Park Aerospace Corp. (NYSE-PKE) reported results for the 2024
fiscal year fourth quarter and full fiscal year ended March 3,
2024. The Company will conduct a conference call to discuss its
financial results and other matters at 5:00 p.m. EDT today. A live
audio webcast of the event, along with presentation materials, will
be available at https://edge.media-server.com/mmc/p/zyr8codr at
5:00 p.m. EDT today. The presentation materials will also be
available at approximately 4:15 p.m. EDT today at
https://parkaerospace.com/shareholders/investor-conference-calls/
and on the Company’s website at www.parkaerospace.com under
“Investor Conference Calls” on the “Shareholders” page.
Park reported net sales of $16,333,000 for the
2024 fiscal year fourth quarter ended March 3, 2024 compared to
$13,530,000 for the 2023 fiscal year fourth quarter ended February
26, 2023 and $11,639,000 for the 2024 fiscal year third quarter
ended November 26, 2023. Park’s net sales for the fiscal year ended
March 3, 2024 were $56,004,000 compared to $54,055,000 for the
fiscal year ended February 26, 2023. Net earnings for the 2024
fiscal year fourth quarter were $2,670,000 compared to $4,706,000
for the 2023 fiscal year fourth quarter and $1,203,000 for the 2024
fiscal year third quarter. Net earnings were $7,473,000 for the
2024 fiscal year compared to $10,731,000 for the 2023 fiscal
year.
Net earnings before special items for the 2024
fiscal year fourth quarter were $2,308,000 compared to $1,976,000
for the 2023 fiscal year fourth quarter and $1,203,000 for the 2024
fiscal year third quarter. Net earnings before special items for
the fiscal year ended March 3, 2024 were $7,664,000 compared to
$8,154,000 for the 2023 fiscal year.
Adjusted EBITDA for the 2024 fiscal year fourth
quarter was $3,201,000 compared to $2,625,000 for the 2023 fiscal
year fourth quarter and $1,808,000 for the 2024 fiscal year third
quarter. Adjusted EBITDA for the 2024 fiscal year was $10,989,000
compared to $11,459,000 for the 2023 fiscal year.
During the 2024 fiscal year, the Company
recorded $570,000 of pre-tax activist shareholder defense costs,
$65,000 of pre-tax losses on sales of investments to fund the $1.00
per share special dividend paid on April 6, 2023 to shareholders of
record on March 9, 2023 and a $109,000 pre-tax charge for the
modification of previously granted stock options in connection with
the special dividend in the 2024 fiscal year first quarter. The
Company recorded $70,000 of pre-tax costs to settle an insurance
claim as the result of the bankruptcy of an insurer and $38,000 of
pre-tax recruiting fees in the 2024 fiscal year fourth quarter and
fiscal year. The Company recognized a tax benefit of $657,000 in
the 2024 fiscal year fourth quarter and fiscal year primarily from
the reductions of uncertain tax positions related to expiring
statutes of limitations on tax positions taken in prior years
regarding the taxability of funds repatriated from the Company’s
subsidiary in Singapore, and the Company recorded $224,000 of
additional tax expense for tax deductions becoming unavailable
related to stock options expiring unexercised in the 2024 fiscal
year fourth quarter and fiscal year. The Company recognized a tax
benefit of $2,791,000 in the 2023 fiscal year fourth quarter and
fiscal year primarily from the reduction of uncertain tax positions
related to expiring statutes of limitations on tax positions taken
in prior years regarding the taxability of funds repatriated from
the Company’s subsidiary in Singapore, and the Company recorded
$61,000 and $214,000 of additional tax expense for tax deductions
becoming unavailable related to stock options expiring unexercised
in the 2023 fiscal year fourth quarter and fiscal year,
respectively.
Park reported basic and diluted earnings per
share of $0.13 for the 2024 fiscal year fourth quarter compared to
$0.23 for the 2023 fiscal year fourth quarter and $0.06 for the
2024 fiscal year third quarter. Basic and diluted earnings per
share before special items were $0.11 for the 2024 fiscal year
fourth quarter compared to $0.10 for the 2023 fiscal year fourth
quarter and $0.06 for the 2024 fiscal year third quarter.
Park reported basic and diluted earnings per
share of $0.37 for the 2024 fiscal year compared to $0.52 for the
2023 fiscal year. Basic and diluted earnings per share before
special items were $0.38 for the 2024 fiscal year compared to $0.40
for the 2023 fiscal year.
The Company will conduct a conference call to
discuss its financial results at 5:00 p.m. EDT today.
Forward-looking and other material information may be discussed in
this conference call. The conference call dial-in number is (877)
407-3982 in the United States and Canada, and (201) 493-6780 in
other countries. The required conference ID for attendance by phone
is 13746866.
For those unable to listen to the call live, a
conference call replay will be available from approximately 8:00
p.m. EDT today through 11:59 p.m. EDT on Thursday, June 6, 2024.
The conference call replay will be available at
https://edge.media-server.com/mmc/p/zyr8codr and on the Company’s
website at www.parkaerospace.com under “Investor Conference Calls”
on the “Shareholders” page. It can also be accessed by dialing
(844) 512-2921 in the United States and Canada, and (412) 317-6671
in other countries. The required passcode for accessing the replay
by phone is 13746866.
Any additional material financial or statistical
data disclosed in the conference call, including the investor
presentation, will also be available at the time of the conference
call on the Company's web site at
https://parkaerospace.com/shareholders/investor-conference-calls/.
Park believes that an evaluation of its ongoing
operations would be difficult if the disclosure of its operating
results were limited to accounting principles generally accepted in
the United States of America (“GAAP”) financial measures, which
include special items, such as activist shareholder defense costs,
losses on sales of investments, charges for modification of
previously granted stock options, reductions in uncertain tax
positions, tax deductions becoming unavailable, costs to settle an
insurance claim and recruiting fees. Accordingly, in addition to
disclosing its operating results determined in accordance with
GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA,
and operating results that exclude special items in order to assist
its shareholders and other readers in assessing the Company’s
operating performance, since the Company’s on-going, normal
business operations do not include such special items. The detailed
operating information presented below includes a reconciliation of
the non-GAAP operating results before special items to earnings
determined in accordance with GAAP and a reconciliation of GAAP
pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial
measures are provided to supplement the results provided in
accordance with GAAP.
Park Aerospace Corp. 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
(Aeroadhere®) and lightning strike protection
materials (Electroglide®). 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
proprietary composite SigmaStrut™ and AlphaStrut™ product lines)
are, among others, prototype and development aircraft, special
mission aircraft, spares for legacy military and civilian aircraft
and exotic spacecraft. Park’s objective is to do what others are
either unwilling or unable to do. When nobody else wants to do it
because it is too difficult, too small or too annoying, sign us
up.
Additional corporate information is available on
the Company’s website at www.parkaerospace.com
Performance table, including non-GAAP
information (in thousands, except per share amounts
–unaudited):
|
14 Weeks Ended |
|
|
13 Weeks Ended |
|
53 Weeks Ended |
|
|
52 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 3,2024 |
|
|
February 26,2023 |
|
|
November 26,2023 |
|
March 3,2024 |
|
|
February 26,2023 |
Sales |
$ |
16,333 |
|
|
|
$ |
13,530 |
|
|
|
$ |
11,639 |
|
|
$ |
56,004 |
|
|
|
$ |
54,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
before Special Items1 |
$ |
2,308 |
|
|
|
$ |
1,976 |
|
|
|
$ |
1,203 |
|
|
$ |
7,664 |
|
|
|
$ |
8,154 |
|
Special
Items: |
|
|
|
|
|
|
|
|
|
|
|
|
Activist Shareholder Defense Costs |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(570 |
) |
|
|
|
- |
|
Stock Option Modification |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(109 |
) |
|
|
|
- |
|
Loss on Sale of Marketable Securities |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(65 |
) |
|
|
|
- |
|
Insurer Bankruptcy Cost |
|
(70 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
(70 |
) |
|
|
|
- |
|
Recruiting Fees |
|
(38 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
(38 |
) |
|
|
|
- |
|
Income Tax Effect on Pretax Special Items |
|
37 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
228 |
|
|
|
|
- |
|
Reduction in Uncertain Tax Positions |
|
657 |
|
|
|
|
2,791 |
|
|
|
|
- |
|
|
|
657 |
|
|
|
|
2,791 |
|
Tax Impact of Cancelled Stock Options |
|
(224 |
) |
|
|
|
(61 |
) |
|
|
|
- |
|
|
|
(224 |
) |
|
|
|
(214 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings |
$ |
2,670 |
|
|
|
$ |
4,706 |
|
|
|
$ |
1,203 |
|
|
$ |
7,473 |
|
|
|
$ |
10,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings before Special Items1 |
$ |
0.11 |
|
|
|
$ |
0.10 |
|
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
|
$ |
0.40 |
|
Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
Activist Shareholder Defense Costs |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.03 |
) |
|
|
|
- |
|
Stock Option Modification |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
- |
|
Loss on Sale of Marketable Securities |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Insurer Bankruptcy Cost |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Recruiting Fees |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Income Tax Effect on Pretax Special Items |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
0.01 |
|
|
|
|
- |
|
Reduction in Uncertain Tax Positions |
|
0.03 |
|
|
|
|
0.13 |
|
|
|
|
- |
|
|
|
0.03 |
|
|
|
|
0.13 |
|
Tax Impact of Cancelled Stock Options |
|
(0.01 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share |
$ |
0.13 |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.06 |
|
|
$ |
0.37 |
|
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings before Special Items1 |
$ |
0.11 |
|
|
|
$ |
0.10 |
|
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
|
$ |
0.40 |
|
Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
Activist Shareholder Defense Costs |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.03 |
) |
|
|
|
- |
|
Stock Option Modification |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
- |
|
Loss on Sale of Marketable Securities |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Insurer Bankruptcy Cost |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Recruiting Fees |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Income Tax Effect on Pretax Special Items |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
0.01 |
|
|
|
|
- |
|
Reduction in Uncertain Tax Positions |
|
0.03 |
|
|
|
|
0.13 |
|
|
|
|
- |
|
|
|
0.03 |
|
|
|
|
0.13 |
|
Tax Impact of Cancelled Stock Options |
|
(0.01 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share |
$ |
0.13 |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.06 |
|
|
$ |
0.37 |
|
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
20,253 |
|
|
|
|
20,471 |
|
|
|
|
20,250 |
|
|
|
20,304 |
|
|
|
|
20,465 |
|
Diluted |
|
20,357 |
|
|
|
|
20,518 |
|
|
|
|
20,355 |
|
|
|
20,393 |
|
|
|
|
20,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Refer to
"Reconciliation of non-GAAP financial measures" below for
information regarding Special Items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative balance sheets (in
thousands):
|
March 3,2024 |
|
February 26,2023 |
Assets |
(unaudited) |
|
|
Current
Assets |
|
|
|
Cash and Marketable Securities |
$ |
77,211 |
|
|
$ |
105,440 |
|
Accounts Receivable, Net |
|
12,381 |
|
|
|
9,989 |
|
Inventories |
|
6,404 |
|
|
|
6,768 |
|
Prepaid Expenses and Other Current Assets |
|
2,849 |
|
|
|
2,844 |
|
Total Current Assets |
|
98,845 |
|
|
|
125,041 |
|
|
|
|
|
Fixed
Assets, Net |
|
23,499 |
|
|
|
24,251 |
|
Operating
Right-of-use Assets |
|
95 |
|
|
|
150 |
|
Other
Assets |
|
9,870 |
|
|
|
9,891 |
|
Total Assets |
$ |
132,309 |
|
|
$ |
159,333 |
|
|
|
|
|
Liabilities
and Shareholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Accounts Payable |
$ |
3,514 |
|
|
$ |
4,545 |
|
Accrued Liabilities |
|
1,986 |
|
|
|
1,346 |
|
Dividend Payable |
|
- |
|
|
|
20,471 |
|
Operating Lease Liability |
|
53 |
|
|
|
53 |
|
Income Taxes Payable |
|
4,105 |
|
|
|
2,171 |
|
Total Current Liabilities |
|
9,658 |
|
|
|
28,586 |
|
|
|
|
|
Long-term
Operating Lease Liability |
|
82 |
|
|
|
129 |
|
Non-current
Income Taxes Payable |
|
5,259 |
|
|
|
10,938 |
|
Deferred
Income Taxes |
|
3,222 |
|
|
|
1,995 |
|
Other
Liabilities |
|
1,174 |
|
|
|
1,751 |
|
Total Liabilities |
|
19,395 |
|
|
|
43,399 |
|
|
|
|
|
Shareholders’ Equity |
|
112,914 |
|
|
|
115,934 |
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
132,309 |
|
|
$ |
159,333 |
|
|
|
|
|
Additional
information |
|
|
|
Equity per
Share |
$ |
5.58 |
|
|
$ |
5.66 |
|
|
|
|
|
Comparative statements of operations (in
thousands – unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 Weeks Ended |
|
|
13 Weeks Ended |
|
53 Weeks Ended |
|
|
52 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 3,2024 |
|
|
February 26,2023 |
|
|
November 26,2023 |
|
March 3,2024 |
|
|
February 26,2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
16,333 |
|
|
|
$ |
13,530 |
|
|
|
$ |
11,639 |
|
|
$ |
56,004 |
|
|
|
$ |
54,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Sales |
|
11,880 |
|
|
|
|
9,679 |
|
|
|
|
8,470 |
|
|
|
39,470 |
|
|
|
|
37,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
4,453 |
|
|
|
|
3,851 |
|
|
|
|
3,169 |
|
|
|
16,534 |
|
|
|
|
16,473 |
|
%
of net sales |
|
27.3 |
% |
|
|
|
28.5 |
% |
|
|
|
27.2 |
% |
|
|
29.5 |
% |
|
|
|
30.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
General & Administrative Expenses |
|
1,882 |
|
|
|
|
1,631 |
|
|
|
|
1,804 |
|
|
|
8,154 |
|
|
|
|
6,519 |
|
%
of net sales |
|
11.5 |
% |
|
|
|
12.1 |
% |
|
|
|
15.5 |
% |
|
|
14.6 |
% |
|
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
from Operations |
|
2,571 |
|
|
|
|
2,220 |
|
|
|
|
1,365 |
|
|
|
8,380 |
|
|
|
|
9,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
Other Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income |
|
329 |
|
|
|
|
425 |
|
|
|
|
261 |
|
|
|
1,053 |
|
|
|
|
1,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
from Operations before Income Taxes |
|
2,900 |
|
|
|
|
2,645 |
|
|
|
|
1,626 |
|
|
|
9,433 |
|
|
|
|
11,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision (Benefit) |
|
230 |
|
|
|
|
(2,061 |
) |
|
|
|
423 |
|
|
|
1,960 |
|
|
|
|
301 |
|
Net
Earnings |
$ |
2,670 |
|
|
|
$ |
4,706 |
|
|
|
$ |
1,203 |
|
|
$ |
7,473 |
|
|
|
$ |
10,731 |
|
%
of net sales |
|
16.3 |
% |
|
|
|
34.8 |
% |
|
|
|
10.3 |
% |
|
|
13.3 |
% |
|
|
|
19.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP financial measure
(in thousands – unaudited):
|
14 Weeks Ended |
|
|
13 Weeks Ended |
|
53 Weeks Ended |
|
|
52 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 3,2024 |
|
|
February 26,2023 |
|
|
November 26,2023 |
|
March 3,2024 |
|
|
February 26,2023 |
GAAP Net Earnings |
$ |
2,670 |
|
|
|
$ |
4,706 |
|
|
|
$ |
1,203 |
|
|
$ |
7,473 |
|
|
|
$ |
10,731 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Provision |
|
230 |
|
|
|
|
(2,061 |
) |
|
|
|
423 |
|
|
|
1,960 |
|
|
|
|
301 |
|
Interest Income |
|
(329 |
) |
|
|
|
(425 |
) |
|
|
|
(261 |
) |
|
|
(1,118 |
) |
|
|
|
(1,078 |
) |
Depreciation |
|
418 |
|
|
|
|
310 |
|
|
|
|
340 |
|
|
|
1,402 |
|
|
|
|
1,136 |
|
Stock Option Expense |
|
104 |
|
|
|
|
95 |
|
|
|
|
103 |
|
|
|
420 |
|
|
|
|
369 |
|
Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
Activist Shareholder Defense Costs |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
570 |
|
|
|
|
- |
|
Stock Option Modification Charge (a) |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
109 |
|
|
|
|
- |
|
Pre-tax Losses on Sales of Investments (b) |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
65 |
|
|
|
|
- |
|
Insurer Bankruptcy Cost |
|
70 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
70 |
|
|
|
|
- |
|
Recruiting Fees |
|
38 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
38 |
|
|
|
|
- |
|
Adjusted
EBITDA |
$ |
3,201 |
|
|
|
$ |
2,625 |
|
|
|
$ |
1,808 |
|
|
$ |
10,989 |
|
|
|
$ |
11,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) pre-tax charge for
the modification of previously granted stock options in connection
with the special dividend in the 2024 fiscal year first
quarter |
(b) to fund the $1.00
per share special dividend paid on April 6, 2023 to shareholders of
record on March 9, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Donna D’Amico-Annitto |
486 North Oliver Road, Bldg. Z Newton, Kansas 67114(316)
283-6500 |
|
|
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