Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-03134 | |
Entity Registrant Name | Park-Ohio Holdings Corp | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1867219 | |
Entity Address, Address Line One | 6065 Parkland Boulevard, | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44124 | |
City Area Code | 440 | |
Local Phone Number | 947-2000 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | |
Trading Symbol | PKOH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,813,717 | |
Entity Central Index Key | 0000076282 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 49.6 | $ 58.2 | |
Accounts receivable, net | 256.8 | 246.3 | |
Inventories, net | 410 | 406.5 | |
Other current assets | 121.2 | 114.2 | |
Current assets held-for-sale - discontinued operations | [1] | 108 | 107.2 |
Total current assets | 945.6 | 932.4 | |
Property, plant and equipment, net | 181 | 181.1 | |
Operating lease right-of-use assets | 52 | 54.7 | |
Goodwill | 109.7 | 108.9 | |
Intangible assets, net | 77.7 | 78.7 | |
Other long-term assets | 81.4 | 80.8 | |
Total assets | 1,447.4 | 1,436.6 | |
Current liabilities: | |||
Trade accounts payable | 220.5 | 221 | |
Current portion of long-term debt and short-term debt | 12.8 | 10.9 | |
Current portion of operating lease liabilities | 11 | 11.2 | |
Accrued expenses and other | 163.8 | 161.7 | |
Current liabilities held-for-sale - discontinued operations | [1] | 37.3 | 43.8 |
Total current liabilities | 445.4 | 448.6 | |
Long-term liabilities, less current portion: | |||
Long-term debt | 661.1 | 655.1 | |
Long-term operating lease liabilities | 41.2 | 43.7 | |
Other long-term liabilities | 20.8 | 21.3 | |
Total long-term liabilities | 723.1 | 720.1 | |
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 267.4 | 256.5 | |
Noncontrolling interests | 11.5 | 11.4 | |
Total equity | 278.9 | 267.9 | |
Total liabilities and shareholders' equity | $ 1,447.4 | $ 1,436.6 | |
[1]Our continuing operations exclude the results of our Aluminum Products business unit, which is held-for-sale as of March 31, 2023 and December 31, 2022 and presented in discontinued operations for all periods presented. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 423.5 | $ 357.7 |
Cost of sales | 356.3 | 308.8 |
Selling, general and administrative expenses | 45.3 | 40.2 |
Restructuring and other special charges | 2.5 | 3.3 |
Gain on sale of assets | (0.8) | 0 |
Operating income | 20.2 | 5.4 |
Other components of pension income and other postretirement benefits expense, net | 0.7 | 2.8 |
Interest expense, net | (10.7) | (7.1) |
Income from continuing operations before income taxes | 10.2 | 1.1 |
Income tax (expense) benefit | (2.6) | 2.8 |
Income from continuing operations | 7.6 | 3.9 |
Income attributable to noncontrolling interests | (0.1) | (0.2) |
Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | 7.5 | 3.7 |
(Loss) income from discontinued operations, net of tax (Note 5) | (1.7) | 2.4 |
Net income attributable to Park-Ohio Holdings Corp. common shareholders | $ 5.8 | $ 6.1 |
Basic: | ||
Continuing operations (in dollars per share) | $ 0.61 | $ 0.31 |
Discontinued operations (in dollars per share) | (0.14) | 0.20 |
Total (in dollars per share) | 0.47 | 0.51 |
Diluted: | ||
Continuing operations (in dollars per share) | 0.61 | 0.30 |
Discontinued operations (in dollars per share) | (0.14) | 0.20 |
Total (in dollars per share) | $ 0.47 | $ 0.50 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to Park-Ohio Holdings Corp. common shareholders before noncontrolling interest | $ 5.9 | $ 6.3 |
Other comprehensive income (loss), net of tax: | ||
Currency translation | 3.3 | (3.9) |
Foreign currency forward contracts | (0.2) | 0.7 |
Pension and other postretirement benefits | 2 | 0.1 |
Total other comprehensive income (loss) | 5.1 | (3.1) |
Total comprehensive income, net of tax | 11 | 3.2 |
Comprehensive income attributable to noncontrolling interests | (0.1) | (0.2) |
Comprehensive income attributable to Park-Ohio Holdings Corp. common shareholders | $ 10.9 | $ 3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 16,339,722 | ||||||
Beginning balance at Dec. 31, 2021 | $ 324.8 | $ 16.3 | $ 142.9 | $ 259.4 | $ (85.3) | $ (19.2) | $ 10.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 3.2 | 6.1 | (3.1) | 0.2 | |||
Stock-based compensation expense | 1.6 | 1.6 | |||||
Stock-based compensation activity (in shares) | 5,502 | ||||||
Stock-based compensation activity | 0 | ||||||
Dividends | (1.6) | (1.6) | |||||
Payments of withholding taxes on share awards | (0.1) | (0.1) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 16,334,220 | ||||||
Ending balance at Mar. 31, 2022 | 327.9 | $ 16.3 | 144.5 | 263.9 | (85.4) | (22.3) | 10.9 |
Beginning balance (in shares) at Dec. 31, 2022 | 16,653,928 | ||||||
Beginning balance at Dec. 31, 2022 | 267.9 | $ 16.6 | 149.8 | 238.8 | (86.9) | (61.8) | 11.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 11 | 5.8 | 5.1 | 0.1 | |||
Stock-based compensation expense | 1.6 | 1.6 | |||||
Stock-based compensation activity (in shares) | 9,535 | ||||||
Stock-based compensation activity | 0 | $ 0.1 | (0.1) | ||||
Dividends | (1.6) | (1.6) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 16,663,463 | ||||||
Ending balance at Mar. 31, 2023 | $ 278.9 | $ 16.7 | $ 151.3 | $ 243 | $ (86.9) | $ (56.7) | $ 11.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Income from continuing operations | $ 7.6 | $ 3.9 | |
Adjustments to reconcile income from continuing operations to net cash provided (used) by operating activities from continuing operations: | |||
Depreciation and amortization | 7.7 | 7.8 | |
Stock-based compensation expense | 1.6 | 1.6 | |
Gain on sale of assets | (0.8) | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (9) | (28.6) | |
Inventories | (1.8) | (11.7) | |
Prepaid and other current assets | (6.5) | (4.9) | |
Accounts payable and accrued expenses | 1.1 | 31.5 | |
Other | 0.3 | (1.7) | |
Net cash provided (used) by operating activities from continuing operations | 0.2 | (2.1) | |
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Purchases of property, plant and equipment | (6) | (5.5) | |
Proceeds from sale of assets | 1.4 | 0 | |
Business acquisitions, net of cash acquired | (0.5) | 0 | |
Net cash used in investing activities from continuing operations | (5.1) | (5.5) | |
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Proceeds from revolving credit facility, net | 3 | 29.2 | |
Payments on other debt | (0.5) | (0.7) | |
Proceeds from other debt | 3.2 | 0 | |
Proceeds from (payments on) finance lease facilities, net | 1.7 | (0.7) | |
Contingent consideration payment related to prior acquisition | (1.3) | 0 | |
Dividends | (1.6) | (1.6) | |
Payments of withholding taxes on share awards | 0 | (0.1) | |
Net cash provided by financing activities from continuing operations | 4.5 | 26.1 | |
DISCONTINUED OPERATIONS | |||
Total used by operating activities | [1] | (6.4) | (8) |
Total used by investing activities | [1] | (1.5) | (1.6) |
Total used by financing activities | [1] | (0.7) | (0.9) |
Decrease in cash and cash equivalents from discontinued operations | [1] | (8.6) | (10.5) |
Effect of exchange rate changes on cash | 0.4 | (0.5) | |
(Decrease) increase in cash and cash equivalents | (8.6) | 7.5 | |
Cash and cash equivalents at beginning of period | 58.2 | 54.1 | |
Cash and cash equivalents at end of period | 49.6 | 61.6 | |
Interest paid | 5.2 | 1.7 | |
Income taxes paid | $ 3.2 | $ 1.4 | |
[1]Our continuing operations exclude the results of our Aluminum Products business unit, which is held-for-sale as of March 31, 2023 and December 31, 2022 and presented in discontinued operations for all periods presented. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. As of December 31, 2022 and March 31, 2023, we determined that our Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities, the operating results and the cash flows of Aluminum Products in discontinued operations for all periods presented throughout this Form 10-Q. Unless otherwise indicated, amounts and activity in this Form 10-Q are presented on a continuing operations basis. See Note 5, “Discontinued Operations,” in the Notes to Consolidated Financial Statements (Unaudited) for further information. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsNo recently-issued accounting standards updates are expected to have a material impact on our results of operations, financial condition or liquidity. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueWe disaggregate our revenue by product line and geographic region of our customer as we believe these metrics best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended March 31, 2023 2022 (In millions) PRODUCT LINE Supply Technologies $ 170.4 $ 146.2 Engineered specialty fasteners and other products 25.4 22.6 Supply Technologies Segment 195.8 168.8 Fuel, rubber and plastic products 110.4 97.9 Assembly Components Segment 110.4 97.9 Industrial equipment 84.4 64.3 Forged and machined products 32.9 26.7 Engineered Products Segment 117.3 91.0 Total revenues $ 423.5 $ 357.7 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2023 GEOGRAPHIC REGION United States $ 119.1 $ 81.0 $ 68.4 $ 268.5 Europe 39.0 4.5 15.6 59.1 Asia 15.1 5.7 16.5 37.3 Mexico 18.6 10.5 4.7 33.8 Canada 3.2 7.5 7.8 18.5 Other 0.8 1.2 4.3 6.3 Total $ 195.8 $ 110.4 $ 117.3 $ 423.5 Three Months Ended March 31, 2022 GEOGRAPHIC REGION United States $ 101.6 $ 70.5 $ 52.2 $ 224.3 Europe 31.9 4.1 16.1 52.1 Asia 14.9 5.2 12.7 32.8 Mexico 16.2 9.3 4.1 29.6 Canada 3.0 8.3 4.6 15.9 Other 1.2 0.5 1.3 3.0 Total $ 168.8 $ 97.9 $ 91.0 $ 357.7 For over time arrangements, contract liabilities primarily relate to advances or deposits received from the Company’s customers before revenue is recognized. These amounts, which totaled $51.4 million and $52.6 million at March 31, 2023 and December 31, 2022, respectively, are recorded in Accrued expenses and other in the Condensed Consolidated Balance Sheets. For over time arrangements, contract assets primarily relate to revenue recognized in advance of billings to customers under long-term contracts accounted for under percentage of completion. These amounts, which totaled $60.3 million and $56.7 million at March 31, 2023 and December 31, 2022, respectively, are recorded in Other current assets in the Condensed Consolidated Balance Sheets. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by adjusting for corporate costs; gain on sale of assets; other components of pension income and other postretirement benefits expense, net; and interest expense, net. Results by business segment were as follows: Three Months Ended March 31, 2023 2022 (In millions) NET SALES OF CONTINUING OPERATIONS: Supply Technologies $ 195.8 $ 168.8 Assembly Components 1 110.4 97.9 Engineered Products 117.3 91.0 $ 423.5 $ 357.7 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: Supply Technologies $ 14.0 $ 12.0 Assembly Components 1 7.3 (0.4) Engineered Products 5.0 1.8 Total segment operating income 26.3 13.4 Corporate costs (6.9) (8.0) Gain on sale of assets 0.8 — Operating income 20.2 5.4 Other components of pension income and other postretirement benefits expense, net 0.7 2.8 Interest expense, net (10.7) (7.1) Income from continuing operations before income taxes 1 $ 10.2 $ 1.1 (1) - Our continuing operations exclude the results of our Aluminum Products business unit, which is held-for-sale as of March 31, 2023 and December 31, 2022 and presented in discontinued operations for all periods presented. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations A business is classified as held-for-sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value, and certain other criteria of ASC 360 are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less costs to sell, a loss is recognized and updated each reporting period as appropriate. A business held-for-sale is classified as discontinued operations if the disposal group is a component of an entity; the component of an entity meets the held-for-sale criteria of ASC 360; and disposal of the component of an entity represents a strategic shift that will have a major effect on the entity's operations and financial results. During the fourth quarter of 2022, the Company determined that the Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities and the operating results of Aluminum Products in discontinued operations for all periods presented in this Quarterly Report on Form 10-Q. The Aluminum Products business was previously reported in the Company’s Assembly Components segment until meeting the discontinued operations criteria. See Note 10 for discussion of the entry into a memorandum of understanding (the “MOU”) related to the potential sale of this business. Three Months Ended March 31, 2023 2022 Net sales $ 46.9 $ 60.6 Cost of sales 45.5 53.8 Selling, general and administrative 3.1 3.7 Restructuring and other special charges — 0.5 Operating (loss) income (1.7) 2.6 Interest expense 1 (0.7) (0.7) (Loss) income from operation of discontinued operations (2.4) 1.9 Income tax benefit 0.7 0.5 (Loss) income from discontinued operations, net of tax $ (1.7) $ 2.4 (1) - Interest expense includes an allocation of interest that is not directly attributable to our Aluminum Products business, totaling $0.6 million in both three months ended March 31, 2023 and 2022. The following represents the details of assets and liabilities held-for-sale in each period: March 31, 2023 December 31, 2022 (In millions, except share data) ASSETS Current assets: Accounts receivable, net $ 32.9 $ 24.9 Inventories, net 21.4 30.2 Other current assets 1.3 1.2 Current assets held-for-sale 1 55.6 56.3 Property, plant and equipment, net 47.6 46.1 Operating lease right-of-use assets 4.8 4.8 Long-term assets held-for-sale 1 52.4 50.9 Total assets held-for-sale $ 108.0 $ 107.2 LIABILITIES Current liabilities: Trade accounts payable $ 19.4 $ 22.8 Current portion of finance lease liabilities 2.2 2.4 Current portion of operating lease liabilities 2.1 2.3 Other accrued expenses 8.8 10.7 Current liabilities held-for-sale 1 $ 32.5 $ 38.2 Long-term liabilities, less current portion: Long-term finance lease liabilities 2.7 3.1 Long-term operating lease liabilities 2.1 2.5 Long-term liabilities held-for-sale 1 4.8 5.6 Total liabilities held-for-sale $ 37.3 $ 43.8 |
Plant Closure and Consolidation
Plant Closure and Consolidation | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Plant Closure and Consolidation | Plant Closure and ConsolidationDuring the three months ended March 31, 2023 and 2022, the Company incurred the following expenses related to plant closure and consolidation in connection with its profit-improvement actions across its segments. These charges are included in Restructuring and other special charges in the Condensed Consolidated Statements of Income. Facility-Related Costs Severance and Other Total 2023: Assembly Components $ 0.3 $ — $ 0.3 Engineered Products 2.0 — 2.0 Total $ 2.3 $ — $ 2.3 2022: Assembly Components $ 1.5 $ — $ 1.5 Engineered Products 0.5 0.1 0.6 Total $ 2.0 $ 0.1 $ 2.1 The actions in the Assembly Components segment were primarily in connection with actions taken to close and consolidate its extrusion operations in Tennessee and its fuel operations in Michigan, to relocate certain production to lower-cost facilities with open capacity, and to complete other cost-reduction actions. The actions in the Engineered Product segment were primarily in connection with plant closure and consolidation of multiple locations, and to complete other cost-reduction actions. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following: March 31, 2023 December 31, 2022 (In millions) Raw materials and supplies $ 103.3 $ 105.0 Work-in-process 45.0 42.9 Finished goods 261.7 258.6 Inventories, net $ 410.0 $ 406.5 |
Accrued Warranty Costs
Accrued Warranty Costs | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Warranty Costs | Accrued Warranty Costs The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (In millions) Beginning balance $ 5.2 $ 7.2 Claims paid (0.9) (0.7) Warranty expense 1.0 0.3 Foreign currency translation 0.1 (0.1) Ending balance $ 5.4 $ 6.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period.In the three months ended March 31, 2023, income tax expense was $2.6 million on pre-tax income from continuing operations of $10.2 million, representing an effective income tax rate of 25%. In the three months ended March 31, 2022, income tax benefit was $2.8 million, on pretax income of $1.1 million. The benefit in 2022 included a discrete tax benefit of $3.2 million related to federal research and development tax credits. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2023 December 31, 2022 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 5.94 % 288.5 285.3 Finance Leases Various Various 20.2 18.5 Other Various Various 18.1 15.3 Total debt 676.8 669.1 Less: Current portion of long-term debt and short-term debt (12.8) (10.9) Less: Unamortized debt issuance costs (2.9) (3.1) Total long-term debt $ 661.1 $ 655.1 In addition to debt listed above, on December 30, 2022, the Company entered into the MOU with a third party pursuant to which the third party would purchase our Aluminum Products business. The sale of the Aluminum Products business is subject to the successful completion of a definitive purchase agreement and other customary conditions. In connection with the MOU, the Company also entered into a financing arrangement with the third party pursuant to which the Company received a portion of the estimated purchase price of the Aluminum Products business, including $20.0 million of cash and a promissory note in the principal amount of $25.0 million, and recorded a financing arrangement liability of $45.0 million. The Company used the $20.0 million from this financing arrangement to repay indebtedness under its revolving credit facility. If a definitive purchase agreement between the parties is not entered into or the sale is not successfully consummated, the promissory note will be cancelled and the Company will repay the third party $20.0 million, less a $0.8 million break-up fee. Park-Ohio's Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) provides for a revolving credit facility in the amount of $405.0 million, including a $40.0 million Canadian revolving subcommitment and a European revolving subcommitment in the amount of $30.0 million. Pursuant to the Credit Agreement, Park-Ohio has the option to increase the availability under the revolving credit facility by an aggregate incremental amount up to $70.0 million. The Credit Agreement matures on November 26, 2024. As of March 31, 2023, we had borrowing availability of $98.4 million under the Credit Agreement. We had outstanding bank guarantees and letters of credit under our credit arrangements of approximately $46.0 million at March 31, 2023 and $41.0 million at December 31, 2022. In 2017, Park-Ohio completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of Park-Ohio. In 2015, the Company entered into a finance lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $4.5 million were borrowed under the Lease Agreement to acquire machinery and equipment as of March 31, 2023. As of March 31, 2023, the Company had additional finance leases totaling $15.7 million. In 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority, which matures in September 2025. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The Company had $4.0 million of borrowings outstanding under this agreement as of March 31, 2023, which is included in Other above. The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. March 31, 2023 December 31, 2022 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 273.9 $ 227.5 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of restricted share activity for the three months ended March 31, 2023 is as follows: 2023 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 716,242 $ 20.53 50,000 $ 32.55 Granted 9,535 13.89 — — Vested (9,000) 33.12 — — Outstanding - end of period 716,777 $ 20.28 50,000 $ 32.55 Stock-based compensation is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. Total stock-based compensation expense was $1.6 million for both the three months ended March 31, 2023 and 2022. As of March 31, 2023, there was $6.6 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted-average period of 1.6 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to a variety of claims, suits, investigations and administrative proceedings with respect to commercial, premises liability, product liability, employment, personal injury and environmental matters arising from the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. Our subsidiaries are involved in a number of contractual and warranty-related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. In addition to the routine lawsuits and asserted claims noted above, we are also a co-defendant in 112 cases asserting claims on behalf of 162 plaintiffs alleging personal injury as a result of exposure to asbestos. In every asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. Historically, we have been dismissed from asbestos cases. We intend to vigorously defend these cases and believe we will continue to be successful in being dismissed from such cases. While it is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and although our results of operations and cash flows for a particular period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate resolution of these matters will not have a material adverse effect on our financial condition, liquidity or results of operations. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The components of net periodic benefit (income) expense costs recognized for the three months ended March 31, 2023 and 2022 were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 (In millions) Service costs $ 1.2 $ 1.1 $ — $ — Interest costs 0.8 0.4 0.1 — Expected return on plan assets (2.5) (3.2) (0.1) (0.1) Recognized net actuarial loss 0.9 — 0.1 0.1 Net periodic benefit expense (income) $ 0.4 $ (1.7) $ 0.1 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows: Cumulative Translation Adjustment Cash Flow Hedges Pension and Postretirement Benefits Total Cumulative Translation Adjustment Cash Flow Hedges Pension and Postretirement Benefits Total (In millions) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Beginning balance $ (38.7) $ 0.5 $ (23.6) $ (61.8) $ (18.3) $ — $ (0.9) $ (19.2) Currency translation (a) 3.3 — — 3.3 (3.9) — — (3.9) Foreign currency forward contracts, net of tax — (0.2) — (0.2) — 0.7 — 0.7 Pension and OPEB activity, net of tax — — 2.0 2.0 — — 0.1 0.1 Ending balance $ (35.4) $ 0.3 $ (21.6) $ (56.7) $ (22.2) $ 0.7 $ (0.8) $ (22.3) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Weighted-Average Number of Shar
Weighted-Average Number of Shares Used in Computing Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Weighted-Average Number of Shares Used in Computing Earnings Per Share | Weighted-Average Number of Shares Used in Computing Earnings Per Share The following table sets forth the weighted-average number of shares used in the computation of earnings per share: Three Months Ended March 31, 2023 2022 (In millions) Weighted-average basic shares outstanding 12.2 12.0 Plus: Dilutive impact of employee stock awards 0.1 0.2 Weighted-average diluted shares outstanding 12.3 12.2 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn April 21, 2023, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on May 19, 2023 to shareholders of record as of the close of business on May 5, 2023 and will result in a cash outlay of approximately $1.6 million. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. As of December 31, 2022 and March 31, 2023, we determined that our Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities, the operating results and the cash flows of Aluminum Products in discontinued operations for all periods presented throughout this Form 10-Q. Unless otherwise indicated, amounts and activity in this Form 10-Q are presented on a continuing operations basis. See Note 5, “Discontinued Operations,” in the Notes to Consolidated Financial Statements (Unaudited) for further information. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Segments | Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by adjusting for corporate costs; gain on sale of assets; other components of pension income and other postretirement benefits expense, net; and interest expense, net. |
Accrued Warranty Costs | The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. |
Income Taxes | The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period. |
Commitments and Contingencies | The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | We disaggregate our revenue by product line and geographic region of our customer as we believe these metrics best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended March 31, 2023 2022 (In millions) PRODUCT LINE Supply Technologies $ 170.4 $ 146.2 Engineered specialty fasteners and other products 25.4 22.6 Supply Technologies Segment 195.8 168.8 Fuel, rubber and plastic products 110.4 97.9 Assembly Components Segment 110.4 97.9 Industrial equipment 84.4 64.3 Forged and machined products 32.9 26.7 Engineered Products Segment 117.3 91.0 Total revenues $ 423.5 $ 357.7 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2023 GEOGRAPHIC REGION United States $ 119.1 $ 81.0 $ 68.4 $ 268.5 Europe 39.0 4.5 15.6 59.1 Asia 15.1 5.7 16.5 37.3 Mexico 18.6 10.5 4.7 33.8 Canada 3.2 7.5 7.8 18.5 Other 0.8 1.2 4.3 6.3 Total $ 195.8 $ 110.4 $ 117.3 $ 423.5 Three Months Ended March 31, 2022 GEOGRAPHIC REGION United States $ 101.6 $ 70.5 $ 52.2 $ 224.3 Europe 31.9 4.1 16.1 52.1 Asia 14.9 5.2 12.7 32.8 Mexico 16.2 9.3 4.1 29.6 Canada 3.0 8.3 4.6 15.9 Other 1.2 0.5 1.3 3.0 Total $ 168.8 $ 97.9 $ 91.0 $ 357.7 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Results by Business Segment | Results by business segment were as follows: Three Months Ended March 31, 2023 2022 (In millions) NET SALES OF CONTINUING OPERATIONS: Supply Technologies $ 195.8 $ 168.8 Assembly Components 1 110.4 97.9 Engineered Products 117.3 91.0 $ 423.5 $ 357.7 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: Supply Technologies $ 14.0 $ 12.0 Assembly Components 1 7.3 (0.4) Engineered Products 5.0 1.8 Total segment operating income 26.3 13.4 Corporate costs (6.9) (8.0) Gain on sale of assets 0.8 — Operating income 20.2 5.4 Other components of pension income and other postretirement benefits expense, net 0.7 2.8 Interest expense, net (10.7) (7.1) Income from continuing operations before income taxes 1 $ 10.2 $ 1.1 (1) - Our continuing operations exclude the results of our Aluminum Products business unit, which is held-for-sale as of March 31, 2023 and December 31, 2022 and presented in discontinued operations for all periods presented. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of disposal groups, including discontinued operations | Three Months Ended March 31, 2023 2022 Net sales $ 46.9 $ 60.6 Cost of sales 45.5 53.8 Selling, general and administrative 3.1 3.7 Restructuring and other special charges — 0.5 Operating (loss) income (1.7) 2.6 Interest expense 1 (0.7) (0.7) (Loss) income from operation of discontinued operations (2.4) 1.9 Income tax benefit 0.7 0.5 (Loss) income from discontinued operations, net of tax $ (1.7) $ 2.4 (1) - Interest expense includes an allocation of interest that is not directly attributable to our Aluminum Products business, totaling $0.6 million in both three months ended March 31, 2023 and 2022. The following represents the details of assets and liabilities held-for-sale in each period: March 31, 2023 December 31, 2022 (In millions, except share data) ASSETS Current assets: Accounts receivable, net $ 32.9 $ 24.9 Inventories, net 21.4 30.2 Other current assets 1.3 1.2 Current assets held-for-sale 1 55.6 56.3 Property, plant and equipment, net 47.6 46.1 Operating lease right-of-use assets 4.8 4.8 Long-term assets held-for-sale 1 52.4 50.9 Total assets held-for-sale $ 108.0 $ 107.2 LIABILITIES Current liabilities: Trade accounts payable $ 19.4 $ 22.8 Current portion of finance lease liabilities 2.2 2.4 Current portion of operating lease liabilities 2.1 2.3 Other accrued expenses 8.8 10.7 Current liabilities held-for-sale 1 $ 32.5 $ 38.2 Long-term liabilities, less current portion: Long-term finance lease liabilities 2.7 3.1 Long-term operating lease liabilities 2.1 2.5 Long-term liabilities held-for-sale 1 4.8 5.6 Total liabilities held-for-sale $ 37.3 $ 43.8 |
Plant Closure and Consolidati_2
Plant Closure and Consolidation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Facility-Related Costs Severance and Other Total 2023: Assembly Components $ 0.3 $ — $ 0.3 Engineered Products 2.0 — 2.0 Total $ 2.3 $ — $ 2.3 2022: Assembly Components $ 1.5 $ — $ 1.5 Engineered Products 0.5 0.1 0.6 Total $ 2.0 $ 0.1 $ 2.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net consist of the following: March 31, 2023 December 31, 2022 (In millions) Raw materials and supplies $ 103.3 $ 105.0 Work-in-process 45.0 42.9 Finished goods 261.7 258.6 Inventories, net $ 410.0 $ 406.5 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of changes in product warranty liability | The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (In millions) Beginning balance $ 5.2 $ 7.2 Claims paid (0.9) (0.7) Warranty expense 1.0 0.3 Foreign currency translation 0.1 (0.1) Ending balance $ 5.4 $ 6.7 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2023 December 31, 2022 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 5.94 % 288.5 285.3 Finance Leases Various Various 20.2 18.5 Other Various Various 18.1 15.3 Total debt 676.8 669.1 Less: Current portion of long-term debt and short-term debt (12.8) (10.9) Less: Unamortized debt issuance costs (2.9) (3.1) Total long-term debt $ 661.1 $ 655.1 |
Schedule of fair value of debt | The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. March 31, 2023 December 31, 2022 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 273.9 $ 227.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted share and performance share activity | A summary of restricted share activity for the three months ended March 31, 2023 is as follows: 2023 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 716,242 $ 20.53 50,000 $ 32.55 Granted 9,535 13.89 — — Vested (9,000) 33.12 — — Outstanding - end of period 716,777 $ 20.28 50,000 $ 32.55 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit cost | The components of net periodic benefit (income) expense costs recognized for the three months ended March 31, 2023 and 2022 were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 (In millions) Service costs $ 1.2 $ 1.1 $ — $ — Interest costs 0.8 0.4 0.1 — Expected return on plan assets (2.5) (3.2) (0.1) (0.1) Recognized net actuarial loss 0.9 — 0.1 0.1 Net periodic benefit expense (income) $ 0.4 $ (1.7) $ 0.1 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of changes in accumulated comprehensive loss | The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows: Cumulative Translation Adjustment Cash Flow Hedges Pension and Postretirement Benefits Total Cumulative Translation Adjustment Cash Flow Hedges Pension and Postretirement Benefits Total (In millions) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Beginning balance $ (38.7) $ 0.5 $ (23.6) $ (61.8) $ (18.3) $ — $ (0.9) $ (19.2) Currency translation (a) 3.3 — — 3.3 (3.9) — — (3.9) Foreign currency forward contracts, net of tax — (0.2) — (0.2) — 0.7 — 0.7 Pension and OPEB activity, net of tax — — 2.0 2.0 — — 0.1 0.1 Ending balance $ (35.4) $ 0.3 $ (21.6) $ (56.7) $ (22.2) $ 0.7 $ (0.8) $ (22.3) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Weighted-Average Number of Sh_2
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Used in Computing Earnings Per Share | The following table sets forth the weighted-average number of shares used in the computation of earnings per share: Three Months Ended March 31, 2023 2022 (In millions) Weighted-average basic shares outstanding 12.2 12.0 Plus: Dilutive impact of employee stock awards 0.1 0.2 Weighted-average diluted shares outstanding 12.3 12.2 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 423.5 | $ 357.7 |
Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 195.8 | 168.8 |
Supply Technologies Segment | Supply Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 170.4 | 146.2 |
Supply Technologies Segment | Engineered specialty fasteners and other products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 25.4 | 22.6 |
Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 110.4 | 97.9 |
Assembly Components Segment | Fuel, rubber and plastic products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 110.4 | 97.9 |
Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 117.3 | 91 |
Engineered Products Segment | Industrial equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 84.4 | 64.3 |
Engineered Products Segment | Forged and machined products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 32.9 | $ 26.7 |
Revenue - Summary of Disaggre_2
Revenue - Summary of Disaggregation of Revenue by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 423.5 | $ 357.7 |
Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 195.8 | 168.8 |
Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 110.4 | 97.9 |
Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 117.3 | 91 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 268.5 | 224.3 |
United States | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 119.1 | 101.6 |
United States | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 81 | 70.5 |
United States | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 68.4 | 52.2 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 59.1 | 52.1 |
Europe | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39 | 31.9 |
Europe | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4.5 | 4.1 |
Europe | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 15.6 | 16.1 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 37.3 | 32.8 |
Asia | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 15.1 | 14.9 |
Asia | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5.7 | 5.2 |
Asia | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 16.5 | 12.7 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 33.8 | 29.6 |
Mexico | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18.6 | 16.2 |
Mexico | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 10.5 | 9.3 |
Mexico | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4.7 | 4.1 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18.5 | 15.9 |
Canada | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3.2 | 3 |
Canada | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7.5 | 8.3 |
Canada | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7.8 | 4.6 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6.3 | 3 |
Other | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0.8 | 1.2 |
Other | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1.2 | 0.5 |
Other | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 4.3 | $ 1.3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 51.4 | $ 52.6 |
Contract assets | $ 60.3 | $ 56.7 |
Segments (Details)
Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | $ 423.5 | $ 357.7 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 20.2 | 5.4 |
Gain on sale of assets | 0.8 | 0 |
Other components of pension income and other postretirement benefits expense, net | 0.7 | 2.8 |
Interest expense, net | (10.7) | (7.1) |
Income from continuing operations before income taxes | 10.2 | 1.1 |
Operating Segments | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 26.3 | 13.4 |
Corporate, non-segment | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Corporate costs | (6.9) | (8) |
Supply Technologies | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 195.8 | 168.8 |
Supply Technologies | Operating Segments | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 14 | 12 |
Assembly Components | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 110.4 | 97.9 |
Assembly Components | Operating Segments | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 7.3 | (0.4) |
Engineered Products | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 117.3 | 91 |
Engineered Products | Operating Segments | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | $ 5 | $ 1.8 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Loss from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Loss) income from discontinued operations, net of tax | $ (1.7) | $ 2.4 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Aluminum Products Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 46.9 | 60.6 |
Cost of sales | 45.5 | 53.8 |
Selling, general and administrative | 3.1 | 3.7 |
Restructuring and other special charges | 0 | 0.5 |
Operating (loss) income | (1.7) | 2.6 |
Interest expense | (0.7) | (0.7) |
(Loss) income from operation of discontinued operations | (2.4) | 1.9 |
Income tax benefit | 0.7 | 0.5 |
(Loss) income from discontinued operations, net of tax | (1.7) | 2.4 |
Interest expense allocated | $ 0.6 | $ 0.6 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Assets and Liabilities Held-for-Sale (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Current assets held-for-sale | [1] | $ 108 | $ 107.2 |
Current liabilities: | |||
Current liabilities held-for-sale | [1] | 37.3 | 43.8 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Aluminum Products Business | |||
Current assets: | |||
Accounts receivable, net | 32.9 | 24.9 | |
Inventories, net | 21.4 | 30.2 | |
Other current assets | 1.3 | 1.2 | |
Current assets held-for-sale | 55.6 | 56.3 | |
Property, plant and equipment, net | 47.6 | 46.1 | |
Operating lease right-of-use assets | 4.8 | 4.8 | |
Long-term assets held-for-sale | 52.4 | 50.9 | |
Total assets held-for-sale | 108 | 107.2 | |
Current liabilities: | |||
Trade accounts payable | 19.4 | 22.8 | |
Current portion of finance lease liabilities | 2.2 | 2.4 | |
Current portion of operating lease liabilities | 2.1 | 2.3 | |
Other accrued expenses | 8.8 | 10.7 | |
Current liabilities held-for-sale | 32.5 | 38.2 | |
Long-term finance lease liabilities | 2.7 | 3.1 | |
Long-term operating lease liabilities | 2.1 | 2.5 | |
Long-term liabilities held-for-sale | 4.8 | 5.6 | |
Total liabilities held-for-sale | $ 37.3 | $ 43.8 | |
[1]Our continuing operations exclude the results of our Aluminum Products business unit, which is held-for-sale as of March 31, 2023 and December 31, 2022 and presented in discontinued operations for all periods presented. |
Plant Closure and Consolidati_3
Plant Closure and Consolidation - Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2.3 | $ 2.1 |
Facility-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.3 | 2 |
Severance and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0.1 |
Assembly Components | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.3 | 1.5 |
Assembly Components | Facility-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.3 | 1.5 |
Assembly Components | Severance and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Engineered Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2 | 0.6 |
Engineered Products | Facility-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2 | 0.5 |
Engineered Products | Severance and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 0.1 |
Plant Closure and Consolidati_4
Plant Closure and Consolidation - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Restructuring and Related Activities [Abstract] | |
Restructuring and related cost, expected cost the remainder of current year | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Components of inventory | ||
Raw materials and supplies | $ 103.3 | $ 105 |
Work-in-process | 45 | 42.9 |
Finished goods | 261.7 | 258.6 |
Inventories, net | $ 410 | $ 406.5 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in product warranty liability [Roll Forward] | ||
Beginning balance | $ 5.2 | $ 7.2 |
Claims paid | (0.9) | (0.7) |
Warranty expense | 1 | 0.3 |
Foreign currency translation | 0.1 | (0.1) |
Ending balance | $ 5.4 | $ 6.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 2.6 | $ (2.8) |
Pre-tax income | $ 10.2 | 1.1 |
Effective tax rate | 25% | |
Discrete tax benefit related to federal research and development tax credits | $ 3.2 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance Leases | $ 20.2 | $ 18.5 |
Other | 18.1 | 15.3 |
Total debt | 676.8 | 669.1 |
Less: Current portion of long-term debt and short-term debt | (12.8) | (10.9) |
Less: Unamortized debt issuance costs | (2.9) | (3.1) |
Total long-term debt | $ 661.1 | 655.1 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.94% | |
Long-term debt, gross | $ 288.5 | 285.3 |
Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.625% | |
Long-term debt, gross | $ 350 | $ 350 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 30, 2022 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||
Proceeds from financing arrangement related to disposal group, cash | $ 20,000,000 | ||||
Proceeds from financing arrangement related to disposal group, promissory note | 25,000,000 | ||||
Financing arrangement liability | 45,000,000 | ||||
Break-up fee | $ 800,000 | ||||
Bank guarantees and letters of credit amount | $ 46,000,000 | $ 41,000,000 | |||
Percentage ownership | 100% | ||||
Finance lease agreement, amount | $ 50,000,000 | ||||
Finance lease obligation to acquire machinery and equipment | 4,500,000 | ||||
Additional finance leases amount | 15,700,000 | ||||
Arkansas Development Finance Authority | Southwest Steel Processing LLC | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 11,000,000 | ||||
Borrowings outstanding | $ 4,000,000 | ||||
6.625% Senior Notes Due 2027 | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate principal amount | $ 350,000,000 | ||||
Stated interest rate | 6.625% | ||||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 5.94% | ||||
Revolving credit facility | Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 405,000,000 | ||||
Increase in additional borrowing capacity | 70,000,000 | ||||
Line of credit facility, remaining borrowing capacity | 98,400,000 | ||||
Revolving Credit Facility Canadian Sub-Limit | Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 40,000,000 | ||||
Revolving Credit Facility European Sub-Limit | Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 |
Financing Arrangements - Fair V
Financing Arrangements - Fair Value of Debt (Details) - Level 1 - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 350 | $ 350 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 273.9 | $ 227.5 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Share and Performance Share Activity (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Time-Based | |
Number of Shares | |
Outstanding - beginning of year (in shares) | shares | 716,242 |
Granted (in shares) | shares | 9,535 |
Vested (in shares) | shares | (9,000) |
Outstanding - end of period (in shares) | shares | 716,777 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 20.53 |
Granted (in dollars per share) | $ / shares | 13.89 |
Vested (in dollars per share) | $ / shares | 33.12 |
Outstanding - end of period (in dollars per share) | $ / shares | $ 20.28 |
Performance-Based | |
Number of Shares | |
Outstanding - beginning of year (in shares) | shares | 50,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Outstanding - end of period (in shares) | shares | 50,000 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 32.55 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Outstanding - end of period (in dollars per share) | $ / shares | $ 32.55 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 1.6 | $ 1.6 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 6.6 | |
Unrecognized compensation cost related to non-vested stock-based compensation, period for recognition | 1 year 7 months 6 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2023 plaintiff claim | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending cases | claim | 112 |
Number of plaintiffs | plaintiff | 162 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Benefits | ||
Components of net periodic benefit cost | ||
Service costs | $ 1.2 | $ 1.1 |
Interest costs | 0.8 | 0.4 |
Expected return on plan assets | (2.5) | (3.2) |
Recognized net actuarial loss | 0.9 | 0 |
Net periodic benefit expense (income) | 0.4 | (1.7) |
Postretirement Benefits | ||
Components of net periodic benefit cost | ||
Service costs | 0 | 0 |
Interest costs | 0.1 | 0 |
Expected return on plan assets | (0.1) | (0.1) |
Recognized net actuarial loss | 0.1 | 0.1 |
Net periodic benefit expense (income) | $ 0.1 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 267,900,000 | $ 324,800,000 |
Currency translation | 3,300,000 | (3,900,000) |
Foreign currency forward contracts, net of tax | (200,000) | 700,000 |
Pension and OPEB activity, net of tax | 2,000,000 | 100,000 |
Ending balance | 278,900,000 | 327,900,000 |
Income taxes provided on currency translation as foreign earnings permanently reinvested | 0 | 0 |
Cumulative Translation Adjustment | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (38,700,000) | (18,300,000) |
Ending balance | (35,400,000) | (22,200,000) |
Cash Flow Hedges | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 500,000 | 0 |
Ending balance | 300,000 | 700,000 |
Pension and Postretirement Benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (23,600,000) | (900,000) |
Ending balance | (21,600,000) | (800,000) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (61,800,000) | (19,200,000) |
Ending balance | $ (56,700,000) | $ (22,300,000) |
Weighted-Average Number of Sh_3
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Weighted-average basic shares outstanding (in shares) | 12.2 | 12 |
Plus: Dilutive impact of employee stock awards (in shares) | 0.1 | 0.2 |
Weighted-average diluted shares outstanding (in shares) | 12.3 | 12.2 |
Antidilutive securities excluded from computation of diluted EPS (in shares) | 0.1 | 0.2 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ / shares in Units, $ in Millions | Apr. 21, 2023 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Quarterly dividend declared, per common share (in dollars per share) | $ / shares | $ 0.125 |
Cash outlay of dividend | $ | $ 1.6 |