Park Aerospace(US:PKE)2025-10-14 13:15Financial 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].