ParkOhio Announces Improved Third Quarter Results

Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the third quarter of 2016.

THIRD QUARTER RESULTS

In the third quarter of 2016, net sales were $312.7 million and net income attributable to ParkOhio common shareholders was $13.5 million, or $1.10 per diluted share. These results compared to net sales of $364.4 million and net income attributable to ParkOhio common shareholders of $13.2 million, or $1.06 per diluted share, in the third quarter of 2015. On an adjusted basis, net income attributable to ParkOhio common shareholders was $1.13 per diluted share in the third quarter of 2016, compared to $1.10 per diluted share in the 2015 period. Net income in the 2016 period was positively impacted by the reversal of various income tax accruals totaling approximately $4 million relating to previous tax positions for which the statutes of limitations expired. Please refer to the table that follows for a reconciliation of net income to adjusted earnings.

Gross margin, as a percentage of net sales, was 17.4% in the third quarter of 2016, an increase of almost 200 basis points compared to gross margin in the first half of 2016. Operating cash flows were $13.3 million for the third quarter, and the Company had cash and cash equivalents of $57.7 million on hand at September 30, 2016. EBITDA, as defined was $30.7 million in the third quarter of 2016 compared to $36.9 million in the third quarter of 2015. Please refer to the table that follows for a reconciliation of net income to EBITDA, as defined.

Edward F. Crawford, Chairman and Chief Executive Officer, stated, "Improving profitability continued in the third quarter of 2016. We are expecting revenues in some of our key end markets to begin expansion in early 2017."

YEAR-TO-DATE RESULTS

In the nine months ended September 30, 2016, net sales were $970.1 million and net income attributable to ParkOhio common shareholders was $25.2 million, or $2.06 per diluted share. These results compared to net sales of $1,116.4 million and net income attributable to ParkOhio common shareholders of $36.4 million, or $2.94 per diluted share, in the comparable period in 2015. Adjusted earnings in the 2016 period were $2.35 per diluted share compared to $3.00 per diluted share in the 2015 period. Please refer to the table that follows for a reconciliation of net income to adjusted earnings.

If you liked this article you might like

These 5 Stocks Are Ready to Break Out

Insider Trading Alert - AHS, RICK And PKOH Traded By Insiders

Insider Trading Alert - OTIV, ARE And PKOH Traded By Insiders

Insider Trading Alert - IBTX, CSOD And PKOH Traded By Insiders

Cash Dividend On The Way From Park-Ohio Holdings (PKOH)