Park Electrochemical Reports Q4 and 2018 Fiscal Year Results

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Park Electrochemical Corp. reported net sales of $27,804,000 for the 2018 fiscal year’s fourth quarter ended February 25, 2018 compared to net sales of $27,599,000 for the 2017 fiscal year’s fourth quarter ended February 26, 2017 and net sales of $26,139,000 for the 2018 fiscal year’s third quarter ended November 26, 2017. Park’s net sales for the fiscal year ended February 25, 2018 were $111,196,000 compared to net sales of $114,609,000 for the fiscal year ended February 26, 2017. 

Net earnings for the 2018 fiscal year’s fourth quarter were $17,965,000 compared to $2,477,000 for the 2017 fiscal year’s fourth quarter and $716,000 for the 2018 fiscal year’s third quarter.  Net earnings were $20,595,000 for the fiscal year ended February 25, 2018 compared to $9,283,000 for the fiscal year ended February 26, 2017. 

Park reported net earnings before special items of $1,972,000 for the 2018 fiscal year’s fourth quarter compared to net earnings before special items of $2,548,000 for the 2017 fiscal year’s fourth quarter and net earnings before special items of $1,131,000 for the 2018 fiscal year’s third quarter. 

In the 2018 fiscal year’s fourth quarter, the Company recorded a one-time tax benefit of $17,802,000 related to the Tax Cuts and Jobs Act enacted in December 2017. Additionally, in the 2018 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $287,000, a pre-tax loss on the sales of marketable securities of $1,342,000, pre-tax deferred financing costs of $144,000 related to the early termination of the HSBC Bank Credit Agreement, a pre-tax stock option modification charge of $513,000 and pre-tax advisory fees of $162,000. The restructuring charges are related to the consolidation of the Company’s electronics business units in California and Arizona, the closure, in fiscal year 2009, of its facility located in Newburgh, New York and the closure of its facility in Waterbury, Connecticut. The loss on the sales of marketable securities was in connection with the liquidation of securities to repatriate overseas funds to pay off the HSBC loan of $68,500,000 and pay a special cash dividend of $3.00 per share in February 2018. The stock option modification charge related to a modification of previously granted employee stock options resulting from the special dividend paid in February 2018. The advisory fees pertained to the strategic evaluation of the Company’s electronics business announced in January 2018. 

In the 2017 fiscal year’s fourth quarter, the Company recorded pre-tax restructuring charges of $107,000 in connection with the aforementioned Newburgh, New York facility closure.  In the 2018 fiscal year’s third quarter, the Company recorded pre-tax restructuring charges of $472,000 related to the consolidation of its electronics business units located in California and Arizona and the closure, in fiscal year 2009, of its facility located in Newburgh, New York and advisory fees related to the strategic evaluation of the Company’s electronics business of $190,000 included in selling, general and administrative expenses. 

For the fiscal year ended February 25, 2018, Park reported net earnings before special items of $7,930,000 compared to net earnings before special items of $9,480,000 for the prior fiscal year. In the 2018 fiscal year, the Company recorded the one-time tax benefit of $17,802,000 mentioned above and recorded pre-tax restructuring charges of $5,022,000 related to the consolidation of electronics business units and facility closures mentioned above, a pre-tax loss on the sales of marketable securities of $1,342,000, pre-tax deferred financing costs of $144,000, a pre-tax stock option modification charge of $513,000, all mentioned above, pre-tax advisory fees of $352,000 related to the strategic evaluation of the Company’s electronics business and a pre-tax one-time litigation expense of $375,000. The 2017 fiscal year included pre-tax restructuring charges of $313,000 related to the facility closures mentioned above. 

Park reported basic earnings per share of $0.89 and diluted earnings per share of $0.88 for the 2018 fiscal year’s fourth quarter compared basic and diluted earnings per share to $0.12 for the 2017 fiscal year’s fourth quarter and $0.04 for the 2018 fiscal year’s third quarter. Basic and diluted earnings per share before special items were $0.10 for the 2018 fiscal year’s fourth quarter compared to $0.13 for the 2017 fiscal year’s fourth quarter and $0.06 for the 2018 fiscal year’s third quarter. 

Park reported basic and diluted earnings per share of $1.02 for the 2018 fiscal year compared to $0.46 for the 2017 fiscal year, and basic and diluted earnings per share before special items of $0.39 for the 2018 fiscal year compared to $0.47 for the 2017 fiscal year.

About Park Electrochemical Corp. 

Park Electrochemical Corp. is a global advanced materials company which develops and manufactures advanced composite materials, primary and secondary structures and assemblies and low-volume tooling for the aerospace markets and high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets.  The Company’s manufacturing facilities are located in Kansas, Singapore, France, Arizona and California. The Company also maintains R&D facilities in Arizona, Kansas and Singapore.

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