PKOH - Earnings call transcript Q3 2017 | Park-Ohio Holdings Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Park-Ohio Third Quarter 2017 Results Conference Call. At this time, all participants are in a listen-only mode. After the presentation, the company will conduct a question-and-answer session. Today's conference is also being recorded.

If you have any objections, you may disconnect at this time.

Reform I today's remind as call the Securities started, statements that defined get Private on XXXX. made maybe Litigation we want everyone to certain in Before of Act forward-looking statements forward-looking actual to cause are that projected. from results to and differ risks These uncertainties statements may those materially subject with well and filed company's the XXXX which was A risks found the in uncertainties list of earnings as in March the X, XXXX on maybe relevant press SEC. release as XX-K,

discuss may as EBITDA defined performance company Additionally, earnings defined, are Principles. adjusted of the EBITDA as Accounting an adjusted and measures Accepted earnings as under and Generally not

For a Mr. to refer Mr. company's turn CEO. recent attributable as income to over earnings reconciliation Park-Ohio now and Please the proceed, earnings common conference release. to and the I'd EBITDA to like please adjusted for shareholders to Edward reconciliation defined, net net of Chairman of to Crawford. Crawford, income as

Edward Crawford

call. quarter and Good the gentlemen, ladies conference Matthew the to call President morning, now Park-Ohio's of Crawford, Company. Welcome third turn over the XXXX May to I

Matt Crawford

To our Thank expectations. good morning. internal to of bit results mix begin you relative our a third quarter of and a was bag

strong. the We some Our revenue which affected have was costs bottom-line. unforeseen did

because locations in of cash our made the credit availability in Aero-Missile Engineered under $XXX facility. borrowing acquisitions. would of to of to I Components Aerospace hand XXXX Heads on recent and business global we & two, months addition Heads Threads Technologies, acquisitions, three and over is business, QX services our The three in our management our of One, The enhance $XX Product our XXXX in most chain QX. XX new segment, in management Threads closed strengthen India. which acquisition bring in England, leading already and of a our our which annual million for group with clients. headquartered has Czech All European supplier of and is and footprint, market unused Supply revolving Relating remind have December services diverse position the everyone accretive strategic sales Poland million All supply Republic, related third in quarter, the global for in which and important GH Supply global continue approximately lifting to We will that to XXXX. focus equipment significant quarter the on confirm I efficiencies our progress positioning these, future Europe, in will heavy new Assembly progress in while significant Chinese busy, lots strategic more on expect with relative million cash be particularly highlight continued Financially, in Supply integration operating are also facilities and QX. although are financially group acquisition in investments of $XX growth in they optimization initiatives offerings. include, grow which as initiatives I order we quarter and Components moderate capital as these working these two continued our improved made investing to to our costs our Operationally, very to Technologies flow strategic those later. factories the received each and to quickly mentioned new during want to the capital which pleased guidance product company also for I businesses in until well XXXX, as not the ended by & chain Technologies, supply customers past and begin we UK

results. up third $XXX and quarter of our over two million sales XX% XXXX years. our sales highest to Net quarter in year-over-year now represent Turning were

was X% from from business of XXXX. in markets the generated was acquired which XXXX more detail in period. GH for we late than and new in products. that discuss combination sales induction existing driven by demand higher below, will the sales I net sales higher end As growth Year-to-date of a growth market $X.XX Organic corresponding products billion was

the and driven product nine by grew EPS products. for and share. our rubber mixed. XX, adjusted for segment QX. ended primarily of higher we were per $X.XX technologies our our Components of to Lower our volume $X.XX our September growth and Product end diluted Engineered achieved was demand in sales the most during share isolated and Supply were diluted of $X.XX segment months Assembly Sales in per market During businesses quarter, adjusted EPS extruded Sales plastic mold lines. GAAP EPS is

roughly prepare orders. XX.X% in to XXXX, the up continue for decreased Year-to-date to related to percent able and lower XX.X% and our new in margins improvement to higher SG&A lower this as XXXX, fuel as two XX.X% our sales margin primarily was XXXX. were increased launch expansion our we pipe and China SG&A XX.X% of from in different of businesses, out new gross to a year-over-year sales due lower in well a in operating year additional build sales driven from quarter on mix, of to We XX% XX.X% revenues see significant volumes to by up XXXX on and industrial in from continues. and equipment a levels on product and income and rubber filler extruded China, three, an in to basis adjusted where compared absorption was GAAP facilities basis, approximately is upfront However, of equal our XX% a cost higher cost to year-to-date Operating $XX plastics in to Canada to lines Gross the incurred a million fuel rail XX.X% income basis. due Mexico sales in start XXXX and is one, as ago. which group third

million $X.X higher the connection and quarter increase in debt compared due in was year, the the was incurred $X.X senior third primarily notes. to the GH the our interest to balance acquisition prior with on million expense On the

increase year-to-date interest years. basis, income XXXX, was XX%. versus an Our in in both earned of rate million pretax of on effective million we adjusted Year-to-date X.X% $XX $XX.X an

you accruals relating to $X positions in quarter QX was In XXXX tax may reversal various uncertain for XX%, similar as rate totaling a this resulted net income the million tax benefit recall, included a for of which income effective we expired. limitations million totaling had $X.X year ago. rate XXXX reversals which previous the tax statutes Our tax third of

For above, the full including we expect XXXX full in tax as XX%. reversal, QX effective our to year approximately noted income year the rate be

tax our $X.XX number result, per in QX a was was and interest as adjusted income the XXXX than the diluted rate. EPS diluted higher $X.XX of compared in share higher QX adjusted In As net driven share number per September expense, in year-to-date to one, by period two, effective XXXX. lower

the year-to-date XX%. up management our cash XXXX working working we good our net performance capital adjusted EPS year supported $XX tax strong by earnings million, improved was by XX Excluding efficient of flow our flows days. the QX ago, previously driven mentioned, reversal and is mix. by a a in growing operating Compared sales of are capital accruals to cash

CapEx quarter resulting million. Our $XX in of million the was in CapEx $X.X a year-to-date about

$XX the we're CapEx to year approximately of For $XX million XXXX full million. forecasting

saw end and truck-related new in and business We $XXX end key implemented Now million our segment results. highlighted in QX. In Technologies in customer many XXXX. by a demand was the demand review in market. half This market truck a of in XX% increase our higher period let's Supply to driven by end markets, $XXX several XXXX up improved in sales the the million were of second markets from increase

increasing recreational in and experienced also semiconductor equipment, power aerospace. We demand year-over-year sports and

We many strengthening XXXX these expect markets of of end continued the to and see XXXX. of remainder for into

proprietary XX% through Supply Operating were in strong was increasing from future up business ago, the it $X.X our to up compared this sales to moving XX% $XX.X We a manufacturing products. investment due In as to over fastener an in for an primarily sales quarters increase profit ago, driven our a in facility by past demand support several business Technologies to made income higher addition, a year from continued this new larger million to sales. of year planned growth. flow million global

pipe Components operating to million foreign were, a X% was costs jobs lines. million and production partially was decline this by this kick by the up lower Supply demand our in off was these operating million our of up sales basis $XXX until due affected up facility decrease operating fuel of $X customer new our half and and lines. higher in extruded related our in modestly losses. The rail global impact continue higher sales strategy. Year-to-date, in significant XXXX Technologies and income to by first quarter sales our during segment Although, were QX. product currency driven with of sales we patients of to was The income number fuel volumes growth million which down will the rate from points. Assembly rubber segment through will the plastic And was business $X.X lower of $XXX a a sales This offset margin XX were product filler lower lines reward third

quarter, as down parts. down business plants million $XX.X in in the income in rubber two decrease start Year-to-date down our rails income margins sales $XX.X in were operating due Components $X.X discussed molded year-over-year. launch X% compared China lower For as Components operating margin sales Segment And which cost absorption as related first to basis in segment was operating rubber extrusion ago. in facilities points. were extrusion produced in million Assembly The well comparable our Assembly a fuel were XX the million above. operating was for year new aluminum to to was up second, and

million Engineered sales from Turning to demand threading million acquired higher in induction $XX to heating pipe compared up period. and now our Product businesses in business. QX year a result from sales GH $XX our and last XXXX the current of were stronger to The the XX% in with segment sales

XX% XX% and by in impact in operating the driven levels, income income the by the were XXX year group, sales up $X.X and in was points were the up XX% quarter equipment Year-to-date up Excluding Operating was the new of XX% QX operating our and in organic equipment up GH, ago. XX% respectively sales sales Products of year-over-year million segment aftermarket higher period inclusion customer up XXXX year-over-year. results GH. segment driven demand was basis industrial sales growth a of up was over a increased Engineered the and margin in segment this same

to new experience aerospace, continue bookings increase primarily Although certain remains an in and markets for end this equipment. military in sluggish segment we rail

that XXXX and to recognize revenues finished future. and fourth we quarter importantly bookings GH results expect EPS sales our additional result and adjusted of investments financial We this XXXX. to period will In liquidity over execute QX like on year reaffirming between attractive those are plan. in XXXX But revenue current earnings continued our than a more bookings equipment Specifically we ago. QX than organic the to conclusion, today from some good very XXXX. our bookings our strategic continue based strategic that related new to million into share. for the of our most remain increasing are were you guidance, our and strong now and growth double XXXX of in growth into our we markets comment related With higher $X.XX well XX% profitability corresponding on in September were for in XXXX the to I'd and strategy. expectations are end $XXX Thank per guidance of Year-to-date excluding much. year positioned XX optimistic we the quarter; our included for and we make full as costs very position of $X.XX recent a

Edward Crawford

look you dull thank XXXX's to results me. third very Well, quarter Matthew.

surge So, the which worldwide. will continue silo This companies think Supply I will follows they as grow, is company. The company to place is to to for industrial bright taking prosper. that the respond the they Tech tend future, speak I other as to a very

on So, our looks participating as and materials, it for Products the historically turned a highest capital particularly of how trucking process XXXX we're silo has the that basis. Engineered we're equipment, in oil and the been margin that's finally again beyond. excited activity gas about and great is worldwide corner,

activities a Mexico. become and And had open fair continue assets will Components the the to particularly lines now like good to value MA you. I to will finally would grow China increase Assembly available. questions. as in Thank

Operator

first your Our line the Instructions] Marshall Edward Sidoti with [Operator from and Company. proceed you. of comes with Please question. Thank question

Edward Marshall

guys. morning Good

Matt Crawford

Edward. morning, Good

Edward Crawford

Good morning.

Edward Marshall

people you to didn't targeted you've mentioned some you the in training in related and defined to XXXX, and costs about just et then prepared facility et of location if cost going sure back can sales And talk sooner I cut guess that faster incurred costs? maybe far, the maybe raising the unforeseen I the I the So issues make cetera, than these you cetera? too like wanted curious scope, I'm cuts sounds costs you remarks, than you mentioned think costs, costs are with

Matt Crawford

perhaps blanks. in It’s Hi. that try be Crawford. and without we off But, we very the I'll period can to are corresponding the fill is benefit. so in facility Matt at on currently costs the significant absorbing kick clear someone it what financial the we least additional third have

for year. into of global product our amount presence lines won't growth next many a plan included that we several In have end them China those see of key strategic the growth with Our Mexico a expansion the cases in orders. significant giving both and come of booked of until,

the We at amount have facilities. accelerated given we've which accelerated the pace are orders those building in we demand, of

growth Canadian a faster I opportunity there. noted the also in of So, margin you think significant and that think I then and witnessed our business I business,

and facility. enlarged we've - So moved enlarged that

a So with most side in to accommodate sales. the lot going corresponding benefited cases have on not facility we've and growth on the got we

corresponding So, share. yet we dollars become or you, expense seen we of to need many growth a hundred the can haven't revenue where I few quickly don't very outstanding, don't shares $X.XX thousand so $X.XX remind that have

that's Engineered prepared thoughtful area we've how maybe segment. been I had a, that in pretty which incremental would, that, think to there to to the be its relative comment team I what cost scaled and is is some the say fast has only we've relative rebuilding in Products trying I the also the to would during been I So, discuss there would comments.

We are there that five in quickly eroded, aren't that replace business I no the we that seeing or are revenue backlog. is the question moving quantity and terms in to mentioned just increases the massive last There four people from line very years. as both of over quality,

se is the going necessarily lines return be revenue So, at an the lines. as challenges there per executing some at on on not you to executing margin

only of any you to given in you mean we're business, order I news have But to business couple as as rebuild again have cents of a we've the in couple share a once So, that executing blitz period. is as watch quickly good important our bottom-line. it the got contribution cents a three is to if of would the us and of very any strategic you in know important us given important. not rebuilding possible now what to is months be cost that's a What's going couple and part again to of

So made accuracy last was to I as I that years would or last some and sort but of years remember one four to wasn't the comment, is that's say piece eroded. the that that there business we that business year, just changes over business mean that five adjusted

and get So bit to struggle it came little back to right. going a we're it

Edward Crawford

a to as unfortunate taken quickly, everything equipment respond these part not are our of trip individuals, really our culture, ability orders finally time. year of already the we little cost are a and the portion long that business, roll front ready to launching this of have factories still think flowing XXXX, getting in period it. encouraging XXXX have reduce momentum. facilities we gained on cost capital the to Edward, have door as we The and done That's we've and in okay. there shift something we with I not some not out just we be the have encouraged But will after which XXXX, large much in in extra this

to necessary that speed that have are things need some, there full napping efficiently. the taken given taking up on easy, we from down but talent way to slowdown, a view not not accomplish we the is So, is -

Edward Marshall

China. scenario, you form want Mexico make to come their book to Park the this more you correct? orders, on type there commitment Are these you of will they goes talked Okay. is it for we the some building the sure the is it talked mean just continue beyond orders those kind I clear, expansion OEM just if And kind than that but in that of using of lines and capacity, - about about to out be build product I are a,

Matt Crawford

vote not you the tooling get you. and OEM question your confidence they I is you book quite when business means, for buy from significant I'm can sure most with of typically mean what an

three, seen healthy So, the big I lines We're big key I not talking the with now but companies get are to I'm want talking the them, a share from of think the that, opportunity about also myriad the and OEMs of who in commitment I discussed. of business we've have about seeking in I'm three. some Chinese are European also companies us do with product to our

a one in and pony an with there not to you OE, pony you So, no trick from more is be I this demonstration not with And buying get to business trick in is terms geography. terms honest than order one tooling think wanting the do a of placing this is of candidly, OEM you.

Edward Marshall

course. Of

Pat Fogarty

Pat Fogarty. This is

strategy new with to plans. those build allow began Mexico out Our in both China to orders us and booked

this expect they come the orders strategy. those Once on to a So will in orders build we expand have we it wasn't and those locations.

Edward Marshall

Got high-quality… it. sounds It the like

Matt Crawford

comment my the little in needed This and doubled to is happen. is we're going globally space this since too, think a and particularly what not to we investments our a in leader, has to going new it see we demand story. that were world some we're bit a what become it. We I customers a we're size particularly has thought acquired in make because make investments. fuel be we China, maybe could exactly continue demanding Edward, that If it. business back what rail incredible tripled to business page this mean

a from to inch, it of of million had. took we got So, to advantage this million, corner, product with and OE to think partners discuss what up invest. important and had to there, time we building every us million us partners, and But, I myriad X of is run globally know heard that line for this every every you've Tier $XXX it's $XX business, nice where maximize see we you a $XX

really this new So news. isn't

Edward Marshall

domestically? the I last, four you're gave mean for Glad I getting Great, of finding in done I'm in internationally. acquisitions, great, guess that. guess I you okay. internationally the of multiples last and, Are you out were active than seeing any more forum you are see what deals I the curious on three the I you more the or and guess U.S. rationalization are America reasonable North that

Pat Fogarty

the clear in Europe you time is for there what the really systems us and or they are what we lead lead because is us for this company. into there is Technologies taking Keep to momentum in is this are euro example bought Supply company in another sector, seeing Edward, what mind, zone Europe, company, one another first and stand for. we will the Well, the will that to

that So loaded customers the with just haven't special that have really is that had of ever companies smaller relationship business, even area or technology. franchise mid-sized the with that our

think this I add months the it's a I we And return we that type view think seems you're now. not I it, to but the it's from so And silos see reasonable look don't it's we're pressures forward coming out, going I think just for see firms can going number and in to there acquisitions right less have companies like private that the pressure with point is time first a been aiming And point, get when ago. we guys with another and to works, less say for one So person interested year business prices when talking from of at as we to that move make leaders I that's that I pressure the and or and you long in X it be unparallel the from That are multiples that the the about. private with have softening, outstanding flows would have equity strong people at ago that move time. are of at reflect existed acquisitions, very M&A even down. that

know referrals, Then good, can shortfall, into, haven't our growth I'm target. we've what's are are $X.XX amount in I mode in see go. but really in spent simply a really been I that a we're and doing see EBIT. as then I money, the it, future. watching this is the in to $X.XX, deals, truck I'm the And that things changing, its in a reductions address if active tax I that in small back success I you where would lot So we in we upscale transactional money is that But this opportunities are know add-ons, this fall pebble. little particularly is any there have hearing ourselves road a the more this mean get serious because the or they so been the effort hole not is future, way in and will aimed ready of here how like a the to to we

builder. So, $X.XX I long to potential and a this the have the clear, compared I but disappointed been we're more that, not is you know it's excited time, make running as long-term. in about very, a about to a just been business mean it's pebble is want am very I that here, the road I what just

things the make we're to can do future. going the, So, enhance we when

Edward Marshall

it. All great. appreciate I Thanks guys, right,

Pat Fogarty

Okay.

Operator

from comes question with Steve proceed of Please question. KeyBanc. Barger line next Our the your with

Ken Newman

is morning this guys Steve. Newman for good Ken Hey on

Edward Crawford

Hi, Ken.

Ken Newman

morning. good question, first the So,

to a is we cost a is revenue of, can quickly that that So of did this XXXX get or first that this something expect it's to early generate question, I value guys and, out moderate me get normalized and incremental with whether quarter. and year much those you the bit are, operating margins start-up that the you that's to understand sense of as you kind launch excuse back Trying margins leverage how phenomenon? op of Technologies around operating cost is I Supply the cost the expect have business, incurred

Matt Crawford

but running how not detail market return on heard get talk down business the Every is intensive which capital working Ken. is Supply think capital, it's we a stronger, Technologies, start I'll This we if measure margin talking when lot some the about the we a invested have truck us important then margin about on you how particularly about this means of business. singularly we the business. conversation

we margin. So efficiencies our investment, think our our relative about to

clear growth degradation see capital accounts, if so period, is you can invested lower meaning cost, its margin in current higher are no be the interim to in margin. lower lower sometimes getting a but we customer incremental with So margin, that accounts, on on investment return margin fantastic at particularly but we perhaps a incremental with return products will, but yes

understand to mix I in outstanding business it So, what I is articulate an thing third from and some the saw, invested return important returns, this consider has in to would that degradation particular quarter our but on margin. would capital

So, I to are this affect would did more some that, nature. more short-term period we just business there are which line. measure or around gross areas margin in to Having some said a what cost absorb very difficult that absorbing

mine is is currency The exposure. first guess as good foreign your and

lot the done of for building OEMs of of sometimes outside and is get with doing We of global risk. a currency poker U.S. have prices one business the you business

Number context. the hundred cents part performance that that are of money currency short, lot, few we're particularly sort facility detail into that sort as Once we maybe business but about, little that will but middle into going of we talk on exposure XXXX an go $XXX to can moderate growing matters a that two of is Pat impacted have a few spent So not the in we but dollars space continues grow. again it about XXXX important feels business of suddenly a of some that Supply as Technologies. means, feeling something thousand million we defensive becomes what feel in

discussed we MRO business, lastly those do early So related but are of we've so businesses they build to contributing, calls the not contributing of on strategic an prior stages expect. would necessarily out out the they in aerospace are are initiatives, development the we still way an build accretive that of and some have business,

months, I guess initiatives will currencies a facility longer, focus on just too is. the each that's whatever, as it will thing next time think is what be good something a as the is and capital you every in a over me margin invested believe cost Park-Ohio could tell on, we those shouldn't period And would I account, strategic they your Supply much good little six So, moderate higher mix which Technologies. of it the return little because mine for moderate buys another the is

point my over a So, has margin they quarter in is for discussed modestly to third the the of would period. we profile here the them reasons But not expect this where business below we changed. be were long-term

Ken Newman

and me any That to small seen the are EPS on your and is push little can price EBIT guess to bit some inflation going material a ability color curious, helpful. inflation kind And as negatively on color trust you I price impact how follow-up the I of creep understand up this quarter looking cost offset share account did forward? that, how we you at or of is any provide positively here. have to

Matt Crawford

both sides. an that's now excellent on Yes question. I'll comment

the pricing of the of some color do the amount deflationary On key the service. broader on other broad our around adjust we be large we or with do the we customer to some But, relatively That given wire with products. relationships in SKUs and challenging going of into our go components like inflationary to classes things certainly raw marketplace. rod index side material to best we best continue that to can things can

has the on for that lot on will. our of side, products market a up if undoubtedly the work customer do we you has stiffened So,

side to we're around always in current hanging low resource We the contracts are particularly cautious will period that you up into a with material translated increases, fruit raw bit. coming the we probably is cost right suggest if renegotiation now would that's markets not end. that into go stiffening the as recognizing cost the period on of an we significant or I are push to cognizant which are but suppliers

Ken Newman

then, question from And Okay. one last just me.

this growth growth for growth. confidence operating continued in income visibility the and XXXX and and about your continued talked You EBITDA

orders confidence what XXXX you maybe the can talk in ready at gives in improvement? backlog talked what's look about you to As that which year-over-year ship that's about you and you earlier, just for

Pat Fogarty

of $XX In little Ken, new through this we Fogarty. booked to and bit equipment get Those a is quarter our maybe of of orders capital in million first Pat leased flow the QX XXXX we'll would in equipment begin here in orders. the year quarter the will and our out of in those but And the XXXX. QX occur XXXX, of recognition in in bookings important the QX growth carry fourth what's next rest to continued of is year.

the bookings very continues obviously new to next to hopeful quarter that fourth the increase and we're and continues quarter into because in benefits we have now we're trend of first XXXX. optimistic, significant So, year, and the

Ken Newman

for the guys. color Thanks

Operator

Our Please from with Markets. with Rodriguez the comes Capital next question your question. of proceed Marco Stonegate line

Marco Rodriguez

Good Thank for questions. morning, taking guys. my you

Edward Crawford

are Good today? morning, how you

Marco Rodriguez

Doing thanks well, you? and very

Edward Crawford

Oh great, you. thank

Marco Rodriguez

technologies the are I'm inside and supplier then, Canada that following other that investments Just new follow-up in Ken, components, am then a of the facilities too there couple to that of understanding correctly, the China fasteners. understanding your and you I'm assembly you quick the made China, in here is facilities. And and the just assuming on fasteners correct? is If some one for Mexico trends I Mexico just in

Matt Crawford

Correct, correct.

Marco Rodriguez

are facilities, terms Got such those investments the these you. or orders that driving And clients? the in of you increase clients, from guys existing clients you are that seeing then, new in for are

Matt Crawford

have unquestionably, -- highest the the as I to percentage of the think Chinese It's Chinese particularly a we facilities customers. brand refer developments, combination. new But new

of our OEMs to function a access directly Chinese is being ability localized, -- it's bottom-line. example, For

and in a of say little in customers So, disproportionately I and current in each Canada customers China. location disproportionately Mexico but bit both new would

Marco Rodriguez

revenues, components Got to fiscal where of translate far mid-XX see a of you supply will revenues assembly as you in leverage those expectation will you. the for then, of And those come understanding kind of ramp will start some And see through. it better then I'm XXXX? correctly is and significant into the orders kind both technologies we in and QX some terms as maybe, in

Matt Crawford

maybe and you in. honest quite jump be To if Pat can

We have XXXX. business planning for our process completed not

bottom-line the costs. but at begin those though top-line I feel -- would we each complete excess at will particularly, as I and yes, those benefit So, initiatives of some as from absorb the to of particularly

common XXXX I be they difficult. meaningful will at could in exclusively think but So, and this XXXX, point be Any? to

Pat Fogarty

as agree to I components, Matt's as realized that we will we into starting see we that those XXXX. to the it get would to production I are mode year. And course the relates obviously, it start revenues to in full will in XXXX those then, XXXX, and of revenues and with say Marco. comparing throughout be be No. continue

Marco Rodriguez

picking back seeing you and I business fair. I that on seeing. think the said your Got you that market labor you back there the talk there is challenges to bringing need it little with of are aspect Can Then, speed about, tight a engineer backup That was you. just a maybe or bodies a is growth there? support training to to you that product now That's that. just the up challenge be on comments are to a kind keep that you in side. seems appreciate is of

Pat Fogarty

-- a way, it's I I about downturn listen. were we mean they that of way bookings bit are up. now and talking are sustained a in think

tech more a induction to diverse add have global plan last position hardening few strategic years, also the side. part We our of on to our was

of of our of trying we sort is penetrate, grown of most that aftermarket and grown we business So, of -- valuable the the our those from attack markets our a we each grown are business geographies in financial to the how are is which expectations footprint kind perspective. part

a picture better years or four and That or it ago. five the think orders. the of that dominated was complex I than five saying HR is And more being would say also large it ago. steel So, is way gas period four I was it by average oil order size years lack for smaller than of and

So, attrition I think last, a also complex I'll call the four it's seen I three some or more years. think we have during picture,

I also ago. bit was think is the or a labor than three market it So, four tighter years

over say to wouldn't accelerating something one about is a can't has flip This decade other these overnight. problems those the not things business But, we the had or couple so, you are and the aren't these that I with. familiar think cycles. So, switch of last business any of

are through mentioned an issues it. of and I we each challenge have are HR So, working the

Marco Rodriguez

about kind it's Heads your maybe All margin -- in around you. the revenue Got of look there in numbers question, know little been a an acquisition you and last have comparison Can $XX historic what And stated that have in annual technologies? their aggregate million sort of profile & what of supply to you Threads, of October that on bit expectations the what announced got rates, here run quick growth the do I for kind have is you rate. guys talk

Pat Fogarty

last Threads Marco, double-digit over has & this to four All rates. years the been achieving is growth Pat. Heads three

customers to they So, with. with are customers that great expect to achieve end great have global that able grow some markets that and been we

what than better opportunity in our their only Republic than as to the their over We we with is business, do them globally standpoint business in margin in say take through in greater we the our all believe profile, locally far overall Asia product than margins world I within and on to the the they our our and source that but from significantly also of that Czech what get able really being We supply would some greater England the within that in we it's see obviously sales operations states. tech today. able being a can Europe not and grow believe in As improve efforts to but customers today. not sourcing concentrated

Marco Rodriguez

line standpoint quarters? we like four all Got have revenue a kind kind should be that straight of business does or you. of across sort about of as as any thinking far And from that seasonality

Pat Fogarty

straight in cyclicality as line. market. it see may experienced would end you our the some I more Their of markets view that other end a don't

Marco Rodriguez

Thanks. you. I Got you. Got your guys. appreciate Great time.

Edward Crawford

Thank you.

Pat Fogarty

Thank you.

Operator

of next comes Matthew Paige line Company. the question from & your Our proceed with with Please Gabelli question.

Matthew Paige

just silos, there to like commentary, or want morning. to in know good other you build see your I on technologies products you within said wanted that to your but are any M&A you current Hey, stay I your overall portfolio?

Edward Crawford

that Yes. is building. next this like little that five the in fingers Absolutely, got we this we go with particularly This particularly our Europe. aerospace we've years are would an one GE over particularly a to engine the is area in -- new bit

we on outside be that really at think we We and designs But, that current progress would of can some like beginning terms entry point. business are really have think we fair are that. very clearly make particular to in the into But, we We silos. multiples interested with future. there the at this

But, in get stuck one in the the with get these fit we need aerospace an to us been companies all and all concept, the aerospace of recognition the size everything which it's I business. plans silos. of got have are and one there certified. will entry the and the will if we We get get think into the that We aerospace

easy not and it's do to clearly, as a continue have that business, around, really more on become in company forward. been way target we it's a to buy the it to meaningful that's and So, business any to sector be important go take you in to will agenda

Matthew Paige

time. answered. been have questions the other for Thanks my Well, Excellent.

Edward Crawford

you. Thank

Operator

FBR. line of from your Christopher Our next B. proceed the question Please with question. with comes Riley, Horn Van

Christopher Van Horn

taking for Thanks my call. guys. morning, Good

Edward Crawford

How Chris. you doing? are Hi,

Christopher Van Horn

are and meeting talked there have that big any But, the obviously, portfolio? as know, in may a that by typically and Good. lot. ask you don't anything metric. there not acquisitive a requirements I I historically divest you're just you nature those businesses know are Are at businesses you you RIOC you any about want to looking you and be

Pat Fogarty

much Park-Ohio of of years. years XX too hidden a Let's have we assets We done I'm We confident address the and outbound and of these looked correct. have at turnover over last historically do not We've in the are one have couple portfolio. enough the of over as the value been And at in companies. again of lot companies. that areas XX acquisitions you

of calls We units. just we the great with companies the a in these particularly current for have up particularly equipment lot holder base we inbound forging ones, a are of the are are value have of the such the low of not But, lot we We companies But, get is, price tremendously in them capital that stacked issue at products value the stock. business buy assets. in and reflected companies. a we successful and

and out. little mind, EBITDA a only a even stock from that's We base $XX without built doing $X.X company of billion have have And XX.X flow, stock. such million cash such lot why we of this to and was shares a keep a with have in history million still and acquisition

chance X, a been than in some we do throwing no that have opportunities had last of we X units the growth. equity of reliable we've in And assets. have and of to ones will keep flow that lot cash portfolio couple one there have is in in generated growth, have have margins more private and acquisitions, are off of extremely to is flow relative particularly But, that to some our I'm the and assets like doesn't particularly but X earned very mind, high a the years. and we sell So, have cash investing for clearly, had money we to our our

this acquisitions and we that an in Spain lot equipment that and already the bright capital made We opportunities of Italy. particularly in by we bets two we that home, future can have see business orders were why we interest bright, backlog. and the absolutely made a coming We finally tell that's in in it's for the

right earnings just up, have So, you there, time and the I comes we we take take can't assets tell just I simply every the per are the share, but I taxes. this take multiple, I

sounds we we our the very are the ways a and not the bought little comfortable Well, we I as in easy invested to again, good good assets in the times we that pay Hidden return hope sharing the particularly assets. we after-taxes great this question, it. Valley have largest of get we the them. assets My selling it's going shareholders but have with in and can sell that buyers I the the making this when value of profit government, that until have we been goodness don't largest just in have you and because have one problem in deploy things and I and we a great, with such am So, gracious, money. years, and that for where finished taxes. first the a And XX representing it, as five gains all answers but I shareholder the company, have

Christopher Van Horn

great. lot of a That color Thanks sense. Okay, for makes there. the

one comment, are wanted going what's or segment market. if maybe you auto to I'm what to car don't just and you market seeing the passenger in side, Just on it's mind curious I of you exposure there. your just one the end know But, some

Matt Crawford

you or Are referring America to globally? the North

Christopher Van Horn

want Most great would you comment to too. that of North America, be but globally if

Matt Crawford

footprint fact continues through to diversify products My of range broader OEs be ourselves Tier-Xs a growth. of be our the strategy our localization that to our a our in and to force and expose and and comments consistent would production propelling

to see also to rates build global be We stable top.

business So, we of our few a driver key the years. over as that view next

I market, suggest ask which So, key see at is have the would think think a the that make. if markets would you look -- than plateaued. and I anything where piece point that be generally the different we I would is we of what that North Certainly, smaller American hear you don't

seeing American not news North portfolio The car. in truck than are market. incremental our good more is is growth the like So, we

have we then in not have the -- we So, generally not fall in I off certainly think car can space. by we the although the damaged of I the have think have small damaged places few --

I And on see the we've the well. plateaued. But, are having volumes weathered think global growth of conversion fairly more So, in market. but we been sort we that again, once focused

Christopher Van Horn

little working Thanks the the comment bit cash a on year bit there down Okay. is wondering, compared last year-to-date mainly on capital flow, mechanical you on The can color. seems then, And for just me, little I'm anything to be for just final a more Matt to side. side. the there? one

Pat Fogarty

a have operating to networking order full to cash be of for in the days days expecting This this flow we capital year. down our are Fogarty. No, growth $XX is the year. XX cash are Pat our million range in still $XX support in million flow earlier, the our we invested to our capital revenues We in mentioned working as

little the quarter So, million up we operating in down are cash when quarter-to-quarter cash to operating quarter over think the And $XX third from flows fourth strong our expect be at you on view as look point, bit, was track. but was we second But, quarter I well. a the an flow.

So, from we a we on thought are target we flow be perspective. cash would where with

Christopher Van Horn

Okay, great. guys. That's it for Thanks me.

Pat Fogarty

you. Thank

Operator

queue. to there back further I the comments. call questions management no in Sir, hand would to are like for closing over

Edward Crawford

everyone Well, to us today. thank joining for I want

we beyond amount that we We are on. sending sure XXXX raised gone gladly out and a of this are incredible about We've capital, optimistic have of and lot opportunities.

XXX. So, the we've got versus the a just little in XXX cost there

that. We are absorbing

anything fired haven't We in size. off

We got but continue to point, the and are silos frankly to we quite the say people. have surely prepared do are to have that pieces, we going on we the

are about struggled Thank We next we and share. year-over-year per forward where are know seeing through to time. much. rebounding very and have that earnings been and XXXX, growth to We in XXXX. be track you Look we again, all back you story revenue going We on patient.

Operator

your you today's and Ladies Thank gentlemen, does this conclude for teleconference. participation.

lines your a disconnect may have and this day. You wonderful at time

Park-Ohio (PKOH) 7 Nov 172017 Q3 Earnings call transcript