Park Aerospace Corp. Reports Third Quarter Results

NEWTON, Kansas, Jan. 07, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2021 fiscal year third quarter ended November 29, 2020. 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. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/fpex6v6n 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 $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020 compared to $15,847,000 for the 2020 fiscal year third quarter ended December 1, 2019 and $9,250,000 for the 2021 fiscal year second quarter ended August 30, 2020.  Park’s net sales from continuing operations for the nine months ended November 29, 2020 were $31,835,000 compared to $44,520,000 for the nine months ended December 1, 2019. Net earnings from continuing operations for the 2021 fiscal year third quarter were $1,037,000 compared to $2,806,000 for the 2020 fiscal year third quarter and $1,151,000 for the 2021 fiscal year second quarter. Net earnings from continuing operations were $4,160,000 for the current year’s first nine months compared to $7,572,000 for last year’s first nine months.

EBITDA from continuing operations for the 2021 fiscal year third quarter was $1,380,000 compared to $3,622,000 for the 2020 fiscal year third quarter and $1,418,000 for the 2021 fiscal year second quarter.

For the nine months ended November 29, 2020, Park reported net earnings from continuing operations before special items of $4,160,000 compared to $7,716,000 for last fiscal year’s first nine months.  In the 2020 fiscal year’s first nine months, 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. EBITDA from continuing operations for the current year’s first nine months was $5,162,000 compared to $9,400,000 for last year’s first nine months.

Park reported basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year third quarter compared to $0.14 for the 2020 fiscal year third quarter and $0.06 for the 2021 fiscal year second quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.20 for the 2021 fiscal year’s first nine months compared to $0.37 for the 2020 fiscal year’s first nine months. Basic and diluted earnings per share from continuing operations before special items were $0.20 for the 2021 fiscal year’s first nine months compared to basic earnings per share from continuing operations before special items of $0.38 and diluted earnings per share from continuing operations before special items of $0.37 for the 2020 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 4883755.

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 13, 2021.  The conference call replay will be available at https://edge.media-server.com/mmc/p/fpex6v6n 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 4883755. 

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 one-time tax charge 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. 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):

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):