Cover
Cover | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
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 $1.00 Per Share |
Trading Symbol | PKOH |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 13,070,758 |
Entity Central Index Key | 0000076282 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 61.6 | $ 54.8 |
Accounts receivable, net | 283.8 | 263.3 |
Inventories, net | 428.5 | 411.1 |
Other current assets | 109.8 | 95.2 |
Total current assets | 883.7 | 824.4 |
Property, plant and equipment, net | 184 | 184.9 |
Operating lease right-of-use assets | 44.9 | 44.7 |
Goodwill | 114.2 | 110.2 |
Intangible assets, net | 76.3 | 73.3 |
Other long-term assets | 99.4 | 103.2 |
Total assets | 1,402.5 | 1,340.7 |
Current liabilities: | ||
Trade accounts payable | 199.3 | 204 |
Current portion of long-term debt and short-term debt | 12.3 | 9.4 |
Current portion of operating lease liabilities | 11.6 | 10.6 |
Accrued expenses and other | 170.3 | 139.6 |
Total current liabilities | 393.5 | 363.6 |
Long-term liabilities, less current portion: | ||
Long-term debt | 657.3 | 633.4 |
Long-term operating lease liabilities | 33.6 | 34.4 |
Other long-term liabilities | 20.6 | 19.4 |
Total long-term liabilities | 711.5 | 687.2 |
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 288.5 | 280.4 |
Noncontrolling interests | 9 | 9.5 |
Total equity | 297.5 | 289.9 |
Total liabilities and shareholders' equity | $ 1,402.5 | $ 1,340.7 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 417.6 | $ 423.5 |
Cost of sales | 346.2 | 356.3 |
Selling, general and administrative expenses | 47.1 | 45.3 |
Restructuring, acquisition-related and other special charges | 0.3 | 2.5 |
Gains on sales of assets | 0 | (0.8) |
Operating income | 24 | 20.2 |
Other components of pension and other postretirement benefits income, net | 1.3 | 0.7 |
Interest expense, net | (11.9) | (10.7) |
Income from continuing operations before income taxes | 13.4 | 10.2 |
Income tax expense | (3.3) | (2.6) |
Income from continuing operations | 10.1 | 7.6 |
Loss (income) attributable to noncontrolling interests | 0.5 | (0.1) |
Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | 10.6 | 7.5 |
Loss from discontinued operations, net of tax (Note 5) | (1) | (1.7) |
Net income attributable to Park-Ohio Holdings Corp. common shareholders | $ 9.6 | $ 5.8 |
Basic: | ||
Continuing operations (in dollars per share) | $ 0.85 | $ 0.61 |
Discontinued operations (in dollars per share) | (0.08) | (0.14) |
Total (in dollars per share) | 0.77 | 0.47 |
Diluted: | ||
Continuing operations (in dollars per share) | 0.83 | 0.61 |
Discontinued operations (in dollars per share) | (0.08) | (0.14) |
Total (in dollars per share) | $ 0.75 | $ 0.47 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to Park-Ohio Holdings Corp. common shareholders before noncontrolling interest | $ 9.1 | $ 5.9 |
Other comprehensive (loss) income, net of tax: | ||
Currency translation | (1.8) | 3.3 |
Foreign currency forward contracts | 0 | (0.2) |
Pension and other postretirement benefits | 0.5 | 2 |
Total other comprehensive (loss) income | (1.3) | 5.1 |
Total comprehensive income, net of tax | 7.8 | 11 |
Comprehensive loss (income) attributable to noncontrolling interests | 0.5 | (0.1) |
Comprehensive income attributable to Park-Ohio Holdings Corp. common shareholders | $ 8.3 | $ 10.9 |
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, 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 | 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 |
Beginning balance (in shares) at Dec. 31, 2023 | 17,029,938 | ||||||
Beginning balance at Dec. 31, 2023 | 289.9 | $ 17 | 155.9 | 240.1 | (88.9) | (43.7) | 9.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income | 7.8 | 9.6 | (1.3) | (0.5) | |||
Stock-based compensation expense | 1.5 | 1.5 | |||||
Stock-based compensation activity (in shares) | 3,065 | ||||||
Dividends | (1.6) | (1.6) | |||||
Payments of withholding taxes on share awards | (0.1) | (0.1) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 17,033,003 | ||||||
Ending balance at Mar. 31, 2024 | $ 297.5 | $ 17 | $ 157.4 | $ 248.1 | $ (89) | $ (45) | $ 9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Income from continuing operations | $ 10.1 | $ 7.6 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | ||
Depreciation and amortization | 8.4 | 7.7 |
Stock-based compensation expense | 1.5 | 1.6 |
Gain on sale of assets | 0 | (0.8) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16.1) | (9) |
Inventories | (13.9) | (1.8) |
Prepaid and other current assets | (5.8) | (6.5) |
Accounts payable and accrued expenses | 20.9 | 1.1 |
Other | (2.8) | 0.3 |
Net cash provided by operating activities from continuing operations | 2.3 | 0.2 |
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Purchases of property, plant and equipment | (5.8) | (6) |
Proceeds from sales of assets | 0 | 1.4 |
Business acquisitions, net of cash acquired | (11) | (0.5) |
Net cash used in investing activities from continuing operations | (16.8) | (5.1) |
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Proceeds from revolving credit facility, net | 24 | 3 |
Payments on other debt | (2.8) | (0.5) |
Proceeds from other debt | 7.1 | 3.2 |
(Payments on) proceeds from finance lease facilities, net | (0.8) | 1.7 |
Payments related to prior acquisitions | 0 | (1.3) |
Dividends | (1.6) | (1.6) |
Payments of withholding taxes on share awards | (0.1) | 0 |
Net cash provided by financing activities from continuing operations | 25.8 | 4.5 |
DISCONTINUED OPERATIONS: | ||
Total used by operating activities | (3.6) | (6.4) |
Total used by investing activities | 0 | (1.5) |
Total used by financing activities | 0 | (0.7) |
Decrease in cash and cash equivalents from discontinued operations | (3.6) | (8.6) |
Effect of exchange rate changes on cash | (0.9) | 0.4 |
Increase (decrease) in cash and cash equivalents | 6.8 | (8.6) |
Cash and cash equivalents at beginning of period | 54.8 | 58.2 |
Cash and cash equivalents at end of period | 61.6 | 49.6 |
Interest paid | 5.5 | 5.2 |
Income taxes paid | $ 2 | $ 3.2 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet at December 31, 2023 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, 2023. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires additional annual and interim disclosures for reportable segments. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is still evaluating the impact that the adoption will have on the consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires additional annual disclosures for income taxes. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2024. The Company is still evaluating the impact that the adoption will have on the consolidated financial statements and disclosures. No other 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, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue by product line and geographic region of our customers 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, 2024 2023 (In millions) PRODUCT LINE Supply Technologies $ 167.6 $ 170.4 Engineered specialty fasteners and other products 29.3 25.4 Supply Technologies Segment 196.9 195.8 Fuel, rubber and plastic products 107.2 110.4 Assembly Components Segment 107.2 110.4 Industrial equipment 79.4 84.4 Forged and machined products 34.1 32.9 Engineered Products Segment 113.5 117.3 Total revenues $ 417.6 $ 423.5 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2024 GEOGRAPHIC REGION United States $ 113.5 $ 71.5 $ 63.7 $ 248.7 Europe 39.0 4.5 18.9 62.4 Asia 20.7 8.5 14.9 44.1 Mexico 19.4 13.7 3.7 36.8 Canada 3.8 7.9 7.8 19.5 Other 0.5 1.1 4.5 6.1 Total $ 196.9 $ 107.2 $ 113.5 $ 417.6 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 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 $60.7 million and $59.9 million at March 31, 2024 and December 31, 2023, respectively, are recorded in Other current assets in the Condensed Consolidated Balance Sheets. 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 $67.9 million and $53.9 million at March 31, 2024 and December 31, 2023, respectively, are recorded in Accrued expenses and other in the Condensed Consolidated Balance Sheets. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
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; gains on sales of assets; other components of pension and other postretirement benefits income, net; and interest expense, net. Results by business segment were as follows: Three Months Ended March 31, 2024 2023 (In millions) NET SALES OF CONTINUING OPERATIONS: Supply Technologies $ 196.9 $ 195.8 Assembly Components 107.2 110.4 Engineered Products 113.5 117.3 $ 417.6 $ 423.5 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: Supply Technologies $ 19.5 $ 14.0 Assembly Components 8.6 7.3 Engineered Products 3.5 5.0 Total segment operating income 31.6 26.3 Corporate costs (7.6) (6.9) Gain on sale of assets — 0.8 Operating income 24.0 20.2 Other components of pension and other postretirement benefits income, net 1.3 0.7 Interest expense, net (11.9) (10.7) Income from continuing operations before income taxes $ 13.4 $ 10.2 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On December 29, 2023, the Company completed the sale of its Aluminum Products business to Angstrom for approximately $50 million in cash and promissory notes, plus the assumption of approximately $3 million of finance lease obligations. The total purchase price consisted of a cash down payment of $20.0 million paid to the Company in December 2022; cash of $15.5 million paid to the Company at closing; and promissory notes totaling $15.0 million payable to the Company on approximately the one-year anniversary of the sale, of which $10.0 million is contingent on the Aluminum Products business attaining certain purchase commitments during 2024. The fair value of this contingent consideration, valued using recurring level 3 inputs, was approximately $9.5 million as of March 31, 2024. Three Months Ended March 31, 2024 2023 (In millions) Net sales $ — $ 46.9 Cost of sales — 45.5 Selling, general and administrative — 3.1 Operating loss — (1.7) Interest expense — (0.7) Loss from operation of discontinued operations — (2.4) Loss from sale of discontinued operations (1.3) — Income tax benefit 0.3 0.7 Loss from discontinued operations, net of tax $ (1.0) $ (1.7) |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In February 2024, the Company acquired all of the outstanding shares of EMA Indutec GmbH (“EMA”), headquartered in Meckesheim, Germany, from the Aichelin Group, headquartered in Modling, Austria. EMA, which is included in our Engineered Products segment, is a leading manufacturer of induction heating equipment and converters and operates through its two locations in Meckesheim, Germany and Beijing, China. The purchase price, net of cash acquired for the acquisition, was $11.0 million. The allocation of the purchase price of EMA is subject to finalization of the Company's determination of the fair values of the assets acquired and the liabilities assumed as of the acquisition date and could be materially different than the estimates presented below. The final allocation, including primarily the valuation of acquired intangibles, is in process and will be completed no later than one year after the acquisition date. Below is the estimated purchase price allocation related to the acquisition of EMA: (In millions) Accounts receivable $ 6.0 Inventories 4.7 Other current assets 0.5 Property, plant and equipment 1.3 Goodwill 4.4 Intangibles 5.1 Other assets 0.1 Accounts payable and accrued expenses (10.0) Deferred income tax liability (1.1) Total purchase price, net of cash acquired $ 11.0 During 2024, the Company is scheduled to pay $2.9 million related to deferred purchase price for the 2022 acquisitions of Charter Automotive (Changzhou) Co. Ltd. and Southern Fasteners & Supply, Inc. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following: March 31, 2024 December 31, 2023 (In millions) Raw materials and supplies $ 111.3 $ 107.6 Work-in-process 59.6 50.1 Finished goods 257.6 253.4 Inventories, net $ 428.5 $ 411.1 |
Accrued Warranty Costs
Accrued Warranty Costs | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 (In millions) Beginning balance $ 5.5 $ 5.2 Claims paid (0.4) (0.9) Warranty expense 0.6 1.0 Acquisition 0.6 — Foreign currency translation (0.1) 0.1 Ending balance $ 6.2 $ 5.4 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items in each period, if any. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2024 December 31, 2023 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility January 14, 2027 6.94% - 7.18% 287.5 263.5 Finance Leases Various Various 15.5 16.3 Other Various Various 19.3 15.9 Total debt 672.3 645.7 Less: Current portion of long-term debt and short-term debt (12.3) (9.4) Less: Unamortized debt issuance costs (2.7) (2.9) Total long-term debt $ 657.3 $ 633.4 In September 2023, Park-Ohio Industries, Inc. (“Park-Ohio”) amended its Eighth Amended and Restated Credit Agreement (the “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 January 14, 2027. As of March 31, 2024, we had borrowing availability of $100.8 million under the Credit Agreement. We had outstanding bank guarantees and letters of credit under our credit arrangements of approximately $41.0 million at March 31, 2024 and $32.8 million at December 31, 2023. 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. The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. March 31, 2024 December 31, 2023 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 328.9 $ 330.2 The fair value of the revolving credit facility is equal to its carrying value as the Company has the ability to repay the outstanding principal at par value at any time. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of restricted share activity for the three months ended March 31, 2024 is as follows: 2024 Time-Based Number of Shares Weighted Average (In whole shares) Outstanding - beginning of year 755,064 $ 18.70 Granted 8,500 25.18 Vested (10,178) (26.72) Canceled or expired (5,435) (17.04) Outstanding - end of period 747,951 $ 18.68 Stock-based compensation is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. Total stock-based compensation expense was $1.5 million and $1.6 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $6.5 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 1.8 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 121 cases asserting claims on behalf of 174 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, 2024 | |
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, 2024 and 2023 were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 (In millions) Service costs $ 1.6 $ 1.2 $ — $ — Interest costs 0.9 0.8 0.1 0.1 Expected return on plan assets (2.7) (2.5) (0.1) (0.1) Recognized net actuarial loss 0.4 0.9 0.1 0.1 Net periodic benefit expense $ 0.2 $ 0.4 $ 0.1 $ 0.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 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, 2024 Three Months Ended March 31, 2023 Beginning balance $ (30.5) $ — $ (13.2) $ (43.7) $ (38.7) $ 0.5 $ (23.6) $ (61.8) Currency translation (a) (1.8) — — (1.8) 3.3 — — 3.3 Foreign currency forward contracts, net of tax — — — — — (0.2) — (0.2) Pension and OPEB activity, net of tax — — 0.5 0.5 — — 2.0 2.0 Ending balance $ (32.3) $ — $ (12.7) $ (45.0) $ (35.4) $ 0.3 $ (21.6) $ (56.7) (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, 2024 | |
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, 2024 2023 (In millions) Weighted-average basic shares outstanding 12.4 12.2 Plus: Dilutive impact of employee stock awards 0.4 0.1 Weighted-average diluted shares outstanding 12.8 12.3 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 19, 2024, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on May 17, 2024 to shareholders of record as of the close of business on May 3, 2024 and will result in a cash outlay of approximately $1.6 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 9.6 | $ 5.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. |
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. |
New Accounting Pronouncements | In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires additional annual and interim disclosures for reportable segments. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is still evaluating the impact that the adoption will have on the consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires additional annual disclosures for income taxes. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2024. The Company is still evaluating the impact that the adoption will have on the consolidated financial statements and disclosures. |
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; gains on sales of assets; other components of pension and other postretirement benefits income, 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 in each period, if any. |
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, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | We disaggregate our revenue by product line and geographic region of our customers 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, 2024 2023 (In millions) PRODUCT LINE Supply Technologies $ 167.6 $ 170.4 Engineered specialty fasteners and other products 29.3 25.4 Supply Technologies Segment 196.9 195.8 Fuel, rubber and plastic products 107.2 110.4 Assembly Components Segment 107.2 110.4 Industrial equipment 79.4 84.4 Forged and machined products 34.1 32.9 Engineered Products Segment 113.5 117.3 Total revenues $ 417.6 $ 423.5 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2024 GEOGRAPHIC REGION United States $ 113.5 $ 71.5 $ 63.7 $ 248.7 Europe 39.0 4.5 18.9 62.4 Asia 20.7 8.5 14.9 44.1 Mexico 19.4 13.7 3.7 36.8 Canada 3.8 7.9 7.8 19.5 Other 0.5 1.1 4.5 6.1 Total $ 196.9 $ 107.2 $ 113.5 $ 417.6 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 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Results by Business Segment | Results by business segment were as follows: Three Months Ended March 31, 2024 2023 (In millions) NET SALES OF CONTINUING OPERATIONS: Supply Technologies $ 196.9 $ 195.8 Assembly Components 107.2 110.4 Engineered Products 113.5 117.3 $ 417.6 $ 423.5 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: Supply Technologies $ 19.5 $ 14.0 Assembly Components 8.6 7.3 Engineered Products 3.5 5.0 Total segment operating income 31.6 26.3 Corporate costs (7.6) (6.9) Gain on sale of assets — 0.8 Operating income 24.0 20.2 Other components of pension and other postretirement benefits income, net 1.3 0.7 Interest expense, net (11.9) (10.7) Income from continuing operations before income taxes $ 13.4 $ 10.2 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Three Months Ended March 31, 2024 2023 (In millions) Net sales $ — $ 46.9 Cost of sales — 45.5 Selling, general and administrative — 3.1 Operating loss — (1.7) Interest expense — (0.7) Loss from operation of discontinued operations — (2.4) Loss from sale of discontinued operations (1.3) — Income tax benefit 0.3 0.7 Loss from discontinued operations, net of tax $ (1.0) $ (1.7) |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation | Below is the estimated purchase price allocation related to the acquisition of EMA: (In millions) Accounts receivable $ 6.0 Inventories 4.7 Other current assets 0.5 Property, plant and equipment 1.3 Goodwill 4.4 Intangibles 5.1 Other assets 0.1 Accounts payable and accrued expenses (10.0) Deferred income tax liability (1.1) Total purchase price, net of cash acquired $ 11.0 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, net consist of the following: March 31, 2024 December 31, 2023 (In millions) Raw materials and supplies $ 111.3 $ 107.6 Work-in-process 59.6 50.1 Finished goods 257.6 253.4 Inventories, net $ 428.5 $ 411.1 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 (In millions) Beginning balance $ 5.5 $ 5.2 Claims paid (0.4) (0.9) Warranty expense 0.6 1.0 Acquisition 0.6 — Foreign currency translation (0.1) 0.1 Ending balance $ 6.2 $ 5.4 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2024 December 31, 2023 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility January 14, 2027 6.94% - 7.18% 287.5 263.5 Finance Leases Various Various 15.5 16.3 Other Various Various 19.3 15.9 Total debt 672.3 645.7 Less: Current portion of long-term debt and short-term debt (12.3) (9.4) Less: Unamortized debt issuance costs (2.7) (2.9) Total long-term debt $ 657.3 $ 633.4 |
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, 2024 December 31, 2023 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 328.9 $ 330.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 is as follows: 2024 Time-Based Number of Shares Weighted Average (In whole shares) Outstanding - beginning of year 755,064 $ 18.70 Granted 8,500 25.18 Vested (10,178) (26.72) Canceled or expired (5,435) (17.04) Outstanding - end of period 747,951 $ 18.68 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 (In millions) Service costs $ 1.6 $ 1.2 $ — $ — Interest costs 0.9 0.8 0.1 0.1 Expected return on plan assets (2.7) (2.5) (0.1) (0.1) Recognized net actuarial loss 0.4 0.9 0.1 0.1 Net periodic benefit expense $ 0.2 $ 0.4 $ 0.1 $ 0.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 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, 2024 Three Months Ended March 31, 2023 Beginning balance $ (30.5) $ — $ (13.2) $ (43.7) $ (38.7) $ 0.5 $ (23.6) $ (61.8) Currency translation (a) (1.8) — — (1.8) 3.3 — — 3.3 Foreign currency forward contracts, net of tax — — — — — (0.2) — (0.2) Pension and OPEB activity, net of tax — — 0.5 0.5 — — 2.0 2.0 Ending balance $ (32.3) $ — $ (12.7) $ (45.0) $ (35.4) $ 0.3 $ (21.6) $ (56.7) (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, 2024 | |
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, 2024 2023 (In millions) Weighted-average basic shares outstanding 12.4 12.2 Plus: Dilutive impact of employee stock awards 0.4 0.1 Weighted-average diluted shares outstanding 12.8 12.3 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 417.6 | $ 423.5 |
Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 196.9 | 195.8 |
Supply Technologies Segment | Supply Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 167.6 | 170.4 |
Supply Technologies Segment | Engineered specialty fasteners and other products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 29.3 | 25.4 |
Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 107.2 | 110.4 |
Assembly Components Segment | Fuel, rubber and plastic products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 107.2 | 110.4 |
Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 113.5 | 117.3 |
Engineered Products Segment | Industrial equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 79.4 | 84.4 |
Engineered Products Segment | Forged and machined products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 34.1 | $ 32.9 |
Revenue - Summary of Disaggre_2
Revenue - Summary of Disaggregation of Revenue by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 417.6 | $ 423.5 |
Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 196.9 | 195.8 |
Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 107.2 | 110.4 |
Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 113.5 | 117.3 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 248.7 | 268.5 |
United States | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 113.5 | 119.1 |
United States | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 71.5 | 81 |
United States | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 63.7 | 68.4 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 62.4 | 59.1 |
Europe | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39 | 39 |
Europe | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4.5 | 4.5 |
Europe | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18.9 | 15.6 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 44.1 | 37.3 |
Asia | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 20.7 | 15.1 |
Asia | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 8.5 | 5.7 |
Asia | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14.9 | 16.5 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 36.8 | 33.8 |
Mexico | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 19.4 | 18.6 |
Mexico | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 13.7 | 10.5 |
Mexico | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3.7 | 4.7 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 19.5 | 18.5 |
Canada | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3.8 | 3.2 |
Canada | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7.9 | 7.5 |
Canada | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7.8 | 7.8 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6.1 | 6.3 |
Other | Supply Technologies Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0.5 | 0.8 |
Other | Assembly Components Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1.1 | 1.2 |
Other | Engineered Products Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 4.5 | $ 4.3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 60.7 | $ 59.9 |
Contract liabilities | $ 67.9 | $ 53.9 |
Segments (Details)
Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | $ 417.6 | $ 423.5 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 24 | 20.2 |
Gain on sale of assets | 0 | 0.8 |
Other components of pension and other postretirement benefits income, net | 1.3 | 0.7 |
Interest expense, net | (11.9) | (10.7) |
Income from continuing operations before income taxes | 13.4 | 10.2 |
Operating Segments | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 417.6 | 423.5 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 31.6 | 26.3 |
Corporate, non-segment | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Corporate costs | (7.6) | (6.9) |
Supply Technologies | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 196.9 | 195.8 |
Supply Technologies | Operating Segments | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 196.9 | 195.8 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 19.5 | 14 |
Assembly Components | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 107.2 | 110.4 |
Assembly Components | Operating Segments | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 107.2 | 110.4 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | 8.6 | 7.3 |
Engineered Products | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 113.5 | 117.3 |
Engineered Products | Operating Segments | ||
NET SALES OF CONTINUING OPERATIONS: | ||
Total revenues | 113.5 | 117.3 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES: | ||
Total segment operating income | $ 3.5 | $ 5 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Disposed of by Sale - Aluminum Products Business - USD ($) $ in Millions | 1 Months Ended | ||
Dec. 29, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration from sale of discontinued operation | $ 50 | ||
Assumption of finance lease obligation | 3 | ||
Proceeds from sale of discontinued operations | 15.5 | $ 20 | |
Consideration from sale of discontinued operation, liabilities incurred | $ 15 | ||
Promissory notes payment period | 1 year | ||
Contingent consideration | $ 10 | ||
Level 3 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Contingent consideration | $ 9.5 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Loss from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of tax | $ (1) | $ (1.7) |
Disposed of by Sale | Aluminum Products Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 0 | 46.9 |
Cost of sales | 0 | 45.5 |
Selling, general and administrative | 0 | 3.1 |
Operating loss | 0 | (1.7) |
Interest expense | 0 | (0.7) |
Loss from operation of discontinued operations | 0 | (2.4) |
Loss from sale of discontinued operations | (1.3) | 0 |
Income tax benefit | 0.3 | 0.7 |
Loss from discontinued operations, net of tax | $ (1) | $ (1.7) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 1 Months Ended | |
Feb. 29, 2024 USD ($) operatingLocation | Mar. 31, 2024 USD ($) | |
EMA Indutec GmbH | ||
Business Acquisition [Line Items] | ||
Purchase price to acquire business | $ 11 | |
Charter Automotive (Changzhou) Co. Ltd. And Southern Fasteners & Supply, Inc. | ||
Business Acquisition [Line Items] | ||
Business combination, scheduled deferred purchase price in current fiscal year | $ 2.9 | |
EMA Indutec GmbH | ||
Business Acquisition [Line Items] | ||
Number of locations in which entity operates | operatingLocation | 2 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Feb. 29, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 114.2 | $ 110.2 | |
EMA Indutec GmbH | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 6 | ||
Inventories | 4.7 | ||
Other current assets | 0.5 | ||
Property, plant and equipment | 1.3 | ||
Goodwill | 4.4 | ||
Intangibles | 5.1 | ||
Other assets | 0.1 | ||
Accounts payable and accrued expenses | (10) | ||
Deferred income tax liability | (1.1) | ||
Total purchase price, net of cash acquired | $ 11 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Components of inventory | ||
Raw materials and supplies | $ 111.3 | $ 107.6 |
Work-in-process | 59.6 | 50.1 |
Finished goods | 257.6 | 253.4 |
Inventories, net | $ 428.5 | $ 411.1 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in product warranty liability [Roll Forward] | ||
Beginning balance | $ 5.5 | $ 5.2 |
Claims paid | (0.4) | (0.9) |
Warranty expense | 0.6 | 1 |
Acquisition | 0.6 | 0 |
Foreign currency translation | (0.1) | 0.1 |
Ending balance | $ 6.2 | $ 5.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3.3 | $ 2.6 |
Pre-tax income | $ 13.4 | $ 10.2 |
Effective tax rate | 25% | 25% |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Finance Leases | $ 15.5 | $ 16.3 |
Other | 19.3 | 15.9 |
Total debt | 672.3 | 645.7 |
Less: Current portion of long-term debt and short-term debt | (12.3) | (9.4) |
Less: Unamortized debt issuance costs | (2.7) | (2.9) |
Total long-term debt | 657.3 | 633.4 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 287.5 | 263.5 |
Revolving credit facility | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.94% | |
Revolving credit facility | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.18% | |
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 ($) | 1 Months Ended | |||
Dec. 31, 2017 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |
Line of Credit Facility [Line Items] | ||||
Bank guarantees and letters of credit amount | $ 41,000,000 | $ 32,800,000 | ||
Percentage ownership | 100% | |||
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 | Eighth 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 | $ 100,800,000 | |||
Revolving Credit Facility Canadian Sub-Limit | Eighth 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 | Eighth 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, 2024 | Dec. 31, 2023 |
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 | $ 328.9 | $ 330.2 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Share and Performance Share Activity (Details) - Time-Based | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Outstanding - beginning of year (in shares) | shares | 755,064 |
Granted (in shares) | shares | 8,500 |
Vested (in shares) | shares | (10,178) |
Canceled or expired (in shares) | shares | (5,435) |
Outstanding - end of period (in shares) | shares | 747,951 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 18.70 |
Granted (in dollars per share) | $ / shares | 25.18 |
Vested (in dollars per share) | $ / shares | (26.72) |
Canceled or expired (in dollars per share) | $ / shares | (17.04) |
Outstanding - end of period (in dollars per share) | $ / shares | $ 18.68 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 1.5 | $ 1.6 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 6.5 | |
Unrecognized compensation cost related to non-vested stock-based compensation, period for recognition | 1 year 9 months 18 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2024 plaintiff claim | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending cases | claim | 121 |
Number of plaintiffs | plaintiff | 174 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Benefits | ||
Components of net periodic benefit cost | ||
Service costs | $ 1.6 | $ 1.2 |
Interest costs | 0.9 | 0.8 |
Expected return on plan assets | (2.7) | (2.5) |
Recognized net actuarial loss | 0.4 | 0.9 |
Net periodic benefit expense | 0.2 | 0.4 |
Postretirement Benefits | ||
Components of net periodic benefit cost | ||
Service costs | 0 | 0 |
Interest costs | 0.1 | 0.1 |
Expected return on plan assets | (0.1) | (0.1) |
Recognized net actuarial loss | 0.1 | 0.1 |
Net periodic benefit expense | $ 0.1 | $ 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 289,900,000 | $ 267,900,000 |
Other comprehensive income (loss) | (1,300,000) | 5,100,000 |
Ending balance | 297,500,000 | 278,900,000 |
Tax 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 | (30,500,000) | (38,700,000) |
Other comprehensive income (loss) | (1,800,000) | 3,300,000 |
Ending balance | (32,300,000) | (35,400,000) |
Cash Flow Hedges | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 0 | 500,000 |
Other comprehensive income (loss) | 0 | (200,000) |
Ending balance | 0 | 300,000 |
Pension and Postretirement Benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (13,200,000) | (23,600,000) |
Other comprehensive income (loss) | 500,000 | 2,000,000 |
Ending balance | (12,700,000) | (21,600,000) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (43,700,000) | (61,800,000) |
Ending balance | $ (45,000,000) | $ (56,700,000) |
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, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Weighted-average basic shares outstanding (in shares) | 12.4 | 12.2 |
Plus: Dilutive impact of employee stock awards (in shares) | 0.4 | 0.1 |
Weighted-average diluted shares outstanding (in shares) | 12.8 | 12.3 |
Antidilutive securities excluded from computation of diluted EPS (in shares) | 0 | 0.1 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ / shares in Units, $ in Millions | Apr. 19, 2024 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 |