GlobeNewswire Inc | May 13, 2021 06:30AM EDT

May 13, 2021

NEWTON, Kan., May 13, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2021 fiscal year fourth quarter and year ended February 28, 2021. 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. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/bk4uvktb at 11:00 a.m. EDT today. The presentation materials will also be available at approximately 9:00 a.m. EDT 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 $14,441,000 for the 2021 fiscal year fourth quarter ended February 28, 2021 compared to $15,494,000 for the 2020 fiscal year fourth quarter ended March 1, 2020 and $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020. Parks net sales from continuing operations for the fiscal year ended February 28, 2021 were $46,276,000 compared to $60,014,000 for the fiscal year ended March 1, 2020. Net earnings from continuing operations for the 2021 fiscal year fourth quarter were $1,032,000 compared to $2,633,000 for the 2020 fiscal year fourth quarter and $1,037,000 for the 2021 fiscal year third quarter. Net earnings from continuing operations were $5,192,000 for the current fiscal year compared to $10,205,000 for last fiscal year.

Net earnings from continuing operations before special items for the 2021 fiscal year fourth quarter were $2,335,000 compared to $2,787,000 for the 2020 fiscal year fourth quarter and $1,037,000 for the 2021 fiscal year third quarter. Net earnings from continuing operations before special items were $6,495,000 for the current fiscal year compared to $10,503,000 for last fiscal year.

Adjusted EBITDA from continuing operations for the 2021 fiscal year fourth quarter was $3,257,000 compared to $3,612,000 for the 2020 fiscal year fourth quarter and $1,380,000 for the 2021 fiscal year third quarter. Adjusted EBITDA from continuing operations for the current fiscal year was $8,419,000 compared to $13,012,000 for last fiscal year.

In the 2021 fiscal year fourth quarter, the Company recorded a pretax restructuring charge of $1,570,000 primarily for the impairment of assets at its Park Aerospace Technologies Asia Pte. Ltd facility in Singapore. In the 2020 fiscal year, 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 and a pre-tax stock option modification charge of $208,000. The stock option modification charge related to a reduction in the exercise prices of previously granted employee stock options resulting from the special dividend paid in February 2020.

Park reported basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year fourth quarter compared to $0.13 for the 2020 fiscal year fourth quarter and $0.05 for the 2021 fiscal year third quarter. Park reported basic and diluted earnings per share from continuing operations before special items of $0.11 for the 2021 fiscal year fourth quarter compared to $0.14 for the 2020 fiscal year fourth quarter and $0.05 for the 2021 fiscal year third quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.25 for the 2021 fiscal year compared to $0.50 for the 2020 fiscal year. Basic and diluted earnings per share from continuing operations before special items were $0.32 for the 2021 fiscal year compared to $0.51 for the 2020 fiscal year.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (844) 466-4114 in the United States and Canada, and (765) 507-2654 in other countries. The required passcode for attendance by phone is 6667586.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Wednesday, May 19, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/bk4uvktb 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 6667586.

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 restructuring charge, a one-time tax charge, a stock modification charge and Adjusted EBITDA. 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 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 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. 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 52 Weeks Ended February 28, March 1, November 29, February 28, March 1, 2021 2020 2020 2021 2020Sales $ 14,441 $ 15,494 $ 10,372 $ 46,276 $ 60,014 Net Earningsbefore $ 2,335 $ 2,787 $ 1,037 $ 6,495 $ 10,503 Special Items^1SpecialItems, Net of Tax:Tax Impact ofCancelled - - - - (144 )Stock OptionsStock Option - (154 ) - - (154 )ModificationRestructuring (1,303 ) - - (1,303 ) - ChargesNet Earningsfrom $ 1,032 $ 2,633 $ 1,037 $ 5,192 $ 10,205 ContinuingOperations Loss fromDiscontinued $ - $ (249 ) $ (116 ) $ (328 ) $ (653 )Operations,Net of Tax Net Earnings $ 1,032 $ 2,384 $ 921 $ 4,864 $ 9,552 BasicEarnings per Share:BasicEarningsbefore $ 0.11 $ 0.14 $ 0.05 $ 0.32 $ 0.51 Special Items^1Special Items:Tax Impact ofCancelled - - - - - Stock OptionsStock Option - (0.01 ) - - (0.01 )ModificationRestructuring (0.06 ) - - (0.07 ) - ChargesBasicEarnings perShare from $ 0.05 $ 0.13 $ 0.05 $ 0.25 $ 0.50 ContinuingOperations Basic Lossper Sharefrom - (0.01 ) - (0.01 ) (0.03 )DiscontinuedOperations BasicEarnings per $ 0.05 $ 0.12 $ 0.05 $ 0.24 $ 0.47 Share DilutedEarningsbefore $ 0.11 $ 0.14 $ 0.05 $ 0.32 $ 0.51 Special Items^1Special Items:Tax Impact ofCancelled - - - - - Stock OptionsStock Option - (0.01 ) - - (0.01 )ModificationRestructuring (0.06 ) - - (0.07 ) - ChargesDilutedEarnings perShare from $ 0.05 $ 0.13 $ 0.05 $ 0.25 $ 0.50 ContinuingOperations Diluted Lossper Sharefrom - (0.01 ) - (0.01 ) (0.03 )DiscontinuedOperations DilutedEarnings per $ 0.05 $ 0.12 $ 0.05 $ 0.24 $ 0.47 Share WeightedAverage SharesOutstanding:Basic 20,382 20,519 20,381 20,387 20,507 Diluted 20,587 20,578 20,434 20,478 20,595 ^1 Refer to "Reconciliation of non-GAAP financial measures" below forinformation regarding Special Items.

Comparative balance sheets (in thousands)

February 28, March 1, 2020 2021Assets (unaudited) Current Assets Cash and Marketable Securities $ 116,542 $ 122,355Accounts Receivable, Net 7,633 10,925Inventories 4,794 6,379Prepaid Expenses and Other Current Assets 3,372 5,535Total Current Assets 132,341 145,194 Fixed Assets, Net 21,130 16,100Operating Right-of-use Assets 103 420Other Assets 9,938 10,072Total Assets $ 163,512 $ 171,786 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 3,300 $ 4,735Accrued Liabilities 1,708 1,709Operating Lease Liability 33 152Income Taxes Payable 2,952 2,111Total Current Liabilities 7,993 8,707 Long-term Operating Lease Liability 86 268Non-current Income Taxes Payable 14,303 15,986Deferred Income Taxes 778 834Other Liabilities 4,411 4,316Total Liabilities 27,571 30,111 Shareholders? Equity 135,941 141,675 Total Liabilities and Shareholders' $ 163,512 $ 171,786Equity Additional information Equity per Share $ 6.67 $ 6.90

Comparative statements of operations (in thousands unaudited):

13 Weeks Ended 52 Weeks Ended February 28, March 1, November 29, February 28, March 1, 2021 2020 2020 2021 2020 Net Sales $ 14,441 $ 15,494 $ 10,372 $ 46,276 $ 60,014 Cost of Sales 10,115 10,460 7,819 33,085 41,341 Gross Profit 4,326 5,034 2,553 13,191 18,673 % of 30.0 % 32.5 % 24.6 % 28.5 % 31.1 %net sales Selling, General& Administrative 1,395 2,147 1,536 6,113 7,932 Expenses% of 9.7 % 13.9 % 14.8 % 13.2 % 13.2 %net sales Restructuring 1,570 - - 1,570 - Charges Earnings fromContinuing 1,361 2,887 1,017 5,508 10,741 Operations Interest and Other Income:Interest 207 717 389 1,777 3,330 Income Earnings fromContinuingOperations 1,568 3,604 1,406 7,285 14,071 before IncomeTaxes Income Tax 536 971 369 2,093 3,866 Provision Net Earningsfrom Continuing 1,032 2,633 1,037 5,192 10,205 Operations% of 7.1 % 17.0 % 10.0 % 11.2 % 17.0 %net sales Loss fromDiscontinued - (249 ) (116 ) (328 ) (653 )Operations, Netof Tax Net Earnings $ 1,032 $ 2,384 $ 921 $ 4,864 $ 9,552 % of 7.1 % 15.4 % 8.9 % 10.5 % 15.9 %net sales



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

13 Weeks Ended February 28, 2021 13 Weeks Ended March 1, 2020 13 Weeks Ended November 29, 2020 Specials Before Specials Before Specials Before GAAP Items Special GAAP Items Special GAAP Items Special Items Items Items Selling, General& Administrative $ 1,395 $ - $ 1,395 $ 2,147 $ (208 ) $ 1,939 $ 1,536 $ - $ 1,536 Expenses% of 9.7 % 9.7 % 13.9 % 12.5 % 14.8 % 14.8 %net sales Restructuring 1,570 (1,570 ) - - - - - - - Charges% of 10.9 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %net sales Earnings fromContinuing 1,361 1,570 2,931 2,887 208 3,095 1,017 - 1,017 Operations% of 9.4 % 20.3 % 18.6 % 20.0 % 9.8 % 9.8 %net sales Interest Income 207 - 207 717 - 717 389 - 389 % of 1.4 % 1.4 % 4.6 % 4.6 % 3.8 % 3.8 %net sales Earnings fromContinuing 1,568 1,570 3,138 3,604 208 3,812 1,406 - 1,406 Operations beforeIncome Taxes% of 10.9 % 21.7 % 23.3 % 24.6 % 13.6 % 13.6 %net sales Income Tax 536 267 803 971 54 1,025 369 - 369 ProvisionEffective 34.2 % 25.6 % 26.9 % 26.9 % 26.2 % 26.2 %Tax Rate Net Earnings fromContinuing 1,032 1,303 2,335 2,633 154 2,787 1,037 - 1,037 Operations% of 7.1 % 16.2 % 17.0 % 18.0 % 10.0 % 10.0 %net sales Loss fromDiscontinued - - - (249 ) - (249 ) (116 ) - (116 )Operations% of 0.0 % 0.0 % -1.6 % -1.6 % -1.1 % -1.1 %net sales Net Earnings 1,032 1,303 2,335 2,384 154 2,538 921 - 921 % of 7.1 % 16.2 % 15.4 % 16.4 % 8.9 % 8.9 %net sales Net Earning 2,335 2,538 921 Addback DiscontinuedOperations and non-cash items:Loss from Discontinued Operations - 249 116 Income Tax Provision 803 1,025 369 Interest Income (207 ) (717 ) (389 )Depreciation 277 402 314 Stock Option Expense 49 115 49 Adjusted EBITDA from 3,257 3,612 1,380 Continuing Operations



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

52 Weeks Ended February 28, 2021 52 Weeks Ended March 1, 2020 Specials Before Specials Before GAAP Items Special GAAP Items Special Items ItemsSelling,General & $ 6,113 $ - $ 6,113 $ 7,932 $ (208 ) $ 7,724 AdministrativeExpenses% of 13.2 % 13.2 % 13.2 % 12.9 %net sales Restructuring 1,570 (1,570 ) - - - - Charge% of 3.4 % 0.0 % 0.0 % 0.0 %net sales Earnings fromContinuing 5,508 1,570 7,078 10,741 208 10,949 Operations% of 11.9 % 15.3 % 17.9 % 18.2 %net sales Interest Income 1,777 - 1,777 3,330 - 3,330 % of 3.8 % 3.8 % 5.5 % 5.5 %net sales Earnings fromContinuingOperations 7,285 1,570 8,855 14,071 208 14,279 before IncomeTaxes% of 15.7 % 19.1 % 23.4 % 23.8 %net sales Income Tax 2,093 267 2,360 3,866 (90 ) 3,776 ProvisionEffective 28.7 % 26.7 % 27.5 % 26.4 %Tax Rate Net Earningsfrom Continuing 5,192 1,303 6,495 10,205 298 10,503 Operations% of 11.2 % 14.0 % 17.0 % 17.5 %net sales Loss fromDiscontinued (328 ) - (328 ) (653 ) - (653 )Operations% of -0.7 % -0.7 % -1.1 % -1.1 %net sales Net Earnings 4,864 1,303 6,167 9,552 298 9,850 % of 10.5 % 13.3 % 15.9 % 16.4 %net sales Net Earning 6,167 9,850 Addback DiscontinuedOperations and non-cash items:Loss from 328 653 Discontinued OperationsIncome Tax 2,360 3,776 ProvisionInterest Income (1,777 ) (3,330 )Depreciation 1,150 1,544 Stock Option 191 519 ExpenseAdjusted EBITDA from 8,419 13,012 Continuing Operations

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