Park Aerospace(PKE) - 2025 Q3 - Quarterly Report

Financial Performance - The Company's net sales for the 13 weeks ended December 1, 2024, were $14.4 million, a 23.8$11.6 million in the same period last year [72]. - For the 39 weeks ended December 1, 2024, net sales reached $45.1 million, up 13.7$39.7 million in the prior year [72]. - Net earnings for the 13 weeks ended December 1, 2024, were $1.577 million, a 31.1$1.203 million in the prior year [83]. - The Company's net earnings for the 13 weeks ended December 1, 2024, were $1.6 million, an increase from$1.2 million for the same period in 2023, while net earnings for the 39 weeks were $4.6 million, down from$4.8 million [96]. - Basic and diluted earnings per share for the 13 weeks ended December 1, 2024, were $0.08 and$0.23, respectively, compared to $0.06 and$0.24 for the same period in 2023 [97]. Expenses and Costs - Gross profit margins for the 13 weeks ended December 1, 2024, were 26.6%, down from 27.2% in the same period last year [75]. - Selling, general and administrative expenses increased by 9.9% during the 13 weeks ended December 1, 2024, compared to the prior year's comparable period [88]. - The Company continues to face inflationary pressures on raw materials and supplies, but has been able to pass some of these costs onto customers [78]. Cash Flow and Dividends - Net cash provided by operating activities for the 39 weeks ended December 1, 2024, was $3.7 million, compared to a net cash used of$886,000 for the same period in 2023 [99]. - The Company paid $7.6 million in cash dividends during the 39 weeks ended December 1, 2024, significantly lower than$28.1 million in the same period in 2023, which included a special cash dividend of $20.5 million [101]. Assets and Liabilities - Cash and cash equivalents and marketable securities decreased to$70.0 million as of December 1, 2024, from $77.2 million on March 3, 2024, a change of$7.2 million [98]. - Accounts receivable decreased by 22% at December 1, 2024, compared to March 3, 2024, while inventories increased by 65% during the same period [102]. - The Company's current ratio was 7.6 to 1.0 at December 1, 2024, down from 10.2 to 1.0 at March 3, 2024 [103]. Other Financial Activities - The Company recorded a charge of $1.1 million related to storm damage and repair costs for the 39 weeks ended December 1, 2024 [71]. - Interest income increased by 11.1$4.3 million during the 39 weeks ended December 1, 2024, compared to $2.9 million in the same period in 2023 [104]. - The Company believes its financial resources will be sufficient for continued investment in working capital and general corporate purposes for the foreseeable future [105]. - The Company is not engaged in any off-balance sheet financing arrangements, ensuring its liquidity is not dependent on such methods [108]. Future Expectations - The Company expects all repairs from storm damage to be completed in the first quarter of fiscal year 2026 [71].