Park Electrochemical Corp.

 

 

April 29, 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 April 29, 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 fourth quarter and fiscal year earnings news release dated April 29, 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 Annual Report on Form 10-K for the fiscal year ended March 1, 2015 on or about May 15, 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 April 29, 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 fourth quarter and fiscal year 2015 P&L, which are not specifically addressed in the earnings release. 

 

During the fiscal year 2015 fourth quarter, North American sales were 48% of total sales, European sales were 5% of total sales and Asian sales were 47% of total sales, compared to 48%, 7% and 45%, respectively, for the fourth quarter of the 2014 fiscal year and 50%, 9% and 41%, respectively, for the 2015 fiscal year third quarter.

 

Sales of Park’s high performance (non-FR-4) electronics materials were 91% of total electronics materials sales in the fourth quarter of fiscal year 2015, 90% in the fourth quarter of the 2014 fiscal year and 92% in the 2015 fiscal year third quarter. 

 

Park’s electronics revenues were $27.5 million, or 76% of total sales, in the fourth quarter of the 2015 fiscal year compared to $30.2 million, or 79% of total sales, in the fourth quarter of the 2014 fiscal year and $25.4 million, or 73% of total sales, in the 2015 fiscal year third quarter. Park’s aerospace revenues were $8.8 million, or 24% of total sales, in the fourth quarter of the 2015 fiscal year compared to $8.0 million, or 21% of total sales, in the fourth quarter of the 2014 fiscal year and $9.3 million, or 27% of total sales, in the 2015 fiscal year third quarter.

 

Park’s electronics revenues were $126.4 million, or 78% of total sales, for the 2015 fiscal year compared to $135.4 million, or 82% of total sales, for the 2014 fiscal year. Park’s aerospace revenues were $35.6 million, or 22% of total sales, for the 2015 fiscal year compared to $30.4 million, or 18% of total sales, for the 2014 fiscal year.

 

Investment income, net of interest expense, for the fourth quarter of the 2015 fiscal year was negative $132,000 compared to negative $45,000 in the fourth quarter of the 2014 fiscal year and negative $139,000 in the 2015 fiscal year third quarter.

 

Depreciation and amortization expense for the fourth quarter of the 2015 fiscal year was $906,000 compared to $782,000 in the 2014 fiscal year fourth quarter and $890,000 in the 2015 fiscal year third quarter. Capital expenditures for the fourth quarter of the 2015 fiscal year were $50,000 compared to $344,000 in the 2014 fiscal year fourth quarter and $148,000 in the 2015 fiscal year third quarter. Capital expenditures were $430,000 in the 2015 fiscal year compared to $1.1 million in the prior year.

 

The effective tax rate before special items was 10.5% in the fourth quarter of the 2015 fiscal year compared to 11.3% in the 2014 fiscal year fourth quarter and 10.1% in the 2015 fiscal year third quarter.

 

Gross Profit for the fourth quarter of the 2015 fiscal year was $11.3 million, or 31.1% of sales, compared to $10.5 million, or 27.4% of sales, for the fourth quarter of the prior year and $8.6 million, or 24.8% of sales, for the 2015 fiscal year third quarter. Before special items, Selling, General and Administrative Expenses for the fourth quarter of the 2015 fiscal year were $5.6 million, or 15.4% of sales, compared to $5.5 million, or 14.4% of sales, for the fourth quarter of the prior year and $5.8 million, or 16.6% of sales, for the 2015 fiscal year third quarter. Before special items, Earnings Before Income Taxes for the fourth quarter of the 2015 fiscal year were $5.6 million, or 15.3% of sales, compared to $4.9 million, or 12.9% of sales, for the fourth quarter of the prior year and $2.7 million, or 7.8% of sales, for the 2015 fiscal year third quarter. Before special items, Net Earnings for the fourth quarter of the 2015 fiscal year were $5.0 million, or 13.7% of sales, compared to $4.4 million, or 11.4% of sales, for the fourth quarter of the prior year and $2.4 million, or 7.0% of sales, for the 2015 fiscal year third quarter.

 

For the fourth quarter of the 2015 fiscal year, the top five customers were GE, Sanmina, TTM, Viasystems and Wus, in alphabetical order. The top five customers totaled approximately 37% of total sales during the 2015 fourth quarter. Our top 10 customers totaled approximately 52% of total sales and the top 20 customers totaled approximately 68% of total sales.

 

For the 2015 fiscal year, the top five customers were GE, Sanmina, TTM, Viasystems and Wus, in alphabetical order. The top five customers totaled approximately 35% of total sales during the 2015 fiscal year. Our top 10 customers totaled approximately 53% of total sales and the top 20 customers totaled approximately 69% 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.