PKOH - Earnings call transcript Q4 2020 | Park-Ohio Holdings Corp.

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Operator

Good morning, and welcome to the Park-Ohio Fourth Quarter and Full Year 2020 Results Conference Call. At this time, all participants are in a listen-only mode. After the presentation, the company will conduct the question-and-answer session. Today's conference is also being recorded [Operator Instructions].

Before we get started, I want to remind everyone that certain statements made on today's call may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. subject to and projected. differ are cause that statements results actual materially forward-looking to uncertainties risks may These from those list SEC. as and the risks filed on XXXX of be XXXX, was A in with XX, found the XX-K, uncertainties which earnings as well may release March the company's press relevant

performance EPS as defined are Additionally, the EPS adjusted EBITDA discuss accepted and EBITDA, principles. measures and of under company may as generally accounting defined adjusted not

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

Matthew Crawford

good morning Welcome everyone. XXXX year to quarter fourth end you, Thank and and call. our

can't built on of decades, at to back we've look our several I set a commitment decentralized of skills of the diverse XXXX, Park-Ohio. our parts importance to As but here appreciate a team management culture I spirit. highlight with entrepreneurial the several strong Over help

desire our But optimize believe grown, business sometimes a can difficult short balance in these again profoundly As so these to with beliefs term it to performance. us proved last core we year be once has to why qualities.

to much became and as was is to business opposite the as the recruiting challenge, each Many Our customer us supply the team forced consistently virtually meet the difficult chains challenges and demand with our strained other expenses We these safe. of year business XXXX. in ended as while and of the accelerating across began demand when our pandemic, challenges the recall. of rose essential quickly beginning were environment any reduce to overnight aggressively meeting March we and keeping quickly of of somewhat at scaling

back core want passed And test think say the of fact has it's we to I other our conversion battle. Park-Ohio, having to more of cash a in each commitment of test and the here at of our of balanced XXXX we'll quarter stood of quality to to I signs The each speak earnings, team allocation also areas. thank on that that showed focusing our and empowering the these increased increased particular at progress I beliefs of our fair fourth again believe accelerated of all look important in as XXXX. results capital. recognize

by These and from model. outstanding continue to saw accretive and core technologies improve costs which we are new but more by customers, regard importantly, businesses performance components focusing First, services, of products business to with our quality assembly in on earnings. supply to investing

highlight the cash XXX% from despite was particular the EBITDA fourth generating flow, $XX Regarding quarter of conversion, by cash approximately free quarter. third which a in growth sequential achieving million was

above this leave While to be capital years we couple above working of may a we going as behind bit targets continue will manage capital a expenditures, our and average forward, expectations spending. aggressively,

throughout way investments fund debt. targeted strategic allocation XXXX strategy vital foundation XXXX reduce numerous helped support commitment to long high and reshape we ability us our while focus that In will value a such short, projects which in returns to After in improving beyond. has able of capital growth and investment competitiveness. company our on and benefit our so, to strategic the Lastly, provided our still were doing drivers, we make provide term

Speaking of XXXX.

brands invest overall will that markets, performance. build share on continue provided strong the cognizant to recovery capitalize And many continue While several performance, leadership and in in markets These products are market strong we to engineered and franchises overall to we our anticipate suffer. particularly regularly we portfolio. end businesses continuing these in to improved have our

will segment I'll and the significant this from XXXX. Pat performance. make ask year With that, quarter the during to We made throughout have XXXX will the progress strategic doubt benefit cover decisions and no

Pat Fogarty

Thank our businesses. you, increases saw end challenging reported quarter Matt. a most each Despite to third business. across results business and our We of of in sequential results customer quarter climate, market our improved we fourth sales segment compared

In critical continue recovers. profitability company economy execute growth the to global for as and position will initiatives, addition, increased we which fully the improved

in and tooling, growth XX% of we We on markets. certain we in consolidation these of Our sales sequential all the initiatives segments greater across third the began our initiatives, in during In sequential business efficiencies XXXX. in included investments increase margin XXXX, increasing equipment, expect expansion technology, and quarter, X% positive segments. actions included aimed represented and of see impact occurred achieved the costs improvement and at each all to a half as end business and of continue sales This impacts fourth basis reducing to of volatility weakness a of product to in improve. despite our key year quarter. three continued automation investments and Net levels which consolidated operating compared the prior plant volumes second

in serviced were and million working of $XX the flows and segment Compared in adjusted These in basis assembly year points discretionary XXXX, points in our million fourth basis low to ago. of down quarter the as supply year higher strong manufacturing both from onetime engineered levels million $XX restructuring operating Consolidated significantly and In due machined in and and by sales increases year charges products the to year quarter business. margins Our costs our component sales, quarter forged of reductions levels. primarily in the by XXXX, higher engineered cost XX spending, compared increases managed segments, cash supply aggressively cash over $X.X fourth revenue. demand cash margins the were implemented operating offset of benefits products, more the and and lower improved we adjusted continued technologies assembly technologies achieved components product resulting flow of over in the than flows free operating XXX a quarter. in driven by were fourth to year market primarily from capital

December of of had million $XXX on million we hand liquidity cash and XXst, which included $XXX availability. of total borrowing $XX of unused million, As

Our of end completely has the seen end recovered to XXXX. the levels liquidity at year

to approximately we our in buybacks share returned addition, $XX during In million shareholders and year. dividends the

XXXX. affected $XXX sequential machined and aerospace products details of demand. improvement Turning oil Net weak our businesses now in to quarter the and across rail except sales gas, and majority saw which continues fourth our the to $XXX be to and $XXX by forged business, in defense fourth quarter. compared the third of million the quarter, million the of million in We were and

$X.XX expenses strong to on Both efforts. sequential reduction quarter recover, quarter income to adjusted and and million quarter fourth XX% On year margin our our quarter driven basis of to compared prior In margins, a year, to adjusted $X.XX offset by product reported supply an each GAAP compared ago. the of were and SG&A in the earnings as margins technologies $XX.X year quarter, positive were the were majority was components share business. cost more third Our improvement per continued were due continued was in a earnings and gross XX.X% Margins the down adjusted spending to throughout our compared per restructuring our volumes year to XX.X% Fourth $XX.X the which XX.X% ago. businesses $XX.X assembly year to lower improve operating in our again, to year ago million fourth million the in basis, a than by compared over a and the impact segment. share. operating $XX.X actions million in engineer in discretionary

Now I few XXXX make year will comments. a full

of million and few year. compared A XX% SG&A full The the XXXX XXXX First of GAAP to which loss to and a which of for $XX $X.X billion, on by was of XXXX. totaling items during the the global rates in reduced decreased adjusted earnings lower which were average impacted industrial million, for year, by negatively a the $X.X were $X.XX the expenses, interest down ended in pandemic. revenues all, decrease consolidated per positive $X.XX Also, year per a by we XX% resulted starting shutdown borrowings an basis down to year compared levels. share result interest the of expense below of XXXX, caused with note share all decrease with

XX% Our of of ago, full rate in to changes year tax in the the rate XXXX. benefit higher in compared a was March a expense year of regulations from approximately was CARES benefit to enacted due XX% various Act, which resulting with XXXX

able when US the a tax to prior to rate higher. we US years are result, carry losses tax XXXX was As statutory back

sales quarter which and sales of supply segment I'll technology, strong was customer X% from X% up on XXXX the our Now demand in sequentially. In million, $XXX fourth comment up resulted in results.

defense notably every highest duty Continued agriculture industrial region demand improvement seeing markets, the markets, throughout average truck, continued levels. power significantly XXXX is most increases demand sequential aerospace the weak in in heavy daily defense third end sales since seen most and market, increased technologies. aerospace their below of medical the we're the despite level and to which sports, Total supply device quarter of was and the XXXX and in equipment,

the million launch business demand compared margin This improvement Sales period increase were manufacturing third significant SPAC the at our has quarter-over-quarter XXXX to year fourth was income net the and fourth X% as and automotive efforts ago. quarter to excluding to compared and In fourth by quarter showed of year million, charges, the points quarter operating points the quarter segment, for up to operating $XX.X flow in in activities in also operating sequentially XXX in their million related their sales margin were Segment income quarter and compared continued prior X% this XXXX the highest benefit points year results. restructuring We restructure see million plant in our Segment fourth improvement as of which related $X assembly in actions and of a X% level the proprietary driven business to the also the pandemic. and income year XXXX, result quarter, improved $XXX customers improvements increase year. by reflect in our segment levels increasing our over and market was income operating operating sales income improved in up fastener XX a began the beginning strength sales year. reflecting XXXX was onetime and and increased Adjusted to $X from Our new additional compared X.X%. strong the in and the to ago through fourth employee in improved were termination the basis consolidation in sales. taken XXXX, programs. the XXXX, of compared components reduction margin in XXX with closure basis auto $X.X quarter the a charges products sequentially. our accelerated of of Onetime These the continued resulting million the initiatives since to higher period. cost XXXX third in This the from costs. our quarter basis to

are of segment primarily as driven induction over sales Operating this oil defense key slow was for and threading fourth positioned sequential quarter, efficiency, Our Despite $XX million, reduced future gas, $XX in lightweighting approximated the quarter. in year in and third only segment, and increase and equipment sales including products finally, pipe end trends, aftermarket steel, to equipment segment improvement products. sales expect manufacturing improvement the quarter up our quarter profitability adjusting levels million sequentially income The sales third The for third rail volumes aerospace our order well this XXXX our sequential vehicle recovery year growth fourth XX% increasing margin sales the markets. fuel activity we levels And oriented from this compared million in in due improve the by automotive electrification. are quarter. sales products products toward in equipment prior and of and new the increased period over in in they in and engineered emissions, new the will throughout quarter We we $X.X consolidation XXXX. and products and ago to by were levels, segment gradually improve of totaled capital ongoing margin compared from in in primarily and costs plant the locations. higher several return. cost machined segment decline once lower profile for machined in Currently, this seeing fourth in after initiatives the to third forged $XXX,XXX forged our believe to our the a onetime driven quarter are decline our and

despite early will auto markets the XXXX, year. recover throughout the As issues end shortages and our we the early many related component of we affecting continue begin believe year to in sector weather

consolidated targeting XX%, capital net year, over we greater $XX cash full X.X%. increase EBITDA of revenues to be EBITDA income. of free and are margins to XXXX the to Also, million we improved of X% to XXX points than million XXX and are basis margins $XX flow to our targeting expenditures of conversion XX% For

Now to I'll back over turn call Matt. the

Matthew Crawford

Great. for now we're the questions. Thanks, Pat, overview, ready and for

Operator

come Our Barger from with KeyBanc the of Capital Markets. first questions [Operator Steve Instructions] line

SteveBarger

you see some on easy Good to and to outgrowth recovery market the margin that primarily specific revenue some are comps, you for growth outlook initiatives expect have for on back for or expansion. based drive track do Is against you assumptions going you?

MatthewCrawford

I a clean think can we of saw in quarter. the momentum But Pat bit. a fourth lot Both. this no, up

terms the markets supply some I some confident into we're think latter where of for head of in think, are little and the And technologies I in feel components. engineered markets more products, assembly sense, a about particularly a have year. beginning particularly of the the end we we of as going, So key to part

So, on to terms in learn no. have of last built that new the I separately, technologies. certainly of in supply we was so and XXX continually we initiatives And forth. customers added we're at interested that year new working business course,

So a market mid focused as lot the and addressed you on recently. know, we've

those on specific reality are and each plan that the of a XXXX. many excited large we're So there's is, customers. of build for no, during not see But business, to itself it growth very

SteveBarger

go to XQ XQ. up pattern sequential is from to normal for revenue the So

expect that as start will year this you the you So hold year?

PatFogarty

more early first with relative behind an to We of an level or in solely issue of quarters That's shortages. in first think year weather kind microprocessor think some production of XXXX issues on quarter impact the Obviously, especially believe, evolving a in the year. a of have the us. the second we the auto I will somewhat related our chip revenues, issues, sector. first issue that's are of normalcy half of half the

in because over So issues the up air of quarter improvement mentioned. sequential quarter just somewhat I those still is some of just

MatthewCrawford

there remarkably see a year. was sense replenishing momentum where Steve, of inventories. throughout It the again, people lot fourth that was in building their the lot the quarter volatile we a a --

we So spikes and demand some in significant in saw unusual key customers.

a quarter. gets a why bit little to positive over comp I that's quarter it difficult ensure So think

SteveBarger

the versus makes components comps supply lower for total similar And expectations from it as see likely sounds XXXX, year which like I the two do think make in you outgrowth? other easier progresses? Is segments, do assembly technologies have comps about guess think sense. in which when having that year that you to engineered it the more or to I I this see supply outgrows tech, the think assembly and

PatFogarty

But in Where in have, improvement new we as seen were assembly Yes, ongoing see really say in defense of that Steve, technologies. accelerated I components, growth business. because would we more market improvement XXXX. is that our supply haven't in that just and delayed aerospace happening probably been much end have year product we'll a progresses launches the obviously,

to We But start the that question, as expect I'd of greater components your XXXX to throughout to a year. continues. answer is up pick where level assembly see overall, growth

MatthewCrawford

quarter, second the in of well surprise. I would part line isn't both other supply which and They, either technologies the two at more quickly bottom course, struggled than of reason effectively rebounded top XXXX. but the only Steve, pretty more is a during businesses, of the and there, performed line add, the too, they

to they make ground have up. So less

SteveBarger

across pre the an difficulty talked Matt, space. industrial And workers was in we pandemic issue about recruiting

year, or to investments going recover? you about of just as it's noted, harder capacity made multiplier CapEx that have but you are robotics you forward, know in markets last I now. continuing think invest when you a As lot to end automation

MatthewCrawford

in up Absolutely. not our capital, highest show desire to are about things people talk value allocation is And that I'm our of but and to whether our you the term areas when of more competitiveness work. strategic of me speak we're not to the long mercy hear one business sure improve focused that not of to trying only that the or make at add, the

in unfortunately. It and now, of allocation. will role. automation no, openings have is robotics there's no capital we job don't role doesn't certainly, continue our But have mean that bigger automation So hundreds right increasingly and a we important to, question playing

SteveBarger

alleviate And which to kind and issue? targeted segment of investment would that see we expect try the to most labor

MatthewCrawford

them. all to some extent, I think, of

our the the of choice work said the lot an that, -- repetitive question, warehouses a there. our volume productivity can obvious in large well. invest have we probably answer engineered see they're because still manufacturing be think obvious of of parts where group products of for the automotive, we I to in processes And most employment. same to growth examples goes and significant Having that for that to thing as continue increase opportunities

any place, best off So I jumps wouldn't but the is page say opportunity. automotive single the

SteveBarger

more line. I'll get and ask in back one

we're you As of through just input talk that you steel we've seeing about talk constraints manufactured more for Just season, hearing earnings see. inflation you're or increases. parts? terms through in supply chain nonlabor what gone about cost Can

PatFogarty

them aware container different issue, border massive is said overseas. reverse know for chain in constraints in I particularly shortages, order. from couple I'll issues. things of offshore. coming you are and backups you're a of Well, particularly issues the some regarding there. from significant, at This of Supply ports, products a take the custom

there's purchases. question, this but reasons, of there's supply others. creeping, out absolutely in those will And and are year, -- that unclear mean, creeping yes, rest into point it's raw at showing strained inflation I material chains no So up labor for to me play the how throughout the

got nature relationships cases, just it Having issue, in and non through our real in or we've up most financial the said can't pricing hedges, customer Steve, during our impact. relationship it's allows of XXXX. contractually pass of know, either have the numbers show us to you with meaning some that we As a that, not

Operator

has Rodriguez line Capital with next come Marco Our of from Stonegate the Markets. question

MarcoRodriguez

you a fiscal I little you of manufacturing enacted spend time could and improvements was if guys efficiencies that process wondering 'XX. maybe bit throughout have more the kind on

fiscal or that, can always an and you if 'XX striving to going those understand be and in operating you I whether while that it's Just efficiencies, obviously, ongoing Maybe did process. projects about for sort talk not there you've efforts that if hanging margin fruit of the operating EBITDA kind 'XX? additional are of in that maybe are low leverage expansion harvested already, fiscal further into some guidance kind or add of you're implied your could

MatthewCrawford

Marco, to be no, process, it's an clear. ongoing

particularly fourth I done, think and quarter the been supply see that has technologies work it the components and been in assembly formidable, in that's you numbers.

and think engineered gas markets from and products as from at lot that, play standpoint end a how and an think a geopolitical in some end Pat through of will There's and items. infrastructure we sort I larger market and ones, critical recover, adjust standpoint. defense the the and and mentioned oil rail of both So

that's think I those footprint. us during And for that in and our reshaping manufacturing resizing opportunity ongoing an include So across more of segment. that of XXXX the board

touched throughout So business, number to through XXXX. we'll a continue our we've and do of facilities

to out. charges, out and the seen in some You've play restructuring it play will it of continue

it are those or unabsorbed we in we future. we significant address overhead, anticipate places seeing and So where as locations the have

ongoing project. think I an it's no, So

MarcoRodriguez

basis points to in just XXX regard to over improvement EBITDA year. XXX of then point year of And guidance the basis adjusted kind margin

have talk fiscal earlier, Just kind technologies if through the supply as margin two. going of the to the can products assembly just you components? is great not for other of kind But expectations and of about year expansions had 'XX in engineered the some of on questions a you based wondering as maybe

MatthewCrawford

before want take overall in to my that, issue led head relative this about results. Marco, is Pat, I So traditionally jumps products. real financial a to a our on which this engineered leadership has into mentioned in position comments, I business

on the these be businesses. our the thumbs. of highest and a not the are as the We're cautiously excited cycle building These have continue we sitting number of goes recognize businesses own. areas some are optimistic we for opportunities we're capacity year margin So late to on, these while extremely we best about businesses and expansion that we businesses, in

wallet rejuvenated, on the Our R&D are massive there that right for our the have we equipment to share of base our efforts installed side. efforts ensure

the before products So is engineered late jumps We've recognize been issues and because cycle a the Pat little really candidly, happening there. I some I oil sector. to a there's be just gas in into want here sector that that before. good time, of things worse this aerospace think the and and But to of make business the business. It's sure clear, some

him hand off So address to Pat, with it your let that, question. I'll

PatFogarty

incremental in Marco, see our is would each that comment the of to going that I Yes, margin we're occur business improvement going to segments.

towards components. skewed not assembly tech it's or supply So

We expect them. in each improvement of

comments, and going expect We're expansion see in mentioned the the various a I assembly level that When think initiatives as segment. I completed the with underway be going in gradually improve are there, the end by of that the fact of completion products, components, as to greater in year. margin down to of margin in that that of have locations, we year. business place we we're volumes wind number of return we which engineered in my should expansion the in consolidation coupled see to throughout a

three be business it's across all So going to segments.

MarcoRodriguez

you that the just growth? kind of see of can strategic you those and then are as and that term most question. remarks of to kind of reallocation long refining services just kind and on those products made if products here prepared your Matt, remind comment timing in if more and prior highlight sort know of part coming and very of on terms wondering products, exactly of then of also of you services? on products here a about back that particular for your manufacturing to of what that addressed capital a us And But you your maybe I any and to can, your allocation services, engineered And from capital sort and you sort footprint the helpful strategic

MatthewCrawford

trying think we over XX be growth because have and question accretive the on on think we focused are of, prior commented have appreciate last at opportunities months, calls and I very I where strategic to margins. more portfolio our I've the sort much that we vetted

bit So a apologize. consciousness. I been about our an in I think supply some again, I'd connectors of when the In stream and of I add about value But the product a Really, assembly about talked machining. a past. for electrical space is has think us. connector technologies, MRO We've this expanding mentioned of as highlight. portfolio. exciting new area components,

we're component we little do you -- But know, As that value in are really in an comes space. also to of how important is understanding space the about our really I customers at margins. growth better big We good casting space, cameras think a our bring and hose machining. the our sort add and for focused begins those But highly in at seals. and hose, body hose, today, efficient fluid of rubber assets for of the in leveraging extruding work hose, and EV very we're coolant on are we sunroof space. to washer fuel

whether the So and and of provides for that is gromets itself, protection, seals, car, other forth. means the or in more powertrain a so aspects of electrification need the of car

starting think business And leveraging R&D. management, we've is getting great the -- job opportunity engineered fuel, leadership and was big that for continue next I and a built and what And it independent to build traditionally, over we're fair is of equipment non on mean, it that built tremendous the that our on and sight the I our is, years losing our business. point. wonderful capital share got embedded in will we've that that about think, sure equipment done and think, part generation marketing while intellectual a just margin business space, an mentioned business the I in think products, we're assets making business fluid in So than And when providing us. I briefly, are property business our that products. R&D sure I of best more on own focusing and making not I focusing of high aftermarket a

again, which, to of our All are margins. accretive

I are there's So consciousness that sort a of But of opportunities stream bit a apologize. transitional businesses. different there, candidly, of inside these opportunities of and XX

MarcoRodriguez

for M&A expect you given Last you be them evolving. of can quick opportunities question starting to valuation to distributed on evolve how vaccines of of maybe see, those maybe the us kind of opportunities worldwide? kind or discuss how are update Matt, kind you nationwide me. kind now the levels, be might and

PatFogarty

Park-Ohio built seeing Money The expect marketplace to valuations that was high. and acquisitions that on is we extremely continue. and cheap. are we're the

deal flow that able way the to may the acquisitions returns look think not so values we're And we because of to rates and start we're to valuations But appropriate. we problem we're and increase, until us that up. pick a is drop. seeing we to expected see start us, for continue I with And on strategic going buy to companies that But are find to acquisitions. strategic where get our for

MatthewCrawford

Marco, we or we forecast or any revenue forecast forecast haven't add I that don't predicate earnings done. acquisitions would any off based

to things DNA meaningful add what's One would businesses. of strategic like we in love sure, I the our is, about

now. deals, Our well? what as leadership also guess sky sources valuations said, team do really But right too. are recognize, also the Pat high We modest we sized

a So just be a active to valuation going growing, the kinds of might that strategic, business business lines paths Accretive great our They great the to be not reach as be because going to in some smaller. larger we just may of are that not out accretive, little feel though we're are to things have are And models but earnings, just we've active. doesn't along mentioned. on mean again, transactions glide the businesses that we're their of as own.

Operator

Thank you.

come from Our FBR. B. of the next of Riley questions Sarkis Sherbetchyan line

SarkisSherbetchyan

Just comment around just managing your about capital or CapEx. ask wanted you comments wanted to working you to and ask

anything's your a trying working of given and to there. changed line of philosophy new backdrop? or philosophy any in you if of how kind capital shift the on sales understand Just to kind you're pick managing market to have kind wanted brain relative Just to if understand relative your maybe

PatFogarty

I think nothing has changed. really

and historically free possible focus maximize to it cash low to manage as capital has as our working generate flow. and been Our keep

business I actually maximize think of our and those incentives levels. each units on have that focus to

has changed. nothing So

not month the during a the but only that lot think to to forced do has I pandemic period time. necessary us, whatever improve of was companies four of liquidity

So a our would around nothing better renewed way has capital say it. focus to I is materially But working in a management. put changed maybe philosophy

SarkisSherbetchyan

given just I of stock kind in landscape? have are the higher is, strategic I board the across guess keeping you to just other the question related this we're supplies, the seeing constraints supply of industrial chain

PatFogarty

we're little think, we moves in threatened quarter probably opportunistic evolving supply more being the as I chains are yes. cases But, where Sarkis, that's certain a holding on. and feel

our take we're protecting may additional our inventory customers, that So to inventory. and purchasing service and our

SarkisSherbetchyan

And ‘XX looking the on kind the for guide. guys around guidance you just had like giving going we in your year. EBITDA an for opportunity an it look it opportunity right? shortages margin appreciate extremely Certainly and line more had provide would that seems stronger seem I year, if to numbers stronger chip provide to EBITDA expectation So If and back have of it at the of we improvement. auto sector, think the see because, what's didn't soft like top you you kind transparency color and

half first some or Just want guys hesitancy you kind is the see if to giving of issues.

MatthewCrawford

whether space, know half to what don't customer. southern identified down it some weather in of chip you've we OE built and which of issues. kind it's risk. And We in risk. say terms you've about and product or forecast we don't a border builds a a the think the COVID, some identified and if I I our these from and on of quite labor that think significant risk Having preventing shortage of know I it's in constraints from would releases these Mexico, to is our that, of that, whether know process Having whatever is, of said some largely our or Most Texas way. slows know said what be don't that first in continue forecast. the

there. go But of way, better no, be whether there's expected, think I extent vaccine the specifically sort comes think that opportunity our don't in. things to we've or than I the whatever built an So it’d

SarkisSherbetchyan

business think certain levels. if high look able the digit EBITDA been has do back at margins I single historically, I And to sales

can to we a you've better out, continue do business the the think rate, the and actions you Just as ‘XX? recovery in sense of you to you kind get margin for get taken phase EBITDA certainly past growing as a cost want all move

MatthewCrawford

to expect answer to in a said recovery need of items, business would the in terms the of perspective. At approach do continue to segment. margin products that superior do some see to us engineered we we at need the we The historic definitely revenue that, our is margins day, Having yes. that and is levels. of some again, group work from leadership We end the as restructuring for a

Operator

line question [John the next Baum]. comes from of Our

UnidentifiedAnalyst

complement looks XXXX to on of tremendous was want the equity it is and has where you I year. but the up a accordingly? surprises, tremendous, we responded full year itself finished

MatthewCrawford

And went this know work know. you opening day. the be lot the a every you the It at bottom don't my I mean we action, the there's a of as John. of express I to offices appreciate, think at hard people mentioned would didn't people business home. plants And as goes here. in went I every the line. some John, comments, I credit to is still the that of to plants them, -- people day,

UnidentifiedAnalyst

question, open offering, mix I have do ended, I of go regarding see let the there. debt million shelf capital and and do one I'll allocation, equity. you from $XXX answer kind it

has an thoughts, looking this we strong. be that right acquisition? only at I'll -- be pretty equity, would you And at are or been let accordingly. of towards mean, would lines looking Are that your debt? an contingent credit are upon leaning Kind respond maybe of question, open kind of additional now, Just just you funded? I ended

PatFogarty

prior That or no refresh to pending registration offering and debt to really registrations. was a an there equity way solely prior offering refresh was in registrations

UnidentifiedAnalyst

tax effective one, final give the for be? what to what One for Did you rate XXXX Pat, to you an you. looking

PatFogarty

Between and XX% John. XX%,

Operator

the There We time. call. with would to your at are end And no today's like teleconference. conclude questions This does that, further appreciate participation. this I

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

Matthew Crawford	Chairman, CEO and President
Pat Fogarty	Vice President and Chief Financial Officer
Steve Barger	KeyBanc Capital Markets
Marco Rodriguez	Stonegate Capital Markets
Sarkis Sherbetchyan	B. Riley FBR

Park-Ohio (PKOH) 3 Mar 212020 Q4 Earnings call transcript