Park Electrochemical Corp. Reports Fourth Quarter and Fiscal Year Results

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Park Electrochemical Corp. Reports Fourth Quarter and Fiscal Year Results

MELVILLE, N.Y.--(BUSINESS WIRE)-- Park Electrochemical Corp. (NYS: PKE) reported net sales of $42,675,000 for the fourth quarter ended March 3, 2013 compared to net sales of $43,676,000 for the fourth quarter ended February 26, 2012. Park's net sales for the fiscal year ended March 3, 2013 were $176,416,000 compared to net sales of $193,254,000 for the fiscal year ended February 26, 2012. It is important to note that the fourth quarter ended March 3, 2013 was a 14-week period compared to the fourth quarter ended February 26, 2012, which was a 13-week period. In addition, the fiscal year ended March 3, 2013 was a 53-week period compared to the fiscal year ended February 26, 2012, which was a 52-week period.

Park reported net earnings before special items of $4,524,000 for the fourth quarter ended March 3, 2013 compared to net earnings before special items of $3,914,000 for the fourth quarter of last year. During the 2013 fiscal year fourth quarter, the Company recorded pre-tax charges of $608,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China and its Park Advanced Composite Materials, Inc. facility located in Waterbury, Connecticut. In the fourth quarter of last year, the Company recorded pre-tax charges of $1,250,000 in connection with the closure of the Connecticut facility. Accordingly, net earnings for the fourth quarter ended March 3, 2013 were $4,072,000 compared to $3,151,000 for the fourth quarter ended February 26, 2012.


For the year ended March 3, 2013, Park reported net earnings before special items of $20,344,000 compared to net earnings before special items of $23,150,000 for the prior fiscal year. The current fiscal year included pre-tax charges of $3,703,000 related primarily to the facility closures in China and Connecticut mentioned above. The prior fiscal year included other pre-tax income of $1,598,000 relating to the settlement of certain lawsuits and pre-tax charges of $1,250,000 in connection with the closure of the Connecticut facility mentioned above. Accordingly, net earnings were $16,961,000 for the fiscal year ended March 3, 2013 compared to net earnings of $23,442,000 for the fiscal year ended February 26, 2012.

Park reported basic and diluted earnings per share before special items of $0.22 for the fourth quarter ended March 3, 2013 compared to basic and diluted earnings per share before special items of $0.19 for last year's fourth quarter. Basic and diluted earnings per share were $0.20 for the fourth quarter ended March 3, 2013 compared to basic and diluted earnings per share of $0.15 for last year's fourth quarter.

For the fiscal year ended March 3, 2013, Park reported diluted earnings per share before special items of $0.98 compared to diluted earnings per share before special items of $1.11 for the prior fiscal year. Diluted earnings per share were $0.81 for the year ended March 3, 2013 compared to diluted earnings per share of $1.13 for the prior fiscal year.

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 (800) 901-5213 in the United States and Canada and (617) 786-2962 in other countries and the required passcode is 73154636.

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, May 15, 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 95182714 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 closure and restructuring charges and the settlement of lawsuits. 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):

 

14 Weeks

13 Weeks

53 Weeks

52 Weeks

Ended 3/3/2013

Ended 2/26/2012

Ended 3/3/2013

Ended 2/26/2012

Sales$42,675$43,676$176,416$193,254
 
Net Earnings before Special Items1$4,524$3,914$20,344$23,150
Special Items net of Tax$(452)$(763)$(3,383)$292
Net Earnings$4,072 $3,151 $16,961 $23,442
 
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1$0.22$0.19$0.98$1.12
Special Items$(0.02)$(0.04)$(0.16)$0.01
Basic Earnings per Share$0.20 $0.15 $0.82 $1.13
 
Diluted Earnings before Special Items1$0.22$0.19$0.98$1.11
Special Items$(0.02)$(0.04)$(0.17)$0.02
Diluted Earnings per Share$0.20 $0.15 $0.81 $1.13
 
Weighted Average Shares Outstanding:
Basic20,80620,76420,80120,746
Diluted20,82220,81620,82320,792
 
1Refer to "Detailed operating information" below for information regarding Special Items.
 
    

Comparative balance sheets (in thousands):

 
3/3/20132/26/2012

Assets

Current Assets
Cash and Marketable Securities$275,216$268,785
Accounts Receivable, Net25,87823,533
Inventories12,91815,823
Other Current Assets 6,662 3,449
Total Current Assets320,674311,590
 
Fixed Assets, Net32,18738,695
Other Assets 16,797 15,703
Total Assets$369,658$365,988
 

Liabilities and Shareholders' Equity

Current Liabilities
Accounts Payable$6,485$8,427
Accrued Liabilities6,0168,816
Income Taxes Payable 4,177 4,198
Total Current Liabilities16,67821,441
 
Long-Term Debt52,000-
Deferred Income Taxes8121,062
Other Liabilities 246 274
Total Liabilities69,73622,777
 
Shareholders' Equity 299,922 343,211
 
Total Liabilities and Shareholders' Equity$369,658$365,988
 
Equity per Share$14.40$16.50
 
      

Detailed operating information (in thousands - unaudited):

 
14 Weeks Ended

March 3, 2013

13 Weeks Ended

February 26, 2012

   

Before

   Before
Specials

Special

SpecialsSpecial
GAAPItemsItemsGAAPItemsItems
Net Sales$42,675$42,675$43,676$43,676
Cost of Sales30,84030,84032,43532,435

  %

72.3%72.3%74.3%74.3%
 
Gross Profit11,835-11,83511,241-11,241

  %

27.7%27.7%25.7%25.7%
 

Selling, General & Administrative

Expenses

6,5836,5836,8046,804

  %

15.4%15.4%15.6%15.6%
 
Restructuring Charge608(608)-1,250(1,250)-

  %

1.4%0.0%2.9%0.0%
 
Earnings from Operations4,6446085,2523,1871,2504,437

  %

10.9%12.3%7.3%10.2%
 
Other Income, net113113203203

  %

0.3%0.3%0.5%0.5%
 
Earnings before Income Taxes4,7576085,3653,3901,2504,640

  %

11.1%12.6%7.8%10.6%
 
Income Tax Provision685156841239487726
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