Yahoo Finance Park-Ohio Holdings Corp. (NASDAQ:PKOH) Q1 2024 Earnings Call Transcript
Park-Ohio Holdings Corp. (NASDAQ:PKOH) Q1 2024 Earnings Call Transcript May 1, 2024
Park-Ohio Holdings Corp. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
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 mode. After the presentation, the company will conduct a 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. 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 in the earnings press release as well as in the company’s 2023 10-K, which was filed on March 6, 2024, with the SEC.
Additionally, the company may discuss adjusted EPS, adjusted operating income and EBITDA as defined on a continuing operations or consolidated basis. These metrics are not measures of performance under generally accepted accounting principles. For a reconciliation of EPS to adjusted EPS, operated income to adjusted operated income and net income attributable to Park-Ohio common shareholders to EBITDA as defined, please refer to the company’s recent earnings release. I will now turn the conference over to Mr. Matthew Crawford, Chairman, President and CEO. Please proceed, Mr. Crawford.
Matthew Crawford: Great. Thank you very much, and welcome to the first quarter of 2024 conference call. Thank you for joining. We’re pleased with the performance of our company during the quarter, especially as it relates to our improved margins and our continued focus on managing improved cash flows. As most of you know, we’ve spent most of the last several years driving initiatives that would improve the quality of earnings across the businesses. These include commercial activity regarding pricing and exiting low or negative margin business, the restructuring of several high-cost locations, renewed focus on growing our highest-margin products and services and the sale of non-core assets. During the first quarter, we began to see a clearer picture of the momentum of those efforts and are proceeding towards a leaner, less capital-intensive and more predictable business.
I particularly want to acknowledge the efforts of Supply Technologies. Supply Tech has led the way as an agile supplier to many of the world’s most demanding and often volatile industries and customers, while driving continuous improvement initiatives deeper into the organization and investing aggressively in new productivity tools in both data intelligence and operating execution. Additionally, the innovative ideas in the fastener manufacturing group continue to bring important value-driven solutions to an increasing set of global customers, particularly in the EV space. ACG’s relentless focus on operations after several years of consolidations, which are now substantially complete, have not only created more improved and consistent performance, but allow us to quote new business and new products from a position of lower cost and world-class execution.
Our product portfolio is diverse and, in many cases, agnostic to the powertrain of the vehicle. EPG continues to benefit from strong backlogs in a growing and impressive aftermarket and service business precipitated by a massive installed base globally and trusted brands in the industrial space. We’re striving to improve execution in the new equipment business, where we’ve seen substantial turnover in key knowledge areas and expect improvements as we head into the latter part of the year. I remind us all that this group should and will be a leader in accretion to our consolidated marches. For the balance of the year, we anticipate improved year-over-year comparisons and annual growth in line with our guidance. stable demand generally combined with strong aerospace and defense volumes plus solid backlogs in the long-cycle businesses support that assumption.
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