EX-99.1 2 ex_262244.htm EXHIBIT 99.1 ex_262244.htm

Exhibit 99.1

 

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

 

PARK AEROSPACE CORP. REPORTS FIRST QUARTER RESULTS

 

Newton, Kansas, Thursday, July 8, 2021…..Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year first quarter ended May 30, 2021. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, 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/m7rvt55d 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 $13,594,000 for the 2022 fiscal year first quarter ended May 30, 2021 compared to $12,213,000 for the 2021 fiscal year first quarter ended May 31, 2020 and $14,441,000 for the 2021 fiscal year fourth quarter ended February 28, 2021. Net earnings from continuing operations for the 2022 fiscal year first quarter were $2,745,000 compared to $1,972,000 for the 2021 fiscal year first quarter and $1,032,000 for the 2021 fiscal year fourth quarter.

 

Net earnings from continuing operations before special items for the 2022 fiscal year first quarter were $2,759,000 compared to $1,972,000 for the 2021 fiscal year first quarter and $2,335,000 for the 2021 fiscal year fourth quarter. Adjusted EBITDA from continuing operations for the 2022 fiscal year first quarter was $4,104,000 compared to $2,364,000 for the 2021 fiscal year first quarter and $3,257,000 for the 2021 fiscal year fourth quarter.

 

The Company recorded pretax restructuring charges of $14,000 in the 2022 fiscal year first quarter and $1,570,000 in the 2021 fiscal year fourth quarter, primarily for the impairment of assets at its Park Aerospace Technologies Asia Pte. Ltd facility in Singapore.

 

Park reported basic and diluted earnings per share from continuing operations of $0.13 for the 2022 fiscal year first quarter compared to $0.10 for the 2021 fiscal year first quarter and $0.05 for the 2021 fiscal year fourth quarter. Park reported basic earnings per share from continuing operations before special items of $0.14 and diluted earnings per share from continuing operations before special items of $0.13 for the 2022 fiscal year first quarter compared to basic and diluted earnings per share from continuing operations before special items of to $0.10 for the 2021 fiscal year first quarter and $0.11 for the 2021 fiscal year fourth quarter.

 

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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 1577955.

 

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, July 14, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/m7rvt55d 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 1577955.

 

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 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

 

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

 

 

 

 

   

13 Weeks Ended

  
   

May 30, 2021

    

May 31, 2020

    

February 28, 2021

  

Sales

   $ 13,594     $ 12,213     $ 14,441  
                         

Net Earnings before Special Items1

   $ 2,759     $ 1,972     $ 2,335  

Special Items, Net of Tax:

                        

Restructuring Charges

     (14 )     -       (1,303 )

Net Earnings from Continuing Operations

   $ 2,745     $ 1,972     $ 1,032  
                         

Loss from Discontinued Operations, Net of Tax

   $ -     $ (15 )   $ -  
                         

Net Earnings

   $ 2,745     $ 1,957     $ 1,032  
                         

Basic Earnings per Share:

                        

Basic Earnings before Special Items1

   $ 0.14     $ 0.10     $ 0.11  

Special Items:

                        

Restructuring Charges

     (0.01 )     -       (0.06 )

Basic Earnings per Share from Continuing Operations

   $ 0.13     $ 0.10     $ 0.05  
                         

Basic Loss per Share from Discontinued Operations

     -       -       -  
                         

Basic Earnings per Share

   $ 0.13     $ 0.10     $ 0.05  
                         
                         
                         

Diluted Earnings before Special Items1

   $ 0.13     $ 0.10     $ 0.11  

Special Items:

                        

Restructuring Charges

     -       -       (0.06 )

Diluted Earnings per Share from Continuing Operations

   $ 0.13     $ 0.10     $ 0.05  
                         

Diluted Loss per Share from Discontinued Operations

     -       -       -  
                         

Diluted Earnings per Share

   $ 0.13     $ 0.10     $ 0.05  
                         

Weighted Average Shares Outstanding:

                        

Basic

     20,383       20,402       20,382  

Diluted

     20,710       20,460       20,587  

 

1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

 

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Comparative balance sheets (in thousands):

 

 

 

 

   

May 30,

2021

    

February 28,

2021

  

Assets

  

(unaudited)

          

Current Assets

                

Cash and Marketable Securities

   $ 116,818     $ 116,542  

Accounts Receivable, Net

     7,737       7,633  

Inventories

     4,943       4,794  

Prepaid Expenses and Other Current Assets

     3,476       3,372  

Total Current Assets

     132,974       132,341  
                 

Fixed Assets, Net

     22,491       21,130  

Operating Right-of-use Assets

     90       103  

Other Assets

     9,946       9,938  

Total Assets

   $ 165,501     $ 163,512  
                 

Liabilities and Shareholders' Equity

                

Current Liabilities

                

Accounts Payable

   $ 3,320     $ 3,300  

Accrued Liabilities

     1,588       1,708  

Operating Lease Liability

     21       33  

Income Taxes Payable

     5,739       2,952  

Total Current Liabilities

     10,668       7,993  
                 

Long-term Operating Lease Liability

     87       86  

Non-current Income Taxes Payable

     12,620       14,303  

Deferred Income Taxes

     917       778  

Other Liabilities

     4,445       4,411  

Total Liabilities

     28,737       27,571  
                 

Shareholders’ Equity

     136,764       135,941  
                 

Total Liabilities and Shareholders' Equity

   $ 165,501     $ 163,512  
                 

Additional information

                

Equity per Share

   $ 6.71     $ 6.67  

 

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Comparative statements of operations (in thousands – unaudited):

 

 

 

 

   

13 Weeks Ended

  
                         
   

May 30, 2021

    

May 31, 2020

    

February 28, 2021

  
                         

Net Sales

   $ 13,594     $ 12,213     $ 14,441  
                         

Cost of Sales

     8,122       8,539       10,115  
                         

Gross Profit

     5,472       3,674       4,326  

% of net sales

     40.3 %     30.1 %     30.0 %
                         

Selling, General & Administrative Expenses

     1,648       1,630       1,395  

% of net sales

     12.1 %     13.3 %     9.7 %
                         

Restructuring Charges

     14       -       1,570  

% of net sales

     0.1 %     0.0 %     10.9 %
                         

Earnings from Continuing Operations

     3,810       2,044       1,361  
                         

Interest and Other Income:

                        

Interest Income

     117       656       207  
                         

Earnings from Continuing Operations before Income Taxes

     3,927       2,700       1,568  
                         

Income Tax Provision

     1,182       728       536  
                         

Net Earnings from Continuing Operations

     2,745       1,972       1,032  

% of net sales

     20.2 %     16.1 %     7.1 %
                         

Loss from Discontinued Operations, Net of Tax

     -       (15 )     -  
                         

Net Earnings

   $ 2,745     $ 1,957     $ 1,032  

% of net sales

     20.2 %     16.0 %     7.1 %

 

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

 

 

 

 

   

13 Weeks Ended
May 30, 2021

    

13 Weeks Ended
May 31, 2020

    

13 Weeks Ended
February 28, 2021

  
   

GAAP

    

Specials

Items

    

Before

Special

Items

    

GAAP

    

Specials

Items

    

Before

Special

Items

    

GAAP

    

Specials

Items

    

Before

Special

Items

  
                                                                         

Restructuring Charges

     14       (14 )     -       -       -       -       1,570       (1,570 )     -  

% of net sales

     0.1 %             0.0 %     0.0 %             0.0 %     10.9 %             0.0 %
                                                                         

Earnings from Continuing Operations

     3,810       14       3,824       2,044       -       2,044       1,361       1,570       2,931  

% of net sales

     28.0 %             28.1 %     16.7 %             16.7 %     9.4 %             20.3 %
                                                                         

Interest Income

     117       -       117       656       -       656       207       -       207  

% of net sales

     0.9 %             0.9 %     5.4 %             5.4 %     1.4 %             1.4 %
                                                                         

Earnings from Continuing Operations before Income Taxes

     3,927       14       3,941       2,700       -       2,700       1,568       1,570       3,138  

% of net sales

     28.9 %             29.0 %     22.1 %             22.1 %     10.9 %             21.7 %
                                                                         

Income Tax Provision

     1,182       -       1,182       728       -       728       536       267       803  

Effective Tax Rate

     30.1 %             30.0 %     27.0 %             27.0 %     34.2 %             25.6 %
                                                                         

Net Earnings from Continuing Operations

     2,745       14       2,759       1,972       -       1,972       1,032       1,303       2,335  

% of net sales

     20.2 %             20.3 %     16.1 %             16.1 %     7.1 %             16.2 %
                                                                         

Loss from Discontinued Operations

     -       -       -       (15 )     -       (15 )     -       -       -  

% of net sales

     0.0 %             0.0 %     -0.1 %             -0.1 %     0.0 %             0.0 %
                                                                         

Net Earnings

     2,745       14       2,759       1,957       -       1,957       1,032       1,303       2,335  

% of net sales

     20.2 %             20.3 %     16.0 %             16.0 %     7.1 %             16.2 %
                                                                         
                                                                         

Net Earnings

                     2,759                       1,957                       2,335  
Addback Discontinued Operations and non-cash expenses:                                                                        

Loss from Discontinued Operations

                     -                       15                       -  

Income Tax Provision

                     1,182                       728                       803  

Interest Income

                     (117 )                     (656 )                     (207 )

Depreciation

                     216                       277                       277  

Stock Option Expense

                     64                       43                       49  

EBITDA

                     4,104                       2,364                       3,257  

 

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