EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

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 28, 2017…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $27,417,000 for the 2018 fiscal year’s first quarter ended May 28, 2017 compared to net sales of $31,490,000 for the 2017 fiscal year’s first quarter ended May 29, 2016 and net sales of $27,599,000 for the 2017 fiscal year’s fourth quarter ended February 26, 2017. Net earnings for the 2018 fiscal year’s first quarter were $1,394,000 compared to $2,950,000 for the 2017 fiscal year’s first quarter and $2,477,000 for the 2017 fiscal year’s fourth quarter.

 

Park reported net earnings before special items of $2,484,000 for the 2018 fiscal year’s first quarter compared to net earnings before special items of $2,993,000 for the 2017 fiscal year’s first quarter and net earnings before special items of $2,548,000 for the 2017 fiscal year’s fourth quarter. In the 2018 fiscal year’s first quarter, the Company recorded pre-tax restructuring charges of $1,361,000 related to the consolidation of its Nelco Products, Inc. electronics Business Unit located in Fullerton, California, and its Neltec Inc. electronics Business Unit located in Tempe, Arizona, and the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York and recorded a one-time litigation expense of $375,000. In the 2017 fiscal year’s first quarter, the Company recorded pre-tax restructuring charges of $70,000 in connection with the Newburgh facility closure. In the 2017 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $107,000 in connection with the Newburgh facility closure.

 

Park reported basic and diluted earnings per share of $0.07 for the 2018 fiscal year’s first quarter compared to $0.15 for the 2017 fiscal year’s first quarter and $0.12 for the 2017 fiscal year’s fourth quarter. Basic and diluted earnings per share before special items were $0.12 for the 2018 fiscal year’s first quarter compared to $0.15 for the 2017 fiscal year’s first quarter and $0.13 for the 2017 fiscal 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 42205115.

 

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 4, 2017. 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 42205115 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.

 

 
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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 restructuring and deferred financing charges. Accordingly, in addition to disclosing its operating 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 advanced composite materials, primary and secondary structures and assemblies and low-volume tooling for the aerospace markets and high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets. The Company’s manufacturing facilities are located in Kansas, Singapore, France, 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 28,

2017

    

May 29,

2016

    

February 26,

2017

  

Sales

   $ 27,417     $ 31,490     $ 27,599  
                         

Net Earnings before Special Items1

   $ 2,484     $ 2,993     $ 2,548  

Special Items, net of Tax:

                        

Restructuring Charges

     (855 )     (43 )     (71 )

One-time Litigation Expense

     (235 )     -       -  

Net Earnings

   $ 1,394     $ 2,950     $ 2,477  
                         

Basic and Diluted Earnings per Share:

                        

Basic Earnings before Special Items1

   $ 0.12     $ 0.15     $ 0.13  

Special Items:

                        

Restructuring Charges

     (0.04 )     -       (0.01 )

One-time Litigation Expense

     (0.01 )     -       -  

Basic Earnings (Loss) per Share

   $ 0.07     $ 0.15     $ 0.12  
                         

Diluted Earnings before Special Items1

   $ 0.12     $ 0.15     $ 0.13  

Special Items:

                        

Restructuring Charges

     (0.04 )     -       (0.01 )

One-time Litigation Expense

     (0.01 )     -       -  

Diluted Earnings (Loss) per Share

   $ 0.07     $ 0.15     $ 0.12  
                         

Weighted Average Shares Outstanding:

                        

Basic

     20,235       20,235       20,235  

Diluted

     20,244       20,235       20,253  

 

1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

 

Comparative balance sheets (in thousands):

   

May 28,

2017

    

February 26,

2017

  

 

  

(unaudited)

          
Assets                

Current Assets

                

Cash and Marketable Securities

  $ 237,800     $ 238,590  

Accounts Receivable, Net

     17,705       17,238  

Inventories

     10,908       11,105  

Prepaid Expenses and Other Current Assets

     2,532       2,197  

Total Current Assets

     268,945       269,130  
                 

Fixed Assets, Net

     17,947       18,638  

Restricted Cash

    10,000       10,000  

Other Assets

     10,814       10,810  

Total Assets

   $ 307,706     $ 308,578  
                 

Liabilities and Shareholders' Equity

                

Current Liabilities

                

Current Portion of Long-Term Debt

   $ 3,500     $ 3,500  

Accounts Payable

     3,619       4,183  

Accrued Liabilities

     5,250       3,417  

Income Taxes Payable

     2,894       3,023  

Total Current Liabilities

     15,263       14,123  
                 

Long-Term Debt

     67,750       68,500  

Deferred Income Taxes

     42,088       42,088  

Other Liabilities

     353       1,041  

Total Liabilities

     125,454       125,752  
                 

Shareholders’ Equity

     182,252       182,826  

Total Liabilities and Shareholders' Equity

   $ 307,706     $ 308,578  
                 

Additional information

                

Equity per Share

   $ 9.01     $ 9.04  

Total Cash, Restricted Cash and Marketable Securities

   $ 247,800     $ 248,590  

 

 
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Comparative statements of operations (in thousands – unaudited):

 

   

13 Weeks Ended

  
                         
   

May 28,

2017

    

May 29,

2016

    

February 26,

2017

  
                         

Net Sales

   $ 27,417     $ 31,490     $ 27,599  
                         

Cost of Sales

     21,095       22,703       20,213  
                         

Gross Profit

     6,322       8,787       7,386  

% of net sales

     23.1 %     27.9 %     26.8 %
                         

Selling, General & Administrative Expenses

     4,727       5,337       4,688  

% of net sales

     17.2 %     16.9 %     17.0 %
                         

Restructuring Charges

     1,361       70       107  
                         

Earnings from Operations

     234       3,380       2,591  
                         

Interest:

                        

Interest Income

     749       378       527  
                         

Interest Expense

     510       333       422  
                         

Net Interest Income

     239       45       105  
                         

Earnings before Income Taxes

     473       3,425       2,696  
                         

Income Tax (Benefit)/Provision

     (921 )     475       219  
                         

Net Earnings

   $ 1,394     $ 2,950     $ 2,477  

 

 

 

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

 

   

13 Weeks Ended

May 28, 2017

    

13 Weeks Ended

May 29, 2016

    

13 Weeks Ended

February 26, 2017

  
   

GAAP

    

Specials

Items

    

Before

Special

Items

    

GAAP

    

Specials

Items

    

Before

Special

Items

    

GAAP

    

Specials

Items

    

Before

Special

Items

  
                                                                         

Selling, General & Administrative

Expenses

   $ 4,727     $ (375 )   $ 4,352     $ 5,337     $ -     $ 5,337     $ 4,688     $ -     $ 4,688  

% of net sales

     17.2 %             15.9 %     16.9 %             16.9 %     17.0 %             17.0 %
                                                                         

Restructuring Charges

     1,361       (1,361 )     -       70       (70 )     -       107       (107 )     -  

% of net sales

     5.0 %             0.0 %     0.2 %             0.0 %     0.4 %             0.0 %
                                                                         

Earnings from Operations

     234       1,736       1,970       3,380       70       3,450       2,591       107       2,698  

% of net sales

     0.9 %             7.2 %     10.7 %             11.0 %     9.4 %             9.8 %
                                                                         

Earnings before Income Taxes

     473       1,736       2,209       3,425       70       3,495       2,696       107       2,803  

% of net sales

     1.7 %             8.1 %     10.9 %             11.1 %     9.8 %             10.2 %
                                                                         

Income Tax (Benefit)/Provision

     (921 )     646       (275 )     475       27       502       219       36       255  

Effective Tax Rate

     -194.7 %             -12.4 %     13.9 %             14.4 %     8.1 %             9.1 %
                                                                         

Net Earnings

     1,394       1,090       2,484       2,950       43       2,993       2,477       71       2,548  

% of net sales

     5.1 %             9.1 %     9.4 %             9.5 %     9.0 %             9.2 %

 

 

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