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Park Aerospace Corp. Reports Third Quarter Results

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NEWTON, Kan., Jan. 05, 2023 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2023 fiscal year third quarter ended November 27, 2022. The Company will conduct a conference call to discuss its financial results and other matters at 11:00 a.m. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/tckeyrez at 11:00 a.m. EST today. The presentation materials will also be available at approximately 9:00 a.m. EST 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.

Park reported net sales of $13,867,000 for the 2023 fiscal year third quarter ended November 27, 2022 compared to $13,864,000 for the 2022 fiscal year third quarter ended November 28, 2021 and $13,875,000 for the 2023 fiscal year second quarter ended August 28, 2022. Park’s net sales for the nine months ended November 27, 2022 were $40,525,000 compared to $41,076,000 for the nine months ended November 28, 2021. Net earnings for the 2023 fiscal year third quarter were $2,230,000 compared to $1,741,000 for the 2022 fiscal year third quarter and $1,885,000 for the 2023 fiscal year second quarter. Net earnings were $6,025,000 for the current year’s first nine months compared to $6,508,000 for last year’s first nine months.

Net earnings before special items for the 2023 fiscal year third quarter were $2,383,000 compared to $1,754,000 for the 2022 fiscal year third quarter and $1,885,000 for the 2023 fiscal year second quarter. Net earnings before special items for the nine months ended November 27, 2022 were $6,178,000 compared to $6,705,000 for last fiscal year’s first nine months.

Adjusted EBITDA for the 2023 fiscal year third quarter was $3,321,000 compared to $2,670,000 for the 2022 fiscal year third quarter and $2,709,000 for the 2023 fiscal year second quarter. Adjusted EBITDA for the current year’s first nine months was $8,834,000 compared to $10,006,000 for last year’s first nine months.

The Company recorded $153,000 of additional tax expense for tax deductions becoming unavailable related to stock options expiring unexercised in the 2023 fiscal year third quarter and first nine months. During the prior year, the Company recorded restructuring charges of $13,000 in the 2022 fiscal year third quarter and $197,000 in the 2022 fiscal year first nine months, 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 of $0.11 for the 2023 fiscal year third quarter compared to basic earnings per share of $0.09 and diluted earnings per share of $0.08 for the 2022 fiscal year third quarter and basic and diluted earnings per share of $0.09 for the 2023 fiscal year second quarter. Basic and diluted earnings per share before special items were $0.12 for the 2023 fiscal year third quarter compared to $0.09 for the 2022 fiscal year third quarter and $0.09 for the 2023 fiscal year second quarter.

Park reported basic and diluted earnings per share of $0.29 for the 2023 fiscal year’s first nine months compared to $0.32 for the 2022 fiscal year’s first nine months. Basic and diluted earnings per share before special items were $0.30 for the 2023 fiscal year’s first nine months compared to $0.33 for the 2022 fiscal year’s first nine months.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EST today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required passcode for attendance by phone is 13735033.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EST today through 11:59 p.m. EST on Wednesday, January 11, 2023. The conference call replay will be available at https://edge.media-server.com/mmc/p/tckeyrez 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 (844) 512-2921 in the United States and Canada, and (412) 317-6671 in other countries. The required passcode for accessing the replay by phone is 13735033.

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 lost tax deductions and 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 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 39 Weeks Ended
       
 November 27,
2022
  November 28,
2021
  August 28,
2022
 November 27,
2022
  November 28,
2021
Sales$13,867   $13,864   $13,875 $40,525   $41,076 
             
Net Earnings before Special Items1$2,383   $1,754   $1,885 $6,178   $6,705 
Special Items, Net of Tax:            
   Tax Impact of Cancelled Stock Options (153)   -    -  (153)   - 
   Restructuring Charges -    (13)   -  -    (197)
             
Net Earnings$2,230   $1,741   $1,885 $6,025   $6,508 
             
Basic Earnings per Share:            
Basic Earnings before Special Items1$0.12   $0.09   $0.09 $0.30   $0.33 
Special Items:            
   Tax Impact of Cancelled Stock Options (0.01)   -    -  (0.01)   - 
   Restructuring Charges -    -    -  -    (0.01)
             
       Basic Earnings per Share$0.11   $0.09   $0.09 $0.29   $0.32 
             
             
             
Diluted Earnings before Special Items1$0.12   $0.09   $0.09 $0.30   $0.33 
  Special Items:            
   Tax Impact of Cancelled Stock Options (0.01)   -    -  (0.01)   - 
   Restructuring Charges -    (0.01)   -  -    (0.01)
             
       Diluted Earnings per Share$0.11   $0.08   $0.09 $0.29   $0.32 
             
Weighted Average Shares Outstanding:            
  Basic 20,471    20,450    20,461  20,463    20,410 
  Diluted 20,510    20,503    20,503  20,506    20,566 
             
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.
                                 


Comparative balance sheets (in thousands):

 November 27,
2022
 February 27,
2022
 
Assets(unaudited)   
Current Assets    
Cash and Marketable Securities$103,303 $110,361 
Accounts Receivable, Net 8,923  8,339 
Inventories 6,816  4,657 
Prepaid Expenses and Other Current Assets 4,264  3,082 
Total Current Assets 123,306  126,439 
     
Fixed Assets, Net 24,256  24,333 
Operating Right-of-use Assets 163  203 
Other Assets 9,902  9,912 
Total Assets$157,627 $160,887 
     
Liabilities and Shareholders' Equity    
Current Liabilities    
Accounts Payable$2,365 $2,534 
Accrued Liabilities 1,270  1,494 
Operating Lease Liability 53  53 
Income Taxes Payable 2,660  2,211 
Total Current Liabilities 6,348  6,292 
     
Long-term Operating Lease Liability 141  174 
Non-current Income Taxes Payable 10,938  12,621 
Deferred Income Taxes 1,937  1,671 
Other Liabilities 4,650  4,497 
Total Liabilities 24,014  25,255 
     
Shareholders’ Equity 133,613  135,632 
     
Total Liabilities and Shareholders' Equity$157,627 $160,887 
     
Additional information    
Equity per Share$ 6.53 $ 6.63 
     


Comparative statements of operations (in thousands – unaudited):

                
 13 Weeks Ended  39 Weeks Ended 
                
 November 27,
2022
  November 28,
2021
  August 28,
2022
  November 27,
2022
  November 28,
2021
  
                
Net Sales$13,867   $13,864   $13,875   $40,525   $41,076   
                
Cost of Sales 9,423    10,028    9,789    27,903    27,357   
                
Gross Profit 4,444    3,836    4,086    12,622    13,719   
% of net sales 32.0%   27.7%   29.4%   31.1%   33.4%  
                
Selling, General & Administrative Expenses 1,523    1,593    1,732    4,888    4,729   
% of net sales 11.0%   11.5%   12.5%   12.1%   11.5%  
                
Restructuring Charges -    13    -    -    197   
% of net sales 0.0%   0.1%   0.0%   0.0%   0.5%  
                
Earnings from Operations 2,921    2,230    2,354    7,734    8,793   
                
Interest and Other Income:               
Interest Income 299    80    221    653    286   
                
Earnings from Operations before Income Taxes 3,220    2,310    2,575    8,387    9,079   
                
Income Tax Provision 990    569    690    2,362    2,571   
                
Net Earnings$2,230   $1,741   $1,885   $6,025   $6,508   
% of net sales 16.1%   12.6%   13.6%   14.9%   15.8%  
                


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

 13 Weeks Ended
November 27, 2022
  13 Weeks Ended
November 28, 2021
  13 Weeks Ended
August 28, 2022
 
 GAAP Specials
Items
 Before
Special
Items
  GAAP Specials
Items
 Before
Special
Items
  GAAP Specials
Items
 Before
Special
Items
 
                     
Restructuring Charges-  -  -   13  (13) -   -  - -  
% of net sales0.0%   0.0%  0.1%   0.0%  0.0%   0.0% 
                     
Earnings from Operations2,921  -  2,921   2,230  13  2,243   2,354  - 2,354  
% of net sales21.1%   21.1%  16.1%   16.2%  17.0%   17.0% 
                     
Interest Income299  -  299   80  -  80   221  - 221  
% of net sales2.2%   2.2%  0.6%   0.6%  1.6%   1.6% 
                     
Earnings from Operations before Income Taxes3,220  -  3,220   2,310  13  2,323   2,575  - 2,575  
% of net sales23.2%   23.2%  16.7%   16.8%  18.6%   18.6% 
                     
Income Tax Provision990  (153) 837   569  -  569   690  - 690  
Effective Tax Rate30.7%   26.0%  24.6%   24.5%  26.8%   26.8% 
                     
Net Earnings2,230  153  2,383   1,741  13  1,754   1,885  - 1,885  
% of net sales16.1%   17.2%  12.6%   12.7%  13.6%   13.6% 
                     
                     
Net Earnings    2,383       1,754       1,885  
Addback non-cash expenses:                    
Income Tax Provision    837       569       690  
Interest Income    (299)      (80)      (221) 
Depreciation    305       354       261  
Stock Option Expense    95       73       94  
Adjusted EBITDA    3,321       2,670       2,709  
                     
                     
Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited):                     
                     
 39 Weeks Ended
November 27, 2022
  39 Weeks Ended
November 28, 2021
        
 GAAP Specials
Items
 Before
Special
Items
  GAAP Specials
Items
 Before
Special
Items
        
Restructuring Charge-  -  -   197  (197) -         
% of net sales0.0%   0.0%  0.5%   0.0%        
                     
Earnings from Operations7,734  -  7,734   8,793  197  8,990         
% of net sales19.1%   19.1%  21.4%   21.9%        
                     
Interest Income653  -  653   286  -  286         
% of net sales1.6%   1.6%  0.7%   0.7%        
                     
Earnings from Operations before Income Taxes8,387  -  8,387   9,079  197  9,276         
% of net sales20.7%   20.7%  22.1%   22.6%        
                     
Income Tax Provision2,362  (153) 2,209   2,571  -  2,571         
Effective Tax Rate28.2%   26.3%  28.3%   27.7%        
                     
Net Earnings6,025  153  6,178   6,508  197  6,705         
% of net sales14.9%   15.2%  15.8%   16.3%        
                     
                     
Net Earnings    6,178       6,705         
Addback non-cash expenses:                    
Income Tax Provision    2,209       2,571         
Interest Income    (653)      (286)        
Depreciation    826       805         
Stock Option Expense    274       211         
Adjusted EBITDA    8,834       10,006         


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


Park Aerospace Corp

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Bare Printed Circuit Board Manufacturing
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Electronic Technology, Electronic Components, Aerospace & Defense, Manufacturing, Bare Printed Circuit Board Manufacturing
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About PKE

park electrochemical corp. is a global advanced materials company which develops and manufactures high-technology digital and rf/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies for the aerospace markets. park's core capabilities are in the areas of polymer chemistry formulation and coating technology. the company's manufacturing facilities are located in singapore, france, kansas, arizona and california. the company also maintains r&d facilities in arizona, kansas and singapore.