ParkOhio(PKOH) - 2024 Q2 - Quarterly Results

Financial Performance - Record net sales of $433 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 $12.3 million, or $0.95 per diluted share, compared to $7.1 million, or $0.57 per diluted share in Q2 2023, a 67% increase[1][2] - Adjusted EPS from continuing operations rose 23% to $1.02 per diluted share, up from $0.83 in Q2 2023[1][2] - EBITDA improved by 10% year-over-year to $39 million, representing 9.1% of net sales[1][2] - Year-to-date net sales from continuing operations were $850.2 million, slightly down from $851.6 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 $19.2 million in the same period last year, and for the six months, it rose to $48.6 million from $39.4 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 $7.1 million year-over-year, and for the six months, it increased to $22.9 million from $14.6 million[12] - Adjusted earnings from continuing operations for the three months ended June 30, 2024, were $13.1 million, or $1.02 per diluted share, compared to $10.2 million, or $0.83 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 $35.7 million in the same period last year, and for the six months, it rose to $77.2 million from $67.2 million[12] - Operating income for the three months ended June 30, 2024, was $24.6 million, up from $19.2 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 $45.2 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 $39.4 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 $126.9 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 $399.5 million, up from $393.1 million in the same period of 2023, indicating a 1.0% increase[23] - Supply Technologies reported revenue of $19.0 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 $7.3 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 $38.7 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 $11.1 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 $15.5 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 $824.4 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 $1,340.7 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 $633.4 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 $13.0 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 $53.4 million, showing an increase of 12.2%[22] - Interest expense for the three months ended June 30, 2024, was $12.0 million, compared to $11.1 million in the same period last year[12] - Interest expense for the six months ended June 30, 2024, was $23.9 million, compared to $21.8 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 $46.8 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 $4.1 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 $1.7 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) 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]