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8-K - FORM 8-K - PARK ELECTROCHEMICAL CORPk330514_8-k.htm

 

Exhibit 99.1

 

NEWS RELEASE

Contact: Martina Bar Kochva 48 South Service Road
  Melville, NY 11747
  (631) 465-3600 

 

PARK ELECTROCHEMICAL CORP. REPORTS THIRD QUARTER RESULTS

 

Melville, New York, Wednesday, December 19, 2012…..Park Electrochemical Corp. (NYSE – PKE) reported net sales of $41,265,000 for the third quarter ended November 25, 2012 compared to net sales of $47,312,000 for the third quarter ended November 27, 2011. Park’s net sales for the nine months ended November 25, 2012 were $133,741,000 compared to net sales of $149,578,000 for the nine months ended November 27, 2011.

 

Park reported net earnings before special items of $5,109,000 for the third quarter ended November 25, 2012 compared to net earnings of $5,379,000 for the third quarter of last year. During the 2013 fiscal year’s third quarter, the Company recorded additional pre-tax charges of $559,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China and its Park Advanced Composite Materials, Inc. facility located in Waterbury, Connecticut. Accordingly, net earnings for the third quarter ended November 25, 2012 were $4,710,000.

 

For the nine-month period ended November 25, 2012, Park reported net earnings before special items of $15,820,000 compared to net earnings before special items of $19,236,000 for last year’s first nine-month period. The current year nine-month period included pre-tax charges of $3,095,000 primarily related to the facility closures mentioned above. The first nine-month period of the prior fiscal year included other pre-tax income of $1,598,000 relating to the settlement of certain lawsuits. Accordingly, net earnings were $12,889,000 for the nine-month period ended November 25, 2012 compared to net earnings of $20,291,000 for the nine-month period ended November 27, 2011.

 

Park reported basic and diluted earnings per share before special items of $0.25 for the third quarter ended November 25, 2012 compared to basic and diluted earnings per share of $0.26 for last year’s third quarter. Basic and diluted earnings per share were $0.23 for the third quarter ended November 25, 2012.

 

For the nine months ended November 25, 2012, Park reported basic and diluted earnings per share before special items of $0.76 compared to basic and diluted earnings per share before special items of $0.93 for the prior year’s first nine months. Basic and diluted earnings per share were $0.62 for the nine months ended November 25, 2012 compared to basic and diluted earnings per share of $0.98 for the prior year’s nine months ended November 27, 2011.

 

Park reported earnings before income taxes and special items of $6,318,000 for the third quarter ended November 25, 2012 compared to earnings before income taxes of $6,193,000 for the third quarter of last year. Park recorded no special items during the 2012 fiscal year third quarter.

 

The gross profit as a percentage of sales was 30.4% for the third quarter ended November 25, 2012 compared to 27.5% for last year’s third quarter. The Company’s effective tax rate before special items for the third quarter ended November 25, 2012 was 19.1% compared to 13.1% for the prior year’s third quarter.

 

 

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The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EST today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (866) 713-8565 in the United States and Canada and (617) 597-5324 in other countries and the required passcode is 53137379.

 

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EST today through 11:59 p.m. EST on Tuesday, December 25, 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 71097171 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 closure and restructuring 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, 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

 

 

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

 

   13 Weeks Ended   39 Weeks Ended 
   11/25/12   11/27/11   11/25/12   11/27/11 
Sales  $41,265   $47,312   $133,741   $149,578 
                     
Net Earnings before Special Items1  $5,109   $5,379   $15,820   $19,236 
Special Items net of Tax  $(399)  $-   $(2,931)  $1,055 
    Net Earnings  $4,710   $5,379   $12,889   $20,291 
                     
Basic and Diluted Earnings per Share:                    
Basic Earnings before Special Items1  $0.25   $0.26   $0.76   $0.93 
 Special Items  $(0.02)  $-   $(0.14)  $0.05 
      Basic Earnings per Share  $0.23   $0.26   $0.62   $0.98 
                     
Diluted Earnings before Special Items1  $0.25   $0.26   $0.76   $0.93 
 Special Items  $(0.02)  $-   $(0.14)  $0.05 
      Diluted Earnings per Share  $0.23   $0.26   $0.62   $0.98 
                     
Weighted Average Shares Outstanding:                    
 Basic   20,801    20,754    20,799    20,739 
 Diluted   20,803    20,756    20,824    20,784 

               
1 Refer to "Detailed operating information" below for information regarding Special Items.

 

 

Comparative balance sheets (in thousands):

 

   11/25/12   2/26/12 
Assets  (unaudited)     
Current Assets          
  Cash and Marketable Securities  $273,510   $268,785 
  Accounts Receivable, Net   25,057    23,533 
  Inventories   15,899    15,823 
  Other Current Assets   3,706    3,449 
     Total Current Assets   318,172    311,590 
           
Fixed Assets, Net   32,995    38,695 
Other Assets   16,051    15,703 
     Total Assets  $367,218   $365,988 
           
Liabilities and Shareholders' Equity          
Current Liabilities          
  Accounts Payable  $6,331   $8,427 
  Accrued Liabilities   8,697    8,816 
  Income Taxes Payable   1,448    4,198 
     Total Current Liabilities   16,476    21,441 
           
Deferred Income Taxes   1,011    1,062 
Other Liabilities   274    274 
     Total Liabilities   17,761    22,777 
           
Shareholders’ Equity   349,457    343,211 
           
     Total Liabilities and Shareholders' Equity  $367,218   $365,988 
           
Equity per Share  $16.80   $16.50 

 

 

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Detailed operating information (in thousands – unaudited):

 

   13 Weeks Ended
November 25, 2012
   13 Weeks Ended
November  27, 2011
 
   GAAP   Specials Items   Before Special Items   GAAP   Specials Items   Before Special Items 
Net Sales  $41,265        $41,265   $47,312        $47,312 
Cost of Sales   28,725         28,725    34,316         34,316 
    %   69.6%        69.6%   72.5%        72.5%
                               
Gross Profit   12,540    -    12,540    12,996    -    12,996 
    %   30.4%        30.4%   27.5%        27.5%
                               
Selling, General & Administrative Expenses   6,365         6,365    6,991         6,991 
    %   15.4%        15.4%   14.8%        14.8%
                               
Restructuring Charge   559    (559)   -    -         - 
    %   1.4%        0.0%   0.0%        0.0%
                               
Earnings from Operations   5,616    559    6,175    6,005    -    6,005 
    %   13.6%        15.0%   12.7%        12.7%
                               
Other Income   143         143    188    -    188 
    %   0.3%        0.3%   0.4%        0.4%
                               
Earnings before Income Taxes   5,759    559    6,318    6,193    -    6,193 
    %   14.0%        15.3%   13.1%        13.1%
                               
Income Tax Provision   1,049    160    1,209    814    -    814 
  Effective Tax Rate   18.2%        19.1%   13.1%        13.1%
                               
Net Earnings   4,710    399    5,109    5,379    -    5,379 
    %   11.4%        12.4%   11.4%        11.4%

 

   39 Weeks Ended
November 25, 2012
   39 Weeks Ended
November 27, 2011
 
   GAAP   Specials Items   Before Special Items   GAAP   Specials Items   Before Special Items 
Net Sales  $133,741        $133,741   $149,578        $149,578 
Cost of Sales   95,026         95,026    106,077         106,077 
    %   71.1%        71.1%   70.9%        70.9%
                               
Gross Profit   38,715    -    38,715    43,501    -    43,501 
    %   28.9%        28.9%   29.1%        29.1%
                               
Selling, General & Administrative Expenses   20,012         20,012    21,443         21,443 
    %   15.0%        15.0%   14.3%        14.3%
                               
Restructuring Charge   3,095    (3,095)   -    -    -    - 
    %   2.3%        0.0%   0.0%        0.0%
                               
Earnings from Operations   15,608    3,095    18,703    22,058    -    22,058 
    %   11.7%        14.0%   14.7%        14.7%
                               
Other Income   520         520    2,203    (1,598)   605 
    %   0.4%        0.4%   1.5%        0.4%
                               
Earnings before Income Taxes   16,128    3,095    19,223    24,261    (1,598)   22,663 
    %   12.1%        14.4%   16.2%        15.2%
                               
Income Tax Provision   3,239    164    3,403    3,970    (543)   3,427 
  Effective Tax Rate   20.1%        17.7%   16.4%        15.1%
                               
Net Earnings   12,889    2,931    15,820    20,291    (1,055)   19,236 
    %   9.6%        11.8%   13.6%        12.9%

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