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 “SEC”). The
Supplementary Data is time-sensitive information and is accurate as of
The Supplementary Data should be
read in conjunction with our 2010 fiscal year second quarter earnings news release
dated September 25, 2009 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 second quarter ended
Information to be presented at
the September 25, 2009 investor conference call by
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 would first like to summarize the financial information
included in the news release for the second quarter ended
Net
sales for the 2010 fiscal year second quarter ended
Net earnings for the 2010 fiscal year second quarter were $4.8 million compared to $4.9 million for the prior year’s second quarter. Park’s net earnings for the first six months were $7.8 million compared to net earnings of $12.5 million for last year’s first six months.
Park reported basic and diluted earnings per share for the 2010 fiscal year second quarter and first six months of $0.23 and $0.38, respectively, compared to basic and diluted earnings per share of $0.24 and $0.61 for the prior year second quarter and six-month period.
Now
I'd like to briefly review some of the other significant items in our second
quarter P&L:
Comparing the current fiscal
year’s second quarter sales to last year’s second quarter sales, Park’s sales
volumes decreased 21% in
Sales of high temperature laminate and prepreg materials comprised 100% of total laminate and prepreg sales during the second quarter of both fiscal year 2010 and fiscal year 2009.
Sales of Park’s high performance (non-FR-4) printed circuit materials, which are a subset of high temperature printed circuit materials, were 64% of total laminate and prepreg material sales in the second quarter of fiscal year 2010, 58% in the second quarter of the prior year and 67% in the first quarter of fiscal year 2010.
Sales of Park’s advanced
composite materials, parts and assemblies were $6.8 million in the second
quarter of fiscal year 2010, $6.6 million in the second quarter of the prior
year and $6.2 million in the first quarter of fiscal year 2010 and comprised 16%
of total sales in the second quarter of fiscal year 2010, 12% in the second
quarter of the prior year and 17% in the first quarter of fiscal year 2010.
The gross profit percentage for the second quarter of fiscal 2010 was 25.7% compared to 19.7% for the prior year second quarter. Selling, general and administrative expenses were 12.2% of net sales for the 2010 fiscal year second quarter compared to 11.1% for the prior year’s comparable period.
Investment income for the second quarter was $205,000 or 0.5% of net sales compared to $1,692,000 or 3.0% of net sales for the second quarter of 2009. The decrease in investment income was primarily attributable to decreases in prevailing interest rates.
As
a result, pre-tax operating profit was 14.0% of net sales for the 2010 fiscal year
second quarter compared to 11.6% for the prior year second quarter.
The
effective tax rate was 20.1% for the 2010 fiscal year second quarter compared
to an effective tax rate 23.75% for the prior fiscal year second quarter.
Turning to Park’s balance sheet,
cash and marketable securities were $233.7 million at
Stockholders'
equity was $300.2 million at
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 industry, 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 1, 2009. 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 2009 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.