Welcome!

Microsoft Cloud Authors: Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White, Yeshim Deniz

News Feed Item

Park Electrochemical Corp. Reports Third Quarter Results

Park Electrochemical Corp. (NYSE:PKE) reported net sales of $39,678,000 for the third quarter ended December 1, 2013 compared to net sales of $41,265,000 for the third quarter ended November 25, 2012. Park's net sales for the nine months ended December 1, 2013 were $127,613,000 compared to net sales of $133,741,000 for the nine months ended November 25, 2012.

Park reported net earnings of $4,721,000 for the third quarter ended December 1, 2013 compared to net earnings before special items of $5,109,000 for the third quarter of last fiscal year. During the third quarter ended November 25, 2012, the Company recorded pre-tax restructuring charges of $559,000 in connection with the closure of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China and its Park Advanced Composite Materials, Inc. facility located in Waterbury, Connecticut. The Company incurred no additional charges in connection with these closures in the third quarter ended December 1, 2013. Accordingly, net earnings were $4,710,000 for the third quarter ended November 25, 2012.

For the nine-month period ended December 1, 2013, Park reported net earnings before special items of $15,833,000 compared to net earnings before special items of $15,820,000 for last fiscal year’s nine-month comparable period. The nine-month period ended December 1, 2013 included a tax benefit of $2,181,000 in connection with a tax refund related to amended federal income tax returns and pre-tax restructuring charges of $319,000 related to the Zhuhai facility closure mentioned above. The nine-month period of the prior fiscal year included pre-tax restructuring charges of $3,095,000 primarily related to the facility closures mentioned above. Accordingly, net earnings were $17,695,000 for the nine-month period ended December 1, 2013 compared to net earnings of $12,889,000 for the nine-month period ended November 25, 2012.

Park reported basic and diluted earnings per share of $0.23 for the third quarter ended December 1, 2013 compared to basic and diluted earnings per share before special items of $0.25 for last year’s third quarter. The basic and diluted earnings per share after special items were $0.23 for the third quarter ended November 25, 2012.

Park reported basic and diluted earnings per share before special items of $0.76 for each of the nine-month periods ended December 1, 2013 and November 25, 2012. Basic and diluted earnings per share were $0.85 for the nine months ended December 1, 2013 compared to basic and diluted earnings per share of $0.62 for the prior year’s first nine months.

The effective tax rate for the third quarter ended December 1, 2013 was 3.3% compared to 18.2% in the third quarter of last fiscal year. The lower tax rate in the third quarter ended December 1, 2013 was due to higher portions of taxable income in jurisdictions with lower effective income tax rates and tax incentives associated with the Company’s operations in Singapore.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EST today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (800) 688-0836 in the United States and Canada and (617) 614-4072 in other countries and the required passcode is 30855831.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EST today through 11:59 p.m. EST on Thursday, January 16, 2014. The conference call replay can be accessed by dialing (888) 286-8010 in the United States and Canada and (617) 801-6888 in other countries and entering passcode 37416065 or on the Company's web site at www.parkelectro.com/investor/investor.html.

Any additional material financial or statistical data disclosed in the conference call will also be available at the time of the conference call on the Company's web site at www.parkelectro.com/investor/investor.html.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its financial results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as tax benefits and restructuring charges. Accordingly, in addition to disclosing its financial results determined in accordance with GAAP, Park discloses non-GAAP operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below reconciles the non-GAAP operating results before special items to earnings determined in accordance with GAAP. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains R&D facilities in Arizona, Kansas and Singapore.

Additional corporate information is available on the Company’s web site at www.parkelectro.com.

Performance table, including non-GAAP information (in thousands, except per share amounts – unaudited):

                       
13 Weeks Ended 39 Weeks Ended
 
12/1/13   11/25/12   9/1/13 12/1/13   11/25/12  
Sales $ 39,678 $ 41,265 $ 44,497 $ 127,613 $ 133,741
 
Net Earnings before Special Items1 $ 4,721 $ 5,109 $ 5,983 $ 15,833 $ 15,820
Special Items net of Tax $ - $ (399 ) $ 2,062 $ 1,862 $ (2,931 )
Net Earnings $ 4,721 $ 4,710   $ 8,045 $ 17,695 $ 12,889  
 
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1 $ 0.23 $ 0.25 $ 0.29 $ 0.76 $ 0.76
Special Items $ - $ (0.02 ) $ 0.10 $ 0.09 $ (0.14 )
Basic Earnings per Share $ 0.23 $ 0.23   $ 0.39 $ 0.85 $ 0.62  
 
Diluted Earnings before Special Items1 $ 0.23 $ 0.25 $ 0.29 $ 0.76 $ 0.76
Special Items $ - $ (0.02 ) $ 0.10 $ 0.09 $ (0.14 )
Diluted Earnings per Share $ 0.23 $ 0.23   $ 0.39 $ 0.85 $ 0.62  
 
Weighted Average Shares Outstanding:
Basic 20,857 20,801 20,836 20,840 20,799
Diluted 20,917 20,803 20,852 20,871 20,824
 
1 Refer to "Detailed operating information" below for information regarding Special Items.
 

Comparative balance sheets (in thousands):

         
12/1/13 3/3/2013

Assets

(unaudited)
Current Assets
Cash and Marketable Securities $ 291,260 $ 275,216
Accounts Receivable, Net 22,852 25,878
Inventories 14,633 12,918
Other Current Assets   6,421   6,662
Total Current Assets 335,166 320,674
 
Fixed Assets, Net 30,154 32,187
Other Assets   16,823   16,797
Total Assets $ 382,143 $ 369,658
 

Liabilities and Shareholders' Equity

Current Liabilities
Accounts Payable $ 6,224 $ 6,485
Accrued Liabilities 6,679 6,016
Income Taxes Payable   2,691   4,177
Total Current Liabilities 15,594 16,678
 
Long-Term Debt 52,000 52,000
Deferred Income Taxes 761 812
Other Liabilities   246   246
Total Liabilities 68,601 69,736
 
Shareholders’ Equity   313,542   299,922
 
Total Liabilities and Shareholders' Equity $ 382,143 $ 369,658
 
Equity per Share $ 15.02 $ 14.40
 

Detailed operating information (in thousands – unaudited):

           

13 Weeks Ended
December 1, 2013

13 Weeks Ended
November 25, 2012

13 Weeks Ended
September 1, 2013

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

Net Sales $ 39,678 $ 39,678   $ 41,265 $ 41,265   $ 44,497 $ 44,497
Cost of Sales 28,640 28,640 28,725 28,725 30,876 30,876

   %

72.2 % 72.2 % 69.6 % 69.6 % 69.4 % 69.4 %
 
Gross Profit 11,038 11,038 12,540 12,540 13,621 13,621

   %

27.8 % 27.8 % 30.4 % 30.4 % 30.6 % 30.6 %
 

Selling, General & Administrative

Expenses

6,106 6,106 6,365 6,365 6,041 6,041

   %

15.4 % 15.4 % 15.4 % 15.4 % 13.6 % 13.6 %
 
Restructuring Charge - - - 559 (559 ) - 119 (119 ) -

   %

0.0 % 0.0 % 1.4 % 0.0 % 0.3 % 0.0 %
 
Earnings from Operations 4,932 - 4,932 5,616 559 6,175 7,461 119 7,580

   %

12.4 % 12.4 % 13.6 % 15.0 % 16.8 % 17.0 %
 
Interest Income 139 139 143 - 143 77 77

   %

0.4 % 0.4 % 0.3 % 0.3 % 0.2 % 0.2 %
 
Interest Expense 187 187 - - 185 185

   %

0.5 % 0.5 % 0.0 % 0.0 % 0.4 % 0.4 %
 
Net Interest (Expense) Income (48 ) (48 ) 143 143 (108 ) (108 )

   %

-0.1 % -0.1 % 0.3 % 0.3 % -0.2 % -0.2 %
 
Earnings before Income Taxes 4,884 - 4,884 5,759 559 6,318 7,353 119 7,472

   %

12.3 % 12.3 % 14.0 % 15.3 % 16.5 % 16.8 %
 
Income Tax Provision 163 - 163 1,049 160 1,209 (692 ) 2,181 1,489
Effective Tax Rate 3.3 % 3.3 % 18.2 % 19.1 % -9.4 % 19.9 %
 
Net Earnings 4,721 - 4,721 4,710 399 5,109 8,045 (2,062 ) 5,983

   %

11.9 % 11.9 % 11.4 % 12.4 % 18.1 % 13.4 %
 

Detailed operating information (in thousands – unaudited), continued:

       

39 Weeks Ended
December 1, 2013

39 Weeks Ended
November 25, 2012

GAAP    

Specials
Items

   

Before
Special
Items

GAAP    

Specials
Items

   

Before
Special
Items

Net Sales $ 127,613 $ 127,613   $ 133,741 $ 133,741
Cost of Sales 89,963 89,963 95,026 95,026

   %

70.5 % 70.5 % 71.1 % 71.1 %
 
Gross Profit 37,650 37,650 38,715 38,715

   %

29.5 % 29.5 % 28.9 % 28.9 %
 

Selling, General & Administrative

Expenses

18,703 18,703 20,012 20,012

   %

14.7 % 14.7 % 15.0 % 15.0 %
 
Restructuring Charge 319 (319 ) - 3,095 (3,095 ) -

   %

0.2 % 0.0 % 2.3 % 0.0 %
 
Earnings from Operations 18,628 319 18,947 15,608 3,095 18,703

   %

14.6 % 14.8 % 11.7 % 14.0 %
 
Interest Income 284 284 520 520

   %

0.2 % 0.2 % 0.4 % 0.4 %
 
Interest Expense 543 543 - -

   %

0.4 % 0.4 % 0.0 % 0.0 %
 
Net Interest (Expense) Income (259 ) (259 ) 520 520

   %

-0.2 % -0.2 % 0.4 % 0.4 %
 
Earnings before Income Taxes 18,369 319 18,688 16,128 3,095 19,223

   %

14.4 % 14.6 % 12.1 % 14.4 %
 
Income Tax Provision 674 2,181 2,855 3,239 164 3,403
Effective Tax Rate 3.7 % 15.3 % 20.1 % 17.7 %
 
Net Earnings 17,695 (1,862 ) 15,833 12,889 2,931 15,820

   %

13.9 % 12.4 % 9.6 % 11.8 %

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...