ParkOhio (NASDAQ:PKOH) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 01:00 pm ET

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ParkOhio (NASDAQ:PKOH) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Park-Ohio First Quarter 2020 Results Conference Call. [Operator Instructions] Today's conference is also being recorded. If you have any objections, you may disconnect at this time.

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 2019 10-K, which was filed on March 12, 2020, with the SEC.

Additionally, the company may discuss adjusted EPS and EBITDA as defined. Adjusted EPS and EBITDA as defined are not measures of performance under generally accepted accounting principles. For a reconciliation of EPS to adjusted EPS and for a reconciliation of net income attributable to ParkOhio common shareholders to EBITDA as defined, please refer to the company's recent earnings release.

I will now like to turn the conference over to Mr. Matthew Crawford, Chairman, CEO and President. Please proceed, Mr. Crawford.

Executive
Matthew V. Crawford

Good afternoon, and thank you for joining our first quarter 2020 call. I want to begin by thanking our entire ParkOhio team for helping navigate this incredibly difficult time. I'm aware of the personal sacrifices that all of us are making, and I'm thankful for the commitment that our team has made to keep everyone safe and support our customers. I also want to express our best wishes for a speedy recovery to the small handful of COVID-19 cases throughout our global workforce.

Pat Fogarty is here with me as well, and I will have him cover in detail the first quarter in a moment. But before I do, I want to discuss a few things about our approach to managing COVID-19 and the challenging business environment we expect to encounter at least through the remainder of 2020.

Despite a robust start to the year, our focus during the second half of March turned very quickly to managing the rapidly changing business and health environment. First, since almost all of our businesses were deemed essential under local law, we worked quickly to manage health and safety. Many work from home, but many also work throughout our facilities. Our pandemic task force and business leadership moved quickly to implement safety protocol, including social distancing, temperature monitoring, appropriate use of PPE, barriers and hygiene practices.

Second, we urgently worked to understand the changing needs of our customers and to respond with changes to our cost structure. Unfortunately, that included a significant reduction in headcount, salary levels and hours worked. We continue to also focus intensely on operating costs and have meaningfully reduced all discretionary spending. We accomplished these needed changes while still fulfilling our customer requirements and making sure that we have not lost our ability to participate in the upside as things slowly improve. Also, Pat