PKOH - Earnings call 4 2023 | Park-Ohio Holdings Corp.

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Operator

Good morning, and welcome to the Park-Ohio Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] 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. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. A list of relevant risks and uncertainties may be found on the earnings press release as well as in the company's 2022 10-K, which was filed on March 16, 2023 with the SEC.

discuss on adjusted consolidated a may EBITDA income basis. company defined as continuing the adjusted operating EPS, and Additionally, operations or accounting These or measures not principles. accepted metrics of are generally performance

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

Matthew V. Crawford

capital-intensive and to with believe to I model. $XX Thank by business. XXXX you, call. and diverse revenue focus, and cash of the our to execution morning. our to recent critical which and work our million, with And a more and a Park-Ohio our and impact has operating on committed grow Good as off team. and customers our less restructuring from the or Thank to portfolio of acquisitions. in done than our flows business to simpler due appreciate worth customer up more even growth growth financial point customer over to fast XX% pay XXX-basis XXXX been in performance on included years built to entire fully quarter Rob. collective solid the complemented completed X our operating strong debt increase almost satisfaction. XXXX key achievements was we operating In conference across appreciate in all-time profit. and focus annual areas hard $XXX and a we it's years, with also metabolizing records start This rapid was down relationships, which this intro. a our of which little the improved enhanced be what you that our was team, our and decades million Welcome set last effort the The have used is innovation, brands fourth and appreciating also of line To our gross aggregate. metrics. was than

that we like of slower ongoing revenue aerospace, green markets. semiconductor, relative defense In and strength anticipate diverse of pockets environment, entering our growth we believe in infrastructure While of end which beneficiaries industries, and a investments, government we're set energy. particular, are those

In addition, into backlogs strong we have Group. particularly heading in IEG XXXX, our

Perhaps more importantly, we're improvement. continuous laser on focused

restructuring the aggressively we X reduce of amount to costs. and the over work execution to optimize last our growth years, Given to continue need

generating of leverage these opportunities as Our strategic our I'll during focus cash it will to margins to additional on businesses, you. our the allocation capital heavily Pat cover flow initiatives in company creating over best greatest XXXX. Thank the and importance of growth are our to to continuing of operating grow all deleverage gross assets, details well on turn best as the results. in organic

Patrick Fogarty

Thanks, Matt.

continuing highlights affected record consolidated $XX per to our billion. achieved $X.XX sales believe we are results operations momentum year deliver expectations approximately earnings XXXX. We of share fourth the first, $X.X by during strong which Workers built and follows: United XXXX full by share. The improved our which and sales of as our to million able results results, results per with year impact pleased quarter approximately we were and were met major net We reduced the year-over-year from strike, despite deliver in Auto have the

segment. business record achieved also sales each in We

share from increased Our significantly earnings adjusted and XXXX compared per continuing operations to EPS XX%. GAAP increased

XX%. EBITDA, and year XXX Our up were as margins full improved gross points basis defined,

$XX year $XX million. of free operating flow delivered million and strong of cash also during the We cash flows

of improvement net our debt we result, X.Xx, down a XX% ago. compared year by debt to $XX million reduced a and leverage As an paid to

As million is business $XX of $XX products received end which cash for we year, certain to new $XX million included and approximately closed contingent the the the on orders million, aluminum million and completed of which $X our be customer we of of of by sale out XXXX. promissory notes

growth, comment I of were on and our sales continuing in current review Before detail. quarter full GMBH, EMA year I'll the our from year the and operations guidance a in net fourth results acquisition XXXX Consolidated Each up billion, most markets driven by year $X.X our ago. broad strong compared year-over-year $X.X record units of range of a a end to and sales billion experienced which business customers. XX% was

activities the our growth the our supplemented from and a net our margins and continue injection by positive per a The sales. Also plant demand melting recent to products, our products, include products compared fluid-related throughout OEM and XX% categories, bookings continues and and helped record the earnings end to increased extruded focus significant and was increase new strong adjusted proprietary share rail sales equipment at America throughout light impact primarily In of fastener of newly-developed plants, XXXX, be The gross for booking of on EPS levels years our and robust absorption improvement have operating products, drive points many that per $X.XX But equipment diluted platforms, to related growth. In higher which are markets, in Products systems, expenses in general line was to basis customer and year. backlogs XXXX each heating most at to share, plants. The Europe and in diverse to considering to manufacturing to in which brands. GAAP in and of in products sales air existed margins. induction XX.X%. the molded EPS year-over-year hose of of each Margin of this our major continue and operating our excludes the year consolidation XX.X% strong demand now our were of higher sales the a heading to Yukon segment in from our as Technologies segment, from and adjusted improved expenses sales, of higher levels, Silverado. as across to $X.XX the inflation. activities, in growth which primarily were Engineered sales employee-related year comparable all with segment from due new which production per such higher our costs in increased XXXX the the trends be GMC Components contributed year-over-year. Assembly demand expectations, price $X.XX North in and percentage end customer related year-over-year of both new automotive GM's closure Supply the conditioning truck product to segment, the onetime share teams into realized rubber plastic direct our utilizing XXXX. SG&A was improved in contributing significant sales of consolidation SG&A Gross key including segment's net will platforms, at and XXX year-over-year increases

to improved ago, Assembly compared sales Our we XXXX. gains and of increase was profit in levels and adjusted year-over-year was $XX $XX $XX each customer realized to improvement operating Components expense segment, as a million business primarily Technologies with in income an pricing. Interest The compared higher our in increase million largest $XX segments XX% year million to the due from was million resulting higher rates. interest Supply

with Our income rate. of tax pretax that an U.S. line for full of of effective XX%, to XX%. will be XX% $XX.X $X.X income is million the year tax federal year, in our we XXXX income on in statutory tax which estimate effective This provision the million was range tax rate

flow in quarter. generated compared XXXX, was $XXX million was million EBITDA by million flow compared $XX $XX operating an in defined million, cash last a the Our fourth during flow of was as cash year million $XXX to of Operating XX% the Free $XX of XXXX. cash $XX in negative flow cash driven free XXXX to increase million strong in year.

$XXX Net results. year-over-year quarter increased Products was our which prior from X% fourth million sales higher $XXX up million, by of X%. our Engineered primarily to segment, in now year, the continuing to in driven compared demand operations Moving

for sales and per UAW quarter adjusted by EPS our affected strike GAAP was As UAW mentioned of quarter earlier, $XX EPS the the fourth $X.XX, approximately was impact approximately share. strike by by impacted which the million. $X.XX

compared year-over-year. in of $XX flows defined the quarter, $X.XX XXXX, the income XX% fourth In flow margins free quarter EBITDA compared of operating Our XX% improved and in loss increase quarter. as the a operating of to an of current cash XXXX of million million. significant in $X.XX million adjusted quarter, EPS cash was and the generated to we $XX $XX

income of up segment, operating sales compared and up Technologies, aerospace in aerospace. segment higher UAW at to totaled and X.X%. year-over-year. Operating in helped from our to were up increases commercial with that assembly to business up and for impact XX% proprietary levels net in realization segment markets. markets in in programs improvement was year-over-year million, which In increased were of higher and The year-over-year margins by in truck was increase up higher increases from sales points prior in in new XX% increased customers, basis offset rebound in and year. Assembly initiatives, the customer for plant the our favorably segment product heavy-duty previously XXX included by million XX% Despite the operating a were demand demand fourth end strike XXXX. chain decrease year-over-year, operating fastener volumes one year the These launched. million $XXX income price XXXX, in $XXX XX% X% The which profit and across demand full million million. In were sales commercial driven our over pricing, this demand now which meaningful were in $XXX compared million up Supply $XXX million quarter, of lower driven $XX as at XXXX, XXXX, segment power the increased end compared were net X% most net the by the was the biggest lower $XXX compared a result In down truck on sales year, products to of were resulting Sales this $XX our impacted part the certain million XX% a $XX fourth slightly results. increased Components million quarter the we to also $XXX product record Turning to sales saw XXXX. sports, the supply to higher In was from for prior the year, costs. sales

plant benefits in activities, up income million year-over-year equipment in year by year a million capital of prior compared and the costs. as related and XXXX capital $X $XXX net million, plant was in our million million the levels year. were new a In and from consolidations fourth Engineered compared to $XX to demand customer $XX $X inflation increases equipment of equipment Excluding the XXXX, compared price increase for driven $X sales improvement machined points. to product ongoing with and significantly and December and more up was of X% of basis operating our drove XXX factors the The a compared million ago, in levels, the ago. business charges by million customer up year the million full compared $XXX improved adjusted full to products to in year Year-over-year offset strong in positive $XX million million, operating years. These $X of end adjusted backlogs during year similar were in million $XXX fourth $XXX driven were completed XXXX, were forged equipment sales segment, strong businesses. income both XX% backlog Bookings to consolidation ago. In a other increased of segment to XX% the margins than Products quarter, and this sales quarter year last up higher our

parts level In highest from at strength higher-margin and grew our since driven key and sales and our year-over-year. In full addition, year products including and almost machined increased by XXXX, business, aerospace business XX% in revenues several XX% aftermarket forged defense. service markets, end their

utilizing increased production to press continue quote the our the of technology. certain defense industry, has munitions which in new We forging projects support of

benefits segment margins this year primarily ago. related our was activities, which consolidation $XX our million forged business. offset higher in a actions, levels, driven operating charges products all plant machined and The of improvements operational plant was Excluding than the the implemented sales $XX adjusted million year in for improvement compared by to the and consolidation more lower from to income

decrease $XX million to the fourth In the compared by million $XXX compared to in driven last a fourth year, million income sales was ago. with of $XXX were to expenses X% the million $X And corporate compared $X in of up year ago, million a finally, related the were quarter adjusted operating fees. net million quarter, year lower in quarter XXXX $XX and professional

make I'll guidance for XXXX. comments to related our a Now few

release, revenue most mid-single-digit range growth in our we by demand the stable in expected in indicated year-over-year, press to As expect be markets. driven end

expect be end stable our semiconductor slightly the year-over-year Supply increased markets, EPS defined. more standpoint we markets to markets, than demand demand expect as unit and other end expect Technologies and in also We offset year demand should over heavy-duty EBITDA segment, aerospace and end lower in for from in which improvement In primarily demand in most a truck.

continued of also and We commodity year. expect chains normalization supply prices global this

be on In improvement product footprint Assembly all customer Components, include will across margin costs expected focus is which to capital continue stable reductions. optimization, initiatives, will working reducing products. also demand to We and

in backlogs its region. year and aimed on in implementation production the products forged capitalizing will each rubber operating other expect business. On machined both headquartered initiatives induction year-over-year business Engineered in and million of all and our Our the trends our global X aftermarket brands, our increasing increasing cash machined team increasing of on XX, approximately completed in gross defense with each acquisition and EMA Meckesheim, of electrification, products. operational through Germany include lines in power XXXX in is Induction net we we operational all ] mixing marketing locations infrastructure the throughput began growth and capacity, and impacting is improvements focused equipment equipment around on in drivers, initiatives, market for of at margins. In efforts our forged (sic) value equipment GmbH, Products, and our Germany February converters We leading $XX manufacturer EMA operates Indutec including increasing and [ high-efficiency capital improvement Key spending China. and a of strong of our heating acquired.

XX the and be earnings to of next over approximately expect our generate and revenues months per We to EMA $XX will accretive million share. margins segment current

Germany and synergies synergies as cost integrate induction product our we in our meaningful expect throughout and strengthens EMA Europe global and business. well-respected to global also We our into longer-term portfolio. a and expertise market EMA adds brand heating

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

Matthew V. Crawford

line now the for Thank Pat. you much, very We'll Great. open questions.

Operator

Barger [Operator first Steve Markets. with Instructions] Our question Capital KeyBanc comes from

Christian Zyla

This is on actually Christian Barger. Steve Zyla, for

the need range? First question, that what your of grow happen to guidance, needle that with much to price mid-single-digit And to is above would how versus mid-single-digit move volume?

Matthew V. Crawford

think a which in our Candidly, terms mentioned I be as both best hugely business is and markets to we products to diverse the from Well, and during America, North business my global now. I of benefit be kind comments, also right reach. of seems of the in place majority

from and benefiting we'll we're to. So continue that,

will from unit question able a I no perspective as execute, commercially mentioned at the year. and have I look I As we last a unit leveled volumes think, that third high even quarter were call, off. We There's diversity, markets think be level through down. up on to

means that, were by is pricing even mid-single it's from effective which on determined during last digit great, if increases will will yes, price year. how of which the growth, We a we be that XXXX, benefit passing in lot

some where are end exception, end with So in I of mixed by defense investment. business markets are I markets of strong the discussed and we that think, government affected some are aerospace, the seeing

think I average the industrial do So basis. we'll than better

we're on some in. unit that, in said sideways growth market down and depending cases, what Having is

in So think, segments, some international flattish. of are of I sort our

the seeing our pricing exception benefiting mentioned, which from areas to the else a year. are the a increases of the material So bag really to most with bit business we're upside. is mixed I of last currently Everything of the are of

it talking would than you'll think anticipate hear we how I us that, lot. about doing about of terms a better In

of about agree products and journey. I increasingly side. through important to opportunities -- products on with, and innovative along, the got is which We've fastener proprietary an transportation, saying to lot which more the all our which talked innovation We're importance of the on we've that hybrids. we've tremendous think our many some been journey a people through runs line the of electrification tend our journey, run the

about we're that. excited So

against -- quoting our of is backlog I think the many we're strong group, products. year our in than engineer products the on a more performing

business execute and to and the with allow backlogs. I a challenges, ability improved think higher level deal will labor with our grow continue us and at some and maybe those deliver our of 'XX to 'XX against deal scale to and performance

outlined. So I number as succeed I think I've think we've of got a can different we ways

Christian Zyla

of guidance half in being Supply It's trough the and for talked to some business? about that just truck on back That's exposure semiconductor I the business. awesome. cadence aero in those And we in cadence few similar maybe reacceleration Tech, A headwinds? great overall what's the that then given the the XQ On guys of ] color. 'XX. guess Tech, equipment Should a expect in then the for and of a manufacturers you Supply [

Matthew V. Crawford

Yes. And candidly, to for some geopolitics and are issues been think our I'll comment, that a that little of Pat second. been a But I Quite have just has affected the some semiconductor customers key predict. on trade let going of difficult by would globally. about

customers are California U.S. do Our in Singapore. as and likely and are the as business they in to Texas

predicting and very with complex that So these manufacturers very I again, equipment. sophisticated are think --

you us. trend is and quarter-to-quarter what month-to-month do isolate will is What has deliveries we like look to the trying problematic staggering, that determine So or know for know. been as investment

Maybe but our and we be backlogs staggering. So have know for to demand I would of quarter-to-quarter, about backdrop will do Pat reluctant. the talk is customers

Patrick Fogarty

cases, year-over-year aerospace in in strong not aerospace And within business defense. seeing backlogs business, are forged machined our all touch cases, we aerospace, stronger around and only business. and certain we capital in and equipment some but Technologies, would our also in Supply I that add products in the

as end pretty into XXXX. head feel about market we that we good So

a As large gauge Matt mentioned, of tougher some semiconductor by month world. we the month, equipment is manufacturers little but to around the all service

when -- we we're growth, not where And comments growth, we around see quarter-to-quarter. make so about year-over-year and talking

So hopefully, that answers question. your

Matthew V. Crawford

Christian, I more would question. your about just broadly add

few and in this better than a I'm the have have last we years, We industrial we're year lot one in the space. the visibility sure not only

have level broadly that in say others are the the goals. and confidence, we our and space or there cases, other GDP that positioned than we're years. given forecasts to So we out of couple last important for industrial and would over visibility we the have markets, the economy global that comfort, I exceed for mean I better some the hit our see better of

Christian Zyla

Got it. That's all great.

of on Just happened the in machined guess pressured full And think then to think year-over-year going capital that the is what 'XX, products in Engineered outpace the for then, Products Products we and I XX% in And were Engineered I as terms up was think as growth? XQ. What one margins? other about year equipment? about year-over-year forged we

Matthew V. Crawford

the said Yes, a model. business give this highest blade really have our I'll Park-Ohio. start business our solid that with margins. of say, sort razor on to also Products, This [indiscernible] the is and and [indiscernible] big traditionally sort razor, has is I And continue traditionally Engineered of this. picture in -- aftermarket the position

leg they're that because of So also not They're we our performance in by better the business. are buoyed standards, the lead next lack optimistic a business up that, will historical backlogs tremendous by clearly, there. for in word,

we knowledge overnight forging be remiss engineering affected, and every would These efficiently. challenges to around hourly the workforce talking us that I assembling positions and that, cells. if replace everywhere day better on by say think, COVID, against. continue business to day-to-day equipment, that get hammer of to to and COVID. around for reluctant during be I didn't there is business large I'm products the the and but so So in some I execute occurred workforce are the do And not you of loss about complex continues,

it that metric. financial which we to lead is But position We're journey leadership from was, getting a will a in back again, So that key every is journey. us every better our business that, where day. anticipate

Patrick Fogarty

I on Yes, new growth, of Christian, also in the in aftermarket capital our in not my side service only and would but business. we I mentioned our equipment higher-margin saw -- comments, the add business, that parts which things, equipment

out margins affected Canton in our business, the side not margins So we of one facilities start-up were were primarily by affected our of consolidated where forging of it's workforce and efficiently new our of Chicago our costs, from operate into taken several to costs equipment and to affected facility a the Forge relocated large get new pieces labor, time margins. our with And have with those equipment. start-up that

equipment some we in had Arkansas our our of downtime Secondarily, plant. forging some in

those the 'XX improvement margins that our of margins both every of situations and get and course day being expect So over Clearly, historical made to business. part affected back of XXXX. there's to in levels our

impacts, are Somewhat handle day. on terms improving the of margin every and have feel isolated in but we things we it a

Matthew V. Crawford

from Yes. the on Supply renegotiations a The effective I'd different. will a business. In talking for spent deliver of Engineered group add noncontractual, and side. year. on or business pricing relatively than I auto-based contract cases, time, those We Tech challenging, they're one not think, about quoting Products our more Components In lot ways, point quickly. is were Assembly many they were many

that to extent forward XXXX pricing into until during made rotated we year. were XXXX, this So we see meaningfully as may agreements the honor that not was in

This also rotated things we've many is that. addressed forward We've isn't And operational ago. months issue. this many, an pricing issue. a standards. So We've many, just increased

in but always and don't Supply when would again, things months, out XX business. way XX, you're Tech see negotiations So our XX, those our benefit the you -- automotive the quoting you commercial of

Christian Zyla

Great. And me. all I the appreciate for last one color.

that. I'm sorry another million Just segment $XX price really and sales. EMA in are be $XX how What value in? to sauce good are million value able you these there? missed deals about guys? also secret on was good really what's is margins the which deal, this you going if seems for like business Southern And purchase to for a just Fasteners out the I then find deal,

Matthew V. Crawford

than highly more We we opportunity strategic, acquisitions, to but you I glad want to I'm here. it. Yes. ever. like highly selective miss are Thanks, say the brought Christian. accretive don't

growth more and right now more if we've have significant funding an organization then acquisition. find had, the exists as around and and value drivers, a which earnings great us priorities could our competitive sustainable funding make we Our operating leverage

Our X all find great opportunities. is management corners. team from tasked They to come

They us the absolutely synergistic organization a strategic and from geography typically go-to-market same at metrics, customers, for the value meets find up getting bubble because and what come that's success being time, our where like. is cost it we standpoint our an the or adds on adjacency adds inside that can which means a highly something and financial looks or adds key

is focus high right now right not our do standard of because them, to pretty kind our right we process. do it's now, So where like acquisitions very entire rigorous but a is. that's the And

Patrick Fogarty

Christian, Yes. to accretive margins. margins, be EMA the acquisition that our the say segment only comment I'll to on will

and many over very are been in of deals, our We have doing approach. disciplined years

IRR have models. We

We on return have cash flow.

We that have a many, value many we metrics business. to use

larger auto, this taken in Germany, just fit the forging our including And was find range our and their companies a it not Austria, of example wasn't companies, a in various And the their would and and these of much be business. ThyssenKrupp able a this their relationships to that of out diverse would be area company to Products grow business owners for energy, lot of expertise including Europe, to which are OEM induction, employees business in wide core perfectly one of covering only and a cases, case, an within private segment. end where and the strong like care markets, including foundry, induction in with wanted throughout applications, Engineered to brings EMA of home heating wind business, but in lies of

Matthew V. Crawford

point, watching and Pat's and Christian, are their we carefully these in economy. I is the team some add it like would global a hub as Europe -- like to a a for this, challenges Germany this very as still Adding to are of relates are Germany manufacturing. people brand only many particularly

German they cycle technical and these major Germany, globally. and serve the While may customers. mentioned Pat they invest global and be be mean may one. invest companies as through in talent business that are the I our

if So the it's will. by driven not being you German just economy,

Operator

is from Our next Stonegate. question with Dave Storms

David Joseph Storms

free kind we focus it end last of to high to like were just guiding working looks Any expect you wanted cash flow what capital? lessons strong other at than going here forward, Just that quarter. start, on a of can the really

Patrick Fogarty

of Yes. the year. capital working the entire We've been reduction for working on

benefited hard fourth a from lot lower capital. think the love businesses that But us But free to reduction I the flow of some fourth we in sales, and which of smoother, I receivables was XXXX. in see around all harvest there allowed to our the our slightly expect heavy done be and work working quarter would quarter. cash of lifting by in

and accomplishment. you each by are used our businesses on there's room we We Just focused business more million to an huge year-over-year example, it. of grew there, almost our give of a $XXX and only X% working feel That's capital.

Matthew V. Crawford

Pat, need a don't it the because much spend to general say myself. XX% we I capital-intensive year and to XX% my to our me on help XXXX, to can't that well, -- on opportunity in I XX% to this that call let aluminum feel can't represented We to than of other the XX% between revenue of you. Dave, less and as CapEx. mentioned time add though our say capital we consistently as I I And resist enter addressed think comments business.

So of flows to profile to that change is business. and business permanently an bolster of opportunity, this the the cash I the think,

David Joseph Storms

What time plug-and-play this? acquisition? a just then EMA still helpful. for much back touch is wanted it on Are to And integration the That's line there pretty a logistical for very second. hurdles? is Or

Matthew V. Crawford

a induction team. to explicitly we point out would the comment want get we'd that. think really It's recent. don't are on I happy and I equipment EMA Yes. complex business the business, to pretty heating is

got German teams we've We the the in great making do in and products. heating also business, innovative business marketplace induction

think, customer about, growing is customers our So growing growing serve list the with. our team, growing can I global talent, we our our this and products

don't -- wonderful to has what's fix year. that well It's have positioned we -- We backlog. it's a succeed is business a broken. this So not this

said to sell the going we I with to more presence marketplace products. we're more broader Having that, in can a where, global again, customers think, create look, innovative

and is successful they to what So but are plug them because extent, to some more make our they it's play, goal do. class world in

Patrick Fogarty

that's ability provider a can locally. comment the and is converters, feel in brands We additional power have Italy, install Matt just with I They teams, operations that. that mentioned sell them to opportunity driven to in my if of one market very local business. that converters will able sales the time, opportunities others can through in One you that our take that various our have around expanding retrofit mentioned, Spain are you converters. world. we and is and the EMA This some be converters there's through other to brands but places this where optimistic we're we'll and high-efficient various them ability there. a most of like take of of as make around, their our huge -- But remarks those the advantage

David Joseph Storms

you're like then that levers that footing. there about thinking it sorted. going you But is that? seems really it XXXX? How do of continue your improvement any and good into other just XXXX, to It great. sounds pulling That's operations, was more. pretty like restructuring on you're And Thinking getting about one feel

Matthew V. Crawford

isn't That of couple rarely for comments over The in is been have our It's -- broad years the I thank few It's call. on a right? done explicitly to on been I mean The trenches. hard. of in difficult. last automotive I completed. echo got strokes strokes they've closing last pause done and on the I'll work group the facilities. It's I done, relocating in work and budget. forged think the I people or made can't Yes. time. I It group and our have the broad

front we only really and that, said think, consolidations of are optimizing restructurings Having at the done. I the end, we've the

of I need So absolutely seeing Pat probably saying unit seeing year. that under may we work. will no, growth -- -- this, table upset see and not slower do lot a are we -- not me kick that because we again, anticipate flatten to am not I out that we're we upset volumes I'm for a the

thousands At labor but white segment They're still third again, with who nice really to labor businesses day, walked for think border. still while on are there of paper automotive there's in employees, at of certainly good I south paper a this lot I a it's said training. may be do in couple end we've some and the I they nice of do. some from example, tendered more a jobs, quarter call, what the to say the There's away turnover. arbitrage, it our of the there, cost move

I and business. this going amount there year. over what opportunity mind to investments $XX,XXX going not drivers productivity tremendous in in on increasing been in our call, journey optimizing the the us in on a of dollars. there's spent our value as to That's we to to think business we at that labor competitive better getting stabilizes, locations the like And decreasing in they're going have these We in plastic but across hundreds the that return, dollars here, be of drivers. the highlighted affected we're thousands be So details, system have yield but that rubber a the on of side. do the we the wallet investment restructuring value be in we're need to great the funding particular, business recently mixer take particularly are to balancing but rubber be. We a That's on focused going hundreds focused and just a where cost, our across be and just has given where the and in

Operator

Our from Funds. Gabelli next Brian Sponheimer question with is

Brian Sponheimer

Great.

excel seems is European I'm find your by your to is in This virtue your wondering the to scope net if just like you to world. you -- a guys of of at that businesses for business. it you want these look size this potentially where add now niche businesses your various array? finding can expanding So parts potentially addressable

Matthew V. Crawford

good a it's Brian, Yes. question.

to not We're that billion player where or Most know player brands size, appreciated it strong, that brands billion have we midsized or or credible billion a unique call we and $X known equipment. You in and $X are less, operate $XXX of of our understood significant significant reasonably where markets competing address $XX in general, business very our marketplaces. marketplaces. we billion to

the strategic small in to scale really product take about we new would So can infiltrate I our We maybe us think brings scale don't said. over I it a if deal us. No adjacent don't tell to products. brings can just we is we you too an us scale teams network. It our terms geography new new way where about of think is and -- about you, that what think

of -- is, think So it does first this needle. broader business moves resounding, needle. years? maybe we talk look in ask more make the scale talk we question But like know thinking we What it a we about the X Then you're moves I how financially successful like? yes, then really about that the don't our what financials. about the answer to X we we can if does question with If here if success

needle, bigger our the environment, in again, this, again, get Brian, all people love on not trough. process checks saying -- the starts. at move course right particularly are this how those our boxes would We'd business the but sick are multiple Sure. to buy Brian, the that at me that that's first acquisitions not And

Brian Sponheimer

Yes.

for that it more think allowing other -- what far is the opportunities bit I are whether out work that as the want size what like there. sized delevered the pipeline businesses was you a more, little still to as find is lines, are those But business assume you look adjacencies your guess, I fit. of there And have now that to would you? does you'd along on I EMA-type

Matthew V. Crawford

Think businesses is our sitting the at people corporate development office. at Technologies don't Pat at that these this that, I'll our with TOCCO, Supply in list at different only as working to people but corporate people of let address prospects. Ajax is development the of develop think Pat RB&W

and and do with are in opportunities a different or and with than business that may So managing, and XX profile we bit today candidly, constantly their Pat there little think relationships developing people how growing I, they is about years.

So speak, right? that's the extended corporate development team, to so

Patrick Fogarty

those pipeline the least strong. the us got great banks. years, to come But net think X XX growth M&A over at and our from to we've last And investment they're deals broadened global. our has brands Brian, be and definitely that continues I of the size to

come to sell us as a so business. they're looking their And to of result when people that, often

that and so that of hasn't years And goes changed. back years and success integrating And relative businesses. to buying

Brian Sponheimer

for Well, Excellent. XXXX. luck right. good All

Matthew V. Crawford

Brian. Thanks, your support. Appreciate

Operator

have to the Crawford end for We over closing question-and-answer of back reached to session. call I'd now the comments. Matthew turn the like

Matthew V. Crawford

today. time for great your Great, all support. and you Thank questions Great.

have closing and and very had, as look and those I we towards I might Thanks. made any message as Thank think So appreciate to, We through supportive I I comments responded forward goals move our refining and our good again, hard-working knowledgeable and questions. to a investor you, we base. XXXX.

Operator

This concludes conference. today's

You this participation. time, may and we at your lines disconnect you your thank for

Park-Ohio (PKOH) 6 Mar 242023 Q4 Earnings call transcript