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Park Electrochemical Corp. Reports First Quarter Results

MELVILLE, N.Y., June 29, 2016 (GLOBE NEWSWIRE) -- Park Electrochemical Corp. (NYSE:PKE) reported net sales of $31,490,000 for the 2017 fiscal year’s first quarter ended May 29, 2016 compared to net sales of $37,829,000 for last fiscal year’s first quarter ended May 31, 2015 and net sales of $35,756,000 for last fiscal year’s fourth quarter ended February 28, 2016. Net earnings for the current year’s first quarter were $2,950,000 compared to $4,777,000 for last year’s first quarter and $4,574,000 for last year’s fourth quarter.

Park reported net earnings before special items of $2,993,000 for the current year’s first quarter compared to net earnings before special items of $4,867,000 for last year’s first quarter and net earnings before special items of $4,865,000 for last year’s fourth quarter. In the current year’s first quarter, the Company recorded pre-tax restructuring charges of $70,000 related to the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York. In last year’s first quarter, the Company recorded a pre-tax charge of $124,000 related to the aforementioned facility closure and the closure in fiscal year 2013 of the Company’s Nelco Technology (Zhuhai FTZ) Ltd. facility located in Zhuhai, China. In last year’s fourth quarter, the Company recorded pre-tax restructuring charges of $162,000 in connection with the aforementioned facility closures and pre-tax deferred financing costs of $292,000 related to the early termination of the PNC Bank credit agreement. As previously reported, the Company entered into a three-year revolving credit facility agreement with HSBC Bank USA in January 2016, which replaced the credit facility agreement that the Company entered into with PNC Bank in February 2014.

Park reported basic and diluted earnings per share of $0.15 for the current year’s first quarter compared to basic and diluted earnings per share of $0.23 for both last year’s first quarter and last year’s fourth quarter.

Basic and diluted earnings per share before special items were $0.15 for the current year’s first quarter compared to basic and diluted earnings per share before special items of $0.24 for both last year’s first quarter and last 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 37601667.

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 5, 2016. 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 37601667 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 financial 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 and deferred financing costs. Accordingly, in addition to disclosing its financial 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 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 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 29,
2016
May 31,
2015
February 28,
2016
Sales$ 31,490 $ 37,829 $ 35,756
Net Earnings before Special Items1$ 2,993 $ 4,867 $ 4,865
Special Items, net of Tax:
Restructuring Charges (43) (90) (110)
Deferred Financing Costs - - (181)
Net Earnings$ 2,950 $ 4,777 $ 4,574
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1$ 0.15 $ 0.24 $ 0.24
Special Items:
Restructuring Charges - (0.01) -
Deferred Financing Costs - - (0.01)
Basic Earnings per Share$ 0.15 $ 0.23 $ 0.23
Diluted Earnings before Special Items1$ 0.15 $ 0.24 $ 0.24
Special Items:
Restructuring Charges - (0.01) -
Deferred Financing Costs - - (0.01)
Diluted Earnings per Share$ 0.15 $ 0.23 $ 0.23
Weighted Average Shares Outstanding:
Basic 20,235 20,546 20,251
Diluted 20,235 20,565 20,251
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.






Comparative balance sheets (in thousands):
May 29, 2016
(unaudited)
February 28,
2016
Assets
Current Assets
Cash and Marketable Securities $ 242,404 $ 237,425
Accounts Receivable, Net 18,420 22,583
Inventories 12,000 10,214
Prepaid Expenses and Other Current Assets 2,322 1,963
Total Current Assets 275,146 272,185
Fixed Assets, Net 20,743 21,512
Restricted Cash 10,000 10,000
Other Assets 11,114 11,080
Total Assets$ 317,003 $ 314,777
Liabilities and Shareholders' Equity
Current Liabilities
Current Portion of Long-Term Debt$ 3,000 $ 3,000
Accounts Payable 6,838 6,155
Accrued Liabilities 5,211 4,580
Income Taxes Payable 3,464 2,943
Total Current Liabilities 18,513 16,678
Long-Term Debt 71,250 72,000
Deferred Income Taxes 43,937 43,937
Other Liabilities 1,242 1,295
Total Liabilities 134,942 133,910
Shareholders’ Equity 182,061 180,867
Total Liabilities and Shareholders' Equity$ 317,003 $ 314,777
Additional information
Equity per Share$ 9.00 $ 8.94
Total Cash, Restricted Cash and Marketable Securities$ 252,404 $ 247,425





Comparative statements of operations (in thousands – unaudited):
13 Weeks Ended
May 29,
2016
May 31,
2015
February 28,
2016
Net Sales$ 31,490 $ 37,829 $ 35,756
Cost of Sales 22,703 26,462 25,029
Gross Profit 8,787 11,367 10,727
% of net sales 27.9% 30.0% 30.0%
Selling, General & Administrative
Expenses
5,337 5,801 5,137
Restructuring Charge 70 124 162
Earnings from Operations 3,380 5,442 5,428
Interest:
Interest Income 378 265 340
Interest Expense 333 369 577
Net Interest Expense 45 (104) (237)
Earnings before Income Taxes 3,425 5,338 5,191
Income Tax Provision 475 561 617
Net Earnings$ 2,950 $ 4,777 $ 4,574






Reconciliation of non-GAAP financial measures (in thousands – unaudited):
13 Weeks Ended
May 29, 2016
13 Weeks Ended
May 31, 2015
13 Weeks Ended
February 28, 2016
GAAP Specials
Items
Before
Special
Items
GAAP Specials
Items
Before
Special
Items
GAAP Specials
Items
Before
Special
Items
Restructuring Charge 70 (70) - 124 (124) - 162 (162) -
% of net sales 0.2% 0.0% 0.3% 0.0% 0.5% 0.0%
Earnings from Operations 3,380 70 3,450 5,442 124 5,566 5,428 162 5,590
% of net sales 10.7% 11.0% 14.4% 14.7% 15.2% 15.6%
Net Interest (Expense) Income 45 - 45 (104) - (104) (237) 292 55
% of net sales 0.1% 0.1% -0.3% -0.3% -0.7% 0.2%
Earnings before Income Taxes 3,425 70 3,495 5,338 124 5,462 5,191 454 5,645
% of net sales 10.9% 11.1% 14.1% 14.4% 14.5% 15.8%
Income Tax Provision 475 27 502 561 34 595 617 163 780
Effective Tax Rate 13.9% 14.4% 10.5% 10.9% 11.9% 13.8%
Net Earnings 2,950 43 2,993 4,777 90 4,867 4,574 291 4,865
% of net sales 9.4% 9.5% 12.6% 12.9% 12.8% 13.6%



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

Source:Park Electrochemical Corp.