736 2,811
Total Current Liabilities 152,972 115,592
Long-Term Liabilities, less current portion
9.25% Senior Subordinated Notes due 2007 199,930 199,930
Revolving credit maturing on July 30, 2007 112,700 101,000
Other long-term debt 8,856 8,234
Other postretirement benefits and
other long-term liabilities 26,044 26,671
Total Long-Term Liabilities 347,530 335,835
Shareholders' Equity 68,728 56,025
Total Liabilities and
Shareholders' Equity $569,230 $507,452
BUSINESS SEGMENT INFORMATION (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands)
Three Months Six Months
Ended June 30 Ended June 30
2004 2003 2004 2003
NET SALES
ILS $114,849 $96,525 $231,114 $188,877
Aluminum Products 28,269 23,931 55,850 47,973
Manufactured Products 57,790 39,460 106,314 77,917
$200,908 $159,916 $393,278 $314,767
INCOME BEFORE INCOME TAXES
ILS $8,269 $6,237 $17,478 $12,085
Aluminum Products 2,744 3,222 4,331 6,800
Manufactured Products 5,229 2,598 8,521 3,746
16,242 12,057 30,330 22,631
Corporate and Other Costs (2,345) (1,830) (3,892) (3,073)
Interest Expense (6,196) (6,695) (12,332) (13,452)
$7,701 $3,532 $14,106 $6,106
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