EX-99.1 2 ex_819025.htm EXHIBIT 99.1 ex_819025.htm

Exhibit 99.1

 

parkaerologo.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 15, 2025…..Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year fourth quarter and full fiscal year ended March 2, 2025. 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/bnajz2w5 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 $16,939,000 for the 2025 fiscal year fourth quarter ended March 2, 2025 compared to $16,333,000 for the 2024 fiscal year fourth quarter ended March 3, 2024 and $14,408,000 for the 2025 fiscal year third quarter ended December 1, 2024. Park’s net sales for the fiscal year ended March 2, 2025 were $62,026,000 compared to $56,004,000 for the fiscal year ended March 3, 2024. Net earnings for the 2025 fiscal year fourth quarter were $1,246,000 compared to $2,670,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings were $5,882,000 for the fiscal year ended March 2, 2025 compared to $7,473,000 for the fiscal year ended March 3, 2024. The 2025 fiscal year fourth quarter and 2025 fiscal year were comprised of 13 weeks and 52 weeks, respectively, while the 2024 fiscal year fourth quarter and 2024 fiscal year were comprised of 14 weeks and 53 weeks, respectively.

 

Net earnings before special items for the 2025 fiscal year fourth quarter were $2,417,000 compared to $2,308,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings before special items for the fiscal year ended March 2, 2025 were $7,867,000 compared to $7,664,000 for the fiscal year ended March 3, 2024.

 

Adjusted EBITDA for the 2025 fiscal year fourth quarter was $3,418,000 compared to $3,201,000 for the 2024 fiscal year fourth quarter and $2,415,000 for the 2025 fiscal year third quarter. Adjusted EBITDA for the fiscal year 2025 was $11,649,000 compared to $10,989,000 for fiscal year 2024.

 

During the 2025 fiscal year, the Company recorded $1,098,000 of pre-tax charges related to storm damage to the Company’s facilities in Newton Kansas. During the 2025 fiscal year fourth quarter, the Company recorded a non-cash tax charge of $2,147,000 related to the potential repatriation by the Company of undistributed foreign earnings on certain funds held by the Company’s Singapore subsidiary. The Company also recorded a tax benefit of $957,000 in the 2025 fiscal year fourth quarter related to the “running” or expiration of the statute of limitations for certain provisions for uncertain tax positions previously established by the Company. During the 2024 fiscal year, 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 cash 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 cash dividend in the 2024 fiscal year first quarter. The Company recorded $70,000 of pre-tax costs to settle an insurance claim as the result of the bankruptcy of an insurer and $38,000 of pre-tax recruiting fees in the 2024 fiscal year fourth quarter and fiscal year. The Company recognized a tax benefit of $657,000 in the 2024 fiscal year fourth quarter and fiscal year primarily from the reductions of uncertain tax positions related to expiring statutes 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 $224,000 of additional tax expense for tax deductions becoming unavailable related to stock options expiring unexercised in the 2024 fiscal year fourth quarter and fiscal year. 

 

 
 

 

Park reported basic and diluted earnings per share of $0.06 for the 2025 fiscal year fourth quarter compared to $0.13 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter. Basic and diluted earnings per share before special items were $0.12 for the 2025 fiscal year fourth quarter compared to $0.11 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter.

 

Park reported basic and diluted earnings per share of $0.29 for the 2025 fiscal year compared to $0.37 for the 2024 fiscal year. Basic and diluted earnings per share before special items were $0.39 for the 2025 fiscal year compared to $0.38 for the 2024 fiscal year.

 

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 13753688.

 

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, May 22, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/bnajz2w5 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 13753688.

 

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 website 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 charge related to storm damage, a non-cash tax charge, reductions in uncertain tax positions, activist shareholder defense costs, losses on sales of investments, charges for modification of previously granted stock options, tax deductions becoming unavailable, costs to settle an insurance claim, and recruiting fees. 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 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

    

14 Weeks

Ended

    

13 Weeks

Ended

    

52 Weeks

Ended

    

53 Weeks

Ended

  
   

March 2,
2025

    

March 3,

2024

    

December 1,

2024

    

March 2,
2025

    

March 3,

2024

  

Sales

   $ 16,939     $ 16,333     $ 14,408     $ 62,026     $ 56,004  
                                         

Net Earnings before Special Items1

   $ 2,417     $ 2,308     $ 1,577     $ 7,867     $ 7,664  

Special Items, Net of Tax:

                                        

Activist Shareholder Defense Costs

     -       -       -       -       (570 )

Stock Option Modification

     -       -       -       -       (109 )

Loss on Sale of Marketable Securities

     -       -       -       -       (65 )

Insurer Bankruptcy Cost

     -       (70 )     -       -       (70 )

Recruiting Fees

     -       (38 )     -       -       (38 )

Storm Damage Charge

     -       -       -       (1,098 )     -  

Income Tax Effect on Pretax Special Items

     19       37       -       303       228  

Tax Provision on Foreign Earnings

     (2,147 )     -       -       (2,147 )     -  

Reduction in Uncertain Tax Positions

     957       657       -       957       657  

Tax Impact of Cancelled Stock Options

     -       (224 )     -       -       (224 )

Net Earnings

   $ 1,246     $ 2,670     $ 1,577     $ 5,882     $ 7,473  
                                         
                                         

Basic Earnings per Share:

                                        

Basic Earnings before Special Items1

   $ 0.12     $ 0.11     $ 0.08     $ 0.39     $ 0.38  

Special Items:

                                        

Activist Shareholder Defense Costs

     -       -       -       -       (0.03 )

Stock Option Modification

     -       -       -       -       (0.01 )

Loss on Sale of Marketable Securities

     -       -       -       -       -  

Storm Damage Charge

     -       -       -       (0.05 )     -  

Income Tax Effect on Pretax Special Items

     -       -       -       0.01       0.01  

Tax Provision on Foreign Earnings

     (0.11 )     -       -       (0.11 )     -  

Reduction in Uncertain Tax Positions

     0.05       0.03       -       0.05       0.03  

Tax Impact of Cancelled Stock Options

     -       (0.01 )     -       -       (0.01 )

Basic Earnings per Share

   $ 0.06     $ 0.13     $ 0.08     $ 0.29     $ 0.37  
                                         
                                         
                                         

Diluted Earnings before Special Items1

   $ 0.12     $ 0.11     $ 0.08     $ 0.39     $ 0.38  

Special Items:

                                        

Activist Shareholder Defense Costs

     -       -       -       -       (0.03 )

Stock Option Modification

     -       -       -       -       (0.01 )

Loss on Sale of Marketable Securities

     -       -       -       -       -  

Insurer Bankruptcy Cost

     -       -       -       -       -  

Recruiting Fees

     -       -       -       -       -  

Storm Damage Charge

     -       -       -       (0.05 )     -  

Income Tax Effect on Pretax Special Items

     -       -       -       0.01       0.01  

Tax Provision on Foreign Earnings

     (0.11 )     -       -       (0.11 )     -  

Reduction in Uncertain Tax Positions

     0.05       0.03       -       0.05       0.03  

Tax Impact of Cancelled Stock Options

     -       (0.01 )     -       -       (0.01 )

Diluted Earnings per Share

   $ 0.06     $ 0.13     $ 0.08     $ 0.29     $ 0.37  
                                         
                                         

Weighted Average Shares Outstanding:

                                        

Basic

     19,945       20,253       19,982       20,099       20,304  

Diluted

     20,022       20,357       20,077       20,190       20,393  

 

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

 

 

- 3 -
 

 

Comparative balance sheets (in thousands):

 

   

March 2,
2025

    

March 3,
2024

  

Assets

  

(unaudited)

          

Current Assets

                

Cash and Marketable Securities

   $ 68,834     $ 77,211  

Accounts Receivable, Net

     12,903       12,381  

Inventories

     7,213       6,404  

Prepaid Expenses and Other Current Assets

     1,344       2,849  

Total Current Assets

     90,294       98,845  
                 

Fixed Assets, Net

     21,650       23,499  

Operating Right-of-use Assets

     308       95  

Other Assets

     9,856       9,870  

Total Assets

   $ 122,108     $ 132,309  
                 

Liabilities and Shareholders' Equity

                

Current Liabilities

                

Accounts Payable

   $ 2,513     $ 3,514  

Accrued Liabilities

     1,318       1,986  

Operating Lease Liability

     40       53  

Income Taxes Payable

     5,390       4,105  

Total Current Liabilities

     9,261       9,658  
                 

Long-term Operating Lease Liability

     318       82  

Non-current Income Taxes Payable

     -       5,259  

Deferred Income Taxes

     5,304       3,222  

Other Liabilities

     71       1,174  

Total Liabilities

     14,954       19,395  
                 

Shareholders’ Equity

     107,154       112,914  
                 

Total Liabilities and Shareholders' Equity

   $ 122,108     $ 132,309  
                 

Additional information (unaudited)

                

Equity per Share

   $ 5.36     $ 5.58  

    

- 4 -
 

 

Comparative statements of operations (in thousands – unaudited):

 

   

13 Weeks

Ended

    

14 Weeks

Ended

    

13 Weeks

Ended

    

52 Weeks

Ended

    

53 Weeks

Ended

  
   

March 2,
2025

    

March 3,

2024

    

December 1,

2024

    

March 2,
2025

    

March 3,

2024

  
                                         

Net Sales

   $ 16,939     $ 16,333     $ 14,408     $ 62,026     $ 56,004  
                                         

Cost of Sales

     11,981       11,880       10,580       44,384       39,470  
                                         

Gross Profit

     4,958       4,453       3,828       17,642       16,534  

% of net sales

     29.3 %     27.3 %     26.6 %     28.4 %     29.5 %
                                         

Selling, General & Administrative Expenses

     2,107       1,882       1,982       8,246       8,154  

% of net sales

     12.4 %     11.5 %     13.8 %     13.3 %     14.6 %
                                         

Earnings from Operations

     2,851       2,571       1,846       9,396       8,380  
                                         
                                         

Storm Damage Charge

     -       -       -       (1,098 )     -  

Interest and Other Income:

                                        

Interest Income

     335       329       290       1,209       1,053  
                                         

Earnings from Operations before Income Taxes

     3,186       2,900       2,136       9,507       9,433  
                                         

Income Tax Provision

     1,940       230       559       3,625       1,960  
                                         

Net Earnings

   $ 1,246     $ 2,670     $ 1,577     $ 5,882     $ 7,473  

% of net sales

     7.4 %     16.3 %     10.9 %     9.5 %     13.3 %

  

- 5 -
 

 

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

 

Reconciliation of GAAP Net Earnings to Adjusted EBITDA 

 

   

13 Weeks

Ended

    

14 Weeks

Ended

    

13 Weeks

Ended

    

52 Weeks

Ended

    

53 Weeks

Ended

  
   

March 2,
2025

    

March 3,

2024

    

December 1,

2024

    

March 2,
2025

    

March 3,

2024

  

GAAP Net Earnings

   $ 1,246     $ 2,670     $ 1,577     $ 5,882     $ 7,473  

Adjustments:

                                        

Income Tax Provision

     1,940       230       559       3,625       1,960  

Interest Income

     (335 )     (329 )     (290 )     (1,209 )     (1,118 )

Depreciation

     460       418       464       1,851       1,402  

Stock Option Expense

     107       104       105       402       420  

Special Items:

                                        

Activist Shareholder Defense Costs

     -       -       -       -       570  

Stock Option Modification Charge (a)

     -       -       -       -       109  

Pre-tax Losses on Sales of Investments (b)

     -       -       -       -       65  

Insurer Bankruptcy Cost

     -       70       -       -       70  

Recruiting Fees

     -       38       -       -       38  

Storm Damage Charge

     -       -       -       1,098       -  

Adjusted EBITDA

   $ 3,418     $ 3,201     $ 2,415     $ 11,649     $ 10,989  

 

(a)

pre-tax charge for the modification of previously granted stock options in connection with the special dividend in the 2024 fiscal year first quarter

(b)

to fund the $1.00 per share special dividend paid on April 6, 2023 to shareholders of record on March 9, 2023

 

 

- 6 -