EX-99.1 2 k182512_ex99-1.htm Unassociated Document
Exhibit 99.1


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

PARK ELECTROCHEMICAL CORP.  REPORTS FOURTH QUARTER AND
FISCAL YEAR RESULTS

Melville, New York, April 28, 2010…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $50,383,000 for the fourth quarter ended February 28, 2010 compared to net sales of $35,497,000 for the fourth quarter ended March 1, 2009.  Park’s net sales for the fiscal year ended February 28, 2010 were $175,686,000 compared to net sales of $200,062,000 for the fiscal year ended March 1, 2009.

Park reported net earnings before special items of $8,206,000 for the fourth quarter ended February 28, 2010 compared to net earnings from continuing operations before special items of $2,861,000 for the fourth quarter of last year.  In the fourth quarter ended February 28, 2010, the Company recorded a net income tax benefit of $2,155,000 related to certain one-time items.  In the fourth quarter ended March 1, 2009, the Company recorded one-time pre-tax charges of $5,687,000 related to restructurings and asset impairments and recognized tax benefits of $1,235,000 related to those charges and a tax benefit of $4,677,000 related to the adjustment of certain valuation allowances. Additionally, during the fourth quarter ended March 1, 2009, the Company recorded a discontinued operations benefit of $16,486,000 related to the elimination of a liability from discontinued operations of its Dielektra GmbH subsidiary located in Germany.

Accordingly, net earnings were $10,361,000 for the fourth quarter ended February 28, 2010 compared to net earnings from continuing operations of $3,086,000 and net earnings of $19,572,000 for last year’s fourth quarter.

For the year ended February 28, 2010, Park reported net earnings before special items of $23,204,000 compared to net earnings from continuing operations before special items of $18,859,000 for the prior fiscal year.  In the year ended February 28, 2010, the Company recorded the net income tax benefit of $2,155,000 mentioned above.  During the 2009 fiscal year, the Company recorded a one-time pre-tax charge of $570,000 related to restructurings at certain of the Company’s North American and European business units and the one-time pre-tax charges of $5,687,000 related to the restructurings and asset impairments mentioned above and recognized the related tax benefits of $1,235,000 mentioned above and the tax benefit of $4,677,000 related to the adjustment of valuation allowances mentioned above. Additionally, during the 2009 fiscal year, the Company recorded the discontinued operations benefit of $16,486,000 mentioned above.

Accordingly, net earnings were $25,359,000 for the year ended February 28, 2010 compared to net earnings from continuing operations of $18,514,000 and net earnings of $35,000,000 for the year ended March 1, 2009.

 
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Park reported diluted earnings per share before special items of $0.40 for the fourth quarter ended February 28, 2010 compared to diluted earnings per share from continuing operations before special items of $0.14 for last year’s fourth quarter.  Diluted earnings per share were $0.50 for the quarter ended February 28, 2010 compared to diluted earnings per share from continuing operations of $0.15 and diluted earnings per share of $0.96 for last year’s fourth quarter.

For the fiscal year ended February 28, 2010, Park reported diluted earnings per share before special items of $1.13 compared to diluted earnings per share from continuing operations before special items of $0.92 for the prior fiscal year.  Diluted earnings per share were $1.23 for the year ended February 28, 2010 compared to diluted earnings per share from continuing operations of $0.90 and diluted earnings per share of $1.71 for the prior fiscal year.

The gross profits as percentages of sales were 35.1% and 29.4%, respectively, for the fourth quarter and year ended February 28, 2010 compared to 22.9% and 21.7%, respectively, for last year’s fourth quarter and year ended March 1, 2009.  Interest income for the fourth quarter ended February 28, 2010 was $57,000 compared to interest income of $1,633,000 for last year’s fourth quarter.  Interest income for the year ended February 28, 2010 was $1,062,000 compared to $6,648,000 for the prior 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 (877) 685-2329 in the United States and Canada and (706) 634-2174 in other countries and the required passcode is 71470955.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT on Wednesday, April 28, 2010 through 11:59 p.m. EDT on Monday, May 3, 2010.  The conference call replay can be accessed by dialing (800) 642-1687 in the United States and Canada and (706) 645-9291 in other countries and entering passcode 71470955 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 generally accepted accounting principles (“GAAP”) financial measures, which include special items, such as tax benefits, restructuring charges, asset impairments and adjustments of valuation allowances. 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 principally for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. Park also specializes in the design and manufacture of complex composite aircraft and space vehicle parts. The Company’s manufacturing facilities are located in Singapore, China, France, Connecticut, Kansas, Arizona, California and Washington.
 
Additional corporate information is available on the Company’s website at www.parkelectro.com.
 
 
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The performance table (in thousands, except per share amounts–unaudited):

   
13 Weeks
Ended
2/28/10
    
13 Weeks
Ended
3/01/09
    
52 Weeks
Ended
2/28/10
    
52 Weeks
Ended
3/01/09
  
Basic Earnings Per Share:
                        
Earnings from Continuing Operations
   $ 0.50     $ 0.15     $ 1.24     $ 0.90  
Discontinued Operations
     -       0.81       -       0.81  
    $ 0.50     $ 0.96     $ 1.24     $ 1.71  
                                 
Earnings from Continuing Operations before Special Items:
   $ 0.40     $ 0.14     $ 1.13     $ 0.92  
                                 
Weighted Average Shares Outstanding
     20,541       20,471       20,522       20,441  
                                 
Diluted Earnings Per Share:
                                
Earnings from Continuing Operations
   $ 0.50     $ 0.15     $ 1.23     $ 0.90  
Discontinued Operations
     -       0.81       -       0.81  
    $ 0.50     $ 0.96     $ 1.23     $ 1.71  
                                 
Earnings from Continuing Operations before Special Items
   $ 0.40     $ 0.14     $ 1.13     $ 0.92  
                                 
Weighted Average Shares Outstanding
     20,579       20,483       20,547       20,486  

The comparative balance sheets (in thousands):

   
2/28/10
    
3/01/09
  
Assets
            
Current Assets
            
Cash and Marketable Securities
   $ 237,840     $ 225,294  
Accounts Receivable, Net
     31,698       22,433  
Inventories
     11,973       10,677  
Other Current Assets
     1,167       5,527  
                 
Total Current Assets
     282,678       263,931  
                 
Fixed Assets, Net
     44,905       48,777  
Other Assets
     15,521       14,871  
                 
Total Assets
   $ 343,104     $ 327,579  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
Accounts Payable
   $ 10,201     $ 8,480  
Accrued Liabilities
     7,301       11,425  
Income Taxes Payable
     4,140       4,381  
                 
Total Current Liabilities
     21,642       24,286  
                 
Deferred Income Taxes
     1,398       3,927  
Other Liabilities
     3,966       3,657  
                 
Total Liabilities
     27,006       31,870  
                 
Stockholders’ Equity
     316,098       295,709  
                 
Total Liabilities and Stockholders' Equity
   $ 343,104     $ 327,579  
                 
Equity Per Share
   $ 15.40     $ 14.45  
 
 
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Detailed operating information (in thousands – unaudited):
 
   
13 Weeks
    
13 Weeks
    
52 Weeks
    
52 Weeks
  
   
Ended
    
Ended
    
Ended
    
Ended
  
   
2/28/10
    
3/1/09
    
2/28/10
    
3/1/09
  
                         
Net Sales
   $ 50,383     $ 35,497     $ 175,686     $ 200,062  
Cost of Sales
     32,698       27,385       124,084       156,638  
 %
     64.9 %     77.1 %     70.6 %     78.3 %
Gross Profit
     17,685       8,112       51,602       43,424  
%
     35.1 %     22.9 %     29.4 %     21.7 %
Selling, General and Administrative Expenses
     7,232       6,091       24,480       24,806  
 %
     14.4 %     17.2 %     14.0 %     12.4 %
Earnings from Operations
     10,453       2,021       27,122       18,618  
 %
     20.7 %     5.7 %     15.4 %     9.3 %
Interest Income
     57       1,633       1,062       6,648  
 %
     0.2 %     4.6 %     0.6 %     3.3 %
Earnings Before Income Taxes
     10,510       3,654       28,184       25,266  
 %
     20.9 %     10.3 %     16.0 %     12.6 %
Income Tax Provision
     2,304       793       4,980       6,407  
 Effective Tax Rate
     21.9 %     21.7 %     17.7 %     25.4 %
Net Earnings before Special Items
     8,206       2,861       23,204       18,859  
 %
     16.3 %     8.1 %     13.2 %     9.4 %
 
Special Items:                                
                                 
Restructuring Charges
     -       1,720       -       2,290  
Impairment Charge
     -       3,967       -       3,967  
Pre-Tax Special Items
     -       5,687       -       6,257  
                                 
Income Tax Provision (Benefit)
     (2,155 )     (1,235 )     (2,155 )     (1,235 )
Valuation Allowance Adjustment
     -       (4,677 )     -       (4,677 )
After-Tax Special Items
     (2,155 )     (225 )     (2,155 )     345  
                                 
After Special Items:
                                
                                 
Earnings (loss) from Continuing Operations before Income Taxes
     10,510       (2,033 )     28,184       19,009  
Income Tax Provision (Benefit)
     149       (5,119 )     2,825       495  
Net Earnings from Continuing Operations
     10,361       3,086       25,359       18,514  
Discontinued Operations Benefit
     -       16,486       -       16,486  
Net Earnings
   $ 10,361     $ 19,572     $ 25,359     $ 35,000  
%
     20.6 %     55.1 %     14.4 %     17.5 %

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