NEWTON, Kan., May 14, 2020 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2020 fiscal year fourth quarter and year ended March 1, 2020. 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. It is important to note that the fourth quarter ended March 3, 2019 was a 14-week period compared to the fourth quarter ended March 1, 2020, which was a 13-week period. In addition, the fiscal year ended March 3, 2019 was a 53-week period compared to the fiscal year ended March 1, 2020, which was a 52-week period.

The Company will conduct a conference call to discuss its financial results 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/6i37sjg7 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 $15,494,000 for the 2020 fiscal year fourth quarter ended March 1, 2020 compared to $16,659,000 for the 2019 fiscal year fourth quarter ended March 3, 2019 and $15,847,000 for the 2020 fiscal year third quarter ended December 1, 2019.  Park’s net sales from continuing operations for the fiscal year ended March 1, 2020 were $60,014,000 compared to $51,116,000 for the fiscal year ended March 3, 2019. Net earnings from continuing operations for the 2020 fiscal year fourth quarter were $2,633,000 compared to $1,588,000 for the 2019 fiscal year fourth quarter and $2,806,000 for the 2020 fiscal year third quarter. Net earnings from continuing operations were $10,205,000 for the 2020 fiscal year compared to $6,306,000 for last fiscal year.

Net earnings from continuing operations before special items for the 2020 fiscal year fourth quarter were $2,787,000 compared to $3,944,000 for the 2019 fiscal year fourth quarter and $2,806,000 for the 2020 fiscal year third quarter. Net earnings from continuing operations before special items were $10,503,000 for the 2020 fiscal year compared to $7,874,000 for last fiscal year.

EBITDA from continuing operations before special items for the 2020 fiscal year fourth quarter was $3,612,000 compared to EBITDA from continuing operations before special items of $4,251,000 for the 2019 fiscal year fourth quarter and EBITDA from continuing operations of $3,622,000 for the 2020 fiscal year third quarter. EBITDA from continuing operations before special items was $13,012,000 for the 2020 fiscal year compared to $10,248,000 for last fiscal year.

In the 2020 fiscal year fourth quarter the Company recorded a pre-tax stock option modification charge of $208,000. In the 2019 fiscal year fourth quarter, the Company recorded a one-time tax benefit of $788,000 related to the Tax Cuts and Jobs Act enacted in December 2017. Additionally, in the 2019 fiscal year fourth quarter, the Company recorded a pre-tax loss on the sales of marketable securities of $1,498,000 and a pre-tax stock option modification charge of $528,000. The loss on the sales of marketable securities was in connection with the liquidation of securities to fund a special cash dividend of $4.25 per share paid in February 2019. The stock option modification charge related to a reduction in the exercise prices of previously granted employee stock options resulting from the special dividends paid in February 2020 and February 2019.

Park reported basic and diluted earnings per share from continuing operations of $0.13 for the 2020 fiscal year fourth quarter compared to $0.08 for the 2019 fiscal year fourth quarter and $0.14 for the 2020 fiscal year third quarter. Park reported basic and diluted earnings per share from continuing operations of $0.50 for the 2020 fiscal year compared basic and diluted earnings per share from continuing operations to $0.31 for the 2019 fiscal year.

Park reported basic and diluted earnings per share from continuing operations before special items of $0.14 for the 2020 fiscal year fourth quarter compared to $0.19 for the 2019 fiscal year fourth quarter and $0.14 for the 2020 fiscal year third quarter. Basic and diluted earnings per share from continuing operations before special items were $0.51 for the 2020 fiscal year compared to $0.39 for 2019 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 (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries.  The required passcode for attendance by phone is 4258059.

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 20, 2020.  The conference call replay will be available at https://edge.media-server.com/mmc/p/6i37sjg7 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 4258059. 

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 stock option modification charges, one-time tax benefits, loss on sales of marketable securities 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.  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  14 Weeks Ended  13 Weeks Ended 52 Weeks Ended  53 Weeks Ended 
         
  March 1, 2020  March 3, 2019  December 1, 2019 March 1, 2020  March 3, 2019 
 Sales$15,494   $16,659   $15,847  $60,014   $51,116  
               
 Net Earnings before Special Items1$2,787   $3,944   $2,806  $10,503   $7,874  
 Special Items, Net of Tax:             
 Tax Impact of Cancelled Stock Options    -    -   (144)   -  
 Stock Option Modifications (154)   (408)   -   (154)   (408) 
 Loss on Sales of Marketable Securities -    (1,160)   -   -    (1,160) 
 Tax Cut and Jobs Act -    (788)   -   -    -  
 Net Earnings from Continuing Operations$2,633   $1,588   $2,806  $10,205   $6,306  
               
 (Loss)/Earnings from Discontinued Operations, Net of Tax$(249)  $102,398   $(360) $(653)  $107,239  
               
 Net Earnings$2,384   $103,986   $2,446  $9,552   $113,545  
               
 Basic Earnings per Share:             
 Basic Earnings before Special Items1$0.14   $0.19   $0.14  $0.51   $0.39  
 Special Items:             
 Tax Impact of Cancelled Stock Options -    -    -   -    -  
 Stock Option Modifications (0.01)   (0.02)   -   (0.01)   (0.02) 
 Loss on Sales of Marketable Securities -    (0.05)   -   -    (0.06) 
 Tax Cut and Jobs Act -    (0.04)   -   -    -  
 Basic Earnings per Share from Continuing Operations$0.13   $0.08   $0.14  $0.50   $0.31  
               
 Basic (Loss)/Earnings per Share from Discontinued Operations (0.01)   5.02    (0.02)  (0.03)   5.29  
               
 Basic Earnings per Share$0.12   $5.10   $0.12  $0.47   $5.60  
               
               
               
 Diluted Earnings before Special Items1$0.14   $0.19   $0.14  $0.51   $0.39  
 Special Items:             
 Tax Impact of Cancelled Stock Options -    -    -   -    -  
 Stock Option Modifications (0.01)   (0.02)   -   (0.01)   (0.02) 
 Loss on Sales of Marketable Securities -    (0.05)   -   -    (0.06) 
 Tax Cut and Jobs Act -    (0.04)   -   -    -  
 Diluted Earnings per Share from Continuing Operations$0.13   $0.08   $0.14  $0.50   $0.31  
               
 Diluted (Loss)/Earnings per Share from Discontinued Operations (0.01)   4.99    (0.02)  (0.03)   5.26  
               
 Diluted Earnings per Share$0.12   $5.07   $0.12  $0.47   $5.57  
               
 Weighted Average Shares Outstanding:             
 Basic 20,519    20,370    20,518   20,507    20,288  
 Diluted 20,578    20,501    20,617   20,595    20,385  
               
 1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items. 
  

 

Comparative balance sheets (in thousands except per share information):

 March 1, 2020 March 3, 2019 
Assets(unaudited) (Note 1) 
Current Assets    
Cash and Marketable Securities$122,355 $151,624 
Accounts Receivable, Net 10,925  9,352 
Inventories 6,379  5,267 
Prepaid Expenses and Other Current Assets 5,535  1,690 
Total Current Assets 145,194  167,933 
     
Fixed Assets, Net 16,100  10,791 
Operating Right-of-use Assets 420  - 
Other Assets 10,072  10,127 
Total Assets$171,786 $188,851 
     
Liabilities and Shareholders' Equity    
Current Liabilities    
Accounts Payable$4,735 $3,169 
Accrued Liabilities 1,709  2,920 
Operating Lease Liability 152  - 
Income Taxes Payable 2,111  5,066 
Total Current Liabilities 8,707  11,155 
     
Long-term Operating Lease Liability 268  - 
Noncurrent Income Taxes Payable 15,986  17,669 
Deferred Income Taxes 834  - 
Other Liabilities 4,316  1,016 
Total Liabilities 30,111  29,840 
     
Shareholders’ Equity 141,675  159,011 
     
Total Liabilities and Shareholders' Equity$171,786 $188,851 
     
Additional information    
Equity per Share$ 6.90 $ 7.84 
     
(Note 1) - These amounts have not been audited and are based on the audited financial statements.


Comparative statements of operations (in thousands – unaudited):

               
 13 Weeks Ended  14 Weeks Ended  13 Weeks Ended  52 Weeks Ended  53 Weeks Ended 
               
 March 1, 2020  March 3, 2019  December 1, 2019  March 1, 2020  March 3, 2019 
               
Net Sales$15,494   $16,659   $15,847   $60,014   $51,116  
               
Cost of Sales 10,460    10,756    10,825    41,341    34,932  
               
Gross Profit 5,034    5,903    5,022    18,673    16,184  
% of net sales 32.5%   35.4%   31.7%   31.1%   31.7% 
               
Selling, General & Administrative Expenses 2,147    2,768    1,949    7,932    8,968  
% of net sales 13.9%   16.6%   12.3%   13.2%   17.5% 
               
Earnings from Operations 2,887    3,135    3,073    10,741    7,216  
               
Interest:              
Interest Income 717    1,289    802    3,330    2,379  
               
Loss on Sales of Marketable Securities -    (1,498)   -    -    (1,498) 
               
Net Interest and Other Income/(Expense) 717    (209)   802    3,330    881  
               
Earnings before Income Taxes 3,604    2,926    3,875    14,071    8,097  
               
Income Tax Provision 971    1,338    1,069    3,866    1,791  
               
Net Earnings from continuing operations 2,633    1,588    2,806    10,205    6,306  
% of net sales 17.0%   9.5%   17.7%   17.0%   12.3% 
               
(Loss)/Earnings from discontinued operations, net of tax (249)   102,398    (360)   (653)   107,239  
               
Net Earnings$2,384   $103,986   $2,446   $9,552   $113,545  
% of net sales 15.4%   624.2%   15.4%   15.9%   222.1% 


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

 13 Weeks Ended March 1, 2020  14 Weeks Ended March 3, 2019  13 Weeks Ended December 1, 2019
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
                    
Selling, General & Administrative Expenses$2,147  $(208) $1,939   $2,768  $(528) $2,240   $1,949  $- $1,949 
% of net sales 13.9%    12.5%   16.6%    13.4%   12.3%    12.3%
                    
Earnings from Operations 2,887   208   3,095    3,135   528   3,663    3,073   -  3,073 
% of net sales 18.6%    20.0%   18.8%    22.0%   19.4%    19.4%
                    
Interest Income 717   -   717    1,289   -   1,289    802   -  802 
% of net sales 4.6%    4.6%   7.7%    7.7%   5.1%    5.1%
                    
Loss on Sales of Marketable Securities -   -   -    (1,498)  1,498   -    -   -  - 
% of net sales 0.0%    0.0%   -9.0%    0.0%   0.0%    0.0%
                    
Net Interest and Other Income/(Expense) 717   -   717    (209)  1,498   1,289    802   -  802 
% of net sales 4.6%    4.6%   -1.3%    7.7%   5.1%    5.1%
                    
Earnings before Income Taxes 3,604   208   3,812    2,926   2,026   4,952    3,875   -  3,875 
% of net sales 23.3%    24.6%   17.6%    29.7%   24.5%    24.5%
                    
Income Tax Provision 971   54   1,025    1,338   (330)  1,008    1,069   -  1,069 
Effective Tax Rate 26.9%    26.9%   45.7%    20.4%   27.6%    27.6%
                    
Net Earnings from continuing operations 2,633   154   2,787    1,588   2,356   3,944    2,806   -  2,806 
% of net sales 17.0%    18.0%   9.5%    23.7%   17.7%    17.7%
                    
(Loss)/Earnings from discontinued operations, net of tax (249)  -   (249)   102,398   (102,128)  270    (360)  -  (360)
% of net sales -1.6%    -1.6%   614.7%    1.6%   -2.3%    -2.3%
                    
Net Earnings 2,384   154   2,538    103,986   (99,772)  4,214    2,446   -  2,446 
% of net sales 15.4%    16.4%   624.2%    25.3%   15.4%    15.4%
                    
                    
Earnings from Operations     3,095        3,663        3,073 
Addback non-cash expenses:                   
Depreciation     402        462        410 
Stock Option Expense     115        126        139 
EBITDA     3,612        4,251        3,622 
                    
                    
Reconciliation of non-GAAP financial measures (in thousands – unaudited) continued:  
                    
 52 Weeks Ended March 1, 2020  53 Weeks Ended March 3, 2019       
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items       
Selling, General & Administrative Expenses$7,932  $(208) $7,724   $8,968  $(528) $8,440        
% of net sales 13.2%    12.9%   17.5%    16.5%       
                    
Earnings from Operations 10,741   208   10,949    7,216   528   7,744        
% of net sales 17.9%    18.2%   14.1%    15.1%       
                    
Interest Income 3,330   -   3,330    2,379   -   2,379        
% of net sales 5.5%    5.5%   4.7%    4.7%       
                    
Loss on Sales of Marketable Securities -   -   -    (1,498)  1,498   -        
% of net sales 0.0%    0.0%   -2.9%    0.0%       
                    
Net Interest and Other Income 3,330   -   3,330    881   1,498   2,379        
% of net sales 5.5%    5.5%   1.7%    4.7%       
                    
Earnings before Income Taxes 14,071   208   14,279    8,097   2,026   10,123        
% of net sales 23.4%    23.8%   15.8%    19.8%       
                    
Income Tax Provision 3,866   (90)  3,776    1,791   458   2,249        
Effective Tax Rate 27.5%    26.4%   22.1%    22.2%       
                    
Net Earnings from continuing operations 10,205   298   10,503    6,306   1,568   7,874        
% of net sales 17.0%    17.5%   12.3%    15.4%       
                    
(Loss)/Earnings from discontinued operations, net of tax (653)  -   (653)   107,239   (103,203)  4,036        
% of net sales -1.1%    -1.1%   209.8%    7.9%       
                    
Net Earnings 9,552   298   9,850    113,545   (101,635)  11,910         
% of net sales 15.9%    16.4%   222.1%    23.3%       
                    
                    
Earnings from Operations     10,949        7,744        
Addback non-cash expenses:                   
Depreciation     1,544        1,784        
Stock Option Expense     519        720        
EBITDA     13,012        10,248        


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