Park-Ohio Holdings Corp. Third Quarter 2024 Earnings Call Presentation November 7, 2024 Forward-Looking Statements and Non-GAAP Measures These slides contain forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or impl ...

Financial Performance - Net sales decreased 0.3% to $417.6 million in Q3 2024 compared to $418.8 million in Q3 2023, driven by strong demand in Supply Technologies and Engineered Products, offset by lower pricing in Assembly Components [78]. - Cost of sales decreased to $345.3 million in Q3 2024 from $348.8 million in Q3 2023, contributing to a gross margin improvement to 17.3% from 16.7% [80]. - Operating income for Q3 2024 was $23.6 million, down 12.6% from $27.0 million in Q3 2023 [76]. - Income from continuing operations attributable to common shareholders increased by 9.6% to $13.7 million in Q3 2024 compared to $12.5 million in Q3 2023 [76]. - For the first nine months of 2024, net sales decreased 0.2% to $1,267.8 million from $1,270.4 million in the same period in 2023, primarily due to lower sales in Assembly Components [90]. - Cost of sales for the first nine months of 2024 decreased to $1,050.9 million from $1,063.1 million in the same period in 2023, with a gross margin improvement to 17.1% from 16.3% [92]. - SG&A expenses increased by 11.2% to $47.8 million in Q3 2024, representing 11.4% of net sales compared to 10.3% in Q3 2023, due to inflation and higher employee costs [81][82]. - SG&A expenses for the first nine months of 2024 were $142.3 million, an increase of 5.3% from $135.1 million in the same period in 2023, representing 11.2% of net sales [94]. Segment Performance - Net sales for the Supply Technologies Segment increased by $8.1 million, or 1%, to $594.0 million in the nine months ended September 30, 2024, compared to $585.9 million in 2023 [102][105]. - Segment operating income for the Supply Technologies Segment rose by $14.0 million, or 31%, to $59.0 million in the nine months ended September 30, 2024, with an operating income margin increase of 220 basis points [106]. - Net sales for the Assembly Components Segment decreased by $21.8 million, or 7%, to $309.0 million in the nine months ended September 30, 2024, compared to $330.8 million in 2023 [107][110]. - Segment operating income for the Assembly Components Segment fell to $21.6 million in the nine months ended September 30, 2024, down from $26.9 million in 2023, with a margin decrease of 110 basis points [111]. - Net sales for the Engineered Products Segment increased by 3.1% in the nine months ended September 30, 2024, driven by higher capital equipment and aftermarket sales [115]. Cash Flow and Liquidity - The Company generated cash of $8.6 million from operating activities in the nine months ended September 30, 2024, a decrease from $24.3 million in the same period of 2023 due to higher working capital needs [119]. - Capital expenditures were $22.3 million in the nine months ended September 30, 2024, primarily for increased capacity in the Engineered Products and Assembly Components segments [120]. - As of September 30, 2024, the Company had total liquidity of $194.4 million, including $59.5 million in cash and cash equivalents [127]. - The Company incurred interest expense of $36.0 million in the first nine months of 2024, compared to $33.4 million in the same period of 2023, primarily due to higher interest rates [99]. Debt and Financing - Park-Ohio completed the sale of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027, using proceeds to repay previous debt [130]. - As of September 30, 2024, Park-Ohio had finance leases totaling $14.6 million [132]. - The Credit Agreement provides a revolving credit facility of $405.0 million, with calculated availability at $108.7 million as of September 30, 2024, exceeding the $50.625 million threshold [131][133]. - The company must maintain a defined debt service coverage ratio of 1.15 to make certain permitted payments, including acquisitions and dividends [134]. Special Charges and Restructuring - The Company recorded $2.1 million in restructuring and other special charges during the first nine months of 2024, a decrease from $6.6 million in the same period of 2023 [95][96]. Interest Expense and Risks - Interest expense increased to $12.1 million in Q3 2024 from $11.6 million in Q3 2023, primarily due to higher interest rates [85]. - A 100-basis-point increase in interest rates would increase interest expense by approximately $2.1 million during the nine-month period ended September 30, 2024 [144]. - The company faces translation risks related to foreign currency exchange rates, which may affect net sales and expenses from foreign operations [145]. - The company has substantial indebtedness and is subject to risks from economic conditions, including supply chain issues and pricing pressures [142]. - The company entered into agreements to hedge foreign currency, which did not have a material impact on results [146]. - Variability in customer orders has resulted in significant fluctuations in operations, particularly in the capital equipment business [138]. Dividends - The company declared and paid dividends totaling $4.9 million during the nine months ended September 30, 2024, with a quarterly dividend of $0.125 per common share declared on November 1, 2024 [137].

Financial Performance - Net sales for Q3 2024 were $418 million, slightly down from $419 million in Q3 2023[1] - GAAP EPS from continuing operations rose to $1.02 per diluted share, compared to $0.99 in Q3 2023[1] - Adjusted EPS from continuing operations increased by 8% to $1.07 per diluted share, up from $0.99 in Q3 2023[1] - Operating income for Q3 2024 was $23.6 million, down 12.6% from $27.0 million in Q3 2023[15] - The company reported a net income attributable to common shareholders of $9.8 million in Q3 2024, down from $11.1 million in Q3 2023, a decrease of 11.7%[15] - Income from continuing operations attributable to common shareholders increased to $13.7 million in Q3 2024, compared to $12.5 million in Q3 2023, representing an increase of 9.6%[15] - Adjusted earnings from continuing operations for Q3 2024 were $14.3 million, or $1.07 per diluted share, compared to $12.5 million, or $0.99 per diluted share in Q3 2023[17] Earnings and Margins - Gross margin improved to 17.3%, an increase of 60 basis points year-over-year[1] - EBITDA for Q3 2024 was $39 million, representing 9.2% of net sales[1] - EBITDA for Q3 2024 was $38.5 million, unchanged from Q3 2023, while EBITDA for the nine months ended September 30, 2024, was $115.2 million, up from $104.8 million in the same period of 2023[21] - Adjusted EPS for the nine months ended September 30, 2024, was $2.94 per diluted share, a 15% increase from $2.55 in 2023[9] Sales and Revenue Outlook - Year-to-date net sales from continuing operations were $1,267.8 million, down from $1,270.4 million in the same period of 2023[9] - The company expects 2024 revenues to be 1%-2% above record 2023 revenues, with adjusted EPS projected to increase by more than 10% year-over-year[11] - Net sales for Q3 2024 were $417.6 million, a slight decrease of 0.3% compared to $418.8 million in Q3 2023[15] - Net sales for the Supply Technologies segment increased from $192.8 million to $194.5 million year-over-year, while Engineered Products sales rose from $117.6 million to $124.4 million[27] Assets and Liabilities - Total current assets increased to $886.0 million as of September 30, 2024, compared to $824.4 million at the end of 2023, reflecting a growth of 7.5%[23] - Total current liabilities decreased slightly from $363.6 million to $361.3 million, while total long-term liabilities increased from $687.2 million to $702.3 million[24] - The company reported a total equity increase from $289.9 million to $343.0 million[24] Cash Flow and Investments - Net cash provided by operating activities from continuing operations decreased significantly from $24.3 million to $8.6 million[26] - Net cash used in investing activities from continuing operations increased from $20.0 million to $33.3 million[26] - The company issued $24.7 million in common stock, contributing to net cash provided by financing activities of $33.1 million[26] - The company experienced a decrease in cash and cash equivalents from $58.2 million to $54.8 million at the beginning of the period[26] Other Financial Metrics - Interest expense for Q3 2024 was $12.1 million, slightly up from $11.6 million in Q3 2023[15] - The company maintained dividends per common share at $0.125 for both Q3 2024 and Q3 2023[15] - The company reported a loss from discontinued operations of $3.9 million in Q3 2024, compared to a loss of $1.4 million in Q3 2023[15] - Income from continuing operations before income taxes decreased from $16.0 million to $12.6 million for the three months ended September 30, 2024[27] - Adjusted segment operating income for Supply Technologies was reported at $20.5 million, up from $15.6 million in the same period last year[30]

Financial Data and Key Metrics Changes - The company reported record consolidated sales of $433 million for Q2 2024, a 4% increase from $418 million in the previous quarter and a slight increase from $428 million a year ago [4][5] - Adjusted EPS for the quarter was $1.02, up 23% from $0.83 a year ago, while GAAP EPS increased 67% to $0.95 [6][7] - EBITDA for the quarter was $39.4 million, a 10% improvement year-over-year, with an EBITDA margin of 9.1%, the highest since 2018 [6][7] - Consolidated operating income improved 28% to $24.6 million, with adjusted operating income increasing 11% to $26 million [7] Business Line Data and Key Metrics Changes - **Supply Technologies**: Achieved record net sales of $203 million, a 3% increase year-over-year, with a significant 56% increase in the aerospace and defense market [8][9] - **Assembly Components**: Sales decreased to $103 million from $112 million a year ago, impacted by lower unit volumes and pricing on legacy programs [10][11] - **Engineered Products**: Sales reached a record $127 million, up 7% year-over-year, driven by strong demand in industrial equipment and forged machine products [12][13] Market Data and Key Metrics Changes - Demand in the aerospace and defense market showed notable strength, contributing positively to sales growth [5][8] - The company anticipates variability in demand in the second half of the year, particularly in consumer-facing markets, while maintaining a stable outlook overall [4][18] Company Strategy and Development Direction - The company aims for year-over-year revenue growth of 2% to 4%, focusing on improving margins and operational efficiencies [15] - Continued emphasis on debt reduction and free cash flow generation is expected in the second half of the year [4][8] - The company is transitioning its business model to enhance quality of earnings and sustainable cash flow, particularly after divesting from lower-margin automotive assets [37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, highlighting the strength in aerospace and defense while acknowledging challenges in consumer-facing markets [18][19] - The company is focused on improving operational execution and addressing supply chain challenges to enhance performance in the Engineered Products segment [20][21] Other Important Information - The effective tax rate for the quarter was 19%, with expectations to lower the full-year effective tax rate to between 21% and 23% due to tax strategies [7] - The company reported strong liquidity of $161 million as of June 30, including $60 million in cash and $101 million in unused borrowing capacity [8] Q&A Session Summary Question: Guidance on revenue growth - Management noted that while guidance has been adjusted to 2% to 4%, certain end markets, particularly aerospace and defense, remain strong, while consumer-facing markets are more challenging [16][17] Question: Sustainability of Engineered Products performance - Management indicated that Engineered Products is expected to improve over the medium term, despite historical underperformance due to execution issues [19][20][21] Question: Pricing strategies for low-margin products - Management confirmed ongoing efforts to increase pricing on low-margin products, particularly in the automotive segment, while also focusing on operational efficiencies [24][25] Question: Bookings and backlog in Engineered Products - Bookings for the quarter were approximately $50 million, with strong backlogs and improved operational performance expected to sustain growth [35] Question: Free cash flow expectations - Management expects second-half free cash flow to be between $25 million and $30 million, with year-to-date cash flow at $13 million [35]

Park-Ohio Holdings Corp. Second Quarter 2024 Earnings Call Presentation August 8, 2024 Forward-Looking Statements and Non-GAAP Measures These slides contain forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or impli ...

Financial Performance - Net sales increased by 1.1% to $432.6 million in Q2 2024 compared to $428.1 million in Q2 2023, driven by higher customer demand in Supply Technologies and Engineered Products segments [67]. - Operating income rose by 28.1% to $24.6 million in Q2 2024 from $19.2 million in Q2 2023, reflecting improved profitability [65]. - Gross margin improved to 16.9% in Q2 2024 from 16.4% in Q2 2023, attributed to better performance in Supply Technologies and capital equipment business [68]. - Income from continuing operations attributable to common shareholders was $12.3 million in Q2 2024, a 73.2% increase from $7.1 million in Q2 2023 [66]. - Net sales for the first six months of 2024 decreased by 0.2% to $850.2 million compared to $851.6 million in the same period in 2023, mainly due to lower sales in the Assembly Components segment [78]. - Gross margin for the first six months of 2024 improved to 17.0% from 16.1% in the same period in 2023, driven by profit improvement initiatives [79]. Segment Performance - Net sales for the Supply Technologies segment increased by $5.3 million (2.7%) in Q2 2024 compared to Q2 2023, driven by strong demand in key markets [89]. - Segment operating income for the Supply Technologies segment rose by $3.6 million to $19.0 million in Q2 2024, with an operating income margin increase of 160 basis points [90]. - Net sales for the Assembly Components segment decreased by $8.9 million (7.9%) in Q2 2024 compared to Q2 2023, primarily due to lower product pricing and unit volumes [94]. - Segment operating income for the Assembly Components segment decreased to $6.9 million in Q2 2024 from $8.4 million in Q2 2023 [95]. - Net sales for the Engineered Products segment increased by 6.8% in Q2 2024 compared to Q2 2023, driven by higher sales in capital equipment and aftermarket parts [98]. - Segment operating income for the Engineered Products segment increased by $3.1 million to $6.3 million in Q2 2024, with an operating income margin increase of 230 basis points [98]. Expenses and Charges - SG&A expenses increased by 1.3% to $47.4 million in Q2 2024, representing 11.0% of net sales, up from 10.9% in Q2 2023 [69]. - Interest expense increased to $12.0 million in Q2 2024 from $11.1 million in Q2 2023, primarily due to higher interest rates [73]. - Restructuring and special charges decreased significantly to $1.2 million in Q2 2024 from $4.1 million in Q2 2023 [71]. - In the first six months of 2024, the company recorded acquisition-related charges of $0.3 million and restructuring charges of $1.2 million, compared to $6.6 million in 2023 [81]. Cash Flow and Liquidity - As of June 30, 2024, the company had total liquidity of $158.2 million, including $59.9 million in cash and cash equivalents [106]. - Capital expenditures for the first half of 2024 were $13.2 million, primarily aimed at increasing capacity for future growth [103]. - The Company declared and paid dividends totaling $3.3 million during the six months ended June 30, 2024, with a quarterly dividend of $0.125 per common share declared on July 19, 2024, resulting in a cash outlay of approximately $1.6 million [115]. Debt and Interest Rate Risks - The company incurred net interest expense of $23.9 million in the first half of 2024, up from $21.8 million in the same period of 2023, primarily due to higher interest rates [84]. - A 100-basis-point increase in interest rates would have resulted in an increase in interest expense of approximately $1.5 million during the six-month period ended June 30, 2024 [121]. - The Company must maintain defined availability thresholds ranging from $37.5 million to $50.625 million and a debt service coverage ratio of 1.15 to make certain permitted payments, including acquisitions and dividends [112]. Market and Operational Risks - The Company faces translation risks related to changes in foreign currency exchange rates, which may affect net sales and expenses from foreign operations [122]. - The Company is exposed to market risk, including changes in interest rates and commodity prices, particularly for metal and rubber compounds [123]. - The Company expects to remain in compliance with financial covenants throughout 2024, although declines in sales volumes could adversely impact this ability [113]. - The variability of customer orders has resulted in significant periodic and quarterly fluctuations in operations, particularly in the capital equipment business [116]. - The Company has no material commodity swap agreements or forward purchase contracts, having entered into agreements to hedge foreign currency in 2024 and 2023 [123]. - Forward-looking statements indicate potential risks including economic conditions, supply chain issues, and the ability to integrate acquisitions, which may impact future performance [119].

Financial Performance - Record net sales of $433 million in Q2 2024, up from $428 million in Q2 2023, representing a 1% increase[1][2] - Gross margin improved by 50 basis points to 16.9% year-over-year[1][2] - GAAP income from continuing operations increased to $12.3 million, or $0.95 per diluted share, compared to $7.1 million, or $0.57 per diluted share in Q2 2023, a 67% increase[1][2] - Adjusted EPS from continuing operations rose 23% to $1.02 per diluted share, up from $0.83 in Q2 2023[1][2] - EBITDA improved by 10% year-over-year to $39 million, representing 9.1% of net sales[1][2] - Year-to-date net sales from continuing operations were $850.2 million, slightly down from $851.6 million in the same period in 2023[8] - For 2024, the company expects year-over-year revenue growth between 2% and 4%[8] - Operating income for the three months ended June 30, 2024, increased to $24.6 million, compared to $19.2 million in the same period last year, and for the six months, it rose to $48.6 million from $39.4 million[12] - Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders for the three months ended June 30, 2024, was $12.3 million, up from $7.1 million year-over-year, and for the six months, it increased to $22.9 million from $14.6 million[12] - Adjusted earnings from continuing operations for the three months ended June 30, 2024, were $13.1 million, or $1.02 per diluted share, compared to $10.2 million, or $0.83 per diluted share, in the same period last year[14] - EBITDA for the three months ended June 30, 2024, was $39.4 million, an increase from $35.7 million in the same period last year, and for the six months, it rose to $77.2 million from $67.2 million[12] - Operating income for the three months ended June 30, 2024, was $24.6 million, up from $19.2 million in the same period of 2023, a growth of 28.2%[23] - The company achieved an operating income of $50.1 million for the first half of 2024, compared to $45.2 million in the first half of 2023, reflecting a growth of 10.9%[27] - Adjusted operating income for the first half of 2024 was $50.1 million, compared to $39.4 million in the first half of 2023, indicating a growth of 27.0%[27] Segment Performance - In the Supply Technologies segment, net sales reached $202.6 million, a 3% increase driven by strong demand in aerospace and defense, with a 56% year-over-year sales increase in that market[4] - Engineered Products segment net sales were a record $126.9 million, up 7% year-over-year, with new equipment backlog totaling $173 million[6] - Net sales for the Supply Technologies segment for the six months ended June 30, 2024, were $399.5 million, up from $393.1 million in the same period of 2023, indicating a 1.0% increase[23] - Supply Technologies reported revenue of $19.0 million for the three months ended June 30, 2024, an increase from $15.4 million in the same period of 2023, reflecting a growth of 23.4%[26] - Engineered Products segment revenue increased to $7.3 million in Q2 2024 from $6.1 million in Q2 2023, representing a year-over-year growth of 19.7%[26] - Supply Technologies adjusted revenue for the first half of 2024 was $38.7 million, compared to $29.6 million in the first half of 2023, marking a significant increase of 30.9%[27] - Engineered Products adjusted revenue for the first half of 2024 reached $11.1 million, up from $13.1 million in the first half of 2023, showing a growth of 35.4%[27] - The Assembly Components segment maintained revenue at $15.5 million for the first half of 2024, consistent with the same period in 2023[27] Assets and Liabilities - Total current assets increased to $864.1 million as of June 30, 2024, from $824.4 million as of December 31, 2023, reflecting a growth of 4.1%[20] - Total assets reached $1,380.6 million as of June 30, 2024, compared to $1,340.7 million at the end of 2023, marking a 2.97% increase[20] - Long-term debt increased to $670.3 million as of June 30, 2024, from $633.4 million at the end of 2023, representing a 5.8% rise[20] Cash Flow and Expenses - The company reported a net cash used in investing activities of $24.2 million for the six months ended June 30, 2024, compared to $13.0 million for the same period in 2023, indicating a significant increase in investment[22] - Cash and cash equivalents at the end of the period increased to $59.9 million from $53.4 million, showing an increase of 12.2%[22] - Interest expense for the three months ended June 30, 2024, was $12.0 million, compared to $11.1 million in the same period last year[12] - Interest expense for the six months ended June 30, 2024, was $23.9 million, compared to $21.8 million for the same period in 2023, reflecting an increase of 9.6%[18] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $47.4 million, compared to $46.8 million in the same period last year[12] - The company experienced restructuring and other special charges of $1.2 million for the three months ended June 30, 2024, down from $4.1 million in the same period last year[12] Discontinued Operations - The company reported a loss from discontinued operations of $0.4 million for the three months ended June 30, 2024, an improvement from a loss of $1.7 million in the same period last year[12] - The corporate segment reported an operating loss of $(15.2) million for the first half of 2024, slightly worse than the $(14.7) million loss in the same period of 2023[27] - The company reported a gain on the sale of assets of $0.8 million in the first half of 2023, which did not recur in the first half of 2024[27]

Park-Ohio Holdings Corp. First Quarter 2024 Earnings Call Presentation First Quarter 2024 Highlights Gross margin of 17.1% improved 120 basis points year-over-year 3 • 18% improvement in Adjusted EPS driven by record operating profit in our Supply Technologies segment and benefits from ongoing profit-improvement actions, including product pricing. Q1 Supply Technologies Segment (in millions) • Continued strong customer demand in most of our key end markets, driven by a 28% increase in the aerospace and defe ...

Park-Ohio Holdings Corp. (NASDAQ:PKOH) Q1 2024 Earnings Conference Call April 30, 2024 10:00 AM ET Company Participants Matthew Crawford - Chairman, President and Chief Executive Officer Patrick Fogarty - Vice President and Chief Financial Officer Conference Call Participants Dave Storms - Stonegate Christian Zyla - KeyBanc Capital Markets Yilma Abebe - JPMorgan Operator Good morning and welcome to the Park-Ohio First Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 000-03134 Park-Ohio Holdings Corp. (Exact name of registrant as specified in its charter) | ...