Park Aerospace Corp. Reports First Quarter Results
NEWTON, Kan., July 07, 2022 (GLOBE NEWSWIRE) — Park Aerospace Corp. (NYSE-PKE) reported results for the 2023 fiscal year first quarter ended May 29, 2022. 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/wa6bspd4 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 $12,783,000 for the 2023 fiscal year first quarter ended May 29, 2022 compared to $13,594,000 for the 2022 fiscal year first quarter ended May 30, 2021 and $12,502,000 for the 2022 fiscal year fourth quarter ended February 27, 2022. Net earnings for the 2023 fiscal year first quarter were $1,910,000 compared to $2,745,000 for the 2022 fiscal year first quarter and $1,956,000 for the 2022 fiscal year fourth quarter.
Net earnings before special items for the 2023 fiscal year first quarter were $1,910,000 compared to $2,759,000 for the 2022 fiscal year first quarter and $2,018,000 for the 2022 fiscal year fourth quarter. Adjusted EBITDA for the 2023 fiscal year first quarter was $2,804,000 compared to $4,104,000 for the 2022 fiscal year first quarter and $3,083,000 for the 2022 fiscal year fourth quarter.
The Company had no pretax restructuring charges in the 2023 fiscal year first quarter compared to $14,000 in the 2022 fiscal year first quarter and $62,000 in the 2022 fiscal year fourth quarter, 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 $0.09 for the 2023 fiscal year first quarter compared to $0.13 for the 2022 fiscal year first quarter and $0.10 for the 2022 fiscal year fourth quarter. Park reported basic and diluted earnings per share before special items of $0.09 for the 2023 fiscal year first quarter compared to basic earnings per share before special items of $0.14 and diluted earnings per share before special items of $0.13 for the 2022 fiscal year first quarter and basic and diluted earnings per share before special items of $0.10 for the 2022 fiscal year fourth quarter.
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 13730808.
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 13, 2022. The conference call replay will be available at https://edge.media-server.com/mmc/p/wa6bspd4 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 13730808.
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 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 ongoing, 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 (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 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):
| 13 Weeks Ended | ||||||||||||
| May 29, 2022 | May 30, 2021 | February 27, 2022 | ||||||||||
| Sales | $ | 12,783 | $ | 13,594 | $ | 12,502 | ||||||
| Net Earnings before Special Items1 | $ | 1,910 | $ | 2,759 | $ | 2,018 | ||||||
| Special Items, Net of Tax: | ||||||||||||
| Restructuring Charges | – | (14 | ) | (62 | ) | |||||||
| Net Earnings | $ | 1,910 | $ | 2,745 | $ | 1,956 | ||||||
| Basic Earnings per Share: | ||||||||||||
| Basic Earnings before Special Items1 | $ | 0.09 | $ | 0.14 | $ | 0.10 | ||||||
| Special Items: | ||||||||||||
| Restructuring Charges | – | (0.01 | ) | – | ||||||||
| Basic Earnings per Share | $ | 0.09 | $ | 0.13 | $ | 0.10 | ||||||
| Diluted Earnings before Special Items1 | $ | 0.09 | $ | 0.13 | $ | 0.10 | ||||||
| Special Items: | ||||||||||||
| Restructuring Charges | – | – | – | |||||||||
| Diluted Earnings per Share | $ | 0.09 | $ | 0.13 | $ | 0.10 | ||||||
| Weighted Average Shares Outstanding: | ||||||||||||
| Basic | 20,458 | 20,383 | 20,458 | |||||||||
| Diluted | 20,504 | 20,710 | 20,508 | |||||||||
| 1 Refer to “Reconciliation of non-GAAP financial measures” below for information regarding Special Items. | ||||||||||||
Comparative balance sheets (in thousands):
| May 29, 2022 | February 27, 2022 | |||||
| Assets | (unaudited) | |||||
| Current Assets | ||||||
| Cash and Marketable Securities | $ | 107,327 | $ | 110,361 | ||
| Accounts Receivable, Net | 8,957 | 8,339 | ||||
| Inventories | 6,649 | 4,657 | ||||
| Prepaid Expenses and Other Current Assets | 3,862 | 3,082 | ||||
| Total Current Assets | 126,795 | 126,439 | ||||
| Fixed Assets, Net | 24,160 | 24,333 | ||||
| Operating Right-of-use Assets | 190 | 203 | ||||
| Other Assets | 9,909 | 9,912 | ||||
| Total Assets | $ | 161,054 | $ | 160,887 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current Liabilities | ||||||
| Accounts Payable | $ | 3,180 | $ | 2,534 | ||
| Accrued Liabilities | 1,333 | 1,494 | ||||
| Operating Lease Liability | 54 | 53 | ||||
| Income Taxes Payable | 2,746 | 2,211 | ||||
| Total Current Liabilities | 7,313 | 6,292 | ||||
| Long-term Operating Lease Liability | 163 | 174 | ||||
| Non-current Income Taxes Payable | 12,621 | 12,621 | ||||
| Deferred Income Taxes | 1,778 | 1,671 | ||||
| Other Liabilities | 4,531 | 4,497 | ||||
| Total Liabilities | 26,406 | 25,255 | ||||
| Shareholders’ Equity | 134,648 | 135,632 | ||||
| Total Liabilities and Shareholders’ Equity | $ | 161,054 | $ | 160,887 | ||
| Additional information | ||||||
| Equity per Share | $ | 6.58 | $ | 6.63 | ||
Comparative statements of operations (in thousands – unaudited):
| 13 Weeks Ended | |||||||||||||
| May 29, 2022 | May 30, 2021 | February 27, 2022 | |||||||||||
| Net Sales | $ | 12,783 | $ | 13,594 | $ | 12,502 | |||||||
| Cost of Sales | 8,691 | 8,122 | 8,304 | ||||||||||
| Gross Profit | 4,092 | 5,472 | 4,198 | ||||||||||
| % of net sales | 32.0 | % | 40.3 | % | 33.6 | % | |||||||
| Selling, General & Administrative Expenses | 1,633 | 1,648 | 1,520 | ||||||||||
| % of net sales | 12.8 | % | 12.1 | % | 12.2 | % | |||||||
| Restructuring Charges | – | 14 | 62 | ||||||||||
| % of net sales | 0.0 | % | 0.1 | % | 0.5 | % | |||||||
| Earnings from Operations | 2,459 | 3,810 | 2,616 | ||||||||||
| Interest and Other Income: | |||||||||||||
| Interest Income | 133 | 117 | 89 | ||||||||||
| Earnings from Operations before Income Taxes | 2,592 | 3,927 | 2,705 | ||||||||||
| Income Tax Provision | 682 | 1,182 | 749 | ||||||||||
| Net Earnings | $ | 1,910 | $ | 2,745 | $ | 1,956 | |||||||
| % of net sales | 14.9 | % | 20.2 | % | 15.6 | % | |||||||
Reconciliation of non-GAAP financial measures (in thousands – unaudited):
| 13 Weeks Ended May 29, 2022 | 13 Weeks Ended May 30, 2021 | 13 Weeks Ended February 27, 2022 | ||||||||||||||||||||||||||
| GAAP | Specials Items | Before Special Items | GAAP | Specials Items | Before Special Items | GAAP | Specials Items | Before Special Items | ||||||||||||||||||||
| Restructuring Charges | – | – | – | 14 | (14 | ) | – | 62 | (62 | ) | – | |||||||||||||||||
| % of net sales | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.5 | % | 0.0 | % | ||||||||||||||||
| Earnings from Operations | 2,459 | – | 2,459 | 3,810 | 14 | 3,824 | 2,616 | 62 | 2,678 | |||||||||||||||||||
| % of net sales | 19.2 | % | 19.2 | % | 28.0 | % | 28.1 | % | 20.9 | % | 21.4 | % | ||||||||||||||||
| Interest Income | 133 | – | 133 | 117 | – | 117 | 89 | – | 89 | |||||||||||||||||||
| % of net sales | 1.0 | % | 1.0 | % | 0.9 | % | 0.9 | % | 0.7 | % | 0.7 | % | ||||||||||||||||
| Earnings from Operations before Income Taxes | 2,592 | – | 2,592 | 3,927 | 14 | 3,941 | 2,705 | 62 | 2,767 | |||||||||||||||||||
| % of net sales | 20.3 | % | 20.3 | % | 28.9 | % | 29.0 | % | 21.6 | % | 22.1 | % | ||||||||||||||||
| Income Tax Provision | 682 | – | 682 | 1,182 | – | 1,182 | 749 | – | 749 | |||||||||||||||||||
| Effective Tax Rate | 26.3 | % | 26.3 | % | 30.1 | % | 30.0 | % | 27.7 | % | 27.1 | % | ||||||||||||||||
| Net Earnings | 1,910 | – | 1,910 | 2,745 | 14 | 2,759 | 1,956 | 62 | 2,018 | |||||||||||||||||||
| % of net sales | 14.9 | % | 14.9 | % | 20.2 | % | 20.3 | % | 15.6 | % | 16.1 | % | ||||||||||||||||
| Net Earnings | 1,910 | 2,759 | 2,018 | |||||||||||||||||||||||||
| Addback non-cash expenses: | ||||||||||||||||||||||||||||
| Income Tax Provision | 682 | 1,182 | 749 | |||||||||||||||||||||||||
| Interest Income | (133 | ) | (117 | ) | (89 | ) | ||||||||||||||||||||||
| Depreciation | 260 | 216 | 331 | |||||||||||||||||||||||||
| Stock Option Expense | 85 | 64 | 74 | |||||||||||||||||||||||||
| EBITDA | 2,804 | 4,104 | 3,083 | |||||||||||||||||||||||||
Contact: Donna D’Amico-Annitto
486 North Oliver Road, Bldg. Z
Newton, Kansas 67114
(316) 283-6500
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