Park Aerospace Corp. Reports Second Quarter Results

7 October 2021

NEWTON, Kan., Oct. 07, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year second quarter ended August 29, 2021. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, costs relating to the Electronics Business are reported as discontinued operations. Continuing operations discussed below refer to Park’s Aerospace Business unless otherwise indicated.

The Company will conduct a conference call to discuss its financial results and other matters at 11:00 a.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/ahtr5shb at 11:00 a.m. EDT today. The presentation materials will also be available at approximately 9:00 a.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page.

Continuing Operations:

Park reported net sales of $13,618,000 for the 2022 fiscal year second quarter ended August 29, 2021 compared to $9,250,000 for the 2021 fiscal year second quarter ended August 30, 2020 and $13,594,000 for the 2022 fiscal year first quarter ended May 30, 2021. Park’s net sales from continuing operations for the six months ended August 29, 2021 were $27,212,000 compared to $21,463,000 for the six months ended August 30, 2020. Net earnings from continuing operations for the 2022 fiscal year second quarter were $2,022,000 compared to $1,151,000 for the 2021 fiscal year second quarter and $2,745,000 for the 2022 fiscal year first quarter. Net earnings from continuing operations were $4,767,000 for the current year’s first six months compared to $3,123,000 for last year’s first six months.

Net earnings from continuing operations before special items for the 2022 fiscal year second quarter were $2,192,000 compared to $1,151,000 for the 2021 fiscal year second quarter and $2,759,000 for the 2022 fiscal year first quarter. Net earnings from continuing operations before special items for the six months ended August 29, 2021 were $4,951,000 compared to $3,123,000 for last fiscal year’s first six months.

Adjusted EBITDA from continuing operations for the 2022 fiscal year second quarter was $3,232,000 compared to $1,418,000 for the 2021 fiscal year second quarter and $4,104,000 for the 2022 fiscal year first quarter. Adjusted EBITDA from continuing operations for the current year’s first six months was $7,336,000 compared to $3,782,000 for last year’s first six months.

The Company recorded pretax restructuring charges of $170,000 in the 2022 fiscal year second quarter and $14,000 in the 2022 fiscal year first quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd idle facility in Singapore.

Park reported basic and diluted earnings per share from continuing operations of $0.10 for the 2022 fiscal year second quarter compared to $0.06 for the 2021 fiscal year second quarter and $0.13 for the 2022 fiscal year first quarter. Basic and diluted earnings per share from continuing operations before special items were $0.11 for the 2022 fiscal second quarter compared to $0.06 for the 2021 fiscal year’s second quarter and $0.14 and $0.13, respectively, for basic and diluted earnings per share from continuing operations before special items for the 2022 fiscal year first quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.23 for the 2022 fiscal year’s first six months compared to $0.15 for the 2021 fiscal year’s first six months. Basic and diluted earnings per share from continuing operations before special items were $0.24 for the 2022 fiscal year’s first six months compared to $0.15 for the 2021 fiscal year’s first six months.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries. The required passcode for attendance by phone is 5957093.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Wednesday, October 13, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/ahtr5shb and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page. It can also be accessed by dialing (855) 859-2056 in the United States and Canada, and (404) 537-3406 in other countries. The required passcode for accessing the replay by phone is 5957093.

Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's web site at https://parkaerospace.com/shareholders/investor-conference-calls/.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as restructuring charges. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA, and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park’s advanced composite materials include film adhesives (undergoing development) and lightning strike materials. Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park’s objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up.

Additional corporate information is available on the Company’s web site at www.parkaerospace.com

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

 
 13 Weeks Ended 26 Weeks Ended 
            
 August 29,
2021
  August 30,
2020
  May 30,
2021
 August 29,
2021
  August 30,
2020
Sales$13,618   $9,250   $13,594  $27,212   $21,463 
                  
Net Earnings before Special Items1$2,192   $1,151   $2,759  $4,951   $3,123 
Special Items, Net of Tax:                 
Restructuring Charges(170)  -   (14) (184)  - 
Net Earnings from Continuing Operations$2,022   $1,151   $2,745  $4,767   $3,123 
                  
Loss from Discontinued Operations, Net of Tax$-   $(197)  $-  $-   $(212)
                  
Net Earnings$2,022   $954   $2,745  $4,767   $2,911 
                  
Basic Earnings per Share:                 
Basic Earnings before Special Items1$0.11   $0.06   $0.14  $0.24   $0.15 
Special Items:                 
Restructuring Charges(0.01)  -   (0.01) (0.01)  - 
Basic Earnings per Share from Continuing Operations$0.10   $0.06   $0.13  $0.23   $0.15 
                  
Basic Loss per Share from Discontinued Operations-   (0.01)  -  -   (0.01)
                  
Basic Earnings per Share$0.10   $0.05   $0.13  $0.23   $0.14 
                  
                  
                  
Diluted Earnings before Special Items1$0.11   $0.06   $0.13  $0.24   $0.15 
Special Items:                 
Restructuring Charges(0.01)  -   -  (0.01)  - 
Diluted Earnings per Share from Continuing Operations$0.10   $0.06   $0.13  $0.23   $0.15 
                  
Diluted Loss per Share from Discontinued Operations-   (0.01)  -  -   (0.01)
                  
Diluted Earnings per Share$0.10   $0.05   $0.13  $0.23   $0.14 
                  
Weighted Average Shares Outstanding:                 
Basic20,397   20,381   20,383  20,390   20,392 
Diluted20,485   20,433   20,710  20,597   20,447 
 
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.
 

Comparative balance sheets (in thousands):

    
 August 29,
2021
 February 28,
2021
Assets(unaudited)  
Current Assets   
Cash and Marketable Securities$    112,842 $    116,542
Accounts Receivable, Net8,481 7,633
Inventories4,821 4,794
Prepaid Expenses and Other Current Assets3,122 3,372
Total Current Assets129,266 132,341
    
Fixed Assets, Net23,212 21,130
Operating Right-of-use Assets76 103
Other Assets9,942 9,938
Total Assets$    162,496 $    163,512
    
Liabilities and Shareholders' Equity   
Current Liabilities   
Accounts Payable$        2,515 $       3,300
Accrued Liabilities1,395 1,708
Operating Lease Liability8 33
Income Taxes Payable3,002 2,952
Total Current Liabilities6,920 7,993
    
Long-term Operating Lease Liability89 86
Non-current Income Taxes Payable12,623 14,303
Deferred Income Taxes1,168 778
Other Liabilities4,478 4,411
Total Liabilities25,278 27,571
    
Shareholders’ Equity137,218 135,941
    
Total Liabilities and Shareholders' Equity$    162,496 $    163,512
    
Additional information   
Equity per Share$         6.72 $        6.67
    

Comparative statements of operations (in thousands – unaudited):

 
 13 Weeks Ended 26 Weeks Ended
          
 August 29,
2021
  August 30,
2020
  May 30,
2021
  August 29,
2021
  August 30,
2020
                   
Net Sales$       13,618   $         9,250   $     13,594   $       27,212   $       21,463 
                   
Cost of Sales9,207   6,612   8,122   17,329   15,151 
                   
Gross Profit4,411   2,638   5,472   9,883   6,312 
% of net sales32.4%  28.5%  40.3%  36.3%  29.4%
                   
Selling, General & Administrative Expenses1,488   1,552   1,648   3,136   3,182 
% of net sales10.9%  16.8%  12.1%  11.5%  14.8%
                   
Restructuring Charges170   -   14   184   - 
% of net sales1.2%  0.0%  0.1%  0.7%  0.0%
                   
Earnings from Continuing Operations2,753   1,086   3,810   6,563   3,130 
                   
Interest and Other Income:                  
Interest Income89   525   117   206   1,181 
                   
Earnings from Continuing Operations before Income Taxes2,842   1,611   3,927   6,769   4,311 
                   
Income Tax Provision820   460   1,182   2,002   1,188 
                   
Net Earnings from Continuing Operations2,022   1,151   2,745   4,767   3,123 
% of net sales14.8%  12.4%  20.2%  17.5%  14.6%
                   
Loss from Discontinued Operations, Net of Tax-   (197)  -   -   (212)
                   
Net Earnings$         2,022   $           954   $       2,745   $         4,767   $         2,911 
% of net sales14.8%  10.3%  20.2%  17.5%  13.6%
                   


Reconciliation of non-GAAP financial measures (in thousands – unaudited):

 
 13 Weeks Ended
August 29, 2021
  13 Weeks Ended
August 30, 2020
  13 Weeks Ended
May 30, 2021
 GAAP  Specials Items  Before Special Items   GAAP  Specials Items Before Special Items   GAAP  Specials Items  Before Special Items 
                            
Restructuring Charges170  (170) -   -  - -   14  (14) - 
% of net sales1.2%    0.0%  0.0%   0.0%  0.1%    0.0%
                            
Earnings from Continuing Operations2,753  170  2,923   1,086  - 1,086   3,810  14  3,824 
% of net sales20.2%    21.5%  11.7%   11.7%  28.0%    28.1%
                            
Interest Income89  -  89   525  - 525   117  -  117 
% of net sales0.7%    0.7%  5.7%   5.7%  0.9%    0.9%
                            
Earnings from Continuing Operations
  before Income Taxes
2,842  170  3,012   1,611  - 1,611   3,927  14  3,941 
% of net sales20.9%    22.1%  17.4%   17.4%  28.9%    29.0%
                            
Income Tax Provision820  -  820   460  - 460   1,182  -  1,182 
Effective Tax Rate28.9%    27.2%  28.6%   28.6%  30.1%    30.0%
                            
Net Earnings from Continuing Operations2,022  170  2,192   1,151  - 1,151   2,745  14  2,759 
% of net sales14.8%    16.1%  12.4%   12.4%  20.2%    20.3%
                            
Loss from Discontinued Operations-     -   (197)   (197)  -  -  - 
% of net sales0.0%    0.0%  -2.1%    -2.1%   0.0%    0.0%
                            
Net Earnings2,022  170  2,192   954  - 954   2,745  14  2,759 
% of net sales14.8%    16.1%  10.3%   10.3%  20.2%    20.3%
                            
                            
Net Earnings      2,192        954         2,759 
Addback Discontinued Operations and non-cash expenses:                           
Loss from Discontinued Operations      -        197         - 
Income Tax Provision      820        460         1,182 
Interest Income      (89)       (525)        (117)
Depreciation      235        282         216 
Stock Option Expense      74        50         64 
Adjusted EBITDA      3,232        1,418         4,104 
 

Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited):

 
 26 Weeks Ended
August 29, 2021
  26 Weeks Ended
August 30, 2020
 
 GAAP  Specials Items  Before
Special
Items
   GAAP  Specials Items Before
Special
Items
 
Restructuring Charge184  (184) -   -  - - 
% of net sales0.7%    0.0%  0.0%   0.0%
                  
Earnings from Continuing Operations6,563  184  6,747   3,130  - 3,130 
% of net sales24.1%    24.8%  14.6%   14.6%
                  
Interest Income206  -  206   1,181  - 1,181 
% of net sales0.8%    0.8%  5.5%   5.5%
                  
Earnings from Continuing Operations before Income Taxes6,769  184  6,953   4,311  - 4,311 
% of net sales24.9%    25.6%  20.1%   20.1%
                  
Income Tax Provision2,002  -  2,002   1,188  - 1,188 
Effective Tax Rate29.6%    28.8%  27.6%   27.6%
                  
Net Earnings from Continuing Operations4,767  184  4,951   3,123  - 3,123 
% of net sales17.5%    18.2%  14.6%   14.6%
                  
Loss from Discontinued Operations-  -  -   (212) - (212)
% of net sales0.0%    0.0%  -1.0%    -1.0% 
                  
Net Earnings4,767  184  4,951   2,911  - 2,911 
% of net sales17.5%    18.2%  13.6%   13.6%
                  
                  
Net Earnings      4,951        2,911 
Addback Discontinued Operations and non-cash expenses:                 
Loss from Discontinued Operations      -        212 
Income Tax Provision      2,002        1,188 
Interest Income      (206)       (1,181)
Depreciation      451        559 
Stock Option Expense      138        93 
Adjusted EBITDA      7,336        3,782 


Contact:
Donna D’Amico-Annitto
486 North Oliver Road, Bldg. Z
Newton, Kansas 67114
(316) 283-6500


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Park Aerospace Corp. Reports Second Quarter Results

8 October 2020

NEWTON, Kan., Oct. 08, 2020 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2021 fiscal year second quarter ended August 30, 2020. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, current costs relating to the sale of the Electronics Business are reported as discontinued operations. Continuing operations discussed below refer to Park’s Aerospace Business unless otherwise indicated.

The Company will conduct a conference call to discuss its financial results and other matters at 11:00 a.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/2ozuh39n at 11:00 a.m. EDT today. The presentation materials will also be available at approximately 9:00 a.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page.

Continuing Operations:

Park reported net sales of $9,250,000 for the 2021 fiscal year second quarter ended August 30, 2020 compared to $13,723,000 for the 2019 fiscal year second quarter ended September 1, 2019 and $12,213,000 for the 2021 fiscal year first quarter ended May 31, 2020. Park’s net sales from continuing operations for the six months ended August 30, 2020 were $21,463,000 compared to $28,673,000 for the six months ended September 1, 2019. Net earnings from continuing operations for the 2021 fiscal year second quarter were $1,151,000 compared to $2,052,000 for the 2020 fiscal year second quarter and $1,972,000 for the 2021 fiscal year first quarter. Net earnings from continuing operations were $3,123,000 for the current year’s first six months compared to $4,766,000 for last year’s first six months.

EBITDA from continuing operations for the 2021 fiscal year second quarter was $1,418,000 compared to $2,406,000 for the 2020 fiscal year second quarter and $2,364,000 for the 2021 fiscal year first quarter.

For the six months ended August 30, 2020, Park reported net earnings from continuing operations before special items of $3,123,000 compared to $4,910,000 for last fiscal year’s first six months. In the 2020 fiscal year’s first six months, the Company recorded a one-time tax charge of $144,000 for the write down of deferred tax assets for stock option expirations pertaining to employees who transferred to AGC Inc. in connection with the sale of the Electronics Business. EBITDA from continuing operations for the current year’s first six months was $3,782,000 compared to $5,779,000 for last year’s first six months.

Park reported basic and diluted earnings per share from continuing operations of $0.06 for the 2021 fiscal year second quarter compared to $0.10 for the 2020 fiscal year second quarter and $0.10 for the 2021 fiscal year first quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.15 for the 2021 fiscal year’s first six months compared to $0.23 for the 2020 fiscal year’s first six months. Basic and diluted earnings per share from continuing operations before special items were $0.15 for the 2021 fiscal year’s first six months compared to $0.24 for the 2020 fiscal year’s first six months.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries. The required passcode for attendance by phone is 8867788.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Wednesday, October 14, 2020. The conference call replay will be available at https://edge.media-server.com/mmc/p/2ozuh39n and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page. It can also be accessed by dialing (855) 859-2056 in the United States and Canada, and (404) 537-3406 in other countries. The required passcode for accessing the replay by phone is 8867788.

Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's web site at https://parkaerospace.com/shareholders/investor-conference-calls/.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as one-time tax charge and EBITDA. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including EBITDA, and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. These materials include lightning strike protection materials. Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park’s objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up.  

Additional corporate information is available on the Company’s web site at www.parkaerospace.com

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

              
 13 Weeks Ended 26 Weeks Ended 
        
 August 30, 2020  September 1, 2019  May 31, 2020 August 30, 2020  September 1, 2019 
Sales$9,250   $13,723  $12,213  $21,463   $28,673  
              
Net Earnings before Special Items1$1,151   $2,052  $1,972  $3,123   $4,910  
Special Items, Net of Tax:             
Tax Impact of Cancelled Stock Options -    -   -      (144) 
Net Earnings from Continuing Operations$1,151   $2,052  $1,972  $3,123   $4,766  
              
(Loss) Earnings from Discontinued Operations, Net of Tax$(197)  $83  $(15) $(212)  $(44) 
              
Net Earnings$954   $2,135  $1,957  $2,911   $4,722  
              
Basic Earnings per Share:             
Basic Earnings before Special Items1$0.06   $0.10  $0.10  $0.15   $0.24  
Special Items:             
Tax Impact of Cancelled Stock Options -    -   -   -    (0.01) 
Basic Earnings per Share from Continuing Operations$0.06   $0.10  $0.10  $0.15   $0.23  
              
Basic Loss per Share from Discontinued Operations (0.01)   -   -   (0.01)   -  
              
Basic Earnings per Share$0.05   $0.10  $0.10  $0.14   $0.23  
              
              
              
Diluted Earnings before Special Items1$0.06   $0.10  $0.10  $0.15   $0.24  
Special Items:             
Tax Impact of Cancelled Stock Options -    -   -   -    (0.01) 
Diluted Earnings per Share from Continuing Operations$0.06   $0.10  $0.10  $0.15   $0.23  
              
Diluted Loss per Share from Discontinued Operations (0.01)   -   -   (0.01)   -  
              
Diluted Earnings per Share$0.05   $0.10  $0.10  $0.14   $0.23  
              
Weighted Average Shares Outstanding:             
Basic 20,381    20,499   20,402   20,392    20,495  
Diluted 20,433    20,601   20,460   20,447    20,593  
              
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items. 
 


Comparative balance sheets (in thousands):

 August 30, 2020 March 1, 2020 
Assets(unaudited)   
Current Assets    
Cash and Marketable Securities$118,690 $122,355 
Accounts Receivable, Net 7,270  10,925 
Inventories 5,103  6,379 
Prepaid Expenses and Other Current Assets 3,783  5,535 
Total Current Assets 134,846  145,194 
     
Fixed Assets, Net 19,479  16,100 
Operating Right-of-use Assets 341  420 
Other Assets 10,057  10,072 
Total Assets$164,723 $171,786 
     
Liabilities and Shareholders' Equity    
Current Liabilities    
Accounts Payable$1,899 $4,735 
Accrued Liabilities 1,408  1,709 
Operating Lease Liability 132  152 
Income Taxes Payable 2,641  2,111 
Total Current Liabilities 6,080  8,707 
     
Long-term Operating Lease Liability 221  268 
Non-current Income Taxes Payable 14,303  15,986 
Deferred Income Taxes 738  834 
Other Liabilities 4,421  4,316 
Total Liabilities 25,763  30,111 
     
Shareholders’ Equity 138,960  141,675 
     
Total Liabilities and Shareholders' Equity$164,723 $171,786 
     
Additional information    
Equity per Share$ 6.82 $ 6.90 
     

 

 Comparative statements of operations (in thousands – unaudited):

               
 13 Weeks Ended  26 Weeks Ended 
               
 August 30, 2020  September 1, 2019  May 31, 2020  August 30, 2020  September 1, 2019 
               
Net Sales$9,250   $13,723   $12,213   $21,463   $28,673  
               
Cost of Sales 6,612    9,910    8,539    15,151    20,056  
               
Gross Profit 2,638    3,813    3,674    6,312    8,617  
% of net sales 28.5%    27.8%    30.1%    29.4%    30.1%  
               
Selling, General & Administrative Expenses 1,552    1,914    1,630    3,182    3,836  
% of net sales 16.8%    13.9%    13.3%    14.8%    13.4%  
               
Earnings from Continuing Operations 1,086    1,899    2,044    3,130    4,781  
               
Interest and Other Income:              
Interest Income 525    863    656    1,181    1,811  
% of net sales 5.7%    6.3%    5.4%    5.5%    6.3%  
               
Earnings from Continuing Operations before Income Taxes 1,611    2,762    2,700    4,311    6,592  
               
Income Tax Provision 460    710    728    1,188    1,826  
               
Net Earnings from Continuing Operations 1,151    2,052    1,972    3,123    4,766  
% of net sales 12.4%    15.0%    16.1%    14.6%    16.6%  
               
(Loss) Earnings from Discontinued Operations, Net of Tax (197)   83    (15)   (212)   (44) 
               
Net Earnings$954   $2,135   $1,957   $2,911   $4,722  
% of net sales 10.3%    15.6%    16.0%    13.6%    16.5%  
               


Reconciliation of non-GAAP financial measures (in thousands – unaudited):

                     
                     
 13 Weeks Ended August 30, 2020  13 Weeks Ended September 1, 2019  13 Weeks Ended May 31, 2020 
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items 
                     
Earnings from Continuing Operations1,086  - 1,086   1,899  - 1,899   2,044  - 2,044  
% of net sales11.7%    11.7%   13.8%    13.8%   16.7%    16.7%  
                     
Interest Income525  - 525   863  - 863   656  - 656  
% of net sales5.7%    5.7%   6.3%    6.3%   5.4%    5.4%  
                     
Earnings from Continuing Operations before Income Taxes1,611  - 1,611   2,762  - 2,762   2,700  - 2,700  
% of net sales17.4%    17.4%   20.1%    20.1%   22.1%    22.1%  
                     
Income Tax Provision460  - 460   710  - 710   728  - 728  
Effective Tax Rate28.6%    28.6%   25.7%    25.7%   27.0%    27.0%  
                     
Net Earnings from Continuing Operations1,151  - 1,151   2,052  - 2,052   1,972  - 1,972  
% of net sales12.4%    12.4%   15.0%    15.0%   16.1%    16.1%  
                     
(Loss) Earnings from Discontinued Operations(197)   (197)  83    83   (15) - (15) 
% of net sales-2.1%    -2.1%   0.6%    0.6%   -0.1%    -0.1%  
                     
Net Earnings954  - 954   2,135  - 2,135   1,957  - 1,957  
% of net sales10.3%    10.3%   15.6%    15.6%   16.0%    16.0%  
                     
                     
Earnings from Continuing Operations    1,086       1,899       2,044  
Addback non-cash expenses:                    
Depreciation    282       366       277  
Stock Option Expense    50       141       43  
EBITDA    1,418       2,406       2,364  
                     
                     
Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited):                     
                     
 26 Weeks Ended August 30, 2020  26 Weeks Ended September 1, 2019        
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items        
Earnings from Continuing Operations3,130  - 3,130   4,781  - 4,781         
% of net sales14.6%    14.6%   16.7%    16.7%         
                     
Interest Income1,181    1,181   1,811  - 1,811         
% of net sales5.5%    5.5%   6.3%    6.3%         
                     
Earnings from Continuing Operations before Income Taxes4,311  - 4,311   6,592  - 6,592         
% of net sales20.1%    20.1%   23.0%    23.0%         
                     
Income Tax Provision1,188  - 1,188   1,826  (144) 1,682         
Effective Tax Rate27.6%    27.6%   27.7%    25.5%         
                     
Net Earnings from Continuing Operations3,123  - 3,123   4,766  144 4,910         
% of net sales14.6%    14.6%   16.6%    17.1%         
                     
Loss from Discontinued Operations(212) - (212)  (44) - (44)        
% of net sales-1.0%    -1.0%   -0.2%    -0.2%         
                     
Net Earnings2,911  - 2,911   4,722  144 4,866         
% of net sales13.6%    13.6%   16.5%    17.0%         
                     
                     
Earnings from Operations    3,130       4,781         
Addback non-cash expenses:                    
Depreciation    559       733         
Stock Option Expense    93       265         
EBITDA    3,782       5,779         


Contact:
Donna D’Amico-Annitto
486 North Oliver Road, Bldg. Z
Newton, Kansas 67114
(316) 283-6500

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Park Aerospace Corp. Reports Second Quarter Results

10 October 2019

MELVILLE, N.Y., Oct. 10, 2019 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2020 fiscal year second quarter ended September 1, 2019. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, the results of operations for the Electronics Business in the prior year are reported as discontinued operations. Continuing operations discussed below refer to Park’s Aerospace Business unless otherwise indicated, and prior periods in such discussion have been restated to reflect results excluding the Electronics Business.

A live audio webcast, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/ycr9hepo at 11:00 a.m. EDT on Thursday, October 10, 2019. The presentation materials will also be available at approximately 9:00 a.m. EDT on Thursday, October 10, 2019 at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page.

Continuing Operations:

Park reported net sales of $13,723,000 for the 2020 fiscal year second quarter ended September 1, 2019 compared to $11,211,000 for the 2019 fiscal year second quarter ended August 26, 2018 and $14,950,000 for the 2020 fiscal year first quarter ended June 2, 2019.  Park’s net sales from continuing operations for the six months ended September 1, 2019 were $28,673,000 compared to $21,604,000 for the six months ended August 26, 2018. Net earnings from continuing operations for the 2020 fiscal year second quarter were $2,052,000 compared to $1,824,000 for the 2019 fiscal year second quarter and $2,714,000 for the 2020 fiscal year first quarter. Net earnings from continuing operations were $4,766,000 for the current year’s first six months compared to $2,640,000 for last year’s first six months.

Park reported net earnings from continuing operations before special items of $2,052,000 for the 2020 fiscal year second quarter compared to $1,036,000 for the 2019 fiscal year second quarter and $2,858,000 for the 2020 fiscal year first quarter. In the 2019 fiscal year second quarter, the Company recorded a one-time tax benefit of $788,000 related to the Tax Cuts and Jobs Act enacted in December 2017. EBITDA from continuing operations for the 2020 fiscal year second quarter was $2,406,000 compared to $1,663,000 for the 2019 fiscal year second quarter and $3,372,000 for the 2020 fiscal year first quarter.

For the six months ended September 1, 2019, Park reported net earnings from continuing operations before special items of $4,910,000 compared to $1,852,000 for last fiscal year’s first six months.  In the 2020 fiscal year’s first six months, the Company recorded a one-time tax charge of $144,000 for the write down of deferred tax assets for stock option expirations pertaining to employees who transferred to AGC Inc. in connection with the sale of the electronics business. The 2019 fiscal year’s first six months included the one-time tax benefit of $788,000 mentioned above. EBITDA from continuing operations for the current year’s first six months was $5,779,000 compared to $3,045,000 for last year’s first six months.

Park reported basic and diluted earnings per share from continuing operations of $0.10 for the 2020 fiscal year second quarter compared to $0.09 for the 2019 fiscal year second quarter and $0.13 for the 2020 fiscal year first quarter. Basic and diluted earnings per share from continuing operations before special items were $0.10 for the 2020 fiscal year second quarter compared to $0.05 for the 2019 fiscal year second quarter and $0.14 for the 2020 fiscal year first quarter. 

Park reported basic and diluted earnings per share from continuing operations of $0.23 for the 2020 fiscal year’s first six months compared to $0.13 for the 2019 fiscal year’s first six months. Basic and diluted earnings per share from continuing operations before special items were $0.24 for the 2020 fiscal year’s first six months compared to $0.09 for 2019 fiscal year’s first six months. 

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today.  Forward-looking and other material information may be discussed in this conference call.  The conference call dial-in number is (844) 466-4114 in the United States and Canada and (765) 507-2654 in other countries and the required passcode is 8780956.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Wednesday, October 16, 2019.  The conference call replay can be accessed by dialing (855) 859-2056 in the United States and Canada and (404) 537-3406 in other countries and entering passcode 8780956 or on the Company's web site at www.parkaerospace.com/investor/investor.html.

Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's web site at www.parkaerospace.com/investor/investor.html.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as one-time tax charges and EBITDA. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures including EBITDA and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Aerospace Corp. is an Aerospace Company which develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets.  Park’s advanced composite materials include film adhesives (undergoing qualification) and lightning strike materials.  Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications.  Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft.  Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications.  As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry.  Target markets for Park’s composite parts and structures (which include Park’s proprietary composite Sigma Strut and Alpha Strut product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft.  Park’s objective is to do what others are either unwilling or unable to do.  When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up. 

Additional corporate information is available on the Company’s web site at www.parkaerospace.com.

Performance table, including non-GAAP information (in thousands, except per share amounts – unaudited):

 13 Weeks Ended 26 Weeks Ended
       
 September 1, 2019  August 26, 2018  June 2, 2019 September 1, 2019  August 26, 2018
Sales$13,723  $11,211  $14,950  $28,673   $21,604
             
Net Earnings before Special Items1$2,052  $1,036  $2,858  $4,910   $1,852
Special Items, Net of Tax:            
Tax Impact of Cancelled Stock Options -   -   (144)  (144)   -
Tax Cuts and Jobs Act -   788   -   -    788
Net Earnings from Continuing Operations$2,052  $1,824  $2,714  $4,766   $2,640
             
Earnings (Loss) from Discontinued Operations, Net of Tax$83  $876  $(127) $(44)  $3,228
             
Net Earnings$2,135  $2,700  $2,587  $4,722   $5,868
             
Basic Earnings per Share:            
Basic Earnings before Special Items1$0.10  $0.05  $0.14  $0.24   $0.09
Special Items:            
Tax Impact of Cancelled Stock Options -   -   (0.01)  (0.01)   -
Tax Cuts and Jobs Act -   0.04   -   -    0.04
Basic Earnings per Share from Continuing Operations$0.10  $0.09  $0.13  $0.23   $0.13
             
Basic Earnings per Share from Discontinued Operations -   0.04   -   -    0.16
             
Basic Earnings per Share$0.10  $0.13  $0.13  $0.23   $0.29
             
             
             
Diluted Earnings before Special Items1$0.10  $0.05  $0.14  $0.24   $0.09
Special Items:            
Tax Impact of Cancelled Stock Options -   -   (0.01)  (0.01)   -
Tax Cuts and Jobs Act -   0.04   -   -    0.04
Diluted Earnings per Share from Continuing Operations$0.10  $0.09  $0.13  $0.23   $0.13
             
Diluted Earnings per Share from Discontinued Operations -   0.04   -   -    0.16
             
Diluted Earnings per Share$0.10  $0.13  $0.13  $0.23   $0.29
             
Weighted Average Shares Outstanding:            
Basic 20,499   20,253   20,492   20,495    20,248
Diluted 20,601   20,382   20,588   20,593    20,339
             

1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

Comparative balance sheets (in thousands):

 September 1, 2019 March 3, 2019
Assets(unaudited)  
Current Assets   
Cash and Marketable Securities$145,355 $151,624
Accounts Receivable, Net 8,855  9,352
Inventories 4,626  5,267
Prepaid Expenses and Other Current Assets 1,913  1,690
Total Current Assets 160,749  167,933
    
Fixed Assets, Net 12,311  10,791
Operating Right-of-use Assets 373  -
Other Assets 10,096  10,127
Total Assets$183,529 $188,851
    
Liabilities and Shareholders' Equity   
Current Liabilities   
Accounts Payable$1,819 $3,169
Accrued Liabilities 1,952  2,920
Income Taxes Payable 1,481  5,066
Operating Lease Liability 109  -
Total Current Liabilities 5,361  11,155
    
Long-term Operating Lease Liability 264  -
Non-current Income Taxes Payable 15,986  17,669
Deferred Income Taxes 65  -
Other Liabilities 1,050  1,016
Total Liabilities 22,726  29,840
    
Shareholders’ Equity 160,803  159,011
    
Total Liabilities and Shareholders' Equity$183,529 $188,851
    
Additional information   
Equity per Share$  7.84  $  7.84
      

Comparative statements of operations (in thousands – unaudited):

 13 Weeks Ended  26 Weeks Ended
              
 September 1, 2019  August 26, 2018  June 2, 2019  September 1, 2019  August 26, 2018
              
Net Sales$  13,723   $  11,211   $  14,950   $  28,673   $  21,604 
              
Cost of Sales   9,910      8,066      10,146      20,056      15,607 
              
Gross Profit   3,813      3,145      4,804      8,617      5,997 
% of net sales 27.8%   28.1%   32.1%   30.1%   27.8%
              
Selling, General & Administrative Expenses   1,914      2,116      1,922      3,836      4,217 
% of net sales 13.9%   18.9%   12.9%   13.4%   19.5%
              
Earnings from Continuing Operations   1,899      1,029      2,882      4,781      1,780 
              
Interest and Other Income:             
Interest Income   863      357      948      1,811      697 
              
Earnings from Continuing Operations before Income Taxes   2,762      1,386      3,830      6,592      2,477 
              
Income Tax Provision (Benefit)   710      (438)     1,116      1,826      (163)
              
Net Earnings from Continuing Operations   2,052      1,824      2,714      4,766      2,640 
% of net sales 15.0%   16.3%   18.2%   16.6%   12.2%
              
Earnings (Loss) from Discontinued Operations, Net of Tax   83      876      (127)     (44)     3,228 
              
Net Earnings$  2,135   $  2,700   $  2,587   $  4,722   $  5,868 
% of net sales 15.6%   24.1%   17.3%   16.5%   27.2%
                        

Reconciliation of non-GAAP financial measures (in thousands – unaudited):

 13 Weeks Ended
September 1, 2019
  13 Weeks Ended
August 26, 2018
  13 Weeks Ended
June 2, 2019
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
                    
Selling, General & Administrative Expenses$1,914   $- $1,914   $2,116  $-  $2,116   $1,922  $-  $1,922 
% of net sales 13.9%    13.9%   18.9%    18.9%   12.9%    12.9%
                    
Earnings from Continuing Operations 1,899   -  1,899    1,029   -   1,029    2,882   -   2,882 
% of net sales 13.8%    13.8%   9.2%    9.2%   19.3%    19.3%
                    
Interest Income 863   -  863    357   -   357    948   -   948 
% of net sales 6.3%    6.3%   3.2%    3.2%   6.3%    6.3%
                    
Net Interest and Other Income 863   -  863    357   -   357    948   -   948 
% of net sales 6.3%    6.3%   3.2%    3.2%   6.3%    6.3%
                    
Earnings from Continuing Operations before Income Taxes 2,762   -  2,762    1,386   -   1,386    3,830   -   3,830 
% of net sales 20.1%    20.1%   12.4%    12.4%   25.6%    25.6%
                    
Income Tax Provision 710   -  710    (438)  788   350    1,116   (144)  972 
Effective Tax Rate 25.7%    25.7%   -31.6%    25.3%   29.1%    25.4%
                    
Net Earnings from Continuing Operations 2,052   -  2,052    1,824   (788)  1,036    2,714   144   2,858 
% of net sales 15.0%    15.0%   16.3%    9.2%   18.2%    19.1%
                    
Earnings (Loss) from Discontinued Operations 83     83    876     876    (127)  -   (127)
% of net sales 0.6%    0.6%   7.8%    7.8%   -0.8%    -0.8%
                    
Net Earnings 2,135   -  2,135    2,700   (788)  1,912    2,587   144   2,731 
% of net sales 15.6%    15.6%   24.1%    17.1%   17.3%    18.3%
                    
                    
Earnings from Continuing Operations     1,899        1,029        2,882 
Addback non-cash expenses:                   
Depreciation     366        435        366 
Stock Option Expense     141        199        124 
EBITDA     2,406        1,663        3,372 
                          

Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited):

 26 Weeks Ended
September 1, 2019
  26 Weeks Ended
August 26, 2018
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
Earnings from Operations4,781  -  4,781   1,780  -  1,780 
% of net sales16.7%   16.7%  8.2%   8.2%
             
Interest Income1,811    1,811   697  -  697 
% of net sales6.3%   6.3%  3.2%   3.2%
             
Interest Expense-  -  -   -  -  - 
% of net sales0.0%   0.0%  0.0%   0.0%
             
Net Interest and Other Income1,811  -  1,811   697  -  697 
% of net sales6.3%   6.3%  3.2%   3.2%
             
Earnings before Income Taxes6,592  -  6,592   2,477  -  2,477 
% of net sales23.0%   23.0%  11.5%   11.5%
             
Income Tax Provision (Benefit)1,826  (144) 1,682   (163) 788  625 
Effective Tax Rate27.7%   25.5%  -6.6%   25.2%
             
Net Earnings from continuing operations4,766  144  4,910   2,640  (788) 1,852 
% of net sales16.6%   17.1%  12.2%   8.6%
             
(Loss) Earnings from discontinued operations(44) -  (44)  3,228  -  3,228 
% of net sales-0.2%   -0.2%  14.9%   14.9%
             
Net Earnings4,722  144  4,866   5,868  (788) 5,080 
% of net sales16.5%   17.0%  27.2%   23.5%
             
             
Earnings from Operations    4,781       1,780 
Addback non-cash expenses:            
Depreciation    733       865 
Stock Option Expense    265       400 
EBITDA    5,779       3,045 
               


Contact:   Donna D'Amico-Annitto                     486 North Oliver Road, Bldg. Z
Newton, Kansas 67114
(316) 283-6500
     

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