GlobeNewswire Inc | Oct 7, 2021 06:30AM EDT

October 07, 2021

NEWTON, Kan., Oct. 07, 2021 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year second quarter ended August 29, 2021. As previously reported, Park completed the sale of its Electronics Business to AGC Inc. on December 4, 2018. Therefore, 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/ahtr5shb 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 $13,618,000 for the 2022 fiscal year second quarter ended August 29, 2021 compared to $9,250,000 for the 2021 fiscal year second quarter ended August 30, 2020 and $13,594,000 for the 2022 fiscal year first quarter ended May 30, 2021. Parks net sales from continuing operations for the six months ended August 29, 2021 were $27,212,000 compared to $21,463,000 for the six months ended August 30, 2020. Net earnings from continuing operations for the 2022 fiscal year second quarter were $2,022,000 compared to $1,151,000 for the 2021 fiscal year second quarter and $2,745,000 for the 2022 fiscal year first quarter. Net earnings from continuing operations were $4,767,000 for the current years first six months compared to $3,123,000 for last years first six months.

Net earnings from continuing operations before special items for the 2022 fiscal year second quarter were $2,192,000 compared to $1,151,000 for the 2021 fiscal year second quarter and $2,759,000 for the 2022 fiscal year first quarter. Net earnings from continuing operations before special items for the six months ended August 29, 2021 were $4,951,000 compared to $3,123,000 for last fiscal years first six months.

Adjusted EBITDA from continuing operations for the 2022 fiscal year second quarter was $3,232,000 compared to $1,418,000 for the 2021 fiscal year second quarter and $4,104,000 for the 2022 fiscal year first quarter. Adjusted EBITDA from continuing operations for the current years first six months was $7,336,000 compared to $3,782,000 for last years first six months.

The Company recorded pretax restructuring charges of $170,000 in the 2022 fiscal year second quarter and $14,000 in the 2022 fiscal year first quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd idle facility in Singapore.

Park reported basic and diluted earnings per share from continuing operations of $0.10 for the 2022 fiscal year second quarter compared to $0.06 for the 2021 fiscal year second quarter and $0.13 for the 2022 fiscal year first quarter. Basic and diluted earnings per share from continuing operations before special items were $0.11 for the 2022 fiscal second quarter compared to $0.06 for the 2021 fiscal years second quarter and $0.14 and $0.13, respectively, for basic and diluted earnings per share from continuing operations before special items for the 2022 fiscal year first quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.23 for the 2022 fiscal years first six months compared to $0.15 for the 2021 fiscal years first six months. Basic and diluted earnings per share from continuing operations before special items were $0.24 for the 2022 fiscal years first six months compared to $0.15 for the 2021 fiscal years first six months.

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 5957093.

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, October 13, 2021. The conference call replay will be available at https://edge.media-server.com/mmc/p/ahtr5shb 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 5957093.

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 restructuring charges. 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. Parks advanced composite materials include film adhesives (undergoing development) and lightning strike 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 26 Weeks Ended August 29, August 30, May 30, August 29, August 30, 2021 2020 2021 2021 2020Sales $ 13,618 $ 9,250 $ 13,594 $ 27,212 $ 21,463 Net Earningsbefore $ 2,192 $ 1,151 $ 2,759 $ 4,951 $ 3,123 Special Items^1SpecialItems, Net of Tax:Restructuring (170 ) - (14 ) (184 ) - ChargesNet Earningsfrom $ 2,022 $ 1,151 $ 2,745 $ 4,767 $ 3,123 ContinuingOperations Loss fromDiscontinued $ - $ (197 ) $ - $ - $ (212 )Operations,Net of Tax Net Earnings $ 2,022 $ 954 $ 2,745 $ 4,767 $ 2,911 BasicEarnings per Share:BasicEarningsbefore $ 0.11 $ 0.06 $ 0.14 $ 0.24 $ 0.15 Special Items^1Special Items:Restructuring (0.01 ) - (0.01 ) (0.01 ) - ChargesBasicEarnings perShare from $ 0.10 $ 0.06 $ 0.13 $ 0.23 $ 0.15 ContinuingOperations Basic Lossper Sharefrom - (0.01 ) - - (0.01 )DiscontinuedOperations BasicEarnings per $ 0.10 $ 0.05 $ 0.13 $ 0.23 $ 0.14 Share DilutedEarningsbefore $ 0.11 $ 0.06 $ 0.13 $ 0.24 $ 0.15 Special Items^1Special Items:Restructuring (0.01 ) - - (0.01 ) - ChargesDilutedEarnings perShare from $ 0.10 $ 0.06 $ 0.13 $ 0.23 $ 0.15 ContinuingOperations Diluted Lossper Sharefrom - (0.01 ) - - (0.01 )DiscontinuedOperations DilutedEarnings per $ 0.10 $ 0.05 $ 0.13 $ 0.23 $ 0.14 Share WeightedAverage SharesOutstanding:Basic 20,397 20,381 20,383 20,390 20,392 Diluted 20,485 20,433 20,710 20,597 20,447

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

Comparative balance sheets (in thousands)

August 29, February 28, 2021 2021Assets (unaudited) Current Assets Cash and Marketable Securities $ 112,842 $ 116,542Accounts Receivable, Net 8,481 7,633Inventories 4,821 4,794Prepaid Expenses and Other Current Assets 3,122 3,372Total Current Assets 129,266 132,341 Fixed Assets, Net 23,212 21,130Operating Right-of-use Assets 76 103Other Assets 9,942 9,938Total Assets $ 162,496 $ 163,512 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 2,515 $ 3,300Accrued Liabilities 1,395 1,708Operating Lease Liability 8 33Income Taxes Payable 3,002 2,952Total Current Liabilities 6,920 7,993 Long-term Operating Lease Liability 89 86Non-current Income Taxes Payable 12,623 14,303Deferred Income Taxes 1,168 778Other Liabilities 4,478 4,411Total Liabilities 25,278 27,571 Shareholders? Equity 137,218 135,941 Total Liabilities and Shareholders' Equity $ 162,496 $ 163,512 Additional information Equity per Share $ 6.72 $ 6.67

Comparative statements of operations (in thousands unaudited):

13 Weeks Ended 26 Weeks Ended August 29, August 30, May 30, August 29, August 30, 2021 2020 2021 2021 2020 Net Sales $ $ $ $ $ 13,618 9,250 13,594 27,212 21,463 Cost of Sales 9,207 6,612 8,122 17,329 15,151 Gross Profit 4,411 2,638 5,472 9,883 6,312 % of net sales 32.4 % 28.5 % 40.3 % 36.3 % 29.4 % Selling,General & 1,488 1,552 1,648 3,136 3,182 AdministrativeExpenses% of net sales 10.9 % 16.8 % 12.1 % 11.5 % 14.8 % Restructuring 170 - 14 184 - Charges% of net sales 1.2 % 0.0 % 0.1 % 0.7 % 0.0 % Earnings fromContinuing 2,753 1,086 3,810 6,563 3,130 Operations Interest and Other Income:Interest 89 525 117 206 1,181 Income Earnings fromContinuingOperations 2,842 1,611 3,927 6,769 4,311 before IncomeTaxes Income Tax 820 460 1,182 2,002 1,188 Provision Net Earningsfrom 2,022 1,151 2,745 4,767 3,123 ContinuingOperations% of net sales 14.8 % 12.4 % 20.2 % 17.5 % 14.6 % Loss fromDiscontinued - (197 ) - - (212 )Operations,Net of Tax Net Earnings $ $ $ $ $ 2,022 954 2,745 4,767 2,911% of net sales 14.8 % 10.3 % 20.2 % 17.5 % 13.6 %

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

13 Weeks Ended 13 Weeks Ended 13 Weeks Ended August 29, 2021 August 30, 2020 May 30, 2021 Specials Before Specials Before Specials Before GAAP Items Special GAAP Items Special GAAP Items Special Items Items Items Restructuring 170 (170 ) - - - - 14 (14 ) - Charges% of net 1.2 % 0.0 % 0.0 % 0.0 % 0.1 % 0.0 %sales Earnings fromContinuing 2,753 170 2,923 1,086 - 1,086 3,810 14 3,824 Operations% of net 20.2 % 21.5 % 11.7 % 11.7 % 28.0 % 28.1 %sales Interest 89 - 89 525 - 525 117 - 117 Income% of net 0.7 % 0.7 % 5.7 % 5.7 % 0.9 % 0.9 %sales Earnings fromContinuingOperations 2,842 170 3,012 1,611 - 1,611 3,927 14 3,941 beforeIncome Taxes% of net 20.9 % 22.1 % 17.4 % 17.4 % 28.9 % 29.0 %sales Income Tax 820 - 820 460 - 460 1,182 - 1,182 ProvisionEffective Tax 28.9 % 27.2 % 28.6 % 28.6 % 30.1 % 30.0 %Rate Net Earningsfrom 2,022 170 2,192 1,151 - 1,151 2,745 14 2,759 ContinuingOperations% of net 14.8 % 16.1 % 12.4 % 12.4 % 20.2 % 20.3 %sales Loss fromDiscontinued - - (197 ) (197 ) - - - Operations% of net 0.0 % 0.0 % -2.1% -2.1% 0.0 % 0.0 %sales Net Earnings 2,022 170 2,192 954 - 954 2,745 14 2,759 % of net 14.8 % 16.1 % 10.3 % 10.3 % 20.2 % 20.3 %sales Net Earnings 2,192 954 2,759 AddbackDiscontinuedOperations and non-cashexpenses:Loss fromDiscontinued - 197 - OperationsIncome Tax 820 460 1,182 ProvisionInterest (89 ) (525 ) (117 )IncomeDepreciation 235 282 216 Stock Option 74 50 64 ExpenseAdjusted 3,232 1,418 4,104 EBITDA

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

26 Weeks Ended 26 Weeks Ended August 29, 2021 August 30, 2020 Specials Before Specials Before GAAP Items Special GAAP Items Special Items ItemsRestructuring 184 (184 ) - - - - Charge% of net 0.7 % 0.0 % 0.0 % 0.0 %sales Earnings fromContinuing 6,563 184 6,747 3,130 - 3,130 Operations% of net 24.1 % 24.8 % 14.6 % 14.6 %sales Interest 206 - 206 1,181 - 1,181 Income% of net 0.8 % 0.8 % 5.5 % 5.5 %sales Earnings fromContinuingOperations 6,769 184 6,953 4,311 - 4,311 before IncomeTaxes% of net 24.9 % 25.6 % 20.1 % 20.1 %sales Income Tax 2,002 - 2,002 1,188 - 1,188 ProvisionEffective Tax 29.6 % 28.8 % 27.6 % 27.6 %Rate Net Earningsfrom 4,767 184 4,951 3,123 - 3,123 ContinuingOperations% of net 17.5 % 18.2 % 14.6 % 14.6 %sales Loss fromDiscontinued - - - (212 ) - (212 )Operations% of net 0.0 % 0.0 % -1.0% -1.0% sales Net Earnings 4,767 184 4,951 2,911 - 2,911 % of net 17.5 % 18.2 % 13.6 % 13.6 %sales Net Earnings 4,951 2,911 AddbackDiscontinuedOperations and non-cashexpenses:Loss fromDiscontinued - 212 OperationsIncome Tax 2,002 1,188 ProvisionInterest (206 ) (1,181 )IncomeDepreciation 451 559 Stock Option 138 93 ExpenseAdjusted 7,336 3,782 EBITDA

Contact:Donna DAmico-Annitto486 North Oliver Road, Bldg. ZNewton, Kansas 67114(316) 283-6500