PARK AEROSPACE CORP. FY2025 Q2 Investor Conference Call October 15, 2024 ***Celebrating Park's 70th Anniversary*** Forward Looking Disclaimer This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Park's expectations regarding revenues, Adjusted EBITDA, EBIT, and gro ...

Financial Data and Key Metrics Changes - For Q2 2025, the company reported sales of $16.7 million, gross profit of $4 million, and EBITDA of $3.2 million, slightly exceeding previous sales estimates of $15.9 million to $16.4 million and within the EBITDA estimate range of $3 million to $3.3 million [4][6][27] - The gross margin for Q2 was reported at 28.5%, impacted by approximately 2% due to depreciation expenses related to a new production facility [6][8] Business Line Data and Key Metrics Changes - Sales from the ArianeGroup RAYCARB product amounted to approximately $2.2 million in Q2, while ablative material sales were only $750,000, indicating a shift towards lower-margin products [5][6] - The company faced $600,000 in missed shipments due to international shipment issues and supply chain challenges [7] Market Data and Key Metrics Changes - The aerospace industry is currently facing significant supply chain challenges, affecting overall market sentiment and operational efficiency [28][29] - Airbus has pushed back its goal for achieving a delivery rate of 75 A320neo aircraft per month from 2026 to 2027 due to ongoing supply chain issues, particularly with engine availability [18][19] Company Strategy and Development Direction - The company is focused on ramping up its new production facility to meet future demand, referred to as the "Juggernaut," which is expected to significantly increase sales [7][30] - Park Aerospace is pursuing additional manufacturing lines and partnerships to support critical defense programs, indicating a strategic focus on expanding capabilities in high-demand sectors [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the current state of the aerospace industry, highlighting ongoing supply chain issues that continue to impact production and sales forecasts [28][29] - The company remains optimistic about future sales opportunities, particularly with the GE Aerospace programs, despite acknowledging the risks associated with supply chain limitations [27][30] Other Important Information - The company has a strong cash position with $72 million in cash and no long-term debt, allowing for strategic investments and share buybacks [46] - A new license agreement for hypersonic missile programs has been established, indicating potential growth in defense-related revenues [33] Q&A Session Summary Question: Share repurchase strategy - The management was commended for being judicious in share repurchases, avoiding overpaying for stock [51] Question: Automation in new facilities - Inquiry about the potential disadvantages of not incorporating automation in the new facility was raised, with acknowledgment of the strong workforce culture [52]

Financial Performance - Company reported net sales of $16,709,000 for the second quarter of the 2025 fiscal year, an increase from $12,481,000 in the same quarter of the previous year and $13,970,000 in the first quarter of the 2025 fiscal year [2] - Net earnings for the second quarter were $2,066,000, compared to $1,746,000 for the second quarter of the 2024 fiscal year and $993,000 for the first quarter of the 2025 fiscal year [2][3] - Adjusted EBITDA for the second quarter was $3,206,000, up from $2,669,000 in the second quarter of the previous year and $2,610,000 in the first quarter of the 2025 fiscal year [4] Earnings Per Share - Basic and diluted earnings per share for the second quarter were $0.10, compared to $0.09 for the second quarter of the previous year and $0.05 for the first quarter of the 2025 fiscal year [6] - For the first six months of the 2025 fiscal year, basic and diluted earnings per share were $0.15, down from $0.18 in the same period of the previous year [7] Special Items and Adjustments - The company recorded pre-tax charges of $46,000 and $1,098,000 related to storm damage during the second quarter and first six months, respectively [5] - Net earnings before special items for the second quarter were $2,092,000, compared to $1,746,000 for the second quarter of the previous year [3] Revenue Growth - Net sales for the first six months of the 2025 fiscal year were $30,679,000, compared to $28,032,000 for the same period in the previous year [2] - Gross profit for the second quarter was $4,757,000, representing 28.5% of net sales, compared to 32.7% in the previous year [17] Company Overview - Company develops and manufactures advanced composite materials for the aerospace industry, including film adhesives and lightning strike protection materials [12] - Target markets include jet engines, transport aircraft, military aircraft, and specialty applications for rocket motors and spacecraft [12]

NEWTON, Kan., Oct. 11, 2024 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE - PKE) announced that it plans to release its financial results for its 2025 fiscal year second quarter ended September 1, 2024 after the New York Stock Exchange closes on Tuesday, October 15, 2024. The Company will conduct a conference call to discuss such results at 5:00 p.m. EDT on the same day. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407- ...

Company Overview - Park Aerospace Corp. develops and manufactures advanced composite materials for the global aerospace markets, including film adhesives and lightning strike protection materials [2] - The company's products are utilized in various applications such as jet engines, transport aircraft, military aircraft, UAVs, business jets, and rocket motors [2] - Park Aerospace aims to tackle projects that others find too difficult or unappealing, focusing on niche markets and specialized applications [2] Leadership Announcement - John Jamieson has been elected as the Senior Vice President of Project Management, reporting to the President and COO, Mark Esquivel [1] - Brian Shore, Chairman and CEO, emphasized Jamieson's experience and ability to drive important projects to completion, addressing the company's resource and bandwidth limitations [3] John Jamieson's Background - John Jamieson previously served as the Chief Operating Officer of Active Dynamics Group and held various roles in supply chain and manufacturing at Park Aerospace and other companies [4] - He has a Bachelor's Degree in Mechanical Engineering from James Watt College in the UK [4]

Financial Performance - The Company's total net sales for the 13 weeks ended June 2, 2024, were $14.0 million, a decrease of 10.3% from $15.6 million for the same period in 2023, primarily due to production and shipping disruptions caused by storm damage [10]. - The Company reported net earnings of $993,000 for the 13 weeks ended June 2, 2024, compared to $1.854 million for the same period in 2023 [40]. - Total comprehensive earnings for the 13 weeks ended June 2, 2024, were $1.216 million, down from $2.570 million in the same period in 2023 [40]. - Net earnings for the 13 weeks ended June 2, 2024, were $993,000, a decrease from $1,854,000 for the same period in 2023, representing a decline of approximately 46.4% [42]. - Earnings from operations before income taxes decreased by 46.1% to $1.37 million compared to $2.54 million for the same period last year [100]. - Net earnings fell by 46.4% to $993,000, down from $1.85 million in the previous year [100]. - The Company incurred a storm damage charge of $1.05 million during the 13 weeks ended June 2, 2024 [100]. - Gross profit for the 13 weeks ended June 2, 2024, was $4,099,000, compared to $4,833,000 in the same period last year, reflecting a gross margin decrease [65]. - Gross profit margin decreased to 29.3% from 31.1% year-over-year, primarily due to lower sales volume and higher costs for raw materials and labor [101]. Cash Flow and Dividends - Cash dividends paid in the 13-week period ended June 2, 2024, amounted to $2.5 million, a significant decrease from $23.0 million in the same period in 2023 [12]. - The company reported a net cash used in operating activities of $423,000 for the 13 weeks ended June 2, 2024, compared to a net cash provided of $117,000 in the prior year [42]. - The company experienced a negative operating cash flow of $423,000 during the 13 weeks ended June 2, 2024, compared to a positive cash flow of $117,000 in the same period last year [164]. - The company reported a decrease in cash flows from financing activities, totaling $2,532,000 for the period, compared to $24,699,000 in the previous year [42]. Assets and Liabilities - Total assets as of June 2, 2024, were $129.428 million, down from $132.309 million as of March 3, 2024 [25]. - Total liabilities decreased to $17.741 million as of June 2, 2024, compared to $19.395 million as of March 3, 2024 [25]. - The Company’s cash and cash equivalents decreased to $4.081 million as of June 2, 2024, from $6.567 million as of March 3, 2024 [25]. - Accounts receivable decreased to $11.386 million as of June 2, 2024, from $12.381 million as of March 3, 2024 [25]. - The balance of accumulated deficit increased to $46,913,000 as of June 2, 2024, up from $42,694,000 as of February 26, 2023 [41]. - The company’s inventories increased to $8.312 million as of June 2, 2024, compared to $6.404 million as of March 3, 2024 [25]. - The Company’s current ratio improved to 12.3 to 1.0 at June 2, 2024, compared to 10.2 to 1.0 at March 3, 2024 [163]. Operational Disruptions - The Company expected an additional $1.8 million in sales that did not ship due to operational disruptions from the storm [10]. - The company incurred a non-cash storm damage charge of $887,000 during the period, impacting overall earnings [42]. - The Company recorded a storm damage charge of $1,052,000 due to damage from a storm on May 19, 2024 [87]. - The Company expects to recover all costs and damages incurred from the storm in excess of a $2.5 million deductible under its insurance policy [117]. - The Company expects to recover all costs and damages related to wind damage in excess of a $2.5 million deductible under its insurance policy [133]. - The Company anticipates that $1.8 million of sales delayed due to storm-related issues will be delivered in the second quarter ending September 1, 2024 [132]. - The company is subject to risks from severe weather events that may disrupt operations [183]. Shareholder Information - The company reported a total of 1,278,901 shares purchased under the share purchase authorization announced on May 23, 2022 [184]. - The company is authorized to purchase its shares from time to time on the open market or in privately negotiated transactions [174]. Compliance and Controls - The principal executive officer and principal financial officer have certified compliance with the Sarbanes-Oxley Act of 2002 [190]. - The company has implemented disclosure controls and procedures to manage market risk [170]. - There were no significant changes in internal control over financial reporting noted in the latest filings [171]. Other Information - The company has not disclosed any new strategies or market expansions in the recent reports [182]. - The company has not reported any new product developments or technological advancements in the latest filings [182]. - The future compensation expense to be recognized for options outstanding at June 2, 2024, is $578,000, expected to be recognized over a weighted average vesting period of 1.24 years [57]. - Selling, general and administrative expenses decreased by 22.9% to $2.02 million from $2.62 million in the prior year [100]. - Selling, general and administrative expenses were 14.4% of sales for the 13 weeks ended June 2, 2024, down from 16.8% in the prior year, mainly due to reduced activist shareholder defense costs [130]. - Interest and other income increased by 4.6% to $339,000 compared to $324,000 in the previous year [107]. - The effective tax rate for the 13 weeks ended June 2, 2024, was 27.5%, slightly higher than the 27.1% in the prior year [113]. - Potentially dilutive securities not included in the diluted earnings per share calculation were 0 for the 13 weeks ended June 2, 2024, compared to 157,000 for the same period in 2023 [83]. - The company has a long-term contract with a significant customer, which does not guarantee quantities but is based on an order forecast updated periodically [99].

Park Aerospace Corp. (NYSE:PKE) Q1 2025 Earnings Conference Call July 16, 2024 5:00 PM ET Company Participants Brian Shore - Chairman and Chief Executive Officer Operator Hello. Good afternoon. My name is Alicia and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace First Quarter Fiscal Year 2025 Earnings Release Conference Call and Investor Presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, ...

Financial Performance - Net sales for the 2025 fiscal year first quarter were $13,970,000, a decrease from $15,551,000 in the 2024 fiscal year first quarter and $16,333,000 in the 2024 fiscal year fourth quarter[4] - Net earnings for the 2025 fiscal year first quarter were $993,000, compared to $1,854,000 in the 2024 fiscal year first quarter and $2,670,000 in the 2024 fiscal year fourth quarter[4] - Adjusted EBITDA for the 2025 fiscal year first quarter was $2,610,000, down from $3,311,000 in the 2024 fiscal year first quarter and $3,201,000 in the 2024 fiscal year fourth quarter[5] - Basic earnings per share for the 2025 fiscal year first quarter were $0.05, down from $0.09 in the 2024 fiscal year first quarter and $0.13 in the 2024 fiscal year fourth quarter[2] - Adjusted EBITDA for Q1 2025 was $2.61 million, compared to $3.31 million in Q1 2024 and $3.20 million in Q4 2024[19] - Basic and diluted earnings per share for Q1 2025 were $0.05, compared to $0.09 in Q1 2024 and $0.13 in Q4 2024[20] - Net sales for Q1 2025 were $13.97 million, a decrease from $15.55 million in Q1 2024 and $16.33 million in Q4 2024[22] - Gross profit for Q1 2025 was $4.10 million, representing 29.3% of net sales, compared to 31.1% in Q1 2024 and 27.3% in Q4 2024[22] - Earnings from operations for Q1 2025 were $2.08 million, compared to $2.22 million in Q1 2024 and $2.57 million in Q4 2024[22] - Net earnings for Q1 2025 were $993,000, or 7.1% of net sales, compared to $1.85 million (11.9%) in Q1 2024 and $2.67 million (16.3%) in Q4 2024[22] Expenses and Charges - The company recorded a $1,052,000 pre-tax charge related to storm damage to its facilities in Newton, Kansas during the 2025 fiscal year[10] - In the 2024 fiscal year first quarter, the company recorded $570,000 of pre-tax activist shareholder defense costs and $109,000 for stock option modifications[10] - Selling, General & Administrative Expenses for Q1 2025 were $2.02 million, or 14.4% of net sales, compared to 16.8% in Q1 2024 and 11.5% in Q4 2024[22] - The company incurred a storm damage charge of $1.05 million in Q1 2025, which impacted earnings from operations[22] Tax and Interest - The company recognized a tax benefit of $657,000 in the 2024 fiscal year fourth quarter due to reductions in uncertain tax positions[10] - Interest income for Q1 2025 was $339,000, slightly higher than $324,000 in Q1 2024 and $329,000 in Q4 2024[22] - Income tax provision for Q1 2025 was $376,000, compared to $688,000 in Q1 2024 and $230,000 in Q4 2024[22] Balance Sheet - Total current assets as of June 2, 2024, were $97,296,000, slightly down from $98,845,000 as of March 3, 2024[7] - Total liabilities as of June 2, 2024, were $17,741,000, a decrease from $19,395,000 as of March 3, 2024[7] - Shareholders' equity as of June 2, 2024, was $111,687,000, compared to $112,914,000 as of March 3, 2024[7]

Core Viewpoint - Park Aerospace Corp. reported a decline in net sales and earnings for the first quarter of the 2025 fiscal year compared to the previous year, impacted by various special charges and operational challenges [1][4][17]. Financial Performance - Net sales for the first quarter of the 2025 fiscal year were $13,970,000, down from $15,551,000 in the first quarter of 2024 and $16,333,000 in the fourth quarter of 2024 [1][20]. - Net earnings for the first quarter of 2025 were $993,000, compared to $1,854,000 in the first quarter of 2024 and $2,670,000 in the fourth quarter of 2024 [1][16]. - Adjusted EBITDA for the first quarter of 2025 was $2,610,000, a decrease from $3,311,000 in the first quarter of 2024 and $3,201,000 in the fourth quarter of 2024 [5][19]. Special Charges and Adjustments - The company recorded a pre-tax charge of $1,052,000 related to storm damage during the first quarter of 2025 [2][10]. - In the first quarter of 2024, the company had pre-tax activist shareholder defense costs of $570,000 and other special charges totaling $184,000 [2][19]. - Net earnings before special items for the first quarter of 2025 were $1,781,000, down from $2,407,000 in the first quarter of 2024 [16][19]. Earnings Per Share - Basic and diluted earnings per share for the first quarter of 2025 were $0.05, compared to $0.09 in the first quarter of 2024 and $0.13 in the fourth quarter of 2024 [17][19]. - Basic and diluted earnings per share before special items were $0.09 for the first quarter of 2025, down from $0.12 in the first quarter of 2024 [17][19]. Operational Insights - The company develops and manufactures advanced composite materials for the aerospace industry, including film adhesives and lightning strike protection materials [8]. - Park Aerospace's products are utilized in various aircraft types, including military and civilian aircraft, as well as in rocket motors and nozzles [8].

Financial Performance - Park Aerospace Corp. reported net sales of $13,970,000 for the first quarter of the 2025 fiscal year, a decrease from $15,551,000 in the same quarter of the 2024 fiscal year and $16,333,000 in the fourth quarter of the 2024 fiscal year [1] - Net earnings for the first quarter of the 2025 fiscal year were $993,000, down from $1,854,000 in the first quarter of the 2024 fiscal year and $2,670,000 in the fourth quarter of the 2024 fiscal year [1] - Basic and diluted earnings per share were $0.05 for the first quarter of the 2025 fiscal year, compared to $0.09 for the first quarter of the 2024 fiscal year and $0.13 for the fourth quarter of the 2024 fiscal year [2] Adjusted Earnings - Net earnings before special items for the first quarter of the 2025 fiscal year were $1,781,000, compared to $2,407,000 for the first quarter of the 2024 fiscal year and $2,308,000 for the fourth quarter of the 2024 fiscal year [8] - Adjusted EBITDA for the first quarter of the 2025 fiscal year was $2,610,000, down from $3,311,000 in the first quarter of the 2024 fiscal year and $3,201,000 in the fourth quarter of the 2024 fiscal year [21] Special Items - The company recorded a pre-tax charge of $1,052,000 related to storm damage during the first quarter of the 2025 fiscal year [15] - In the first quarter of the 2024 fiscal year, the company recorded $570,000 in pre-tax activist shareholder defense costs, $65,000 in losses on sales of investments, and $109,000 for the modification of previously granted stock options [15] Operational Insights - The gross profit margin for the first quarter of the 2025 fiscal year was 29.3%, compared to 31.1% in the first quarter of the 2024 fiscal year and 27.3% in the fourth quarter of the 2024 fiscal year [27] - Selling, general, and administrative expenses were $2,017,000, representing 14.4% of net sales for the first quarter of the 2025 fiscal year, compared to 16.8% in the first quarter of the 2024 fiscal year [27] Company Overview - Park Aerospace Corp. develops and manufactures advanced composite materials for the global aerospace markets, including film adhesives and lightning strike protection materials [23] - The company's products are used in various applications, including jet engines, military aircraft, and space vehicles, with a focus on challenging projects that others may avoid [23]