MELVILLE, N.Y., Feb. 01, 2016 (GLOBE NEWSWIRE) -- Park Electrochemical Corp. (NYSE:PKE) announced that it has determined that the entire $0.10 per share regular dividend paid in February 2015 and the entire $1.50 special dividend paid in February 2015 will be treated as non-taxable distributions to our shareholders for Federal income tax purposes and that none of such dividends will be treated as a taxable dividend.
The Company estimates, based on current information, that the dividends paid by the Company in May, August and November 2015 will be treated as taxable dividends for Federal income tax purposes, but the Company cannot finalize this treatment until it files its Federal income tax return for its fiscal year ending February 28, 2016.
Park’s cash dividends are treated as taxable dividends to the extent of the Company’s current or accumulated earnings and profits in the United States (computed using U.S. Federal income tax principles), with any amount in excess of such current or accumulated earnings and profits treated as a non-taxable return of capital to the extent of the shareholder’s adjusted tax basis in the shareholder’s shares and with any amount in excess of such current or accumulated earnings and profits and the shareholder’s adjusted tax basis treated as a capital gain. Distributions treated as returns of capital generally reduce the basis in the shares on which the distributions were made, unless the basis is lower than the amount of the distributions in which case the amount by which the distributions exceed the basis is capital gains. Because the Company’s current earnings and profits must take into account the Company’s results of operations for the entire fiscal year in which the cash dividends were paid, the Company will not be able to determine with certainty the tax characterization of the May, August and November 2015 cash dividends until it files its Federal tax return for its fiscal year ending February 28, 2016.
The expected characteristics of the dividend distributions paid by the Company during the 2015 calendar year have been reported to shareholders on Form 1099. The Company will issue amended Forms 1099 if necessary following the filing of its Federal tax return for its fiscal year ending February 28, 2016. Shareholders are encouraged to consult their tax advisors to determine the specific effect the distributions may have on their individual tax situations.
Certain portions of this news release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectation. Such factors include, but are not limited to, general conditions in the electronics and aerospace industries, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various other factors set forth in Item 1A “Risk Factors” and under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended March 1, 2015.
Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains R & D facilities in Arizona, Kansas and Singapore.
Additional corporation information is available on the Company’s web site at www.parkelectro.com.
Contact: Martina Bar Kochva (631) 465-3600
Source:Park Electrochemical Corp.