Press Release
Contact: Adrienne Binenstock
Park Electrochemical Corp.
(516) 354-4100
PARK ELECTROCHEMICAL REPORTS FISCAL YEAR RESULTS
LAKE SUCCESS, New York, April 26, 1999...Park Electrochemical Corp.
(NYSE-PKE) reported sales of $387,634,000 for the fiscal year ended
February 28, 1999 compared to the previous fiscal year’s sales of
$376,158,000. Park reported earnings for the fiscal year of $15,376,000
compared to $25,250,000 for the previous fiscal year. Park’s earnings per
share for the fiscal year were $1.40 basic and $1.38 on a diluted basis on
average outstanding shares of 10,980,000 and 11,138,000, respectively. This
compares to the prior year’s earnings per share of $2.22 basic and $2.07
diluted on average outstanding shares of 11,353,000 basic and 13,948,000
diluted, respectively.
Park’s sales were $98,141,000 for the fourth quarter ended February 28,
1999 compared to $103,814,000 for last year’s fourth quarter. Park reported
earnings of $5,367,000 for the fourth quarter versus $7,237,000 for the
fourth quarter of last year. On a basic and diluted basis, Park’s earnings
per share were $.52 and $.47, respectively, for the current year’s fourth
quarter compared to $.63 and $.58 per share for the prior year’s fourth
quarter. The tax rate for the quarter ended February 28, 1999 was low due
to the benefit of unusual tax credits. The Company believes a normalized
tax rate would have been approximately 25%. At a tax rate of 25%, diluted
earnings per share would have been $0.43 for the quarter. The average
number of shares outstanding for the current year’s fourth quarter was
10,422,000 basic and 13,014,000 on a diluted basis compared to 11,492,000
basic and 14,118,000 diluted for last year.
Brian Shore, Park’s President and CEO, said, “We are pleased with the
continuing improvement of our business performance in our fourth quarter.
During the fourth quarter, we realized the full impact of the cost
reduction programs implemented during the third quarter. In addition, we
are very pleased to report that our Arizona masslam operation continues to
make meaningful progress under very difficult circumstances. Our 1999
fiscal year was among the most difficult years of our corporate history.
This was as the result of the exit by Delco Electronics from the circuit
board manufacturing business. Although 1999 was far from our best year in
terms of financial performance, I believe it was one of our best years in
terms of the dedication and commitment of our people to overcome the
tremendous adversity which we believe was wrongfully imposed on our
company. Needless to say, I am very proud of our people and the way in
which they performed under fire during our 1999 fiscal year. We continue
to prosecute our lawsuit against Delco Electronics.”
Brian Shore continued, “Our business remains strong in Asia and North
America. We are bringing on a significant amount of additional capacity at
our Singapore operation over the next few months. In addition, we are
currently planning major expansions of our U.S. laminate operations.
Although these U.S. expansions will take approximately two years to
complete, they will enable our company to continue to aggressively grow our
business in North America. Unfortunately, the European market for our
electronic product has weakened over the last six months, and we are in the
process of making adjustments in response to that weakened market.
Overall, however, our business is strong and we feel good about ourselves
as we move into our 2000 fiscal year.”
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 March 1, 1998.
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
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.
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