Park Electrochemical Corp. Reports Second Quarter Results

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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
   
9/1/138/26/126/2/139/1/138/26/12
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:
Basic20,83620,80020,82820,83220,798
Diluted20,85220,81920,84420,84820,834
 

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, Net25,53225,878
Inventories14,29912,918
Other Current Assets 8,879 6,662
Total Current Assets332,834320,674
 
Fixed Assets, Net30,82132,187
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 Liabilities6,5786,016
Income Taxes Payable 4,790 4,177
Total Current Liabilities17,76316,678
 
Long-Term Debt52,00052,000
Deferred Income Taxes761812
Other Liabilities 246 246
Total Liabilities70,77069,736
 
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 Sales30,87630,87633,23133,23130,44730,447

  %

69.4%69.4%71.6%71.6%70.1%70.1%
 
Gross Profit13,62113,62113,19913,19912,99112,991

  %

30.6%30.6%28.4%28.4%29.9%29.9%
 
Selling, General & Administrative

Expenses

6,0416,0416,5916,5916,5566,556

  %

13.6%13.6%14.2%14.2%15.1%15.1%
 
Restructuring Charge119(119)-2,525(2,525)-200(200)-

  %

0.3%0.0%5.4%0.0%0.5%0.0%
 
Earnings from Operations7,4611197,5804,0832,5256,6086,2352006,435

  %

16.8%17.0%8.8%14.2%14.4%14.8%
 
Interest Income7777179-1796868

  %

0.2%0.2%0.4%0.4%0.2%0.2%
 
Interest Expense185185--171171

  %

0.4%0.4%0.0%0.0%0.4%0.4%
 
Net Interest (Expense) Income(108)(108) Read Full Story

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