Park Aerospace Corp. Reports Third Quarter Results

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NEWTON, Kan., Jan. 06, 2022 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year third quarter ended November 28, 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. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/nkcvaqeo 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.

Continuing Operations:

Park reported net sales of $13,864,000 for the 2022 fiscal year third quarter ended November 28, 2021 compared to $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020 and $13,618,000 for the 2022 fiscal year second quarter ended August 29, 2021. Park’s net sales from continuing operations for the nine months ended November 28, 2021 were $41,076,000 compared to $31,835,000 for the nine months ended November 29, 2020. Net earnings from continuing operations for the 2022 fiscal year third quarter were $1,741,000 compared to $1,037,000 for the 2021 fiscal year third quarter and $2,022,000 for the 2022 fiscal year second quarter. Net earnings from continuing operations were $6,508,000 for the current year’s first nine months compared to $4,160,000 for last year’s first nine months.

Net earnings from continuing operations before special items for the 2022 fiscal year third quarter were $1,754,000 compared to $1,037,000 for the 2021 fiscal year third quarter and $2,192,000 for the 2022 fiscal year second quarter. Net earnings from continuing operations before special items for the nine months ended November 28, 2021 were $6,705,000 compared to $4,160,000 for last fiscal year’s first nine months.

Adjusted EBITDA from continuing operations for the 2022 fiscal year third quarter was $2,670,000 compared to $1,380,000 for the 2021 fiscal year third quarter and $3,232,000 for the 2022 fiscal year second quarter. Adjusted EBITDA from continuing operations for the current year’s first nine months was $10,006,000 compared to $5,162,000 for last year’s first nine months.

The Company recorded pretax restructuring charges of $13,000 in the 2022 fiscal year third quarter and $170,000 in the 2022 fiscal year second quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd. idle facility in Singapore.

Park reported 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 compared to basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year third quarter and $0.10 for the 2022 fiscal year second quarter. Basic and diluted earnings per share from continuing operations before special items were $0.09 for the 2022 fiscal third quarter compared to $0.05 for the 2021 fiscal year third quarter and $0.11 for the 2022 fiscal year second quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.32 for the 2022 fiscal year’s first nine months compared to $0.20 for the 2021 fiscal year’s first nine months. Basic and diluted earnings per share from continuing operations before special items were $0.33 for the 2022 fiscal year’s first nine months compared to $0.20 for the 2021 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 (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries. The required passcode for attendance by phone is 9884832.

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 12, 2022. The conference call replay will be available at https://edge.media-server.com/mmc/p/nkcvaqeo 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 9884832.

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 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 39 Weeks Ended
       
 November
28, 2021
  November
29, 2020
  August
29, 2021
 November
28, 2021
  November
29, 2020
Sales$13,864   $10,372   $13,618  $41,076   $31,835 
             
Net Earnings before Special Items1$1,754   $1,037   $2,192  $6,705   $4,160 
Special Items, Net of Tax:            
Restructuring Charges (13)   -    (170)  (197)   - 
Net Earnings from Continuing Operations$1,741   $1,037   $2,022  $6,508   $4,160 
             
Loss from Discontinued Operations, Net of Tax$-   $(116)  $-  $-   $(328)
             
Net Earnings$1,741   $921   $2,022  $6,508   $3,832 
             
Basic Earnings per Share:            
Basic Earnings before Special Items1$0.09   $0.05   $0.11  $0.33   $0.20 
Special Items:            
Restructuring Charges -    -    (0.01)  (0.01)   - 
Basic Earnings per Share from Continuing Operations$0.09   $0.05   $0.10  $0.32   $0.20 
             
Basic Loss per Share from Discontinued Operations -    -    -   -    (0.01)
             
Basic Earnings per Share$0.09   $0.05   $0.10  $0.32   $0.19 
             
             
             
Diluted Earnings before Special Items1$0.09   $0.05   $0.11  $0.33   $0.20 
Special Items:            
Restructuring Charges (0.01)   -    (0.01)  (0.01)   - 
Diluted Earnings per Share from Continuing Operations$0.08   $0.05   $0.10  $0.32   $0.20 
             
Diluted Loss per Share from Discontinued Operations -    -    -   -    (0.01)
             
Diluted Earnings per Share$0.08   $0.05   $0.10  $0.32   $0.19 
             
Weighted Average Shares Outstanding:            
Basic 20,450    20,381    20,397   20,410    20,388 
Diluted 20,503    20,434    20,485   20,566    20,442 
             
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.
                       

Comparative balance sheets (in thousands):

 November
28, 2021
 February
28, 2021
Assets(unaudited)  
Current Assets   
Cash and Marketable Securities$109,628 $116,542
Accounts Receivable, Net 9,693  7,633
Inventories 5,175  4,794
Prepaid Expenses and Other Current Assets 3,215  3,372
Total Current Assets 127,711  132,341
    
Fixed Assets, Net 23,870  21,130
Operating Right-of-use Assets 217  103
Other Assets 9,938  9,938
Total Assets$161,736 $163,512
    
Liabilities and Shareholders' Equity   
Current Liabilities   
Accounts Payable$2,242 $3,300
Accrued Liabilities 1,671  1,708
Operating Lease Liability 53  33
Income Taxes Payable 2,488  2,952
Total Current Liabilities 6,454  7,993
    
Long-term Operating Lease Liability 186  86
Non-current Income Taxes Payable 12,621  14,303
Deferred Income Taxes 1,183  778
Other Liabilities 4,512  4,411
Total Liabilities 24,956  27,571
    
Shareholders’ Equity 136,780  135,941
    
Total Liabilities and Shareholders' Equity$161,736 $163,512
    
Additional information   
Equity per Share$ 6.69  $ 6.67
      

Comparative statements of operations (in thousands – unaudited):

 13 Weeks Ended 39 Weeks Ended
             
 November
28, 2021
  November
29, 2020
  August
29, 2021
 November
28, 2021
  November
29, 2020
             
Net Sales$13,864   $10,372   $13,618  $41,076   $31,835 
             
Cost of Sales 10,028    7,819    9,207   27,357    22,970 
             
Gross Profit 3,836    2,553    4,411   13,719    8,865 
% of net sales 27.7%   24.6%   32.4%  33.4%   27.8%
             
Selling, General & Administrative Expenses 1,593    1,536    1,488   4,729    4,718 
% of net sales 11.5%   14.8%   10.9%  11.5%   14.8%
             
Restructuring Charges 13    -    170   197    - 
% of net sales 0.1%   0.0%   1.2%  0.5%   0.0%
             
Earnings from Continuing Operations 2,230    1,017    2,753   8,793    4,147 
             
Interest and Other Income:            
Interest Income 80    389    89   286    1,570 
             
Earnings from Continuing Operations before Income Taxes 2,310    1,406    2,842   9,079    5,717 
             
Income Tax Provision 569    369    820   2,571    1,557 
             
Net Earnings from Continuing Operations 1,741    1,037    2,022   6,508    4,160 
% of net sales 12.6%   10.0%   14.8%  15.8%   13.1%
             
Loss from Discontinued Operations, Net of Tax -    (116)   -   -    (328)
             
Net Earnings$1,741   $921   $2,022  $6,508   $3,832 
% of net sales 12.6%   8.9%   14.8%  15.8%   12.0%
                       

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

 13 Weeks Ended
November 28, 2021
  13 Weeks Ended
November 29, 2020
  13 Weeks Ended
August 29, 2021
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
                    
Restructuring Charges13  (13) -   -  - -   170  (170) - 
% of net sales0.1%   0.0%  0.0%   0.0%  1.2%   0.0%
                    
Earnings from Continuing Operations2,230  13  2,243   1,017  - 1,017   2,753  170  2,923 
% of net sales16.1%   16.2%  9.8%   9.8%  20.2%   21.5%
                    
Interest Income80  -  80   389  - 389   89  -  89 
% of net sales0.6%   0.6%  3.8%   3.8%  0.7%   0.7%
                    
Earnings from Continuing Operations before Income Taxes2,310  13  2,323   1,406  - 1,406   2,842  170  3,012 
% of net sales16.7%   16.8%  13.6%   13.6%  20.9%   22.1%
                    
Income Tax Provision569  -  569   369  - 369   820  -  820 
Effective Tax Rate24.6%   24.5%  26.2%   26.2%  28.9%   27.2%
                    
Net Earnings from Continuing Operations1,741  13  1,754   1,037  - 1,037   2,022  170  2,192 
% of net sales12.6%   12.7%  10.0%   10.0%  14.8%   16.1%
                    
Loss from Discontinued Operations-    -   (116)   (116)  -  -  - 
% of net sales0.0%   0.0%  -1.1%   -1.1%  0.0%   0.0%
                    
Net Earnings1,741  13  1,754   921  - 921   2,022  170  2,192 
% of net sales12.6%   12.7%  8.9%   8.9%  14.8%   16.1%
                    
                    
Net Earnings    1,754       921       2,192 
Addback Discontinued Operations and non-cash expenses:                  
Loss from Discontinued Operations    -       116       - 
Income Tax Provision    569       369       820 
Interest Income    (80)      (389)      (89)
Depreciation    354       314       235 
Stock Option Expense    73       49       74 
Adjusted EBITDA from Continuing Operations    2,670       1,380       3,232 
                       

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

 39 Weeks Ended
November 28, 2021
  39 Weeks Ended
November 29, 2020
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
Restructuring Charge197  (197) -   -  - - 
% of net sales0.5%   0.0%  0.0%   0.0%
             
Earnings from Continuing Operations8,793  197  8,990   4,147  - 4,147 
% of net sales21.4%   21.9%  13.0%   13.0%
             
Interest Income286    286   1,570  - 1,570 
% of net sales0.7%   0.7%  4.9%   4.9%
             
Earnings from Continuing Operations before Income Taxes9,079  197  9,276   5,717  - 5,717 
% of net sales22.1%   22.6%  18.0%   18.0%
             
Income Tax Provision2,571  -  2,571   1,557  - 1,557 
Effective Tax Rate28.3%   27.7%  27.2%   27.2%
             
Net Earnings from Continuing Operations6,508  197  6,705   4,160  - 4,160 
% of net sales15.8%   16.3%  13.1%   13.1%
             
Loss from Discontinued Operations-  -  -   (328) - (328)
% of net sales0.0%   0.0%  -1.0%   -1.0%
             
Net Earnings6,508  197  6,705   3,832  - 3,832 
% of net sales15.8%   16.3%  12.0%   12.0%
             
             
Net Earnings    6,705       3,832 
Addback Discontinued Operations and non-cash expenses:           
Loss from Discontinued Operations    -       328 
Income Tax Provision    2,571       1,557 
Interest Income    (286)      (1,570)
Depreciation    805       873 
Stock Option Expense    211       142 
Adjusted EBITDA from Continuing Operations    10,006       5,162 
               


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

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