PARK OHIO HOLDINGS CORP

Previous wording

During the fourth quarter of 2022, we determined that our Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities, the operating results and the cash flows of Aluminum Products in discontinued operations for all periods presented throughout this Report on Form 10-Q. On December 29, 2023, the Company sold this business to Angstrom Automotive Group for approximately $50 million in cash and promissory notes, plus the assumption of approximately $3 million of financial lease obligations. The total purchase price consisted of a cash down payment of $20.0 million paid to the Company in December 2022; cash of $15.5 million paid to the Company at closing; and promissory notes totaling up to $15.0 million payable to the Company on approximately the one-year anniversary of the sale, of which $10.0 million is contingent on the Aluminum Products business attaining certain purchase commitments during 2024. See Note 5, “Discontinued Operations,” to the condensed consolidated financial statements, included elsewhere herein.

Current wording

During the fourth quarter of 2022, we determined that our Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities, the operating results and the cash flows of Aluminum Products in discontinued operations for all periods presented throughout this Report on Form 10-Q. On December 29, 2023, the Company sold this business to Angstrom Automotive Group for approximately $50 million in cash and promissory notes, plus the assumption of approximately $3 million of financial lease obligations. The total purchase price consisted of a cash down payment of $20.0 million paid to the Company in December 2022; cash of $15.5 million paid to the Company at closing; and promissory notes totaling up to $15.0 million payable to the Company on approximately the one-year anniversary of the sale, of which up to $10.0 million is contingent on the Aluminum Products business attaining certain purchase commitments during 2024. See Note 5, “Discontinued Operations,” to the condensed consolidated financial statements, included elsewhere herein.

Previous wording

Cost of sales increased to $359.4 million in the second quarter of 2024 compared to $358.0 million in the same period in 2023. The increase in cost of sales was primarily due to the increase in net sales for the 2024 period compared to the corresponding period in 2023, partially offset by the impact of ongoing profit improvement initiatives. Gross margin was 16.9% in the 2024 period compared to 16.4% in the corresponding 2023 period, driven by improved profitability in our Supply Technologies segment; higher sales and improved margins in our capital equipment business; and ongoing profit improvement initiatives.

Current wording

Cost of sales decreased to $345.3 million in the third quarter of 2024 compared to $348.8 million in the same period in 2023. The decrease in cost of sales was primarily due to the decrease in net sales for the 2024 period compared to the corresponding period in 2023, plus the impact of ongoing profit improvement initiatives. Gross margin improved 60 basis points to 17.3% in the 2024 period compared to 16.7% in the corresponding 2023 period, driven by improved profitability in our Supply Technologies segment; higher sales and improved margins in our capital equipment business; and ongoing profit improvement initiatives across the company.

Previous wording

SG&A expenses were $47.4 million in the second quarter of 2024 compared to $46.8 million in the comparable period in 2023, an increase of 1.3%. As a percentage of net sales, SG&A expenses was 11.0% in the second quarter of 2024 compared to

Current wording

SG&A expenses were $47.8 million in the third quarter of 2024 compared to $43.0 million in the comparable period in 2023, an increase of 11.2%. As a percentage of net sales, SG&A expenses were 11.4% in the third quarter of 2024 compared to

Previous wording

10.9% in corresponding 2023 period. The SG&A expense increase as a percentage of net sales was driven by higher selling expenses as a result of higher sales levels; higher costs due to ongoing inflation; and higher employee costs.

Current wording

10.3% in corresponding 2023 period. The SG&A expense increase as a percentage of net sales was driven by higher costs due to ongoing inflation and higher employee costs.

Previous wording

Other components of pension and OPEB income, net was $1.4 million in the quarter ended June 30, 2024 compared to $0.6 million in the corresponding quarter in 2023. This increase was due to lower net actuarial losses impacting 2024 compared to 2023.

Current wording

Other components of pension and OPEB income, net was $1.1 million in the quarter ended September 30, 2024 compared to $0.6 million in the corresponding quarter in 2023. This increase was due to lower net actuarial losses impacting 2024 compared to 2023.

Previous wording

Interest expense, net was $12.0 million in the second quarter of 2024 compared to $11.1 million in the 2023 second quarter. The increase was due primarily to higher interest rates, offset slightly by lower average outstanding debt balances in the 2024 second quarter compared to the same quarter a year ago.

Current wording

Interest expense, net was $12.1 million in the third quarter of 2024 compared to $11.6 million in the 2023 third quarter. The increase was due primarily to higher interest rates, offset slightly by lower average outstanding debt balances in the 2024 third quarter compared to the same quarter a year ago.

Previous wording

In the three months ended June 30, 2024, income tax expense was $2.6 million on pre-tax income from continuing operations of $14.0 million, representing an effective income tax rate of 19%. The three months ended June 30, 2024 income tax expense benefited from discrete tax benefits of $0.4 million related to stock-based compensation. In the three months ended June 30, 2023, income tax expense was $2.1 million on pre-tax income of $8.7 million, representing an effective income tax rate of 24%.

Current wording

In the three months ended September 30, 2024, income tax benefit was $0.6 million on pre-tax income from continuing operations of $12.6 million. In the three month period, we recognized a benefit of $2.4 million primarily due to changes in estimates related to prior year federal research and development credits. In the three months ended September 30, 2023, income tax expense was $3.8 million on pre-tax income of $16.0 million, representing an effective income tax rate of 24%.

Previous wording

Net sales decreased 0.2% to $850.2 million in the first six months of 2024 compared to $851.6 million in the same period in 2023. This decrease was primarily due to lower sales in the Assembly Components segment.

Current wording

Net sales decreased 0.2% to $1,267.8 million in the first nine months of 2024 compared to $1,270.4 million in the same period in 2023. This decrease was primarily due to lower sales in the Assembly Components segment, partially offset by increased sales in our Supply Technologies segment and the capital equipment business in our Engineered Products segment.

Previous wording

The factors explaining the changes in segment net sales for the six months ended June 30, 2024 compared to the corresponding 2023 period are contained in the “Segment Results” section below.

Current wording

The factors explaining the changes in segment net sales for the nine months ended September 30, 2024 compared to the corresponding 2023 period are contained in the “Segment Results” section below.

Previous wording

Cost of sales decreased to $705.6 million in the first six months of 2024 compared to $714.3 million in the same period in 2023, driven by ongoing profit improvement initiatives and the decrease in net sales described above. Gross margin was 17.0% in the 2024 period compared to 16.1% in the corresponding 2023 period. The year-over-year gross margin improvement was driven by improved operating profit in our Supply Technologies segment; higher sales and improved margins in our capital equipment business; and ongoing profit improvement initiatives.

Current wording

Cost of sales decreased to $1,050.9 million in the first nine months of 2024 compared to $1,063.1 million in the same period in 2023, driven by ongoing profit improvement initiatives and the decrease in net sales described above. Gross margin was 17.1% in the 2024 period compared to 16.3% in the corresponding 2023 period. The year-over-year gross margin improvement was driven by improved operating profit in our Supply Technologies segment; higher sales and improved margins in our capital equipment business; and ongoing profit improvement initiatives.

Previous wording

SG&A expenses were $94.5 million in the first six months of 2024, compared to $92.1 million in the same period in 2023, an increase of 2.6%. As a percentage of net sales, SG&A expenses were 11.1% in the first six months of 2024 compared to 10.8% in the comparable period in 2023. These increases were driven by ongoing inflation and higher employee costs.

Current wording

SG&A expenses were $142.3 million in the first nine months of 2024, compared to $135.1 million in the same period in 2023, an increase of 5.3%. As a percentage of net sales, SG&A expenses were 11.2% in the first nine months of 2024 compared to 10.6% in the comparable period in 2023. These increases were driven by ongoing inflation and higher employee costs.

Previous wording

During 2024, the Company recorded acquisition-related charges of $0.3 million in connection with the acquisition of EMA Indutec GmbH (“EMA”), as well as $1.2 million in connection restructuring and other special charges, primarily in our Engineered Products segment.

Current wording

During the first nine months of 2024, the Company recorded $2.1 million in connection restructuring and other special charges, primarily in our Engineered Products segment, as well as acquisition-related charges of $0.3 million in connection with the acquisition of EMA Indutec GmbH (“EMA”).

Previous wording

During 2023, the Company recorded restructuring, acquisition-related and other special charges of $6.6 million, primarily in our Assembly Components and Engineered Products segments.

Current wording

During the first nine months of 2023, the Company recorded restructuring, acquisition-related and other special charges of $6.6 million, primarily in our Assembly Components and Engineered Products segments.

Previous wording

During 2023, in connection with the plant closure and consolidation initiatives, the Company sold real estate within its Engineered Products segment for cash proceeds of $1.4 million, resulting in a gain of $0.8 million.

Current wording

During the first nine months of 2023, in connection with the plant closure and consolidation initiatives, the Company sold real estate within its Engineered Products segment for cash proceeds of $1.4 million, resulting in a gain of $0.8 million.

Previous wording

Other components of pension and OPEB income, net was $2.7 million in the first six months of 2024 compared to $1.3 million in the corresponding period in 2023. This increase was due to lower net actuarial losses impacting 2024 compared to 2023.

Current wording

Other components of pension and OPEB income, net was $3.8 million in the first nine months of 2024 compared to $1.9 million in the corresponding period in 2023. This increase was due to lower net actuarial losses impacting 2024 compared to 2023.

Previous wording

Interest expense, net was $23.9 million in the first six months of 2024 compared to $21.8 million in the 2023 period. The increase was due primarily to higher interest rates, offset slightly by lower average outstanding debt balances in the 2024 period compared to the same period a year ago.

Current wording

Interest expense, net was $36.0 million in the first nine months of 2024 compared to $33.4 million in the 2023 period. The increase was due primarily to higher interest rates, offset slightly by lower average outstanding debt balances in the 2024 period compared to the same period a year ago.

Previous wording

In the six months ended June 30, 2024, income tax expense was $5.9 million on pre-tax income from continuing operations of $27.4 million, representing an effective income tax rate of 22%. In the six months ended June 30, 2023, income tax expense was $4.7 million on pre-tax income of $18.9 million, representing an effective income tax rate of 25%.

Current wording

In the nine months ended September 30, 2024, income tax expense was $5.3 million on pre-tax income from continuing operations of $40.0 million, representing an effective income tax rate of 13%. In the nine months period, we recognized a benefit of $2.4 million primarily due to changes in estimates related to prior year federal research and development credits. In the nine months ended September 30, 2023, income tax expense was $8.5 million on pre-tax income of $34.9 million, representing an effective income tax rate of 24%.

Previous wording

Net sales increased $5.3 million in the three months ended June 30, 2024 compared to the 2023 period due continued strong demand in many of the Company's key end markets, with the largest increases in the aerospace and defense, heavy-duty truck, off-road construction, electrical distribution and consumer electronics end markets, partially offset by sales decreases in the semiconductor and agricultural and industrial equipment end markets. In addition, net sales benefited from higher customer demand for our proprietary products throughout North America and Europe in our fastener manufacturing business.

Current wording

Net sales increased $1.7 million, or 1%, in the three months ended September 30, 2024 compared to the 2023 period due continued strong demand in many of the Company's key end markets, with the largest increases in the aerospace and defense, consumer electronics, electrical distribution and medical equipment end markets, offset by lower year-over-year sales in our heavy-duty truck and power sports end markets. In addition, net sales benefited from strong customer demand continued in our fastener manufacturing business.

Previous wording

Segment operating income increased $3.6 million to $19.0 million in the three months ended June 30, 2024 compared to the 2023 period, and segment operating income margin increased 160 basis points in the 2024 period compared to the same period a year ago. These increases were due primarily to an increase in sales of higher-margin products, lower operating costs in our supply chain business, ongoing profit-improvement initiatives and continued strong demand in our fastener manufacturing business.

Current wording

Segment operating income increased $4.9 million, or 31%, to $20.5 million in the three months ended September 30, 2024 compared to the 2023 period, and segment operating income margin increased 240 basis points in the 2024 period compared to the same period a year ago. These increases were due primarily to an increase in sales of higher-margin products, strong operational execution, and continued strong demand in our fastener manufacturing business.

Previous wording

Net sales increased $6.4 million in the six months ended June 30, 2024 compared to the 2023 period due continued strong demand in most of the Company's key end markets, with the largest increases in the aerospace and defense and heavy-duty truck end markets, partially offset by decreases in the agricultural and industrial equipment, semiconductor and truck and truck-related equipment end markets. In addition, net sales benefited from higher customer demand for our proprietary products throughout North America and Europe in our fastener manufacturing business.

Current wording

Net sales increased $8.1 million, or 1%, in the nine months ended September 30, 2024 compared to the 2023 period due to continued strong demand in most of the Company's key end markets, with the largest increases in the aerospace and defense and heavy-duty truck end markets, partially offset by decreases in the agricultural and industrial equipment, semiconductor and truck and truck-related equipment end markets. In addition, net sales benefited from higher customer demand for our proprietary products throughout North America and Europe in our fastener manufacturing business.

Previous wording

Segment operating income increased $9.1 million to $38.5 million in the six months ended June 30, 2024 compared to the 2023 period, and segment operating income margin increased 210 basis points in the 2024 period compared to the same period a year ago. These increases were due primarily to an increase in sales of higher-margin products and lower operating costs in our supply chain business, and strong demand in our fastener manufacturing business.

Current wording

Segment operating income increased $14.0 million, or 31%, to $59.0 million in the nine months ended September 30, 2024 compared to the 2023 period, and segment operating income margin increased 220 basis points in the 2024 period compared to the same period a year ago. These increases were due primarily to an increase in sales of higher-margin products and lower operating costs in our supply chain business, and strong demand in our fastener manufacturing business.

Previous wording

Net sales were $8.9 million lower in the three months ended June 30, 2024 compared to the 2023 period. The decrease was due primarily to lower product pricing on certain legacy programs and lower unit volumes primarily on end-of-life programs, partially offset by higher product pricing on certain other programs.

Current wording

Net sales were $9.7 million, or 9%, lower in the three months ended September 30, 2024 compared to the 2023 period. The decrease was due primarily to lower product pricing on certain legacy programs and lower unit volumes primarily on end-of-life programs, partially offset by higher product pricing on certain other programs.

Previous wording

Segment operating decreased to $6.9 million in the three months ended June 30, 2024 compared to $8.4 million in the 2023 period. The decrease was due to the lower product pricing and unit volumes, which were partially offset by profit enhancement initiatives in the 2024 period. During the 2023 period, we incurred restructuring and other special charges of $1.2 million.

Current wording

Segment operating income decreased to $6.1 million in the three months ended September 30, 2024 compared to $11.2 million in the 2023 period. The decrease in operating income and margin in the third quarter of 2024 compared to the 2023 third quarter was due to the lower product pricing and unit volumes, which were partially offset by profit enhancement initiatives in the 2024 period. The 2024 period also included $0.5 million of charges related to restructuring activities.

Previous wording

Net sales were $12.1 million lower in the six months ended June 30, 2024 compared to the 2023 period. The decrease was due primarily to lower product pricing on certain legacy programs and lower unit volumes primarily on end-of-life programs, partially offset by higher product pricing on certain other programs.

Current wording

Net sales were $21.8 million, or 7%, lower in the nine months ended September 30, 2024 compared to the 2023 period. The decrease was due primarily to lower product pricing on certain legacy programs and lower unit volumes primarily on end-of-life programs, partially offset by higher product pricing on certain other programs.

Previous wording

Segment operating income of $15.5 million in the six months ended June 30, 2024 was in-line with the 2023 period. Segment operating income margin increased 30 basis points in the 2024 period compared to a year ago. The improvement in segment operating margin in the 2024 period compared to the same period a year ago was driven by the benefit of ongoing profit improvement initiatives and completed plant closure and consolidation actions, which more than offset the impact of lower product pricing and unit volumes. During the 2023 period, we incurred restructuring and other special charges of $1.5 million.

Current wording

Segment operating income decreased to $21.6 million in the nine months ended September 30, 2024 compared to $26.9 million in the 2023 period. The decrease was due to the lower product pricing and unit volumes, which were partially offset by profit enhancement initiatives in the 2024 period. Segment operating income margin decreased 110 basis points in the 2024 period compared to the same period a year ago. The 2024 period also included $0.5 million of charges related to restructuring activities. During the 2023 period, we incurred restructuring and other special charges of $1.5 million.

Previous wording

Net sales increased 6.8% in the 2024 period compared to the 2023 period. The increase was driven by higher sales in both our new capital equipment and aftermarket parts and services primarily in North America, as well as strong sales in the aerospace and defense industry.

Current wording

Net sales increased 5.8% in the 2024 period compared to the 2023 period. The increase was driven by higher sales in both our new capital equipment and aftermarket parts and services businesses in North America and Europe.

Previous wording

Segment operating income in the 2024 period increased $3.1 million compared to the 2023 period. Segment operating income margin increased 230 basis points in the 2024 period compared to the 2023 period. These increases were driven by higher sales and improved margins in our capital equipment business, which more than offset lower unit volumes and margins in our forged and machined products business.

Current wording

Segment operating income in the 2024 period decreased $2.3 million compared to the 2023 period. Segment operating income margin decreased 210 basis points in the 2024 period compared to the 2023 period. The lower profitability in the 2024 third quarter was driven by lower sales levels and operating margins in our forged and machined products business, which more than offset higher sales and profitability in our capital equipment business.

Previous wording

Net sales increased 1.8% in the 2024 period compared to the 2023 period. The increase was driven by higher capital equipment sales and higher sales in our forged and machined products business.

Current wording

Net sales increased 3.1% in the 2024 period compared to the 2023 period. The increase was driven by higher capital equipment and aftermarket sales.

Previous wording

Segment operating income in the 2024 period increased $1.6 million compared to the 2023 period as a result of the higher sales and margins in our capital equipment business offset by higher operating costs in our forged and machined products business. During the 2024 and 2023 periods, we incurred restructuring and other special charges of $1.3 million and $4.9 million, respectively.

Current wording

Segment operating income in the 2024 period decreased $0.7 million compared to the 2023 period as a result of higher operating costs in our forged and machined products business, partially offset by the higher sales and margins in our capital equipment business. During the 2024 and 2023 periods, we incurred restructuring and other special charges of $1.6 million and $4.9 million, respectively.

Previous wording

Capital expenditures were $13.2 million in the six months ended June 30, 2024 and were primarily to provide increased capacity for future growth in our Engineered Products and Assembly Components segments, to maintain existing operations and for information system implementation. Additionally, during the six months ended June 30, 2024, the Company paid $11.0 million, net of cash acquired for the EMA acquisition.

Current wording

Capital expenditures were $22.3 million in the nine months ended September 30, 2024 and were primarily to provide increased capacity for future growth in our Engineered Products and Assembly Components segments, to maintain existing operations and for information system implementation. Additionally, during the nine months ended September 30, 2024, the Company paid $11.0 million, net of cash acquired for the EMA acquisition.

Previous wording

Capital expenditures were $13.4 million in the six months ended June 30, 2023 and were primarily to provide increased capacity for future growth in our Engineered Products and Assembly Components segments, for facility consolidation in our Engineered Products segment and to maintain existing operations.

Current wording

Capital expenditures were $20.8 million in the nine months ended September 30, 2023 and were primarily to provide increased capacity for future growth in our Engineered Products and Assembly Components segments, for facility consolidation in our Engineered Products segment and to maintain existing operations.

Previous wording

During the six months ended June 30, 2024, we had net debt borrowings of $41.8 million to fund capital expenditures and the EMA acquisition. In addition, in the six months ended June 30, 2024, the Company made scheduled payments related to prior acquisitions totaling $0.8 million and made cash dividend payments to shareholders totaling $3.3 million.

Current wording

During the nine months ended September 30, 2024, we had net debt borrowings of $18.4 million to fund capital expenditures and the EMA acquisition. In addition, in the nine months ended September 30, 2024, the Company generated proceeds from common stock issuances totaling $24.7 million, made scheduled payments related to prior acquisitions totaling $2.2 million and made cash dividend payments totaling $5.4 million. See Note 15, “Weighted-Average Number of Shares Used in Computing Earnings Per Share,” to the condensed consolidated financial statements, included elsewhere herein, for further discussion about the common stock issuances.

Previous wording

During the six months ended June 30, 2023, we had net debt borrowings of $18.5 million to fund our capital expenditures, made scheduled payments related to prior acquisitions totaling $2.0 million and made cash dividend payments to shareholders totaling $3.2 million.

Current wording

During the nine months ended September 30, 2023, we had net debt borrowings of $5.4 million to fund a portion of our capital expenditures. In addition, the Company made scheduled payments related to prior acquisitions totaling $2.1 million and made cash dividend payments to shareholders totaling $4.9 million.

Previous wording

Our liquidity needs are primarily for working capital, capital expenditures, dividends and acquisitions. Our primary sources of liquidity have been funds provided by operations, funds available from existing bank credit arrangements and the sale of our debt securities. Our existing financial resources (working capital and available bank borrowing arrangements) and anticipated cash flow from operations are expected to be adequate to meet anticipated cash requirements for at least the next twelve months and the foreseeable future thereafter, including but not limited to our ability to maintain current operations and fund capital expenditure requirements, service our debt, pursue acquisitions, pay dividends and repurchase common shares.

Current wording

Our liquidity needs are primarily for working capital, capital expenditures, dividends and acquisitions. Our primary sources of liquidity have been funds provided by operations, funds available from existing bank credit arrangements and the sale of our debt securities. Our existing financial resources (working capital, available bank borrowing arrangements and our at the market program) and anticipated cash flow from operations are expected to be adequate to meet anticipated cash requirements for at least the next twelve months and the foreseeable future thereafter, including but not limited to our ability to maintain current operations and fund capital expenditure requirements, service our debt, pursue acquisitions, pay dividends and repurchase common shares. For more information about our at the market program and other sales of common stock, see Note 15, “Weighted-Average Number of Shares Used in Computing Earnings Per Share,” to the condensed consolidated financial statements, included elsewhere herein.

Previous wording

As of June 30, 2024, we had total liquidity of $158.2 million, which included $59.9 million of cash and cash equivalents and $98.3 million of unused borrowing availability under our credit agreements and excluded $2.4 million of suppressed availability.

Current wording

As of September 30, 2024, we had total liquidity of $194.4 million, which included $59.5 million of cash and cash equivalents and $134.9 million of unused borrowing availability under our credit agreements, which includes $18.1 million of suppressed availability.

Previous wording

The Company had cash and cash equivalents held by foreign subsidiaries of $49.4 million at June 30, 2024 and $44.6 million at December 31, 2023. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.

Current wording

The Company had cash and cash equivalents held by foreign subsidiaries of $48.6 million at September 30, 2024 and $44.6 million at December 31, 2023. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.

Previous wording

As of June 30, 2024, the Company had finance leases totaling $14.5 million.

Current wording

As of September 30, 2024, the Company had finance leases totaling $14.6 million.

Previous wording

The future availability of bank borrowings under the revolving credit facility provided by the Credit Agreement is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $50.625 million, our ability to meet a debt service ratio covenant. If our calculated availability is less than $50.625 million, our debt service coverage ratio must be greater than 1.0. At June 30, 2024, our calculated availability under the Credit Agreement was $84.4 million; therefore, the debt service ratio covenant did not apply.

Current wording

The future availability of bank borrowings under the revolving credit facility provided by the Credit Agreement is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $50.625 million, our ability to meet a debt service ratio covenant. If our calculated availability is less than $50.625 million, our debt service coverage ratio must be greater than 1.0. At September 30, 2024, our calculated availability under the Credit Agreement was $108.7 million; therefore, the debt service ratio covenant did not apply.

Previous wording

The Company declared and paid dividends to shareholders of $3.3 million during the six months ended June 30, 2024. On July 19, 2024, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on August 16, 2024 to shareholders of record as of the close of business on August 2, 2024 and will result in a cash outlay of approximately $1.6 million. Although we currently intend to pay a quarterly dividend on an ongoing basis, all future dividend declarations will be at the discretion of our Board of Directors and dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors may deem relevant.

Current wording

The Company declared and paid dividends to shareholders of $4.9 million during the nine months ended September 30, 2024. On November 1, 2024, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on November 29, 2024 to shareholders of record as of the close of business on November 15, 2024 and will result in a cash outlay of approximately $1.6 million. Although we currently intend to pay a quarterly dividend on an ongoing basis, all future dividend declarations will be at the discretion of our Board of Directors and dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors may deem relevant.