Park Electrochemical Corp. Reports First Quarter Results

MELVILLE, N.Y., June 28, 2017 (GLOBE NEWSWIRE) — Park Electrochemical Corp. (NYSE:PKE) reported net sales of $27,417,000 for the 2018 fiscal year’s first quarter ended May 28, 2017 compared to net sales of $31,490,000 for the 2017 fiscal year’s first quarter ended May 29, 2016 and net sales of $27,599,000 for the 2017 fiscal year’s fourth quarter ended February 26, 2017.  Net earnings for the 2018 fiscal year’s first quarter were $1,394,000 compared to $2,950,000 for the 2017 fiscal year’s first quarter and $2,477,000 for the 2017 fiscal year’s fourth quarter.

Park reported net earnings before special items of $2,484,000 for the 2018 fiscal year’s first quarter compared to net earnings before special items of $2,993,000 for the 2017 fiscal year’s first quarter and net earnings before special items of $2,548,000 for the 2017 fiscal year’s fourth quarter. In the 2018 fiscal year’s first quarter, the Company recorded pre-tax restructuring charges of $1,361,000 related to the consolidation of its Nelco Products, Inc. electronics Business Unit located in Fullerton, California, and its Neltec Inc. electronics Business Unit located in Tempe, Arizona, and the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York and recorded a one-time litigation expense of $375,000. In the 2017 fiscal year’s first quarter, the Company recorded pre-tax restructuring charges of $70,000 in connection with the Newburgh facility closure.  In the 2017 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $107,000 in connection with the Newburgh facility closure.

Park reported basic and diluted earnings per share of $0.07 for the 2018 fiscal year’s first quarter compared to $0.15 for the 2017 fiscal year’s first quarter and $0.12 for the 2017 fiscal year’s fourth quarter. Basic and diluted earnings per share before special items were $0.12 for the 2018 fiscal year’s first quarter compared to $0.15 for the 2017 fiscal year’s first quarter and $0.13 for the 2017 fiscal year’s 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 (844) 466-4114 in the United States and Canada and (765) 507-2654 in other countries and the required passcode is 42205115.

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 Tuesday, July 4, 2017.  The conference call replay can be accessed by dialing (855) 859-2056 in the United States and Canada and (404) 537-3406 in other countries and entering passcode 42205115 or on the Company’s web site at www.parkelectro.com/investor/investor.html.

Any additional material financial or statistical data disclosed in the conference call will also be available at the time of the conference call on the Company’s web site at www.parkelectro.com/investor/investor.html.

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 and deferred financing charges. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP 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 reconciles the non-GAAP operating results before special items to earnings determined in accordance with GAAP. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Electrochemical Corp. is a global advanced materials company which develops and manufactures advanced composite materials, primary and secondary structures and assemblies and low-volume tooling for the aerospace markets and high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets.  The Company’s manufacturing facilities are located in Kansas, Singapore, France, Arizona and California. The Company also maintains R&D facilities in Arizona, Kansas and Singapore. 

Additional corporate information is available on the Company’s web site at www.parkelectro.com

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited): 
  13 Weeks Ended    
               
    May 28,
2017
    May 29,
2016
    February 26,
2017
   
  Sales $   27,417       $   31,490       $   27,599      
                     
  Net Earnings before Special Items1 $   2,484       $   2,993       $   2,548      
  Special Items, net of Tax:                  
    Restructuring Charges     (855 )         (43 )         (71 )    
      One-time Litigation Expense     (235 )         –           –      
    Net Earnings $   1,394       $   2,950       $   2,477      
                     
  Basic and Diluted Earnings per Share:                  
    Basic Earnings before Special Items1 $   0.12       $   0.15       $   0.13      
    Special Items:                  
    Restructuring Charges     (0.04 )                 (0.01 )    
    One-time Litigation Expense     (0.01 )                    
    Basic Earnings (Loss) per Share $   0.07       $   0.15       $   0.12      
                     
    Diluted Earnings before Special Items1 $   0.12       $   0.15       $   0.13      
    Special Items:                  
    Restructuring Charges     (0.04 )                 (0.01 )    
    One-time Litigation Expense     (0.01 )                    
    Diluted Earnings (Loss) per Share $   0.07       $   0.15       $   0.12      
                     
  Weighted Average Shares Outstanding:                  
    Basic     20,235           20,235           20,235      
    Diluted     20,244           20,235           20,253      
                     
  1 Refer to “Reconciliation of non-GAAP financial measures” below for information regarding Special Items.  
   
             

 

Comparative balance sheets (in thousands):
 
      May 28,
2017
  February 26,
2017
 
  Assets   (unaudited)      
  Current Assets          
    Cash and Marketable Securities    $   237,800   $   238,590  
    Accounts Receivable, Net       17,705       17,238  
    Inventories       10,908       11,105  
    Prepaid Expenses and Other Current Assets       2,532       2,197  
      Total Current Assets       268,945       269,130  
             
  Fixed Assets, Net       17,947       18,638  
  Restricted Cash        10,000       10,000  
  Other Assets       10,814       10,810  
      Total Assets   $   307,706   $   308,578  
             
  Liabilities and Shareholders’ Equity          
  Current Liabilities          
    Current Portion of Long-Term Debt   $   3,500   $   3,500  
    Accounts Payable       3,619       4,183  
    Accrued Liabilities       5,250       3,417  
    Income Taxes Payable       2,894       3,023  
      Total Current Liabilities       15,263       14,123  
             
  Long-Term Debt       67,750       68,500  
  Deferred Income Taxes       42,088       42,088  
  Other Liabilities       353       1,041  
      Total Liabilities       125,454       125,752  
             
  Shareholders’ Equity       182,252       182,826  
             
      Total Liabilities and Shareholders’ Equity   $   307,706   $   308,578  
             
  Additional information          
  Equity per Share   $    9.01   $    9.04  
  Total Cash, Restricted Cash and Marketable Securities   $    247,800   $   248,590  
 

Comparative statements of operations (in thousands – unaudited):
                       
      13 Weeks Ended    
                       
      May 28,
2017
    May 29,
2016
    February 26,
2017
   
                       
  Net Sales   $   27,417       $   31,490       $   27,599      
                       
  Cost of Sales       21,095           22,703           20,213      
                       
  Gross Profit       6,322           8,787           7,386      
      % of net sales     23.1 %       27.9 %       26.8 %    
                       
  Selling, General & Administrative
  Expenses
      4,727           5,337           4,688      
      % of net sales     17.2 %       16.9 %       17.0 %    
                       
  Restructuring Charges       1,361           70           107      
                       
  Earnings from Operations       234           3,380           2,591      
                       
  Interest:                    
    Interest Income       749           378           527      
                       
    Interest Expense       510           333           422      
                       
  Net Interest Income       239           45           105      
                       
  Earnings before Income Taxes       473           3,425           2,696      
                       
  Income Tax (Benefit)/Provision       (921 )         475           219      
                       
  Net Earnings   $   1,394       $   2,950       $   2,477      
                       

 

Reconciliation of non-GAAP financial measures (in thousands – unaudited):
                                           
      13 Weeks Ended
May 28, 2017
    13 Weeks Ended
May 29, 2016
    13 Weeks Ended
February 26, 2017
      GAAP   Specials
Items
  Before
Special
Items
    GAAP   Specials
Items
  Before
Special
Items
    GAAP   Specials
Items
  Before
Special
Items
                                           
  Selling, General & Administrative
  Expenses
  $   4,727     $   (375 )   $   4,352       $   5,337     $     $   5,337       $   4,688     $     $   4,688  
      % of net sales     17.2 %         15.9 %       16.9 %         16.9 %       17.0 %         17.0 %
                                           
  Restructuring Charges       1,361         (1,361 )               70         (70 )               107         (107 )      
      % of net sales     5.0 %         0.0 %       0.2 %         0.0 %       0.4 %         0.0 %
                                           
  Earnings from Operations       234         1,736         1,970           3,380         70         3,450           2,591         107         2,698  
      % of net sales     0.9 %         7.2 %       10.7 %         11.0 %       9.4 %         9.8 %
                                           
  Earnings before Income Taxes       473         1,736         2,209           3,425         70         3,495           2,696         107         2,803  
      % of net sales     1.7 %         8.1 %       10.9 %         11.1 %       9.8 %         10.2 %
                                           
  Income Tax (Benefit)/Provision       (921 )       646         (275 )         475         27         502           219         36         255  
    Effective Tax Rate     -194.7 %         -12.4 %       13.9 %         14.4 %       8.1 %         9.1 %
                                           
  Net Earnings       1,394         1,090         2,484           2,950         43         2,993           2,477         71         2,548  
      % of net sales     5.1 %         9.1 %       9.4 %         9.5 %       9.0 %         9.2 %
                                           
                                           
                                           
                                           
                                           

 

 

CONTACT: Contact:
Martina Bar Kochva
48 South Service Road
Melville, NY 11747
(631) 465-3600

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