Park Aerospace Corp. Reports Second Quarter Results
10/07/2021 - 06:30 AM
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: Basic 20,397 20,381 20,383 20,390 20,392 Diluted 20,485 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, Net 8,481 7,633 Inventories 4,821 4,794 Prepaid Expenses and Other Current Assets 3,122 3,372 Total Current Assets 129,266 132,341 Fixed Assets, Net 23,212 21,130 Operating Right-of-use Assets 76 103 Other Assets 9,942 9,938 Total Assets $ 162,496 $ 163,512 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 2,515 $ 3,300 Accrued Liabilities 1,395 1,708 Operating Lease Liability 8 33 Income Taxes Payable 3,002 2,952 Total Current Liabilities 6,920 7,993 Long-term Operating Lease Liability 89 86 Non-current Income Taxes Payable 12,623 14,303 Deferred Income Taxes 1,168 778 Other Liabilities 4,478 4,411 Total Liabilities 25,278 27,571 Shareholders’ Equity 137,218 135,941 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 Sales 9,207 6,612 8,122 17,329 15,151 Gross Profit 4,411 2,638 5,472 9,883 6,312 % of net sales 32.4 % 28.5 % 40.3 % 36.3 % 29.4 % Selling, General & Administrative Expenses 1,488 1,552 1,648 3,136 3,182 % of net sales 10.9 % 16.8 % 12.1 % 11.5 % 14.8 % Restructuring Charges 170 - 14 184 - % of net sales 1.2 % 0.0 % 0.1 % 0.7 % 0.0 % Earnings from Continuing Operations 2,753 1,086 3,810 6,563 3,130 Interest and Other Income: Interest Income 89 525 117 206 1,181 Earnings from Continuing Operations before Income Taxes 2,842 1,611 3,927 6,769 4,311 Income Tax Provision 820 460 1,182 2,002 1,188 Net Earnings from Continuing Operations 2,022 1,151 2,745 4,767 3,123 % of net sales 14.8 % 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 sales 14.8 % 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 Charges 170 (170 ) - - - - 14 (14 ) - % of net sales 1.2 % 0.0 % 0.0 % 0.0 % 0.1 % 0.0 % Earnings from Continuing Operations 2,753 170 2,923 1,086 - 1,086 3,810 14 3,824 % of net sales 20.2 % 21.5 % 11.7 % 11.7 % 28.0 % 28.1 % Interest Income 89 - 89 525 - 525 117 - 117 % of net sales 0.7 % 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 sales 20.9 % 22.1 % 17.4 % 17.4 % 28.9 % 29.0 % Income Tax Provision 820 - 820 460 - 460 1,182 - 1,182 Effective Tax Rate 28.9 % 27.2 % 28.6 % 28.6 % 30.1 % 30.0 % Net Earnings from Continuing Operations 2,022 170 2,192 1,151 - 1,151 2,745 14 2,759 % of net sales 14.8 % 16.1 % 12.4 % 12.4 % 20.2 % 20.3 % Loss from Discontinued Operations - - (197 ) (197 ) - - - % of net sales 0.0 % 0.0 % -2.1% -2.1% 0.0 % 0.0 % Net Earnings 2,022 170 2,192 954 - 954 2,745 14 2,759 % of net sales 14.8 % 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 Charge 184 (184 ) - - - - % of net sales 0.7 % 0.0 % 0.0 % 0.0 % Earnings from Continuing Operations 6,563 184 6,747 3,130 - 3,130 % of net sales 24.1 % 24.8 % 14.6 % 14.6 % Interest Income 206 - 206 1,181 - 1,181 % of net sales 0.8 % 0.8 % 5.5 % 5.5 % Earnings from Continuing Operations before Income Taxes 6,769 184 6,953 4,311 - 4,311 % of net sales 24.9 % 25.6 % 20.1 % 20.1 % Income Tax Provision 2,002 - 2,002 1,188 - 1,188 Effective Tax Rate 29.6 % 28.8 % 27.6 % 27.6 % Net Earnings from Continuing Operations 4,767 184 4,951 3,123 - 3,123 % of net sales 17.5 % 18.2 % 14.6 % 14.6 % Loss from Discontinued Operations - - - (212 ) - (212 ) % of net sales 0.0 % 0.0 % -1.0% -1.0% Net Earnings 4,767 184 4,951 2,911 - 2,911 % of net sales 17.5 % 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