Park Electrochemical Corp. Reports First Quarter Results

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| Source: Park Electrochemical Corp.

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