Park Electrochemical Corp. Reports First Quarter

Park Electrochemical Corp. Reports First Quarter

MELVILLE, N.Y.--(BUSINESS WIRE)-- Park Electrochemical Corp. (NYS: PKE) reported net sales of $43,438,000 for the first quarter ended June 2, 2013 compared to net sales of $46,046,000 for the first quarter ended May 27, 2012.

Park reported net earnings before special items of $5,129,000 for the first quarter ended June 2, 2013 compared to net earnings before special items of $4,940,000 for the first quarter of last year. During the first quarter ended June 2, 2013, the Company recorded pre-tax restructuring charges of $200,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China. In the first quarter of last year, the Company recorded pre-tax restructuring charges of $11,000 in connection with the closure of its Park Advanced Composite Materials, Inc. facility located in Waterbury, Connecticut. Accordingly, net earnings for the first quarter ended June 2, 2013 were $4,929,000 compared to $4,933,000 for the first quarter ended May 27, 2012.


Park reported basic and diluted earnings per share before special items of $0.25 for the first quarter ended June 2, 2013 compared to basic and diluted earnings per share before special items of $0.24 for last year's first quarter. Basic and diluted earnings per share were $0.24 for the first quarter ended June 2, 2013 compared to basic and diluted earnings per share of $0.24 for last year's first quarter.

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 (866) 277-1184 in the United States and Canada and (617) 597-5360 in other countries and the required passcode is 64391909.

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 Tuesday, July 2, 2013. The conference call replay can be accessed by dialing (888) 286-8010 in the United States and Canada and (617) 801-6888 in other countries and entering passcode 37358727 or on the Company's web site at www.parkelectro.com/investor/investor.html.

Any additional material financial or statistical data disclosed in the conference call will also be available at the time of the conference call on the Company's web site at www.parkelectro.com/investor/investor.html.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its financial 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 financial results determined in accordance with GAAP, Park discloses non-GAAP 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 reconciles the non-GAAP operating results before special items to earnings determined in accordance with GAAP. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies for the aerospace markets. Park's core capabilities are in the areas of polymer chemistry formulation and coating technology. The Company's manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains R&D facilities in Arizona, Kansas and Singapore.

Additional corporate information is available on the Company's web site at www.parkelectro.com.

Performance table, including non-GAAP information (in thousands, except per share amounts -unaudited):

 
     

13 Weeks
Ended 6/2/2013

   

13 Weeks
Ended 5/27/2012

Sales $ 43,438 $ 46,046
 
Net Earnings before Special Items1 $ 5,129 $ 4,940
Special Items net of Tax $ (200 ) $ (7 )

Net Earnings

$ 4,929   $ 4,933  
 
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1 $ 0.25 $ 0.24
Special Items $ (0.01 ) $ -  
Basic Earnings per Share $ 0.24   $ 0.24  
 
Diluted Earnings before Special Items1 $ 0.25 $ 0.24
Special Items $ (0.01 ) $ -  
Diluted Earnings per Share $ 0.24   $ 0.24  
 
Weighted Average Shares Outstanding:
Basic 20,828 20,796
Diluted 20,844 20,849
 
1 Refer to "Detailed operating information" below for information regarding Special Items.
 

Comparative balance sheets (in thousands):

 
      6/2/2013     3/3/2013

Assets

Current Assets
Cash and Marketable Securities $ 279,318 $ 275,216
Accounts Receivable, Net 26,652 25,878
Inventories 14,297 12,918
Other Current Assets   6,797   6,662
Total Current Assets 327,064 320,674
 
Fixed Assets, Net 31,756 32,187
Other Assets   16,851   16,797
Total Assets $ 375,671 $ 369,658
 

Liabilities and Shareholders' Equity

Current Liabilities
Accounts Payable $ 7,419 $ 6,485
Accrued Liabilities 6,385 6,016
Income Taxes Payable   5,426   4,177
Total Current Liabilities 19,230 16,678
 
Long-Term Debt 52,000 52,000
Deferred Income Taxes 761 812
Other Liabilities   246   246
Total Liabilities 72,237 69,736
 
Shareholders' Equity   303,434   299,922
 
Total Liabilities and Shareholders' Equity $ 375,671 $ 369,658
 
Equity per Share $ 14.57 $ 14.40
 

Detailed operating information (in thousands - unaudited):

 
     

13 Weeks Ended
June 2, 2013

   

13 Weeks Ended
May 27, 2012

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

Net Sales $ 43,438 $ 43,438 $ 46,046 $ 46,046
Cost of Sales 30,447 30,447 33,070 33,070

   %

70.1 % 70.1 % 71.8 % 71.8 %
 
Gross Profit 12,991 12,991 12,976 12,976

   %

29.9 % 29.9 % 28.2 % 28.2 %
 

Selling, General & Administrative
   Expenses

6,556 6,556 7,056 7,056

   %

15.1 % 15.1 % 15.3 % 15.3 %
 
Restructuring Charge 200 (200 ) - 11 (11 ) -

   %

0.5 % 0.0 % 0.0 % 0.0 %
 
Earnings from Operations 6,235 200 6,435 5,909 11 5,920

   %

14.4 % 14.8 % 12.8 % 12.9 %
 
Interest Expense 167 167 - - -

   %

0.4 % 0.4 % 0.0 % 0.0 %
 
Other Income, net 64 64 198 198

   %

0.1 % 0.1 % 0.4 % 0.4 %
 
Earnings before Income Taxes 6,132 200 6,332 6,107 11 6,118

   %

14.1 % 14.6 % 13.3 % 13.3 %
 
Income Tax Provision 1,203 - 1,203 1,174 4 1,178

   Effective Tax Rate

19.6 % 19.0 % 19.2 % 19.3 %
 
Net Earnings 4,929 200 5,129 4,933 7 4,940

   %

11.3 % 11.8 % 10.7 % 10.7 %
 



Park Electrochemical Corp.
Martina Bar Kochva, 631-465-3600

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

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