Park-Ohio Holdings Corp.

Good morning and welcome to the Park Ohio first quarter 2022 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 call 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 Security Legislation Reform Act of 1995. These forward-looking statements are subject to risk 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 2021 10-K, which was filed on March 16, 2022, 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 the generally accepted accounting principle. For a reconciliation of EPS to adjusted EPS, and four-year reconciliation of net income attributable to Park Ohio, common shareholders to EBITDA as defined. Please refer to the company's recent earnings release. I'll now turn the conference over to Mr. Matthew Corford, Chairman, President, and CEO. Please proceed, Mr. Corford.

Welcome to our first quarter 2022 conference call.

I hope that all of you noticed the new disclosure we included on our website, a short presentation about the results during the period. Turning to my comments, I'd begin by highlighting that against an ongoing and very challenging business environment, Park Ohio showed significant growth and improved earnings from the first quarter of 2021 and expect to continue this momentum through the remainder of 2022. During the past couple of years, I've often discussed during these calls the entrepreneurial culture which exists in our company and the value of decentralization and accountability. During 2021, a tremendous amount of work was done by our team throughout the world to meet accelerating demand against a backdrop of uncertainty at every turn. I want to thank our team for rising to the challenge in meeting these expectations while undergoing ongoing and numerous discussions around pricing and the effort to reduce operating costs. I believe firmly that challenging operating environments are an opportunity to strengthen our competitive position. Our assets, whether they be inventory, machinery and equipment, innovation, know-how, and most importantly, people, are more valuable to Park Ohio and our customers when times are uncertain and costs are going up. We are fortunate to be well-positioned to continue to invest in all of these categories and intend to strengthen our strategic relationships during these turbulent times. As production supply specialists, supply technology continues to be vital to the performance of their customers as they support close to 100,000 part numbers, many of which in sole source relationships. Maintaining service levels has been a historic challenge during the recent quarter while managing a particularly difficult freight and inflationary environment. By succeeding, we continue to demonstrate our value proposition as a provider of complex value-add supply chain solutions, all while providing steady and improving financial results. Assembly Components' product portfolio continues to achieve strong revenue growth of greater than 26% year-over-year, led by lightweighting, electrification, and reduced fuel emission strategies. as a strategic supplier to an extremely large number of customers and auto platforms. And as we discussed in our fourth quarter call, a tremendous amount of work has had and continues to be done regarding pricing strategies and the ongoing restructuring efforts. Those efforts have resulted in stabilizing our earnings picture, and we expect ongoing operating leverage throughout 2022. Those that have followed Park Ohio for a while Know that engineer products often leads our company from a margin perspective. We continue to see very strong backlogs across the segment and have an aggressive focus on execution to restore their margin leadership. Additionally, investments around high margin aftermarket services and innovation will underpin strong performance through the business cycle. As I've alluded to several times, we continue to stay focused on our operating model to ensure our operations are positioned for long-term success. In some cases, that has and will provide opportunities to dispose of excess assets, which we will continue to benefit our cash flow. While we are still not in a position to provide explicit earnings guidance, I'm optimistic about our ability to focus on strategic revenue growth, which will provide improved margins in both the near and midterms. I also know that in many ways the challenges of the last 24 months have made us a leaner and more agile company which is prepared to succeed in every business environment. Thanks. I'll turn it over to Pat to talk about the quarter.