Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results
Park Aerospace Corp. (NYSE: PKE) reported its financial results for the fourth quarter and fiscal year ending March 3, 2024. The company recorded net sales of $16.33 million for Q4, a rise from $13.53 million in Q4 2023. Full-year net sales were $56 million, up from $54.05 million in 2023. However, net earnings decreased to $2.67 million for Q4 compared to $4.71 million in the previous year and $7.47 million for the full year down from $10.73 million in 2023. Adjusted EBITDA for Q4 stood at $3.20 million, improving from $2.63 million in Q4 2023. EPS for Q4 was $0.13, down from $0.23 in the previous year. The company faced costs related to activist shareholder defense, investment losses, and recruiting fees.
- Q4 net sales increased to $16.33M from $13.53M in Q4 2023.
- Full-year net sales rose to $56M from $54.05M in 2023.
- Adjusted EBITDA for Q4 improved to $3.20M from $2.63M in Q4 2023.
- Net earnings before special items for Q4 were $2.31M, up from $1.98M in Q4 2023.
- Net earnings for Q4 fell to $2.67M from $4.71M in Q4 2023.
- Full-year net earnings dropped to $7.47M from $10.73M in 2023.
- Adjusted EBITDA for the fiscal year decreased to $10.99M from $11.46M in 2023.
- EPS for Q4 declined to $0.13 from $0.23 in the previous year.
Insights
NEWTON, Kan., May 30, 2024 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2024 fiscal year fourth quarter and full fiscal year ended March 3, 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/zyr8codr 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 2024 fiscal year fourth quarter were
Adjusted EBITDA for the 2024 fiscal year fourth quarter was
During the 2024 fiscal year, the Company recorded
Park reported basic and diluted earnings per share of
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 13746866.
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 Thursday, June 6, 2024. The conference call replay will be available at https://edge.media-server.com/mmc/p/zyr8codr 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 13746866.
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 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):
| 14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||
| March 3, 2024 | February 26, 2023 | November 26, 2023 | March 3, 2024 | February 26, 2023 | ||||||||||||||||||
| Sales | $ | 16,333 | $ | 13,530 | $ | 11,639 | $ | 56,004 | $ | 54,055 | ||||||||||||
| Net Earnings before Special Items1 | $ | 2,308 | $ | 1,976 | $ | 1,203 | $ | 7,664 | $ | 8,154 | ||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | (570 | ) | - | ||||||||||||||||
| Stock Option Modification | - | - | - | (109 | ) | - | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | (65 | ) | - | ||||||||||||||||
| Insurer Bankruptcy Cost | (70 | ) | - | - | (70 | ) | - | |||||||||||||||
| Recruiting Fees | (38 | ) | - | - | (38 | ) | - | |||||||||||||||
| Income Tax Effect on Pretax Special Items | 37 | - | - | 228 | - | |||||||||||||||||
| Reduction in Uncertain Tax Positions | 657 | 2,791 | - | 657 | 2,791 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | (224 | ) | (61 | ) | - | (224 | ) | (214 | ) | |||||||||||||
| Net Earnings | $ | 2,670 | $ | 4,706 | $ | 1,203 | $ | 7,473 | $ | 10,731 | ||||||||||||
| Basic Earnings per Share: | ||||||||||||||||||||||
| Basic Earnings before Special Items1 | $ | 0.11 | $ | 0.10 | $ | 0.06 | $ | 0.38 | $ | 0.40 | ||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | (0.03 | ) | - | ||||||||||||||||
| Stock Option Modification | - | - | - | (0.01 | ) | - | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | - | - | |||||||||||||||||
| Insurer Bankruptcy Cost | - | - | - | - | - | |||||||||||||||||
| Recruiting Fees | - | - | - | - | - | |||||||||||||||||
| Income Tax Effect on Pretax Special Items | - | - | - | 0.01 | - | |||||||||||||||||
| Reduction in Uncertain Tax Positions | 0.03 | 0.13 | - | 0.03 | 0.13 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | (0.01 | ) | - | - | (0.01 | ) | (0.01 | ) | ||||||||||||||
| Basic Earnings per Share | $ | 0.13 | $ | 0.23 | $ | 0.06 | $ | 0.37 | $ | 0.52 | ||||||||||||
| Diluted Earnings before Special Items1 | $ | 0.11 | $ | 0.10 | $ | 0.06 | $ | 0.38 | $ | 0.40 | ||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | (0.03 | ) | - | ||||||||||||||||
| Stock Option Modification | - | - | - | (0.01 | ) | - | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | - | - | |||||||||||||||||
| Insurer Bankruptcy Cost | - | - | - | - | - | |||||||||||||||||
| Recruiting Fees | - | - | - | - | - | |||||||||||||||||
| Income Tax Effect on Pretax Special Items | - | - | - | 0.01 | - | |||||||||||||||||
| Reduction in Uncertain Tax Positions | 0.03 | 0.13 | - | 0.03 | 0.13 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | (0.01 | ) | - | - | (0.01 | ) | (0.01 | ) | ||||||||||||||
| Diluted Earnings per Share | $ | 0.13 | $ | 0.23 | $ | 0.06 | $ | 0.37 | $ | 0.52 | ||||||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||||||||
| Basic | 20,253 | 20,471 | 20,250 | 20,304 | 20,465 | |||||||||||||||||
| Diluted | 20,357 | 20,518 | 20,355 | 20,393 | 20,509 | |||||||||||||||||
| 1Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items. | ||||||||||||||||||||||
Comparative balance sheets (in thousands):
| March 3, 2024 | February 26, 2023 | ||||||
| Assets | (unaudited) | ||||||
| Current Assets | |||||||
| Cash and Marketable Securities | $ | 77,211 | $ | 105,440 | |||
| Accounts Receivable, Net | 12,381 | 9,989 | |||||
| Inventories | 6,404 | 6,768 | |||||
| Prepaid Expenses and Other Current Assets | 2,849 | 2,844 | |||||
| Total Current Assets | 98,845 | 125,041 | |||||
| Fixed Assets, Net | 23,499 | 24,251 | |||||
| Operating Right-of-use Assets | 95 | 150 | |||||
| Other Assets | 9,870 | 9,891 | |||||
| Total Assets | $ | 132,309 | $ | 159,333 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts Payable | $ | 3,514 | $ | 4,545 | |||
| Accrued Liabilities | 1,986 | 1,346 | |||||
| Dividend Payable | - | 20,471 | |||||
| Operating Lease Liability | 53 | 53 | |||||
| Income Taxes Payable | 4,105 | 2,171 | |||||
| Total Current Liabilities | 9,658 | 28,586 | |||||
| Long-term Operating Lease Liability | 82 | 129 | |||||
| Non-current Income Taxes Payable | 5,259 | 10,938 | |||||
| Deferred Income Taxes | 3,222 | 1,995 | |||||
| Other Liabilities | 1,174 | 1,751 | |||||
| Total Liabilities | 19,395 | 43,399 | |||||
| Shareholders’ Equity | 112,914 | 115,934 | |||||
| Total Liabilities and Shareholders' Equity | $ | 132,309 | $ | 159,333 | |||
| Additional information | |||||||
| Equity per Share | $ | 5.58 | $ | 5.66 | |||
Comparative statements of operations (in thousands – unaudited):
| 14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||
| March 3, 2024 | February 26, 2023 | November 26, 2023 | March 3, 2024 | February 26, 2023 | ||||||||||||||||||
| Net Sales | $ | 16,333 | $ | 13,530 | $ | 11,639 | $ | 56,004 | $ | 54,055 | ||||||||||||
| Cost of Sales | 11,880 | 9,679 | 8,470 | 39,470 | 37,582 | |||||||||||||||||
| Gross Profit | 4,453 | 3,851 | 3,169 | 16,534 | 16,473 | |||||||||||||||||
| % of net sales | 27.3 | % | 28.5 | % | 27.2 | % | 29.5 | % | 30.5 | % | ||||||||||||
| Selling, General & Administrative Expenses | 1,882 | 1,631 | 1,804 | 8,154 | 6,519 | |||||||||||||||||
| % of net sales | 11.5 | % | 12.1 | % | 15.5 | % | 14.6 | % | 12.1 | % | ||||||||||||
| Earnings from Operations | 2,571 | 2,220 | 1,365 | 8,380 | 9,954 | |||||||||||||||||
| Interest and Other Income: | ||||||||||||||||||||||
| Interest Income | 329 | 425 | 261 | 1,053 | 1,078 | |||||||||||||||||
| Earnings from Operations before Income Taxes | 2,900 | 2,645 | 1,626 | 9,433 | 11,032 | |||||||||||||||||
| Income Tax Provision (Benefit) | 230 | (2,061 | ) | 423 | 1,960 | 301 | ||||||||||||||||
| Net Earnings | $ | 2,670 | $ | 4,706 | $ | 1,203 | $ | 7,473 | $ | 10,731 | ||||||||||||
| % of net sales | 16.3 | % | 34.8 | % | 10.3 | % | 13.3 | % | 19.9 | % | ||||||||||||
Reconciliation of non-GAAP financial measure (in thousands – unaudited):
| 14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||
| March 3, 2024 | February 26, 2023 | November 26, 2023 | March 3, 2024 | February 26, 2023 | ||||||||||||||||||
| GAAP Net Earnings | $ | 2,670 | $ | 4,706 | $ | 1,203 | $ | 7,473 | $ | 10,731 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Income Tax Provision | 230 | (2,061 | ) | 423 | 1,960 | 301 | ||||||||||||||||
| Interest Income | (329 | ) | (425 | ) | (261 | ) | (1,118 | ) | (1,078 | ) | ||||||||||||
| Depreciation | 418 | 310 | 340 | 1,402 | 1,136 | |||||||||||||||||
| Stock Option Expense | 104 | 95 | 103 | 420 | 369 | |||||||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | 570 | - | |||||||||||||||||
| Stock Option Modification Charge (a) | - | - | - | 109 | - | |||||||||||||||||
| Pre-tax Losses on Sales of Investments (b) | - | - | - | 65 | - | |||||||||||||||||
| Insurer Bankruptcy Cost | 70 | - | - | 70 | - | |||||||||||||||||
| Recruiting Fees | 38 | - | - | 38 | - | |||||||||||||||||
| Adjusted EBITDA | $ | 3,201 | $ | 2,625 | $ | 1,808 | $ | 10,989 | $ | 11,459 | ||||||||||||
| (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 | ||||||||||||||||||||||
| (b) to fund the | ||||||||||||||||||||||
| Contact: Donna D’Amico-Annitto | 486 North Oliver Road, Bldg. Z Newton, Kansas 67114 (316) 283-6500 |
FAQ
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