Park Aerospace Corp. Reports Fourth Quarter And Fiscal Year Results
05/12/2022 - 06:30 AM
NEWTON, Kan., May 12, 2022 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year fourth quarter and year ended February 27, 2022. 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/9mg76pan 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 from continuing operations of $12,502,000 for the 2022 fiscal year fourth quarter ended February 27, 2022 compared to $14,441,000 for the 2021 fiscal year fourth quarter ended February 28, 2021 and $13,864,000 for the 2022 fiscal year third quarter ended August 29, 2021. Park’s net sales from continuing operations for the fiscal year ended February 27, 2022 were $53,578,000 compared to $46,276,000 for the fiscal year ended February 28, 2021. Net earnings from continuing operations for the 2022 fiscal year fourth quarter were $1,956,000 compared to $1,032,000 for the 2021 fiscal year fourth quarter and $1,741,000 for the 2022 fiscal year third quarter. Net earnings from continuing operations were $8,464,000 for the current year compared to $5,192,000 for last fiscal year.
Net earnings from continuing operations before special items for the 2022 fiscal year fourth quarter were $2,018,000 compared to $2,335,000 for the 2021 fiscal year fourth quarter and $1,754,000 for the 2022 fiscal year third quarter. Net earnings from continuing operations before special items for the fiscal year ended February 27, 2022 were $8,723,000 compared to $6,495,000 for last fiscal year.
Adjusted EBITDA from continuing operations for the 2022 fiscal year fourth quarter was $3,083,000 compared to $3,257,000 for the 2021 fiscal year fourth quarter and $2,670,000 for the 2022 fiscal year third quarter. Adjusted EBITDA from continuing operations for the 2022 fiscal year was $13,089,000 compared to $8,419,000 for the prior fiscal year.
The Company recorded pretax restructuring charges of $62,000 in the 2022 fiscal year fourth quarter and $13,000 in the 2022 fiscal year third quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd. idle facility in Singapore. In the 2021 fiscal year fourth quarter, the Company recorded a pretax restructuring charge of $1,570,000 primarily for the impairment of assets at its Park Aerospace Technologies Asia Pte. Ltd facility in Singapore.
Park reported basic and diluted earnings per share from continuing operations of $0.10 for the 2022 fiscal year fourth quarter compared to basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year fourth quarter and basic earnings per share from continuing operations of $0.09 and diluted earnings per share from continuing operations of $0.08 for the 2022 fiscal year third quarter. Basic and diluted earnings per share from continuing operations before special items were $0.10 for the 2022 fiscal fourth quarter compared to $0.11 for the 2021 fiscal year fourth quarter and $0.09 for the 2022 fiscal year third quarter.
Park reported basic and diluted earnings per share from continuing operations of $0.41 for the 2022 fiscal year compared to $0.25 for the 2021 fiscal year. Basic earnings per share from continuing operations before special items were $0.43 and diluted earnings per share from continuing operations before special items were $0.42 for the 2022 fiscal year compared to basic and diluted earnings per share from continuing operations before special items of $0.32 for the 2021 fiscal year.
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 (800) 799-7117 in the United States and Canada, and (213) 217-9330 in other countries. The required passcode for attendance by phone is 2749196.
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, May 18, 2022. The conference call replay will be available at https://edge.media-server.com/mmc/p/9mg76pan 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 2749196.
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 ongoing, 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 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 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 52 Weeks Ended February 27, 2022 February 28, 2021 November 28, 2021 February 27, 2022 February 28, 2021 Sales $ 12,502 $ 14,441 $ 13,864 $ 53,578 $ 46,276 Net Earnings before Special Items1 $ 2,018 $ 2,335 $ 1,754 $ 8,723 $ 6,495 Special Items, Net of Tax: Restructuring Charges (62 ) (1,303 ) (13 ) (259 ) (1,303 ) Net Earnings from Continuing Operations $ 1,956 $ 1,032 $ 1,741 $ 8,464 $ 5,192 Loss from Discontinued Operations, Net of Tax $ - $ - $ - $ - $ (328 ) Net Earnings $ 1,956 $ 1,032 $ 1,741 $ 8,464 $ 4,864 Basic Earnings per Share: Basic Earnings before Special Items1 $ 0.10 $ 0.11 $ 0.09 $ 0.43 $ 0.32 Special Items: Restructuring Charges - (0.06 ) - (0.02 ) (0.07 ) Basic Earnings per Share from Continuing Operations $ 0.10 $ 0.05 $ 0.09 $ 0.41 $ 0.25 Basic Loss per Share from Discontinued Operations - - - - (0.01 ) Basic Earnings per Share $ 0.10 $ 0.05 $ 0.09 $ 0.41 $ 0.24 Diluted Earnings before Special Items1 $ 0.10 $ 0.11 $ 0.09 $ 0.42 $ 0.32 Special Items: Restructuring Charges - (0.06 ) (0.01 ) (0.01 ) (0.07 ) Diluted Earnings per Share from Continuing Operations $ 0.10 $ 0.05 $ 0.08 $ 0.41 $ 0.25 Diluted Loss per Share from Discontinued Operations - - - - (0.01 ) Diluted Earnings per Share $ 0.10 $ 0.05 $ 0.08 $ 0.41 $ 0.24 Weighted Average Shares Outstanding: Basic 20,458 20,382 20,450 20,422 20,387 Diluted 20,508 20,587 20,503 20,551 20,478 1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.
Comparative balance sheets (in thousands): February 27, 2022 February 28, 2021 Assets (unaudited) Current Assets Cash and Marketable Securities $ 110,361 $ 116,542 Accounts Receivable, Net 8,339 7,633 Inventories 4,657 4,794 Prepaid Expenses and Other Current Assets 3,082 3,372 Total Current Assets 126,439 132,341 Fixed Assets, Net 24,333 21,130 Operating Right-of-use Assets 203 103 Other Assets 9,912 9,938 Total Assets $ 160,887 $ 163,512 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 2,534 $ 3,300 Accrued Liabilities 1,494 1,708 Operating Lease Liability 53 33 Income Taxes Payable 2,211 2,952 Total Current Liabilities 6,292 7,993 Long-term Operating Lease Liability 174 86 Non-current Income Taxes Payable 12,621 14,303 Deferred Income Taxes 1,671 778 Other Liabilities 4,497 4,411 Total Liabilities 25,255 27,571 Shareholders’ Equity 135,632 135,941 Total Liabilities and Shareholders' Equity $ 160,887 $ 163,512 Additional information Equity per Share $ 6.63 $ 6.67
Comparative statements of operations (in thousands – unaudited): 13 Weeks Ended 52 Weeks Ended February 27, 2022 February 28, 2021 November 28, 2021 February 27, 2022 February 28, 2021 Net Sales $ 12,502 $ 14,441 $ 13,864 $ 53,578 $ 46,276 Cost of Sales 8,304 10,115 10,028 35,661 33,085 Gross Profit 4,198 4,326 3,836 17,917 13,191 % of net sales 33.6 % 30.0 % 27.7 % 33.4 % 28.5 % Selling, General & Administrative Expenses 1,520 1,395 1,593 6,249 6,113 % of net sales 12.2 % 9.7 % 11.5 % 11.7 % 13.2 % Restructuring Charges 62 1,570 13 259 1,570 Earnings from Continuing Operations 2,616 1,361 2,230 11,409 5,508 Interest and Other Income: Interest Income 89 207 80 375 1,777 Earnings from Continuing Operations before Income Taxes 2,705 1,568 2,310 11,784 7,285 Income Tax Provision 749 536 569 3,320 2,093 Net Earnings from Continuing Operations 1,956 1,032 1,741 8,464 5,192 % of net sales 15.6 % 7.1 % 12.6 % 15.8 % 11.2 % Loss from Discontinued Operations, Net of Tax - - - - (328 ) Net Earnings $ 1,956 $ 1,032 $ 1,741 $ 8,464 $ 4,864 % of net sales 15.6 % 7.1 % 12.6 % 15.8 % 10.5 %
Reconciliation of non-GAAP financial measures (in thousands – unaudited): 13 Weeks Ended February 27, 2022 13 Weeks Ended February 28, 2021 13 Weeks Ended November 28, 2021 GAAP Specials Items Before Special Items GAAP Specials Items Before Special Items GAAP Specials Items Before Special Items Restructuring Charges 62 (62 ) - 1,570 (1,570 ) - 13 (13 ) - % of net sales 0.5 % 0.0 % 10.9 % 0.0 % 0.1 % 0.0 % Earnings from Continuing Operations 2,616 62 2,678 1,361 1,570 2,931 2,230 13 2,243 % of net sales 20.9 % 21.4 % 9.4 % 20.3 % 16.1 % 16.2 % Interest Income 89 - 89 207 - 207 80 - 80 % of net sales 0.7 % 0.7 % 1.4 % 1.4 % 0.6 % 0.6 % Earnings from Continuing Operations before Income Taxes 2,705 62 2,767 1,568 1,570 3,138 2,310 13 2,323 % of net sales 21.6 % 22.1 % 10.9 % 21.7 % 16.7 % 16.8 % Income Tax Provision 749 - 749 536 267 803 569 - 569 Effective Tax Rate 27.7 % 27.1 % 34.2 % 25.6 % 24.6 % 24.5 % Net Earnings from Continuing Operations 1,956 62 2,018 1,032 1,303 2,335 1,741 13 1,754 % of net sales 15.6 % 16.1 % 7.1 % 16.2 % 12.6 % 12.7 % Loss from Discontinued Operations - - - - - - - % of net sales 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Net Earnings 1,956 62 2,018 1,032 1,303 2,335 1,741 13 1,754 % of net sales 15.6 % 16.1 % 7.1 % 16.2 % 12.6 % 12.7 % Net Earnings 2,018 2,335 1,754 Addback Discontinued Operations and non-cash expenses: Loss from Discontinued Operations - - - Income Tax Provision 749 803 569 Interest Income (89 ) (207 ) (80 ) Depreciation 331 277 354 Stock Option Expense 74 49 73 Adjusted EBITDA from Continuing Operations 3,083 3,257 2,670
Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited): 52 Weeks Ended February 27, 2022 52 Weeks Ended February 28, 2021 GAAP Specials Items Before Special Items GAAP Specials Items Before Special Items Restructuring Charge 259 (259 ) - 1,570 (1,570 ) - % of net sales 0.5 % 0.0 % 3.4 % 0.0 % Earnings from Continuing Operations 11,409 259 11,668 5,508 1,570 7,078 % of net sales 21.3 % 21.8 % 11.9 % 15.3 % Interest Income 375 375 1,777 - 1,777 % of net sales 0.7 % 0.7 % 3.8 % 3.8 % Earnings from Continuing Operations before Income Taxes 11,784 259 12,043 7,285 1,570 8,855 % of net sales 22.0 % 22.5 % 15.7 % 19.1 % Income Tax Provision 3,320 - 3,320 2,093 267 2,360 Effective Tax Rate 28.2 % 27.6 % 28.7 % 26.7 % Net Earnings from Continuing Operations 8,464 259 8,723 5,192 1,303 6,495 % of net sales 15.8 % 16.3 % 11.2 % 14.0 % Loss from Discontinued Operations - - - (328 ) - (328 ) % of net sales 0.0 % 0.0 % -0.7 % -0.7 % Net Earnings 8,464 259 8,723 4,864 1,303 6,167 % of net sales 15.8 % 16.3 % 10.5 % 13.3 % Net Earnings 8,723 6,167 Addback Discontinued Operations and non-cash expenses: Loss from Discontinued Operations - 328 Income Tax Provision 3,320 2,360 Interest Income (375 ) (1,777 ) Depreciation 1,136 1,150 Stock Option Expense 285 191 Adjusted EBITDA from Continuing Operations 13,089 8,419
Contact: Donna D’Amico-Annitto 486 North Oliver Road, Bldg. Z Newton, Kansas 67114 (316) 283-6500