Park Aerospace Corp. Reports First Quarter Results

·9 min read
Park Aerospace Corp.
Park Aerospace Corp.

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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