Press Release

 

Contact: Adrienne Binenstock
Park Electrochemical Corp.
(516) 354-4100

PARK ELECTROCHEMICAL CORP. REPORTS
THIRD QUARTER SALES PROFITS

LAKE SUCCESS, New York, December 22, 1999…Park Electrochemical Corp. (NYSE-PKE) reported sales of $108,183,000 for the third quarter ended November 28, 1999 compared to $103,290,000 for the third quarter of last year. Park's sales for the first nine months were $320,366,000 compared to last year's first nine months sales of $289,493,000.

Park reported earnings of $5,790,000 for the third quarter compared to $4,249,000 for last year's third quarter. Earnings for the first nine months were $17,535,000 compared to $10,009,000 for last year's first nine months.

Park's earnings per share for the third quarter were $.55 basic and $.51 diluted versus $.41 per share basic and $.40 per share diluted for last year's third quarter. Park's earnings per share for the nine months were $1.67 basic and $1.55 diluted compared to $.90 per share basic and $.89 per share diluted for last year's first nine months.

Brian Shore, Park's President and CEO, said, "We are not completely satisfied with our performance in our third quarter. Our third quarter performance was adversely affected by significant operating inefficiencies caused by running our manufacturing facilities at well in excess of their designed manufacturing capacity levels. In addition, our overall performance was adversely affected by less than satisfactory performance of certain of our business units, as well as less than satisfactory management of the integration of a small acquisition which was closed in our second fiscal quarter. The difficulty associated with that integration is now largely behind us. Our "underperforming" business units are currently receiving a high level of attention, as we believe that, in the challenging world in which we operate, all of our business units must consistently perform well. Unfortunately, we will continue to live with the inefficiencies caused by the overutilization of our manufacturing facilities until our major U.S. expansion program begins to come on line."

Brian Shore continued, "Our major expansion in Singapore will be completed in the fourth quarter, at which point our Asian operations will have at least U.S.$100,000,000 of manufacturing capacity. Our U.S. expansion plans continue on budget and on schedule as well. Further, we are very pleased with the results we are seeing from our new product effort, and we believe this effort will continue to pay dividends in the future."

Certain portions of this press release 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. Such factors 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, and the various factors set forth 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 February 28, 1999.

Park Electrochemical Corp. is a leading designer and producer of advanced electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park's electronic materials business operates under the "Nelco" name. Park also manufactures specialty adhesive tapes and advanced composite materials for the electronics, aerospace and industrial markets.

Additional corporate information is available on the World Wide Web at www.parkelectro.com.

The performance table...

For the 13 weeks ended*
11/28/99

11/29/98

Net Sales
$108,183,000
$103,290,000
Net Earnings
$ 5,790,000
$ 4,249,000
Shares Outstanding:
  Basic
10,546,000
10,483,000
  Diluted
13,221,000
12,941,000
Earnings Per Share:
  Basic
$ .55
$ .41
  Diluted
$ .51
$ .40

For the 39 weeks ended*
11/28/99
11/29/98
Net Sales
$320,366,000
$289,493,000
Net Earnings
$ 17,535,000
$ 10,009,000
Shares Outstanding:
  Basic
10,488,000
11,166,000
  Diluted
13,096,000
11,302,000
Earnings Per Share:
  Basic
$1.67
$ .90
  Diluted
$1.55
$ .89
        *unaudited

The comparative balance sheets (in thousands-unaudited):
 
11/28/99
2/28/99
ASSETS    
Current Assets
Cash & Temporary Investments
$135,767
$139,702
Accounts Receivable, Net
66,802
56,917
Inventories
29,603
25,703
Other Current Assets
8,397
7,874
Total Current Assets
240,569
230,196
Fixed Assets, Net
123,493
118,012
Other Assets
3,340
3,490
Total
$367,402

$351,698

 
LIABILITIES & STOCKHOLDERS' EQUITY    
Current Liabilities
Accounts Payable
$ 31,103
$ 31,019
Accrued Liabilities
26,445
23,154
Income Taxes Payable
6,261
9,183
Total Current Liabilities
63,809
63,356
Long-Term Debt
100,000
100,000
Deferred Income Taxes
10,360
9,501
Deferred Pension Liability & Other
13,661
14,195
Total Liabilities
187,830
187,052
Stockholders' Equity
179,572
164,646
Total
$367,402
$351,698
Equity Per Share
$17.00
$15.79


Detailed operating information (in thousands-unaudited):
 
13 Weeks Ended
39 Weeks Ended
 
11/28/99
11/29/98
11/28/99
11/29/98
Net Sales
$108,183
$103,290
$320,366
$289,493
Cost of Sales
89,479
87,294
263,214
247,133
%
82.7%
84.5%
82.2%
85.4%
Gross Profit
18,704
15,996
57,152
42,360
%
17.3%
15.5%
17.8%
14.6%
Operating Expenses
11,273
10,991
34,398
30,786
%
10.4%
10.7%
10.7%
10.6%
Profit from Operations
7,431
5,005
22,754
11,574
%
6.9%
4.8%
7.1%
4.0%
Other Income (Net)
289
395
626
1,771
%
.2%
.4%
.2%
.6%
Pre-Tax Earnings
7,720
5,400
23,380
13,345
%
7.1%
5.2%
7.3%
4.6%
Income Tax Provision
1,930
1,151
5,845
3,336
Effective Tax Rate
25.0%
21.3%
25.0%
25.0%
Net Earnings
$ 5,790
$ 4,249
$ 17,535
$ 10,009
%
5.4%
4.1%
5.5%
3.5%

 

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Park Electrochemical Corporation5 Dakota DriveLake SuccessNY11042
(516)354-4100Fax: 354-4128

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