Exhibit 99.1
FOR IMMEDIATE RELEASE CONTACT: EDWARD F. CRAWFORD
PARK-OHIO HOLDINGS CORP.
(216) 692-7200
PARK-OHIO ANNOUNCES THIRD QUARTER 2003 RESULTS
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CLEVELAND, OHIO, November 7, 2003 -- Park-Ohio Holdings Corp.
(NASDAQ:PKOH), today announced results for its third quarter ended September 30,
2003.
NINE MONTHS RESULTS
Park-Ohio reported net income of $5.2 million or $.48 per share
dilutive for the first nine months of 2003, compared to a loss before cumulative
effect of accounting change a year earlier of ($.7) million or ($.07) per share.
Park-Ohio reported net sales of $461.6 million for the first nine months of 2003
compared to net sales of $478.3 million one year earlier.
THIRD QUARTER RESULTS
Park-Ohio reported net income of $.1 million or $.01 per share dilutive
for the third quarter of 2003, compared to a net loss a year earlier of ($.2)
million or ($.02) per share. Park-Ohio reported net sales of $146.8 million for
the third quarter of 2003 compared to net sales of $157.8 million one year
earlier.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "We
are pleased that the Aluminum and Manufactured Product segments continued to
contribute strongly in the Third Quarter. However, ILS revenue and earnings in
the Current Quarter were lower compared to last year, partly because of the
positive impact on Third Quarter 2002 of the early termination of a high margin
pharmaceutical sales contract, and the presence of a subsequently sold unit. The
ongoing ILS business showed a profit improvement relative to 2002, and prospects
are good for the future. We are forecasting higher Fourth Quarter revenues as
ILS benefits from new customer relationships and cyclical strengthening in
several market segments. We expect 2003 EPS in a range between $.70 and $.80."
A conference call reviewing Park-Ohio's quarter-end results will
be broadcast live over the Internet on Monday, November 10, commencing
at 2:00 p.m. EST. Simply log on to
http://www.firstcallevents.com/service/ajwz393314115gf12.html.
Park-Ohio is a leading provider of supply chain logistics services, and
a manufacturer of highly engineered products for industrial original equipment
manufacturers. Headquartered in Cleveland, Ohio, the Company operates 23
manufacturing sites and 36 supply chain logistics facilities.
This news release contains forward-looking statements that are subject
to certain risks, uncertainties and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, estimated or projected. Among the key factors that could cause
actual results to differ materially from expectations are the cyclical nature of
the vehicular industry, timing of cost reductions, labor availability and
stability, changes in economic and industry conditions, adverse impacts to the
Company, its suppliers and customers from acts of terrorism or hostilities, the
uncertainties of environmental, litigation or corporate contingencies, and
changes in regulatory requirements. These and other risks and assumptions are
described in the Company's reports that are available from the United States
Securities and Exchange Commission. The Company assumes no obligation to update
the information in this release.
-more-
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
(In Thousands, Except per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
Net sales $146,830 $157,832 $461,596 $478,300
Cost of products sold 125,078 134,639 389,588 409,029
------- ------- ------- --------
Gross profit 21,752 23,193 72,008 69,271
Selling, general and administrative expenses 15,008 14,496 45,707 43,450
Restructuring and impairment charges 0 1,006 0 5,262
------- ------- ------- --------
Operating income 6,744 7,691 26,301 20,559
Interest expense 6,512 7,024 19,964 20,663
------- ------- ------- --------
Income (loss) before income taxes and cumulative effect of accounting change 232 667 6,337 (104)
Income taxes 144 909 1,116 610
------- ------- ------- --------
Income (loss) before cumulative effect of accounting change 88 (242) 5,221 (714)
Cumulative effect of accounting change 0 0 0 (48,799)
------- ------- ------- --------
Net income (loss) $88 ($242) $5,221 ($49,513)
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Amounts per common share:
Basic: Income (loss) before cumulative effect of accounting change $0.01 ($0.02) $0.50 ($0.07)
Cumulative effect of accounting change 0.00 0.00 0.00 (4.68)
Net income (loss) $0.01 ($0.02) $0.50 ($4.75)
Diluted: Income (loss) before cumulative effect of accounting change $0.01 ($0.02) $0.48 ($0.07)
Cumulative effect of accounting change 0.00 0.00 0.00 (4.68)
Net income (loss) $0.01 ($0.02) $0.48 ($4.75)
Common shares used in the computation
Basic 10,501 10,434 10,500 10,434
Diluted 11,016 10,434 10,937 10,434
Other financial data:
EBITDA, as defined $10,627 $13,085 $38,556 $39,183
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Note A--The Company completed the impairment tests required by Statement of
Financial Standards No. 142 "Goodwill and Other Intangible Assets" and effective
January 1, 2002, recorded a $48.8 million charge reflected as a cumulative
effect of a change in accounting principle.
Note B--The effective income tax rate for the first nine months of 2003 is less
than the statutory Federal income tax rate due primarily to the recognition of
net operating loss carryforwards.
Note C--EBITDA reflects earnings before cumulative effect of accounting change,
interest and income taxes (Operating Income), and excludes depreciation and
amortization, restructuring and impairment charges and certain corporate-level
expenses as defined in the Company's Revolving Credit Agreement. EBITDA is not a
measure of performance under generally accepted accounting principles ("GAAP")
and should not be considered in isolation or as a substitute for net income,
cash flows from operating, investing and financing activities and other income
or cash flow data prepared in accordance with GAAP or as a measure of
profitability or liquidity. The Company presents EBITDA because management
believes that EBITDA could be useful to investors as an indication of the
Company's ability to incur and service debt and because EBITDA is a measure used
under the Company's revolving credit facility to determine whether the Company
may incur additional debt under such facility. EBITDA as defined herein may not
be comparable to other similarly titled measures of other companies. The
following table reconciles net income (loss) to EBITDA, as defined:
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
Net income (loss) $88 ($242) $5,221 ($49,513)
Add back
Cumulative effect of accounting change 0 0 0 48,799
Interest expense 6,512 7,024 19,964 20,663
Income taxes 144 909 1,116 610
Depreciation and amortization 3,850 4,211 12,062 12,720
Restructuring and impairment charges 0 1,006 0 5,262
Miscellaneous 33 177 193 642
-------- -------- -------- --------
EBITDA, as defined $10,627 $13,085 $38,556 $39,183
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CONSOLIDATED CONDENSED BALANCE SHEETS
PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES
September 30 December 31
2003 2002
(Unaudited) (Audited)
----------- ---------
(In Thousands)
ASSETS
Current Assets
Cash and cash equivalents $ 1,682 $ 8,812
Accounts receivable, net 106,783 101,477
Inventories 153,756 156,067
Other current assets 10,894 8,626
-------- --------
Total Current Assets 273,115 274,982
Property, Plant and Equipment 237,825 227,426
Less accumulated depreciation 127,402 114,302
-------- --------
Total Property Plant and Equipment 110,423 113,124
Other Assets
Goodwill 82,111 81,464
Net assets held for sale 10,193 19,205
Other 56,045 52,083
-------- --------
Total Other Assets 148,349 152,752
-------- --------
Total Assets $531,887 $540,858
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $61,985 $74,868
Accrued expenses 56,811 48,907
Current portion of long-term liabilities 2,492 3,056
-------- --------
Total Current Liabilities 121,288 126,831
Long-Term Liabilities, less current portion
9.25% Senior Subordinated Notes due 2007 199,930 199,930
Revolving credit maturing on July 30,2007 104,500 114,000
Other long-term debt 10,169 9,886
Other postretirement benefits 23,079 23,829
Other 2,663 3,483
-------- --------
Total Long-Term Liabilities 340,341 351,128
Shareholders' Equity 70,258 62,899
-------- --------
Total Liabilities and Shareholders' Equity $531,887 $540,858
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Note A--The revolving credit was refinanced by the Company on July 30, 2003,
maturing July 30, 2007 and is classified as long-term debt.