GlobeNewswire Inc | Jan 6, 2022 06:30AM EST

January 06, 2022

NEWTON, Kan., Jan. 06, 2022 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2022 fiscal year third quarter ended November 28, 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. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/nkcvaqeo 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 $13,864,000 for the 2022 fiscal year third quarter ended November 28, 2021 compared to $10,372,000 for the 2021 fiscal year third quarter ended November 29, 2020 and $13,618,000 for the 2022 fiscal year second quarter ended August 29, 2021. Parks net sales from continuing operations for the nine months ended November 28, 2021 were $41,076,000 compared to $31,835,000 for the nine months ended November 29, 2020. Net earnings from continuing operations for the 2022 fiscal year third quarter were $1,741,000 compared to $1,037,000 for the 2021 fiscal year third quarter and $2,022,000 for the 2022 fiscal year second quarter. Net earnings from continuing operations were $6,508,000 for the current years first nine months compared to $4,160,000 for last years first nine months.

Net earnings from continuing operations before special items for the 2022 fiscal year third quarter were $1,754,000 compared to $1,037,000 for the 2021 fiscal year third quarter and $2,192,000 for the 2022 fiscal year second quarter. Net earnings from continuing operations before special items for the nine months ended November 28, 2021 were $6,705,000 compared to $4,160,000 for last fiscal years first nine months.

Adjusted EBITDA from continuing operations for the 2022 fiscal year third quarter was $2,670,000 compared to $1,380,000 for the 2021 fiscal year third quarter and $3,232,000 for the 2022 fiscal year second quarter. Adjusted EBITDA from continuing operations for the current years first nine months was $10,006,000 compared to $5,162,000 for last years first nine months.

The Company recorded pretax restructuring charges of $13,000 in the 2022 fiscal year third quarter and $170,000 in the 2022 fiscal year second quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd. idle facility in Singapore.

Park reported basic earnings per share from continuing operations of $0.09 and diluted earnings per share from continuing operations of $0.08 for the 2022 fiscal year third quarter compared to basic and diluted earnings per share from continuing operations of $0.05 for the 2021 fiscal year third quarter and $0.10 for the 2022 fiscal year second quarter. Basic and diluted earnings per share from continuing operations before special items were $0.09 for the 2022 fiscal third quarter compared to $0.05 for the 2021 fiscal year third quarter and $0.11 for the 2022 fiscal year second quarter.

Park reported basic and diluted earnings per share from continuing operations of $0.32 for the 2022 fiscal years first nine months compared to $0.20 for the 2021 fiscal years first nine months. Basic and diluted earnings per share from continuing operations before special items were $0.33 for the 2022 fiscal years first nine months compared to $0.20 for the 2021 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 9884832.

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 12, 2022. The conference call replay will be available at https://edge.media-server.com/mmc/p/nkcvaqeo 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 9884832.

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 ongoing, 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 39 Weeks Ended November November August November November 28, 2021 29, 2020 29, 2021 28, 2021 29, 2020Sales $ 13,864 $ 10,372 $ 13,618 $ 41,076 $ 31,835 Net Earningsbefore Special $ 1,754 $ 1,037 $ 2,192 $ 6,705 $ 4,160 Items^1Special Items, Net of Tax:Restructuring (13 ) - (170 ) (197 ) - ChargesNet Earningsfrom $ 1,741 $ 1,037 $ 2,022 $ 6,508 $ 4,160 ContinuingOperations Loss fromDiscontinued $ - $ (116 ) $ - $ - $ (328 )Operations,Net of Tax Net Earnings $ 1,741 $ 921 $ 2,022 $ 6,508 $ 3,832 Basic Earnings per Share:Basic Earningsbefore Special $ 0.09 $ 0.05 $ 0.11 $ 0.33 $ 0.20 Items^1Special Items: Restructuring - - (0.01 ) (0.01 ) - ChargesBasic Earningsper Share from $ 0.09 $ 0.05 $ 0.10 $ 0.32 $ 0.20 ContinuingOperations Basic Loss perShare from - - - - (0.01 )DiscontinuedOperations Basic Earnings $ 0.09 $ 0.05 $ 0.10 $ 0.32 $ 0.19 per Share DilutedEarnings $ 0.09 $ 0.05 $ 0.11 $ 0.33 $ 0.20 before SpecialItems^1Special Items: Restructuring (0.01 ) - (0.01 ) (0.01 ) - ChargesDilutedEarnings perShare from $ 0.08 $ 0.05 $ 0.10 $ 0.32 $ 0.20 ContinuingOperations Diluted Lossper Share from - - - - (0.01 )DiscontinuedOperations DilutedEarnings per $ 0.08 $ 0.05 $ 0.10 $ 0.32 $ 0.19 Share WeightedAverage Shares Outstanding:Basic 20,450 20,381 20,397 20,410 20,388 Diluted 20,503 20,434 20,485 20,566 20,442 ^1 Refer to "Reconciliation of non-GAAP financial measures" below forinformation regarding Special Items.

Comparative balance sheets (in thousands)

November February 28, 2021 28, 2021Assets (unaudited) Current Assets Cash and Marketable Securities $ 109,628 $ 116,542Accounts Receivable, Net 9,693 7,633Inventories 5,175 4,794Prepaid Expenses and Other Current Assets 3,215 3,372Total Current Assets 127,711 132,341 Fixed Assets, Net 23,870 21,130Operating Right-of-use Assets 217 103Other Assets 9,938 9,938Total Assets $ 161,736 $ 163,512 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 2,242 $ 3,300Accrued Liabilities 1,671 1,708Operating Lease Liability 53 33Income Taxes Payable 2,488 2,952Total Current Liabilities 6,454 7,993 Long-term Operating Lease Liability 186 86Non-current Income Taxes Payable 12,621 14,303Deferred Income Taxes 1,183 778Other Liabilities 4,512 4,411Total Liabilities 24,956 27,571 Shareholders? Equity 136,780 135,941 Total Liabilities and Shareholders' Equity $ 161,736 $ 163,512 Additional information Equity per Share $ 6.69 $ 6.67

Comparative statements of operations (in thousands unaudited):

13 Weeks Ended 39 Weeks Ended November November August November November 28, 2021 29, 2020 29, 2021 28, 2021 29, 2020 Net Sales $ 13,864 $ 10,372 $ 13,618 $ 41,076 $ 31,835 Cost of Sales 10,028 7,819 9,207 27,357 22,970 Gross Profit 3,836 2,553 4,411 13,719 8,865 % of net sales 27.7 % 24.6 % 32.4 % 33.4 % 27.8 % Selling, General & 1,593 1,536 1,488 4,729 4,718 AdministrativeExpenses% of net sales 11.5 % 14.8 % 10.9 % 11.5 % 14.8 % Restructuring Charges 13 - 170 197 - % of net sales 0.1 % 0.0 % 1.2 % 0.5 % 0.0 % Earnings from Continuing 2,230 1,017 2,753 8,793 4,147 Operations Interest and Other Income: Interest Income 80 389 89 286 1,570 Earnings from ContinuingOperationsbefore Income 2,310 1,406 2,842 9,079 5,717 Taxes Income Tax Provision 569 369 820 2,571 1,557 Net Earnings from 1,741 1,037 2,022 6,508 4,160 Continuing Operations% of net sales 12.6 % 10.0 % 14.8 % 15.8 % 13.1 % Loss fromDiscontinuedOperations, - (116 ) - - (328 )Net of Tax Net Earnings $ 1,741 $ 921 $ 2,022 $ 6,508 $ 3,832 % of net sales 12.6 % 8.9 % 14.8 % 15.8 % 12.0 %

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

13 Weeks Ended 13 Weeks Ended 13 Weeks Ended November 28, 2021 November 29, 2020 August 29, 2021 Specials Before Specials Before Specials Before GAAP Items Special GAAP Items Special GAAP Items Special Items Items Items Restructuring 13 (13 ) - - - - 170 (170 ) - Charges% of net sales 0.1 % 0.0 % 0.0 % 0.0 % 1.2 % 0.0 % Earnings fromContinuing 2,230 13 2,243 1,017 - 1,017 2,753 170 2,923 Operations% of net sales 16.1 % 16.2 % 9.8 % 9.8 % 20.2 % 21.5 % Interest Income 80 - 80 389 - 389 89 - 89 % of net sales 0.6 % 0.6 % 3.8 % 3.8 % 0.7 % 0.7 % Earnings fromContinuing 2,310 13 2,323 1,406 - 1,406 2,842 170 3,012 OperationsbeforeIncome Taxes% of net sales 16.7 % 16.8 % 13.6 % 13.6 % 20.9 % 22.1 % Income Tax 569 - 569 369 - 369 820 - 820 ProvisionEffective Tax Rate 24.6 % 24.5 % 26.2 % 26.2 % 28.9 % 27.2 % Net Earnings fromContinuing 1,741 13 1,754 1,037 - 1,037 2,022 170 2,192 Operations% of net sales 12.6 % 12.7 % 10.0 % 10.0 % 14.8 % 16.1 % Loss fromDiscontinued - - (116 ) (116 ) - - - Operations% of net sales 0.0 % 0.0 % -1.1 % -1.1 % 0.0 % 0.0 % Net Earnings 1,741 13 1,754 921 - 921 2,022 170 2,192 % of net sales 12.6 % 12.7 % 8.9 % 8.9 % 14.8 % 16.1 % Net Earnings 1,754 921 2,192 Addback DiscontinuedOperations and non-cash expenses:Loss fromDiscontinued - 116 - OperationsIncome Tax 569 369 820 ProvisionInterest Income (80 ) (389 ) (89 )Depreciation 354 314 235 Stock Option 73 49 74 ExpenseAdjusted EBITDAfrom Continuing 2,670 1,380 3,232 Operations

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

39 Weeks Ended 39 Weeks Ended November 28, 2021 November 29, 2020 Specials Before Specials Before GAAP Items Special GAAP Items Special Items ItemsRestructuring 197 (197 ) - - - - Charge% of net sales 0.5 % 0.0 % 0.0 % 0.0 % Earnings fromContinuing 8,793 197 8,990 4,147 - 4,147 Operations% of net sales 21.4 % 21.9 % 13.0 % 13.0 % Interest Income 286 286 1,570 - 1,570 % of net sales 0.7 % 0.7 % 4.9 % 4.9 % Earnings fromContinuing 9,079 197 9,276 5,717 - 5,717 OperationsbeforeIncome Taxes% of net sales 22.1 % 22.6 % 18.0 % 18.0 % Income Tax 2,571 - 2,571 1,557 - 1,557 ProvisionEffective Tax Rate 28.3 % 27.7 % 27.2 % 27.2 % Net Earnings fromContinuing 6,508 197 6,705 4,160 - 4,160 Operations% of net sales 15.8 % 16.3 % 13.1 % 13.1 % Loss fromDiscontinued - - - (328 ) - (328 )Operations% of net sales 0.0 % 0.0 % -1.0 % -1.0 % Net Earnings 6,508 197 6,705 3,832 - 3,832 % of net sales 15.8 % 16.3 % 12.0 % 12.0 % Net Earnings 6,705 3,832 Addback DiscontinuedOperations and non-cash expenses:Loss fromDiscontinued - 328 OperationsIncome Tax 2,571 1,557 ProvisionInterest Income (286 ) (1,570 )Depreciation 805 873 Stock Option 211 142 ExpenseAdjusted EBITDAfrom Continuing 10,006 5,162 Operations

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