An investor presentation will be available on the Company's web site at
https://parkelectro.com/shareholders/investor-conference-calls/

MELVILLE, N.Y., May 17, 2019 (GLOBE NEWSWIRE) -- Park Electrochemical Corp. (NYSE-PKE) reported results for the 2019 fiscal year fourth quarter and year ended March 3, 2019. 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 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 February 25, 2018, 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 February 25, 2018, which was a 52-week period.

A live audio webcast, along with the presentation materials, will be available at https://parkelectro.com/shareholders/investor-conference-calls/. An archive replay will also be available at the same link for one year. Presentation materials will also be available at approximately 9:00 A.M. EDT today at https://parkelectro.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkelectro.com under “Investor Conference Calls” on the “Shareholders” page.

Continuing Operations:

Park reported net sales from continuing operations of $16,659,000 for the 2019 fiscal year fourth quarter ended March 3, 2019 compared to net sales from continuing operations of $9,920,000 for the 2018 fiscal year fourth quarter ended February 25, 2018 and net sales from continuing operations of $12,853,000 for the 2019 fiscal year third quarter ended November 25, 2018. Park’s net sales from continuing operations for the fiscal year ended March 3, 2019 were $51,116,000 compared to net sales from continuing operations of $40,230,000 for the fiscal year ended February 25, 2018. 

Net earnings from continuing operations for the 2019 fiscal year fourth quarter were $1,588,000 compared to $17,197,000 for the 2018 fiscal year fourth quarter and $2,078,000 for the 2019 fiscal year third quarter. Net earnings from continuing operations were $6,306,000 for the current fiscal year compared to $18,472,000 for last fiscal year.

Net earnings from continuing operations before special items for the 2019 fiscal year fourth quarter were $3,944,000 compared to $659,000 for the 2018 fiscal year fourth quarter and $2,078,000 for the 2019 fiscal year third quarter. Net earnings from continuing operations before special items were $7,874,000 for the current fiscal year compared to $1,934,000 for last fiscal year. EBITDA from continuing operations for the 2019 fiscal year fourth quarter was $4,251,000 compared to EBITDA from continuing operations before special items of $1,338,000 for the 2018 fiscal year fourth quarter and EBITDA from continuing operations of $2,948,000 for the 2019 fiscal year third quarter. EBITDA from continuing operations was $10,248,000 for the current fiscal year compared to $4,704,000 for last fiscal year.

In the 2019 fiscal year fourth quarter, the Company recorded a one-time tax charge 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 dividend paid in February 2019.

In the 2018 fiscal year fourth quarter, the Company recorded a one-time tax benefit of $18,157,000 related to the Tax Cuts and Jobs Act enacted in December 2017. Additionally, in the 2018 fiscal year fourth quarter, the Company recorded pre-tax restructuring charges of $146,000, a pre-tax loss on the sales of marketable securities of $1,342,000, pre-tax deferred financing costs of $144,000 related to the early termination of the HSBC Bank Credit Agreement and a pre-tax stock option modification charge of $513,000. The restructuring charges related to the closure of the Company’s facility in Waterbury, Connecticut. The loss on the sales of marketable securities was in connection with the liquidation of securities to repatriate overseas funds to pay off the HSBC loan of $68,500,000 and to pay a special cash dividend of $3.00 per share in February 2018. 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 2018.

Pre-tax earnings from continuing operations were $2,926,000 for the 2019 fiscal year fourth quarter compared to a pre-tax loss from continuing operations of $1,403,000 for the 2018 fiscal year fourth quarter and pre-tax earnings from continuing operations of $2,694,000 for the 2019 fiscal year third quarter. Pre-tax earnings from continuing operations were $8,097,000 for the fiscal year ended March 3, 2019 compared to $310,000 for last fiscal year.

Pre-tax earnings from continuing operations before special items were $4,952,000 for the 2019 fiscal year fourth quarter compared to $742,000 for the 2018 fiscal year fourth quarter and $2,694,000 for the 2019 fiscal year third quarter. Pre-tax earnings from continuing operations before special items were $10,123,000 for the fiscal year ended March 3, 2019 compared to $2,455,000 for last fiscal year.

Park reported basic and diluted earnings per share from continuing operations of $0.08 for the 2019 fiscal year fourth quarter compared to $0.85 for the 2018 fiscal year fourth quarter and $0.10 for the 2019 fiscal year third quarter. Basic and diluted earnings per share from continuing operations before special items were $0.19 for the 2019 fiscal year fourth quarter compared to $0.03 for the 2018 fiscal year fourth quarter and $0.10 for the 2019 fiscal year third quarter. 

Park reported basic and diluted earnings per share from continuing operations of $0.31 for the 2019 fiscal year compared to $0.91 for the 2018 fiscal year. Basic and diluted earnings per share from continuing operations before special items were $0.39 for the 2019 fiscal year compared to $0.10 for 2018 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 and the required passcode is 6645627.

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 Thursday, May 23, 2019.  The conference call replay can be accessed by dialing (855) 859-2056 in the United States and Canada and (404) 537-3406 in other countries and entering passcode 6645627 or on the Company's web site at www.parkelectro.com/investor/investor.html.

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.parkelectro.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 one-time tax benefits, restructuring and facility closure costs, losses on sales of marketable securities, deferred financing charges, stock option modification charges, 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 Electrochemical Corp. is an Aerospace Company which 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 thirdary 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 patented composite Sigma Strut and Alpha Strut 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.parkelectro.com

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

               
 14 Weeks Ended  13 Weeks Ended 53 Weeks Ended  52 Weeks Ended 
         
  March 3,
 2019
  February 25,
2018
  November 25,
2018
 March 3,
 2019
  February 25,
2018
 
 Sales$  16,659   $  9,920   $  12,853 $  51,116   $  40,230  
               
 Net Earnings before Special Items1$  3,944   $  659   $  2,078 $  7,874   $  1,934  
 Special Items, Net of Tax:             
   Stock Option Modifications   (408)     (322)     -    (408)     (322) 
   Restructuring Charges   -      (92)     -    -      (92) 
   Loss on Sales of Marketable Securities   (1,160)     (1,114)     -    (1,160)     (1,114) 
   Acceleration of Deferred Financing Costs   -      (91)     -    -      (91) 
   Tax Cut and Jobs Act   (788)     18,157      -    -      18,157  
   Net Earnings from Continuing Operations$  1,588   $  17,197   $  2,078 $  6,306   $  18,472  
               
   Earnings from Discontinued Operations, Net of Tax$  102,398   $  768   $  1,613 $  107,239   $  2,123  
               
 Net Earnings$  103,986   $  17,965   $  3,691 $  113,545   $  20,595  
               
 Basic Earnings per Share:             
   Basic Earnings before Special Items1$  0.19   $  0.03   $  0.10 $  0.39   $  0.10  
   Special Items:             
   Stock Option Modifications   (0.02)     (0.02)     -     (0.02)     (0.02) 
   Restructuring Charges   -       -       -     -       -   
   Loss on Sales of Marketable Securities   (0.05)     (0.06)     -     (0.06)     (0.06) 
   Acceleration of Deferred Financing Costs   -       -       -     -       -   
   Tax Cut and Jobs Act   (0.04)     0.90      -     -       0.89  
   Basic Earnings per Share from Continuing Operations$  0.08   $  0.85   $  0.10 $  0.31   $  0.91  
               
   Basic Earnings per Share from Discontinued Operations   5.02      0.04      0.08    5.29      0.11  
               
   Basic Earnings per Share$  5.10   $  0.89   $  0.18 $  5.60   $  1.02  
               
               
               
   Diluted Earnings before Special Items1$  0.19   $  0.03   $  0.10 $  0.39   $  0.10  
   Special Items:             
   Stock Option Modifications   (0.02)     (0.02)     -     (0.02)     (0.02) 
   Restructuring Charges   -       -       -     -       -   
   Loss on Sales of Marketable Securities   (0.05)     (0.05)     -     (0.06)     (0.06) 
   Acceleration of Deferred Financing Costs   -       -       -     -       -   
   Tax Cut and Jobs Act   (0.04)     0.89      -     -       0.89  
   Diluted Earnings per Share from Continuing Operations$  0.08   $  0.85   $  0.10 $  0.31   $  0.91  
               
   Diluted Earnings per Share from Discontinued Operations   4.99      0.04      0.08    5.26      0.11  
               
   Diluted Earnings per Share$  5.07   $  0.89   $  0.18 $  5.57   $  1.02  
               
 Weighted Average Shares Outstanding:             
   Basic   20,370      20,238      20,278    20,288      20,237  
   Diluted   20,501      20,311      20,352    20,385      20,267  
             
 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 3,
2019
 February 25,
2018
 
 Assets(unaudited) (Note 1) 
 Current Assets    
   Cash and Marketable Securities $  151,624 $  108,231 
   Accounts Receivable, Net   9,352    6,961 
   Inventories   5,267    3,955 
   Prepaid Expenses and Other Current Assets   1,690    1,473 
   Current Assets - Discontinued Operations   -     20,648 
   Total Current Assets   167,933    141,268 
      
 Fixed Assets, Net   10,791    9,805 
 Other Assets   10,127    10,188 
 Non Current Assets - Discontinued Operations   -     8,885 
   Total Assets$  188,851 $  170,146 
      
 Liabilities and Shareholders' Equity    
 Current Liabilities    
   Accounts Payable$  3,169 $  1,825 
   Accrued Liabilities   2,920    1,022 
   Income Taxes Payable   5,066    1,456  
   Current Liabilities - Discontinued Operations   -     7,924  
   Total Current Liabilities   11,155    12,227 
      
 Noncurrent Income Taxes Payable   17,669    20,364 
 Deferred Income Taxes   -     1,133 
 Other Liabilities   1,016    314 
 Noncurrent Liabilities - Discontinued Operations   -     847 
   Total Liabilities   29,840    34,885 
      
 Shareholders’ Equity   159,011    135,261 
      
   Total Liabilities and Shareholders' Equity$  188,851 $  170,146 
      
 Additional information    
 Equity per Share$   7.84  $   6.68  
 
 (Note 1) - These amounts have not been audited and are based on the audited financial statements. 
 

 

Comparative statements of operations (in thousands – unaudited):

                
  14 Weeks Ended  13 Weeks Ended  53 Weeks Ended  52 Weeks Ended 
                
  March 3,
 2019
  February 25,
2018
  November 25,
2018
  March 3,
 2019
  February 25,
2018
 
                
 Net Sales$  16,659   $  9,920   $  12,853   $  51,116   $  40,230  
                
 Cost of Sales   10,756      7,102      8,569      34,932      28,942  
                
 Gross Profit   5,903      2,818      4,284      16,184      11,288  
   % of net sales 35.4%   28.4%   33.3%   31.7%   28.1% 
                
 Selling, General & Administrative
  Expenses
   2,768      2,673      1,983      8,968      9,862  
   % of net sales 16.6%   26.9%   15.4%   17.5%   24.5% 
                
 Restructuring Charges   -       146      -       -       146  
                
 Earnings from Operations   3,135      (1)     2,301      7,216      1,280  
                
 Interest:              
   Interest Income   1,289      407      393      2,379      2,641  
                
   Loss on Sales of Marketable Securities   (1,498)     (1,342)     -       (1,498)     (1,342) 
                
   Interest Expense   -       467      -       -       2,269  
                
 Net Interest and Other Income   (209)     (1,402)     393      881      (970) 
                
 Earnings/(Loss) before Income Taxes   2,926      (1,403)     2,694      8,097      310  
                
 Income Tax Provision/(Benefit)   1,338      (18,600)     616      1,791      (18,162) 
                
 Net Earnings from continuing operations   1,588      17,197      2,078      6,306      18,472  
   % of net sales 9.5%   173.4%   16.2%   12.3%   45.9% 
                
 Earnings from discontinued operations,
  net of tax
   102,398      768      1,613      107,239      2,123  
                
 Net Earnings$  103,986   $  17,965   $  3,691   $  113,545   $  20,595  
   % of net sales 624.2%   181.1%   28.7%   222.1%   51.2% 
                

 

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

                     
  14 Weeks Ended
March 3, 2019
  13 Weeks Ended
February 25, 2018
  13 Weeks Ended
November 25, 2018
  GAAP Specials
Items
 Before
Special Items
  GAAP Specials
Items
 Before
Special Items
  GAAP Specials
Items
 Before
Special Items
                     
 Selling, General & Administrative
  Expenses
$  2,768  $  (528) $  2,240   $  2,673  $  (513) $  2,160   $  1,983  $  -   $  1,983 
   % of net sales 16.6%    13.4%   26.9%    21.8%   15.4%    15.4%
                     
 Restructuring Charges   -      -      -       146     (146)    -       -      -      -  
   % of net sales 0.0%    0.0%   1.5%    0.0%   0.0%    0.0%
                     
 Earnings from Operations   3,135     528     3,663      (1)    659     658      2,301     -      2,301 
   % of net sales 18.8%    22.0%   0.0%    6.6%   17.9%    17.9%
                     
 Interest Income   1,289     -      1,289      407     -      407      393     -      393 
   % of net sales 7.7%    7.7%   4.1%    4.1%   3.1%    3.1%
                     
 Loss on Sales of Marketable Securities   (1,498)    1,498     -       (1,342)    1,342     -       -      -      -  
   % of net sales -9.0%    0.0%   -13.5%    0.0%   0.0%    0.0%
                     
 Interest Expense   -      -      -       467     (144)    323      -      -      -  
   % of net sales 0.0%    0.0%   4.7%    3.3%   0.0%    0.0%
                     
 Net Interest and Other Income   (209)    1,498     1,289      (1,402)    1,486     84      393     -      393 
   % of net sales -1.3%    7.7%   -14.1%    0.8%   3.1%    3.1%
                     
 Earnings/(Loss) before Income Taxes   2,926     2,026     4,952      (1,403)    2,145     742      2,694     -      2,694 
   % of net sales 17.6%    29.7%   -14.1%    7.5%   21.0%    21.0%
                     
 Income Tax Provision/(Benefit)   1,338     (330)    1,008      (18,600)    18,683     83      616       616 
   Effective Tax Rate 45.7%    20.4%   1325.7%    11.2%   22.9%    22.9%
                     
 Net Earnings from continuing operations   1,588     2,356     3,944      17,197    (16,538)    659      2,078     -      2,078 
   % of net sales 9.5%    23.7%   173.4%    6.6%   16.2%    16.2%
                     
 Earnings from discontinued operations, net of tax   102,398    (102,128)    270      768     545     1,313      1,613     (1,565)    48 
   % of net sales 614.7%    1.6%   7.7%    13.2%   12.5%    0.4%
                     
 Net Earnings   103,986     (99,772)    4,214      17,965    (15,993)    1,972      3,691     (1,565)    2,126 
   % of net sales 624.2%    25.3%   181.1%    19.9%   28.7%    16.5%
                     
                     
 Earnings from Operations       3,663          658          2,301 
 Addback non-cash expenses:                   
   Depreciation       462          457          453 
   Stock Option Expense       126          223          194 
 EBITDA       4,251          1,338          2,948 
                     
                     

Reconciliation of non-GAAP financial measures
(in thousands – unaudited) continued
  
                     
  53 Weeks Ended
March 3, 2019
  52 Weeks Ended
February 25, 2018
       
  GAAP Specials
Items
 Before
Special Items
  GAAP Specials
Items
 Before
Special Items
       
 Selling, General & Administrative
  Expenses
$  8,968  $  (528) $  8,440   $  9,862  $  (513) $  9,349        
   % of net sales 17.5%    16.5%   24.5%    23.2%       
                     
 Restructuring Charges   -      -      -       146     (146)    -         
   % of net sales 0.0%    0.0%   0.4%    0.0%       
                     
 Earnings from Operations   7,216     528     7,744      1,280     659     1,939        
   % of net sales 14.1%    15.1%   3.2%    4.8%       
                     
 Interest Income   2,379       2,379      2,641     -      2,641        
   % of net sales 4.7%    4.7%   6.6%    6.6%       
                     
 Loss on Sales of Marketable Securities   (1,498)    1,498     -       (1,342)    1,342     -         
   % of net sales -2.9%    0.0%   -3.3%    0.0%       
                     
 Interest Expense   -      -      -       2,269     (144)    2,125        
   % of net sales 0.0%    0.0%   5.6%    5.3%       
                     
 Net Interest and Other Income   881     1,498     2,379      (970)    1,486     516        
   % of net sales 1.7%    4.7%   -2.4%    1.3%       
                     
 Earnings before Income Taxes   8,097     2,026     10,123      310     2,145     2,455        
   % of net sales 15.8%    19.8%   0.8%    6.1%       
                     
 Income Tax Provision   1,791     458     2,249      (18,162)    18,683     521        
   Effective Tax Rate 22.1%    22.2%   -5858.7%    21.2%       
                     
 Net Earnings from continuing operations   6,306     1,568     7,874      18,472    (16,538)    1,934        
   % of net sales 12.3%    15.4%   45.9%    4.8%       
                     
 Earnings from discontinued operations, net of tax   107,239    (103,203)    4,036      2,123     3,873     5,996        
   % of net sales 209.8%    7.9%   5.3%    14.9%       
                     
 Net Earnings   113,545    (101,635)    11,910      20,595    (12,665)    7,930          
   % of net sales 222.1%    23.3%   51.2%    19.7%       
                     
                     
 Earnings from Operations       7,744          1,939        
 Addback non-cash expenses:                   
   Depreciation       1,784          1,833        
   Stock Option Expense       720          932        
 EBITDA       10,248          4,704        

 


Martina Bar Kochva                                                                                                                       
48 South Service Road
Melville, NY 11747
(631) 465-3600