Park Electrochemical Corp.
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 “
The Supplementary Data should be
read in conjunction with our 2014 fiscal year first quarter earnings news
release dated June 26, 2013 and the reports and documents that we file from
time to time with the
Information to be presented at the June 26, 2013 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
I'd like to
briefly review some of the items in our first quarter ended
During the fiscal year 2014 first quarter, North American sales were 48% of total sales, European sales were 9% of total sales and Asian sales were 43% of total sales, compared to 47%, 11% and 42%, respectively, for the first quarter of the prior fiscal year and 49%, 9% and 42%, respectively, for the 2013 fiscal year fourth quarter.
Sales of Park’s high performance (non-FR-4) printed circuit materials were 86% of total laminate and prepreg material sales in the first quarter of fiscal year 2014, 81% in the first quarter of the prior fiscal year and 82% in the fourth quarter of fiscal year 2013.
Sales of Park’s aerospace materials and parts were $6.7 million in the first quarter of the 2014 fiscal year compared to $7.6 million in the first quarter of the prior fiscal year and compared to $7.0 million in the fourth quarter, a 14-week period, of the 2013 fiscal year.
Investment income, net of interest expense, for the first quarter of the 2014 fiscal year was negative $103,000 compared to $198,000 in the first quarter of the prior fiscal year and $113,000 in the fourth quarter of the 2013 fiscal year.
Copper had a $106,000 unfavorable impact on pre-tax earnings in the first quarter of fiscal year 2014 compared to the first quarter of the prior fiscal year, but a favorable impact of $74,000 compared to the fourth quarter of fiscal year 2013.
The effective tax rate before special items was 19.0% in the first quarter of the 2014 fiscal year compared to 19.3% in the first quarter of the prior fiscal year and compared to 15.7% in the fourth quarter of the 2013 fiscal year.
During the first quarter of the 2014 fiscal year, the Company had one customer that was more than 10% of total sales, which was TTM. The four remaining customers rounding out the top five were ISUPETASYS, Sanmina, Shennan Circuits and WUS, in alphabetical order. The top five customers totaled approximately 48% of total sales. Our top 10 customers totaled approximately 64% of total sales and the top 20 customers totaled approximately 75% of total sales.
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 3, 2013. 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 2013 Annual Report on Form 10-K and other