(A) Reconciliation to GAAP: Quarter ended Year ended December 31, December 31, 2009 2008 2009 2008 -------- -------- -------- -------- Net (loss) income, as reported $.2 ($119.9) ($5.2) ($119.8) Income taxes, as reported (2.7) 20.2 (.8) 21.0 -------- -------- -------- -------- Income (loss) before income taxes, as reported ($2.5) ($99.7) ($6.0) ($98.8) Restructuring and impairment charges (1) (2) 7.0 108.6 7.0 126.6 Gains (3) (1.2) (6.2) (6.3) (6.2) Reserve for a customer in bankruptcy (4) 0 0 4.2 0 Income taxes, as adjusted (1.3) (1.0) .4 (7.9) -------- -------- -------- -------- Net (loss) income, as adjusted $2.0 $1.7 ($.7) $13.7 -------- -------- -------- -------- (1) During the fourth quarter of 2009, the Company recorded $7.0 million of asset impairment charges associated with general weakness in the economy including the railroad industry ($3.0 million in the Manufactured Products segment and $4.0 million in the Supply Technologies segment). The charges were composed of $1.8 million of inventory impairment included in Cost of Products Sold and $5.2 million for impairment of property and equipment. During the fourth quarter of 2008, ParkOhio recorded a non-cash goodwill impairment charge of $95.8 million and restructuring and asset impairment charges of $13.4 associated with the decision to exit its relationship with its largest customer along with the general economic downturn. The charges were composed of $5.0 million of inventory impairment included in Cost of Products Sold and $8.4 million for impairment of property and equipment and loss on disposal of a foreign subsidiary and severance costs. Impairment charges of $.6 million recorded in the Aluminum Products segment in the third quarter of 2008 were reversed in the fourth quarter of 2008. (2) During the third quarter of 2008, the Company recorded $18.1 million of restructuring and asset impairment charges associated with the weakness and volatility in the automotive markets, ($13.8 million in the Aluminum Products segment and $4.3 million in the Manufactured Products segment). Inventory impairment charges of $.6 million were included in Cost of Products Sold and $17.5 million were included in Restructuring and impairment charges. (3) In 2009, Park-Ohio Holdings Corp. recorded a gain of $6.3 million on the purchase of $15.15 million principal amount of Park-Ohio Industries, Inc. 8.375% senior subordinated notes due 2014, of which $1.2 million was recorded in the fourth quarter. In the fourth quarter of 2008, Park-Ohio Holdings Corp. recorded a gain of $6.2 million on the purchase of $11.0 million of Park-Ohio Industries, Inc. 8.375% senior subordinated notes due 2014. The notes were not contributed to Park-Ohio Industries, Inc. but were held by Park-Ohio Holdings Corp. at December 31, 2008 and subsequently sold to a foreign subsidiary of Park-Ohio Industries, Inc. in the fourth quarter of 2009. (4) In the first nine months of 2009, the Company recorded a charge of $4.2 million to fully reserve for an account receivable from a customer in bankruptcy. (5) The Company presents adjusted net income excluding impairment charges and gains to facilitate comparison between periods.A conference call reviewing ParkOhio's fourth quarter results will be broadcast live over the Internet on Tuesday, March 9, commencing at 10:00 am Eastern Time. Simply log on to http://www.pkoh.com. ParkOhio is a leading provider of supply management services and a manufacturer of highly engineered products. Headquartered in Cleveland, Ohio, the Company operates 28 manufacturing sites and 40 supply chain logistics facilities. This news release contains forward-looking statements, including statements regarding future performance of the Company that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected.
ParkOhio Announces 2009 Results
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