GlobeNewswire Inc | Jan 7, 2021 06:30AM EST

January 07, 2021

NEWTON, Kansas, Jan. 07, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2021 fiscal year third quarter ended November 29, 2020. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, current costs relating to the Electronics Business are reported as discontinued operations. Continuing operations discussed below refer to Parks Aerospace Business unless otherwise indicated.

The Company will conduct a conference call to discuss its financial results and other matters at 11:00 a.m. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/fpex6v6n at 11:00 a.m. EST today. The presentation materials will also be available at approximately 9:00 a.m. EST today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Companys website at www.parkaerospace.com under Investor Conference Calls on the Shareholders page.

Continuing Operations:

Park reported net sales of $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020 compared to $15,847,000 for the 2020 fiscal year third quarter ended December 1, 2019 and $9,250,000 for the 2021 fiscal year second quarter ended August 30, 2020. Parks net sales from continuing operations for the nine months ended November 29, 2020 were $31,835,000 compared to $44,520,000 for the nine months ended December 1, 2019. Net earnings from continuing operations for the 2021 fiscal year third quarter were $1,037,000 compared to $2,806,000 for the 2020 fiscal year third quarter and $1,151,000 for the 2021 fiscal year second quarter. Net earnings from continuing operations were $4,160,000 for the current years first nine months compared to $7,572,000 for last years first nine months.

EBITDA from continuing operations for the 2021 fiscal year third quarter was $1,380,000 compared to $3,622,000 for the 2020 fiscal year third quarter and $1,418,000 for the 2021 fiscal year second quarter.

For the nine months ended November 29, 2020, Park reported net earnings from continuing operations before special items of $4,160,000 compared to $7,716,000 for last fiscal years first nine months. In the 2020 fiscal years first nine months, the Company recorded a one-time tax charge of $144,000 for the write down of deferred tax assets for stock option expirations pertaining to employees who transferred to AGC Inc. in connection with the sale of the Electronics Business. EBITDA from continuing operations for the current years first nine months was $5,162,000 compared to $9,400,000 for last years first nine months.

Park reported basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year third quarter compared to $0.14 for the 2020 fiscal year third quarter and $0.06 for the 2021 fiscal year second quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.20 for the 2021 fiscal years first nine months compared to $0.37 for the 2020 fiscal years first nine months. Basic and diluted earnings per share from continuing operations before special items were $0.20 for the 2021 fiscal years first nine months compared to basic earnings per share from continuing operations before special items of $0.38 and diluted earnings per share from continuing operations before special items of $0.37 for the 2020 fiscal years first nine months.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EST today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries. The required passcode for attendance by phone is 4883755.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EST today through 11:59 p.m. EST on Wednesday, January 13, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/fpex6v6n and on the Companys website at www.parkaerospace.com under Investor Conference Calls on the Shareholders page. It can also be accessed by dialing (855) 859-2056 in the United States and Canada, and (404) 537-3406 in other countries. The required passcode for accessing the replay by phone is 4883755.

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 a one-time tax charge and EBITDA. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including EBITDA, and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Companys operating performance, since the Companys 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 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. These materials include lightning strike protection materials. Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Parks 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 Parks advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Parks composite parts and structures (which include Parks 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. Parks 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 Companys web site at www.parkaerospace.com

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

13 Weeks Ended 39 Weeks Ended November December 1, August 30, November December 1, 29, 2019 2020 29, 2019 2020 2020Sales $ 10,372 $ 15,847 $ 9,250 $ 31,835 $ 44,520 Net Earningsbefore $ 1,037 $ 2,806 $ 1,151 $ 4,160 $ 7,716 SpecialItems^1SpecialItems, Net of Tax:Tax Impactof Cancelled - - - - (144 ) StockOptionsNet Earningsfrom $ 1,037 $ 2,806 $ 1,151 $ 4,160 $ 7,572 ContinuingOperations Loss fromDiscontinued $ (116 ) $ (360 ) $ (197 ) $ (328 ) $ (404 ) Operations,Net of Tax Net Earnings $ 921 $ 2,446 $ 954 $ 3,832 $ 7,168 BasicEarnings per Share:BasicEarningsbefore $ 0.05 $ 0.14 $ 0.06 $ 0.20 $ 0.38 SpecialItems^1Special Items:Tax Impactof Cancelled - - - - (0.01 ) StockOptionsBasicEarnings perShare from $ 0.05 $ 0.14 $ 0.06 $ 0.20 $ 0.37 ContinuingOperations Basic Lossper Sharefrom - (0.02 ) (0.01 ) (0.01 ) (0.02 ) DiscontinuedOperations BasicEarnings per $ 0.05 $ 0.12 $ 0.05 $ 0.19 $ 0.35 Share DilutedEarningsbefore $ 0.05 $ 0.14 $ 0.06 $ 0.20 $ 0.37 SpecialItems^1Special Items:Tax Impactof Cancelled - - - - - StockOptionsDilutedEarnings perShare from $ 0.05 $ 0.14 $ 0.06 $ 0.20 $ 0.37 ContinuingOperations Diluted Lossper Sharefrom - (0.02 ) (0.01 ) (0.01 ) (0.02 ) DiscontinuedOperations DilutedEarnings per $ 0.05 $ 0.12 $ 0.05 $ 0.19 $ 0.35 Share WeightedAverage SharesOutstanding:Basic 20,381 20,518 20,381 20,388 20,503 Diluted 20,434 20,617 20,433 20,442 20,601 ^1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.



Comparative balance sheets (in thousands)

November 29, March 1, 2020 2020Assets (unaudited) Current Assets Cash and Marketable Securities $ 116,966 $ 122,355 Accounts Receivable, Net 8,372 10,925 Inventories 4,712 6,379 Prepaid Expenses and Other Current Assets 3,842 5,535 Total Current Assets 133,892 145,194 Fixed Assets, Net 20,481 16,100 Operating Right-of-use Assets 304 420 Other Assets 9,959 10,072 Total Assets $ 164,636 $ 171,786 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 3,338 $ 4,735 Accrued Liabilities 1,510 1,709 Operating Lease Liability 113 152 Income Taxes Payable 2,242 2,111 Total Current Liabilities 7,203 8,707 Long-term Operating Lease Liability 206 268 Non-current Income Taxes Payable 14,303 15,986 Deferred Income Taxes 953 834 Other Liabilities 4,476 4,316 Total Liabilities 27,141 30,111 Shareholders? Equity 137,495 141,675 Total Liabilities and Shareholders' $ 164,636 $ 171,786 Equity Additional information Equity per Share $ 6.75 $ 6.90



Comparative statements of operations (in thousands unaudited):

13 Weeks Ended 39 Weeks Ended November December 1, August 30, November December 1, 29, 2019 2020 29, 2019 2020 2020 Net Sales $ 10,372 $ 15,847 $ 9,250 $ 31,835 $ 44,520 Cost of Sales 7,819 10,825 6,612 22,970 30,881 Gross Profit 2,553 5,022 2,638 8,865 13,639 % of net sales 24.6 % 31.7 % 28.5 % 27.8 % 30.6 % Selling, General & 1,536 1,949 1,552 4,718 5,785 AdministrativeExpenses% of net sales 14.8 % 12.3 % 16.8 % 14.8 % 13.0 % Earnings from Continuing 1,017 3,073 1,086 4,147 7,854 Operations Interest and Other Income:Interest Income 389 802 525 1,570 2,613 % of net sales 3.8 % 5.1 % 5.7 % 4.9 % 5.9 % Earnings from ContinuingOperationsbefore Income 1,406 3,875 1,611 5,717 10,467 Taxes Income Tax Provision 369 1,069 460 1,557 2,895 Net Earnings from 1,037 2,806 1,151 4,160 7,572 Continuing Operations% of net sales 10.0 % 17.7 % 12.4 % 13.1 % 17.0 % Loss fromDiscontinuedOperations, (116 ) (360 ) (197 ) (328 ) (404 ) Net of Tax Net Earnings $ 921 $ 2,446 $ 954 $ 3,832 $ 7,168 % of net sales 8.9 % 15.4 % 10.3 % 12.0 % 16.1 %



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

13 Weeks Ended 13 Weeks Ended 13 Weeks Ended November 29, 2020 December 1, 2019 August 30, 2020 Specials Before Specials Before Specials Before GAAP Items Special GAAP Items Special GAAP Items Special Items Items Items Earningsfrom 1,017 - 1,017 3,073 - 3,073 1,086 - 1,086 ContinuingOperations% of net 9.8 % 9.8 % 19.4 % 19.4 % 11.7 % 11.7 %sales Interest 389 - 389 802 - 802 525 - 525 Income% of net 3.8 % 3.8 % 5.1 % 5.1 % 5.7 % 5.7 %sales EarningsfromContinuing 1,406 - 1,406 3,875 - 3,875 1,611 - 1,611 OperationsbeforeIncome Taxes% of net 13.6 % 13.6 % 24.5 % 24.5 % 17.4 % 17.4 %sales Income Tax 369 - 369 1,069 - 1,069 460 - 460 ProvisionEffective 26.2 % 26.2 % 27.6 % 27.6 % 28.6 % 28.6 %Tax Rate Net Earningsfrom 1,037 - 1,037 2,806 - 2,806 1,151 - 1,151 ContinuingOperations% of net 10.0 % 10.0 % 17.7 % 17.7 % 12.4 % 12.4 %sales Loss fromDiscontinued (116 ) - (116 ) (360 ) - (360 ) (197 ) - (197 )Operations% of net -1.1 % -1.1 % -2.3 % -2.3 % -2.1 % -2.1 %sales Net Earnings 921 - 921 2,446 - 2,446 954 - 954 % of net 8.9 % 8.9 % 15.4 % 15.4 % 10.3 % 10.3 %sales Earningsfrom 1,017 3,073 1,086 ContinuingOperationsAddbacknon-cash expenses:Depreciation 314 410 282 Stock Option 49 139 50 ExpenseEBITDA 1,380 3,622 1,418



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

39 Weeks Ended 39 Weeks Ended November 29, 2020 December 1, 2019 Specials Before Specials Before GAAP Items Special GAAP Items Special Items ItemsEarningsfrom 4,147 - 4,147 7,854 - 7,854 ContinuingOperations% of net 13.0 % 13.0 % 17.6 % 17.6 %sales Interest 1,570 - 1,570 2,613 - 2,613 Income% of net 4.9 % 4.9 % 5.9 % 5.9 %sales EarningsfromContinuing 5,717 - 5,717 10,467 - 10,467 OperationsbeforeIncome Taxes% of net 18.0 % 18.0 % 23.5 % 23.5 %sales Income Tax 1,557 - 1,557 2,895 (144 ) 2,751 ProvisionEffective 27.2 % 27.2 % 27.7 % 26.3 %Tax Rate Net Earningsfrom 4,160 - 4,160 7,572 144 7,716 ContinuingOperations% of net 13.1 % 13.1 % 17.0 % 17.3 %sales Loss fromDiscontinued (328 ) - (328 ) (404 ) - (404 )Operations% of net -1.0 % -1.0 % -0.9 % -0.9 %sales Net Earnings 3,832 - 3,832 7,168 144 7,312 % of net 12.0 % 12.0 % 16.1 % 16.4 %sales Earningsfrom 4,147 7,854 OperationsAddbacknon-cash expenses:Depreciation 873 1,142 Stock Option 142 404 ExpenseEBITDA 5,162 9,400



Contact: Donna D?Amico-Annitto 486 North Oliver Road, Bldg. Z Newton, Kansas 67114 (316) 283-6500