Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for
the third quarter of 2014.
THIRD QUARTER RESULTS
Net sales were a quarterly record $344.6 million for the third quarter
of 2014, an increase of $41.1 million, or 13.5%, from net sales of
$303.5 million for the third quarter of 2013.
ParkOhio reported net income attributable to ParkOhio common
shareholders of $12.4 million, or $1.00 per diluted share, for the third
quarter of 2014. This compared to net income attributable to ParkOhio
common shareholders of $12.2 million, or $0.99 per diluted share, for
the third quarter of 2013, which included the impact of the net gain of
$3.7 million, or $0.30 per diluted share, from discontinued operations,
net of taxes, for the sale of a non-core business unit in the Supply
Technologies segment. Earnings from continuing operations attributable
to ParkOhio common shareholders, which excludes the impact of the gain
from discontinued operations, increased 44.9% to $1.00 per diluted share
in the third quarter of 2014 from $0.69 per diluted share in the third
quarter of 2013. As adjusted earnings increased 23.7% in the third
quarter of 2014 to $1.15 per diluted share compared to $0.93 per diluted
share in the third quarter of 2013. Please refer to the table that
follows for a reconciliation of earnings from continuing operations to
as adjusted earnings.
In addition, EBITDA, as defined was a quarterly record $35.8 million
during the third quarter of 2014 and increased 21.8% compared to EBITDA,
as defined of $29.4 million during the third quarter of 2013.
YEAR-TO-DATE RESULTS
Net sales were $1,005.7 million for the first nine months of 2014, an
increase of $111.9 million, or 12.5%, from net sales of $893.8 million
for the first nine months of 2013.
ParkOhio reported net income attributable to ParkOhio common
shareholders of $34.9 million, or $2.82 per diluted share, for the first
nine months of 2014. This compares to net income attributable to
ParkOhio common shareholders of $34.5 million, or $2.83 per diluted
share, for the first nine months of 2013, which included the impact of
the net gain of $3.2 million, or $0.26 per diluted share, from
discontinued operations, net of taxes. Earnings from continuing
operations attributable to ParkOhio common shareholders, which excludes
the impact of the gain from discontinued operations, increased 9.7% to
$2.82 per diluted share in the first nine months of 2014 from $2.57 per
diluted share in the first nine months of 2013. As adjusted earnings
increased 4.6% in the first nine months of 2014 to $2.94 per diluted
share compared to $2.81 per diluted share in the first nine months of
2013. Please refer to the table that follows for a reconciliation of
earnings from continuing operations to as adjusted earnings.
In addition, EBITDA, as defined was $96.6 million during the first nine
months of 2014 and increased 8.8% compared to EBITDA, as defined of
$88.8 million during the first nine months of 2013.
CURRENT DEVELOPMENTS
On October 10, 2014, we acquired Autoform Tool & Manufacturing, Inc.
("ATM"), headquartered in Angola, Indiana. ATM is a major supplier of
high pressure fuel rails and high and low pressure fuel lines used in
Gasoline Direct Injection (GDI) systems utilized by automotive and truck
manufacturers and will be included in our Assembly Components segment.
ATM is a leader in gas injection technology, which reduces CO2
emissions and increases engine efficiency. We expect ATM's annual
revenues to exceed $70 million in 2015. The purchase price was
approximately $48.9 million and was financed with borrowings under our
credit facility.
On October 24, 2014, we amended our credit facility to increase the
aggregate domestic revolving commitments under the credit agreement to
$250.0 million, increased the term loan up to $35.0 million subject to
securing satisfactory equipment appraisals, and increased the advance
rates on eligible inventory to provide for approximately $22.0 million
of additional credit availability under the revolving credit facility.
Additionally, we increased our Canadian and European sub-limit to $25.0
million each.
2014 REVENUE AND EARNINGS GUIDANCE UPDATE
We currently forecast our consolidated 2014 revenues to be approximately
13.5% to 14.5% greater than 2013 revenues. We are also updating our
forecast of earnings from continuing operations attributable to ParkOhio
common shareholders per diluted share to be in the range of $3.99 to
$4.19 per diluted share, which is 20.5% to 26.6% greater than the
earnings from continuing operations attributable to ParkOhio common
shareholders of $3.31 per diluted share in 2013. As adjusted earnings
are forecasted to increase 12.6% to 18.0% in 2014 to be in the range of
$4.12 to $4.32 per diluted share compared to $3.66 per diluted share in
2013. The increase in 2014 forecasted as adjusted earnings per diluted
share is primarily attributable to the growth in the Supply Technologies
segment and the Assembly Components segment and the expected strong
fourth quarter for the Engineered Products segment. Please refer to the
table that follows for a reconciliation of forecasted earnings from
continuing operations to as adjusted earnings.
In addition, we are forecasting EBITDA, as defined, to be in the range
of $132.5 million to $137.0 million for the year ended December 31,
2014. EBITDA, as defined, reflects earnings before interest expense,
income taxes, and excludes depreciation, amortization, certain non-cash
charges and corporate-level expenses as defined in the Company's
revolving credit agreement.
Edward F. Crawford, Chairman and Chief Executive Officer stated, "We are
very pleased with our revenue and EBITDA growth records that we
established in the third quarter, and we look forward to setting new
records with our most recent acquisition of Autoform."
A conference call reviewing ParkOhio's third quarter results will be
broadcast live over the Internet on Wednesday, November 5, 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 41 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.
These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance and achievements, or industry results, to be materially
different from any future results, performance or achievements expressed
or implied by such forward-looking statements. These factors that could
cause actual results to differ materially from expectations include, but
are not limited to the following: our ability to successfully integrate
ATM and achieve the expected results of the acquisition, including the
acquisition being accretive; our substantial indebtedness; the
uncertainty of the global economic environment; general business
conditions and competitive factors, including pricing pressures and
product innovation; demand for our products and services; raw material
availability and pricing; fluctuations in energy costs; component part
availability and pricing; changes in our relationships with customers
and suppliers; the financial condition of our customers, including the
impact of any bankruptcies; our ability to successfully integrate other
recent and future acquisitions into existing operations; the amounts and
timing, if any, of purchases of our common stock; changes in general
domestic economic conditions such as inflation rates, interest rates,
tax rates, unemployment rates, higher labor and healthcare costs,
recessions and changing government policies, laws and regulations,
including the uncertainties related to the current global financial
crises; adverse impacts to us, our suppliers and customers from acts of
terrorism or hostilities; our ability to meet various covenants,
including financial covenants, contained in the agreements governing our
indebtedness; disruptions, uncertainties or volatility in the credit
markets that may limit our access to capital; potential disruption due
to a partial or complete reconfiguration of the European Union;
increasingly stringent domestic and foreign governmental regulations,
including those affecting the environment; inherent uncertainties
involved in assessing our potential liability for environmental
remediation-related activities; the outcome of pending and future
litigation and other claims and disputes with customers; the outcome of
the investigation being conducted by the special committee of our Board
of Directors; our dependence on the automotive and heavy-duty truck
industries, which are highly cyclical; the dependence of the automotive
industry on consumer spending, which could be lower due to the effects
of the recent financial crises; our ability to negotiate contracts with
labor unions; our dependence on key management; our dependence on
information systems; our ability to continue to pay cash dividends; and
the other factors we describe under the "Item 1A. Risk Factors" included
in the Company's annual report on Form 10-K for the year ended
December 31, 2013. Any forward-looking statement speaks only as of the
date on which such statement is made, and we undertake no obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by law. In
light of these and other uncertainties, the inclusion of a
forward-looking statement herein should not be regarded as a
representation by us that our plans and objectives will be achieved. The
Company assumes no obligation to update the information in this release.
Park-Ohio Holdings Corp. and Subsidiaries Condensed
Consolidated Statements of Income (Unaudited) |
|
| |
| |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| | (In millions, except earnings per share data) |
Net sales
| |
$
|
344.6
| | |
$
|
303.5
| | |
$
|
1,005.7
| | |
$
|
893.8
| |
Cost of sales
| |
284.0
|
| |
248.9
|
| |
828.1
|
| |
730.1
|
|
Gross profit
| |
60.6
| | |
54.6
| | |
177.6
| | |
163.7
| |
Selling, general and administrative expenses
| |
34.2
| | |
31.1
| | |
102.9
| | |
92.2
| |
Litigation judgment costs
| |
-
|
| |
5.2
|
| |
-
|
| |
5.2
|
|
Operating income
| |
26.4
| | |
18.3
| | |
74.7
| | |
66.3
| |
Gain on acquisition of business
| |
-
| | |
(0.6
|
)
| |
-
| | |
(0.6
|
)
|
Interest expense
| |
6.5
|
| |
6.5
|
| |
19.4
|
| |
19.4
|
|
Income from continuing operations before income taxes
| |
19.9
| | |
12.4
| | |
55.3
| | |
47.5
| |
Income tax expense
| |
7.4
|
| |
3.7
|
| |
19.6
|
| |
16.0
|
|
Net income from continuing operations
| |
12.5
| | |
8.7
| | |
35.7
| | |
31.5
| |
Income from discontinued operations, net of taxes
| |
-
|
| |
3.7
|
| |
-
|
| |
3.2
|
|
Net income
| |
12.5
| | |
12.4
| | |
35.7
| | |
34.7
| |
Net income attributable to noncontrolling interest
| |
(0.1
|
)
| |
(0.2
|
)
| |
(0.8
|
)
| |
(0.2
|
)
|
Net income attributable to ParkOhio common shareholders
| |
$
|
12.4
|
| |
$
|
12.2
|
| |
$
|
34.9
|
| |
$
|
34.5
|
|
| | | | | | | | | | | |
|
Earnings per common share attributable to ParkOhio common
shareholders - Basic:
| | | | | | | | | | | | |
Continuing operations
| |
$
|
1.02
| | |
$
|
0.71
| | |
$
|
2.88
| | |
$
|
2.63
| |
Discontinued operations
| |
-
|
| |
0.31
|
| |
-
|
| |
0.27
|
|
Total
| |
$
|
1.02
|
| |
$
|
1.02
|
| |
$
|
2.88
|
| |
$
|
2.90
|
|
Earnings per common share attributable to ParkOhio common
shareholders - Diluted:
| | | | | | | | | | | | |
Continuing operations
| |
$
|
1.00
| | |
$
|
0.69
| | |
$
|
2.82
| | |
$
|
2.57
| |
Discontinued operations
| |
-
|
| |
0.30
|
| |
-
|
| |
0.26
|
|
Total
| |
$
|
1.00
|
| |
$
|
0.99
|
| |
$
|
2.82
|
| |
$
|
2.83
|
|
Weighted-average shares used to compute earnings per share:
| | | | | | | | | | | | |
Basic
| |
12.1
|
| |
12.0
|
| |
12.1
|
| |
11.9
|
|
Diluted
| |
12.4
|
| |
12.3
|
| |
12.4
|
| |
12.2
|
|
| | | | | | | | | | | |
|
Dividend per common share
| |
$
|
0.125
|
| |
$
|
-
|
| |
$
|
0.250
|
| |
$
|
-
|
|
| | | | | | | | | | | |
|
Other financial data:
| | | | | | | | | | | | |
EBITDA, as defined
| |
$
|
35.8
|
| |
$
|
29.4
|
| |
$
|
96.6
|
| |
$
|
88.8
|
|
| | | | | | | | | | | | | | | |
|
Park-Ohio Holdings Corp. and Subsidiaries
Supplemental
Non-GAAP Financial Measures (Unaudited)
As adjusted earnings are a measure of earnings that excludes significant
non-cash credits and charges; and significant and infrequent contingency
expenses. As adjusted earnings reflect net income from continuing
operations after: the exclusion of net income attributable to
noncontrolling interest and before the inclusion of acquisition-related
costs in cost of sales and in selling, general and administrative
("SG&A") expenses, currency exchange losses or (gains) related to
non-permanent intercompany loans in SG&A expenses, litigation judgment
costs and gain on acquisition of business. The acquisition-related costs
in cost of sales relate to the fair value measurements to inventory
acquired from the acquisitions that were expensed during the periods
presented. Acquisition-related costs in SG&A expenses relate to
contingent consideration expenses related to certain acquisitions. As
adjusted earnings are 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 from continuing operations,
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 as
adjusted earnings because management uses as adjusted earnings to
measure performance. As adjusted earnings herein may not be comparable
to other similarly titled measures of other companies. The following
table reconciles net income from continuing operations to as adjusted
earnings:
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| | Earnings |
| Diluted EPS | | Earnings |
| Diluted EPS | | Earnings |
| Diluted EPS | | Earnings |
| Diluted EPS |
| | (In millions, except for earnings per share (EPS)) |
Net income from continuing operations
| |
$
|
12.5
| | |
$
|
1.01
| | |
$
|
8.7
| | |
$
|
0.71
| | |
$
|
35.7
| | |
$
|
2.88
| | |
$
|
31.5
| | |
$
|
2.59
| |
Net income attributable to noncontrolling interest
| |
(0.1
|
)
| |
(0.01
|
)
| |
(0.2
|
)
| |
(0.02
|
)
| |
(0.8
|
)
| |
(0.06
|
)
| |
(0.2
|
)
| |
(0.02
|
)
|
Earnings from continuing operations attributable to ParkOhio common
shareholders
| |
12.4
| | |
1.00
| | |
8.5
| | |
0.69
| | |
34.9
| | |
2.82
| | |
31.3
| | |
2.57
| |
Add back:
| | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition-related costs in cost of sales, net of tax benefit
| |
0.1
| | |
0.01
| | |
-
| | |
-
| | |
0.1
| | |
0.01
| | |
-
| | |
-
| |
Acquisition-related costs in SG&A expenses, net of tax benefit
| |
0.2
| | |
0.02
| | |
-
| | |
-
| | |
0.7
| | |
0.06
| | |
-
| | |
-
| |
Currency exchange losses related to non-permanent intercompany loans
in SG&A expenses, net of tax benefit
| |
1.5
| | |
0.12
| | |
-
| | |
-
| | |
0.6
| | |
0.05
| | |
-
| | |
-
| |
Litigation judgment costs, net of tax
| |
-
| | |
-
| | |
3.3
| | |
0.27
| | |
-
| | |
-
| | |
3.3
| | |
0.27
| |
Gain on acquisition of business, net of tax expense
| |
-
|
| |
-
|
| |
(0.4
|
)
| |
(0.03
|
)
| |
-
|
| |
-
|
| |
(0.4
|
)
| |
(0.03
|
)
|
As adjusted earnings
| |
$
|
14.2
|
| |
$
|
1.15
|
| |
$
|
11.4
|
| |
$
|
0.93
|
| |
$
|
36.3
|
| |
$
|
2.94
|
| |
$
|
34.2
|
| |
$
|
2.81
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
EBITDA, as defined reflects net income attributable to ParkOhio common
shareholders before interest expense and income taxes, and excludes
depreciation, amortization, certain non-cash charges and corporate-level
expenses as defined in the Company's revolving credit agreement. The
acquisition-related costs in cost of sales relate to the fair value
measurements to inventory acquired from the acquisitions that were
expensed during the periods presented. Acquisition-related costs in SG&A
expenses relate to contingent consideration expenses related to certain
acquisitions. EBITDA, as defined is not a measure of performance under
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, as defined because management uses EBITDA, as
defined to assess the Company's performance and believes that EBITDA, as
defined is useful to investors as an indication of the Company's
satisfaction of its debt service ratio covenant in its revolving credit
agreement. Additionally, EBITDA, as defined 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 attributable to ParkOhio
common shareholders to EBITDA, as defined:
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| | (In millions) |
Net income attributable to ParkOhio common shareholders
| |
$
|
12.4
| | |
$
|
12.2
| | |
$
|
34.9
| | |
$
|
34.5
|
Add back:
| | | | | | | | | | | |
Interest expense
| |
6.5
| | |
6.5
| | |
19.4
| | |
19.4
|
Income tax expense
| |
7.4
| | |
4.9
| | |
19.6
| | |
16.9
|
Depreciation and amortization
| |
5.7
| | |
4.0
| | |
16.3
| | |
13.5
|
Share-based compensation
| |
1.7
| | |
1.2
| | |
4.2
| | |
3.6
|
Acquisition-related costs in cost of sales
| |
0.2
| | |
-
| | |
0.2
| | |
-
|
Acquisition-related costs in SG&A
| |
0.2
| | |
-
| | |
0.9
| | |
-
|
Currency exchange losses related to non-permanent intercompany loans
in SG&A expenses
| |
1.7
| | |
-
| | |
0.7
| | |
-
|
Deferred tax impact net in acquisition gain
| |
-
| | |
0.4
| | |
-
| | |
0.4
|
Miscellaneous
| |
-
|
| |
0.2
|
| |
0.4
|
| |
0.5
|
EBITDA, as defined
| |
$
|
35.8
|
| |
$
|
29.4
|
| |
$
|
96.6
|
| |
$
|
88.8
|
| | | | | | | | | | | | | | |
|
Park-Ohio Holdings Corp. and Subsidiaries Condensed
Consolidated Balance Sheets |
|
| | |
| |
| | (Unaudited) | | | |
| | September 30, 2014 | | | December 31, 2013 |
| | (In millions) |
ASSETS |
Current assets:
| | | | | | |
Cash and cash equivalents
| |
$
|
62.5
| | | |
$
|
55.2
|
Accounts receivable, net
| |
202.0
| | | |
165.7
|
Inventories, net
| |
230.3
| | | |
221.4
|
Deferred tax assets
| |
26.3
| | | |
25.2
|
Unbilled contract revenue
| |
10.7
| | | |
8.7
|
Other current assets
| |
13.9
|
| | |
20.1
|
Total current assets
| |
545.7
| | | |
496.3
|
Property, plant and equipment, net
| |
116.6
| | | |
115.4
|
Goodwill
| |
61.7
| | | |
60.4
|
Intangible assets, net
| |
64.1
| | | |
66.2
|
Other long-term assets
| |
85.7
|
| | |
80.4
|
Total assets
| |
$
|
873.8
|
| | |
$
|
818.7
|
| | | | | |
|
LIABILITIES AND SHAREHOLDERS' EQUITY | | |
Current liabilities:
| | | | | | |
Trade accounts payable
| |
$
|
132.7
| | | |
$
|
112.0
|
Accrued expenses and other
| |
90.3
|
| | |
86.0
|
Total current liabilities
| |
223.0
| | | |
198.0
|
Long-term liabilities, less current portion:
| | | | | | |
Debt
| |
376.7
| | | |
379.2
|
Deferred tax liabilities
| |
47.0
| | | |
45.3
|
Other postretirement benefits and other long-term liabilities
| |
33.2
|
| | |
32.2
|
Total long-term liabilities
| |
456.9
| | | |
456.7
|
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity
| |
188.1
| | | |
159.0
|
Noncontrolling interest
| |
5.8
|
| | |
5.0
|
Total equity
| |
193.9
|
| | |
164.0
|
Total liabilities and shareholders' equity
| |
$
|
873.8
|
| | |
$
|
818.7
|
| | | | | | | |
|
Park-Ohio Holdings Corp. and Subsidiaries Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
| |
| | Nine Months Ended September 30, |
| | 2014 |
| 2013 |
| | (In millions) |
OPERATING ACTIVITIES | | | | | | |
Net income
| |
$
|
35.7
| | |
$
|
34.7
| |
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | |
Depreciation and amortization
| |
16.3
| | |
13.5
| |
Share-based compensation
| |
4.2
| | |
3.6
| |
Gain on sale of assets
| |
(1.6
|
)
| |
(6.0
|
)
|
Gain on acquisition
| |
-
| | |
(0.6
|
)
|
Other
| |
0.9
| | |
-
| |
Changes in operating assets and liabilities, excluding business
acquisitions:
| | | | | | |
Accounts receivable
| |
(33.9
|
)
| |
(13.7
|
)
|
Inventories and other current assets
| |
(4.5
|
)
| |
(1.3
|
)
|
Accounts payable and accrued expenses
| |
24.9
| | |
5.2
| |
Other
| |
(8.5
|
)
| |
1.5
|
|
Net cash provided by operating activities
| |
33.5
| | |
36.9
| |
INVESTING ACTIVITIES | | | | | | |
Purchases of property, plant and equipment
| |
(13.9
|
)
| |
(24.4
|
)
|
Proceeds from sale and leaseback transactions
| |
-
| | |
7.1
| |
Proceeds from sale of assets
| |
2.0
| | |
14.2
| |
Business acquisitions, net of cash acquired
| |
(5.4
|
)
| |
(21.6
|
)
|
Net cash used by investing activities
| |
(17.3
|
)
| |
(24.7
|
)
|
FINANCING ACTIVITIES | | | | | | |
Payments on term loans and other debt
| |
(4.1
|
)
| |
(3.1
|
)
|
(Payments on) proceeds from revolving credit facility, net
| |
(0.5
|
)
| |
12.6
| |
Issuance of common stock under the incentive compensation plan
| |
0.7
| | |
0.2
| |
Dividends
| |
(3.1
|
)
| |
-
| |
Purchase of treasury stock
| |
(3.7
|
)
| |
(2.0
|
)
|
Other
| |
(1.3
|
)
| |
-
|
|
Net cash (used) provided by financing activities
| |
(12.0
|
)
| |
7.7
| |
Effect of exchange rate changes on cash
| |
3.1
|
| |
-
|
|
Increase in cash and cash equivalents
| |
7.3
| | |
19.9
| |
Cash and cash equivalents at beginning of period
| |
55.2
|
| |
44.4
|
|
Cash and cash equivalents at end of period
| |
$
|
62.5
|
| |
$
|
64.3
|
|
Income taxes paid
| |
$
|
19.5
| | |
$
|
21.6
| |
Interest paid
| |
$
|
13.1
| | |
$
|
13.4
| |
| | | | | | | |
|
Park-Ohio Holdings Corp. and Subsidiaries Business
Segment Information (Unaudited) |
|
| |
| |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| | (In millions) |
Net sales: | | | | | | | | | | | | |
Supply Technologies
| |
$
|
143.4
| | |
$
|
115.9
| | |
$
|
420.2
| | |
$
|
349.2
| |
Assembly Components
| |
121.6
| | |
106.1
| | |
351.7
| | |
303.9
| |
Engineered Products
| |
79.6
|
| |
81.5
|
| |
233.8
|
| |
240.7
|
|
| |
$
|
344.6
|
| |
$
|
303.5
|
| |
$
|
1,005.7
|
| |
$
|
893.8
|
|
| | | | | | | | | | | |
|
Income from continuing operations before income taxes: | | | | | | | | | | | | |
Supply Technologies
| |
$
|
12.2
| | |
$
|
9.5
| | |
$
|
32.7
| | |
$
|
28.0
| |
Assembly Components
| |
11.0
| | |
7.6
| | |
31.3
| | |
25.2
| |
Engineered Products
| |
11.5
|
| |
12.7
|
| |
32.8
|
| |
35.4
|
|
Total segment operating income
| |
34.7
| | |
29.8
| | |
96.8
| | |
88.6
| |
Corporate costs
| |
(8.3
|
)
| |
(6.3
|
)
| |
(22.1
|
)
| |
(17.1
|
)
|
Litigation judgment costs
| |
-
| | |
(5.2
|
)
| |
-
| | |
(5.2
|
)
|
Gain on acquisition of business
| |
-
| | |
0.6
| | |
-
| | |
0.6
| |
Interest expense
| |
(6.5
|
)
| |
(6.5
|
)
| |
(19.4
|
)
| |
(19.4
|
)
|
Income from continuing operations before income taxes
| |
$
|
19.9
|
| |
$
|
12.4
|
| |
$
|
55.3
|
| |
$
|
47.5
|
|
| | | | | | | | | | | | | | | |
|
Park-Ohio Holdings Corp. and Subsidiaries
Supplemental
Non-GAAP Financial Measures (Unaudited)
As adjusted earnings are a measure of earnings that excludes significant
non-cash credits and charges; and significant and infrequent contingency
expenses. As adjusted earnings reflect net income from continuing
operations after: the exclusion of net income attributable to
noncontrolling interest and before the inclusion of acquisition-related
costs in cost of sales and in SG&A expenses, currency exchange losses or
(gains) related to non-permanent intercompany loans in SG&A expenses,
litigation judgment costs and gain on acquisition of business. The
acquisition-related costs in cost of sales relate to the fair value
measurements to inventory acquired from the acquisitions that were
expensed during the periods presented. Acquisition-related costs in SG&A
expenses relate to contingent consideration expenses related to certain
acquisitions. As adjusted earnings are not a measure of performance
under GAAP and should not be considered in isolation or as a substitute
for net income from continuing operations, 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 as adjusted earnings
because management uses as adjusted earnings to measure performance. As
adjusted earnings herein may not be comparable to other similarly titled
measures of other companies. The following table reconciles net income
from continuing operations to as adjusted earnings:
|
| Year Ended December 31, |
| | 2014 Forecast |
| 2013 Actuals |
| | Earnings |
| Diluted EPS | | Earnings |
| Diluted EPS |
| | (In millions, except for earnings per share (EPS)) |
Net income from continuing operations
| |
$50.3 to $52.8
| | |
$4.07 to $4.27
| | |
$
|
40.9
| | |
$
|
3.35
| |
Net income attributable to noncontrolling interest
| |
(1.0
|
)
| |
(0.08
|
)
| |
(0.5
|
)
| |
(0.04
|
)
|
Earnings from continuing operations attributable to ParkOhio common
shareholders
| |
49.3 to 51.8
| | |
3.99 to 4.19
| | |
40.4
| | |
3.31
| |
Add back:
| | | | | | | | | | | | |
Acquisition-related costs in cost of sales, net of tax benefit
| |
0.2
| | |
0.02
| | |
1.3
| | |
0.11
| |
Acquisition-related costs in SG&A expenses, net of tax benefit
| |
0.8
| | |
0.06
| | |
0.4
| | |
0.04
| |
Currency exchange losses (gains) related to non-permanent
intercompany loans in SG&A expenses, net of tax benefit
| |
0.6
| | |
0.05
| | |
(0.3
|
)
| |
(0.03
|
)
|
Litigation judgment costs, net of tax
| |
-
| | |
-
| | |
3.3
| | |
0.27
| |
Gain on acquisition of business, net of tax expense
| |
-
|
| |
-
|
| |
(0.4
|
)
| |
(0.04
|
)
|
As adjusted earnings
| |
$50.9 to $53.4
|
| |
$4.12 to $4.32
|
| |
$
|
44.7
|
| |
$
|
3.66
|
|
| | | | | | | | | | | | | |
|
Park-Ohio Holdings Corp.
Edward F. Crawford, 440-947-2000