Park Electrochemical Reports First Quarter Results

Press Release

Contact: Adrienne Binenstock
Park Electrochemical Corp.
(516) 354-4100
PARK ELECTROCHEMICAL REPORTS FIRST QUARTER RESULTS
LAKE SUCCESS, New York, June 24, 1999…Park Electrochemical Corp. (NYSE-PKE) reported record sales of $104,454,000 for the first quarter ended May 30, 1999 compared to $99,855,000 for the first quarter of last year. Park reported net earnings of $5,698,000 for the first quarter of this year, which compares to $5,535,000 for last year’s first quarter. Park’s earnings per share for the quarter were $.55 basic and $.51 diluted compared to $.48 basic and $.46 diluted for last year’s first quarter.
Brian Shore, Park Electrochemical’s President and CEO, said, “We are generally pleased with our performance in our first quarter. Our business continues to be strong in North America and Asia. Unfortunately, problems persist in the European markets for our products. Our Singapore expansion plans are on track and we expect to bring significant additional capacity and technology on line in our Singapore plant this fall. Our recently announced new management team is in place and we continue to be optimistic about our business and our 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 electronics materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park’s electronic materials business is operated by its “Nelco” group of companies. Park also manufactures specialty adhesive tapes and advanced composite materials for the electronics, aerospace and industrial markets.
The performance table...

For the 13 weeks ended*	5/30/99	5/31/98
Sales	$104,454,000	$99,855,000
Net Earnings	$ 5,698,000	$ 5,535,000
Shares Outstanding:
Basic	10,430,000	11,502,000
Diluted	12,972,000	14,073,000
Earnings Per Share:
Basic	$ .55	$ .48
Diluted	$ .51	$ .46
*unaudited

The comparative balance sheets (in thousands-unaudited):
	5/30/99	2/28/99
ASSETS
Current Assets
Cash & Temporary Investments	$135,485	$139,702
Accounts Receivable, Net	65,113	56,917
Inventories	25,979	25,703
Other Current Assets	7,456	7,874
Total Current Assets	234,033	230,196
Fixed Assets, Net	116,726	118,012
Other Assets	3,381	3,490
Total	$354,140	$351,698

LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$ 29,649	$ 31,019
Accrued Liabilities	24,304	23,154
Income Taxes Payable	8,381	9,183
Total Current Liabilities	62,334	63,356
Long-Term Debt	100,000	100,000
Deferred Income Taxes	9,425	9,501
Deferred Pension & Other Liabilities	13,649	14,195
Total Liabilities	185,408	187,052
Stockholders’ Equity	168,732	164,646
Total	$354,140	$351,698
Equity Per Share	$16.15	$15.79

Detailed operating information (in thousands-unaudited):
	13 Weeks Ended
	5/30/99	5/31/98
Net Sales	$104,454	$99,855
Cost of Sales	85,424	82,484
%	81.8%	82.6%
Gross Profit	19,030	17,371
%	18.2%	17.4%
Operating Expenses	11,665	10,135
%	11.1%	10.2%
Profit from Operations	7,365	7,236
%	7.1%	7.2%
Other Income	232	671
%	0.2%	0.7%
Pre-Tax Earnings	7,597	7,907
%	7.3%	7.9%
Income Tax Provision	1,899	2,372
Effective Tax Rate	25.0%	30.0%
Net Earnings	$ 5,698	$ 5,535
%	5.5%	5.5%

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