Park Aerospace Corp. Reports First Quarter Results
Park Aerospace Corp. (NYSE-PKE) reported its fiscal year 2025 first quarter results. Net sales decreased to $13,970,000 compared to $15,551,000 in the same quarter last year. Net earnings fell to $993,000 from $1,854,000 year-over-year. Adjusted EBITDA was $2,610,000, down from $3,311,000 in the previous year's quarter.
The company faced challenges, including a $1,052,000 pre-tax charge due to storm damage at its Newton, Kansas facilities. Basic and diluted earnings per share were $0.05, compared to $0.09 in the same quarter last year. Earnings per share before special items were $0.09, down from $0.12 year-over-year.
- Net earnings before special items were $1,781,000 for Q1 2025
- Adjusted EBITDA remained positive at $2,610,000 for Q1 2025
- Net sales decreased by 10.2% year-over-year to $13,970,000 in Q1 2025
- Net earnings declined by 46.4% year-over-year to $993,000 in Q1 2025
- Adjusted EBITDA decreased by 21.2% year-over-year to $2,610,000 in Q1 2025
- Company incurred a $1,052,000 pre-tax charge due to storm damage at its facilities
Insights
Park Aerospace Corp.'s recent financial report presents a few notable insights for investors. First, the decline in net sales from
Net earnings have also seen a notable drop, from
Investors should also consider the Adjusted EBITDA trend, which has similarly decreased to
Given the reduced earnings per share from
Park Aerospace Corp.'s Q1 results also provide insight into market dynamics affecting the aerospace sector. The
The storm damage contributing a
Shareholders might also pay attention to the company's strategic responses to these challenges. Despite the negative impacts, Park Aerospace managed to mitigate some losses and keep the adjusted earnings per share relatively stable. This indicates robust risk management practices and the potential for recovery.
Going forward, investors should look for any strategic shifts or market expansions that the company might undertake to counter these downturns. Gauging how effectively Park Aerospace can navigate and recover from these setbacks will be critical for assessing long-term investment viability.
NEWTON, Kan., July 16, 2024 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year first quarter ended June 2, 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/f7gkgg8i 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
Net earnings before special items for the 2025 fiscal year first quarter were
Adjusted EBITDA for the 2025 fiscal year first quarter was
During the 2025 fiscal year, the Company recorded a
Park reported basic and diluted earnings per share of
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 13747817.
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 Tuesday, July 23, 2024. The conference call replay will be available at https://edge.media-server.com/mmc/p/f7gkgg8i 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 13747817.
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 charge related to storm damage, 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):
| 13 Weeks Ended | 13 Weeks Ended | 14 Weeks Ended | |||||||||||
| June 2, 2024 | May 28, 2023 | March 3, 2024 | |||||||||||
| Sales | $ | 13,970 | $ | 15,551 | $ | 16,333 | |||||||
| Net Earnings before Special Items1 | $ | 1,781 | $ | 2,407 | $ | 2,308 | |||||||
| Special Items, Net of Tax: | |||||||||||||
| Activist Shareholder Defense Costs | - | (570 | ) | - | |||||||||
| Stock Option Modification | - | (109 | ) | - | |||||||||
| Loss on Sale of Marketable Securities | - | (65 | ) | - | |||||||||
| Insurer Bankruptcy Cost | - | - | (70 | ) | |||||||||
| Recruiting Fees | - | - | (38 | ) | |||||||||
| Storm Damage Charge | (1,052 | ) | - | - | |||||||||
| Income Tax Effect on Pretax Special Items | 264 | 191 | 37 | ||||||||||
| Tax Impact of Cancelled Stock Options | - | - | (224 | ) | |||||||||
| Reduction in Uncertain Tax Positions | - | - | 657 | ||||||||||
| Net Earnings | $ | 993 | $ | 1,854 | $ | 2,670 | |||||||
| Basic Earnings per Share: | |||||||||||||
| Basic Earnings before Special Items1 | $ | 0.09 | $ | 0.12 | $ | 0.11 | |||||||
| Special Items: | |||||||||||||
| Activist Shareholder Defense Costs | - | (0.03 | ) | - | |||||||||
| Stock Option Modification | - | (0.01 | ) | - | |||||||||
| Loss on Sale of Marketable Securities | - | - | - | ||||||||||
| Insurer Bankruptcy Cost | - | - | - | ||||||||||
| Recruiting Fees | - | - | - | ||||||||||
| Storm Damage Charge | (0.05 | ) | - | - | |||||||||
| Income Tax Effect on Pretax Special Items | 0.01 | 0.01 | - | ||||||||||
| Tax Impact of Cancelled Stock Options | - | - | (0.01 | ) | |||||||||
| Reduction in Uncertain Tax Positions | - | - | 0.03 | ||||||||||
| Basic Earnings per Share | $ | 0.05 | $ | 0.09 | $ | 0.13 | |||||||
| Diluted Earnings before Special Items1 | $ | 0.09 | $ | 0.12 | $ | 0.11 | |||||||
| Special Items: | |||||||||||||
| Activist Shareholder Defense Costs | - | (0.03 | ) | - | |||||||||
| Stock Option Modification | - | (0.01 | ) | - | |||||||||
| Loss on Sale of Marketable Securities | - | - | - | ||||||||||
| Insurer Bankruptcy Cost | - | - | - | ||||||||||
| Recruiting Fees | - | - | - | ||||||||||
| Storm Damage Charge | (0.05 | ) | - | - | |||||||||
| Income Tax Effect on Pretax Special Items | 0.01 | 0.01 | - | ||||||||||
| Tax Impact of Cancelled Stock Options | - | - | (0.01 | ) | |||||||||
| Reduction in Uncertain Tax Positions | - | - | 0.03 | ||||||||||
| Diluted Earnings per Share | $ | 0.05 | $ | 0.09 | $ | 0.13 | |||||||
| Weighted Average Shares Outstanding: | |||||||||||||
| Basic | 20,253 | 20,461 | 20,253 | ||||||||||
| Diluted | 20,371 | 20,526 | 20,357 | ||||||||||
| 1Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items. | |||||||||||||
Comparative balance sheets (in thousands):
| June 2, 2024 | March 3, 2024 | ||||||
| Assets | (unaudited) | ||||||
| Current Assets | |||||||
| Cash and Marketable Securities | $ | 74,418 | $ | 77,211 | |||
| Accounts Receivable, Net | 11,386 | 12,381 | |||||
| Inventories | 8,312 | 6,404 | |||||
| Prepaid Expenses and Other Current Assets | 3,180 | 2,849 | |||||
| Total Current Assets | 97,296 | 98,845 | |||||
| Fixed Assets, Net | 22,185 | 23,499 | |||||
| Operating Right-of-use Assets | 81 | 95 | |||||
| Other Assets | 9,866 | 9,870 | |||||
| Total Assets | $ | 129,428 | $ | 132,309 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts Payable | $ | 2,201 | $ | 3,514 | |||
| Accrued Liabilities | 1,513 | 1,986 | |||||
| Operating Lease Liability | 17 | 53 | |||||
| Income Taxes Payable | 4,206 | 4,105 | |||||
| Total Current Liabilities | 7,937 | 9,658 | |||||
| Long-term Operating Lease Liability | 107 | 82 | |||||
| Non-current Income Taxes Payable | 5,259 | 5,259 | |||||
| Deferred Income Taxes | 3,240 | 3,222 | |||||
| Other Liabilities | 1,198 | 1,174 | |||||
| Total Liabilities | 17,741 | 19,395 | |||||
| Shareholders’ Equity | 111,687 | 112,914 | |||||
| Total Liabilities and Shareholders' Equity | $ | 129,428 | $ | 132,309 | |||
| Additional information | |||||||
| Equity per Share | $ | 5.51 | $ | 5.58 | |||
Comparative statements of operations (in thousands – unaudited):
| 13 Weeks Ended | 13 Weeks Ended | 14 Weeks Ended | |||||||||||
| June 2, 2024 | May 28, 2023 | March 3, 2024 | |||||||||||
| Net Sales | $ | 13,970 | $ | 15,551 | $ | 16,333 | |||||||
| Cost of Sales | 9,871 | 10,718 | 11,880 | ||||||||||
| Gross Profit | 4,099 | 4,833 | 4,453 | ||||||||||
| % of net sales | |||||||||||||
| Selling, General & Administrative Expenses | 2,017 | 2,615 | 1,882 | ||||||||||
| % of net sales | |||||||||||||
| Earnings from Operations | 2,082 | 2,218 | 2,571 | ||||||||||
| Storm Damage Charge | (1,052 | ) | - | - | |||||||||
| Interest and Other Income: | |||||||||||||
| Interest Income | 339 | 324 | 329 | ||||||||||
| Earnings from Operations before Income Taxes | 1,369 | 2,542 | 2,900 | ||||||||||
| Income Tax Provision | 376 | 688 | 230 | ||||||||||
| Net Earnings | $ | 993 | $ | 1,854 | $ | 2,670 | |||||||
| % of net sales | |||||||||||||
Reconciliation of non-GAAP financial measure (in thousands – unaudited):
| Reconciliation of GAAP Net Earnings to Adjusted EBITDA | |||||||||||||
| 13 Weeks Ended | 13 Weeks Ended | 14 Weeks Ended | |||||||||||
| June 2, 2024 | May 28, 2023 | March 3, 2024 | |||||||||||
| GAAP Net Earnings | $ | 993 | $ | 1,854 | $ | 2,670 | |||||||
| Adjustments: | |||||||||||||
| Income Tax Provision | 376 | 688 | 230 | ||||||||||
| Interest Income | (339 | ) | (324 | ) | (329 | ) | |||||||
| Depreciation | 439 | 305 | 418 | ||||||||||
| Stock Option Expense | 89 | 109 | 104 | ||||||||||
| Special Items: | |||||||||||||
| Activist Shareholder Defense Costs | - | 570 | - | ||||||||||
| Stock Option Modification Charge (a) | - | 109 | - | ||||||||||
| Insurer Bankruptcy Cost | - | - | 70 | ||||||||||
| Recruiting Fees | - | - | 38 | ||||||||||
| Storm Damage Charge | 1,052 | - | - | ||||||||||
| Adjusted EBITDA | $ | 2,610 | $ | 3,311 | $ | 3,201 | |||||||
| (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 | |||||||||||||
| Contact: Donna D’Amico-Annitto | 486 North Oliver Road, Bldg. Z Newton, Kansas 67114 (316) 283-6500 |
FAQ
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