Welcome!

News Feed Item

Park Electrochemical Corp. Reports Third Quarter Results

Park Electrochemical Corp. (NYSE:PKE) reported net sales of $39,678,000 for the third quarter ended December 1, 2013 compared to net sales of $41,265,000 for the third quarter ended November 25, 2012. Park's net sales for the nine months ended December 1, 2013 were $127,613,000 compared to net sales of $133,741,000 for the nine months ended November 25, 2012.

Park reported net earnings of $4,721,000 for the third quarter ended December 1, 2013 compared to net earnings before special items of $5,109,000 for the third quarter of last fiscal year. During the third quarter ended November 25, 2012, the Company recorded pre-tax restructuring 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. The Company incurred no additional charges in connection with these closures in the third quarter ended December 1, 2013. Accordingly, net earnings were $4,710,000 for the third quarter ended November 25, 2012.

For the nine-month period ended December 1, 2013, Park reported net earnings before special items of $15,833,000 compared to net earnings before special items of $15,820,000 for last fiscal year’s nine-month comparable period. The nine-month period ended December 1, 2013 included a tax benefit of $2,181,000 in connection with a tax refund related to amended federal income tax returns and pre-tax restructuring charges of $319,000 related to the Zhuhai facility closure mentioned above. The nine-month period of the prior fiscal year included pre-tax restructuring charges of $3,095,000 primarily related to the facility closures mentioned above. Accordingly, net earnings were $17,695,000 for the nine-month period ended December 1, 2013 compared to net earnings of $12,889,000 for the nine-month period ended November 25, 2012.

Park reported basic and diluted earnings per share of $0.23 for the third quarter ended December 1, 2013 compared to basic and diluted earnings per share before special items of $0.25 for last year’s third quarter. The basic and diluted earnings per share after special items were $0.23 for the third quarter ended November 25, 2012.

Park reported basic and diluted earnings per share before special items of $0.76 for each of the nine-month periods ended December 1, 2013 and November 25, 2012. Basic and diluted earnings per share were $0.85 for the nine months ended December 1, 2013 compared to basic and diluted earnings per share of $0.62 for the prior year’s first nine months.

The effective tax rate for the third quarter ended December 1, 2013 was 3.3% compared to 18.2% in the third quarter of last fiscal year. The lower tax rate in the third quarter ended December 1, 2013 was due to higher portions of taxable income in jurisdictions with lower effective income tax rates and tax incentives associated with the Company’s operations in Singapore.

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 (800) 688-0836 in the United States and Canada and (617) 614-4072 in other countries and the required passcode is 30855831.

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 Thursday, January 16, 2014. 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 37416065 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 tax benefits and restructuring charges. 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.

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

                       
13 Weeks Ended 39 Weeks Ended
 
12/1/13   11/25/12   9/1/13 12/1/13   11/25/12  
Sales $ 39,678 $ 41,265 $ 44,497 $ 127,613 $ 133,741
 
Net Earnings before Special Items1 $ 4,721 $ 5,109 $ 5,983 $ 15,833 $ 15,820
Special Items net of Tax $ - $ (399 ) $ 2,062 $ 1,862 $ (2,931 )
Net Earnings $ 4,721 $ 4,710   $ 8,045 $ 17,695 $ 12,889  
 
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1 $ 0.23 $ 0.25 $ 0.29 $ 0.76 $ 0.76
Special Items $ - $ (0.02 ) $ 0.10 $ 0.09 $ (0.14 )
Basic Earnings per Share $ 0.23 $ 0.23   $ 0.39 $ 0.85 $ 0.62  
 
Diluted Earnings before Special Items1 $ 0.23 $ 0.25 $ 0.29 $ 0.76 $ 0.76
Special Items $ - $ (0.02 ) $ 0.10 $ 0.09 $ (0.14 )
Diluted Earnings per Share $ 0.23 $ 0.23   $ 0.39 $ 0.85 $ 0.62  
 
Weighted Average Shares Outstanding:
Basic 20,857 20,801 20,836 20,840 20,799
Diluted 20,917 20,803 20,852 20,871 20,824
 
1 Refer to "Detailed operating information" below for information regarding Special Items.
 

Comparative balance sheets (in thousands):

         
12/1/13 3/3/2013

Assets

(unaudited)
Current Assets
Cash and Marketable Securities $ 291,260 $ 275,216
Accounts Receivable, Net 22,852 25,878
Inventories 14,633 12,918
Other Current Assets   6,421   6,662
Total Current Assets 335,166 320,674
 
Fixed Assets, Net 30,154 32,187
Other Assets   16,823   16,797
Total Assets $ 382,143 $ 369,658
 

Liabilities and Shareholders' Equity

Current Liabilities
Accounts Payable $ 6,224 $ 6,485
Accrued Liabilities 6,679 6,016
Income Taxes Payable   2,691   4,177
Total Current Liabilities 15,594 16,678
 
Long-Term Debt 52,000 52,000
Deferred Income Taxes 761 812
Other Liabilities   246   246
Total Liabilities 68,601 69,736
 
Shareholders’ Equity   313,542   299,922
 
Total Liabilities and Shareholders' Equity $ 382,143 $ 369,658
 
Equity per Share $ 15.02 $ 14.40
 

Detailed operating information (in thousands – unaudited):

           

13 Weeks Ended
December 1, 2013

13 Weeks Ended
November 25, 2012

13 Weeks Ended
September 1, 2013

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

Net Sales $ 39,678 $ 39,678   $ 41,265 $ 41,265   $ 44,497 $ 44,497
Cost of Sales 28,640 28,640 28,725 28,725 30,876 30,876

   %

72.2 % 72.2 % 69.6 % 69.6 % 69.4 % 69.4 %
 
Gross Profit 11,038 11,038 12,540 12,540 13,621 13,621

   %

27.8 % 27.8 % 30.4 % 30.4 % 30.6 % 30.6 %
 

Selling, General & Administrative

Expenses

6,106 6,106 6,365 6,365 6,041 6,041

   %

15.4 % 15.4 % 15.4 % 15.4 % 13.6 % 13.6 %
 
Restructuring Charge - - - 559 (559 ) - 119 (119 ) -

   %

0.0 % 0.0 % 1.4 % 0.0 % 0.3 % 0.0 %
 
Earnings from Operations 4,932 - 4,932 5,616 559 6,175 7,461 119 7,580

   %

12.4 % 12.4 % 13.6 % 15.0 % 16.8 % 17.0 %
 
Interest Income 139 139 143 - 143 77 77

   %

0.4 % 0.4 % 0.3 % 0.3 % 0.2 % 0.2 %
 
Interest Expense 187 187 - - 185 185

   %

0.5 % 0.5 % 0.0 % 0.0 % 0.4 % 0.4 %
 
Net Interest (Expense) Income (48 ) (48 ) 143 143 (108 ) (108 )

   %

-0.1 % -0.1 % 0.3 % 0.3 % -0.2 % -0.2 %
 
Earnings before Income Taxes 4,884 - 4,884 5,759 559 6,318 7,353 119 7,472

   %

12.3 % 12.3 % 14.0 % 15.3 % 16.5 % 16.8 %
 
Income Tax Provision 163 - 163 1,049 160 1,209 (692 ) 2,181 1,489
Effective Tax Rate 3.3 % 3.3 % 18.2 % 19.1 % -9.4 % 19.9 %
 
Net Earnings 4,721 - 4,721 4,710 399 5,109 8,045 (2,062 ) 5,983

   %

11.9 % 11.9 % 11.4 % 12.4 % 18.1 % 13.4 %
 

Detailed operating information (in thousands – unaudited), continued:

       

39 Weeks Ended
December 1, 2013

39 Weeks Ended
November 25, 2012

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

Net Sales $ 127,613 $ 127,613   $ 133,741 $ 133,741
Cost of Sales 89,963 89,963 95,026 95,026

   %

70.5 % 70.5 % 71.1 % 71.1 %
 
Gross Profit 37,650 37,650 38,715 38,715

   %

29.5 % 29.5 % 28.9 % 28.9 %
 

Selling, General & Administrative

Expenses

18,703 18,703 20,012 20,012

   %

14.7 % 14.7 % 15.0 % 15.0 %
 
Restructuring Charge 319 (319 ) - 3,095 (3,095 ) -

   %

0.2 % 0.0 % 2.3 % 0.0 %
 
Earnings from Operations 18,628 319 18,947 15,608 3,095 18,703

   %

14.6 % 14.8 % 11.7 % 14.0 %
 
Interest Income 284 284 520 520

   %

0.2 % 0.2 % 0.4 % 0.4 %
 
Interest Expense 543 543 - -

   %

0.4 % 0.4 % 0.0 % 0.0 %
 
Net Interest (Expense) Income (259 ) (259 ) 520 520

   %

-0.2 % -0.2 % 0.4 % 0.4 %
 
Earnings before Income Taxes 18,369 319 18,688 16,128 3,095 19,223

   %

14.4 % 14.6 % 12.1 % 14.4 %
 
Income Tax Provision 674 2,181 2,855 3,239 164 3,403
Effective Tax Rate 3.7 % 15.3 % 20.1 % 17.7 %
 
Net Earnings 17,695 (1,862 ) 15,833 12,889 2,931 15,820

   %

13.9 % 12.4 % 9.6 % 11.8 %

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Quickly find the root cause of complex database problems slowing down your applications. Up to 88% of all application performance issues are related to the database. DPA’s unique response time analysis shows you exactly what needs fixing - in four clicks or less. Optimize performance anywhere. Database Performance Analyzer monitors on-premises, on VMware®, and in the Cloud, including Amazon® AWS and Azure™ virtual machines.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...