Business
ParkOhio Announces First Quarter 2020 Results
Q1 2020 Revenues of $366 million Q1 2020 GAAP EPS of $0.10; Q1 2020 Adjusted EPS of $0.13 Liquidity position as of March 31, 2020 totaled $237 million
About this update from Park-ohio Holdings Corp.
[{"type":"text","content":"\n\nQ1 2020 Revenues of $366 million\n\n\nQ1 2020 GAAP EPS of $0.10; Q1 2020 Adjusted EPS of $0.13\n\n\nLiquidity position as of March 31, 2020 totaled $237 million\n\n\nQuarterly Dividend Suspended \n\n\n\n \n\n CLEVELAND, OHIO--(BUSINESS WIRE)--\nPark-Ohio Holdings Corp. (NASDAQ:PKOH) today announced its results for the first quarter of 2020.\n\n\nFIRST QUARTER CONSOLIDATED RESULTS\n\n\nNet sales were $366.3 million in the first quarter of 2020 compared to net sales of $420.1 million in the first quarter of 2019. Net income attributable to ParkOhio common shareholders was $1.2 million, or $0.10 per diluted share, in the first quarter of 2020, compared to net income of $11.2 million, or $0.90 per diluted share, in the first quarter of 2019. On an adjusted basis, net income attributable to ParkOhio common shareholders was $0.13 per diluted share in the 2020 period compared to net income of $1.01 per diluted share in the 2019 period. Results in 2020 include an effective income tax rate of 81% driven by deductions and foreign tax credits that cannot be claimed in 2020 or carried forward, based on estimates of 2020 taxable income by jurisdiction. The impact of these items on our first quarter 2020 income tax expense was an increase of approximately $3.7 million, or $0.30 per diluted share. Please refer to the table that follows for a reconciliation of net income to adjusted earnings.\n\n\nThe initial impact of the COVID-19 pandemic weakened demand in several of the Company’s end markets in the first quarter of 2020, primarily in the automotive, oil and gas, aerospace and defense and industrial end markets. Many of our operations were idled during the month of March and continue to be idle or significantly downsized, while operations deemed essential continue to operate under federal and state guidelines. We expect a significant reduction in demand during the second quarter of 2020, and for the full year 2020, but the extent cannot be reasonably estimated.\n\n\nAt March 31, 2020, we had liquidity of $236.8 million, including cash on-hand of $56.8 million and $180.0 million of unused borrowing capacity under our various banking arrangements. During the first quarter, net cash used by operating activities totaled $3.9 million, and capital expenditures were $4.9 million. We are aggressively managing working capital and expect to minimi...