Park Aerospace(US:PKE)2026-01-13 21:03Financial Performance - The Company's net sales for the 13 weeks ended November 30, 2025, were $17.3 million, representing a 20.3% increase from $14.4 million in the prior year, while net sales for the 39 weeks were $49.1 million, an 8.9% increase from $45.1 million [72][84]. - Gross profit for the 13 weeks ended November 30, 2025, was $5.9 million, a 54.2% increase from $3.8 million in the prior year, and for the 39 weeks, it was $15.7 million, up 24.1% from $12.7 million [83][91]. - Earnings before income taxes increased by 86.7% to $4.0 million for the 13 weeks and by 58.1% to $10.0 million for the 39 weeks ended November 30, 2025 [75][76]. - Net earnings for the 13 weeks ended November 30, 2025, were $3.0 million, an 87.1% increase from $1.6 million in the prior year, and for the 39 weeks, net earnings were $7.4 million, up 60.4% from $4.6 million [96]. Profitability Metrics - Gross profit margins were 34.1% for the 13 weeks and 32.0% for the 39 weeks ended November 30, 2025, compared to 26.6% and 28.1% in the prior year, respectively [74][87]. - Basic and diluted earnings per share for the 39 weeks ended November 30, 2025, were $0.37, an increase of 60.87% compared to $0.23 for the same period in 2024 [97]. Expenses and Income - Selling, general and administrative expenses increased by 14.0% to $2.3 million for the 13 weeks and by 11.2% to $6.8 million for the 39 weeks ended November 30, 2025 [88][89]. - Interest income increased by 18.3% to $343,000 for the 13 weeks and by 24.5% to $1.1 million for the 39 weeks ended November 30, 2025, primarily due to tax refunds and foreign exchange gains [92]. - The effective tax rates for the 13 weeks and 39 weeks ended November 30, 2025, were 26.0% and 25.6%, respectively, compared to 26.2% and 26.7% in the prior year [95]. Cash Flow and Liquidity - Net cash provided by operating activities for the 39 weeks ended November 30, 2025, was $3.748 million, a decrease of 18.2% from $4.581 million in the prior year [99]. - Cash and cash equivalents and marketable securities totaled $63.558 million as of November 30, 2025, down by $5.276 million from $68.834 million on March 2, 2025 [98]. - The current ratio improved to 15.8 to 1.0 at November 30, 2025, compared to 9.7 to 1.0 at March 2, 2025 [103]. Shareholder Returns - The company repurchased shares worth $2.2 million during the 39 weeks ended November 30, 2025, down from $4.3 million in the same period in 2024 [102]. - The company paid $7.5 million in cash dividends during the 39-week period ended November 30, 2025, compared to $7.6 million in the prior year [102]. Future Outlook - The company expects to file a registration statement to offer up to $50 million in shares of common stock under an Equity Distribution Agreement [106]. - 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 liquidity is not dependent on such methods [109]. Other Considerations - The Company recorded a storm damage charge of $1.1 million in the prior year, with no corresponding charges in the current year, positively impacting earnings [77]. - The company continues to face inflation in raw material costs but has largely mitigated its impact through pricing adjustments [78]. - Accounts payable increased by 30% at November 30, 2025, compared to March 2, 2025, primarily due to timing of vendor payments [101].