Park Electrochemical Corp. Reports Fourth Quarter And Fiscal Year Results

Park Electrochemical Corp. (NYSE-PKE) reported net sales of $43,676,000 for the fourth quarter ended February 26, 2012 compared to net sales of $51,201,000 for the fourth quarter ended February 27, 2011. Park’s net sales for the fiscal year ended February 26, 2012 were $193,254,000 compared to net sales of $211,652,000 for the fiscal year ended February 27, 2011.

Park reported net earnings before special items of $3,914,000 for the fourth quarter ended February 26, 2012 compared to net earnings of $8,285,000 for the fourth quarter of last year. In the fourth quarter ended February 26, 2012, the Company recorded a restructuring charge of $1,250,000 in connection with the closing of its Park Advanced Composite Materials, Inc. facility, located in Waterbury, Connecticut. Accordingly, net earnings for the fourth quarter ended February 26, 2012 were $3,151,000 compared to net earnings of $8,285,000 for the fourth quarter of last year.

For the year ended February 26, 2012, Park reported net earnings before special items of $23,150,000 compared to net earnings before special items of $33,933,000 for the prior fiscal year. In the 2012 fiscal year, the Company recorded special items consisting of the restructuring charge of $1,250,000 mentioned above and other pre-tax income of $1,598,000 relating to the settlement of certain lawsuits. In the year ended February 27, 2011, the Company recorded an additional charge of $1,312,000 in connection with the closure, in January 2009, of its Neltec Europe SAS business unit in Mirebeau, France.

Accordingly, net earnings were $23,442,000 for the year ended February 26, 2012 compared to net earnings of $32,621,000 for the year ended February 27, 2011.

Park reported diluted earnings per share before special items of $0.19 for the fourth quarter ended February 26, 2012 compared to diluted earnings per share of $0.40 for last year’s fourth quarter. Diluted earnings per share were $0.15 for the fourth quarter ended February 26, 2012

For the fiscal year ended February 26, 2012, Park reported diluted earnings per share before special items of $1.11 compared to diluted earnings per share before special items of $1.64 for the prior fiscal year. Diluted earnings per share were $1.13 for the year ended February 26, 2012 compared to diluted earnings per share of $1.58 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) 599-9816 in the United States and Canada and (617) 847-8705 in other countries and the required passcode is 21589736.

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 Monday, May 7, 2012. 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 44640456 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 generally accepted accounting principles (“GAAP”) financial measures, which include special items, such as restructuring and closure 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, China, France, Connecticut, 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   52 Weeks Ended
2/26/12   2/27/11 2/26/12   2/27/11
Sales $ 43,676 $ 51,201 $ 193,254 $ 211,652
 
Net Earnings before Special Items1 $ 3,914 $ 8,285 $ 23,150 $ 33,933
Special Items net of Tax $ (763 ) $ - $ 292 $ (1,312 )
Net Earnings $ 3,151 $ 8,285 $ 23,442 $ 32,621
 
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1 $ 0.19 $ 0.40 $ 1.12 $ 1.65
Special Items $ (0.04 ) $ - $ 0.01 $ (0.07 )
Basic Earnings per Share $ 0.15 $ 0.40 $ 1.13 $ 1.58
 
Diluted Earnings before Special Items1 $ 0.19 $ 0.40 $ 1.11 $ 1.64
Special Items $ (0.04 ) $ - $ 0.02 $ (0.06 )
Diluted Earnings per Share $ 0.15 $ 0.40 $ 1.13 $ 1.58
 
Weighted Average Shares Outstanding:
Basic 20,764 20,682 20,746 20,628
Diluted 20,816 20,777 20,792 20,675
 
1 Refer to "Reconciliation of GAAP to non-GAAP measures" below for information regarding Special Items.

Comparative balance sheets (in thousands):
  2/26/12   2/27/11

Assets
Current Assets
Cash and Marketable Securities $ 268,785 $ 250,444
Accounts Receivable, Net 23,533 29,822
Inventories 15,823 12,888
Other Current Assets   3,449   3,805
Total Current Assets 311,590 296,959
 
Fixed Assets, Net 38,695 41,292
Other Assets   15,703   15,557
Total Assets $ 365,988 $ 353,808
 

Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 8,427 $ 9,944
Accrued Liabilities 8,816 9,497
Income Taxes Payable   4,198   5,812
Total Current Liabilities 21,441 25,253
 
Deferred Income Taxes 1,062 1,460
Other Liabilities   274   1,787
Total Liabilities 22,777 28,500
 
Stockholders’ Equity   343,211   325,308
 
Total Liabilities and Stockholders' Equity $ 365,988 $ 353,808
 
Equity per Share $ 16.50 $ 15.70

Detailed operating information (in thousands – unaudited):
  13 Weeks Ended   52 Weeks Ended
2/26/12   2/27/11 2/26/12   2/27/11
 
Net Sales $ 43,676 $ 51,201 $ 193,254 $ 211,652
Cost of Sales 32,435 34,272 138,512 141,751

%
74.3% 66.9% 71.7% 67.0%
 
Gross Profit 11,241 16,929 54,742 69,901
% 25.7% 33.1% 28.3% 33.0%
 

Selling, General and Administrative Expenses
6,804 6,536 28,247 27,917
% 15.5% 12.8% 14.6% 13.2%
 
Restructuring Charge 1,250 - 1,250 1,312
% 2.9% 0.0% 0.6% 0.6%
 
Earnings from Operations 3,187 10,393 25,245 40,672
% 7.3% 20.3% 13.1% 19.2%
 
Other Income 203 228 2,406 645
% 0.4% 0.4% 1.2% 0.3%
 
Earnings before Income Taxes 3,390 10,621 27,651 41,317
% 7.8% 20.7% 14.3% 19.5%
 
Income Tax Provision 239 2,336 4,209 8,696
Effective Tax Rate 7.1% 22.0% 15.2% 21.0%
 
Net Earnings 3,151 8,285 23,442 32,621
% 7.2% 16.2% 12.1% 15.4%
 
Reconciliation of GAAP to non-GAAP measures (in thousands – unaudited):
 
GAAP Earnings before Income Taxes $ 3,390 $ 10,621 $ 27,651 $ 41,317
 

Special Items:
Settlement of Certain Lawsuits - - 1,598 -
Restructuring Charge (1,250) - (1,250) (1,312)
 
Adjusted Earnings before Income Taxes 4,640 10,621 27,303 42,629
% 10.6% 20.7% 14.1% 20.1%
 
Income Tax Provision before Special Items 726 2,336 4,153 8,696
Effective Tax Rate 15.6% 22.0% 15.2% 20.4%
 
Net Earnings before Special Items 3,914 8,285 23,150 33,933
% 9.0% 16.2% 12.0% 16.0%

Detailed operating information before special items (in thousands – unaudited) :
  13 Weeks Ended   52 Weeks Ended
2/26/2012   2/27/2011 2/26/2012   2/27/2011
Net Sales $ 43,676 $ 51,201 $ 193,254 $ 211,652
Cost of Sales 32,435 34,272 138,512 141,751
% 74.3% 66.9% 71.7% 67.0%
 
Gross Profit 11,241 16,929 54,742 69,901
% 25.7% 33.1% 28.3% 33.0%
 

Selling, General and Administrative Expenses
6,804 6,536 28,247 27,917
% 15.6% 12.8% 14.6% 13.2%
 
Restructuring Charge1 - - - -
% 0.0% 0.0% 0.0% 0.0%
 
Earnings from Operations 4,437 10,393 26,495 41,984
% 10.2% 20.3% 13.7% 19.8%
 
Other Income1 203 228 808 645
% 0.5% 0.4% 0.4% 0.3%
 
Earnings before Income Taxes 4,640 10,621 27,303 42,629
% 10.6% 20.7% 14.1% 20.1%
 
Income Tax Provision 726 2,336 4,153 8,696
Effective Tax Rate 15.6% 22.0% 15.2% 20.4%
 
Net Earnings 3,914 8,285 23,150 33,933
% 9.0% 16.2% 12.0% 16.0%
 

1 Refer to "Reconciliation of GAAP to non-GAAP measures" above for information regarding Special Items.

Copyright Business Wire 2010

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