8-K

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): June 29, 2016

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.)
48 South Service Road, Melville,	New York	11747
(Address of Principal Executive Offices)		(Zip Code)
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 June 29, 2016 reporting its results of operations for its 2017 fiscal year first quarter ended May 29, 2016.

  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.

(d)     Exhibits.

      99.1 News Release dated June 29, 2016

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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: June 29, 2016	By:             s/ P. Matthew Farabaugh
	Name:       P. Matthew Farabaugh Title:         Senior Vice President and Chief Financial Officer

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SIGNATURE

EXHIBIT INDEX

Number Exhibit	Description	Page
99.1	News Release dated June 29, 2016. . . . .	5

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EX-99.1

 

Exhibit 99.1

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

PARK ELECTROCHEMICAL CORP. REPORTS FIRST QUARTER RESULTS

Melville, New York, Wednesday, June 29, 2016…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $31,490,000 for the 2017 fiscal year’s first quarter ended May 29, 2016 compared to net sales of $37,829,000 for last fiscal year’s first quarter ended May 31, 2015 and net sales of $35,756,000 for last fiscal year’s fourth quarter ended February 28, 2016. Net earnings for the current year’s first quarter were $2,950,000 compared to $4,777,000 for last year’s first quarter and $4,574,000 for last year’s fourth quarter.

Park reported net earnings before special items of $2,993,000 for the current year’s first quarter compared to net earnings before special items of $4,867,000 for last year’s first quarter and net earnings before special items of $4,865,000 for last year’s fourth quarter. In the current year’s first quarter, the Company recorded pre-tax restructuring charges of $70,000 related to the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York. In last year’s first quarter, the Company recorded a pre-tax charge of $124,000 related to the aforementioned facility closure and the closure in fiscal year 2013 of the Company’s Nelco Technology (Zhuhai FTZ) Ltd. facility located in Zhuhai, China. In last year’s fourth quarter, the Company recorded pre-tax restructuring charges of $162,000 in connection with the aforementioned facility closures and pre-tax deferred financing costs of $292,000 related to the early termination of the PNC Bank credit agreement. As previously reported, the Company entered into a three-year revolving credit facility agreement with HSBC Bank USA in January 2016, which replaced the credit facility agreement that the Company entered into with PNC Bank in February 2014.

Park reported basic and diluted earnings per share of $0.15 for the current year’s first quarter compared to basic and diluted earnings per share of $0.23 for both last year’s first quarter and last year’s fourth quarter.

Basic and diluted earnings per share before special items were $0.15 for the current year’s first quarter compared to basic and diluted earnings per share before special items of $0.24 for both last year’s first quarter and last 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 37601667.

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 5, 2016. 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 37601667 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 restructuring charges and deferred financing costs.

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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 and low-volume tooling 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

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Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

	13 Weeks Ended
	May 29, 2016			May 31, 2015			February 28, 2016
Sales	$	31,490		$	37,829		$	35,756
Net Earnings before Special Items1	$	2,993		$	4,867		$	4,865
Special Items, net of Tax:
Restructuring Charges		(43	)		(90	)		(110	)
Deferred Financing Costs		-			-			(181	)
Net Earnings	$	2,950		$	4,777		$	4,574
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1	$	0.15		$	0.24		$	0.24
Special Items:
Restructuring Charges		-			(0.01	)		-
Deferred Financing Costs		-			-			(0.01	)
Basic Earnings per Share	$	0.15		$	0.23		$	0.23
Diluted Earnings before Special Items1	$	0.15		$	0.24		$	0.24
Special Items:
Restructuring Charges		-			(0.01	)		-
Deferred Financing Costs		-			-			(0.01	)
Diluted Earnings per Share	$	0.15		$	0.23		$	0.23
Weighted Average Shares Outstanding:
Basic		20,235			20,546			20,251
Diluted		20,235			20,565			20,251
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

Comparative balance sheets (in thousands):

	May 29, 2016 (unaudited)		February 28, 2016
Assets
Current Assets
Cash and Marketable Securities	$	242,404	$	237,425
Accounts Receivable, Net		18,420		22,583
Inventories		12,000		10,214
Prepaid Expenses and Other Current Assets		2,322		1,963
Total Current Assets		275,146		272,185
Fixed Assets, Net		20,743		21,512
Restricted Cash		10,000		10,000
Other Assets		11,114		11,080
Total Assets	$	317,003	$	314,777
Liabilities and Shareholders' Equity
Current Liabilities
Current Portion of Long-Term Debt	$	3,000	$	3,000
Accounts Payable		6,838		6,155
Accrued Liabilities		5,211		4,580
Income Taxes Payable		3,464		2,943
Total Current Liabilities		18,513		16,678
Long-Term Debt		71,250		72,000
Deferred Income Taxes		43,937		43,937
Other Liabilities		1,242		1,295
Total Liabilities		134,942		133,910
Shareholders’ Equity		182,061		180,867
Total Liabilities and Shareholders' Equity	$	317,003	$	314,777
Additional information
Equity per Share	$	9.00	$	8.94
Total Cash, Restricted Cash and Marketable Securities	$	252,404	$	247,425

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Comparative statements of operations (in thousands – unaudited):

	13 Weeks Ended
	May 29, 2016			May 31, 2015			February 28, 2016
Net Sales	$	31,490		$	37,829		$	35,756
Cost of Sales		22,703			26,462			25,029
Gross Profit		8,787			11,367			10,727
% of net sales		27.9	%		30.0	%		30.0	%
Selling, General & Administrative Expenses		5,337			5,801			5,137
Restructuring Charge		70			124			162
Earnings from Operations		3,380			5,442			5,428
Interest:
Interest Income		378			265			340
Interest Expense		333			369			577
Net Interest Expense		45			(104	)		(237	)
Earnings before Income Taxes		3,425			5,338			5,191
Income Tax Provision		475			561			617
Net Earnings	$	2,950		$	4,777		$	4,574

Reconciliation of non-GAAP financial measures (in thousands – unaudited):

	13 Weeks Ended May 29, 2016									13 Weeks Ended May 31, 2015									13 Weeks Ended February 28, 2016
	GAAP			Specials Items			Before Special Items			GAAP			Specials Items			Before Special Items			GAAP			Specials Items			Before Special Items
Restructuring Charge		70			(70	)		-			124			(124	)		-			162			(162	)		-
% of net sales		0.2	%					0.0	%		0.3	%					0.0	%		0.5	%					0.0	%
Earnings from Operations		3,380			70			3,450			5,442			124			5,566			5,428			162			5,590
% of net sales		10.7	%					11.0	%		14.4	%					14.7	%		15.2	%					15.6	%
Net Interest (Expense) Income		45			-			45			(104	)		-			(104	)		(237	)		292			55
% of net sales		0.1	%					0.1	%		-0.3	%					-0.3	%		-0.7	%					0.2	%
Earnings before Income Taxes		3,425			70			3,495			5,338			124			5,462			5,191			454			5,645
% of net sales		10.9	%					11.1	%		14.1	%					14.4	%		14.5	%					15.8	%
Income Tax Provision		475			27			502			561			34			595			617			163			780
Effective Tax Rate		13.9	%					14.4	%		10.5	%					10.9	%		11.9	%					13.8	%
Net Earnings		2,950			43			2,993			4,777			90			4,867			4,574			291			4,865
% of net sales		9.4	%					9.5	%		12.6	%					12.9	%		12.8	%					13.6	%

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