Exhibit 99.1
| NEWS RELEASE | ||
| Contact: Martina Bar Kochva | 48 South Service Road | |
| Melville, NY 11747 | ||
| (631) 465-3600 |
PARK ELECTROCHEMICAL CORP. REPORTS SECOND QUARTER RESULTS
Melville, New York, Friday, September 21, 2012…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $46,430,000 for the second quarter ended August 26, 2012 compared to net sales of $50,449,000 for the second quarter ended August 28, 2011. Park’s net sales for the six months ended August 26, 2012 were $92,476,000 compared to net sales of $102,266,000 for the six months ended August 28, 2011.
Park reported net earnings before special items of $5,771,000 for the second quarter ended August 26, 2012 compared to net earnings before special items of $6,615,000 for the second quarter of last year. In the second quarter ended August 26, 2012, the Company recorded a pre-tax charge of $2,525,000 in connection with the planned closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China. During the last fiscal year’s second quarter, the Company recorded other pre-tax income of $1,598,000 relating to the settlement of certain lawsuits during the quarter. Accordingly, net earnings for the second quarter ended August 26, 2012 were $3,246,000 compared to net earnings of $7,670,000 for the second quarter of last year.
For the six-month period ended August 26, 2012, Park reported net earnings before special items of $10,711,000 compared to net earnings before special items of $13,857,000 for the last year’s first six-month period. The current year six-month period included pre-tax charges of $2,536,000 primarily related to the facility closure mentioned above. The first six-month period of the prior fiscal year included the other pre-tax income of $1,598,000 relating to the settlement of certain lawsuits mentioned above. Accordingly, net earnings were $8,179,000 for the six-month period ended August 26, 2012 compared to net earnings of $14,912,000 for the six-month period ended August 28, 2011.
Park reported basic and diluted earnings per share before special items of $0.28 for the second quarter ended August 26, 2012 compared to basic and diluted earnings per share before special items of $0.32 for last year’s second quarter. Basic and diluted earnings per share were $0.16 for the second quarter ended August 26, 2012 compared to $0.37 for last year’s second quarter.
For the six months ended August 26, 2012, Park reported basic and diluted earnings per share before special items of $0.52 and $0.51, respectively, compared to basic and diluted earnings per share before special items of $0.67 for the prior year’s first six months. Basic and diluted earnings per share were $0.39 for the six months ended August 26, 2012 compared to basic and diluted earnings per share of $0.72 for the prior year’s first six months.
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 (866) 730-5768 in the United States and Canada and (857) 350-1592 in other countries and the required passcode is 53235008.
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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 Thursday, September 27, 2012. The conference call replay can be accessed by dialing (888) 286-8010 in the United States and Canada and (617) 801-6888 in other countries and entering passcode 43636417 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 closure and restructuring charges and the settlement of lawsuits. 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 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, Connecticut, 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
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Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):
| 13 Weeks Ended | 26 Weeks Ended | |||||||||||||||
| 8/26/12 | 8/28/11 | 8/26/12 | 8/28/11 | |||||||||||||
| Sales | $ | 46,430 | $ | 50,449 | $ | 92,476 | $ | 102,266 | ||||||||
| Net Earnings before Special Items1 | $ | 5,771 | $ | 6,615 | $ | 10,711 | $ | 13,857 | ||||||||
| Special Items net of Tax | $ | (2,525 | ) | $ | 1,055 | $ | (2,532 | ) | $ | 1,055 | ||||||
| Net Earnings | $ | 3,246 | $ | 7,670 | $ | 8,179 | $ | 14,912 | ||||||||
| Basic and Diluted Earnings per Share: | ||||||||||||||||
| Basic Earnings before Special Items1 | $ | 0.28 | $ | 0.32 | $ | 0.52 | $ | 0.67 | ||||||||
| Special Items | $ | (0.12 | ) | $ | 0.05 | $ | (0.13 | ) | $ | 0.05 | ||||||
| Basic Earnings per Share | $ | 0.16 | $ | 0.37 | $ | 0.39 | $ | 0.72 | ||||||||
| Diluted Earnings before Special Items1 | $ | 0.28 | $ | 0.32 | $ | 0.51 | $ | 0.67 | ||||||||
| Special Items | $ | (0.12 | ) | $ | 0.05 | $ | (0.12 | ) | $ | 0.05 | ||||||
| Diluted Earnings per Share | $ | 0.16 | $ | 0.37 | $ | 0.39 | $ | 0.72 | ||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic | 20,800 | 20,741 | 20,798 | 20,732 | ||||||||||||
| Diluted | 20,819 | 20,776 | 20,834 | 20,798 | ||||||||||||
1 Refer to "Detailed operating information" below for information regarding Special Items.
Comparative balance sheets (in thousands):
| 8/26/12 | 2/26/12 | |||||||
| Assets | (unaudited) | |||||||
| Current Assets | ||||||||
| Cash and Marketable Securities | $ | 269,619 | $ | 268,785 | ||||
| Accounts Receivable, Net | 27,975 | 23,533 | ||||||
| Inventories | 15,725 | 15,823 | ||||||
| Other Current Assets | 3,964 | 3,449 | ||||||
| Total Current Assets | 317,283 | 311,590 | ||||||
| Fixed Assets, Net | 33,445 | 38,695 | ||||||
| Other Assets | 16,041 | 15,703 | ||||||
| Total Assets | $ | 366,769 | $ | 365,988 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 6,543 | $ | 8,427 | ||||
| Accrued Liabilities | 9,159 | 8,816 | ||||||
| Income Taxes Payable | 3,290 | 4,198 | ||||||
| Total Current Liabilities | 18,992 | 21,441 | ||||||
| Deferred Income Taxes | 1,011 | 1,062 | ||||||
| Other Liabilities | 274 | 274 | ||||||
| Total Liabilities | 20,277 | 22,777 | ||||||
| Stockholders’ Equity | 346,492 | 343,211 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 366,769 | $ | 365,988 | ||||
| Equity per Share | $ | 16.66 | $ | 16.50 |
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Detailed operating information (in thousands – unaudited):
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||||||||||||||
| August 26, 2012 | August 28, 2011 | |||||||||||||||||||||||
| Before | Before | |||||||||||||||||||||||
| Specials | Special | Specials | Special | |||||||||||||||||||||
| GAAP | Items | Items | GAAP | Items | Items | |||||||||||||||||||
| Net Sales | $ | 46,430 | $ | 46,430 | $ | 50,449 | $ | 50,449 | ||||||||||||||||
| Cost of Sales | 33,231 | 33,231 | 35,913 | 35,913 | ||||||||||||||||||||
| % | 71.6 | % | 71.6 | % | 71.2 | % | 71.2 | % | ||||||||||||||||
| Gross Profit | 13,199 | - | 13,199 | 14,536 | - | 14,536 | ||||||||||||||||||
| % | 28.4 | % | 28.4 | % | 28.8 | % | 28.8 | % | ||||||||||||||||
| Selling, General & Administrative | ||||||||||||||||||||||||
| Expenses | 6,591 | 6,591 | 6,902 | 6,902 | ||||||||||||||||||||
| % | 14.2 | % | 14.2 | % | 13.7 | % | 13.7 | % | ||||||||||||||||
| Restructuring Charge | 2,525 | (2,525 | ) | - | - | - | ||||||||||||||||||
| % | 5.4 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Earnings from Operations | 4,083 | 2,525 | 6,608 | 7,634 | - | 7,634 | ||||||||||||||||||
| % | 8.8 | % | 14.2 | % | 15.1 | % | 15.1 | % | ||||||||||||||||
| Other Income | 179 | 179 | 1,794 | (1,598 | ) | 196 | ||||||||||||||||||
| % | 0.4 | % | 0.4 | % | 3.6 | % | 0.4 | % | ||||||||||||||||
| Earnings before Income Taxes | 4,262 | 2,525 | 6,787 | 9,428 | (1,598 | ) | 7,830 | |||||||||||||||||
| % | 9.2 | % | 14.6 | % | 18.7 | % | 15.5 | % | ||||||||||||||||
| Income Tax Provision | 1,016 | - | 1,016 | 1,758 | (543 | ) | 1,215 | |||||||||||||||||
| Effective Tax Rate | 23.8 | % | 15.0 | % | 18.6 | % | 15.5 | % | ||||||||||||||||
| Net Earnings | 3,246 | 2,525 | 5,771 | 7,670 | (1,055 | ) | 6,615 | |||||||||||||||||
| % | 7.0 | % | 12.4 | % | 15.2 | % | 13.1 | % | ||||||||||||||||
| 26 Weeks Ended | 26 Weeks Ended | |||||||||||||||||||||||
| August 26, 2012 | August 28, 2011 | |||||||||||||||||||||||
| Before | Before | |||||||||||||||||||||||
| Specials | Special | Specials | Special | |||||||||||||||||||||
| GAAP | Items | Items | GAAP | Items | Items | |||||||||||||||||||
| Net Sales | $ | 92,476 | $ | 92,476 | $ | 102,266 | $ | 102,266 | ||||||||||||||||
| Cost of Sales | 66,301 | 66,301 | 71,761 | 71,761 | ||||||||||||||||||||
| % | 71.7 | % | 71.7 | % | 70.2 | % | 70.2 | % | ||||||||||||||||
| Gross Profit | 26,175 | - | 26,175 | 30,505 | - | 30,505 | ||||||||||||||||||
| % | 28.3 | % | 28.3 | % | 29.8 | % | 29.8 | % | ||||||||||||||||
| Selling, General & Administrative | ||||||||||||||||||||||||
| Expenses | 13,647 | 13,647 | 14,452 | 14,452 | ||||||||||||||||||||
| % | 14.8 | % | 14.8 | % | 14.1 | % | 14.1 | % | ||||||||||||||||
| Restructuring Charge | 2,536 | (2,536 | ) | - | - | - | - | |||||||||||||||||
| % | 2.7 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Earnings from Operations | 9,992 | 2,536 | 12,528 | 16,053 | - | 16,053 | ||||||||||||||||||
| % | 10.8 | % | 13.5 | % | 15.7 | % | 15.7 | % | ||||||||||||||||
| Other Income | 377 | 377 | 2,015 | (1,598 | ) | 417 | ||||||||||||||||||
| % | 0.4 | % | 0.4 | % | 2.0 | % | 0.4 | % | ||||||||||||||||
| Earnings before Income Taxes | 10,369 | 2,536 | 12,905 | 18,068 | (1,598 | ) | 16,470 | |||||||||||||||||
| % | 11.2 | % | 14.0 | % | 17.7 | % | 16.1 | % | ||||||||||||||||
| Income Tax Provision | 2,190 | 4 | 2,194 | 3,156 | (543 | ) | 2,613 | |||||||||||||||||
| Effective Tax Rate | 21.1 | % | 17.0 | % | 17.5 | % | 15.9 | % | ||||||||||||||||
| Net Earnings | 8,179 | 2,532 | 10,711 | 14,912 | (1,055 | ) | 13,857 | |||||||||||||||||
| % | 8.8 | % | 11.6 | % | 14.6 | % | 13.5 | % | ||||||||||||||||
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