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ParkOhio(PKOH) - 2024 Q2 - Quarterly Results
PKOHParkOhio(PKOH)2024-08-07 20:47

Financial Performance - Record net sales of 433millioninQ22024,upfrom433 million in Q2 2024, up from 428 million in Q2 2023, representing a 1% increase[1][2] - Gross margin improved by 50 basis points to 16.9% year-over-year[1][2] - GAAP income from continuing operations increased to 12.3million,or12.3 million, or 0.95 per diluted share, compared to 7.1million,or7.1 million, or 0.57 per diluted share in Q2 2023, a 67% increase[1][2] - Adjusted EPS from continuing operations rose 23% to 1.02perdilutedshare,upfrom1.02 per diluted share, up from 0.83 in Q2 2023[1][2] - EBITDA improved by 10% year-over-year to 39million,representing9.139 million, representing 9.1% of net sales[1][2] - Year-to-date net sales from continuing operations were 850.2 million, slightly down from 851.6millioninthesameperiodin2023[8]−For2024,thecompanyexpectsyear−over−yearrevenuegrowthbetween2851.6 million in the same period in 2023[8] - For 2024, the company expects year-over-year revenue growth between 2% and 4%[8] - Operating income for the three months ended June 30, 2024, increased to 24.6 million, compared to 19.2millioninthesameperiodlastyear,andforthesixmonths,itroseto19.2 million in the same period last year, and for the six months, it rose to 48.6 million from 39.4million[12]−IncomefromcontinuingoperationsattributabletoPark−OhioHoldingsCorp.commonshareholdersforthethreemonthsendedJune30,2024,was39.4 million[12] - Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders for the three months ended June 30, 2024, was 12.3 million, up from 7.1millionyear−over−year,andforthesixmonths,itincreasedto7.1 million year-over-year, and for the six months, it increased to 22.9 million from 14.6million[12]−AdjustedearningsfromcontinuingoperationsforthethreemonthsendedJune30,2024,were14.6 million[12] - Adjusted earnings from continuing operations for the three months ended June 30, 2024, were 13.1 million, or 1.02perdilutedshare,comparedto1.02 per diluted share, compared to 10.2 million, or 0.83perdilutedshare,inthesameperiodlastyear[14]−EBITDAforthethreemonthsendedJune30,2024,was0.83 per diluted share, in the same period last year[14] - EBITDA for the three months ended June 30, 2024, was 39.4 million, an increase from 35.7millioninthesameperiodlastyear,andforthesixmonths,itroseto35.7 million in the same period last year, and for the six months, it rose to 77.2 million from 67.2million[12]−OperatingincomeforthethreemonthsendedJune30,2024,was67.2 million[12] - Operating income for the three months ended June 30, 2024, was 24.6 million, up from 19.2millioninthesameperiodof2023,agrowthof28.219.2 million in the same period of 2023, a growth of 28.2%[23] - The company achieved an operating income of 50.1 million for the first half of 2024, compared to 45.2millioninthefirsthalfof2023,reflectingagrowthof10.945.2 million in the first half of 2023, reflecting a growth of 10.9%[27] - Adjusted operating income for the first half of 2024 was 50.1 million, compared to 39.4millioninthefirsthalfof2023,indicatingagrowthof27.039.4 million in the first half of 2023, indicating a growth of 27.0%[27] Segment Performance - In the Supply Technologies segment, net sales reached 202.6 million, a 3% increase driven by strong demand in aerospace and defense, with a 56% year-over-year sales increase in that market[4] - Engineered Products segment net sales were a record 126.9million,up7126.9 million, up 7% year-over-year, with new equipment backlog totaling 173 million[6] - Net sales for the Supply Technologies segment for the six months ended June 30, 2024, were 399.5million,upfrom399.5 million, up from 393.1 million in the same period of 2023, indicating a 1.0% increase[23] - Supply Technologies reported revenue of 19.0millionforthethreemonthsendedJune30,2024,anincreasefrom19.0 million for the three months ended June 30, 2024, an increase from 15.4 million in the same period of 2023, reflecting a growth of 23.4%[26] - Engineered Products segment revenue increased to 7.3millioninQ22024from7.3 million in Q2 2024 from 6.1 million in Q2 2023, representing a year-over-year growth of 19.7%[26] - Supply Technologies adjusted revenue for the first half of 2024 was 38.7million,comparedto38.7 million, compared to 29.6 million in the first half of 2023, marking a significant increase of 30.9%[27] - Engineered Products adjusted revenue for the first half of 2024 reached 11.1million,upfrom11.1 million, up from 13.1 million in the first half of 2023, showing a growth of 35.4%[27] - The Assembly Components segment maintained revenue at 15.5millionforthefirsthalfof2024,consistentwiththesameperiodin2023[27]AssetsandLiabilities−Totalcurrentassetsincreasedto15.5 million for the first half of 2024, consistent with the same period in 2023[27] Assets and Liabilities - Total current assets increased to 864.1 million as of June 30, 2024, from 824.4millionasofDecember31,2023,reflectingagrowthof4.1824.4 million as of December 31, 2023, reflecting a growth of 4.1%[20] - Total assets reached 1,380.6 million as of June 30, 2024, compared to 1,340.7millionattheendof2023,markinga2.971,340.7 million at the end of 2023, marking a 2.97% increase[20] - Long-term debt increased to 670.3 million as of June 30, 2024, from 633.4millionattheendof2023,representinga5.8633.4 million at the end of 2023, representing a 5.8% rise[20] Cash Flow and Expenses - The company reported a net cash used in investing activities of 24.2 million for the six months ended June 30, 2024, compared to 13.0millionforthesameperiodin2023,indicatingasignificantincreaseininvestment[22]−Cashandcashequivalentsattheendoftheperiodincreasedto13.0 million for the same period in 2023, indicating a significant increase in investment[22] - Cash and cash equivalents at the end of the period increased to 59.9 million from 53.4million,showinganincreaseof12.253.4 million, showing an increase of 12.2%[22] - Interest expense for the three months ended June 30, 2024, was 12.0 million, compared to 11.1millioninthesameperiodlastyear[12]−InterestexpenseforthesixmonthsendedJune30,2024,was11.1 million in the same period last year[12] - Interest expense for the six months ended June 30, 2024, was 23.9 million, compared to 21.8millionforthesameperiodin2023,reflectinganincreaseof9.621.8 million for the same period in 2023, reflecting an increase of 9.6%[18] - Selling, general and administrative expenses for the three months ended June 30, 2024, were 47.4 million, compared to 46.8millioninthesameperiodlastyear[12]−Thecompanyexperiencedrestructuringandotherspecialchargesof46.8 million in the same period last year[12] - The company experienced restructuring and other special charges of 1.2 million for the three months ended June 30, 2024, down from 4.1millioninthesameperiodlastyear[12]DiscontinuedOperations−Thecompanyreportedalossfromdiscontinuedoperationsof4.1 million in the same period last year[12] Discontinued Operations - The company reported a loss from discontinued operations of 0.4 million for the three months ended June 30, 2024, an improvement from a loss of 1.7millioninthesameperiodlastyear[12]−Thecorporatesegmentreportedanoperatinglossof1.7 million in the same period last year[12] - The corporate segment reported an operating loss of (15.2) million for the first half of 2024, slightly worse than the (14.7)millionlossinthesameperiodof2023[27]−Thecompanyreportedagainonthesaleofassetsof(14.7) million loss in the same period of 2023[27] - The company reported a gain on the sale of assets of 0.8 million in the first half of 2023, which did not recur in the first half of 2024[27]