Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results

NEWTON, Kan., May 14, 2020 (GLOBE NEWSWIRE) — Park Aerospace Corp. (NYSE-PKE) reported results for the 2020 fiscal year fourth quarter and year ended March 1, 2020. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, the results of operations for the Electronics Business in the prior year are reported as discontinued operations. Continuing operations discussed below refer to Park’s Aerospace Business unless otherwise indicated, and prior periods in such discussion have been restated to reflect results excluding the Electronics Business. It is important to note that the fourth quarter ended March 3, 2019 was a 14-week period compared to the fourth quarter ended March 1, 2020, which was a 13-week period. In addition, the fiscal year ended March 3, 2019 was a 53-week period compared to the fiscal year ended March 1, 2020, which was a 52-week period.The Company will conduct a conference call to discuss its financial results 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/6i37sjg7 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.Continuing Operations:Park reported net sales of $15,494,000 for the 2020 fiscal year fourth quarter ended March 1, 2020 compared to $16,659,000 for the 2019 fiscal year fourth quarter ended March 3, 2019 and $15,847,000 for the 2020 fiscal year third quarter ended December 1, 2019.  Park’s net sales from continuing operations for the fiscal year ended March 1, 2020 were $60,014,000 compared to $51,116,000 for the fiscal year ended March 3, 2019. Net earnings from continuing operations for the 2020 fiscal year fourth quarter were $2,633,000 compared to $1,588,000 for the 2019 fiscal year fourth quarter and $2,806,000 for the 2020 fiscal year third quarter. Net earnings from continuing operations were $10,205,000 for the 2020 fiscal year compared to $6,306,000 for last fiscal year.Net earnings from continuing operations before special items for the 2020 fiscal year fourth quarter were $2,787,000 compared to $3,944,000 for the 2019 fiscal year fourth quarter and $2,806,000 for the 2020 fiscal year third quarter. Net earnings from continuing operations before special items were $10,503,000 for the 2020 fiscal year compared to $7,874,000 for last fiscal year.EBITDA from continuing operations before special items for the 2020 fiscal year fourth quarter was $3,612,000 compared to EBITDA from continuing operations before special items of $4,251,000 for the 2019 fiscal year fourth quarter and EBITDA from continuing operations of $3,622,000 for the 2020 fiscal year third quarter. EBITDA from continuing operations before special items was $13,012,000 for the 2020 fiscal year compared to $10,248,000 for last fiscal year.In the 2020 fiscal year fourth quarter the Company recorded a pre-tax stock option modification charge of $208,000. In the 2019 fiscal year fourth quarter, the Company recorded a one-time tax benefit of $788,000 related to the Tax Cuts and Jobs Act enacted in December 2017. Additionally, in the 2019 fiscal year fourth quarter, the Company recorded a pre-tax loss on the sales of marketable securities of $1,498,000 and a pre-tax stock option modification charge of $528,000. The loss on the sales of marketable securities was in connection with the liquidation of securities to fund a special cash dividend of $4.25 per share paid in February 2019. The stock option modification charge related to a reduction in the exercise prices of previously granted employee stock options resulting from the special dividends paid in February 2020 and February 2019.Park reported basic and diluted earnings per share from continuing operations of $0.13 for the 2020 fiscal year fourth quarter compared to $0.08 for the 2019 fiscal year fourth quarter and $0.14 for the 2020 fiscal year third quarter. Park reported basic and diluted earnings per share from continuing operations of $0.50 for the 2020 fiscal year compared basic and diluted earnings per share from continuing operations to $0.31 for the 2019 fiscal year.Park reported basic and diluted earnings per share from continuing operations before special items of $0.14 for the 2020 fiscal year fourth quarter compared to $0.19 for the 2019 fiscal year fourth quarter and $0.14 for the 2020 fiscal year third quarter. Basic and diluted earnings per share from continuing operations before special items were $0.51 for the 2020 fiscal year compared to $0.39 for 2019 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.  The required passcode for attendance by phone is 4258059.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, May 20, 2020.  The conference call replay will be available at https://edge.media-server.com/mmc/p/6i37sjg7 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 (855) 859-2056 in the United States and Canada, and (404) 537-3406 in other countries. The required passcode for accessing the replay by phone is 4258059. 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 www.parkaerospace.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 stock option modification charges, one-time tax benefits, loss on sales of marketable securities and EBITDA. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including 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 on-going, 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 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): Comparative balance sheets (in thousands except per share information):
Comparative statements of operations (in thousands – unaudited):
Reconciliation of non-GAAP financial measures (in thousands – unaudited):

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