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Park Electrochemical Corp. Reports First Quarter Results

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):
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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

Source:Park Electrochemical Corp.