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Park Electrochemical Corp. Reports Fourth Quarter and Fiscal Year Results

MELVILLE, N.Y., May 02, 2017 (GLOBE NEWSWIRE) -- Park Electrochemical Corp. (NYSE:PKE) reported net sales of $27,599,000 for the 2017 fiscal year’s fourth quarter ended February 26, 2017 compared to net sales of $35,756,000 for the 2016 fiscal year’s fourth quarter ended February 28, 2016 and net sales of $26,462,000 for the 2017 fiscal year’s third quarter ended November 27, 2016. Park’s net sales for the fiscal year ended February 26, 2017 were $114,609,000 compared to net sales of $145,855,000 for the fiscal year ended February 28, 2016. Net earnings for the 2017 fiscal year’s fourth quarter were $2,477,000 compared to $4,574,000 for the 2016 fiscal year’s fourth quarter and $1,875,000 for the 2017 fiscal year’s third quarter. Net earnings were $9,283,000 for the fiscal year ended February 26, 2017 compared to $18,029,000 for the fiscal year ended February 28, 2016.

Park reported net earnings before special items of $2,548,000 for the 2017 fiscal year’s fourth quarter compared to net earnings before special items of $4,865,000 for the 2016 fiscal year’s fourth quarter and net earnings before special items of $1,944,000 for the 2017 fiscal year’s third quarter. In the 2017 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $107,000 related to the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York. In the 2016 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $162,000 in connection with 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 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 agreement that the Company entered into with PNC Bank in February 2014. In the 2017 fiscal year’s third quarter, the Company recorded pre-tax restructuring charges of $113,000 in connection with the 2009 closure of its New England Laminates Co., Inc. facility.

For the fiscal year ended February 26, 2017, Park reported net earnings before special items of $9,480,000 compared to net earnings before special items of $18,580,000 for the prior fiscal year. The 2017 fiscal year included pre-tax restructuring charges of $313,000 related to the facility closures mentioned above. The prior fiscal year included pre-tax restructuring charges of $535,000 related to the facility closures mentioned above and pre-tax deferred financing costs of $292,000 related to termination of the credit agreement mentioned above.

Park reported basic and diluted earnings per share of $0.12 for the 2017 fiscal year’s fourth quarter compared to $0.23 for the 2016 fiscal year’s fourth quarter and $0.09 for the 2017 fiscal year’s third quarter. Basic and diluted earnings per share before special items were $0.13 for the 2017 fiscal year’s fourth quarter compared to $0.24 for the 2016 fiscal year’s fourth quarter and $0.10 for the 2017 fiscal year’s third quarter.

Park reported basic and diluted earnings per share of $0.46 for the 2017 fiscal year compared to $0.89 for the 2016 fiscal year, and basic and diluted earnings per share before special items of $0.47 for the 2017 fiscal year compared to $0.91 for the 2016 fiscal year.

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 11921700.

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 Monday, May 8, 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 11921700 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 52 Weeks Ended
February 26,
2017
February 28,
2016
November 27,
2016
February 26,
2017
February 28,
2016
Sales $ 27,599 $ 35,756 $ 26,462 $ 114,609 $ 145,855
Net Earnings before Special Items1 $ 2,548 $ 4,865 $ 1,944 $ 9,480 $ 18,580
Special Items, net of Tax:
Restructuring Charges (71) (110) (69) (197) (370)
Deferred Financing Costs - (181) - - (181)
Net Earnings $ 2,477 $ 4,574 $ 1,875 $ 9,283 $ 18,029
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1 $ 0.13 $ 0.24 $ 0.10 $ 0.47 $ 0.91
Special Items:
Restructuring Charges (0.01) - (0.01) (0.01) (0.01)
Deferred Financing Charges - (0.01) - - (0.01)
Basic Earnings (Loss) per Share $ 0.12 $ 0.23 $ 0.09 $ 0.46 $ 0.89
Diluted Earnings before Special Items1 $ 0.13 $ 0.24 $ 0.10 $ 0.47 $ 0.91
Special Items:
Restructuring Charges (0.01) - (0.01) (0.01) (0.01)
Deferred Financing Charges - (0.01) - - (0.01)
Diluted Earnings (Loss) per Share $ 0.12 $ 0.23 $ 0.09 $ 0.46 $ 0.89
Weighted Average Shares Outstanding:
Basic 20,235 20,251 20,235 20,235 20,347
Diluted 20,253 20,251 20,235 20,239 20,352
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

Comparative balance sheets (in thousands):

February 26,
2017
February 28,
2016
Assets (unaudited)
Current Assets
Cash and Marketable Securities $ 238,590 $ 237,425
Accounts Receivable, Net 17,238 22,583
Inventories 11,105 10,214
Prepaid Expenses and Other Current Assets 2,197 1,963
Total Current Assets 269,130 272,185
Fixed Assets, Net 18,638 21,512
Restricted Cash 10,000 10,000
Other Assets 10,810 11,080
Total Assets $ 308,578 $ 314,777
Liabilities and Shareholders' Equity
Current Liabilities
Current Portion of Long-Term Debt $ 3,000 $ 3,000
Accounts Payable 4,183 6,155
Accrued Liabilities 3,417 4,580
Income Taxes Payable 3,023 2,943
Total Current Liabilities 13,623 16,678
Long-Term Debt 69,000 72,000
Deferred Income Taxes 42,088 43,937
Other Liabilities 1,041 1,295
Total Liabilities 125,752 133,910
Shareholders’ Equity 182,826 180,867
Total Liabilities and Shareholders' Equity $ 308,578 $ 314,777
Additional information
Equity per Share $ 9.04 $ 8.94
Total Cash, Restricted Cash and Marketable Securities $ 248,590 $ 247,425

Comparative statements of operations (in thousands – unaudited):

13 Weeks Ended 52 Weeks Ended
February 26,
2017
February 28,
2016
November 27,
2016
February 26,
2017
February 28,
2016
Net Sales $ 27,599 $ 35,756 $ 26,462 $ 114,609 $ 145,855
Cost of Sales 20,213 25,029 19,828 84,568 103,103
Gross Profit 7,386 10,727 6,634 30,041 42,752
% of net sales 26.8% 30.0% 25.1% 26.2% 29.3%
Selling, General & Administrative
Expenses
4,688 5,137 4,604 19,739 21,211
% of net sales 17.0% 14.4% 17.4% 17.2% 14.5%
Restructuring Charge 107 162 113 313 535
Earnings from Operations 2,591 5,428 1,917 9,989 21,006
Interest:
Interest Income 527 340 430 1,704 1,149
Interest Expense 422 577 343 1,432 1,657
Net Interest Expense 105 (237) 87 272 (508)
Earnings before Income Taxes 2,696 5,191 2,004 10,261 20,498
Income Tax Provision 219 617 129 978 2,469
Net Earnings $ 2,477 $ 4,574 $ 1,875 $ 9,283 $ 18,029

Reconciliation of non-GAAP financial measures (in thousands – unaudited):

13 Weeks Ended
February 26, 2017
13 Weeks Ended
February 28, 2016
13 Weeks Ended
November 27, 2016
GAAP Specials
Items
Before
Special
Items
GAAP Specials
Items
Before
Special
Items
GAAP Specials
Items
Before
Special
Items
Selling, General & Administrative
Expenses
$ 4,688 $- $ 4,688 $ 5,137 $- $ 5,137 $ 4,604 $- $ 4,604
% of net sales 17.0% 17.0% 14.4% 14.4% 17.4% 17.4%
Restructuring Charge 107 (107) - 162 (162) - 113 (113) -
% of net sales 0.4% 0.0% 0.5% 0.0% 0.4% 0.0%
Earnings from Operations 2,591 107 2,698 5,428 162 5,590 1,917 113 2,030
% of net sales 9.4% 9.8% 15.2% 15.6% 7.2% 7.7%
Net Interest (Expense) Income 105 - 105 (237) 292 55 87 - 87
% of net sales 0.4% 0.4% -0.7% 0.2% 0.3% 0.3%
Earnings before Income Taxes 2,696 107 2,803 5,191 454 5,645 2,004 113 2,117
% of net sales 9.8% 10.2% 14.5% 15.8% 7.6% 8.0%
Income Tax Provision 219 36 255 617 163 780 129 44 173
Effective Tax Rate 8.1% 9.1% 11.9% 13.8% 6.4% 8.2%
Net Earnings 2,477 71 2,548 4,574 291 4,865 1,875 69 1,944
% of net sales 9.0% 9.2% 12.8% 13.6% 7.1% 7.3%
52 Weeks Ended
February 26, 2017
52 Weeks Ended
February 28, 2016
GAAP Specials
Items
Before
Special
Items
GAAP Specials
Items
Before
Special
Items
Selling, General & Administrative
Expenses
$ 19,739 $- $ 19,739 $ 21,211 $- $ 21,211
% 17.2% 17.2% 14.5% 14.5%
Restructuring Charge 313 (313) - 535 (535) -
% 0.3% 0.0% 0.4% 0.0%
Earnings from Operations 9,989 313 10,302 21,006 535 21,541
% 8.7% 9.0% 14.4% 14.8%
Net Interest Expense 272 - 272 (508) 292 (216)
% 0.2% 0.2% -0.3% -0.1%
Earnings before Income Taxes 10,261 313 10,574 20,498 827 21,325
% 9.0% 9.2% 14.1% 14.6%
Income Tax Provision 978 116 1,094 2,469 276 2,745
Effective Tax Rate 9.5% 10.3% 12.0% 12.9%
Net Earnings 9,283 197 9,480 18,029 551 18,580
% 8.1% 8.3% 12.4% 12.7%


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

Source:Park Electrochemical Corp.