Park Electrochemical Corp. Reports Second Quarter Results

Park Electrochemical Corp.Reports Second Quarter Results

MELVILLE, N.Y.--(BUSINESS WIRE)-- Park Electrochemical Corp. (NYS: PKE) reported net sales of $44,497,000 for the second quarter ended September 1, 2013 compared to net sales of $46,430,000 for the second quarter ended August 26, 2012. Park's net sales for the six months ended September 1, 2013 were $87,935,000 compared to net sales of $92,476,000 for the six months ended August 26, 2012.

Park reported net earnings before special items of $5,983,000 for the second quarter ended September 1, 2013 compared to net earnings before special items of $5,771,000 for the second quarter of last fiscal year. During the second quarter ended September 1, 2013, the Company recorded a tax benefit of $2,181,000 in connection with a tax refund related to amended federal income tax returns and pre-tax restructuring charges of $119,000 related to the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China. In the second quarter of last fiscal year, the Company recorded pre-tax restructuring charges of $2,525,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility. Accordingly, net earnings for the second quarter ended September 1, 2013 were $8,045,000 compared to net earnings of $3,246,000 for the second quarter ended August 26, 2012.


For the six-month period ended September 1, 2013, Park reported net earnings before special items of $11,112,000 compared to net earnings before special items of $10,711,000 for the last year's first six-month period. The current year six-month period included the tax benefit of $2,181,000 mentioned above and pre-tax charges of $319,000 related to the facility closure mentioned above. Last year's first six-month period included pre-tax charges of $2,536,000 related primarily to the facility closure mentioned above. Accordingly, net earnings were $12,974,000 for the six-month period ended September 1, 2013 compared to net earnings of $8,179,000 for the six-month period ended August 26, 2012.

Park reported basic and diluted earnings per share before special items of $0.29 for the second quarter ended September 1, 2013 compared to basic and diluted earnings per share before special items of $0.28 for last year's second quarter. Basic and diluted earnings per share were $0.39 for the second quarter ended September 1, 2013 compared to basic and diluted earnings per share of $0.16 for last year's second quarter.

For the six months ended September 1, 2013, Park reported basic and diluted earnings per share before special items of $0.53 compared to basic and diluted earnings per share before special items of $0.52 and $0.51, respectively, for the prior year's first six months. Basic and diluted earnings per share were $0.62 for the six months ended September 1, 2013 compared to basic and diluted earnings per share of $0.39 for the prior year's first six months.

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) 515-2909 in the United States and Canada and (617) 399-5123 in other countries and the required passcode is 79539706.

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 Sunday, October 6, 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 20567412 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 tax benefits and 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

26 Weeks Ended

9/1/13

8/26/12

6/2/13

9/1/13

8/26/12

Sales

$

44,497

$

46,430

$

43,438

$

87,935

$

92,476

Net Earnings before Special Items1

$

5,983

$

5,771

$

5,129

$

11,112

$

10,711

Special Items net of Tax

$

2,062

$

(2,525

)

$

(200

)

$

1,862

$

(2,532

)

Net Earnings

$

8,045

$

3,246

$

4,929

$

12,974

$

8,179

Basic and Diluted Earnings per Share:

Basic Earnings before Special Items1

$

0.29

$

0.28

$

0.25

$

0.53

$

0.52

Special Items

$

0.10

$

(0.12

)

$

(0.01

)

$

0.09

$

(0.13

)

Basic Earnings per Share

$

0.39

$

0.16

$

0.24

$

0.62

$

0.39

Diluted Earnings before Special Items1

$

0.29

$

0.28

$

0.25

$

0.53

$

0.51

Special Items

$

0.10

$

(0.12

)

$

(0.01

)

$

0.09

$

(0.12

)

Diluted Earnings per Share

$

0.39

$

0.16

$

0.24

$

0.62

$

0.39

Weighted Average Shares Outstanding:

Basic

20,836

20,800

20,828

20,832

20,798

Diluted

20,852

20,819

20,844

20,848

20,834

1Refer to "Detailed operating information" below for information regarding Special Items.

Comparative balance sheets (in thousands):

9/1/2013

3/3/2013

Assets

(unaudited)

Current Assets

Cash and Marketable Securities

$

284,124

$

275,216

Accounts Receivable, Net

25,532

25,878

Inventories

14,299

12,918

Other Current Assets

8,879

6,662

Total Current Assets

332,834

320,674

Fixed Assets, Net

30,821

32,187

Other Assets

16,849

16,797

Total Assets

$

380,504

$

369,658

Liabilities and Shareholders' Equity

Current Liabilities

Accounts Payable

$

6,395

$

6,485

Accrued Liabilities

6,578

6,016

Income Taxes Payable

4,790

4,177

Total Current Liabilities

17,763

16,678

Long-Term Debt

52,000

52,000

Deferred Income Taxes

761

812

Other Liabilities

246

246

Total Liabilities

70,770

69,736

Shareholders' Equity

309,734

299,922

Total Liabilities and Shareholders' Equity

$

380,504

$

369,658

Equity per Share

$

14.86

$

14.40

Detailed operating information (in thousands - unaudited):

13 Weeks Ended

September 1, 2013

13 Weeks Ended

August 26, 2012

13 Weeks Ended

June 2, 2013

GAAP

Specials

Items

Before

Special

Items

GAAP

Specials

Items

Before

Special

Items

GAAP

Specials

Items

Before

Special

Items

Net Sales

$

44,497

$

44,497

$

46,430

$

46,430

$

43,438

$

43,438

Cost of Sales

30,876

30,876

33,231

33,231

30,447

30,447

%

69.4%

69.4%

71.6%

71.6%

70.1%

70.1%

Gross Profit

13,621

13,621

13,199

13,199

12,991

12,991

%

30.6%

30.6%

28.4%

28.4%

29.9%

29.9%

Selling, General & Administrative

Expenses

6,041

6,041

6,591

6,591

6,556

6,556

%

13.6%

13.6%

14.2%

14.2%

15.1%

15.1%

Restructuring Charge

119

(119)

-

2,525

(2,525)

-

200

(200)

-

%

0.3%

0.0%

5.4%

0.0%

0.5%

0.0%

Earnings from Operations

7,461

119

7,580

4,083

2,525

6,608

6,235

200

6,435

%

16.8%

17.0%

8.8%

14.2%

14.4%

14.8%

Interest Income

77

77

179

-

179

68

68

%

0.2%

0.2%

0.4%

0.4%

0.2%

0.2%

Interest Expense

185

185

-

-

171

171

%

0.4%

0.4%

0.0%

0.0%

0.4%

0.4%

Net Interest (Expense) Income

(108)

(108)