NASDAQ$PKOH

Park-Ohio Holdings Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Park-Ohio experienced a mixed Q3 2021, with overall revenue increasing but profitability impacted by challenges in the Assembly Components segment.

Park-Ohio's Q3 2021 results showed a revenue increase of 5% to $358.5 million, but a GAAP EPS loss of $(0.60) and an adjusted EPS loss of $(0.32). The Assembly Components segment was significantly impacted by automotive production volatility and rising costs. The company is taking actions to improve performance.

  • Revenue increased by 5% to $358.5 million compared to Q3 2020.
  • GAAP EPS loss was $(0.60), and adjusted EPS loss was $(0.32).
  • Supply Technologies revenue increased by 17% due to strong customer demand.
  • Assembly Components was significantly affected by semiconductor shortages and rising costs, leading to an operating loss.

Headline financials

Total Revenue

$359M

Previous: $340M+5.4%
EPS (adj)

-$0.32

Previous: $0.52-161.5%
EBITDA, as defined

$13.3M

Previous: $25.7M-48.2%
Capital Expenditures

-$24.9M

Previous: -$14.9M-67.1%
Free Cash Flow

-$32.1M

Previous: -$9.6M-234.4%
Net Income

-$7.2M

Previous: $5.3M-235.8%
Operating Income

-$5M

Previous: $11M-145.5%
Gross Profit

$40.1M

Previous: $49.7M-19.3%
Cash & Equivalents

$59.6M

Previous: $50.9M+17.1%
Total Assets

$1.37B

Previous: $1.27B+8.0%
Stock-Based Comp

$1.7M

Previous: $1.7M+0.0%

Revenue & EPS history

Park-Ohio · Revenue · Quarterly

$359M

Q3 2021+5.4%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Park-Ohio · $359M total across 3 segments · Q3 2021

  • Supply Technologies
    $154M+16.7%
  • Assembly Components
    $120M-5.3%
  • Engineered Products
    $84.3M+3.7%

Forward guidance

For the year ending December 31, 2021, Park-Ohio expects organic sales growth of 10% to 12%, total capital expenditures between $28 million and $32 million, an EBITDA margin reduced to approximately 5%, and cash utilization of $25 million to $30 million for free cash flow purposes.

Tailwinds

  • Expect organic sales growth to be 10% to 12%
  • Total capital expenditures to be within $28 million to $32 million
  • Focus on pricing initiatives to aggressively respond to the higher product costs
  • Automating certain manufacturing processes to combat labor shortages
  • Implementing changes to improve plant productivity

Headwinds

  • EBITDA margin for 2021 to be reduced to approximately 5%
  • Impacts of the ongoing global micro-chip shortage
  • Increasing raw material and supply chain costs
  • Expect to utilize cash of $25 million to $30 million in 2021 for free cash flow purposes
  • Assembly Components, which services mainly the automotive end market, was particularly challenged

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.5%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+29.5%

Q1 2022

Best reaction

-37.2%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%-2.3%+5.7%
Q4 2025+4.4%-4.7%-10.1%
Q3 2025-9.3%-7.0%+3.0%
Q1 2025-8.9%-5.4%-16.4%
Q4 2024+3.6%-2.3%-14.9%
Q3 2024+10.3%+15.4%+7.9%
Q2 2024+0.9%+1.1%+0.4%
Q1 2024+6.0%+8.2%+6.0%
Q4 2023-9.2%-10.6%-2.0%
Q3 2023+22.8%+12.2%+6.3%
Q2 2023-1.0%-7.1%-2.5%
Q1 2023+15.0%+19.8%+31.8%
Q4 2022+1.8%-3.9%+1.5%
Q3 2022+5.0%+13.3%+0.7%
Q2 2022+1.4%+7.9%-9.6%
Q1 2022+29.5%+47.8%+101.5%
Q4 2021+4.6%+6.4%-14.3%
Q3 2021+0.0%+1.8%-15.3%
Q2 2021-10.9%-15.8%-8.0%
Q1 2021-0.7%+1.0%-1.6%
Q4 2020+8.2%+9.9%-6.4%
Q3 2020+5.1%+11.2%+44.4%
Q2 2020+4.1%+9.3%+3.0%
Q1 2020-10.4%-14.1%+10.6%
Q4 2019-32.7%-23.0%+7.6%
Q3 2019+4.7%+3.0%-2.6%
Q2 2019-7.3%-7.6%-9.7%
Q1 2019-4.1%-7.3%-15.8%
Q4 2018+5.9%+3.8%+8.0%
Q3 2018+10.9%+7.6%+4.5%
Q2 2018+9.4%+6.4%+7.9%
Q1 2018+3.6%+12.5%+11.7%
Q4 2017+9.8%+9.6%-3.2%
Q3 2017-8.4%-9.3%-6.6%
Q2 2017-0.8%-0.8%+0.5%
Q1 2017-4.3%-7.7%-4.6%
Q4 2016-12.0%-15.0%-14.6%
Q3 2016+14.7%+24.4%+39.0%
Q2 2016+14.0%+13.1%+18.1%
Q1 2016-37.2%
Q4 2015+9.0%
Q3 2015+9.6%
Q2 2015-1.6%
Q1 2015+6.5%
Q4 2014-15.4%
Q3 2014+2.4%
Q2 2014-3.3%
Q1 2014-5.2%
Q4 2013+4.4%
Q3 2013-2.6%
Q2 2013-3.9%
Q1 2013+0.2%
Q4 2009+5.2%
Q4 2012+15.9%
Q3 2012+0.2%
Q2 2012-2.0%
Q1 2011-0.4%
Q1 2012+7.7%
Q4 2011-0.6%
Q3 2011-4.1%
Q3 2010-4.1%
Q4 2010-11.1%
Q2 2011-11.1%
Q2 2010-11.1%
Q1 2010+7.7%

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