UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): January 10, 2014
PARK ELECTROCHEMICAL CORP. |
(Exact Name of Registrant as Specified in Charter) |
New York |
1-4415 |
11-1734643 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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48 South Service Road, Melville, |
New York |
11747 |
(Address of Principal Executive Offices) |
(Zip Code) | |
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Registrant's telephone number, including area code (631) 465-3600 |
Not Applicable |
Former Name or Former Address, if Changed Since Last Report |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
Park Electrochemical Corp. (the "Company") issued a news release on January 10, 2014 reporting its results of operations for its 2014 fiscal year third quarter ended December 1, 2013. The Company is furnishing the news release to the Securities and Exchange Commission pursuant to Item 2.02 of Form 8-K as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
99.1 News Release dated January 10, 2014
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PARK ELECTROCHEMICAL CORP. Date: January 10, 2014 By: /s/ P. Matthew Farabaugh Name: P. Matthew Farabaugh Title: Vice President and Chief
Financial Officer
EXHIBIT INDEX
Number Exhibit |
Description |
Page |
99.1 |
News Release dated January 10, 2014 |
5 |
-4-
Exhibit 99.1
|
NEWS RELEASE |
Contact: Martina Bar Kochva |
48 South Service Road Melville, NY 11747 (631) 465-3600 |
PARK ELECTROCHEMICAL CORP. REPORTS THIRD QUARTER RESULTS
Melville, New York, Friday, January 10, 2014…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $39,678,000 for the third quarter ended December 1, 2013 compared to net sales of $41,265,000 for the third quarter ended November 25, 2012. Park's net sales for the nine months ended December 1, 2013 were $127,613,000 compared to net sales of $133,741,000 for the nine months ended November 25, 2012.
Park reported net earnings of $4,721,000 for the third quarter ended December 1, 2013 compared to net earnings before special items of $5,109,000 for the third quarter of last fiscal year. During the third quarter ended November 25, 2012, the Company recorded pre-tax restructuring charges of $559,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China and its Park Advanced Composite Materials, Inc. facility located in Waterbury, Connecticut. The Company incurred no additional charges in connection with these closures in the third quarter ended December 1, 2013. Accordingly, net earnings were $4,710,000 for the third quarter ended November 25, 2012.
For the nine-month period ended December 1, 2013, Park reported net earnings before special items of $15,833,000 compared to net earnings before special items of $15,820,000 for last fiscal year’s nine-month comparable period. The nine-month period ended December 1, 2013 included a tax benefit of $2,181,000 in connection with a tax refund related to amended federal income tax returns and pre-tax restructuring charges of $319,000 related to the Zhuhai facility closure mentioned above. The nine-month period of the prior fiscal year included pre-tax restructuring charges of $3,095,000 primarily related to the facility closures mentioned above. Accordingly, net earnings were $17,695,000 for the nine-month period ended December 1, 2013 compared to net earnings of $12,889,000 for the nine-month period ended November 25, 2012.
Park reported basic and diluted earnings per share of $0.23 for the third quarter ended December 1, 2013 compared to basic and diluted earnings per share before special items of $0.25 for last year’s third quarter. The basic and diluted earnings per share after special items were $0.23 for the third quarter ended November 25, 2012.
Park reported basic and diluted earnings per share before special items of $0.76 for each of the nine-month periods ended December 1, 2013 and November 25, 2012. Basic and diluted earnings per share were $0.85 for the nine months ended December 1, 2013 compared to basic and diluted earnings per share of $0.62 for the prior year’s first nine months.
The effective tax rate for the third quarter ended December 1, 2013 was 3.3% compared to 18.2% in the third quarter of last fiscal year. The lower tax rate in the third quarter ended December 1, 2013 was due to higher portions of taxable income in jurisdictions with lower effective income tax rates and tax incentives associated with the Company’s operations in Singapore.
The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EST today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (800) 688-0836 in the United States and Canada and (617) 614-4072 in other countries and the required passcode is 30855831.
For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EST today through 11:59 p.m. EST on Thursday, January 16, 2014. 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 37416065 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 tax benefits and restructuring charges. 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, 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
Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):
13 Weeks Ended |
39 Weeks Ended |
|||||||||||||||||||
12/1/13 |
11/25/12 |
9/1/13 |
12/1/13 |
11/25/12 |
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Sales |
$ | 39,678 | $ | 41,265 | $ | 44,497 | $ | 127,613 | $ | 133,741 | ||||||||||
Net Earnings before Special Items1 |
$ | 4,721 | $ | 5,109 | $ | 5,983 | $ | 15,833 | $ | 15,820 | ||||||||||
Special Items net of Tax |
$ | - | $ | (399 | ) | $ | 2,062 | $ | 1,862 | $ | (2,931 | ) | ||||||||
Net Earnings |
$ | 4,721 | $ | 4,710 | $ | 8,045 | $ | 17,695 | $ | 12,889 | ||||||||||
Basic and Diluted Earnings per Share: |
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Basic Earnings before Special Items1 |
$ | 0.23 | $ | 0.25 | $ | 0.29 | $ | 0.76 | $ | 0.76 | ||||||||||
Special Items |
$ | - | $ | (0.02 | ) | $ | 0.10 | $ | 0.09 | $ | (0.14 | ) | ||||||||
Basic Earnings per Share |
$ | 0.23 | $ | 0.23 | $ | 0.39 | $ | 0.85 | $ | 0.62 | ||||||||||
Diluted Earnings before Special Items1 |
$ | 0.23 | $ | 0.25 | $ | 0.29 | $ | 0.76 | $ | 0.76 | ||||||||||
Special Items |
$ | - | $ | (0.02 | ) | $ | 0.10 | $ | 0.09 | $ | (0.14 | ) | ||||||||
Diluted Earnings per Share |
$ | 0.23 | $ | 0.23 | $ | 0.39 | $ | 0.85 | $ | 0.62 | ||||||||||
Weighted Average Shares Outstanding: |
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Basic |
20,857 | 20,801 | 20,836 | 20,840 | 20,799 | |||||||||||||||
Diluted |
20,917 | 20,803 | 20,852 | 20,871 | 20,824 |
1 Refer to "Detailed operating information" below for information regarding Special Items. |
Comparative balance sheets (in thousands):
12/1/13 |
3/3/2013 |
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Assets |
(unaudited) |
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Current Assets |
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Cash and Marketable Securities |
$ | 291,260 | $ | 275,216 | ||||
Accounts Receivable, Net |
22,852 | 25,878 | ||||||
Inventories |
14,633 | 12,918 | ||||||
Other Current Assets |
6,421 | 6,662 | ||||||
Total Current Assets |
335,166 | 320,674 | ||||||
Fixed Assets, Net |
30,154 | 32,187 | ||||||
Other Assets |
16,823 | 16,797 | ||||||
Total Assets |
$ | 382,143 | $ | 369,658 | ||||
Liabilities and Shareholders' Equity |
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Current Liabilities |
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Accounts Payable |
$ | 6,224 | $ | 6,485 | ||||
Accrued Liabilities |
6,679 | 6,016 | ||||||
Income Taxes Payable |
2,691 | 4,177 | ||||||
Total Current Liabilities |
15,594 | 16,678 | ||||||
Long-Term Debt |
52,000 | 52,000 | ||||||
Deferred Income Taxes |
761 | 812 | ||||||
Other Liabilities |
246 | 246 | ||||||
Total Liabilities |
68,601 | 69,736 | ||||||
Shareholders’ Equity |
313,542 | 299,922 | ||||||
Total Liabilities and Shareholders' Equity |
$ | 382,143 | $ | 369,658 | ||||
Equity per Share |
$ | 15.02 | $ | 14.40 |
Detailed operating information (in thousands – unaudited):
13 Weeks Ended December 1, 2013 |
13 Weeks Ended November 25, 2012 |
13 Weeks Ended September 1, 2013 |
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GAAP |
Specials Items |
Before Special Items |
GAAP |
Specials Items |
Before Special Items |
GAAP |
Specials Items |
Before Special Items |
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Net Sales |
$ | 39,678 | $ | 39,678 | $ | 41,265 | $ | 41,265 | $ | 44,497 | $ | 44,497 | ||||||||||||||||||||||||
Cost of Sales |
28,640 | 28,640 | 28,725 | 28,725 | 30,876 | 30,876 | ||||||||||||||||||||||||||||||
% |
72.2 | % | 72.2 | % | 69.6 | % | 69.6 | % | 69.4 | % | 69.4 | % | ||||||||||||||||||||||||
Gross Profit |
11,038 | 11,038 | 12,540 | 12,540 | 13,621 | 13,621 | ||||||||||||||||||||||||||||||
% |
27.8 | % | 27.8 | % | 30.4 | % | 30.4 | % | 30.6 | % | 30.6 | % | ||||||||||||||||||||||||
Selling, General & Administrative Expenses |
6,106 | 6,106 | 6,365 | 6,365 | 6,041 | 6,041 | ||||||||||||||||||||||||||||||
% |
15.4 | % | 15.4 | % | 15.4 | % | 15.4 | % | 13.6 | % | 13.6 | % | ||||||||||||||||||||||||
Restructuring Charge |
- | - | - | 559 | (559 | ) | - | 119 | (119 | ) | - | |||||||||||||||||||||||||
% |
0.0 | % | 0.0 | % | 1.4 | % | 0.0 | % | 0.3 | % | 0.0 | % | ||||||||||||||||||||||||
Earnings from Operations |
4,932 | - | 4,932 | 5,616 | 559 | 6,175 | 7,461 | 119 | 7,580 | |||||||||||||||||||||||||||
% |
12.4 | % | 12.4 | % | 13.6 | % | 15.0 | % | 16.8 | % | 17.0 | % | ||||||||||||||||||||||||
Interest Income |
139 | 139 | 143 | - | 143 | 77 | 77 | |||||||||||||||||||||||||||||
% |
0.4 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||||
Interest Expense |
187 | 187 | - | - | 185 | 185 | ||||||||||||||||||||||||||||||
% |
0.5 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | 0.4 | % | ||||||||||||||||||||||||
Net Interest (Expense) Income |
(48 | ) | (48 | ) | 143 | 143 | (108 | ) | (108 | ) | ||||||||||||||||||||||||||
% |
-0.1 | % | -0.1 | % | 0.3 | % | 0.3 | % | -0.2 | % | -0.2 | % | ||||||||||||||||||||||||
Earnings before Income Taxes |
4,884 | - | 4,884 | 5,759 | 559 | 6,318 | 7,353 | 119 | 7,472 | |||||||||||||||||||||||||||
% |
12.3 | % | 12.3 | % | 14.0 | % | 15.3 | % | 16.5 | % | 16.8 | % | ||||||||||||||||||||||||
Income Tax Provision |
163 | - | 163 | 1,049 | 160 | 1,209 | (692 | ) | 2,181 | 1,489 | ||||||||||||||||||||||||||
Effective Tax Rate |
3.3 | % | 3.3 | % | 18.2 | % | 19.1 | % | -9.4 | % | 19.9 | % | ||||||||||||||||||||||||
Net Earnings |
4,721 | - | 4,721 | 4,710 | 399 | 5,109 | 8,045 | (2,062 | ) | 5,983 | ||||||||||||||||||||||||||
% |
11.9 | % | 11.9 | % | 11.4 | % | 12.4 | % | 18.1 | % | 13.4 | % |
Detailed operating information (in thousands – unaudited), continued:
39 Weeks Ended December 1, 2013 |
39 Weeks Ended November 25, 2012 |
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GAAP |
Specials Items |
Before Special Items |
GAAP |
Specials Items |
Before Special Items |
|||||||||||||||||||
Net Sales |
$ | 127,613 | $ | 127,613 | $ | 133,741 | $ | 133,741 | ||||||||||||||||
Cost of Sales |
89,963 | 89,963 | 95,026 | 95,026 | ||||||||||||||||||||
% |
70.5 | % | 70.5 | % | 71.1 | % | 71.1 | % | ||||||||||||||||
Gross Profit |
37,650 | 37,650 | 38,715 | 38,715 | ||||||||||||||||||||
% |
29.5 | % | 29.5 | % | 28.9 | % | 28.9 | % | ||||||||||||||||
Selling, General & Administrative Expenses |
18,703 | 18,703 | 20,012 | 20,012 | ||||||||||||||||||||
% |
14.7 | % | 14.7 | % | 15.0 | % | 15.0 | % | ||||||||||||||||
Restructuring Charge |
319 | (319 | ) | - | 3,095 | (3,095 | ) | - | ||||||||||||||||
% |
0.2 | % | 0.0 | % | 2.3 | % | 0.0 | % | ||||||||||||||||
Earnings from Operations |
18,628 | 319 | 18,947 | 15,608 | 3,095 | 18,703 | ||||||||||||||||||
% |
14.6 | % | 14.8 | % | 11.7 | % | 14.0 | % | ||||||||||||||||
Interest Income |
284 | 284 | 520 | 520 | ||||||||||||||||||||
% |
0.2 | % | 0.2 | % | 0.4 | % | 0.4 | % | ||||||||||||||||
Interest Expense |
543 | 543 | - | - | ||||||||||||||||||||
% |
0.4 | % | 0.4 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
Net Interest (Expense) Income |
(259 | ) | (259 | ) | 520 | 520 | ||||||||||||||||||
% |
-0.2 | % | -0.2 | % | 0.4 | % | 0.4 | % | ||||||||||||||||
Earnings before Income Taxes |
18,369 | 319 | 18,688 | 16,128 | 3,095 | 19,223 | ||||||||||||||||||
% |
14.4 | % | 14.6 | % | 12.1 | % | 14.4 | % | ||||||||||||||||
Income Tax Provision |
674 | 2,181 | 2,855 | 3,239 | 164 | 3,403 | ||||||||||||||||||
Effective Tax Rate |
3.7 | % | 15.3 | % | 20.1 | % | 17.7 | % | ||||||||||||||||
Net Earnings |
17,695 | (1,862 | ) | 15,833 | 12,889 | 2,931 | 15,820 | |||||||||||||||||
% |
13.9 | % | 12.4 | % | 9.6 | % | 11.8 | % |
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