10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 25, 2018

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to__________

Commission file number 1-4415

PARK ELECTROCHEMICAL CORP.

(Exact Name of Registrant as Specified in Its Charter)

New York	11-1734643
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

48 South Service Road, Melville, N.Y.	11747
(Address of Principal Executive Offices)	(Zip Code)

                  (631) 465-3600                    

(Registrant's Telephone Number, Including Area Code)

                  Not Applicable                    

(Former Name, Former Address and Former Fiscal Year,

if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer [  ] Accelerated Filer [X] Non-Accelerated Filer [  ] Smaller Reporting Company [  ] Emerging Growth Company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 20,279,408 as of January 3, 2019.

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page Number
PART I.	FINANCIAL INFORMATION:
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets November 25, 2018 (Unaudited) and February 25, 2018	3
	Consolidated Statements of Operations 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (Unaudited)	4
	Consolidated Statements of Comprehensive Earnings (Loss) 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows 39 weeks ended November 25, 2018 and November 26, 2017 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
	Factors That May Affect Future Results	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
PART II.	OTHER INFORMATION:
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
SIGNATURES		26
EXHIBIT INDEX		27

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PART I. FINANCIAL INFORMATION

Item I.     Financial Statements.

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	November 25, 2018 (unaudited)			February 25, 2018*
ASSETS
Current assets
Cash and cash equivalents	$	16,995		$	18,254
Marketable securities (Note 3)		95,391			89,977
Accounts receivable, less allowance for doubtful accounts of $32 and $32, respectively		5,864			6,961
Inventories (Note 4)		4,577			3,955
Prepaid expenses and other current assets		1,503			1,473
Current Assets - Discontinued Operations (Note 10)		23,110			20,648
Total current assets		147,440			141,268
Property, plant and equipment, net		8,888			9,805
Goodwill and other intangible assets		9,818			9,818
Other assets		384			370
Non-current Assets - Discontinued Operations (Note 10)		11,409			11,799
Total assets	$	177,939		$	173,060
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,709		$	1,825
Accrued liabilities		1,461			1,022
Income taxes payable		1,539			1,456
Current Liabilities - Discontinued Operations (Note 10)		9,511			7,924
Total current liabilities		14,220			12,227
Non-current income taxes payable (Note 9)		18,594			20,364
Deferred income taxes (Note 9)		3,107			4,047
Other liabilities		1,060			314
Non-current Liabilities - Discontinued Operations (Note 10)		847			847
Total liabilities		37,828			37,799
Commitments and contingencies (Note 11)
Shareholders' equity (Note 8)
Common stock		2,096			2,096
Additional paid-in capital		169,489			169,011
Accumulated deficit		(17,615	)		(21,099	)
Accumulated other comprehensive earnings		241			131
		154,211			150,139
Less treasury stock, at cost		(14,100	)		(14,878	)
Total shareholders' equity		140,111			135,261
Total liabilities and shareholders' equity	$	177,939		$	173,060

*The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

See Notes to Consolidated Financial Statements (Unaudited).

3

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts) 

	13 Weeks Ended (Unaudited)				39 Weeks Ended (Unaudited)
	November 25,		November 26,		November 25,		November 26,
	2018		2017		2018		2017
Net sales	$	12,853	$	10,229	$	34,457	$	30,310
Cost of sales		8,569		7,264		24,176		21,840
Gross profit		4,284		2,965		10,281		8,470
Selling, general and administrative expenses		1,983		2,509		6,200		7,189
Earnings from continuing operations		2,301		456		4,081		1,281
Interest expense (Note 5)		-		689		-		1,802
Interest and other income		393		734		1,090		2,234
Earnings from continuing operations before income taxes		2,694		501		5,171		1,713
Income tax provision (Note 9)		616		157		453		438
Net earnings from continuing operations		2,078		344		4,718		1,275
Earnings from discontinued operations, net of tax (Note 10)		1,613		372		4,841		1,355
Net Earnings	$	3,691	$	716	$	9,559	$	2,630
Earnings per share (Note 7)
Basic:
Continuing Operations	$	0.10	$	0.02	$	0.23	$	0.06
Discontinued Operations		0.08		0.02		0.24		0.07
Basic earnings per share	$	0.18	$	0.04	$	0.47	$	0.13
Basic weighted average shares		20,278		20,237		20,258		20,236
Diluted:
Continuing Operations	$	0.10	$	0.02	$	0.23	$	0.06
Discontinued Operations		0.08		0.02		0.24		0.07
Diluted earnings per share	$	0.18	$	0.04	$	0.47	$	0.13
Diluted weighted average shares		20,352		20,261		20,343		20,252
Dividends declared per share	$	0.10	$	0.10	$	0.30	$	0.30

See Notes to Consolidated Financial Statements (Unaudited).

4

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(Amounts in thousands) 

	13 Weeks Ended (Unaudited)						39 Weeks Ended (Unaudited)
	November 25,			November 26,			November 25,			November 26,
	2018			2017			2018			2017
Net earnings	$	3,691		$	716		$	9,559		$	2,630
Other comprehensive earnings (loss), net of tax:
Foreign currency translation		8			(44	)		7			(3	)
Unrealized gains on marketable securities:
Unrealized holding gains arising during the period		-			-			-			24
Less: reclassification adjustment for gains included in net earnings		-			(17	)		-			(113	)
Unrealized losses on marketable securities:
Unrealized holding losses arising during the period		(19	)		(805	)		(37	)		(922	)
Less: reclassification adjustment for losses included in net earnings		30			19			140			65
Other comprehensive earnings (loss)		19			(847	)		110			(949	)
Total comprehensive earnings (loss)	$	3,710		$	(131	)	$	9,669		$	1,681

See Notes to Consolidated Financial Statements (Unaudited).

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PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands) 

	39 Weeks Ended (Unaudited)
	November 25,			November 26,
	2018			2017
Cash flows from operating activities:
Net earnings from continuing operations	$	4,718		$	1,275
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		1,317			1,366
Stock-based compensation		594			709
Deferred income taxes		(940	)		689
Amortization of bond premium		(34	)		221
Changes in operating assets and liabilities		(430	)		(828	)
Net cash provided by operating activities - continuing operations		5,225			3,432
Net cash provided by operating activities - discontinued operations		5,731			1,547
Net cash provided by operating activities		10,956			4,979
Cash flows from investing activities:
Purchase of property, plant and equipment		(399	)		(428	)
Purchases of marketable securities		(19,271	)		(162,018	)
Proceeds from sales and maturities of marketable securities		14,238			94,577
Net cash used in investing activities - continuing operations		(5,432	)		(67,869	)
Net cash used in investing activities - discontinued operations		(158	)		(275	)
Net cash used in investing activities		(5,590	)		(68,144	)
Cash flows from financing activities:
Dividends paid		(6,076	)		(6,071	)
Proceeds from exercise of stock options		661			39
Payments of long-term debt		-			(2,750	)
Net cash used in financing activities - continuing operations		(5,415	)		(8,782	)
Net cash used in financing activities - discontinued operations		-			-
Net cash used in financing activities		(5,415	)		(8,782	)
Decrease in cash and cash equivalents before effect of exchange rate changes - continuing operations		(5,622	)		(73,219	)
Increase in cash and cash equivalents before effect of exchange rate changes - discontinued operations		5,573			1,272
Decrease in cash and cash equivalents before effect of exchange rate changes		(49	)		(71,947	)
Effect of exchange rate changes on cash and cash equivalents - continuing operations		(3	)		(67	)
Effect of exchange rate changes on cash and cash equivalents - discontinued operations		(1,207	)		168
Effect of exchange rate changes on cash and cash equivalents		(1,210	)		101
Decrease in cash and cash equivalents:		(1,259	)		(71,846	)
Cash and cash equivalents, beginning of period		18,254			102,438
Cash and cash equivalents, end of period	$	16,995		$	30,592
Supplemental cash flow information:
Cash paid during the period for income taxes, net of refunds	$	2,332		$	3,074
Cash paid during the period for interest	$	-		$	1,402

See Notes to Consolidated Financial Statements (Unaudited).

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PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share (unless otherwise stated), per share and option amounts)

1. CONSOLIDATED FINANCIAL STATEMENTS

The Condensed Consolidated Balance Sheet as of November 25, 2018, the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Earnings (Loss) for the 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 and the Condensed Consolidated Statements of Cash Flows for the 39 weeks then ended have been prepared by Park Electrochemical Corp. (the “Company”), without audit. In the opinion of management, these unaudited consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at November 25, 2018 and the results of operations and cash flows for all periods presented. The Consolidated Statements of Operations are not necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018. There have been no significant changes to such accounting policies during the 39 weeks ended November 25, 2018.

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145,000 in cash. This transaction was completed on December 4, 2018. (See Note 13).

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations, in accordance with Accounting Standards Codification (“ASC”) 205-20 Discontinued Operations (See Note 10).

2. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

Fair value measurements are broken down into three levels based on the reliability of inputs as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market), and contractual prices for the underlying financial instrument, as well as other relevant economic measures.

7

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level 1 or Level 2 inputs. (See Note 3).

The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure the fair value of such assets, the Company uses Level 3 inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. There were no transfers between levels within the fair value hierarchy during the 39 weeks ended November 25, 2018 and November 26, 2017. With respect to goodwill, the Company first assesses qualitative factors to determine whether it is more likely than not that fair value is less than carrying value. If, based on that assessment, the Company believes it is more likely than not that fair value is less than carrying value, a goodwill impairment test is performed. There have been no changes in events or circumstances which required impairment charges to be recorded during the 13 or 39 weeks ended November 25, 2018.

3. MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings (loss). Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method.

8

The following is a summary of available-for-sale securities:

	November 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	74,463	$	74,463	$	-	$	-
U.S. corporate debt securities		20,928		20,928		-		-
Total marketable securities	$	95,391	$	95,391	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities:

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
November 25, 2018:
U.S. Treasury and other government securities	$	76,070	$	-	$	1,607
U.S. corporate debt securities		20,977		1		50
Total marketable securities	$	97,047	$	1	$	1,657
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

The estimated fair values of such securities at November 25, 2018 by contractual maturity are shown below:

Due in one year or less	$	41,802
Due after one year through five years		53,589
	$	95,391

4. INVENTORIES

Inventories from continuing operations are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company's products and market conditions. Inventories from continuing operations consisted of the following:

	November 25,		February 25,
	2018		2018
Inventories:
Raw materials	$	3,407	$	2,824
Work-in-process		233		159
Finished goods		937		972
	$	4,577	$	3,955

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5. LONG-TERM DEBT

On January 15, 2016, the Company entered into a three-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). The Credit Agreement provided for loans up to $75,000 and letters of credit up to $2,000.

On January 3, 2018, in connection with the Company’s voluntary prepayment of the entire loan balance, the Company terminated the Credit Agreement. The prepayment was made with the Company’s cash and cash equivalents, marketable securities and restricted cash.

Interest expense recorded under the Credit Agreement was $0 during the 13-week and 39-week periods ended November 25, 2018 and $689 and $1,802 during the 13-week and 39-week periods ended November 26, 2017, respectively.

6. STOCK-BASED COMPENSATION

As of November 25, 2018, the Company had a 2018 Stock Option Plan (the “2018 Plan”), and no other stock-based compensation plan. The 2018 Plan was adopted by the Board of Directors of the Company on May 8, 2018 and approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on July 24, 2018. No options have been granted under the 2018 Plan. Prior to the 2018 Plan, the Company had the 2002 Stock Option Plan (the “2002 Plan”) which had been approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company. All options granted under the 2002 Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant, which, pursuant to the terms of the 2002 Plan, was the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option was granted. Options granted under the 2002 Plan become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire 10 years after the date of grant.

During the 39 weeks ended November 25, 2018, the Company granted options to purchase a total of 2,650 shares of common stock to certain of its employees. The future compensation expense to be recognized in earnings before income taxes was $10 and will be recorded on a straight-line basis over the requisite service period. The fair value of the granted options was $3.66 per share using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 2.83%; expected volatility factor of 24.7%; expected dividend yield of 2.32%; and estimated option term of 5.2 years.

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the 39 weeks ended November 25, 2018. The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

The 2002 Plan terminated on May 21, 2018, and authority to grant additional options under the 2002 Plan expired on that date. All options granted under the 2002 Plan will expire in April 2028 or earlier.

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The following is a summary of option activity for the 39 weeks ended November 25, 2018:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(37,837	)		17.50
Terminated or expired		(101,463	)		19.59
Balance, November 25, 2018		748,904		$	17.28		4.78
Vested and exercisable, November 25, 2018		627,935		$	18.00		4.41

7.     EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities that have been issued by the Company; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended				39 Weeks Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Net earnings - continuing operations	$	2,078	$	344	$	4,718	$	1,275
Net earnings - discontinued operations		1,613		372		4,841		1,355
Net earnings	$	3,691	$	716	$	9,559	$	2,630
Weighted average common shares outstanding for basic EPS		20,278		20,237		20,258		20,236
Net effect of dilutive options		74		24		85		16
Weighted average shares outstanding for diluted EPS		20,352		20,261		20,343		20,252
Basic earnings per share - continuing operations		0.10		0.02		0.23		0.06
Basic earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Basic earnings per share	$	0.18	$	0.04	$	0.47	$	0.13
Diluted earnings per share - continuing operations		0.10		0.02		0.23		0.06
Diluted earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Diluted earnings per share	$	0.18	$	0.04	$	0.47	$	0.13

Potentially dilutive securities, which were not included in the computation of diluted earnings per share because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 145,000 and 599,000 for the 13 weeks ended November 25, 2018 and November 26, 2017, respectively, and 279,000 and 728,000 for the 39 weeks ended November 25, 2018 and November 26, 2017, respectively.

8. SHAREHOLDERS’ EQUITY

During the 39 weeks ended November 25, 2018, the Company sold 37,837 shares of the Company’s treasury stock pursuant to the exercises of employee stock options and received proceeds of $661 from such exercises. The Company recognized stock-based compensation expense, net of tax benefits, of $594.

On January 8, 2015, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,250,000 shares of its common stock, representing approximately 6% of the Company’s 20,945,634 total outstanding shares as of the close of business on January 7, 2015. This authorization superseded all prior Board of Directors’ authorizations to purchase shares of the Company’s common stock.

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On March 10, 2016, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,000,000 additional shares of its common stock, in addition to the unused prior authorization to purchase shares of the Company’s common stock announced on January 8, 2015. As a result, the Company is authorized to purchase up to a total of 1,531,412 shares of its common stock, representing approximately 7.6% of the Company’s 20,279,408 total outstanding shares as of the close of business on January 3, 2019.

The Company did not purchase any shares of its common stock during the 39 weeks ended November 25, 2018 or during the 39 weeks ended November 26, 2017.

9. INCOME TAXES

The Company’s effective tax rates for the 13 weeks and 39 weeks ended November 25, 2018 were 22.9% and 8.8%, respectively, compared to 31.3% and 25.6%, respectively, for the 13 weeks and 39 weeks ended November 26, 2017.

The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluations, the Company repatriated $113,700 and $135,300 in cash from the Company’s subsidiary in Singapore in the 2019 and 2018 fiscal years, respectively.

10. DISCONTINUED OPERATIONS

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145,000 in cash. The Company completed this transaction on December 4, 2018.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations.

The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)						39 Weeks Ended (Unaudited)
	November 25,			November 26,			November 25,		November 26,
	2018			2017			2018		2017
Net sales	$	16,680		$	15,910		$	55,232	$	53,082
Cost of sales		13,962			12,805			42,899		41,983
Gross profit		2,718			3,105			12,333		11,099
Selling, general and administrative expenses		2,597			2,098			7,643		6,213
Restructuring charges		836			662			1,593		5,300
Earnings (loss) from discontinued operations		(715	)		345			3,097		(414	)
Other income		2,945			-			2,945		-
Earnings (loss) from discontinued operations before income taxes		2,230			345			6,042		(414	)
Income tax provision (benefit)		617			(27	)		1,201		(1,769	)
Net earnings from discontinued operations	$	1,613		$	372		$	4,841	$	1,355

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The following table shows the summary assets and liabilities of the discontinued operations:

	November 25, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	12,261	$	12,801
Inventories		9,950		7,201
Fixed Assets, Net		6,041		6,727
Prepaid Expenses and Other Current Assets		899		646
Total Major Assets Included as Part of Discontinued Operations		29,151		27,375
Other Assets		5,368		5,072
Total Assets Included as Part of Discontinued Operations	$	34,519	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	3,717	$	2,200
Accrued Liabilities		4,460		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,334		1,364
Total Major Liabilities Included as Part of Discontinued Operations		10,129		8,542
Other Liabilities		229		229
Total Liabilities Included as Part of Discontinued Operations	$	10,358	$	8,771

* These amounts have not been audited and are based on the audited financial statements.

During the 2018 fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately $840, which the Company expects to incur primarily during the fiscal year ending February 28, 2021.

The restructuring expenses were $61 and $231 during the 13-week and 39-week periods ended November 25, 2018, respectively, and $360 and $4,423 during the 13-week and 39-week periods ended November 26, 2017, respectively.

The following table sets forth the charges and accruals related to the consolidation:

	Accrual August 26, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual November 25, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,835	$	18	$	(273	)	$	-	$	1,580	$	2,818	$	2,818
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		43		(43	)		-		-		760		901
Total Restructuring Charges	$	1,835	$	61	$	(316	)	$	-	$	1,580	$	4,659	$	5,500

The Company recorded additional restructuring charges of $101 and $357 during the 13-week and 39-week periods ended November 25, 2018, respectively, and $112 and $312 during the 13-week and 39-week periods ended November 26, 2017, respectively, related to the closure in the 2009 fiscal year of the Company’s New England Laminates Co., Inc. Business Unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York was sold on November 15, 2018; the gain on the sale was $2,945 and was recorded in the 13-week and 39-week periods ended November 25, 2018.

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11. CONTINGENCIES

Litigation 

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will not have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position.

Environmental Contingencies 

The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the “EPA”) or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the “Superfund Act”) or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at three sites.

Under the Superfund Act and similar state laws, all parties who may have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency may be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company’s subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its subsidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program.

The insurance carriers which provided general liability insurance coverage to the Company and its subsidiaries for the years during which the Company’s subsidiaries’ waste was disposed at these sites have in the past reimbursed the Company and its subsidiaries for 100% of their legal defense and remediation costs associated with two of these sites.

The Company does not record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company’s subsidiaries’ waste was disposed at two sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage, three insurance carriers reimburse the Company and its subsidiaries for 100% of the legal defense and remediation costs associated with the two sites.

Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental matters described above. The Company accrues estimated costs associated with known environmental matters, when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will not have a material adverse effect on the Company’s results of operations, cash flows or financial position.

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12. ACCOUNTING PRONOUNCEMENTS

Recently Adopted

In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to reduce the diversity that exists in the classification and presentation of changes in restricted cash in the statement of cash flows.  The new standard is effective for fiscal years beginning after December 15, 2017 and the interim periods within those fiscal years. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017 and the interim periods within those fiscal years. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, intended to improve the recognition and measurement of financial instruments, effective for public business entities for fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after December 15, 2016, including interim reporting periods within those fiscal years. In August 2015, the FASB delayed the effective date of this guidance for one year. With the delay, the new standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

Recently Issued

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), intended to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements, effective for public business entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact that this new guidance may have on its consolidated results of operations, cash flows, financial position and disclosures.

13. SUBSEQUENT EVENTS

On December 4, 2018, the Company completed the previously announced sale (the “Sale”) of its digital and radio frequency/microwave printed circuit materials business (collectively, the “Electronics Business”), including manufacturing facilities in Singapore, France, Arizona and  California and R&D facilities in Arizona and Singapore, to AGC Inc., a Japanese corporation (the “Buyer”). The Sale was completed pursuant to the terms of the Stock Purchase Agreement (the “Purchase Agreement”), dated as of July 25, 2018, by and among the Company, its wholly-owned subsidiary, ParkNelco SNC, an entity organized under the laws of France, and the Buyer. Under the terms of the Purchase Agreement, the Buyer acquired all of the outstanding equity interests in Nelco Products, Inc., a Delaware corporation, Neltec, Inc., a Delaware corporation, Neltec SA, an entity organized under the laws of France, and Nelco Products Pte. Ltd., an entity organized under the laws of Singapore (collectively, the “Acquired Subsidiaries”), all of which were, directly or indirectly, wholly-owned subsidiaries of the Company, for an aggregate purchase price of $145,000 in cash, subject to post-closing adjustments for changes in working capital compared to a target, cash in the Acquired Subsidiaries and certain accrued and unpaid taxes of the Acquired Subsidiaries.

The net proceeds from the Sale were approximately $122,561, net of transaction costs and taxes of approximately $22,439. The net gain on the Sale is estimated to be $101,568.

On January 3, 2019, the Company announced that its Board of Directors declared a special cash dividend of $4.25 per share payable February 26, 2019 to shareholders of record at the close of business on February 5, 2019.

In December 2018, the Company’s wholly owned subsidiary, Park Aerospace Technologies, Corp. (“PATC”), entered into a Development Agreement with the City of Newton, Kansas  and the Board of County Commissioners of Harvey County, Kansas pursuant to which PATC agreed to construct and operate an additional manufacturing facility approximately 90,000 square feet in size for the design, development and manufacture of advanced composite materials and parts, structures and assemblies for aerospace equipped through the purchase of machinery, equipment and furnishings and to create additional new full-time employment of specified levels during a five-year period in exchange for the commitment by the City and the County to lease to PATC three acres of land at the Newton City/County Airport, in addition to the eight acres previously leased to PATC by the City and County, and to provide financial and other assistance toward the construction of the additional facility as set forth in the Development Agreement. The Company estimates the total cost of the additional facility to be approximately $19 million, and the Company expects to complete the construction of the additional facility in the first half of the 2020 calendar year.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

General:

Park Electrochemical Corp. (“Park” or the “Company”) is an Aerospace Company which develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park’s advanced composite materials include film adhesives (undergoing qualification) and lightning strike materials. Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s patented composite Sigma Strut and Alpha Strut product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft.

On December 4, 2018, Park completed the previously announced sale (the “Sale”) of its digital and radio frequency/microwave printed circuit materials business (collectively, the “Electronics Business”), including manufacturing facilities in Singapore, France, California and Arizona and R&D facilities in Singapore and Arizona, to AGC Inc. for an aggregate purchase price of $145 million in cash, subject to post-closing adjustments for changes in working capital compared to target, cash in certain acquired subsidiaries and certain accrued and unpaid taxes of certain acquired subsidiaries. See Note 10, “Discontinued Operations”, of the Notes to Consolidated Financial Statements elsewhere in this Report for additional information on the Sale.

Financial Overview

The Company's total net sales from continuing operations in the 13 weeks and 39 weeks ended November 25, 2018 were $12.9 million and $34.5 million, respectively, compared to $10.2 million and $30.3 million in the 13 weeks and 39 weeks ended November 26, 2017, respectively.

The Company’s gross profit margins from continuing operations, measured as percentages of sales, were 33.3% and 29.8%, respectively, in the 13 weeks and 39 weeks ended November 25, 2018 compared to 29.0% and 27.9%, respectively, in the 13 weeks and 39 weeks ended November 26, 2017.

The Company’s earnings from continuing operations and net earnings from continuing operations were 405% and 504% higher, respectively, in the 13 weeks ended November 25, 2018 compared to the 13 weeks ended November 26, 2017 and 219% and 270% higher, respectively, in the 39 weeks ended November 25, 2018 than in last fiscal year’s comparable period primarily as a result of higher sales, higher net interest income due to the elimination of interest expense as a result of the Company’s voluntary prepayment of long-term debt and a lower tax provision compared to last year’s comparable periods.

The Company has a number of long-term contracts pursuant to which certain of its customers, some of which represent a substantial portion of the Company’s revenue, place orders. Long-term contracts with the Company’s customers are primarily requirements based and do not guarantee quantities. An order forecast is generally agreed concurrently with pricing for any applicable long-term contract. This order forecast is then typically updated periodically during the term of the underlying contract. Purchase orders generally are received in excess of three months in advance of delivery.

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Results of Operations:

The following table sets forth the components of the consolidated statements of operations:

	13 Weeks Ended							39 Weeks Ended
(amounts in thousands, except per share	November 25,		November 26,		%			November 25,		November 26,		%
amounts)	2018		2017		Change			2018		2017		Change
Net sales	$	12,853	$	10,229		26	%	$	34,457	$	30,310		14	%
Cost of sales		8,569		7,264		18	%		24,176		21,840		11	%
Gross profit		4,284		2,965		44	%		10,281		8,470		21	%
Selling, general and administrative expenses		1,983		2,509		(21	)%		6,200		7,189		(14	)%
Earnings from continuing operations		2,301		456		405	%		4,081		1,281		219	%
Interest expense		-		689		(100	)%		-		1,802		(100	)%
Interest and other income		393		734		(46	)%		1,090		2,234		(51	)%
Earnings from continuing operations before income taxes		2,694		501		438	%		5,171		1,713		202	%
Income tax provision		616		157		292	%		453		438		3	%
Net earnings from continuing operations		2,078		344		504	%		4,718		1,275		270	%
Earnings from discontinued operations, net of tax		1,613		372		334	%		4,841		1,355		257	%
Net Earnings	$	3,691	$	716		416	%	$	9,559	$	2,630		263	%
Earnings per share:
Basic:
Continuing Operations	$	0.10	$	0.02		400	%	$	0.23	$	0.06		283	%
Discontinued Operations		0.08		0.02		300	%		0.24		0.07		243	%
Basic earnings per share	$	0.18	$	0.04		350	%	$	0.47	$	0.13		262	%
Diluted:
Continuing Operations	$	0.10	$	0.02		400	%	$	0.23	$	0.06		283	%
Discontinued Operations		0.08		0.02		300	%		0.24		0.07		243	%
Diluted earnings per share	$	0.18	$	0.04		350	%	$	0.47	$	0.13		262	%

Net Sales

The Company’s total net sales from continuing operations worldwide in the 13 weeks ended November 25, 2018 increased to $12.9 million from $10.2 million in the 13 weeks ended November 26, 2017. The Company’s total net sales from continuing operations worldwide in the 39 weeks ended November 25, 2018 increased to $34.5 million from $30.3 million in the 39 weeks ended November 26, 2017. The increase in sales was due to the ramping up of programs on which the Company’s materials are qualified.

Gross Profit

The Company’s gross profit from continuing operations in the 13 weeks ended November 25, 2018 was higher than its gross profit from continuing operations in the prior year’s comparable period, and the gross profit from continuing operations as a percentage of sales for the Company’s worldwide operations in the 13 weeks ended November 25, 2018 increased to 33.3% from 29.0% in the 13 weeks ended November 26, 2017. The Company’s gross profit from continuing operations in the 39 weeks ended November 25, 2018 was higher than its gross profit from continuing operations in the prior year’s comparable period, and the gross profit from continuing operations as a percentage of sales for the Company’s worldwide operations in the 39 weeks ended November 25, 2018 increased to 29.8% from 27.9% in the 39 weeks ended November 26, 2017. The higher gross profit margins from continuing operations for the 13 weeks and 39 weeks ended November 25, 2018 compared to the 13 weeks and 39 weeks ended November 26, 2017 were principally a result of higher sales, reduced salaried headcount, primarily through attrition, and the partially fixed nature of overhead expenses in the 13 weeks and 39 weeks ended November 25, 2018 compared to the 13 weeks and 39 weeks ended November 26, 2017.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses from continuing operations decreased by $526,000 during the 13 weeks ended November 25, 2018, or by 21%, and decreased by $989,000 during the 39 weeks ended November 25, 2018, or by 14%, compared to last fiscal year's comparable periods, and these expenses, measured as percentages of sales from continuing operations, were 15.4% and 18.0%, respectively, in the 13 weeks and 39 weeks ended November 25, 2018 compared to 24.5% and 23.7%, respectively, in the 13 weeks and 39 weeks ended November 26, 2017. The decreases in such expenses during the 13 weeks and 39 weeks ended November 25, 2018 were primarily the result of lower payroll, travel and entertainment and stock option expenses.

Selling, general and administrative expenses from continuing operations included stock option expenses of $194,000 and $594,000, respectively, for the 13 weeks and 39 weeks ended November 25, 2018, compared to stock option expenses of $234,000 and $709,000, respectively, for the 13 weeks and 39 weeks ended November 26, 2017.

Earnings from Continuing Operations

For the reasons set forth above, the Company’s earnings from continuing operations were $2.3 million and $4.1 million, respectively, for the 13 weeks and 39 weeks ended November 25, 2018 compared to $0.5 million and $1.3 million, respectively, for the 13 weeks and 39 weeks ended November 26, 2017.

Interest Expense

Interest expense in the 13 weeks and 39 weeks ended November 26, 2017 related to the Company’s borrowings under the three-year revolving credit facility agreement that the Company entered into with HSBC Bank in the fourth quarter of the 2017 fiscal year. The agreement provided for an interest rate on the outstanding loan balance of LIBOR plus 1.15% to 2.65%. Other interest rate options were available to the Company under the agreement. On January 3, 2018, the Company voluntarily prepaid the remaining loan balance of $68.5 million. See “Liquidity and Capital Resources” elsewhere in this Item 2 and Note 5 of the Notes to Consolidated Financial Statements elsewhere in this Report for additional information.

Interest and Other Income

Interest and other income from continuing operations was $393,000 and $1.1 million, respectively, for the 13 weeks and 39 weeks ended November 25, 2018, compared to $734,000 and $2.2 million, respectively, for last fiscal year's comparable periods. Interest income decreased 46% and 51%, respectively, for the 13 weeks and 39 weeks ended November 25, 2018 primarily as a result of lower average balances of marketable securities held by the Company in the 13 weeks and 39 weeks ended November 25, 2018, compared to last fiscal year's comparable periods, partially offset by higher weighted average interest rates. During the 39 weeks ended November 25, 2018, the Company earned interest income principally from its investments, which consisted primarily of short-term instruments and money market funds.

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Income Tax Provision

The Company's effective income tax rates from continuing operations for the 13 weeks and 39 weeks ended November 25, 2018 were 22.9% and 8.8%, respectively, compared to 31.3% and 25.6%, respectively, for the 13 weeks and 39 weeks ended November 26, 2017. Tax rates during fiscal year 2019 benefitted from lower U.S. federal tax rates pertaining to the Tax Cuts and Jobs Act enacted in December 2017. The low effective income tax rate in the 2019 fiscal year 39-week period was due to a tax benefit of $788,000 related to clarifying regulations pertaining to the Tax Cuts and Jobs Act enacted in December 2017.

Net Earnings from Continuing Operations

For the reasons set forth above, the Company's net earnings from continuing operations for the 13 weeks and 39 weeks ended November 25, 2018 were $2.1 million and $4.7 million, respectively, compared to net earnings of $344,000 and $1.3 million, respectively, for the 13 weeks and 39 weeks ended November 26, 2017.

Discontinued Operations

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145.0 million in cash. The Company completed this transaction on December 4, 2018.

The operating results of the Electronics Business are classified, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations.

The Company’s net earnings from discontinued operations were higher in the 13 weeks ended November 25, 2018 compared to the 13 weeks ended November 26, 2017 primarily as a result of lower restructuring charges and a gain of $2,945 realized on the sale of its New England Laminates Co., Inc. facility located in Newburgh, New York. The Company’s net earnings from discontinued operations were higher in the 39-week period ended November 25, 2018 than in last fiscal year’s comparable period, primarily as a result of lower restructuring charges and higher sales, compared to last year’s comparable period, and a one-time litigation expense of $375,000 in the 39-week period ended November 26, 2017.

During the 2018 fiscal year, the Company consolidated its Nelco Products, Inc. Electronics Business Unit located in Fullerton, California and its Neltec, Inc. Electronics Business Unit located in Tempe, Arizona. The restructuring expenses were $61,000 and $231,000 during the 13-week and 39-week periods ended November 25, 2018, respectively, and $360,000 and $4.4 million during the 13-week and 39-week periods ended November 26, 2017, respectively.

Basic and Diluted Earnings Per Share

In the 13 weeks and 39 weeks ended November 25, 2018, basic and diluted earnings per share from continuing operations were $0.10 and $0.23, respectively, including, in both such periods, the tax benefit described above. This compared to basic and diluted earnings per share from continuing operations of $0.02 and $0.06 in the 13 weeks and 39 weeks ended November 26, 2017, respectively. The net impact of the tax benefit described above increased basic and diluted earnings per share by $0.04 the 39 weeks ended November 25, 2018.

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Liquidity and Capital Resources - Continuing Operations:

(amounts in thousands)	November 25,		February 25,
	2018		2018		Change
Cash and cash equivalents and marketable securities	$	112,386	$	108,231	$	4,155
Working capital		119,621		116,317		3,304

	39 Weeks Ended
(amounts in thousands)	November 25,			November 26,
	2018			2017			Change
Net cash provided by operating activities	$	5,225		$	3,432		$	1,793
Net cash used in investing activities		(5,432	)		(67,869	)		62,437
Net cash used in financing activities		(5,415	)		(8,782	)		3,367

Cash and Marketable Securities

Of the $112.4 million of cash and cash equivalents and marketable securities at November 25, 2018, $3.7 million was owned by certain of the Company’s wholly owned foreign subsidiaries.

The change in cash and cash equivalents and marketable securities at November 25, 2018 compared to February 25, 2018 was the result of cash used in operating activities and a number of additional factors. The significant changes in cash flows from operating activities were as follows:

● accounts receivable decreased by 16% at November 25, 2018 compared to February 25, 2018 primarily due to a decrease in days outstanding in the quarter ended November 25, 2018 compared to the fourth quarter of the 2018 fiscal year;

● inventories increased by 16% at November 25, 2018 compared to February 25, 2018 primarily due to higher sales compared to the fourth quarter of the 2018 fiscal year and higher projected sales in the fourth quarter of the 2019 fiscal year; 

● accounts payable decreased by 6% at November 25, 2018 compared to February 25, 2018 primarily due to the timing of vendor payments and raw material purchases from suppliers;

● accrued liabilities increased by 43% at November 25, 2018 compared to February 25, 2018 primarily due to increases in travel and entertainment and shutdown accruals offset by lower professional fee accruals; and

● income taxes payable decreased by 8% at November 25, 2018 compared to February 25, 2018 primarily due to income tax payments made during the 39 weeks ended November 25, 2018.

In addition, the Company paid $6.1 million in cash dividends in each of the 39-week periods ended November 25, 2018 and November 26, 2017.

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Working Capital

The decrease in working capital at November 25, 2018 compared to February 25, 2018 was due principally to the decrease in accounts receivable, partially offset by the increase in inventories and the decrease in accounts payable.

The Company's current ratio (the ratio of current assets to current liabilities) was 26.4 to 1.0 at November 25, 2018 compared to 28.0 to 1.0 at February 25, 2018.

Cash Flows

During the 39 weeks ended November 25, 2018, the Company's net earnings, before depreciation and amortization, stock-based compensation, amortization of bond premium and changes in operating assets and liabilities, were $5.2 million. During the same 39-week period, the Company expended $399,000 for the purchase of property, plant and equipment, compared with $428,000 during the 39 weeks ended November 26, 2017. The Company paid $6.1 million in cash dividends in each of the 39-week periods ended November 25, 2018 and November 26, 2017.

Other Liquidity Factors

The Company believes its financial resources will be sufficient, through the 12 months following the filing of this Form 10-Q Quarterly Report and for the foreseeable future thereafter, to provide for continued investment in working capital and property, plant and equipment and for general corporate purposes. The Company’s financial resources are also available for purchases of the Company's common stock, appropriate acquisitions and other expansions of the Company's business including the recently announced expansion in Kansas.

The Company is not aware of any circumstances or events that are reasonably likely to occur that could materially affect its liquidity.

Liquidity and Capital Resources - Discontinued Operations:

(amounts in thousands)	November 25,		February 25,
	2018		2018		Change
Cash and cash equivalents and marketable securities	$	-	$	-	$	-
Working capital		13,599		12,724		875

	39 Weeks Ended
(amounts in thousands)	November 25,			November 26,
	2018			2017			Change
Net cash provided by operating activities	$	5,731		$	1,547		$	4,184
Net cash used in investing activities		(158	)		(275	)		117
Net cash used in financing activities		-			-			-

Working Capital

The increase in working capital at November 25, 2018 compared to February 25, 2018 was due principally to the increase in inventory levels.

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The Company's current ratio (the ratio of current assets to current liabilities) was 2.4 to 1.0 at November 25, 2018 compared to 2.6 to 1.0 at February 25, 2018.

Cash Flows

During the 39 weeks ended November 25, 2018, the Company's net earnings, before depreciation and amortization, stock-based compensation, amortization of bond premium and changes in operating assets and liabilities, were $5.7 million. During the same 39-week period, the Company expended $158,000 for the purchase of property, plant and equipment, compared with $275,000 during the 39 weeks ended November 26, 2017.

Contractual Obligations:

The Company's contractual obligations and other commercial commitments to make future payments under contracts, such as lease agreements, consist only of (i) operating lease commitments and (ii) commitments to purchase raw materials. The Company has no other long-term debt, capital lease obligations, unconditional purchase obligations or other long-term obligations, standby letters of credit, guarantees, standby repurchase obligations or other commercial commitments or contingent commitments, other than two standby letters of credit in the total amount of $980,000 to secure the Company's obligations under its workers' compensation insurance program.

Off-Balance Sheet Arrangements:

The Company's liquidity is not dependent on the use of, and the Company is not engaged in, any off-balance sheet financing arrangements, such as securitization of receivables or obtaining access to assets through special purpose entities.

Critical Accounting Policies and Estimates:

The foregoing Discussion and Analysis of Financial Condition and Results of Operations is based upon the Company's Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these Consolidated Financial Statements requires the Company to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent liabilities as well as the reporting requirements of continuing and discontinued operations. On an ongoing basis, the Company evaluates its estimates, including those related to sales allowances, allowances for doubtful accounts, inventories, valuation of long-lived assets, income taxes, contingencies and litigation, and employee benefit programs. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The Company’s critical accounting policies that are important to the Consolidated Financial Statements and that entail, to a significant extent, the use of estimates and assumptions and the application of management’s judgment are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, in the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018. There have been no significant changes to such accounting policies during the 2019 fiscal year third quarter.

22

In May 2014, the FASB issued Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. In August 2015, the FASB delayed the effective date of this guidance for one year. With the delay, the new standard is effective for fiscal years beginning after December 15, 2018 and the interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

Contingencies:

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters.

Factors That May Affect Future Results.

Certain portions of this Report which do not relate to historical financial information may be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from the Company’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements. Such factors include, but are not limited to, general conditions in the electronics and aerospace industries, the Company’s competitive position, the status of the Company’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” in Item 1 and in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk.

The Company's market risk exposure at November 25, 2018 is consistent with, and not greater than, the types of market risk and amount of exposures presented in the Annual Report on Form 10-K for the fiscal year ended February 25, 2018.

Item 4.     Controls and Procedures.

(a)     Disclosure Controls and Procedures.

The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of November 25, 2018, the end of the quarterly fiscal period covered by this quarterly report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b)     Changes in Internal Control Over Financial Reporting.

Except for the implementation of certain internal controls related to the presentation of discontinued operations, there has not been any change in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

23

PART II. OTHER INFORMATION

Item 1.       Legal Proceedings.

None.

Item 1A.    Risk Factors.

There have been no material changes in the risk factors as previously disclosed in the Company’s Form 10-K Annual Report for the fiscal year ended February 25, 2018.

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information with respect to shares of the Company's Common Stock acquired by the Company during each month included in the Company’s 2019 fiscal year third quarter ended November 25, 2018.

Period	Total Number of Shares (or Units) Purchased		Average Price Paid Per Share (or Unit)		Total Number of Shares (or Units) Purchased As Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
August 27 - September 25		0	$	-		0
September 26 - October 25		0	$	-		0
October 26 - November 25		0	$	-		0
Total		0	$	-		0	1,531,412 (a)
(a)	Aggregate number of shares available to be purchased by the Company pursuant to share purchase authorizations announced on January 8, 2015 and March 10, 2016. Pursuant to such authorizations, the Company is authorized to purchase its shares from time to time on the open market or in privately negotiated transactions.

Item 3.     Defaults Upon Senior Securities.

None.

Item 4.     Mine Safety Disclosures.

None.

Item 5.     Other Information.

None.

24

Item 6.     Exhibits.

31.1 Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

31.2 Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

32.1 Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101 The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 25, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at November 25, 2018 (unaudited) and February 25, 2018; (ii) Consolidated Statements of Operations for the 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited); (iii) Consolidated Statements of Comprehensive Earnings (Loss) for the 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited); and (iv) Condensed Consolidated Statements of Cash Flows for the 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited). * +

*     Filed electronically herewith.

+     Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

25

SIGNATURES

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 thereunto duly authorized.

	Park Electrochemical Corp.
	(Registrant)
	/s/ Brian E. Shore
Date: January 4, 2019	Brian E. Shore Chief Executive Officer (principal executive officer)
	/s/ P. Matthew Farabaugh
Date: January 4, 2019	P. Matthew Farabaugh Senior Vice President and Chief Financial Officer (principal financial officer) (principal accounting officer)

26

EXHIBIT INDEX

Exhibit No.	Name
31.1	Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
31.2	Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
32.1	Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 25, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at November 25, 2018 (unaudited) and February 25, 2018; (ii) Consolidated Statements of Operations for the 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited); (iii) Consolidated Statements of Comprehensive Earnings (Loss) for the 13 weeks and 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited); and (iv) Condensed Consolidated Statements of Cash Flows for the 39 weeks ended November 25, 2018 and November 26, 2017 (unaudited). * +
*	Filed electronically herewith.
+	Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

27

EX-31.1

EXHIBIT 31.1

Certification of Principal Executive Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, Brian E. Shore, as Chief Executive Officer of Park Electrochemical Corp., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended November 25, 2018 of Park Electrochemical Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:      January 4, 2019

/s/	Brian E. Shore
Name:	Brian E. Shore
Title:	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Principal Financial Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, P. Matthew Farabaugh, as Senior Vice President and Chief Financial Officer of Park Electrochemical Corp., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended November 25, 2018 of Park Electrochemical Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:      January 4, 2019

/s/ P. Matthew Farabaugh

Name:  P. Matthew Farabaugh

Title: Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of Principal Executive Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Park Electrochemical Corp. (the "Company") for the quarterly period ended November 25, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Brian E. Shore, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brian E. Shore

Name: Brian E. Shore

Title: Chief Executive Officer

Date: January 4, 2019

EX-32.2

EXHIBIT 32.2

Certification of Principal Financial Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Park Electrochemical Corp. (the "Company") for the quarterly period ended November 25, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), P. Matthew Farabaugh, as Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/	P. Matthew Farabaugh
Name:	P. Matthew Farabaugh
Title:	Senior Vice President and Chief Financial Officer
Date:	January 4, 2019

XML

Document And Entity Information - shares	9 Months Ended
	Nov. 25, 2018	Jan. 03, 2019
Document Information [Line Items]
Entity Registrant Name	PARK ELECTROCHEMICAL CORP
Entity Central Index Key	0000076267
Trading Symbol	pke
Current Fiscal Year End Date	--03-03
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		20,279,408
Document Type	10-Q
Document Period End Date	Nov. 25, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Current assets
Cash and cash equivalents	$ 16,995	$ 18,254	[1]
Marketable securities (Note 3)	95,391	89,977	[1]
Accounts receivable, less allowance for doubtful accounts of $32 and $32, respectively	5,864	6,961	[1]
Inventories (Note 4)	4,577	3,955	[1]
Prepaid expenses and other current assets	1,503	1,473	[1]
Current Assets - Discontinued Operations (Note 10)	23,110	20,648	[1]
Total current assets	147,440	141,268	[1]
Property, plant and equipment, net	8,888	9,805	[1]
Goodwill and other intangible assets	9,818	9,818	[1]
Other assets	384	370	[1]
Non-current Assets - Discontinued Operations (Note 10)	11,409	11,799	[1]
Total assets	177,939	173,060	[1]
Current liabilities
Accounts payable	1,709	1,825	[1]
Accrued liabilities	1,461	1,022	[1]
Income taxes payable	1,539	1,456	[1]
Current Liabilities - Discontinued Operations (Note 10)	9,511	7,924	[1]
Total current liabilities	14,220	12,227	[1]
Non-current income taxes payable (Note 9)	18,594	20,364	[1]
Deferred income taxes (Note 9)	3,107	4,047	[1]
Other liabilities	1,060	314	[1]
Non-current Liabilities - Discontinued Operations (Note 10)	847	847	[1]
Total liabilities	37,828	37,799	[1]
Commitments and contingencies (Note 11)
Shareholders' equity (Note 8)
Common stock	2,096	2,096	[1]
Additional paid-in capital	169,489	169,011	[1]
Accumulated deficit	(17,615)	(21,099)	[1]
Accumulated other comprehensive earnings	241	131	[1]
	154,211	150,139	[1]
Less treasury stock, at cost	(14,100)	(14,878)	[1]
Total shareholders' equity	140,111	135,261	[1]
Total liabilities and shareholders' equity	$ 177,939	$ 173,060	[1]

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Accounts receivable, allowance for doubtful accounts	$ 32	$ 32	[1]

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Net sales	$ 12,853,000	$ 10,229,000	$ 34,457,000	$ 30,310,000
Cost of sales	8,569,000	7,264,000	24,176,000	21,840,000
Gross profit	4,284,000	2,965,000	10,281,000	8,470,000
Selling, general and administrative expenses	1,983,000	2,509,000	6,200,000	7,189,000
Earnings from continuing operations	2,301,000	456,000	4,081,000	1,281,000
Interest expense (Note 5)	0	689,000	0	1,802,000
Interest and other income	393,000	734,000	1,090,000	2,234,000
Earnings from continuing operations before income taxes	2,694,000	501,000	5,171,000	1,713,000
Income tax provision (Note 9)	616,000	157,000	453,000	438,000
Net earnings from continuing operations	2,078,000	344,000	4,718,000	1,275,000
Earnings from discontinued operations, net of tax (Note 10)	1,613,000	372,000	4,841,000	1,355,000
Net Earnings	$ 3,691,000	$ 716,000	$ 9,559,000	$ 2,630,000
Basic:
Continuing Operations (in dollars per share)	$ 0.10	$ 0.02	$ 0.23	$ 0.06
Discontinued Operations (in dollars per share)	0.08	0.02	0.24	0.07
Basic earnings per share (in dollars per share)	$ 0.18	$ 0.04	$ 0.47	$ 0.13
Basic weighted average shares (in shares)	20,278	20,237	20,258	20,236
Diluted:
Continuing Operations (in dollars per share)	$ 0.10	$ 0.02	$ 0.23	$ 0.06
Discontinued Operations (in dollars per share)	0.08	0.02	0.24	0.07
Diluted earnings per share (in dollars per share)	$ 0.18	$ 0.04	$ 0.47	$ 0.13
Diluted weighted average shares (in shares)	20,352	20,261	20,343	20,252
Common Stock, Dividends, Per Share, Declared	$ 0.10	$ 0.10	$ 0.30	$ 0.30

XML

Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Net earnings	$ 3,691	$ 716	$ 9,559	$ 2,630
Other comprehensive earnings (loss), net of tax:
Foreign currency translation	8	(44)	7	(3)
Other comprehensive earnings (loss)	19	(847)	110	(949)
Total comprehensive earnings (loss)	3,710	(131)	9,669	1,681
Gains on Marketable Securities [Member]
Other comprehensive earnings (loss), net of tax:
Unrealized holding gains (losses) arising during the period				24
Less: reclassification adjustment for gains (losses) included in net earnings		(17)		(113)
Losses on Marketable Securities [Member]
Other comprehensive earnings (loss), net of tax:
Unrealized holding gains (losses) arising during the period	(19)	(805)	(37)	(922)
Less: reclassification adjustment for gains (losses) included in net earnings	$ 30	$ 19	$ 140	$ 65

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017
Cash flows from operating activities:
Net earnings from continuing operations	$ 4,718	$ 1,275
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,317	1,366
Stock-based compensation	594	709
Deferred income taxes	(940)	689
Amortization of bond premium	(34)	221
Changes in operating assets and liabilities	(430)	(828)
Net cash provided by operating activities - continuing operations	5,225	3,432
Net cash provided by operating activities - discontinued operations	5,731	1,547
Net cash provided by operating activities	10,956	4,979
Cash flows from investing activities:
Purchase of property, plant and equipment	(399)	(428)
Purchases of marketable securities	(19,271)	(162,018)
Proceeds from sales and maturities of marketable securities	14,238	94,577
Net cash used in investing activities - continuing operations	(5,432)	(67,869)
Net cash used in investing activities - discontinued operations	(158)	(275)
Net cash used in investing activities	(5,590)	(68,144)
Cash flows from financing activities:
Dividends paid	(6,076)	(6,071)
Proceeds from exercise of stock options	661	39
Payments of long-term debt		(2,750)
Net cash used in financing activities - continuing operations	(5,415)	(8,782)
Net cash used in financing activities - discontinued operations
Net cash used in financing activities	(5,415)	(8,782)
Decrease in cash and cash equivalents before effect of exchange rate changes - continuing operations	(5,622)	(73,219)
Increase in cash and cash equivalents before effect of exchange rate changes - discontinued operations	5,573	1,272
Decrease in cash and cash equivalents before effect of exchange rate changes	(49)	(71,947)
Effect of exchange rate changes on cash and cash equivalents - continuing operations	(3)	(67)
Effect of exchange rate changes on cash and cash equivalents - discontinued operations	(1,207)	168
Effect of exchange rate changes on cash and cash equivalents	(1,210)	101
Decrease in cash and cash equivalents:	(1,259)	(71,846)
Cash and cash equivalents, beginning of period	18,254	102,438
Cash and cash equivalents, end of period	16,995	30,592
Supplemental cash flow information:
Cash paid during the period for income taxes, net of refunds	2,332	3,074
Cash paid during the period for interest		$ 1,084

XML

Note 1 - Consolidated Financial Statements

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. CONSOLIDATED FINANCIAL STATEMENTS

The Condensed Consolidated Balance Sheet as of

November 25, 2018,

the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Earnings (Loss) for the

13

weeks and

39

weeks ended

November 25, 2018

and

November 26, 2017

and the Condensed Consolidated Statements of Cash Flows for the

39

weeks then ended have been prepared by Park Electrochemical Corp. (the “Company”), without audit. In the opinion of management, these unaudited consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at

November 25, 2018

and the results of operations and cash flows for all periods presented. The Consolidated Statements of Operations are

not

necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

10

-K for the fiscal year ended

February 25, 2018.

There have been

no

significant changes to such accounting policies during the

39

weeks ended

November 25, 2018.

On

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash. This transaction was completed on

December 4, 2018. (

See Note

13

).

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations, in accordance with Accounting Standards Codification (“ASC”)

205

-

20

Discontinued Operations

(See Note

10

).

XML

Note 2 - Fair Value Measurements

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

2

. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (

i.e.

, the “exit price”) in an orderly transaction between market participants at the measurement date.

Fair value measurements are broken down into

three

levels based on the reliability of inputs as follows:

Level

1

inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level

2

inputs are inputs, other than quoted prices included within Level

1,

that are observable for the asset or liability, either directly or indirectly. Level

2

inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (

e.g.

, interest rates and yield curves observable at commonly quoted intervals or current market), and contractual prices for the underlying financial instrument, as well as other relevant economic measures.

Level

3

inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are

not

available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level

1

or Level

2

inputs. (See Note

3

).

The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure the fair value of such assets, the Company uses Level

3

inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. There were

no

transfers between levels within the fair value hierarchy during the

39

weeks ended

November 25, 2018

and

November 26, 2017.

With respect to goodwill, the Company

first

assesses qualitative factors to determine whether it is more likely than

not

that fair value is less than carrying value. If, based on that assessment, the Company believes it is more likely than

not

that fair value is less than carrying value, a goodwill impairment test is performed. There have been

no

changes in events or circumstances which required impairment charges to be recorded during the

13

or

39

weeks ended

November 25, 2018.

XML

Note 3 - Marketable Securities

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3

.

MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings (loss). Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method.

The following is a summary of available-for-sale securities:

	November 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	74,463	$	74,463	$	-	$	-
U.S. corporate debt securities		20,928		20,928		-		-
Total marketable securities	$	95,391	$	95,391	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities:

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
November 25, 2018:
U.S. Treasury and other government securities	$	76,070	$	-	$	1,607
U.S. corporate debt securities		20,977		1		50
Total marketable securities	$	97,047	$	1	$	1,657
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

The estimated fair values of such securities at

November 25, 2018

by contractual maturity are shown below:

Due in one year or less	$	41,802
Due after one year through five years		53,589
	$	95,391

XML

Note 4 - Inventories

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

4

.

INVENTORIES

Inventories from continuing operations are stated at the lower of cost (

first

-in,

first

-out method) or net realizable value. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company's products and market conditions. Inventories from continuing operations consisted of the following:

	November 25,		February 25,
	2018		2018
Inventories:
Raw materials	$	3,407	$	2,824
Work-in-process		233		159
Finished goods		937		972
	$	4,577	$	3,955

XML

Note 5 - Long-term Debt

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

5

.

LONG-TERM DEBT

On

January 15, 2016,

the Company entered into a

three

-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). The Credit Agreement provided for loans up to

$75,000

and letters of credit up to

$2,000.

On

January 3, 2018,

in connection with the Company’s voluntary prepayment of the entire loan balance, the Company terminated the Credit Agreement. The prepayment was made with the Company’s cash and cash equivalents, marketable securities and restricted cash.

Interest expense recorded under the Credit Agreement was

$0

during the

13

-week and

39

-week periods ended

November 25, 2018

and

$689

and

$1,802

during the

13

-week and

39

-week periods ended

November 26, 2017,

respectively.

XML

Note 6 - Stock-based Compensation

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6.

STOCK-BASED COMPENSATION

As of

November 25, 2018,

the Company had a

2018

Stock Option Plan (the

“2018

Plan”), and

no

other stock-based compensation plan. The

2018

Plan was adopted by the Board of Directors of the Company on

May 8, 2018

and approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on

July 24, 2018.

No

options have been granted under the

2018

Plan. Prior to the

2018

Plan, the Company had the

2002

Stock Option Plan (the

“2002

Plan”) which had been approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company. All options granted under the

2002

Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant, which, pursuant to the terms of the

2002

Plan, was the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option was granted. Options granted under the

2002

Plan become exercisable

25%

one

year after the date of grant, with an additional

25%

exercisable each succeeding anniversary of the date of grant, and expire

10

years after the date of grant.

During the

39

weeks ended

November 25, 2018,

the Company granted options to purchase a total of

2,650

shares of common stock to certain of its employees. The future compensation expense to be recognized in earnings before income taxes was

$10

and will be recorded on a straight-line basis over the requisite service period. The fair value of the granted options was

$3.66

per share using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of

2.83%;

expected volatility factor of

24.7%;

expected dividend yield of

2.32%;

and estimated option term of

5.2

years.

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the

39

weeks ended

November 25, 2018.

The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

The

2002

Plan terminated on

May 21, 2018,

and authority to grant additional options under the

2002

Plan expired on that date. All options granted under the

2002

Plan will expire in

April 2028

or earlier.

The following is a summary of option activity for the

39

weeks ended

November 25, 2018:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(37,837	)		17.50
Terminated or expired		(101,463	)		19.59
Balance, November 25, 2018		748,904		$	17.28		4.78
Vested and exercisable, November 25, 2018		627,935		$	18.00		4.41

XML

Note 7 - Earnings Per Share

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

7

.     

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities that have been issued by the Company; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended				39 Weeks Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Net earnings - continuing operations	$	2,078	$	344	$	4,718	$	1,275
Net earnings - discontinued operations		1,613		372		4,841		1,355
Net earnings	$	3,691	$	716	$	9,559	$	2,630
Weighted average common shares outstanding for basic EPS		20,278		20,237		20,258		20,236
Net effect of dilutive options		74		24		85		16
Weighted average shares outstanding for diluted EPS		20,352		20,261		20,343		20,252
Basic earnings per share - continuing operations		0.10		0.02		0.23		0.06
Basic earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Basic earnings per share	$	0.18	$	0.04	$	0.47	$	0.13
Diluted earnings per share - continuing operations		0.10		0.02		0.23		0.06
Diluted earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Diluted earnings per share	$	0.18	$	0.04	$	0.47	$	0.13

Potentially dilutive securities, which were

not

included in the computation of diluted earnings per share because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were

145,000

and

599,000

for the

13

weeks ended

November 25, 2018

and

November 26, 2017,

respectively, and

279,000

and

728,000

for the

39

weeks ended

November 25, 2018

and

November 26, 2017,

respectively.

XML

Note 8 - Shareholders' Equity

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8

.

SHAREHOLDERS’ EQUITY

During the

39

weeks ended

November 25, 2018,

the Company sold

37,837

shares of the Company’s treasury stock pursuant to the exercises of employee stock options and received proceeds of

$661

from such exercises. The Company recognized stock-based compensation expense, net of tax benefits, of

$594.

On

January 8, 2015,

the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to

1,250,000

shares of its common stock, representing approximately

6%

of the Company’s

20,945,634

total outstanding shares as of the close of business on

January 7, 2015.

This authorization superseded all prior Board of Directors’ authorizations to purchase shares of the Company’s common stock.

On

March 10, 2016,

the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to

1,000,000

additional shares of its common stock, in addition to the unused prior authorization to purchase shares of the Company’s common stock announced on

January 8, 2015.

As a result, the Company is authorized to purchase up to a total of

1,531,412

shares of its common stock, representing approximately

7.6%

of the Company’s

20,279,408

total outstanding shares as of the close of business on

January 3, 2019.

The Company did

not

purchase any shares of its common stock during the

39

weeks ended

November 25, 2018

or during the

39

weeks ended

November 26, 2017.

XML

Note 9 - Income Taxes

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9

.

INCOME TAXES

The Company’s effective tax rates for the

13

weeks and

39

weeks ended

November 25, 2018

were

22.9%

and

8.8%,

respectively, compared to

31.3%

and

25.6%,

respectively, for the

13

weeks and

39

weeks ended

November 26, 2017.

The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluations, the Company repatriated

$113,700

and

$135,300

in cash from the Company’s subsidiary in Singapore in the

2019

and

2018

fiscal years, respectively.

XML

Note 10 - Discontinued Operations

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

1

0

.

DISCONTINUED OPERATIONS

On

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash. The Company completed this transaction on

December 4, 2018.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations.

The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)						39 Weeks Ended (Unaudited)
	November 25,			November 26,			November 25,		November 26,
	2018			2017			2018		2017
Net sales	$	16,680		$	15,910		$	55,232	$	53,082
Cost of sales		13,962			12,805			42,899		41,983
Gross profit		2,718			3,105			12,333		11,099
Selling, general and administrative expenses		2,597			2,098			7,643		6,213
Restructuring charges		836			662			1,593		5,300
Earnings (loss) from discontinued operations		(715	)		345			3,097		(414	)
Other income		2,945			-			2,945		-
Earnings (loss) from discontinued operations before income taxes		2,230			345			6,042		(414	)
Income tax provision (benefit)		617			(27	)		1,201		(1,769	)
Net earnings from discontinued operations	$	1,613		$	372		$	4,841	$	1,355

The following table shows the summary assets and liabilities of the discontinued operations:

	November 25, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	12,261	$	12,801
Inventories		9,950		7,201
Fixed Assets, Net		6,041		6,727
Prepaid Expenses and Other Current Assets		899		646
Total Major Assets Included as Part of Discontinued Operations		29,151		27,375
Other Assets		5,368		5,072
Total Assets Included as Part of Discontinued Operations	$	34,519	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	3,717	$	2,200
Accrued Liabilities		4,460		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,334		1,364
Total Major Liabilities Included as Part of Discontinued Operations		10,129		8,542
Other Liabilities		229		229
Total Liabilities Included as Part of Discontinued Operations	$	10,358	$	8,771

* These amounts have

not

been audited and are based on the audited financial statements.

During the

2018

fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately

$840,

which the Company expects to incur primarily during the fiscal year ending

February 28, 2021.

The restructuring expenses were

$61

and

$231

during the

13

-week and

39

-week periods ended

November 25, 2018,

respectively, and

$360

and

$4,423

during the

13

-week and

39

-week periods ended

November 26, 2017,

respectively.

The following table sets forth the charges and accruals related to the consolidation:

	Accrual August 26, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual November 25, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,835	$	18	$	(273	)	$	-	$	1,580	$	2,818	$	2,818
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		43		(43	)		-		-		760		901
Total Restructuring Charges	$	1,835	$	61	$	(316	)	$	-	$	1,580	$	4,659	$	5,500

The Company recorded additional restructuring charges of

$101

and

$357

during the

13

-week and

39

-week periods ended

November 25, 2018,

respectively, and

$112

and

$312

during the

13

-week and

39

-week periods ended

November 26, 2017,

respectively, related to the closure in the

2009

fiscal year of the Company’s New England Laminates Co., Inc. Business Unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York was sold on

November 15, 2018; 

the gain on the sale was

$2,945

and was recorded in the

13

-week and

39

-week periods ended

November 25, 2018.

XML

Note 11 - Contingencies

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Contingencies Disclosure [Text Block]

1

1

.

CONTINGENCIES

Litigation

 

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves

may

change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will

not

have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position.

Environmental Contingencies

The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the “EPA”) or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the “Superfund Act”) or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at

three

sites.

Under the Superfund Act and similar state laws, all parties who

may

have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency

may

be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company’s subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its subsidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program.

The insurance carriers which provided general liability insurance coverage to the Company and its subsidiaries for the years during which the Company’s subsidiaries’ waste was disposed at these sites have in the past reimbursed the Company and its subsidiaries for

100%

of their legal defense and remediation costs associated with

two

of these sites.

The Company does

not

record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company’s subsidiaries’ waste was disposed at

two

sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage,

three

insurance carriers reimburse the Company and its subsidiaries for

100%

of the legal defense and remediation costs associated with the

two

sites.

Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental matters described above. The Company accrues estimated costs associated with known environmental matters, when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will

not

have a material adverse effect on the Company’s results of operations, cash flows or financial position.

XML

Note 12 - Accounting Pronouncements

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

1

2

.

A

CCOUNT

I

NG

P

RONOUNCEMENTS

Recently

Adopted

In

November 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

-

18,

Statement of Cash Flows (Topic

230

): Restricted Cash

, to reduce the diversity that exists in the classification and presentation of changes in restricted cash in the statement of cash flows.  The new standard is effective for fiscal years beginning after

December 15, 2017

and the interim periods within those fiscal years. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

August 2016,

the FASB issued ASU

No.

2016

-

15,

Statement of Cash Flows (Topic

230

)

:

Classification of Certain Cash Receipts and Cash Payments

, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after

December 15, 2017

and the interim periods within those fiscal years. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

January 2016,

the FASB issued ASU

No.

2016

-

01,

Financial Instruments Overall (Subtopic

825

-

10

): Recognition and Measurement of Financial Assets and Financial Liabilities,

intended to improve the recognition and measurement of financial instruments, effective for public business entities for fiscal years beginning after

December 15, 2017,

and the interim periods within those fiscal years. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

May 2014,

the FASB issued ASC Topic

606,

Revenue from Contracts with Customers

, which supersedes the revenue recognition requirements in ASC Topic

605,

Revenue Recognition

, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after

December 15, 2016,

including interim reporting periods within those fiscal years. In

August 2015,

the FASB delayed the effective date of this guidance for

one

year. With the delay, the new standard is effective for fiscal years beginning after

December 15, 2017

and interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

Recently Issued

In

February 2016,

the FASB issued ASU

No.

2016

-

02,

Leases (Topic

842

)

, intended to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements, effective for public business entities for fiscal years beginning after

December 15, 2018

and interim periods within those fiscal years (

i.e

.,

January 1, 2019,

for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact that this new guidance

may

have on its consolidated results of operations, cash flows, financial position and disclosures.

XML

Note 13 - Subsequent Events

9 Months Ended

Nov. 25, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

13

.

SUBSEQUENT EVENTS

On

December 4, 2018,

the Company completed the previously announced sale (the “Sale”) of its digital and radio frequency/microwave printed circuit materials business (collectively, the “Electronics Business”), including manufacturing facilities in Singapore, France, Arizona and  California and R&D facilities in Arizona and Singapore, to AGC Inc., a Japanese corporation (the “Buyer”). The Sale was completed pursuant to the terms of the Stock Purchase Agreement (the “Purchase Agreement”), dated as of

July 25, 2018,

by and among the Company, its wholly-owned subsidiary, ParkNelco SNC, an entity organized under the laws of France, and the Buyer. Under the terms of the Purchase Agreement, the Buyer acquired all of the outstanding equity interests in Nelco Products, Inc., a Delaware corporation, Neltec, Inc., a Delaware corporation, Neltec SA, an entity organized under the laws of France, and Nelco Products Pte. Ltd., an entity organized under the laws of Singapore (collectively, the “Acquired Subsidiaries”), all of which were, directly or indirectly, wholly-owned subsidiaries of the Company, for an aggregate purchase price of

$145,000

in cash, subject to post-closing adjustments for changes in working capital compared to a target, cash in the Acquired Subsidiaries and certain accrued and unpaid taxes of the Acquired Subsidiaries.

The net proceeds from the Sale were approximately

$122,561,

net of transaction costs and taxes of approximately

$22,439.

The net gain on the Sale is estimated to be

$101,568.

On

January 3, 2019,

the Company announced that its Board of Directors declared a special cash dividend of

$4.25

per share payable

February 26, 2019

to shareholders of record at the close of business on

February 5, 2019.

In

December 2018,

the Company’s wholly owned subsidiary, Park Aerospace Technologies, Corp. (“PATC”), entered into a Development Agreement with the City of Newton, Kansas  and the Board of County Commissioners of Harvey County, Kansas pursuant to which PATC agreed to construct and operate an additional manufacturing facility approximately

90,000

square feet in size for the design, development and manufacture of advanced composite materials and parts, structures and assemblies for aerospace equipped through the purchase of machinery, equipment and furnishings and to create additional new full-time employment of specified levels during a

five

-year period in exchange for the commitment by the City and the County to lease to PATC

three

acres of land at the Newton City/County Airport, in addition to the

eight

acres previously leased to PATC by the City and County, and to provide financial and other assistance toward the construction of the additional facility as set forth in the Development Agreement. The Company estimates the total cost of the additional facility to be approximately

$19

million, and the Company expects to complete the construction of the additional facility in the

first

half of the

2020

calendar year.

XML

Note 3 - Marketable Securities (Tables)

9 Months Ended

Nov. 25, 2018

Notes Tables

Schedule of Fair Value of Separate Accounts by Major Category of Investment [Table Text Block]

	November 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	74,463	$	74,463	$	-	$	-
U.S. corporate debt securities		20,928		20,928		-		-
Total marketable securities	$	95,391	$	95,391	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

Schedule of Unrealized Loss on Investments [Table Text Block]

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
November 25, 2018:
U.S. Treasury and other government securities	$	76,070	$	-	$	1,607
U.S. corporate debt securities		20,977		1		50
Total marketable securities	$	97,047	$	1	$	1,657
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

Investments Classified by Contractual Maturity Date [Table Text Block]

Due in one year or less	$	41,802
Due after one year through five years		53,589
	$	95,391

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Note 4 - Inventories (Tables)

9 Months Ended

Nov. 25, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	November 25,		February 25,
	2018		2018
Inventories:
Raw materials	$	3,407	$	2,824
Work-in-process		233		159
Finished goods		937		972
	$	4,577	$	3,955

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Note 6 - Stock-based Compensation (Tables)

9 Months Ended

Nov. 25, 2018

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(37,837	)		17.50
Terminated or expired		(101,463	)		19.59
Balance, November 25, 2018		748,904		$	17.28		4.78
Vested and exercisable, November 25, 2018		627,935		$	18.00		4.41

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Note 7 - Earnings Per Share (Tables)

9 Months Ended

Nov. 25, 2018

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	13 Weeks Ended				39 Weeks Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Net earnings - continuing operations	$	2,078	$	344	$	4,718	$	1,275
Net earnings - discontinued operations		1,613		372		4,841		1,355
Net earnings	$	3,691	$	716	$	9,559	$	2,630
Weighted average common shares outstanding for basic EPS		20,278		20,237		20,258		20,236
Net effect of dilutive options		74		24		85		16
Weighted average shares outstanding for diluted EPS		20,352		20,261		20,343		20,252
Basic earnings per share - continuing operations		0.10		0.02		0.23		0.06
Basic earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Basic earnings per share	$	0.18	$	0.04	$	0.47	$	0.13
Diluted earnings per share - continuing operations		0.10		0.02		0.23		0.06
Diluted earnings per share - discontinued operations		0.08		0.02		0.24		0.07
Diluted earnings per share	$	0.18	$	0.04	$	0.47	$	0.13

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Note 10 - Discontinued Operations (Tables)

9 Months Ended

Nov. 25, 2018

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	13 Weeks Ended (Unaudited)						39 Weeks Ended (Unaudited)
	November 25,			November 26,			November 25,		November 26,
	2018			2017			2018		2017
Net sales	$	16,680		$	15,910		$	55,232	$	53,082
Cost of sales		13,962			12,805			42,899		41,983
Gross profit		2,718			3,105			12,333		11,099
Selling, general and administrative expenses		2,597			2,098			7,643		6,213
Restructuring charges		836			662			1,593		5,300
Earnings (loss) from discontinued operations		(715	)		345			3,097		(414	)
Other income		2,945			-			2,945		-
Earnings (loss) from discontinued operations before income taxes		2,230			345			6,042		(414	)
Income tax provision (benefit)		617			(27	)		1,201		(1,769	)
Net earnings from discontinued operations	$	1,613		$	372		$	4,841	$	1,355

	November 25, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	12,261	$	12,801
Inventories		9,950		7,201
Fixed Assets, Net		6,041		6,727
Prepaid Expenses and Other Current Assets		899		646
Total Major Assets Included as Part of Discontinued Operations		29,151		27,375
Other Assets		5,368		5,072
Total Assets Included as Part of Discontinued Operations	$	34,519	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	3,717	$	2,200
Accrued Liabilities		4,460		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,334		1,364
Total Major Liabilities Included as Part of Discontinued Operations		10,129		8,542
Other Liabilities		229		229
Total Liabilities Included as Part of Discontinued Operations	$	10,358	$	8,771

Restructuring and Related Costs [Table Text Block]

	Accrual August 26, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual November 25, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,835	$	18	$	(273	)	$	-	$	1,580	$	2,818	$	2,818
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		43		(43	)		-		-		760		901
Total Restructuring Charges	$	1,835	$	61	$	(316	)	$	-	$	1,580	$	4,659	$	5,500

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Note 1 - Consolidated Financial Statements (Details Textual) $ in Millions	Jul. 25, 2018 USD ($)
Electronics Business [Member] | Discontinued Operations, Held-for-sale [Member]
Disposal Group, Including Discontinued Operation, Consideration	$ 145

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Note 3 - Marketable Securities - Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Available-for-sale securities	$ 95,391	$ 89,977
Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	95,391	89,977
Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
US Treasury and Government [Member]
Available-for-sale securities	74,463	78,361
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	74,463	78,361
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
Debt Security, Corporate, US [Member]
Available-for-sale securities	20,928	11,616
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	20,928	11,616
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities

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Note 3 - Marketable Securities - Summary of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Amortized cost basis	$ 97,047	$ 91,791
Gross unrealized gains	1
Gross unrealized losses	1,657	1,814
US Treasury and Government [Member]
Amortized cost basis	76,070	80,116
Gross unrealized gains
Gross unrealized losses	1,607	1,755
Debt Security, Corporate, US [Member]
Amortized cost basis	20,977	11,675
Gross unrealized gains	1
Gross unrealized losses	$ 50	$ 59

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Note 3 - Marketable Securities - Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Due in one year or less	$ 41,802
Due after one year through five years	53,589
	$ 95,391	$ 89,977

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Note 4 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Nov. 25, 2018	Feb. 25, 2018
Inventories:
Raw materials	$ 3,407	$ 2,824
Work-in-process	233	159
Finished goods	937	972
	$ 4,577	$ 3,955	[1]

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

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Note 5 - Long-term Debt (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Jan. 15, 2016	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Interest Expense, Total		$ 0	$ 689,000	$ 0	$ 1,802,000
HSBC Bank USA [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000
HSBC Bank USA [Member] | Revolving Credit Facility [Member]
Debt Instrument, Term	3 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000

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Note 6 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2018	Nov. 25, 2018	Nov. 25, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,650
Percentage of Stock Options, Exercisable One Year From Date of Grant		25.00%
Percentage of Stock Options Exercisable On Each Succeeding Year from Date of Grant		25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 10	$ 10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 3.66
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			2.83%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			24.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			2.32%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			5 years 73 days
2018 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0

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Note 6 - Stock-based Compensation - Option Activity (Details)	9 Months Ended
	Nov. 25, 2018 $ / shares shares
Outstanding options (in shares) | shares	885,554
Balance, weighted average exercise price (in dollars per share) | $ / shares	$ 17.55
Outstanding options, granted (in shares) | shares	2,650
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 17.75
Outstanding options, exercised (in shares) | shares	(37,837)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 17.50
Outstanding options, terminated or expired (in shares) | shares	(101,463)
Terminated or expired, weighted average exercise price (in dollars per share) | $ / shares	$ 19.59
Outstanding options (in shares) | shares	748,904
Balance, weighted average exercise price (in dollars per share) | $ / shares	$ 17.28
Balance, weighted average remaining contractual term (Year)	4 years 284 days
Vested and exercisable (in shares) | shares	627,935
Vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 18
Vested and exercisable, weighted average remaining contractual term (Year)	4 years 149 days

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Note 7 - Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Nov. 28, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	145,000	599,000	279,000	728,000

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Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Net earnings - continuing operations	$ 2,078	$ 344	$ 4,718	$ 1,275
Net earnings - discontinued operations	1,613	372	4,841	1,355
Net earnings	$ 3,691	$ 716	$ 9,559	$ 2,630
Weighted average common shares outstanding for basic EPS (in shares)	20,278	20,237	20,258	20,236
Net effect of dilutive options (in shares)	74	24	85	16
Weighted average shares outstanding for diluted EPS (in shares)	20,352	20,261	20,343	20,252
Basic earnings per share - continuing operations (in dollars per share)	$ 0.10	$ 0.02	$ 0.23	$ 0.06
Basic earnings per share - discontinued operations (in dollars per share)	0.08	0.02	0.24	0.07
Basic earnings per share (in dollars per share)	0.18	0.04	0.47	0.13
Diluted earnings per share - continuing operations (in dollars per share)	0.10	0.02	0.23	0.06
Diluted earnings per share - discontinued operations (in dollars per share)	0.08	0.02	0.24	0.07
Diluted earnings per share (in dollars per share)	$ 0.18	$ 0.04	$ 0.47	$ 0.13

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Note 8 - Shareholders' Equity (Details Textual) - USD ($) $ in Thousands		9 Months Ended
	Mar. 10, 2016	Nov. 25, 2018	Nov. 26, 2017	Jan. 03, 2019	Jan. 08, 2015	Jan. 07, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		37,837
Proceeds from Sale of Treasury Stock, Stock Options Exercised		$ 661
Stock Repurchase Program, Number of Shares Authorized to be Repurchased					1,250,000
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased						6.00%
Common Stock, Shares, Outstanding, Ending Balance						20,945,634
Stock Repurchase Program, Number of Additional Shares Authorized to be Repurchased	1,000,000
Stock Repurchased During Period, Shares		0	0
Subsequent Event [Member]
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased				7.60%
Common Stock, Shares, Outstanding, Ending Balance				20,279,408
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased				1,531,412
Employee Stock Option [Member]
Allocated Share-based Compensation Expense, Net of Tax		$ 594

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Note 9 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017	Feb. 25, 2018
Effective Income Tax Rate Reconciliation, Percent, Total	22.90%	31.30%	8.80%	25.60%
Foreign Earnings Repatriated			$ 113.7		$ 135.3

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Note 10 - Discontinued Operations (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017	Dec. 04, 2018
Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member]
Restructuring and Related Cost, Expected Cost Remaining	$ 840		$ 840
Restructuring Charges, Total	61	$ 360	231	$ 4,423
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total	2,945		2,945
Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] | Facility Closing [Member]
Restructuring Charges, Total	$ 101	$ 112	$ 357	$ 312
Electronics Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | Subsequent Event [Member]
Disposal Group, Including Discontinued Operation, Consideration					$ 145,000

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Note 10 - Discontinued Operations - Summary for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017	Feb. 25, 2018	[1]
Net earnings from discontinued operations	$ 1,613	$ 372	$ 4,841	$ 1,355
Electronics Business [Member] | Discontinued Operations, Held-for-sale [Member]
Net sales	16,680	15,910	55,232	53,082
Cost of sales	13,962	12,805	42,899	41,983
Gross profit	2,718	3,105	12,333	11,099
Selling, general and administrative expenses	2,597	2,098	7,643	6,213
Restructuring charges	836	662	1,593	5,300
Earnings (loss) from discontinued operations	(715)	345	3,097	(414)
Other income	2,945		2,945
Earnings (loss) from discontinued operations before income taxes	2,230	345	6,042	(414)
Income tax provision (benefit)	617	(27)	1,201	(1,769)
Net earnings from discontinued operations	1,613	$ 372	4,841	$ 1,355
Accounts Receivable, Net	12,261		12,261		$ 12,801
Inventories	9,950		9,950		7,201
Fixed Assets, Net	6,041		6,041		6,727
Prepaid Expenses and Other Current Assets	899		899		646
Total Major Assets Included as Part of Discontinued Operations	29,151		29,151		27,375
Other Assets	5,368		5,368		5,072
Total Assets Included as Part of Discontinued Operations	34,519		34,519		32,447
Accounts Payable	3,717		3,717		2,200
Accrued Liabilities	4,460		4,460		4,360
Deferred Income Taxes	618		618		618
Income Taxes Payable	1,334		1,334		1,364
Total Major Liabilities Included as Part of Discontinued Operations	10,129		10,129		8,542
Other Liabilities	229		229		229
Total Liabilities Included as Part of Discontinued Operations	$ 10,358		$ 10,358		$ 8,771

[1] These amounts have not been audited and are based on the audited financial statements.

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Note 10 - Discontinued Operations - Restructuring Charges (Details) - Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Accrued, Beginning Balance	$ 1,835
Current Period Charges	61	$ 360	$ 231	$ 4,423
Cash Payments	(316)
Non-Cash Charges
Accrued, Ending Balance	1,580		1,580
Total Costs Accrued to Date	4,659		4,659
Total Expected Costs	5,500		5,500
Facility Lease Costs [Member]
Accrued, Beginning Balance	1,835
Current Period Charges	18
Cash Payments	(273)
Non-Cash Charges
Accrued, Ending Balance	1,580		1,580
Total Costs Accrued to Date	2,818		2,818
Total Expected Costs	2,818		2,818
Employee Severance [Member]
Accrued, Beginning Balance
Current Period Charges
Cash Payments
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date	1,081		1,081
Total Expected Costs	1,081		1,081
Equipment Removal [Member]
Accrued, Beginning Balance
Current Period Charges
Cash Payments
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date
Total Expected Costs	700		700
Other Restructuring [Member]
Accrued, Beginning Balance
Current Period Charges	43
Cash Payments	(43)
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date	760		760
Total Expected Costs	$ 901		$ 901

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Note 11 - Contingencies (Details Textual) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 25, 2018 USD ($)	Nov. 25, 2018 USD ($)
Number of Sites of Company or Subsidiaries That Have Been Named for Potential Environmental Remediation Liability		3
Percentage of Legal Defense and Remediation Costs Associated with Sites Reimbursed by Insurance Carriers		100.00%
Number of Units Covered Under General Liability Insurance Coverage		2
Environmental Remediation Expense	$ 0
Accrual for Environmental Loss Contingencies, Ending Balance	$ 0	$ 0

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Note 13 - Subsequent Events (Details Textual) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 03, 2019 $ / shares	Dec. 04, 2018 USD ($)	Dec. 31, 2018 USD ($) ft²	Nov. 25, 2018 $ / shares	Nov. 26, 2017 $ / shares	Nov. 25, 2018 $ / shares	Nov. 26, 2017 $ / shares
Common Stock, Dividends, Per Share, Declared | $ / shares				$ 0.10	$ 0.10	$ 0.30	$ 0.30
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared | $ / shares	$ 4.25
Dividends Payable, Date Declared	Jan. 03, 2019
Dividends Payable, Date to be Paid	Feb. 26, 2019
Dividends Payable, Date of Record	Feb. 05, 2019
Subsequent Event [Member] | Additional Manufacturing Facility [Member]
Area of Land | ft²			90,000
Construction in Progress Expenditures Incurred but Not yet Paid			$ 19,000
Electronics Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | Subsequent Event [Member]
Disposal Group, Including Discontinued Operation, Consideration		$ 145,000
Proceeds from Divestiture of Businesses		122,561
Disposal Group, Including Discontinued Operation, Transaction Costs and Taxes		22,439
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total		$ 101,568