Park Electrochemical Reports Second Quarter Results

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Park Electrochemical Corp. reported results for the 2019 fiscal year’s second quarter ended August 26, 2018. As previously reported, Park has entered into a definitive agreement to sell its Electronics Business to AGC, Inc. Therefore, the results of operations for the Electronics Business are reported as discontinued operations. Continuing operations discussed below refer to Park’s Aerospace Business unless otherwise indicated, and prior periods in such discussion have been restated to reflect results excluding the Electronics Business.

Continuing Operations:

Park reported net sales from continuing operations of $11,211,000 for the 2019 fiscal year second quarter ended August 26, 2018 compared to net sales from continuing operations of $11,355,000 for the 2018 fiscal year second quarter ended August 27, 2017 and net sales from continuing operations of $10,393,000 for the 2019 fiscal year first quarter ended May 27, 2018. Park’s net sales from continuing operations for the six months ended August 26, 2018 were $21,604,000 compared to net sales from continuing operations of $20,081,000 for the six months ended August 27, 2017.  Net earnings from continuing operations for the 2019 fiscal year second quarter were $1,824,000 compared to $859,000 for the 2018 fiscal year second quarter and $816,000 for the 2019 fiscal year first quarter. Net earnings from continuing operations were $2,640,000 for the current year’s first six months compared to $931,000 for last year’s first six months.

Pre-tax earnings from continuing operations were $1,386,000 for the 2019 fiscal year second quarter compared to pre-tax earnings from continuing operations of $1,116,000 for the 2018 fiscal year second quarter and $1,091,000 for the 2019 fiscal year first quarter. Pre-tax earnings from continuing operations were $2,477,000 for the six months ended August 26, 2018 compared to pre-tax earnings from continuing operations of $1,212,000 for last fiscal year’s first six months.

Park reported net earnings from continuing operations before special items of $1,036,000 for the 2019 fiscal year second quarter compared to net earnings from continuing operations of $859,000 for the 2018 fiscal year second quarter and net earnings from continuing operations of $816,000 for the 2019 fiscal year first quarter. In the 2019 fiscal year second quarter, the Company recorded a one-time tax benefit of $788,000 related to the Tax Cuts and Jobs Act enacted in December 2017.

For the six months ended August 26, 2018, Park reported net earnings from continuing operations before special items of $1,852,000 compared to net earnings from continuing operations of $931,000 for last fiscal year’s first six months.  The current year’s first six months included the one-time tax benefit of $788,000 mentioned above.  

Park reported basic and diluted earnings per share from continuing operations of $0.09 for the 2019 fiscal year second quarter compared to $0.04 for the 2018 fiscal year second quarter and $0.04 for the 2019 fiscal year first quarter. Basic and diluted earnings per share from continuing operations before special items were $0.05 for the 2019 fiscal year second quarter compared to $0.04 for the 2018 fiscal year second quarter and $0.04 for the 2019 fiscal year first quarter. 

Park reported basic and diluted earnings per share from continuing operations of $0.13 for the 2019 fiscal year’s first six months compared to $0.04 for the 2018 fiscal year’s first six months. Basic and diluted earnings per share from continuing operations before special items were $0.09 for the 2019 fiscal year’s first six months compared to $0.04 for 2018 fiscal year’s first six months. 

Discontinued Operations:

Net sales included in the calculation of net earnings from discontinued operations were $17,843,000 for the 2019 fiscal year second quarter ended August 26, 2018 compared to $18,481,000 for the 2018 fiscal year second quarter ended August 27, 2017 and $20,709,000 for the 2019 fiscal year first quarter ended May 27, 2018. Net sales included in the calculation of net earnings from discontinued operations for the six months ended August 26, 2018 were $38,552,000 compared to $37,172,000 for last year’s first six months.

Net earnings from discontinued operations were $876,000 for the 2019 fiscal year second quarter ended August 26, 2018 compared to negative $339,000 for the 2018 fiscal year second quarter ended August 27, 2017 and $2,352,000 for the 2019 fiscal year first quarter ended May 27, 2018. For the six months ended August 26, 2018, net earnings from discontinued operations were $3,228,000 compared to net earnings from discontinued operations of $983,000 for last fiscal year’s first six months.

Net earnings from discontinued operations for the 2019 fiscal year second quarter included pre-tax restructuring charges of $242,000 related to the Company’s consolidation of its Nelco Products, Inc. electronics Business Unit located in Fullerton, California and its Neltec, Inc. electronics Business Unit located in Tempe, Arizona and the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York and pre-tax advisory fees of $212,000. Net earnings from discontinued operations for the 2018 fiscal year second quarter included pre-tax restructuring charges of $2,902,000 related to the Company’s consolidation of its electronics Business Units and the facility closure mentioned above. Net earnings from discontinued operations for the 2019 fiscal year first quarter included pre-tax restructuring charges of $183,000 related to the Company’s consolidation of its electronics Business Units and the facility closure mentioned above and pre-tax advisory fees of $120,000.

Net earnings from discontinued operations for the 2019 fiscal year’s first six months included pre-tax restructuring charges of $425,000 related to the Company’s consolidation of its electronics Business Units and the facility closure mentioned above and pre-tax advisory fees of $332,000. Net earnings from discontinued operations for the 2018 fiscal year’s first six months included pre-tax restructuring charges of $4,638,000 related to the Company’s consolidation of its electronics Business Units and the facility closure mentioned above and a one-time pre-tax litigation expense of $375,000.

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.