Park Electrochemical Corp.

 

 

January 8, 2015 Investor Conference Call – Supplementary Financial Information

 

 

The financial and other data contained herein (the “Supplementary Data”) is being provided pursuant to the requirements of Regulation G promulgated by the U.S. Securities and Exchange Commission (the “SEC”).  The Supplementary Data is time-sensitive information and is accurate as of January 8, 2015.  Park Electrochemical Corp. (“Park” or the “Company”) is under no obligation to (and expressly disclaims any such obligation to) update or alter the Supplementary Data whether as a result of new information, future events or otherwise.

 

The Supplementary Data should be read in conjunction with our 2015 fiscal year third quarter earnings news release dated January 8, 2015 and the reports and documents that we file from time to time with the SEC.  In particular, please read our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K that we may file from time to time.  Park currently expects to file its Quarterly Report on Form 10-Q for the third quarter ended November 30, 2014 on or about January 9, 2015.  We make available free of charge on or through our website located at www.parkelectro.com our SEC filings on Forms 10-K, 10-Q and 8-K and any amendments to those filings as soon as reasonably practicable after electronic filing with the SEC.

 

Information to be presented at the January 8, 2015 investor conference call by Matt Farabaugh

 

Certain statements we may make during the course of this discussion which do not relate to historical financial information may be deemed to constitute forward-looking statements.  Any forward-looking statements are subject to various factors that could cause actual results to differ materially from our expectations.  We have set forth in our most recent Annual Report on Form 10-K for the fiscal year ended March 2, 2014 various factors that could affect future results.  Those factors are found in Item 1A and after Item 7 of that Form 10-K. Any forward-looking statements we may make are subject to those factors.

 

I'd like to briefly review some of the items in our third quarter ended November 30, 2014 P&L, which are not specifically addressed in the earnings release. 

 

During the fiscal year 2015 third quarter, North American sales were 50% of total sales, European sales were 9% of total sales and Asian sales were 41% of total sales, compared to 51%, 6% and 43%, respectively, for the third quarter of the 2014 fiscal year and 46%, 6% and 48%, respectively, for the 2015 fiscal year second quarter.

 

Sales of Park’s high performance (non-FR-4) printed circuit materials were 92% of total laminate and prepreg material sales in the third quarter of fiscal year 2015, 89% in the third quarter of the 2014 fiscal year and 92% in the 2015 fiscal year second quarter. 

 

Sales of Park’s electronics materials were $25.4 million, or 73% of total sales, in the third quarter of the 2015 fiscal year compared to $31.5 million, or 79% of total sales, in the third quarter of the 2014 fiscal year and compared to $33.7 million, or 80% of total sales, in the 2015 fiscal year second quarter. Sales of Park’s aerospace materials and parts were $9.3 million, or 27% of total sales, in the third quarter of the 2015 fiscal year compared to $8.2 million, or 21% of total sales, in the third quarter of the 2014 fiscal year and compared to $8.6 million, or 20% of total sales, in the 2015 fiscal year second quarter.

 

Investment income, net of interest expense, for the third quarter of the 2015 fiscal year was negative $139,000 compared to negative $48,000 in the third quarter of the 2014 fiscal year and negative $134,000 in the 2015 fiscal year second quarter.

 

Depreciation and amortization expense for the third quarter of the 2015 fiscal year was $890,000 compared to $1,012,000 in the 2014 fiscal year third quarter and $865,000 in the 2015 fiscal year second quarter. Capital expenditures for the third quarter of the 2015 fiscal year were $148,000 compared to $161,000 in the 2014 fiscal year third quarter and $179,000 in the 2015 fiscal year second quarter.

 

The effective tax rate before special items was 10.1% in the third quarter of the 2015 fiscal year compared to 3.3% in the 2014 fiscal year third quarter and compared to 13.3% in the 2015 fiscal year second quarter.

During the second quarter of the 2015 fiscal year, the Company had no customers that were more than 10% of total sales. The top five customers were GE, ISU Petasys, Sanmina, TTM and Viasystems, in alphabetical order. The top five customers totaled approximately 39% of total sales. Our top 10 customers totaled approximately 53% of total sales and the top 20 customers totaled approximately 67% of total sales.

 

Safe Harbor Statement

 

The Supplementary Data may contain “forward-looking statements,” as defined under the Federal Securities Laws, including the Private Securities Litigation Reform Act of 1995.  Certain portions of the Supplementary Data which do not relate to historical financial information may be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements.  Generally, you can identify forward-looking statements by the use of words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “goal,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions or the negative or other variations thereof.  Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially from Park’s expectations.  Factors that could cause actual events or results to differ materially include but are not limited to general conditions in the electronics and aerospace industries, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various other factors set forth in Item 1A “Risk Factors” and under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended March 2, 2014.  These and other risks may be detailed from time to time in Park’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its fiscal year 2014 Annual Report on Form 10-K and other SEC filings, copies of which may be obtained from http://www.sec.gov/.  Park is under no obligation to (and expressly disclaims any such obligation to) update any of the information contained herein if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.