Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results

Westbury, New York, UNITED STATES


NEWTON, Kan., May 13, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2021 fiscal year fourth quarter and year ended February 28, 2021. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, current 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/bk4uvktb 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 $14,441,000 for the 2021 fiscal year fourth quarter ended February 28, 2021 compared to $15,494,000 for the 2020 fiscal year fourth quarter ended March 1, 2020 and $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020. Park’s net sales from continuing operations for the fiscal year ended February 28, 2021 were $46,276,000 compared to $60,014,000 for the fiscal year ended March 1, 2020. Net earnings from continuing operations for the 2021 fiscal year fourth quarter were $1,032,000 compared to $2,633,000 for the 2020 fiscal year fourth quarter and $1,037,000 for the 2021 fiscal year third quarter. Net earnings from continuing operations were $5,192,000 for the current fiscal year compared to $10,205,000 for last fiscal year.

Net earnings from continuing operations before special items for the 2021 fiscal year fourth quarter were $2,335,000 compared to $2,787,000 for the 2020 fiscal year fourth quarter and $1,037,000 for the 2021 fiscal year third quarter. Net earnings from continuing operations before special items were $6,495,000 for the current fiscal year compared to $10,503,000 for last fiscal year.

Adjusted EBITDA from continuing operations for the 2021 fiscal year fourth quarter was $3,257,000 compared to $3,612,000 for the 2020 fiscal year fourth quarter and $1,380,000 for the 2021 fiscal year third quarter. Adjusted EBITDA from continuing operations for the current fiscal year was $8,419,000 compared to $13,012,000 for last fiscal year.

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. In the 2020 fiscal year, the Company recorded a one-time tax charge of $144,000 for the write down of deferred tax assets for stock option expirations pertaining to employees who transferred to AGC Inc. in connection with the sale of the Electronics Business and a pre-tax stock option modification charge of $208,000. The stock option modification charge related to a reduction in the exercise prices of previously granted employee stock options resulting from the special dividend paid in February 2020.

Park reported basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year fourth quarter compared to $0.13 for the 2020 fiscal year fourth quarter and $0.05 for the 2021 fiscal year third quarter. Park reported basic and diluted earnings per share from continuing operations before special items of $0.11 for the 2021 fiscal year fourth quarter compared to $0.14 for the 2020 fiscal year fourth quarter and $0.05 for the 2021 fiscal year third quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.25 for the 2021 fiscal year compared to $0.50 for the 2020 fiscal year. Basic and diluted earnings per share from continuing operations before special items were $0.32 for the 2021 fiscal year compared to $0.51 for the 2020 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 6667586.

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 19, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/bk4uvktb 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 6667586.

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 a restructuring charge, a one-time tax charge, a stock modification charge and Adjusted EBITDA. 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. These materials include lightning strike protection 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 28, 2021  March 1, 2020  November 29, 2020 February 28, 2021  March 1, 2020
Sales$14,441   $15,494   $10,372  $46,276   $60,014 
             
Net Earnings before Special Items1$2,335   $2,787   $1,037  $6,495   $10,503 
Special Items, Net of Tax:            
Tax Impact of Cancelled Stock Options -    -    -   -    (144)
Stock Option Modification -    (154)   -   -    (154)
Restructuring Charges (1,303)   -    -   (1,303)   - 
Net Earnings from Continuing Operations$1,032   $2,633   $1,037  $5,192   $10,205 
             
Loss from Discontinued Operations, Net of Tax$-   $(249)  $(116) $(328)  $(653)
             
Net Earnings$1,032   $2,384   $921  $4,864   $9,552 
             
Basic Earnings per Share:            
Basic Earnings before Special Items1$0.11   $0.14   $0.05  $0.32   $0.51 
Special Items:            
Tax Impact of Cancelled Stock Options -    -    -   -    - 
Stock Option Modification -    (0.01)   -   -    (0.01)
Restructuring Charges (0.06)   -    -   (0.07)   - 
Basic Earnings per Share from Continuing Operations$0.05   $0.13   $0.05  $0.25   $0.50 
             
Basic Loss per Share from Discontinued Operations -    (0.01)   -   (0.01)   (0.03)
             
Basic Earnings per Share$0.05   $0.12   $0.05  $0.24   $0.47 
             
             
             
Diluted Earnings before Special Items1$0.11   $0.14   $0.05  $0.32   $0.51 
Special Items:            
Tax Impact of Cancelled Stock Options -    -    -   -    - 
Stock Option Modification -    (0.01)   -   -    (0.01)
Restructuring Charges (0.06)   -    -   (0.07)   - 
Diluted Earnings per Share from Continuing Operations$0.05   $0.13   $0.05  $0.25   $0.50 
             
Diluted Loss per Share from Discontinued Operations -    (0.01)   -   (0.01)   (0.03)
             
Diluted Earnings per Share$0.05   $0.12   $0.05  $0.24   $0.47 
             
Weighted Average Shares Outstanding:            
Basic 20,382    20,519    20,381   20,387    20,507 
Diluted 20,587    20,578    20,434   20,478    20,595 
             
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.



Comparative balance sheets (in thousands):

 February 28, 2021 March 1, 2020
Assets(unaudited)  
Current Assets   
   Cash and Marketable Securities$116,542 $122,355
   Accounts Receivable, Net 7,633  10,925
   Inventories 4,794  6,379
   Prepaid Expenses and Other Current Assets 3,372  5,535
      Total Current Assets 132,341  145,194
    
Fixed Assets, Net 21,130  16,100
Operating Right-of-use Assets 103  420
Other Assets 9,938  10,072
      Total Assets$163,512 $171,786
    
Liabilities and Shareholders' Equity   
Current Liabilities   
   Accounts Payable$3,300 $4,735
   Accrued Liabilities 1,708  1,709
   Operating Lease Liability 33  152
   Income Taxes Payable 2,952  2,111
      Total Current Liabilities 7,993  8,707
    
Long-term Operating Lease Liability 86  268
Non-current Income Taxes Payable 14,303  15,986
Deferred Income Taxes 778  834
Other Liabilities 4,411  4,316
      Total Liabilities 27,571  30,111
    
Shareholders’ Equity 135,941  141,675
    
      Total Liabilities and Shareholders' Equity$163,512 $171,786
    
Additional information   
Equity per Share$ 6.67 $ 6.90



Comparative statements of operations (in thousands – unaudited):

 13 Weeks Ended  52 Weeks Ended
              
 February 28, 2021  March 1, 2020  November 29, 2020  February 28, 2021  March 1, 2020
              
Net Sales$14,441   $15,494   $10,372   $46,276   $60,014 
              
Cost of Sales 10,115    10,460    7,819    33,085    41,341 
              
Gross Profit 4,326    5,034    2,553    13,191    18,673 
     % of net sales 30.0%   32.5%   24.6%   28.5%   31.1%
              
Selling, General & Administrative Expenses 1,395    2,147    1,536    6,113    7,932 
     % of net sales 9.7%   13.9%   14.8%   13.2%   13.2%
              
Restructuring Charges 1,570    -    -    1,570    - 
              
Earnings from Continuing Operations 1,361    2,887    1,017    5,508    10,741 
              
Interest and Other Income:             
    Interest Income 207    717    389    1,777    3,330 
              
Earnings from Continuing Operations before Income Taxes 1,568    3,604    1,406    7,285    14,071 
              
Income Tax Provision 536    971    369    2,093    3,866 
              
Net Earnings from Continuing Operations 1,032    2,633    1,037    5,192    10,205 
     % of net sales 7.1%   17.0%   10.0%   11.2%   17.0%
              
Loss from Discontinued Operations, Net of Tax -    (249)   (116)   (328)   (653)
              
Net Earnings$1,032   $2,384   $921   $4,864   $9,552 
     % of net sales 7.1%   15.4%   8.9%   10.5%   15.9%

 


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

 13 Weeks Ended February 28, 2021  13 Weeks Ended March 1, 2020  13 Weeks Ended November 29, 2020
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
                    
Selling, General & Administrative Expenses$1,395  $-  $1,395   $2,147  $(208) $1,939   $1,536  $- $1,536 
     % of net sales 9.7%    9.7%   13.9%    12.5%   14.8%    14.8%
                    
Restructuring Charges 1,570   (1,570)  -    -   -   -    -   -  - 
     % of net sales 10.9%    0.0%   0.0%    0.0%   0.0%    0.0%
                    
Earnings from Continuing Operations 1,361   1,570   2,931    2,887   208   3,095    1,017   -  1,017 
     % of net sales 9.4%    20.3%   18.6%    20.0%   9.8%    9.8%
                    
Interest Income 207   -   207    717   -   717    389   -  389 
     % of net sales 1.4%    1.4%   4.6%    4.6%   3.8%    3.8%
                    
Earnings from Continuing Operations before Income Taxes 1,568   1,570   3,138    3,604   208   3,812    1,406   -  1,406 
     % of net sales 10.9%    21.7%   23.3%    24.6%   13.6%    13.6%
                    
Income Tax Provision 536   267   803    971   54   1,025    369   -  369 
   Effective Tax Rate 34.2%    25.6%   26.9%    26.9%   26.2%    26.2%
                    
Net Earnings from Continuing Operations 1,032   1,303   2,335    2,633   154   2,787    1,037   -  1,037 
     % of net sales 7.1%    16.2%   17.0%    18.0%   10.0%    10.0%
                    
Loss from Discontinued Operations -   -   -    (249)  -   (249)   (116)  -  (116)
     % of net sales 0.0%    0.0%   -1.6%    -1.6%   -1.1%    -1.1%
                    
Net Earnings 1,032   1,303   2,335    2,384   154   2,538    921   -  921 
     % of net sales 7.1%    16.2%   15.4%    16.4%   8.9%    8.9%
                    
                    
Net Earning     2,335        2,538        921 
Addback Discontinued Operations and non-cash items:                  
   Loss from Discontinued Operations     -        249        116 
   Income Tax Provision     803        1,025        369 
   Interest Income     (207)       (717)       (389)
   Depreciation     277        402        314 
   Stock Option Expense     49        115        49 
Adjusted EBITDA from Continuing Operations    3,257        3,612        1,380 

 


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

 52 Weeks Ended February 28, 2021  52 Weeks Ended March 1, 2020
 GAAP Specials Items Before Special Items  GAAP Specials Items Before Special Items
Selling, General & Administrative Expenses$6,113  $-  $6,113   $7,932  $(208) $7,724 
     % of net sales 13.2%    13.2%   13.2%    12.9%
             
Restructuring Charge 1,570   (1,570)  -    -   -   - 
     % of net sales 3.4%    0.0%   0.0%    0.0%
             
Earnings from Continuing Operations 5,508   1,570   7,078    10,741   208   10,949 
     % of net sales 11.9%    15.3%   17.9%    18.2%
             
Interest Income 1,777   -   1,777    3,330   -   3,330 
     % of net sales 3.8%    3.8%   5.5%    5.5%
             
Earnings from Continuing Operations before Income Taxes 7,285   1,570   8,855    14,071   208   14,279 
     % of net sales 15.7%    19.1%   23.4%    23.8%
             
Income Tax Provision 2,093   267   2,360    3,866   (90)  3,776 
   Effective Tax Rate 28.7%    26.7%   27.5%    26.4%
             
Net Earnings from Continuing Operations 5,192   1,303   6,495    10,205   298   10,503 
     % of net sales 11.2%    14.0%   17.0%    17.5%
             
Loss from Discontinued Operations (328)  -   (328)   (653)  -   (653)
     % of net sales -0.7%    -0.7%   -1.1%    -1.1%
             
Net Earnings 4,864   1,303   6,167    9,552   298   9,850 
     % of net sales 10.5%    13.3%   15.9%    16.4%
             
             
Net Earning     6,167        9,850 
Addback Discontinued Operations and non-cash items:           
   Loss from Discontinued Operations     328        653 
   Income Tax Provision     2,360        3,776 
   Interest Income     (1,777)       (3,330)
   Depreciation     1,150        1,544 
   Stock Option Expense     191        519 
Adjusted EBITDA from Continuing Operations    8,419        13,012 


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