NEWTON, Kan., Oct. 05, 2023 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2024 fiscal year second quarter ended August 27, 2023. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/4ux8vz3r at 5:00 p.m. EDT today. The presentation materials will also be available at approximately 4:15 p.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company's website at www.parkaerospace.com under "Investor Conference Calls" on the "Shareholders" page.

Park reported net sales of $12,481,000 for the 2024 fiscal year second quarter ended August 27, 2023 compared to $13,875,000 for the 2023 fiscal year second quarter ended August 28, 2022 and $15,551,000 for the 2024 fiscal year first quarter ended May 28, 2023. Park's net sales for the six months ended August 27, 2023 were $28,032,000 compared to $26,658,000 for the six months ended August 28, 2022. Net earnings for the 2024 fiscal year second quarter were $1,746,000 compared to $1,885,000 for the 2023 fiscal year second quarter and $1,854,000 for the 2024 fiscal year first quarter. Net earnings were $3,600,000 for the current year's first six months compared to $3,795,000 for last year's first six months.

Net earnings before special items for the 2024 fiscal year second quarter were $1,746,000 compared to $1,885,000 for the 2023 fiscal year second quarter and $2,407,000 for the 2024 fiscal year first quarter. Net earnings before special items for the six months ended August 27, 2023 were $4,153,000 compared to $3,795,000 for last fiscal year's first six months.

Adjusted EBITDA for the 2024 fiscal year second quarter was $2,669,000 compared to $2,709,000 for the 2023 fiscal year second quarter and $3,311,000 for the 2024 fiscal year first quarter. Adjusted EBITDA for the current year's first six months was $5,980,000 compared to $5,513,000 for last year's first six months.

During the 2024 fiscal year's first six months, the Company recorded $570,000 of pre-tax activist shareholder defense costs, $65,000 of pre-tax losses on sales of investments to fund the $1.00 per share special dividend paid on April 6, 2023 to shareholders of record on March 9, 2023 and a $109,000 pre-tax charge for the modification of previously granted stock options in connection with the special dividend in the 2024 fiscal year first quarter.

Park reported basic and diluted earnings per share of $0.09 for the 2024 fiscal year second quarter compared to $0.09 for the 2023 fiscal year second quarter and $0.09 for the 2024 fiscal year first quarter. Basic and diluted earnings per share before special items were $0.09 for the 2024 fiscal year second quarter compared to $0.09 for the 2023 fiscal year second quarter and $0.12 for the 2024 fiscal year first quarter.

Park reported basic and diluted earnings per share of $0.18 for the 2024 fiscal year's first six months compared to $0.19 for the 2023 fiscal year's first six months. Basic and diluted earnings per share before special items were $0.20 for the 2024 fiscal year's first six months compared to $0.19 for the 2023 fiscal year's first six months.

The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required passcode for attendance by phone is 13741264.

For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EDT today through 11:59 p.m. EDT on Thursday, October 12, 2023. The conference call replay will be available at https://edge.media-server.com/mmc/p/4ux8vz3r and on the Company's website at www.parkaerospace.com under "Investor Conference Calls" on the "Shareholders" page. It can also be accessed by dialing (844) 512-2921 in the United States and Canada, and (412) 317-6671 in other countries. The required passcode for accessing the replay by phone is 13741264.

Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's web site at

https://parkaerospace.com/shareholders/investor-conference-calls/.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America ("GAAP") financial measures, which include special items, such as activist shareholder defense costs, losses on sales of investments and charges for modification of previously granted stock options. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA, and 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 includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park's advanced composite materials include film adhesives (Aeroadhere^®) and lightning strike protection materials (Electroglide^®). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park's advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as "drones"), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park's advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park's composite parts and structures (which include Park's proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park's objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up.

Additional corporate information is available on the Company's web site at www.parkaerospace.com

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

	13 Weeks Ended							26 Weeks Ended

	August 27, 2023		August 28, 2022		May 28, 2023			August 27, 2023			August 28, 2022
Sales	$	12,481	$	13,875	$	15,551		$	28,032		$	26,658

Net Earnings before Special Items¹	$	1,746	$	1,885	$	2,407		$	4,153		$	3,795
Special Items, Net of Tax:
Activist Shareholder Defense Costs		-		-		(424	)		(424	)		-
Stock Option Modification		-		-		(81	)		(81	)		-
Loss on Sale of Marketable Securities		-		-		(48	)		(48	)		-
Net Earnings	$	1,746	$	1,885	$	1,854		$	3,600		$	3,795

Basic Earnings per Share:
Basic Earnings before Special Items¹	$	0.09	$	0.09	$	0.12		$	0.20		$	0.19
Special Items:
Activist Shareholder Defense Costs		-		-		(0.02	)		(0.02	)		-
Stock Option Modification		-		-		(0.01	)		-			-
Loss on Sale of Marketable Securities		-		-		-			-			-
Basic Earnings per Share	$	0.09	$	0.09	$	0.09		$	0.18		$	0.19



Diluted Earnings before Special Items¹	$	0.09	$	0.09	$	0.12		$	0.20		$	0.19
Special Items:
Activist Shareholder Defense Costs		-		-		(0.02	)		(0.02	)		-
Stock Option Modification		-		-		(0.01	)		-			-
Loss on Sale of Marketable Securities		-		-		-			-			-
Diluted Earnings per Share	$	0.09	$	0.09	$	0.09		$	0.18		$	0.19

Weighted Average Shares Outstanding:
Basic		20,256		20,461		20,461			20,359			20,460
Diluted		20,338		20,503		20,526			20,432			20,504

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

Comparative balance sheets (in thousands):

	August 27, 2023		February 26, 2023
Assets	(unaudited)
Current Assets
Cash and Marketable Securities	$	74,214	$	105,440
Accounts Receivable, Net		9,374		9,989
Inventories		8,457		6,768
Prepaid Expenses and Other Current Assets		2,587		2,844
Total Current Assets		94,632		125,041

Fixed Assets, Net		23,980		24,251
Operating Right-of-use Assets		123		150
Other Assets		9,884		9,891
Total Assets	$	128,619	$	159,333

Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	$	1,535	$	4,545
Accrued Liabilities		1,167		1,346
Dividend Payable		-		20,471
Operating Lease Liability		53		53
Income Taxes Payable		4,033		2,171
Total Current Liabilities		6,788		28,586

Long-term Operating Lease Liability		106		129
Non-current Income Taxes Payable		5,259		10,938
Deferred Income Taxes		1,942		1,995
Other Liabilities		1,812		1,751
Total Liabilities		15,907		43,399

Shareholders' Equity		112,712		115,934

Total Liabilities and Shareholders' Equity	$	128,619	$	159,333

Additional information
Equity per Share	$	5.57	$	5.66

Comparative statements of operations (in thousands – unaudited):

	13 Weeks Ended									26 Weeks Ended

	August 27, 2023			August 28, 2022			May 28, 2023			August 27, 2023			August 28, 2022

Net Sales	$	12,481		$	13,875		$	15,551		$	28,032		$	26,658

Cost of Sales		8,402			9,789			10,718			19,120			18,480

Gross Profit		4,079			4,086			4,833			8,912			8,178
% of net sales		32.7	%		29.4	%		31.1	%		31.8	%		30.7	%

Selling, General & Administrative Expenses		1,853			1,732			2,615			4,468			3,365
% of net sales		14.8	%		12.5	%		16.8	%		15.9	%		12.6	%

Earnings from Operations		2,226			2,354			2,218			4,444			4,813

Interest and Other Income:
Interest Income		139			221			324			463			354

Earnings from Operations before Income Taxes		2,365			2,575			2,542			4,907			5,167

Income Tax Provision		619			690			688			1,307			1,372
Net Earnings	$	1,746		$	1,885		$	1,854		$	3,600		$	3,795
% of net sales		14.0	%		13.6	%		11.9	%		12.8	%		14.2	%

Reconciliation of non-GAAP financial measures (in thousands – unaudited):

	13 Weeks Ended August 27, 2023								13 Weeks Ended August 28, 2022								13 Weeks Ended May 28, 2023
	GAAP			Specials Items		Before Special Items			GAAP			Specials Items		Before Special Items			GAAP			Specials Items			Before Special Items

Selling, General & Administrative Expenses	$	1,853		$	-	$	1,853		$	1,732		$	-	$	1,732		$	2,615		$	(679	)	$	1,936
% of net sales		14.8	%				14.8	%		12.5	%				12.5	%		16.8	%					12.4	%

Earnings from Operations		2,226			-		2,226			2,354			-		2,354			2,218			679			2,897
% of net sales		17.8	%				17.8	%		17.0	%				17.0	%		14.3	%					18.6	%

Interest Income		139			-		139			221			-		221			324			65			389
% of net sales		1.1	%				1.1	%		1.6	%				1.6	%		2.1	%					2.5	%

Earnings before Income Taxes		2,365			-		2,365			2,575			-		2,575			2,542			744			3,286
% of net sales		18.9	%				18.9	%		18.6	%				18.6	%		16.3	%					21.1	%

Income Tax Provision		619			-		619			690			-		690			688			191			879
Effective Tax Rate		26.2	%				26.2	%		26.8	%				26.8	%		27.1	%					26.7	%

Net Earnings		1,746			-		1,746			1,885			-		1,885			1,854			553			2,407
% of net sales		14.0	%				14.0	%		13.6	%				13.6	%		11.9	%					15.5	%


Net Earnings Before Special Items							1,746								1,885									2,407
Addback non-cash expenses:
Income Tax Provision							619								690									879
Interest Income							(139	)							(221	)								(389	)
Depreciation							339								261									305
Stock Option Expense							104								94									109
Adjusted EBITDA							2,669								2,709									3,311

Reconciliation of non-GAAP financial measures - continued (in thousands – unaudited):

	26 Weeks Ended August 27, 2023									26 Weeks Ended August 28, 2022
	GAAP			Specials Items			Before Special Items			GAAP			Specials Items		Before Special Items
Selling, General & Administrative Expenses	$	4,468		$	(679	)	$	3,789		$	3,365		$	-	$	3,365
% of net sales		15.9	%					13.5	%		12.6	%				12.6	%

Earnings from Operations		4,444			679			5,123			4,813			-		4,813
% of net sales		15.9	%					18.3	%		18.1	%				18.1	%

Interest Income		463			65			528			354			-		354
% of net sales		1.7	%					1.9	%		1.3	%				1.3	%

Earnings before Income Taxes		4,907			744			5,651			5,167			-		5,167
% of net sales		17.5	%					20.2	%		19.4	%				19.4	%

Income Tax Provision		1,307			191			1,498			1,372			-		1,372
Effective Tax Rate		26.6	%					26.5	%		26.6	%				26.6	%

Net Earnings		3,600			553			4,153			3,795			-		3,795
% of net sales		12.8	%					14.8	%		14.2	%				14.2	%


Net Earnings Before Special Items								4,153								3,795
Addback non-cash expenses:
Income Tax Provision								1,498								1,372
Interest Income								(528	)							(354	)
Depreciation								644								521
Stock Option Expense								213								179
Adjusted EBITDA								5,980								5,513


Contact: Donna D'Amico-Annitto	486 North Oliver Road, Bldg. Z Newton, Kansas 67114 (316) 283-6500

Park Aerospace Corp. Reports Second Quarter Results