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 | % | |||||||||||||||||||||||||||