Financial Performance - The Company's net sales for the 13 weeks ended August 31, 2025, were $16.4 million, a decrease of 2.0% compared to $16.7 million for the same period in 2024, while net sales for the 26 weeks ended August 31, 2025, increased by 3.6% to $31.8 million from $30.7 million [71][82]. - Gross profit for the 13 weeks ended August 31, 2025, was $5.1 million, representing a 7.5% increase from $4.8 million in the prior year, and for the 26 weeks, gross profit rose by 11.0% to $9.8 million from $8.9 million [72][81]. - Earnings before income taxes increased by 14.9% to $3.2 million for the 13 weeks and by 43.6% to $6.0 million for the 26 weeks ended August 31, 2025, compared to the same periods in 2024 [74][75][81]. - Net earnings for the 13 weeks ended August 31, 2025, were $2.4 million, a 16.4% increase from $2.1 million in the prior year, while net earnings for the 26 weeks rose by 46.6% to $4.5 million from $3.1 million [74][81]. - Basic earnings per share for the 13 weeks ended August 31, 2025 were $0.12, up from $0.10 in the prior year, representing a 20% increase [95]. Cost and Expenses - Selling, general and administrative expenses increased by 6.1% to $2.3 million for the 13 weeks and by 9.9% to $4.6 million for the 26 weeks ended August 31, 2025, compared to the same periods in 2024 [86][87]. - The Company continues to face inflation in costs of raw materials and supplies, but has largely mitigated the impact through pricing adjustments [76]. Cash Flow and Liquidity - Cash and cash equivalents and marketable securities decreased by $7.3 million to $61.6 million as of August 31, 2025, compared to $68.8 million on March 2, 2025 [96]. - Net cash provided by operating activities was $1.0 million for the 26 weeks ended August 31, 2025, a turnaround from a cash outflow of $0.5 million in the same period of 2024 [97]. - The current ratio improved to 17.6 to 1.0 at August 31, 2025, compared to 9.7 to 1.0 at March 2, 2025, indicating stronger liquidity [101]. Shareholder Returns - The Company paid $5.0 million in cash dividends during the 26 weeks ended August 31, 2025, slightly down from $5.1 million in the prior year [99]. - The Company repurchased shares worth $2.2 million during the 26 weeks ended August 31, 2025, compared to $1.9 million in the same period of 2024 [102]. Tax and Other Charges - The Company's effective tax rate for the 13 weeks ended August 31, 2025 was 25.7%, a decrease from 26.6% in the same period of the previous year [93]. - The Company recorded a charge of $1.1 million related to storm damage and repair costs in the 26 weeks ended September 1, 2024, with no corresponding charges in the current period [70]. Strategic Partnerships - The Company has entered into a Business Partner Agreement with ArianeGroup SAS, advancing €4,587,000 for future purchases of RAYCARB C2®B NG product, which is critical for rocket and missile systems [79]. Future Outlook - The Company believes its financial resources will be sufficient for continued investment in working capital and general corporate purposes for the foreseeable future [103].

Core Viewpoint - The analyst has maintained a "Hold" rating on Park Aerospace Corp. (NYSE: PKE) since October of the previous year, indicating a cautious stance on the stock's performance [1]. Company Analysis - The focus of the analysis is on small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies for a broader market perspective [1]. Investment Position - The analyst holds a beneficial long position in Park Aerospace shares, indicating a personal investment interest in the company [2].

Core Viewpoint - The analyst has maintained a "Hold" rating on Park Aerospace (NYSE: PKE) since October of the previous year, indicating a cautious stance on the company's stock performance [1]. Company Analysis - Park Aerospace is primarily focused on producing objective, data-driven research, particularly on small- to mid-cap companies, which are often overlooked by many investors [1]. - The analyst occasionally reviews large-cap companies to provide a broader perspective on the equity markets [1]. Investment Position - The analyst holds a beneficial long position in Park Aerospace shares, either through stock ownership, options, or other derivatives [2].

Financial Performance - Sales for fiscal Q2 2026 reached $16,003,810, slightly exceeding the previous estimate of $15 million to $16 million [2] - Gross profit was $5,001,160, resulting in a gross margin of 31.2%, despite challenges from low-margin C2B fabric sales and new plant expenses [3] - Adjusted EBITDA was $3,401,000, at the top end of the prior estimate of $3 million to $3.4 million, leading to an adjusted EBITDA margin of 20.8% [3] C2B Fabric Sales Impact - C2B fabric sales amounted to $1.65 million, which negatively impacted gross margin due to low markup; however, $415,000 in higher-margin ablative materials partially offset this effect [4] - Customer requalification of C2B fabric has resumed normal production on 90% of specifications, with the remaining 10% under testing expected to take another nine to twelve months [5][10] Production and Inventory Management - Sales closely matched production value during the quarter, resulting in no negative impact on the bottom line from inventory imbalances [4][30] - Missed shipments totaled $510,000 due to customer certification and testing delays, rather than international shipping issues [32] Tariffs and Pricing - The net tariff impact was minimal at $1,700, with costs passed through to customers, and future exposure is expected to remain limited [6] - A 6.5% weighted average price increase for the MRAS LTA became effective January 1 [6] Sales Forecasts and Outlook - Park Aerospace now forecasts GE Aerospace program sales for fiscal 2026 to be between $27.5 million and $29 million, down from a previous estimate of $28 million to $32 million [7] - For fiscal Q3 2026, sales are estimated to be between $16.5 million and $17.5 million, with adjusted EBITDA projected at $3.7 million to $4.1 million [7][63] Capital Expenditure and Cash Position - Estimated capital expenditure for new manufacturing facilities increased to $40 million to $45 million due to added line requirements [8] - The company reported $61.6 million in cash and marketable securities at quarter-end after a $4.9 million transition tax payment [8][75] Strategic Developments - Management emphasized the importance of proprietary materials in missile defense and aerospace programs, highlighting a sole-source position on the Patriot missile system's ablative materials [9] - The company plans to expand U.S. manufacturing capacity for C2B fabric, with ongoing investments through partnerships and new plant expenditures [9][11] Industry Context - The defense industry is experiencing increased collaboration between OEMs and suppliers to meet robust underlying demand, indicating a shift in operational dynamics [9][66] - Long-term sales targets for fiscal 2026 are expected to exceed $70 million, driven by growth in both defense and commercial aerospace programs [9][65]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Sales for Q2 were $16.381 million, with a gross profit of $5.116 million and a gross margin of 31.2% [5][6] - Adjusted EBITDA was $3.401 million, resulting in an adjusted EBITDA margin of 20.8% [6] - The company exceeded its sales estimate of $15 million-$16 million and EBITDA estimate of $3 million-$3.4 million for Q2 [6][7] Business Line Data and Key Metrics Changes - Sales of C2B fabric to defense industry customers amounted to $1.65 million in Q2, with a small markup affecting margins [8][9] - The sales ratio of fabric to materials was skewed, impacting margins negatively, with a more typical ratio expected to be 40/60 [9][10] - The company reported a significant increase in missed shipments totaling $510,000 due to customer certification and testing delays [15] Market Data and Key Metrics Changes - The company highlighted its involvement in various aerospace market segments, with a focus on niche military aerospace programs [18][19] - The commercial aerospace market is expected to accelerate, while military programs are anticipated to see significant growth [18] Company Strategy and Development Direction - The company is focusing on increasing manufacturing capacity in partnership with ArianeGroup to meet rising demand for Raycarb C2B fabric [41][42] - The strategy emphasizes customer satisfaction through flexibility, urgency, and responsiveness, which is central to the company's operational approach [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting a shift in OEM attitudes towards ramping up production and collaborating with suppliers [40] - The company expects to exceed $70 million in revenue for fiscal 2026, reflecting a positive outlook for the aerospace industry [39][40] Other Important Information - The company has maintained a strong cash position with $61.6 million in cash and marketable securities at the end of Q2 [50] - The company has a long history of uninterrupted cash dividends, totaling over $606 million since fiscal 2005 [50][51] Q&A Session Summary Question: What is the expected impact of tariffs going forward? - Management indicated minimal impact from tariffs, as costs are being passed on to customers, and controls have been implemented to manage tariff-related expenses [45] Question: How is the company addressing customer satisfaction? - The company is committed to making customers love them by being proactive in understanding customer needs and providing exceptional service [47][48]

Financial Data and Key Metrics Changes - Sales for Q2 were $16.381 million, with a gross profit of $5.116 million and a gross margin of 31.2% [5][6] - Adjusted EBITDA was $3.401 million, resulting in an adjusted EBITDA margin of 20.8% [6] - The company exceeded its sales estimate of $15 million to $16 million, coming in slightly above the range [6][7] Business Line Data and Key Metrics Changes - The company sold $1.65 million of C2B fabric to defense industry customers, with a small markup, indicating stockpiling by customers [8][9] - Sales of materials manufactured with C2B fabric amounted to $415,000, with higher margins compared to fabric sales [9][10] - The sales value of production matched sales in Q2, indicating no negative impact on the bottom line from inventory issues [14] Market Data and Key Metrics Changes - The company highlighted its involvement in various aerospace market segments, with a focus on military and niche markets [18][19] - The A320neo family aircraft program is experiencing a backlog, with Airbus targeting a delivery rate of 75 aircraft per month by 2027 [31][26] - The company is sole source qualified for several GE Aerospace engine programs, with over 8,000 firm LEAP-1A engine orders [27][28] Company Strategy and Development Direction - The company is focusing on increasing manufacturing capacity in partnership with ArianeGroup to meet rising demand for C2B fabric [41][42] - The strategy emphasizes customer satisfaction through flexibility and responsiveness, which is central to the company's operational approach [47][48] - The company is positioned to benefit from increased defense spending and demand for missile systems due to geopolitical tensions [53][54] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is becoming more collaborative in addressing supply chain issues, which is expected to positively impact future performance [40] - The company anticipates a revenue of over $70 million for fiscal 2026, reflecting a recovery from pandemic-related impacts [39][40] - Management expressed optimism about returning to normal production levels and potential upside in coming quarters [12] Other Important Information - The company reported $61.6 million in cash and marketable securities at the end of Q2, with no long-term debt [49][50] - The company has a history of uninterrupted cash dividends, totaling over $606 million since fiscal 2005 [50][51] - A new agreement with ArianeGroup involves advancing $5 million for future purchases of C2B fabric, aimed at increasing manufacturing capacity [41][42] Q&A Session Summary Question: What is the expected impact of tariffs going forward? - Management indicated minimal impact from tariffs, as costs are being passed on to customers [45] Question: How is the company addressing customer satisfaction? - The company is implementing a strategy focused on flexibility and responsiveness to enhance customer relationships [47][48] Question: What is the outlook for the A320neo family aircraft program? - The company noted that Airbus is ramping up production to meet a significant backlog, which is expected to benefit Park Aerospace [31][26]

Financial Data and Key Metrics Changes - Sales for Q2 were reported at $16.381 million, with a gross profit of $5.116 million, resulting in a gross margin of 31.2% [5][6] - Adjusted EBITDA was $3.401 million, leading to an adjusted EBITDA margin of 20.8% [6] - The company exceeded its previous sales estimate of $15 million to $16 million, coming in slightly above the top of the EBITDA estimate range of $3 million to $3.4 million [6][8] Business Line Data and Key Metrics Changes - Sales of C2B fabric to defense industry customers amounted to $1.65 million in Q2, with a small markup impacting overall margins [9][10] - The company sold $415,000 worth of materials manufactured with C2B fabric, which have higher margins compared to fabric sales [10] - The ratio of fabric sales to materials sales was skewed, leading to lower margins than typical [11] Market Data and Key Metrics Changes - The company highlighted ongoing issues with customer certification and testing delays, which resulted in $510,000 in missed shipments during Q2 [16] - The impact of tariffs was minimal in Q2, with the net effect being negligible due to the ability to pass costs onto customers [17][44] Company Strategy and Development Direction - The company is focusing on niche military aerospace programs, particularly missile systems, due to increased demand driven by geopolitical tensions [52] - A partnership with ArianeGroup aims to increase manufacturing capacity for C2B fabric to meet rising demand, particularly for the Patriot missile system [40][57] - The company is committed to enhancing customer relationships through a strategy centered on flexibility, urgency, and responsiveness [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to normal production levels and anticipated upside in future quarters following recent approvals [12][13] - The company expects to exceed $70 million in revenue for fiscal 2026, reflecting a more collaborative approach within the industry to meet demand [38][39] - The management noted that the industry is experiencing a shift in attitude towards ramping up production and working closely with suppliers [39] Other Important Information - The company reported $61.6 million in cash and marketable securities at the end of Q2, down from $65.6 million at the end of Q1 [48] - The company has a long history of paying dividends, totaling over $606 million since fiscal 2005 [48][49] Q&A Session Summary Question: What is the expected impact of tariffs going forward? - Management indicated that the impact of tariffs has been minimal and that they have implemented controls to manage costs effectively [44] Question: How is the company addressing customer satisfaction? - The company emphasized its strategy to enhance customer relationships by being proactive and responsive to customer needs [46][47]

Financial Performance - FY2026 Q2 - Sales for FY2026 Q2 were $16381 thousand, compared to $16709 thousand in FY25 Q2 and $15400 thousand in FY26 Q1[10] - Gross profit for FY2026 Q2 was $5116 thousand, with a gross margin of 31.2%, compared to $4757 thousand and 28.5% in FY25 Q2, and $4718 thousand and 30.6% in FY26 Q1[10] - Adjusted EBITDA for FY2026 Q2 was $3401 thousand, representing a margin of 20.8%, compared to $3204 thousand and 19.2% in FY25 Q2, and $2963 thousand and 19.2% in FY26 Q1[10] - The company reported $61.6 million in cash and marketable securities as of the end of FY2026 Q2[66] Key Agreements and Partnerships - Park entered into a Business Partner Agreement with ArianeGroup, with $1.65 million of C2B fabric sold in FY2026 Q2[13, 57] - Park will advance Ariane €4587 thousand against future purchases of C2B fabric, with the first installment of €1376 thousand paid in FY2026 Q1[57] - Park is partnering with ArianeGroup on a study related to increasing C2B fabric manufacturing capacity, with Park's contribution estimated at $410 thousand as a special item in FY2026 Q3[59] - Park recently entered into a new LTA with GE Aerospace for CYs 2025 through 2030, with revenue expected to ramp to approximately $5 million per year[61] Market and Program Updates - Airbus has a backlog of 7179 A320neo Aircraft Family firm orders as of June 30, 2025[34] - The CFM LEAP-1A engine has a 64.7% market share of firm engine orders for the A320neo Family of Aircraft as of June 30, 2025[35] - Lockheed's Missile and Fire Control Division received a $9.8 billion contract from the US Army for 1970 PAC-3 Patriot Missiles[77]

[News Release Overview](index=1&type=section&id=News%20Release%20Overview) Park Aerospace Corp. announced its second quarter fiscal year 2026 financial results for the period ended August 31, 2025 [Company Information & Reporting Period](index=1&type=section&id=1.1%20Company%20Information%20%26%20Reporting%20Period) Park Aerospace Corp. reported its second quarter fiscal year 2026 financial results for the period ended August 31, 2025 - Company Name: **Park Aerospace Corp. (NYSE-PKE)**[1](index=1&type=chunk) - Reporting Period: Second Quarter Fiscal Year 2026 (ended August 31, 2025)[1](index=1&type=chunk) [Conference Call Announcement](index=1&type=section&id=1.2%20Conference%20Call%20Announcement) The company announced a conference call on October 9, 2025, to discuss financial results, offering live webcast, presentation materials, and replay services - A conference call to discuss financial results and other important information will be held on **October 9, 2025, at 5:00 PM Eastern Time**[1](index=1&type=chunk)[8](index=8&type=chunk) - Live audio webcast and presentation materials are available on the company's website and a designated link[1](index=1&type=chunk)[10](index=10&type=chunk) - A replay of the conference call will be available from **8:00 PM Eastern Time on October 9, 2025, until 11:59 PM Eastern Time on October 16, 2025**[9](index=9&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section provides an overview of Park Aerospace Corp.'s financial performance for the second quarter and first half of fiscal year 2026, including key metrics and non-GAAP adjustments [Second Quarter (Q2 FY2026) Performance](index=1&type=section&id=2.1%20Second%20Quarter%20%28Q2%20FY2026%29%20Performance) Park Aerospace Corp. reported a slight decrease in net sales but growth in net earnings, net earnings before special items, and adjusted EBITDA, alongside improved EPS for Q2 FY2026 Second Quarter Financial Performance (in thousands of USD) | Metric | Q2 FY2026 (Ended Aug 31, 2025) | Q2 FY2025 (Ended Sep 1, 2024) | Year-over-Year Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net Sales | $16,381 | $16,709 | -1.96% | | Net Earnings | $2,404 | $2,066 | +16.36% | | Net Earnings Before Special Items | $2,404 | $2,092 | +14.92% | | Adjusted EBITDA | $3,401 | $3,206 | +6.08% | | Basic and Diluted EPS | $0.12 | $0.10 | +20.00% | | Basic and Diluted EPS Before Special Items | $0.12 | $0.10 | +20.00% | [Six Months (H1 FY2026) Performance](index=1&type=section&id=2.2%20Six%20Months%20%28H1%20FY2026%29%20Performance) For the first half of fiscal year 2026, the company achieved growth in net sales, net earnings, and adjusted EBITDA, with a significant increase in earnings per share Six-Month Financial Performance (in thousands of USD) | Metric | H1 FY2026 (Ended Aug 31, 2025) | H1 FY2025 (Ended Sep 1, 2024) | Year-over-Year Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net Sales | $31,781 | $30,679 | +3.59% | | Net Earnings | $4,484 | $3,059 | +46.60% | | Net Earnings Before Special Items | $4,484 | $3,873 | +15.78% | | Adjusted EBITDA | $6,364 | $5,816 | +9.42% | | Basic EPS | $0.23 | $0.15 | +53.33% | | Diluted EPS | $0.22 | $0.15 | +46.67% | | Basic EPS Before Special Items | $0.23 | $0.19 | +21.05% | | Diluted EPS Before Special Items | $0.22 | $0.19 | +15.79% | [Special Items and Non-GAAP Measures](index=1&type=section&id=2.3%20Special%20Items%20and%20Non-GAAP%20Measures) The company reported no special items in FY2026, contrasting with storm damage expenses in FY2025, and utilizes non-GAAP measures to assess ongoing operational performance - The company reported **no special items** for the second quarter and first six months of fiscal year 2026[5](index=5&type=chunk) - In the second quarter and first six months of fiscal year 2025, the company recorded pre-tax charges of **$46 thousand** and **$1.098 million**, respectively, related to storm damage at its Newton, Kansas facility[5](index=5&type=chunk) - The company discloses non-GAAP measures, including **Adjusted EBITDA** and operating results before special items, to help shareholders and other readers evaluate its operating performance, as special items are not part of its ongoing normal business operations[11](index=11&type=chunk) [Company Business Overview](index=2&type=section&id=Company%20Business%20Overview) Park Aerospace Corp. specializes in developing and manufacturing advanced composite materials and components for the global aerospace market, focusing on complex, small-scale projects [Products and Services](index=2&type=section&id=3.1%20Products%20and%20Services) Park Aerospace Corp. develops and manufactures advanced composite materials, including film adhesives and lightning strike protection, and designs composite parts and structures for the global aerospace market - The company develops and manufactures **solution and hot-melt advanced composite materials** for the global aerospace market[12](index=12&type=chunk) - Advanced composite materials include **film adhesives (Aeroadhere®)** and **lightning strike protection materials (Electroglide®)**[12](index=12&type=chunk) - Composite materials are offered for both **hand lay-up and automated fiber placement (AFP)** manufacturing applications[12](index=12&type=chunk) [Target Markets and Strategy](index=2&type=section&id=3.2%20Target%20Markets%20and%20Strategy) The company's materials and components are widely used across various aerospace sectors, with a strategic focus on undertaking complex, small-scale, or challenging projects others are unwilling or unable to complete - Advanced composite materials are used in the manufacture of primary and secondary structures for **jet engines, large and regional transport aircraft, military aircraft, unmanned aerial vehicles (UAVs), business jets, general aviation aircraft, and rotorcraft**[12](index=12&type=chunk) - Specialty ablative materials for **rocket motors and nozzles**, and specially designed materials for **radome applications** are also provided[12](index=12&type=chunk) - The company designs and manufactures **composite parts, structures, and assemblies**, as well as **low-volume tooling** for the aerospace industry, including its proprietary **SigmaStrut™ and AlphaStrut™ product lines**[12](index=12&type=chunk) - The company's objective is to accomplish tasks that others are **unwilling or unable to complete**, or that are too difficult, too small, or too tedious[12](index=12&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) This section presents comprehensive financial statements, including performance tables, condensed balance sheets, operating statements, and non-GAAP reconciliation for various reporting periods [Performance Table (GAAP & Non-GAAP)](index=3&type=section&id=4.1%20Performance%20Table%20%28GAAP%20%26%20Non-GAAP%29) This section provides a detailed performance table, including net sales, net earnings (GAAP and before special items), EPS, and weighted average shares outstanding for 13-week and 26-week periods Performance Table (GAAP & Non-GAAP) (in thousands of USD, except per share data) | Metric | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 13 Weeks Ended Jun 1, 2025 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $16,381 | $16,709 | $15,400 | $31,781 | $30,679 | | Net Earnings Before Special Items | $2,404 | $2,092 | $2,080 | $4,484 | $3,873 | | Storm Damage Expense (Net of Tax) | - | $(46) | - | - | $(1,098) | | Income Tax Impact of Pre-Tax Special Items | - | $20 | - | - | $284 | | Net Earnings | $2,404 | $2,066 | $2,080 | $4,484 | $3,059 | | Basic EPS | $0.12 | $0.10 | $0.10 | $0.23 | $0.15 | | Diluted EPS | $0.12 | $0.10 | $0.10 | $0.22 | $0.15 | | Weighted Average Shares Outstanding (Basic) | 19,875 | 20,216 | 19,919 | 19,897 | 20,234 | | Weighted Average Shares Outstanding (Diluted) | 19,986 | 20,291 | 19,968 | 19,977 | 20,331 | [Condensed Comparative Balance Sheets](index=4&type=section&id=4.2%20Condensed%20Comparative%20Balance%20Sheets) The balance sheet indicates a decrease in total assets and total liabilities, with a slight reduction in stockholders' equity from March 2, 2025, to August 31, 2025 Condensed Comparative Balance Sheets (in thousands of USD, except per share data) | Metric | Aug 31, 2025 (Unaudited) | Mar 2, 2025 | Change | | :----------------------------------- | :-------------------------- | :------------ | :------- | | Cash and Marketable Securities | $61,553 | $68,834 | $(7,281) | | Total Current Assets | $83,306 | $90,294 | $(6,988) | | Total Assets | $116,448 | $122,108 | $(5,660) | | Total Current Liabilities | $4,741 | $9,261 | $(4,520) | | Total Liabilities | $10,653 | $14,954 | $(4,301) | | Stockholders' Equity | $105,795 | $107,154 | $(1,359) | | Equity Per Share | $5.31 | $5.36 | $(0.05) | [Condensed Comparative Statements of Operations](index=5&type=section&id=4.3%20Condensed%20Comparative%20Statements%20of%20Operations) This section details the company's operating performance, showing gross profit and net earnings as a percentage of net sales for 13-week and 26-week periods, highlighting improved profitability Condensed Comparative Statements of Operations (in thousands of USD, except percentages) | Metric | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $16,381 | $16,709 | $31,781 | $30,679 | | Cost of Sales | $11,265 | $11,952 | $21,947 | $21,823 | | Gross Profit | $5,116 | $4,757 | $9,834 | $8,856 | | Gross Profit as a % of Net Sales | 31.2% | 28.5% | 30.9% | 28.9% | | Selling, General and Administrative Expenses | $2,271 | $2,140 | $4,570 | $4,157 | | Selling, General and Administrative Expenses as a % of Net Sales | 13.9% | 12.8% | 14.4% | 13.5% | | Operating Earnings | $2,845 | $2,617 | $5,264 | $4,699 | | Net Earnings | $2,404 | $2,066 | $4,484 | $3,059 | | Net Earnings as a % of Net Sales | 14.7% | 12.4% | 14.1% | 10.0% | [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=4.4%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a reconciliation from GAAP net earnings to Adjusted EBITDA, detailing adjustments for income tax, interest, depreciation, stock-based compensation, and special items for 13-week and 26-week periods Reconciliation of Non-GAAP Financial Measures (in thousands of USD) | Adjustment Item | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | GAAP Net Earnings | $2,404 | $2,066 | $4,484 | $3,059 | | Income Tax Expense | $831 | $750 | $1,525 | $1,126 | | Interest and Other Income | $(390) | $(245) | $(745) | $(584) | | Depreciation | $455 | $488 | $911 | $927 | | Stock-Based Compensation Expense | $101 | $101 | $189 | $190 | | Storm Damage Expense | - | $46 | - | $1,098 | | **Adjusted EBITDA** | **$3,401** | **$3,206** | **$6,364** | **$5,816** |