Park Aerospace(US:PKE)2021-05-13 23:11Impact of COVID-19 - The COVID-19 Pandemic has significantly impacted global passenger air travel, leading to production rate cuts for many commercial aerospace programs supported by the company[12]. Financial Performance - The company reported that 27.9%, 48.2%, and 42.8% of total worldwide net sales were to affiliate and non-affiliate subtier suppliers of General Electric Company in fiscal years 2021, 2020, and 2019, respectively[30]. - As of April 26, 2021, the company's backlog was $21,326,751, an increase of 16.7% from $18,935,709 on April 26, 2020[45]. Business Operations - The company completed the sale of its Electronics Business for an aggregate purchase price of $145 million in cash, with results reported as discontinued operations[14]. - The company is expanding its manufacturing facilities in Newton, Kansas, with a 90,000 square feet expansion that will double the size of the existing facilities[35]. - The company has achieved NADCAP accreditation for both non-metallic materials manufacturing and testing, and composite structures manufacturing, making it one of the few facilities globally with such accreditation[40]. - The company provides low-volume tooling in connection with its manufacture and sale of composite structures and assemblies[28]. - The company has implemented work from home policies at its New York office but has since reverted to normal operations[12]. Research and Development - The company focuses on developing proprietary resin formulations for aerospace composite materials, utilizing modified epoxies, phenolics, polyesters, cyanate esters, and polyimides[27]. - The manufacturing process for composite materials is capital intensive, requiring sophisticated equipment and tight process controls[36]. - The company continues to work on determining acceptable alternatives for several key raw materials used in its composite materials[41]. Environmental Compliance - The company believes its composite material products significantly reduce fuel consumption and carbon emissions compared to aluminum-crafted parts, contributing to economic savings for aircraft users[52]. - The company is currently in substantial compliance with environmental regulations and does not anticipate significant capital expenditures for environmental control facilities in the near future[53]. Financial Management - The company does not use derivative financial instruments in its investment portfolio, managing a high-quality fixed income portfolio with a maximum weighted maturity of less than one year[190]. - The company is exposed to fluctuations in raw material costs but generally passes these costs through to customers, without currently using hedging strategies[191]. Workforce - The company had 106 employees as of February 28, 2021, emphasizing the importance of workforce skills and integrity in its operations[48].