Park Aerospace Corp. Reports Second Quarter Results

NEWTON, Kan., Oct. 05, 2023 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2024 fiscal year second quarter ended August 27, 2023. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.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/4ux8vz3r at 5:00 p.m. EDT today. The presentation materials will also be available at approximately 4:15 p.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.

Park reported net sales of $12,481,000 for the 2024 fiscal year second quarter ended August 27, 2023 compared to $13,875,000 for the 2023 fiscal year second quarter ended August 28, 2022 and $15,551,000 for the 2024 fiscal year first quarter ended May 28, 2023. Park’s net sales for the six months ended August 27, 2023 were $28,032,000 compared to $26,658,000 for the six months ended August 28, 2022. Net earnings for the 2024 fiscal year second quarter were $1,746,000 compared to $1,885,000 for the 2023 fiscal year second quarter and $1,854,000 for the 2024 fiscal year first quarter. Net earnings were $3,600,000 for the current year’s first six months compared to $3,795,000 for last year’s first six months.

Net earnings before special items for the 2024 fiscal year second quarter were $1,746,000 compared to $1,885,000 for the 2023 fiscal year second quarter and $2,407,000 for the 2024 fiscal year first quarter. Net earnings before special items for the six months ended August 27, 2023 were $4,153,000 compared to $3,795,000 for last fiscal year’s first six months.

Adjusted EBITDA for the 2024 fiscal year second quarter was $2,669,000 compared to $2,709,000 for the 2023 fiscal year second quarter and $3,311,000 for the 2024 fiscal year first quarter. Adjusted EBITDA for the current year’s first six months was $5,980,000 compared to $5,513,000 for last year’s first six months.

During the 2024 fiscal year’s first six months, the Company recorded $570,000 of pre-tax activist shareholder defense costs, $65,000 of pre-tax losses on sales of investments to fund the $1.00 per share special dividend paid on April 6, 2023 to shareholders of record on March 9, 2023 and a $109,000 pre-tax charge for the modification of previously granted stock options in connection with the special dividend in the 2024 fiscal year first quarter.

Park reported basic and diluted earnings per share of $0.09 for the 2024 fiscal year second quarter compared to $0.09 for the 2023 fiscal year second quarter and $0.09 for the 2024 fiscal year first quarter. Basic and diluted earnings per share before special items were $0.09 for the 2024 fiscal year second quarter compared to $0.09 for the 2023 fiscal year second quarter and $0.12 for the 2024 fiscal year first quarter.

Park reported basic and diluted earnings per share of $0.18 for the 2024 fiscal year’s first six months compared to $0.19 for the 2023 fiscal year’s first six months. Basic and diluted earnings per share before special items were $0.20 for the 2024 fiscal year’s first six months compared to $0.19 for the 2023 fiscal year’s first six months.

The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EDT 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 13741264.

For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EDT today through 11:59 p.m. EDT on Thursday, October 12, 2023. The conference call replay will be available at https://edge.media-server.com/mmc/p/4ux8vz3r 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 13741264.

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 activist shareholder defense costs, losses on sales of investments and charges for modification of previously granted stock options. 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 (Aeroadhere^®) and lightning strike protection materials (Electroglide^®). 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):

Comparative balance sheets (in thousands):

Comparative statements of operations (in thousands – unaudited):

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

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