EX-99.1 2 ex_518594.htm EXHIBIT 99.1 ex_518594.htm

Exhibit 99.1

 

 

ex_518594img001.jpg

 

  NEWS RELEASE
Contact:         Donna D’Amico-Annitto  

486 North Oliver Road, Bldg. Z

Newton, Kansas 67114

(316) 283-6500

 

PARK AEROSPACE CORP. REPORTS FOURTH QUARTER

AND FISCAL YEAR RESULTS

 

Newton, Kansas, Thursday, May 11, 2023…..Park Aerospace Corp. (NYSE-PKE) reported results for the 2023 fiscal year fourth quarter and full fiscal year ended February 26, 2023. 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/ssv8op68 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.

 

Park reported net sales of $13,530,000 for the 2023 fiscal year fourth quarter ended February 26, 2023 compared to $12,502,000 for the 2022 fiscal year fourth quarter ended February 27, 2022 and $13,867,000 for the 2023 fiscal year third quarter ended November 27, 2022. Park’s net sales for the fiscal year ended February 26, 2023 were $54,055,000 compared to $53,578,000 for the fiscal year ended February 27, 2022. Net earnings for the 2023 fiscal year fourth quarter were $4,706,000 compared to $1,956,000 for the 2022 fiscal year fourth quarter and $2,230,000 for the 2023 fiscal year third quarter. Net earnings were $10,731,000 for the 2023 fiscal year compared to $8,464,000 for the 2022 fiscal year.

 

Net earnings before special items for the 2023 fiscal year fourth quarter were $1,976,000 compared to $2,018,000 for the 2022 fiscal year fourth quarter and $2,383,000 for the 2023 fiscal year third quarter. Net earnings before special items for the fiscal year ended February 26, 2023 were $8,154,000 compared to $8,723,000 for the 2022 fiscal year.

 

Adjusted EBITDA for the 2023 fiscal year fourth quarter was $2,625,000 compared to $3,083,000 for the 2022 fiscal year fourth quarter and $3,321,000 for the 2023 fiscal year third quarter. Adjusted EBITDA for the 2023 fiscal year was $11,459,000 compared to $13,089,000 for the 2022 fiscal year.

 

The Company recognized a tax benefit of $2,791,000 in the 2023 fiscal year fourth quarter and fiscal year primarily from the reduction of uncertain tax positions related to expiring statute of limitations on tax positions taken in prior years regarding the taxability of funds repatriated from the Company’s subsidiary in Singapore and the Company recorded $61,000 and $214,000 of additional tax expense for tax deductions becoming unavailable related to stock options expiring unexercised in the 2023 fiscal year fourth quarter and fiscal year, respectively. During the prior year, the Company recorded restructuring charges of $62,000 in the 2022 fiscal year fourth quarter and $259,000 in the 2022 fiscal year, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd idle facility in Singapore.

 

Park reported basic and diluted earnings per share of $0.23 for the 2023 fiscal year fourth quarter compared to $0.10 for the 2022 fiscal year fourth quarter and $0.11 for the 2023 fiscal year third quarter. Basic and diluted earnings per share before special items were $0.10 for the 2023 fiscal year fourth quarter compared to $0.10 for the 2022 fiscal year fourth quarter and $0.12 for the 2023 fiscal year third quarter.

 

Park reported basic and diluted earnings per share of $0.52 for the 2023 fiscal year compared to $0.41 for the 2022 fiscal year. Basic and diluted earnings per share before special items were $0.40 for the 2023 fiscal year compared to basic earnings per share before special items of $0.43 for the 2022 fiscal year and diluted earnings per share before special items of $0.42 for the 2022 fiscal year.

 

1
 

 

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 (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required passcode for attendance by phone is 13738134.

 

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 25, 2023. The conference call replay will be available at https://edge.media-server.com/mmc/p/ssv8op68 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 13738134.

 

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 reduction in uncertain tax positions, tax deductions becoming unavailable and restructuring charges. 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 and 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 website at www.parkaerospace.com

 

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

 

   

13 Weeks Ended

    

52 Weeks Ended

  
                                         
   

February 26,

2023

    

February 27,

2022

    

November 27,

2022

    

February 26,

2023

    

February 27,

2022

  

Sales

   $ 13,530     $ 12,502     $ 13,867     $ 54,055     $ 53,578  
                                         

Net Earnings before Special Items1

   $ 1,976     $ 2,018     $ 2,383     $ 8,154     $ 8,723  

Special Items, Net of Tax:

                                        

Tax Impact of Cancelled Stock Options

     (61 )     -       (153 )     (214 )     -  

Reduction in Uncertain Tax Positions

     2,791       -       -       2,791       -  

Restructuring Charges

     -       (62 )     -       -       (259 )
                                         

Net Earnings

   $ 4,706     $ 1,956     $ 2,230     $ 10,731     $ 8,464  
                                         

Basic Earnings per Share:

                                        

Basic Earnings before Special Items1

   $ 0.10     $ 0.10     $ 0.12     $ 0.40     $ 0.43  

Special Items:

                                        

Tax Impact of Cancelled Stock Options

     -       -       (0.01 )     (0.01 )     -  

Reduction in Uncertain Tax Positions

     0.13       -       -       0.13       -  

Restructuring Charges

     -       -       -       -       (0.02 )
                                         

Basic Earnings per Share

   $ 0.23     $ 0.10     $ 0.11     $ 0.52     $ 0.41  
                                         
                                         

Diluted Earnings before Special Items1

   $ 0.10     $ 0.10     $ 0.12     $ 0.40     $ 0.42  

Special Items:

                                        

Tax Impact of Cancelled Stock Options

     -       -       (0.01 )     (0.01 )     -  

Reduction in Uncertain Tax Positions

     0.13       -       -       0.13       -  

Restructuring Charges

     -       -       -       -       (0.01 )
                                         

Diluted Earnings per Share

   $ 0.23     $ 0.10     $ 0.11     $ 0.52     $ 0.41  
                                         

Weighted Average Shares Outstanding:

                                        

Basic

     20,471       20,458       20,471       20,465       20,422  

Diluted

     20,518       20,508       20,510       20,509       20,551  

 

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

 

3
 

 

Comparative balance sheets (in thousands):

 

   

February 26, 2023

    

February 27, 2022

  

 

  

(unaudited)

          
Assets                

Current Assets

                

Cash and Marketable Securities

   $ 105,440     $ 110,361  

Accounts Receivable, Net

     9,989       8,339  

Inventories

     6,768       4,657  

Prepaid Expenses and Other Current Assets

     2,844       3,082  

Total Current Assets

     125,041       126,439  
                 

Fixed Assets, Net

     24,251       24,333  

Operating Right-of-use Assets

     150       203  

Other Assets

     9,891       9,912  

Total Assets

   $ 159,333     $ 160,887  
                 

Liabilities and Shareholders' Equity

                

Current Liabilities

                

Accounts Payable

   $ 4,545     $ 2,534  

Accrued Liabilities

     1,346       1,494  

Dividend Payable

     20,471       -  

Operating Lease Liability

     53       53  

Income Taxes Payable

     2,171       2,211  

Total Current Liabilities

     28,586       6,292  
                 

Long-term Operating Lease Liability

     129       174  

Non-current Income Taxes Payable

     10,938       12,621  

Deferred Income Taxes

     1,995       1,671  

Other Liabilities

     1,751       4,497  

Total Liabilities

     43,399       25,255  
                 

Shareholders’ Equity

     115,934       135,632  
                 

Total Liabilities and Shareholders' Equity

   $ 159,333     $ 160,887  
                 

Additional information

                

Equity per Share

   $ 5.66     $ 6.63  

 

4
 

 

Comparative statements of operations (in thousands – unaudited):

 

   

13 Weeks Ended

    

52 Weeks Ended

  
                                         
   

February 26,

2023

    

February 27,

2022

    

November 27,

2022

    

February 26,

2023

    

February 27,

2022

  
                                         

Net Sales

   $ 13,530     $ 12,502     $ 13,867     $ 54,055     $ 53,578  
                                         

Cost of Sales

     9,679       8,304       9,423       37,582       35,661  
                                         

Gross Profit

     3,851       4,198       4,444       16,473       17,917  

% of net sales

     28.5 %     33.6 %     32.0 %     30.5 %     33.4 %
                                         

Selling, General & Administrative Expenses

     1,631       1,520       1,523       6,519       6,249  

% of net sales

     12.1 %     12.2 %     11.0 %     12.1 %     11.7 %
                                         

Restructuring Charges

     -       62       -       -       259  

% of net sales

     0.0 %     0.5 %     0.0 %     0.0 %     0.5 %
                                         

Earnings from Operations

     2,220       2,616       2,921       9,954       11,409  
                                         

Interest and Other Income:

                                        

Interest Income

     425       89       299       1,078       375  
                                         

Earnings from Operations before Income Taxes

     2,645       2,705       3,220       11,032       11,784  
                                         

Income Tax (Benefit) Provision

     (2,061 )     749       990       301       3,320  
                                         

Net Earnings

   $ 4,706     $ 1,956     $ 2,230     $ 10,731     $ 8,464  

% of net sales

     34.8 %     15.6 %     16.1 %     19.9 %     15.8 %

 

5
 

 

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

 

 

   

13 Weeks Ended
February 26, 2023

    

13 Weeks Ended
February 27, 2022

    

13 Weeks Ended
November 27, 2022

  
   

GAAP

    

Specials Items

    

Before Special Items

    

GAAP

    

Specials Items

    

Before Special Items

    

GAAP

    

Specials Items

    

Before Special Items

  
                                                                         

Restructuring Charges

     -       -       -       62       (62 )     -       -       -       -  

% of net sales

     0.0 %             0.0 %     0.5 %             0.0 %     0.0 %             0.0 %
                                                                         

Earnings from Operations

     2,220       -       2,220       2,616       62       2,678       2,921       -       2,921  

% of net sales

     16.4 %             16.4 %     20.9 %             21.4 %     21.1 %             21.1 %
                                                                         

Interest Income

     425       -       425       89       -       89       299       -       299  

% of net sales

     3.1 %             3.1 %     0.7 %             0.7 %     2.2 %             2.2 %
                                                                         

Earnings from Operations before Income Taxes

     2,645       -       2,645       2,705       62       2,767       3,220       -       3,220  

% of net sales

     19.5 %             19.5 %     21.6 %             22.1 %     23.2 %             23.2 %
                                                                         

Income Tax (Benefit) Provision

     (2,061 )     2,730       669       749       -       749       990       (153 )     837  

Effective Tax Rate

     -77.9 %             25.3 %     27.7 %             27.1 %     30.7 %             26.0 %
                                                                         

Net Earnings

     4,706       (2,730 )     1,976       1,956       62       2,018       2,230       153       2,383  

% of net sales

     34.8 %             14.6 %     15.6 %             16.1 %     16.1 %             17.2 %
                                                                         
                                                                         

Net Earnings Before Special Items

               1,976                       2,018                       2,383  

Addback non-cash expenses:

                                                                        

Income Tax Provision

                     669                       749                       837  

Interest Income

                     (425 )                     (89 )                     (299 )

Depreciation

                     310                       331                       305  

Stock Option Expense

                     95                       74                       95  

Adjusted EBITDA

                     2,625                       3,083                       3,321  

 

 

6
 

 

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

 

   

52 Weeks Ended
February 26, 2023

    

52 Weeks Ended
February 27, 2022

  
   

GAAP

    

Specials Items

    

Before Special Items

    

GAAP

    

Specials Items

    

Before Special Items

  

Restructuring Charge

     -       -       -       259       (259 )     -  

% of net sales

     0.0 %             0.0 %     0.5 %             0.0 %
                                                 

Earnings from Operations

     9,954       -       9,954       11,409       259       11,668  

% of net sales

     18.4 %             18.4 %     21.3 %             21.8 %
                                                 

Interest Income

     1,078       -       1,078       375       -       375  

% of net sales

     2.0 %             2.0 %     0.7 %             0.7 %
                                                 

Earnings from Operations before Income Taxes

     11,032       -       11,032       11,784       259       12,043  

% of net sales

     20.4 %             20.4 %     22.0 %             22.5 %
                                                 

Income Tax Provision

     301       2,577       2,878       3,320       -       3,320  

Effective Tax Rate

     2.7 %             26.1 %     28.2 %             27.6 %
                                                 

Net Earnings

     10,731       (2,577 )     8,154       8,464       259       8,723  

% of net sales

     19.9 %             15.1 %     15.8 %             16.3 %
                                                 
                                                 

Net Earnings Before Special Items

               8,154                       8,723  

Addback non-cash expenses:

                                                

Income Tax Provision

                     2,878                       3,320  

Interest Income

                     (1,078 )                     (375 )

Depreciation

                     1,136                       1,136  

Stock Option Expense

                     369                       285  

Adjusted EBITDA

                     11,459                       13,089  

 

 

7