x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
New York | 11-1734643 |
(State or Other Jurisdiction of Incorporation of Organization) | (I.R.S. Employer Identification No.) |
48 South Service Road, Melville, New York (Address of Principal Executive Offices) | 11747 (Zip Code) |
Registrant’s telephone number, including area code (631) 465-3600 |
Title of Each Class | Name of Each Exchange on Which Registered |
Common Stock, par value $.10 per share | New York Stock Exchange |
Preferred Stock Purchase Rights | New York Stock Exchange |
Title of Class | Aggregate Market Value | As of Close of Business On |
Common Stock, par value $.10 per share | $ | August |
Title of Class | Shares Outstanding | As of Close of Business On |
Common Stock, par value $.10 per share | May |
Page | |||
Item | 4 | ||
Item 1A. | Risk Factors | 17 | |
Item 1B. | Unresolved Staff Comments | 19 | |
19 | |||
20 | |||
Reserved | 20 | ||
20 | |||
22 | |||
23 | |||
25 | |||
44 | |||
45 | |||
46 | |||
71 | |||
71 | |||
75 | |||
76 | |||
76 | |||
76 | |||
76 | |||
76 | |||
PART IV | |||
Item 15. | Exhibits and Financial Statement Schedules | 77 | |
SIGNATURES | 78 | ||
FINANCIAL STATEMENT SCHEDULES | |||
79 | |||
80 |
Location | Owned or Leased | Use | Footage) | |||||
Melville, NY | Leased | Administrative Offices | 8,000 | |||||
Fullerton, CA | Leased | Printed Circuit Materials | 95,000 | |||||
Anaheim, CA | Leased | Printed Circuit Materials | 26,000 | |||||
Tempe, AZ | Leased | Printed Circuit Materials | 87,000 | |||||
Lannemezan, France | Printed Circuit Materials | 29,000 | ||||||
Singapore | Leased | Printed Circuit Materials | 128,000 | |||||
Zhuhai, China | Leased | Printed Circuit Materials | 40,000 | |||||
Waterbury, CT | Leased | Advanced Composites | 100,000 | |||||
Newton, KS | Leased | Advanced Composites | 52,000 | |||||
Singapore | Leased | Advanced Composites | 24,000 | |||||
Lynnwood, WA | Leased | Aerospace Parts | 21,000 |
Name | Title | Age | ||
Brian E. Shore | Chief Executive Officer, President and a Director | 58 | ||
Stephen E. Gilhuley | Executive Vice President, Secretary and General Counsel | 65 | ||
David R. Dahlquist | Vice President and Chief Financial Officer | 36 | ||
P. Matthew Farabaugh | Vice President and Controller | 49 | ||
Katherine O. Abbitt | Vice President of Sales and Marketing | 47 | ||
Anthony W. DiGaudio | Vice President of Sales and Marketing – Asia | 40 | ||
Margaret M. Kendrick | Vice President of Operations | 50 |
5. | MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
For the Fiscal Year | Stock Price | Dividends | ||||||||||
Ended February 28, 2010 | High | Low | Declared | |||||||||
First Quarter | $ | 21.75 | $ | 13.41 | $ | .08 | ||||||
Second Quarter | 24.90 | 18.26 | .18 | (a) | ||||||||
Third Quarter | 27.31 | 20.68 | - | |||||||||
Fourth Quarter | 28.81 | 22.60 | .10 | |||||||||
For the Fiscal Year | Stock Price | Dividends | ||||||||||
Ended March 1, 2009 | High | Low | Declared | |||||||||
First Quarter | $ | 30.55 | $ | 22.58 | $ | .08 | ||||||
Second Quarter | 29.83 | 22.77 | .08 | |||||||||
Third Quarter | 30.91 | 12.99 | .08 | |||||||||
Fourth Quarter | 21.64 | 15.28 | .08 |
For the Fiscal Year | Stock Price | Dividends | ||||||||||
Ended March 1, 2009 | High | Low | Declared | |||||||||
First Quarter | $ | 30.55 | $ | 22.58 | $ | .08 | ||||||
Second Quarter | 29.83 | 22.77 | .08 | |||||||||
Third Quarter | 30.91 | 12.99 | .08 | |||||||||
Fourth Quarter | 21.64 | 15.28 | .08 |
For the Fiscal Year | Stock Price | Dividends | ||||||||||
Ended March 2, 2008 | High | Low | Declared | |||||||||
First Quarter | $ | 29.87 | $ | 25.68 | $ | .08 | ||||||
Second Quarter | 33.99 | 26.05 | 1.58(a) | |||||||||
Third Quarter | 37.17 | 28.16 | .08 | |||||||||
Fourth Quarter | 31.66 | 21.11 | .08 |
(a) |
Maximum Number (or | ||||
Total Number of | Approximate Dollar | |||
Shares (or | Value) of Shares | |||
Total | Units)Purchased | (or Units) that | ||
Number of | Average | As Part of | May Yet Be | |
Shares (or Units) | Price Paid Per Share | Publicly Announced Plans | Purchased Under The Plans or | |
Period | Purchased | (or Unit) | or Programs | Programs |
December 1 - January 1 | 0 | - | 0 | |
January 2 – February 1 | 0 | - | 0 | |
February 2 – March 1 | 0 | - | 0 | |
Total | 0 | - | 0 | 2,000,000 (a) |
Maximum Number (or | ||||||||||||||||
Total Number of | Approximate Dollar | |||||||||||||||
Shares (or | Value) of Shares | |||||||||||||||
Total | Units)Purchased | (or Units) that | ||||||||||||||
Number of | Average | As Part of | May Yet Be | |||||||||||||
Shares (or Units) | Price Paid Per Share | Publicly Announced Plans | Purchased Under The Plans or | |||||||||||||
Period | Purchased | (or Unit) | or Programs | Programs | ||||||||||||
November 30 – December 28 | 0 | - | 0 | |||||||||||||
December 29 – January 28 | 0 | - | 0 | |||||||||||||
January 29 – February 28 | 0 | - | 0 | |||||||||||||
Total | 0 | - | 0 | 2,000,000 | (a) |
(a) | Aggregate number of shares available to be purchased by the Company pursuant to a share purchase authorization announced on October 20, 2004. Pursuant to such authorization, the Company is authorized to purchase its shares from time to time on the open market or in privately negotiated transactions. |
Fiscal Year Ended | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
February 28, 2010 | March 1, 2009 | March 2, 2008 | February 25, 2007 | February 26, 2006 | ||||||||||||||||
STATEMENTS OF EARNINGS INFORMATION: | ||||||||||||||||||||
Net sales | $ | 175,686 | $ | 200,062 | $ | 241,852 | $ | 257,377 | $ | 222,251 | ||||||||||
Cost of sales | 124,084 | 156,638 | 179,398 | 193,270 | 167,650 | |||||||||||||||
Gross profit | 51,602 | 43,424 | 62,454 | 64,107 | 54,601 | |||||||||||||||
Selling, general and administrative expenses | 24,480 | 24,806 | 27,159 | 26,682 | 25,129 | |||||||||||||||
Insurance arrangement termination charge | - | - | - | 1,316 | - | |||||||||||||||
Asset impairment charge | - | 3,967 | - | - | 2,280 | |||||||||||||||
Realignment and severance charges (Note 12) | - | 2,290 | 1,362 | - | 889 | |||||||||||||||
Earnings from operations | 27,122 | 12,361 | 33,933 | 36,109 | 26,303 | |||||||||||||||
Interest and other income, net | 1,062 | 6,648 | 9,361 | 8,033 | 6,056 | |||||||||||||||
Earnings from continuing operations before income taxes | 28,184 | 19,009 | 43,294 | 44,142 | 32,359 | |||||||||||||||
Income tax provision from continuing operations | 2,825 | 495 | 8,615 | 4,351 | 5,484 | |||||||||||||||
Net earnings from continuing operations | 25,359 | 18,514 | 34,679 | 39,791 | 26,875 | |||||||||||||||
Gain from discontinued operations (Note 11) | - | 16,486 | - | - | - | |||||||||||||||
Net earnings | $ | 25,359 | $ | 35,000 | $ | 34,679 | $ | 39,791 | $ | 26,875 | ||||||||||
Basic earnings per share: | ||||||||||||||||||||
Net earnings from continuing operations | $ | 1.24 | $ | 0.90 | $ | 1.71 | $ | 1.97 | $ | 1.34 | ||||||||||
Gain from discontinued operations | - | 0.81 | - | - | - | |||||||||||||||
Basic earnings per share | $ | 1.24 | $ | 1.71 | $ | 1.71 | $ | 1.97 | $ | 1.34 | ||||||||||
Diluted earnings per share: | ||||||||||||||||||||
Net earnings from continuing operations | $ | 1.23 | $ | 0.90 | $ | 1.70 | $ | 1.96 | $ | 1.33 | ||||||||||
Gain from discontinued operations | - | 0.81 | - | - | - | |||||||||||||||
Diluted earnings per share | $ | 1.23 | $ | 1.71 | $ | 1.70 | $ | 1.96 | $ | 1.33 | ||||||||||
Cash dividends per common share | $ | 0.36 | $ | 0.32 | $ | 1.82 | $ | 1.32 | $ | 1.32 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
Basic | 20,522 | 20,441 | 20,305 | 20,175 | 20,047 | |||||||||||||||
Diluted | 20,547 | 20,486 | 20,364 | 20,317 | 20,210 | |||||||||||||||
BALANCE SHEET INFORMATION: | ||||||||||||||||||||
Working capital | $ | 261,036 | $ | 239,645 | $ | 239,060 | $ | 233,767 | $ | 214,934 | ||||||||||
Total assets | 343,104 | 327,579 | 327,407 | 321,922 | 311,312 | |||||||||||||||
Long-term debt | - | - | - | - | - | |||||||||||||||
Stockholders' equity | 316,098 | 295,709 | 269,172 | 264,167 | 245,423 |
Fiscal Year Ended | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
March 1, 2009 | March 2, 2008 | February 25, 2007 | February 26, 2006 | February 27, 2005 | ||||||||||||||||
STATEMENTS OF EARNINGS INFORMATION: | ||||||||||||||||||||
Net sales | $ | 200,062 | $ | 241,852 | $ | 257,377 | $ | 222,251 | $ | 211,187 | ||||||||||
Cost of sales | 156,638 | 179,398 | 193,270 | 167,650 | 167,937 | |||||||||||||||
Gross profit | 43,424 | 62,454 | 64,107 | 54,601 | 43,250 | |||||||||||||||
Selling, general and administrative expenses | 24,806 | 27,159 | 26,682 | 25,129 | 26,960 | |||||||||||||||
Insurance arrangement termination charge | - | - | 1,316 | - | - | |||||||||||||||
Asset impairment charge | 3,967 | - | - | 2,280 | - | |||||||||||||||
Realignment and severance charges (Note 12) | 2,290 | 1,362 | - | 889 | 625 | |||||||||||||||
Gain on insurance settlement | - | - | - | - | (4,745 | ) | ||||||||||||||
Earnings from operations | 12,361 | 33,933 | 36,109 | 26,303 | 20,410 | |||||||||||||||
Interest and other income, net | 6,648 | 9,361 | 8,033 | 6,056 | 3,386 | |||||||||||||||
Earnings from continuing operations before income taxes | 19,009 | 43,294 | 44,142 | 32,359 | 23,796 | |||||||||||||||
Income tax provision from continuing operations | 495 | 8,615 | 4,351 | 5,484 | 2,191 | |||||||||||||||
Net earnings from continuing operations | 18,514 | 34,679 | 39,791 | 26,875 | 21,605 | |||||||||||||||
Gain from discontinued operations (Note 11) | 16,486 | - | - | - | - | |||||||||||||||
Net earnings | $ | 35,000 | $ | 34,679 | $ | 39,791 | $ | 26,875 | $ | 21,605 | ||||||||||
Basic earnings per share: | ||||||||||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.71 | $ | 1.97 | $ | 1.34 | $ | 1.09 | ||||||||||
Gain from discontinued operations | .81 | - | - | - | - | |||||||||||||||
Basic earnings per share | $ | 1.71 | $ | 1.71 | $ | 1.97 | $ | 1.34 | $ | 1.09 | ||||||||||
Diluted earnings per share: | ||||||||||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.70 | $ | 1.96 | $ | 1.33 | $ | 1.08 | ||||||||||
Gain from discontinued operations | .81 | - | - | - | - | |||||||||||||||
Diluted earnings per share | $ | 1.71 | $ | 1.70 | $ | 1.96 | $ | 1.33 | $ | 1.08 | ||||||||||
Cash dividends per common share | $ | .32 | $ | 1.82 | $ | 1.32 | $ | 1.32 | $ | 1.26 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
Basic | 20,441 | 20,305 | 20,175 | 20,047 | 19,879 | |||||||||||||||
Diluted | 20,486 | 20,364 | 20,317 | 20,210 | 20,075 | |||||||||||||||
BALANCE SHEET INFORMATION: | ||||||||||||||||||||
Working capital | $ | 239,645 | $ | 239,060 | $ | 233,767 | $ | 214,934 | $ | 206,714 | ||||||||||
Total assets | 327,579 | 327,407 | 321,922 | 311,312 | 307,311 | |||||||||||||||
Long-term debt | - | - | - | - | - | |||||||||||||||
Stockholders' equity | 295,709 | 269,172 | 264,167 | 245,423 | 242,857 | |||||||||||||||
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Contractual Obligations (Amounts in thousands) | Total | 2010 | 2011- 2012 | 2013- 2014 | 2015 and thereafter | Total | 2011 | 2012- 2013 | 2014- 2015 | 2016 and thereafter | ||||||||||||||||||||||||||||||
Operating lease obligations | $ | 8,754 | $ | 2,335 | $ | 3,294 | $ | 1,645 | $ | 1,480 | $ | 6,419 | $ | 1,935 | $ | 2,325 | $ | 1,268 | $ | 891 | ||||||||||||||||||||
Equipment purchase obligations | 3,483 | 3,483 | - | - | - | |||||||||||||||||||||||||||||||||||
Plant purchase obligations | 1,653 | 1,653 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 12,237 | $ | 5,818 | $ | 3,294 | $ | 1,645 | $ | 1,480 | $ | 8,072 | $ | 3,588 | $ | 2,325 | $ | 1,268 | $ | 891 |
§ | The Company's operating results are affected by a number of factors, including various factors beyond the Company's |
§ | The Company, from time to time, is engaged in the |
§ | The Company may acquire businesses, product lines or |
§ | The Company's success is dependent upon its relationship with key management and technical personnel. |
§ | The Company's future success depends in part upon its |
§ | The market price of the Company’s securities can be subject to fluctuations in response to quarter to quarter variations in operating results, changes in analyst earnings estimates, market conditions in the electronic materials industry, as well as general economic conditions and other factors external to the Company. |
§ | The Company's results could be affected by changes in the Company's accounting policies and practices or changes in the Company's organization, compensation and benefit plans, or changes in the Company's material agreements or |
7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
The Company is exposed to market risks for changes in foreign currency exchange rates and interest rates. The Company's primary foreign |
8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
March 1, | March 2, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 40,790 | $ | 100,159 | ||||
Marketable securities (Note 2) | 184,504 | 113,819 | ||||||
Accounts receivable, less allowance for doubtful accounts of $687 and $750, respectively | 22,433 | 37,466 | ||||||
Inventories (Note 3) | 10,677 | 14,049 | ||||||
Prepaid expenses and other current assets | 5,527 | 5,546 | ||||||
Total current assets | 263,931 | 271,039 | ||||||
Property, plant and equipment, net of accumulated depreciation and amortization (Note 4) | 48,777 | 47,188 | ||||||
Other assets (Note 5) | 14,871 | 9,180 | ||||||
Total assets | $ | 327,579 | $ | 327,407 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,480 | $ | 12,828 | ||||
Accrued liabilities (Note 6) | 11,425 | 13,314 | ||||||
Income taxes payable | 4,381 | 5,837 | ||||||
Total current liabilities | 24,286 | 31,979 | ||||||
Deferred income taxes (Note 7) | 3,927 | 4,851 | ||||||
Other liabilities | 3,657 | 4,224 | ||||||
Liabilities from discontinued operations (Note 11) | - | 17,181 | ||||||
Total liabilities | 31,870 | 58,235 | ||||||
Commitments and contingencies (Notes 15 and 16) | ||||||||
Stockholders' equity (Note 9): | ||||||||
Preferred stock, $1 par value per share—authorized, 500,000 shares; issued, none | - | - | ||||||
Common stock, $.10 par value per share—authorized, 60,000,000 shares; issued, 20,470,661 and 20,369,986 shares, respectively | 2,047 | 2,037 | ||||||
Additional paid-in capital | 146,934 | 143,267 | ||||||
Retained earnings | 145,107 | 116,646 | ||||||
Accumulated other comprehensive income | 1,622 | 7,436 | ||||||
295,710 | 269,386 | |||||||
Less treasury stock, at cost, 145 and 23,106 shares, respectively | (1 | ) | (214 | ) | ||||
Total stockholders' equity | 295,709 | 269,172 | ||||||
Total liabilities and stockholders' equity | $ | 327,579 | $ | 327,407 |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except share and per share amounts) |
Fiscal Year Ended | ||||||||||||
March 1, | March 2, | February 25, | ||||||||||
2009 | 2008 | 2007 | ||||||||||
Net sales | $ | 200,062 | $ | 241,852 | $ | 257,377 | ||||||
Cost of sales | 156,638 | 179,398 | 193,270 | |||||||||
Gross profit | 43,424 | 62,454 | 64,107 | |||||||||
Selling, general and administrative expenses | 24,806 | 27,159 | 26,682 | |||||||||
Insurance arrangement termination charge (Note 13) | - | - | 1,316 | |||||||||
Realignment and severance charges (Note 12) | 2,290 | 1,362 | - | |||||||||
Asset impairment charge | 3,967 | - | - | |||||||||
Earnings from continuing operations | 12,361 | 33,933 | 36,109 | |||||||||
Interest and other income, net | 6,648 | 9,361 | 8,033 | |||||||||
Earnings before income taxes | 19,009 | 43,294 | 44,142 | |||||||||
Income tax provision (Note 7) | 495 | 8,615 | 4,351 | |||||||||
Net earnings from continuing operations | 18,514 | 34,679 | 39,791 | |||||||||
Gain from discontinued operations (Note 11) | 16,486 | - | - | |||||||||
Net earnings | $ | 35,000 | $ | 34,679 | $ | 39,791 | ||||||
Earnings per share: Basic earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.71 | $ | 1.97 | ||||||
Gain from discontinued operations | .81 | - | - | |||||||||
Basic earnings per share | $ | 1.71 | $ | 1.71 | $ | 1.97 | ||||||
Basic weighted average shares | 20,441 | 20,305 | 20,175 | |||||||||
Diluted earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.70 | $ | 1.96 | ||||||
Gain from discontinued operations | .81 | - | - | |||||||||
Diluted earnings per share | $ | 1.71 | $ | 1.70 | $ | 1.96 | ||||||
Diluted weighted average shares | 20,486 | 20,364 | 20,317 |
February 28, 2010 | March 1, 2009 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 134,030 | $ | 40,790 | ||||
Marketable securities (Note 2) | 103,810 | 184,504 | ||||||
Accounts receivable, less allowance for doubtful accounts of $578 and $687, respectively | 31,698 | 22,433 | ||||||
Inventories (Note 3) | 11,973 | 10,677 | ||||||
Prepaid expenses and other current assets | 1,167 | 5,527 | ||||||
Total current assets | 282,678 | 263,931 | ||||||
Property, plant and equipment, net of accumulated depreciation and amortization (Note 4) | 44,905 | 48,777 | ||||||
Other assets (Note 5) | 15,521 | 14,871 | ||||||
Total assets | $ | 343,104 | $ | 327,579 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,201 | $ | 8,480 | ||||
Accrued liabilities (Note 6) | 7,301 | 11,425 | ||||||
Income taxes payable | 4,140 | 4,381 | ||||||
Total current liabilities | 21,642 | 24,286 | ||||||
Deferred income taxes (Note 7) | 1,398 | 3,927 | ||||||
Other liabilities (Notes 7 and 12) | 3,966 | 3,657 | ||||||
Total liabilities | 27,006 | 31,870 | ||||||
Commitments and contingencies (Notes 14 and 15) | ||||||||
Stockholders' equity (Note 9): | ||||||||
Preferred stock, $1 par value per share—authorized, 500,000 shares; issued, none | - | - | ||||||
Common stock, $.10 par value per share—authorized, 60,000,000 shares; issued, 20,540,836 and 20,470,661 shares, respectively | 2,054 | 2,047 | ||||||
Additional paid-in capital | 149,352 | 146,934 | ||||||
Retained earnings | 163,077 | 145,107 | ||||||
Accumulated other comprehensive income | 1,616 | 1,622 | ||||||
316,099 | 295,710 | |||||||
Less treasury stock, at cost, 146 and 145 shares, respectively | (1 | ) | (1 | ) | ||||
Total stockholders' equity | 316,098 | 295,709 | ||||||
Total liabilities and stockholders' equity | $ | 343,104 | $ | 327,579 |
PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share amounts) |
Fiscal Year Ended | ||||||||||||
February 28, | March 1, | March 2, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Net sales | $ | 175,686 | $ | 200,062 | $ | 241,852 | ||||||
Cost of sales | 124,084 | 156,638 | 179,398 | |||||||||
Gross profit | 51,602 | 43,424 | 62,454 | |||||||||
Selling, general and administrative expenses | 24,480 | 24,806 | 27,159 | |||||||||
Realignment and severance charges (Note 12) | - | 2,290 | 1,362 | |||||||||
Asset impairment charge | - | 3,967 | - | |||||||||
Earnings from continuing operations | 27,122 | 12,361 | 33,933 | |||||||||
Interest and other income, net | 1,062 | 6,648 | 9,361 | |||||||||
Earnings before income taxes | 28,184 | 19,009 | 43,294 | |||||||||
Income tax provision (Note 7) | 2,825 | 495 | 8,615 | |||||||||
Net earnings from continuing operations | 25,359 | 18,514 | 34,679 | |||||||||
Gain from discontinued operations (Note 11) | - | 16,486 | - | |||||||||
Net earnings | $ | 25,359 | $ | 35,000 | $ | 34,679 | ||||||
Earnings per share: | ||||||||||||
Basic earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | 1.24 | $ | 0.90 | $ | 1.71 | ||||||
Gain from discontinued operations | - | 0.81 | - | |||||||||
Basic earnings per share | $ | 1.24 | $ | 1.71 | $ | 1.71 | ||||||
Basic weighted average shares | 20,522 | 20,441 | 20,305 | |||||||||
Diluted earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | 1.23 | $ | 0.90 | $ | 1.70 | ||||||
Gain from discontinued operations | - | 0.81 | - | |||||||||
Diluted earnings per share | $ | 1.23 | $ | 1.71 | $ | 1.70 | ||||||
Diluted weighted average shares | 20,547 | 20,486 | 20,364 |
PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |
(In thousands, except share and per share amounts) |
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Comprehensive | Comprehensive | Additional | Comprehensive | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Income | Treasury Stock | Income | Common Stock | Paid-in | Retained | Income | Treasury Stock | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | (Loss) | Shares | Amount | (Loss) | Shares | Amount | Capital | Earnings | (Loss) | Shares | Amount | (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, February 26, 2006 | 20,369,986 | $ | 2,037 | $ | 137,513 | $ | 105,808 | $ | 2,435 | 255,428 | $ | (2,370 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 39,791 | $ | 39,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate changes | 1,684 | 1,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | 645 | 645 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity | 687 | (80,236 | ) | 745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,283 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit on exercise of options | 547 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($1.32 per share) | (26,638 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 42,120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, February 25, 2007 | 20,369,986 | $ | 2,037 | $ | 140,030 | $ | 118,961 | $ | 4,764 | 175,192 | $ | (1,625 | ) | 20,369,986 | $ | 2,037 | $ | 140,030 | $ | 118,961 | $ | 4,764 | 175,192 | $ | (1,625 | ) | ||||||||||||||||||||||||||||||||||||||
Net earnings | 34,679 | $ | 34,679 | 34,679 | $ | 34,679 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate changes | 2,217 | 2,217 | 2,217 | 2,217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | 455 | 455 | 455 | 455 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity | 1,211 | (152,086 | ) | 1,411 | 1,211 | (152,086 | ) | 1,411 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,392 | 1,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit on exercise of options | 634 | 634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($1.82 per share) | (36,994 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($1.32 per share) | (36,994 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 37,351 | $ | 37,351 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 2, 2008 | 20,369,986 | $ | 2,037 | $ | 143,267 | $ | 116,646 | $ | 7,436 | 23,106 | $ | (214 | ) | 20,369,986 | $ | 2,037 | $ | 143,267 | $ | 116,646 | $ | 7,436 | 23,106 | $ | (214 | ) | ||||||||||||||||||||||||||||||||||||||
Net earnings | 35,000 | $ | 35,000 | 35,000 | $ | 35,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate changes | (5,659 | ) | (5,659 | ) | (5,659 | ) | (5,659 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | (155 | ) | (155 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | (155 | ) | (155 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity | 100,675 | 10 | 2,056 | (22,961 | ) | 213 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,231 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit on exercise of options | 380 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($1.82 per share) | (6,539 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 29,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 1, 2009 | 20,470,661 | $ | 2,047 | $ | 146,934 | $ | 145,107 | $ | 1,622 | 145 | $ | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 25,359 | $ | 25,359 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange rate changes | 38 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | (44 | ) | (44 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity | 100,675 | 10 | 2,056 | (22,961 | ) | 213 | 70,175 | 7 | 1,171 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,231 | 1,117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit on exercise of options | 380 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($0.32 per share) | (6,539 | ) | (7,389 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 29,186 | $ | 25,353 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 1, 2009 | 20,470,661 | $ | 2,047 | $ | 146,934 | $ | 145,107 | $ | 1,622 | 145 | $ | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, February 28, 2010 | 20,540,836 | $ | 2,054 | $ | 149,352 | $ | 163,077 | $ | 1,616 | 146 | $ | (1 | ) |
PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||
March 1, 2009 | March 2, 2008 | February 25, 2007 | February 28, 2010 | March 1, 2009 | March 2, 2008 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net earnings | $ | 35,000 | $ | 34,679 | $ | 39,791 | $ | 25,359 | $ | 35,000 | $ | 34,679 | ||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization | 7,707 | 8,286 | 8,992 | |||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 7,057 | 7,707 | 8,286 | |||||||||||||||||||||
Loss (gain) on sale of fixed assets | (3 | ) | (74 | ) | (18 | ) | 250 | (3 | ) | (74 | ) | |||||||||||||
Stock-based compensation | 1,231 | 1,392 | 1,283 | 1,117 | 1,231 | 1,392 | ||||||||||||||||||
Provision for doubtful accounts receivable | 7 | 166 | (954 | ) | (57 | ) | 7 | 166 | ||||||||||||||||
Provision for deferred income taxes | (5,409 | ) | (812 | ) | (899 | ) | (2,174 | ) | (5,409 | ) | (812 | ) | ||||||||||||
Gain from discontinued operations | (16,486 | ) | - | - | - | (16,486 | ) | - | ||||||||||||||||
Impairment of fixed assets | 3,967 | - | - | - | 3,967 | - | ||||||||||||||||||
Non-cash restructuring | (3,752 | ) | - | - | - | (3,752 | ) | - | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 14,683 | 2,300 | (2,092 | ) | (9,146 | ) | 14,683 | 2,300 | ||||||||||||||||
Inventories | 3,199 | 1,375 | 210 | (1,273 | ) | 3,199 | 1,375 | |||||||||||||||||
Prepaid expenses and other current assets | 583 | (3,087 | ) | (627 | ) | 4,283 | 583 | (3,087 | ) | |||||||||||||||
Other assets and liabilities | 1,026 | (1,603 | ) | 1,302 | 77 | 1,026 | (1,603 | ) | ||||||||||||||||
Accounts payable | (4,186 | ) | (983 | ) | 158 | 1,690 | (4,186 | ) | (983 | ) | ||||||||||||||
Accrued liabilities | (2,028 | ) | (209 | ) | (6,782 | ) | (4,493 | ) | (2,028 | ) | (209 | ) | ||||||||||||
Income taxes payable | (1,890 | ) | 473 | (4,576 | ) | 176 | (1,890 | ) | 473 | |||||||||||||||
Net cash provided by operating activities | 33,649 | 41,903 | 35,788 | 22,866 | 33,649 | 41,903 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (12,224 | ) | (4,525 | ) | (4,793 | ) | (3,422 | ) | (12,224 | ) | (4,525 | ) | ||||||||||||
Proceeds from sales of property, plant and equipment | 16 | 78 | 896 | 69 | 16 | 78 | ||||||||||||||||||
Purchases of marketable securities | (296,252 | ) | (165,690 | ) | (123,592 | ) | (153,153 | ) | (296,252 | ) | (165,690 | ) | ||||||||||||
Proceeds from sales and maturities of marketable securities | 224,808 | 142,535 | 126,844 | 233,892 | 224,808 | 142,535 | ||||||||||||||||||
Business acquisition | (4,728 | ) | - | - | (1,025 | ) | (4,728 | ) | - | |||||||||||||||
Net cash used in investing activities | (88,380 | ) | (27,602 | ) | (645 | ) | ||||||||||||||||||
Net cash provided by (used in) investing activities | 76,361 | (88,380 | ) | (27,602 | ) | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Dividends paid | (6,539 | ) | (36,994 | ) | (26,638 | ) | (7,389 | ) | (6,539 | ) | (36,994 | ) | ||||||||||||
Proceeds from exercise of stock options | 2,280 | 2,622 | 1,432 | 1,178 | 2,280 | 2,622 | ||||||||||||||||||
Tax benefits from stock-based compensation | 380 | 634 | 547 | 130 | 380 | 634 | ||||||||||||||||||
Net cash used in financing activities | (3,879 | ) | (33,738 | ) | (24,659 | ) | (6,081 | ) | (3,879 | ) | (33,738 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes | (58,610 | ) | (19,437 | ) | 10,484 | 93,146 | (58,610 | ) | (19,437 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (759 | ) | 545 | 540 | 94 | (759 | ) | 545 | ||||||||||||||||
Increase(decrease)in cash and cash equivalents | (59,369 | ) | (18,892 | ) | 11,024 | 93,240 | (59,369 | ) | (18,892 | ) | ||||||||||||||
Cash and cash equivalents, beginning of year | 100,159 | 119,051 | 108,027 | 40,790 | 100,159 | 119,051 | ||||||||||||||||||
Cash and cash equivalents, end of year | $ | 40,790 | $ | 100,159 | $ | 119,051 | $ | 134,030 | $ | 40,790 | $ | 100,159 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
a. | Principles of Consolidation – The consolidated financial statements include the accounts of Park and its subsidiaries. All significant intercompany balances and transactions have been eliminated. |
b. | Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. |
c. | Accounting Period – The Company’s fiscal year is the 52 or 53 week period ending the Sunday nearest to the last day of February. The 2010, 2009 |
d. | Cash and Cash Equivalents – The Company considers all money market securities and investments with contractual maturities at the date of purchase of 90 days or less to be cash equivalents. |
Supplemental cash flow information: | Fiscal Year | |||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||||||
Income taxes paid, net of refunds | $ | 5,381 | $ | 9,804 | $ | 11,712 | $ | 3,946 | $ | 5,381 | $ | 9,804 |
e. | Marketable Securities – All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive income (loss). Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in other income. The cost of securities sold is based on the specific identification method. The Company has classified any investment in auction rate securities for which the underlying security had a maturity greater than three months as marketable securities. The Company has not had any investment in auction rate securities since the 2008 fiscal year third quarter. |
f. | Inventories – Inventories are stated at the lower of cost |
g. | Revenue Recognition – |
h. | Sales Allowances and Product Warranties - The Company provides for the estimated costs of sales allowances at the time such costs can be reasonably estimated. The Company’s products are made to customer specifications and tested for adherence to specifications before shipment to customers. Composite parts and assemblies may be subject to “airworthiness” acceptance by customers after receipt at the customers’ locations. There are no future performance requirements other than the products’ meeting the agreed specifications. The Company’s bases for providing sales allowances for returns are known situations in which products may have failed due to manufacturing defects in products supplied by the Company. The Company is focused on manufacturing the highest quality printed circuit materials and advanced composite materials, parts and assemblies possible and employs stringent manufacturing process controls and works with raw material suppliers who have dedicated themselves to complying with the Company's specifications and technical requirements. The amounts of returns and allowances resulting from defective or damaged products have been approximately 1.0% of sales for each of the Company's last three fiscal years. |
i. | Accounts Receivable – The majority of the Company’s accounts receivable are due from purchasers of the Company’s printed circuit materials. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are due within established payment terms and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than established payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. |
j. | Allowance for Doubtful Accounts |
k. | Valuation of Long-Lived Assets - The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Important factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends and significant changes in the use of the Company's assets or strategy of the overall business. |
l. | Goodwill and Other Intangible Assets - Goodwill is not amortized. Other intangible assets are amortized over the useful lives of the assets on a straight line basis. The Company tests for impairment of intangible assets whenever events or changes in circumstances |
m. | Shipping Costs – The amounts paid by the Company to third-party shippers for transporting products to customers, which are not reimbursed by customers, are classified as selling expenses. The shipping costs included in selling, general and administrative expenses were approximately $3,973, $3,929 |
n. | Property, Plant and Equipment – Property, plant and equipment are stated at cost less accumulated depreciation. The Company capitalizes additions, improvements and major renewals and expenses maintenance, repairs and minor renewals as incurred. Depreciation and amortization are computed principally by the straight-line method over the estimated useful lives. Machinery, equipment, furniture and |
o. | Income Taxes – Deferred income taxes are provided for temporary differences in the reporting of certain items, primarily depreciation, for income tax purposes as compared with financial accounting purposes. |
54 United States (“U.S.”) Federal income taxes have not been provided on the undistributed earnings (approximately $152,000 as of February 28, 2010) of the Company’s foreign subsidiaries, because it is management’s practice and intent to reinvest such earnings in the operations of such subsidiaries. |
p. | Foreign Currency Translation – Assets and liabilities of foreign subsidiaries using currencies other than the U.S. dollar as their functional currency are translated into U.S. dollars at fiscal year-end exchange rates, and income and expense items are translated at average exchange rates for the period. Gains and losses resulting from translation are recorded as currency translation adjustments in comprehensive income. |
q. | Stock-Based Compensation - The Company |
2. | MARKETABLE SECURITIES |
Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
February 28, 2010: | ||||||||||||||||||||||||
U.S. Treasury and other government securities | $ | 33 | $ | 6 | $ | 56,279 | ||||||||||||||||||
U.S. corporate debt securities | - | 12 | 5,209 | |||||||||||||||||||||
Certificates of deposit | - | - | 42,322 | |||||||||||||||||||||
Total debt securities | $ | 33 | $ | 18 | $ | 103,810 | ||||||||||||||||||
Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
March 1, 2009: | ||||||||||||||||||||||||
U.S. Treasury and other government securities | $ | 25 | $ | - | $ | 7,975 | $ | 25 | $ | - | $ | 7,975 | ||||||||||||
U.S. corporate debt securities | 48 | 166 | 40,918 | 48 | 166 | 40,918 | ||||||||||||||||||
Certificates of deposit | 10 | - | 135,611 | 10 | - | 135,611 | ||||||||||||||||||
Total debt securities | $ | 83 | $ | 166 | $ | 184,504 | $ | 83 | $ | 166 | $ | 184,504 | ||||||||||||
March 2, 2008: | ||||||||||||||||||||||||
U.S. Treasury and other government securities | $ | 39 | $ | 47 | $ | 30,829 | ||||||||||||||||||
U.S. corporate debt securities | 90 | 185 | 70,390 | |||||||||||||||||||||
Certificates of deposit | - | - | 12,600 | |||||||||||||||||||||
Total debt securities | $ | 129 | $ | 232 | $ | 113,819 |
Estimated Fair Value | ||||||||
Estimated Fair Value | ||||||||
Due in one year or less | $ | 173,964 | $ | 83,831 | ||||
Due after one year through five years | 10,540 | 19,979 | ||||||
$ | 184,504 | |||||||
$ | 103,810 |
3. | INVENTORIES |
March 1, 2009 | March 2, 2008 | February 28, 2010 | March 1, 2009 | |||||||||||||
Raw materials | $ | 5,711 | $ | 5,923 | $ | 5,675 | $ | 5,711 | ||||||||
Work-in-process | 2,110 | 3,686 | 2,975 | 2,110 | ||||||||||||
Finished goods | 2,561 | 3,951 | 3,059 | 2,561 | ||||||||||||
Manufacturing supplies | 295 | 489 | 264 | 295 | ||||||||||||
$ | 10,677 | $ | 14,049 | $ | 11,973 | $ | 10,677 |
4. | PROPERTY, PLANT AND EQUIPMENT |
March 1, 2009 | March 2, 2008 | February 28, 2010 | March 1, 2009 | |||||||||||||
Land, buildings and improvements | $ | 35,496 | $ | 36,182 | $ | 40,531 | $ | 35,496 | ||||||||
Machinery, equipment, furniture and fixtures | 131,731 | 137,816 | 129,757 | 131,731 | ||||||||||||
167,227 | 173,998 | 170,288 | 167,227 | |||||||||||||
Less accumulated depreciation and amortization | 118,450 | 126,810 | 125,383 | 118,450 | ||||||||||||
$ | 48,777 | $ | 47,188 | $ | 44,905 | $ | 48,777 | |||||||||
Property, plant and equipment are initially valued at cost. Depreciation and amortization expense relating to property, plant and equipment was $7,057, $7,707 |
The Company has |
56 goodwill and an intangible asset related to a patent of $106, which is being amortized over 15 years. |
February 28, 2010 | March 1, 2009 | |||||||||||||||
March 1, 2009 | March 2, 2008 | |||||||||||||||
Goodwill | $ | 4,351 | $ | - | $ | 5,376 | $ | 4,351 | ||||||||
Other Intangibles | 112 | 6 | 106 | 112 | ||||||||||||
$ | 4,463 | $ | 6 | $ | 5,482 | $ | 4,463 |
6. | ACCRUED LIABILITIES |
February 28, 2010 | March 1, 2009 | |||||||
Payroll and payroll related | $ | 2,228 | $ | 2,485 | ||||
Employee benefits | 525 | 989 | ||||||
Workers’ compensation accrual | 1,134 | 1,233 | ||||||
Professional fees | 1,509 | 1,393 | ||||||
Environmental reserve (Note 15) | 9 | 844 | ||||||
Restructuring accruals | 681 | 2,239 | ||||||
Other | 1,215 | 2,242 | ||||||
$ | 7,301 | $ | 11,425 |
March 1, 2009 | March 2, 2008 | |||||||
Payroll and payroll related | $ | 2,485 | $ | 3,812 | ||||
Employee benefits | 989 | 966 | ||||||
Workers’ compensation accrual | 1,233 | 1,274 | ||||||
Environmental reserve (Note 15) | 844 | 1,577 | ||||||
Restructuring accruals | 2,239 | 1,169 | ||||||
Other | 3,635 | 4,516 | ||||||
$ | 11,425 | $ | 13,314 |
7. | INCOME TAXES |
The income tax |
Fiscal Year | Fiscal Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 2,087 | $ | 3,388 | $ | 2,319 | $ | 2,587 | $ | 2,087 | $ | 3,388 | ||||||||||||
State and local | 224 | 698 | 349 | (35 | ) | 224 | 698 | |||||||||||||||||
Foreign | 3,593 | 5,341 | 3,445 | 2,447 | 3,593 | 5,341 | ||||||||||||||||||
5,904 | 9,427 | 6,113 | 4,999 | 5,904 | 9,427 | |||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | (4,354 | ) | (1,015 | ) | (664 | ) | 683 | (4,354 | ) | (1,015 | ) | |||||||||||||
State and local | (583 | ) | (100 | ) | (554 | ) | 16 | (583 | ) | (100 | ) | |||||||||||||
Foreign | (472 | ) | 303 | (544 | ) | (2,873 | ) | (472 | ) | 303 | ||||||||||||||
(5,409 | ) | (812 | ) | (1,762 | ) | (2,174 | ) | (5,409 | ) | (812 | ) | |||||||||||||
$ | 495 | $ | 8,615 | $ | 4,351 | $ | 2,825 | $ | 495 | $ | 8,615 |
The components of earnings before income taxes were as follows:
The Company’s effective income tax rate differs from the statutory U.S. Federal income tax rate as a result of the following:
The Company had total net operating loss carryforwards of approximately $27,800 and $24,300 in fiscal years 2010 and 2009, respectively. All of the total net operating loss carryforwards related to foreign operations in fiscal years 2010 and 2009. The foreign net operating loss carryforwards have no expiration. The Company had New York State investment tax credit carryforwards of $1,180 in both fiscal years 2010 and 2009. A $50 benefit has been recognized for these credits; however, the Company does not believe that realization of the principal portion of the investment tax credit carryforward is more likely than not. The deferred tax asset valuation allowance of $9,814 as of February 28, 2010 related to foreign net operating losses and New York State investment tax credit carryforwards. During fiscal year 2010, the valuation allowance increased by $1,027 due to current year foreign losses, for which no tax benefit was recognized. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of the Company's long-term deferred tax liabilities and assets as of February 28, 2010 and March 1, 2009 were as follows: 58
Net deferred tax assets of $9,288 are included in non-current “Other assets” on the Consolidated Balance Sheets. At February 28, 2010, the Company had gross tax-affected unrecognized tax benefits of $1,715, included in “Other liabilities” on the Consolidated Balance Sheets, all of which, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: |
Fiscal Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
United States | $ | 2,422 | $ | 13,729 | $ | 18,330 | ||||||
Foreign | 16,587 | 29,565 | 25,812 | |||||||||
Earnings from continuing operations before income taxes | $ | 19,009 | $ | 43,294 | $ | 44,142 |
Unrecognized | ||||
Tax Benefits | ||||
Balance as of March 1, 2009 | $ | 702 | ||
Gross increases–tax positions in prior period | 766 | |||
Gross decreases-tax positions in prior period | - | |||
Gross increases-current period tax positions | 324 | |||
Gross decreases-current period tax positions | - | |||
Lapse of statute of limitations | (77 | ) | ||
Balance as of February 28, 2010 | $ | 1,715 |
United States | |
Arizona | 2006-2010 |
California | 2006-2010 |
New York | 2007-2010 |
France | 2009-2010 |
Singapore | 2004-2010 |
Fiscal Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Statutory U.S. Federal tax rate | 34.0 | % | 35.0 | % | 35.0 | % | ||||||
State and local taxes, net of Federal benefit | 0.6 | 0.9 | (0.3 | ) | ||||||||
Foreign tax rate differentials | (7.7 | ) | (8.1 | ) | (9.1 | ) | ||||||
Valuation allowance on deferred tax assets | (24.0 | ) | 0.1 | (4.4 | ) | |||||||
Adjustment of tax accruals and reserves | (0.4 | ) | (6.0 | ) | (5.8 | ) | ||||||
Utilization of net operating loss carryovers | - | - | (1.6 | ) | ||||||||
Foreign tax credits | (3.2 | ) | (2.3 | ) | (2.1 | ) | ||||||
Other, net | 3.3 | 0.3 | (1.8 | ) | ||||||||
2.6 | % | 19.9 | % | 9.9 | % |
8. |
March 1, | March 2, | |||||||
2009 | 2008 | |||||||
Deferred tax assets: | ||||||||
Impairment of fixed assets | $ | 5,757 | $ | 4,455 | ||||
Net operating loss carryforwards | 7,657 | 6,125 | ||||||
New York State investment tax credits | 1,180 | 2,164 | ||||||
Other, net | 4,310 | 5,422 | ||||||
18,904 | 18,166 | |||||||
Valuation allowance for deferred tax assets | (8,787 | ) | (13,014 | ) | ||||
Net deferred tax assets | 10,117 | 5,152 | ||||||
Depreciation | (1,354 | ) | (1,665 | ) | ||||
Offshore Singapore earnings subject to local tax | (3,056 | ) | (3,186 | ) | ||||
Total deferred tax liabilities | (4,410 | ) | (4,851 | ) | ||||
Net deferred tax | $ | 5,707 | $ | 301 |
Unrecognized | ||||
Tax Benefits | ||||
Balance as of March 2, 2008 | $ | 952 | ||
Gross increases–tax positions in prior period | - | |||
Gross decreases-tax positions in prior period | (250 | ) | ||
Gross increases-current period tax positions | - | |||
Gross decreases-current period tax positions | - | |||
Lapse of statute of limitations | - | |||
Balance as of March 1, 2009 | $ | 702 |
The compensation expense for stock options includes an estimate for forfeitures and is recognized on a straight line basis over the |
The future compensation expense |
The risk free interest rate is based on U. S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of the grant. Volatility is based on historical volatility of the Company’s common stock. The expected annual dividend yield is based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the fiscal year 2010. The estimated term of the options is based on evaluations of the historical and expected future employee exercise behavior. |
Outstanding Options | Weighted Average Exercise Price | |||||||
Balance, February 26, 2006 | 1,003,454 | $ | 20.80 | |||||
Granted | 174,700 | 25.35 | ||||||
Exercised | (80,236 | ) | 17.85 | |||||
Terminated or expired | (31,291 | ) | 26.07 | |||||
Balance, February 25, 2007 | 1,066,627 | $ | 21.61 | |||||
Granted | 168,150 | 30.29 | ||||||
Exercised | (152,086 | ) | 17.74 | |||||
Terminated or expired | (41,952 | ) | 25.27 |
Balance, March 2, 2008 | 1,040,739 | $ | 23.50 | |||||
Granted | 146,850 | 26.36 | ||||||
Exercised | (123,649 | ) | 18.07 | |||||
Terminated or expired | (81,213 | ) | 26.72 | |||||
Balance March 1, 2009 | 982,727 | 24.35 | ||||||
Exercisable March 1, 2009 | 644,742 | $ | 22.82 |
Outstanding Options | Weighted Average Exercise Price | |||||||
Balance, February 25, 2007 | 1,066,627 | $ | 21.61 | |||||
Granted | 168,150 | 30.29 | ||||||
Exercised | (152,086 | ) | 17.74 | |||||
Terminated or expired | (41,952 | ) | 25.27 | |||||
Balance, March 2, 2008 | 1,040,739 | $ | 23.50 | |||||
Granted | 146,850 | 26.36 | ||||||
Exercised | (123,649 | ) | 18.07 | |||||
Terminated or expired | (81,213 | ) | 26.72 | |||||
Balance, March 1, 2009 | 982,727 | $ | 24.35 | |||||
Granted | 150,450 | 24.70 | ||||||
Exercised | (70,175 | ) | 16.78 | |||||
Terminated or expired | (44,907 | ) | 26.32 | |||||
Balance February 28, 2010 | 1,018,095 | 24.89 | ||||||
Exercisable February 28, 2010 | 675,029 | $ | 24.11 |
Weighted Average | Weighted Average | |||||||||||||||
Shares Subject | Grant Date Fair | Shares Subject | Grant Date Fair | |||||||||||||
to Options | Value | to Options | Value | |||||||||||||
Nonvested, beginning of year | 361,372 | $ | 9.90 | 337,985 | $ | 7.16 | ||||||||||
Granted | 146,850 | 3.22 | 150,450 | 8.05 | ||||||||||||
Vested | (116,875 | ) | 9.55 | (111,094 | ) | 7.76 | ||||||||||
Terminated | (53,362 | ) | 9.69 | (34,275 | ) | 7.70 | ||||||||||
Nonvested, end of year | 337,985 | $ | 7.16 | 343,066 | $ | 7.44 |
9. | STOCKHOLDERS’ EQUITY |
a. | Stockholders’ Rights Plan – On July 20, 2005, the Board of Directors renewed the Company’s stockholders’ rights plan on substantially the same terms as its previous rights plan which expired in July 2005. In accordance with the Company’s stockholders’ rights plan, a right (the “Right”) to purchase from the Company a unit consisting of one one-thousandth (1/1000) of a share (a “Unit”) of Series B Junior Participating Preferred Stock, par value $1.00 per share (the “Series B Preferred Stock”), at a purchase price of $150 (the “Purchase Price”) per Unit, subject to adjustment, is attached to each outstanding share of the Company’s common stock. The Rights expire on July |
b. | Reserved Common Shares – At |
c. | Accumulated Other Comprehensive Income – Accumulated balances related to each component of other comprehensive income were as follows: |
March 1, 2009 | March 2, 2008 | February 28, 2010 | March 1, 2009 | |||||||||||||
Currency translation adjustment | $ | 1,568 | $ | 7,227 | $ | 1,606 | $ | 1,568 | ||||||||
Unrealized gains (losses) on investments | 54 | 209 | 10 | 54 | ||||||||||||
Accumulated balance | $ | 1,622 | $ | 7,436 | $ | 1,616 | $ | 1,622 |
d. | Dividends Declared - On July |
10. | EARNINGS PER SHARE |
Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potential common stock equivalents outstanding during the period. Stock options are the only common stock equivalents; and the number of dilutive options is computed using the treasury stock method. |
2009 | 2008 | 2007 | ||||||||||
Net earnings from continuing operations | $ | 18,514 | $ | 34,679 | $ | 39,791 | ||||||
Gain from discontinued operations | 16,486 | - | - | |||||||||
Net earnings | $ | 35,000 | $ | 34,679 | $ | 39,791 | ||||||
Weighted average common shares outstanding for basic EPS | 20,441,354 | 20,305,199 | 20,175,422 | |||||||||
Net effect of dilutive options | 44,762 | 59,004 | 141,418 | |||||||||
Weighted average shares outstanding for diluted EPS | 20,486,116 | 20,364,203 | 20,316,840 | |||||||||
Basic earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.71 | $ | 1.97 | ||||||
Gain from discontinued operations | 81 | - | - | |||||||||
Basic earnings per share | $ | 1.71 | $ | 1.71 | $ | 1.97 | ||||||
Diluted earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | .90 | $ | 1.70 | $ | 1.96 | ||||||
Gain from discontinued operations | .81 | - | - | |||||||||
Diluted earnings per share | $ | 1.71 | $ | 1.70 | $ | 1.96 |
2010 | 2009 | 2008 | ||||||||||
Net earnings from continuing operations | $ | 25,359 | $ | 18,514 | $ | 34,679 | ||||||
Gain from discontinued operations | - | 16,486 | - | |||||||||
Net earnings | $ | 25,359 | $ | 35,000 | $ | 34,679 | ||||||
Weighted average common shares outstanding for basic EPS | 20,521,697 | 20,441,354 | 20,305,199 | |||||||||
Net effect of dilutive options | 25,400 | 44,762 | 59,004 | |||||||||
Weighted average shares outstanding for diluted EPS | 20,547,097 | 20,486,116 | 20,364,203 | |||||||||
Basic earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | 1.24 | $ | 0.90 | $ | 1.71 | ||||||
Gain from discontinued operations | - | 0.81 | - | |||||||||
Basic earnings per share | $ | 1.24 | $ | 1.71 | $ | 1.71 | ||||||
Diluted earnings per share: | ||||||||||||
Net earnings from continuing operations | $ | 1.23 | $ | 0.90 | $ | 1.70 | ||||||
Gain from discontinued operations | - | 0.81 | - | |||||||||
Diluted earnings per share | $ | 1.23 | $ | 1.71 | $ | 1.70 |
11. | DISCONTINUED OPERATIONS | |
In the 2009 fiscal year, the Company recognized a gain of $16,486 related to the reversal of these liabilities as a result of the Company’s judgment that the incurrence of such liabilities was remote based on certain legal proceedings in Germany. |
March 2, | ||||
2008 | ||||
Environmental and other liabilities | $ | 5,087 | ||
Pension liabilities | 12,094 | |||
Total liabilities | $ | 17,181 |
12. | REALIGNMENT AND SEVERANCE CHARGES |
63 translation adjustments of $3,957. In the 2009 fiscal year third quarter, the |
EMPLOYEE BENEFIT PLANS |
a. | Profit Sharing Plan - The Company and certain of its subsidiaries have a non-contributory profit sharing retirement plan covering |
b. | Savings Plan - The Company also sponsors a 401(k) savings plan, pursuant to which the contributions of employees of certain subsidiaries were partially matched by the Company in the amounts of $176, $210 |
COMMITMENTS |
The Company conducts certain of its operations in leased facilities, which include several manufacturing plants, warehouses and offices. The leases on facilities are for terms of up to 10 years, the latest of which expires in 2015. Many of the leases contain renewal options for periods ranging from one to ten years and require the Company to pay real estate taxes and other operating costs. The latest land lease expiration is 2054. |
Fiscal Year | Amount | Amount | ||||||
2010 | $ | 2,335 | ||||||
2011 | 1,935 | 1,935 | ||||||
2012 | 1,359 | 1,359 | ||||||
2013 | 966 | 966 | ||||||
2014 | 679 | 679 | ||||||
2015 | 589 | |||||||
Thereafter | 1,480 | 891 | ||||||
$ | 8,754 | $ | 6,419 |
CONTINGENCIES |
a. | Litigation - The Company is subject to a small number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. |
b. | Environmental Contingencies - The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the "EPA") or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the "Superfund Act") or similar state law as potentially responsible parties in connection with alleged releases of |
c. | Acquisition – The Company is obligated to pay up to an additional |
by the Company’s wholly owned subsidiary, Park Aerospace Structures Corp., of substantially all the assets and business of Nova Composites, Inc., a manufacturer of composite parts and assemblies and the tooling for such parts and assemblies, located in Lynnwood, Washington, in addition to a cash purchase price of |
GEOGRAPHIC REGIONS |
Fiscal Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Sales: | ||||||||||||
North America | $ | 87,361 | $ | 103,772 | $ | 120,953 | ||||||
Europe | 18,451 | 22,804 | 30,533 | |||||||||
Asia | 69,874 | 73,486 | 90,366 | |||||||||
Total sales | $ | 175,686 | $ | 200,062 | $ | 241,852 | ||||||
Long-lived assets: | ||||||||||||
North America | $ | 40,020 | $ | 41,423 | $ | 25,069 | ||||||
Europe | 1,264 | 1,112 | 4,552 | |||||||||
Asia | 19,141 | 21,113 | 26,747 | |||||||||
Total long-lived assets | $ | 60,425 | $ | 63,648 | $ | 56,368 |
Fiscal Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Sales: | ||||||||||||
North America | $ | 103,772 | $ | 120,953 | $ | 137,897 | ||||||
Europe | 22,804 | 30,533 | 37,363 | |||||||||
Asia | 73,486 | 90,366 | 82,117 | |||||||||
Total sales | $ | 200,062 | $ | 241,852 | $ | 257,377 | ||||||
Long-lived assets: | ||||||||||||
North America | $ | 41,423 | $ | 25,069 | $ | 25,600 | ||||||
Europe | 1,112 | 4,552 | 4,659 | |||||||||
Asia | 21,113 | 26,747 | 25,331 | |||||||||
Total long-lived assets | $ | 63,648 | $ | 56,368 | $ | 55,590 |
CUSTOMER AND SUPPLIER CONCENTRATIONS |
a. | Customers - Sales to Sanmina-SCI Corporation were |
While no other customer accounted for 10% or more of the Company's total worldwide sales in fiscal years 2010, 2009 and 2008, |
b. | Sources of Supply - The principal materials used in the manufacture of the Company's high-technology printed circuit materials and advanced composite materials, parts and |
identified |
19. |
Current assets | $ | 181 | $ | 181 | ||||
Fixed assets | 174 | 174 | ||||||
Intangibles | 4,457 | |||||||
Goodwill and other intangibles | 5,482 | |||||||
Total assets acquired | 4,812 | 5,837 | ||||||
Current liabilities assumed | (84 | ) | (84 | ) | ||||
Total Purchase Price | $ | 4,728 | $ | 5,753 |
Quarter | Quarter | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Fiscal 2010: | ||||||||||||||||||||||||||||||||
Net sales | $ | 36,697 | $ | 42,518 | $ | 46,088 | $ | 50,383 | ||||||||||||||||||||||||
Gross profit | 9,208 | 10,948 | 13,761 | 17,685 | ||||||||||||||||||||||||||||
Net earnings | 3,074 | 4,755 | 7,169 | 10,361 | ||||||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings per share | $ | 0.15 | $ | 0.23 | $ | 0.35 | $ | 0.50 | ||||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings per share | $ | 0.15 | $ | 0.23 | $ | 0.35 | $ | 0.50 | ||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 20,471 | 20,534 | 20,541 | 20,541 | ||||||||||||||||||||||||||||
Diluted | 20,482 | 20,554 | 20,573 | 20,579 | ||||||||||||||||||||||||||||
Fiscal 2009: | ||||||||||||||||||||||||||||||||
Net sales | $ | 59,800 | $ | 55,599 | $ | 49,166 | $ | 35,497 | $ | 59,800 | $ | 55,599 | $ | 49,166 | $ | 35,497 | ||||||||||||||||
Gross profit | 14,573 | 10,953 | 9,786 | 8,112 | 14,573 | 10,953 | 9,786 | 8,112 | ||||||||||||||||||||||||
Net earnings from continuing | ||||||||||||||||||||||||||||||||
operations | 7,557 | 4,937 | 2,934 | 3,086 | ||||||||||||||||||||||||||||
Net earnings from continuing operations | 7,557 | 4,937 | 2,934 | 3,086 | ||||||||||||||||||||||||||||
Discontinued operations | - | - | - | 16,486 | - | - | - | 16,486 | ||||||||||||||||||||||||
Net Earnings | 7,557 | 4,937 | 2,934 | 19,572 | 7,557 | 4,937 | 2,934 | 19,572 | ||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.15 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.15 | ||||||||||||||||
Discontinued operations | $ | - | $ | - | $ | - | $ | 0.81 | $ | - | $ | - | $ | - | $ | 0.81 | ||||||||||||||||
Net earnings per share | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.96 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.96 | ||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.15 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.15 | ||||||||||||||||
Discontinued operations | $ | - | $ | - | $ | - | $ | 0.81 | $ | - | $ | - | $ | - | $ | 0.81 | ||||||||||||||||
Net earnings per share | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.96 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 0.96 | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 20,366 | 20,458 | 20,471 | 20,471 | 20,366 | 20,458 | 20,471 | 20,471 | ||||||||||||||||||||||||
Diluted | 20,430 | 20,520 | 20,512 | 20,483 | 20,430 | 20,520 | 20,512 | 20,483 | ||||||||||||||||||||||||
Fiscal 2008: | ||||||||||||||||||||||||||||||||
Net sales | $ | 57,077 | $ | 60,541 | $ | 63,653 | $ | 60,581 | ||||||||||||||||||||||||
Gross profit | 14,109 | 16,435 | 16,076 | 15,834 | ||||||||||||||||||||||||||||
Net earnings | 7,411 | 9,160 | 8,777 | 9,331 | ||||||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings per share | $ | 0.37 | $ | 0.45 | $ | 0.43 | $ | 0.46 | ||||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Net earnings per share | $ | 0.37 | $ | 0.45 | $ | 0.43 | $ | 0.46 | ||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 20,206 | 20,325 | 20,340 | 20,347 | ||||||||||||||||||||||||||||
Diluted | 20,235 | 20,405 | 20,452 | 20,362 | ||||||||||||||||||||||||||||
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
Not applicable. |
9A. | CONTROLS AND PROCEDURES. |
9B. | OTHER INFORMATION. |
10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Page | |||
(a) Documents filed as a part of this Report | |||
(1) Financial Statements: | |||
The following Consolidated Financial Statements of the Company are included in Part II, Item 8: | |||
Report of Independent Registered Public Accounting Firm | |||
47 | |||
48 | |||
Statements of | 49 | ||
50 | |||
Statements of Cash Flows | 51 | ||
Notes to Consolidated Financial Statements (1-19) | 52 | ||
(2) Financial Statement Schedules: | |||
The following additional information should be read in conjunction with the Consolidated Financial Statements of the Registrant described in Item 15(a)(1) above: | |||
Schedule II – Valuation and Qualifying Accounts | 79 | ||
All other schedules have been omitted because they are not applicable or not required, or the information is included elsewhere in the financial statements or notes thereto. | |||
(3) Exhibits: | 80 | ||
The information required by this Item relating to Exhibits to this Report is included in the Exhibit Index beginning on page | |||
Date: May | PARK ELECTROCHEMICAL CORP. | |
By: | /s/ Brian E. Shore | |
Brian E. Shore, | ||
President and Chief Executive Officer |
Signature | Title | Date | ||
/s/ Brian E. Shore | Chairman of the Board, President and | |||
Brian E. Shore | Chief Executive Officer and Director | |||
(principal executive officer) | May | |||
/s/ David R. Dahlquist | Vice President and Chief Financial | |||
David R. Dahlquist | Officer | |||
(principal financial officer) | May 12, 2010 | |||
/s/ P. Matthew Farabaugh | Vice President and Controller | |||
P. Matthew Farabaugh | (principal accounting | May | ||
/s/ Dale Blanchfield | ||||
Dale Blanchfield | Director | May | ||
/s/ Lloyd Frank | ||||
Lloyd Frank | Director | May | ||
Emily J. Groehl | Director | May , 2010 | ||
/s/ Steven T. Warshaw | ||||
Steven T. Warshaw | Director | May |
Column A | Column B | Column C Additions | Column D | Column E | Column B | Column C Additions | Column D | Column E | ||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Costs and Expenses | Other | Reductions | Balance at End of Period | Balance at Beginning of Period | Costs and Expenses | Other | Reductions | Balance at End of Period | ||||||||||||||||||||||||||||||
DEFERRED INCOME TAX ASSET VALUATION ALLOWANCE: | ||||||||||||||||||||||||||||||||||||||||
52 weeks ended February 28, 2010 | $ | 8,787,000 | $ | 1,027,000 | $ | - | $ | - | $ | 9,814,000 | ||||||||||||||||||||||||||||||
52 weeks ended March 1, 2009 | $ | 13,014,000 | $ | 450,000 | $ | - | $ | (4,677,000 | ) | $ | 8,787,000 | $ | 13,014,000 | $ | 450,000 | $ | - | $ | (4,677,000 | ) | $ | 8,787,000 | ||||||||||||||||||
53 weeks ended March 2, 2008 | $ | 12,469,000 | $ | 545,000 | $ | - | $ | - | $ | 13,014,000 | $ | 12,469,000 | $ | 545,000 | $ | - | $ | - | $ | 13,014,000 | ||||||||||||||||||||
52 weeks ended February 25, 2007 | $ | 14,683,000 | $ | 1,286,000 | $ | - | $ | (3,500,000 | ) | $ | 12,469,000 | |||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Other | ||||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Cost and Expenses | Accounts Written Off | Translation Adjustment | Balance at End of Period | |||||||||||||||
(A) | ||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS: | ||||||||||||||||||||
52 weeks ended March 1, 2009 | $ | 750,000 | $ | (48,000 | ) | $ | (10,000 | ) | $ | (5,000 | ) | $ | 687,000 | |||||||
53 weeks ended March 2, 2008 | $ | 1,144,000 | $ | (166,000 | ) | $ | (190,000 | ) | $ | (38,000 | ) | $ | 750,000 | |||||||
52 weeks ended February 25, 2007 | $ | 1,930,000 | $ | (623,000 | ) | $ | (140,000 | ) | $ | (23,000 | ) | $ | 1,144,000 | |||||||
Column A | Column B | Column C | Column D Other | Column E | ||||||||||||||||
Description | Balance at Beginning of Period | Charged to Cost and Expenses | Accounts Written Off | Translation Adjustment | Balance at End of Period | |||||||||||||||
(A) | ||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS: | ||||||||||||||||||||
52 weeks ended February 28, 2010 | $ | 687,000 | $ | (109,000 | ) | $ | - | $ | - | $ | 578,000 | |||||||||
52 weeks ended March 1, 2009 | $ | 750,000 | $ | (48,000 | ) | $ | (10,000 | ) | $ | (5,000 | ) | $ | 687,000 | |||||||
53 weeks ended March 2, 2008 | $ | 1,144,000 | $ | (166,000 | ) | $ | (190,000 | ) | $ | (38,000 | ) | $ | 750,000 |
(A) | Uncollectible accounts, net of recoveries. |
Exhibit Numbers | Description | Page | ||
3.1 | Restated Certificate of Incorporation, dated March 28, 1989, filed with the Secretary of State of the State of New York on April 10, 1989, as amended by Certificate of Amendment of the Certificate of Incorporation, increasing the number of authorized shares of Common stock from 15,000,000 to 30,000,000 shares, dated July 12, 1995, filed with the Secretary of State of the State of New York on July 17, 1995, and by Certificate of Amendment of the Certificate of Incorporation, amending certain provisions relating to the rights, preferences and limitations of the shares of a series of Preferred Stock, | - | ||
3.2 | Certificate of Amendment of the Certificate of Incorporation, increasing the number of authorized shares of Common Stock from 30,000,000 to 60,000,000 shares, dated October 10, 2000, filed with the Secretary of State of the State of New York on October 11, 2000 (Reference is made to Exhibit 3.02 of the Company’s Annual Report on Form 10-K for the fiscal year ended March 2, 2003, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
3.3 | Certificate of Amendment of the Certificate of Incorporation, canceling Series A Preferred Stock of the Company and authorizing a new Series B Junior Participating Preferred Stock of the Company, dated July 21, 2005, filed with the Secretary of the State of New York on July 21, 2005 (Reference is made to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on July 21, 2005, Commission File No. 1-4415, which is incorporated herein by reference) | - | ||
3.4 | By-Laws, as amended November 15, 2007 (Reference is made to Exhibit 3 of the Company's Current Report on Form 8-K filed on November 21, 2007, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
4.1 | Rights Agreement, dated as of July 20, 2005, between the Company and Registrar and Transfer Company, as Rights Agent, relating to the Company’s Preferred Stock Purchase Rights. (Reference is made to Exhibit 1 to Form 8-A filed on July 21, 2005, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.1 | Lease dated December 12, 1989 between Nelco Products, Inc. and James Emmi regarding real property located at 1100 East Kimberly Avenue, Anaheim, California and letter dated | - |
Exhibit Numbers | Description | Page | ||
10.2 | Lease dated December 12, 1989 between Nelco Products, Inc. and James Emmi regarding real property located at 1107 East Kimberly Avenue, Anaheim, California and letter dated | - | ||
10.3 | Lease Agreement dated August 16, 1983 and Exhibit C, First Addendum to Lease, between Nelco Products, Inc. and TCLW/Fullerton regarding real property located at 1411 E. Orangethorpe Avenue, Fullerton, California (Reference is made to Exhibit 10.03 of the Company's Annual Report on Form 10-K for the fiscal year ended March 3, 2002, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.3(a) | Second Addendum to Lease dated January 26, 1987 to Lease Agreement dated August 16, 1983 (see Exhibit | - | ||
10.3(b) | Third Addendum to Lease dated January 7, 1991 and Fourth Addendum to Lease dated January 7, 1991 to Lease Agreement dated August 16, 1983 (see Exhibit | - | ||
10.3(c) | Fifth Addendum to Lease dated July 5, 1995 to Lease dated August 16, 1983 (see Exhibit 10.03 hereto) between Nelco Products, Inc. and TCLW/Fullerton regarding real property located at 1411 E. Orangethorpe Avenue, Fullerton, California (Reference is made to Exhibit | - | ||
10.4 | Lease Agreement dated May 26, 1982 between Nelco Products Pte. Ltd. (lease was originally entered into by Kiln | - |
Exhibit Numbers | Description | Page | ||
10.4(a) | Deed of Assignment, dated April 17, 1986 between Nelco | - | ||
10.5 | 1992 Stock Option Plan of the Company, as amended by First Amendment thereto. (Reference is made to Exhibit 10.06(b) of the Company's Annual Report on Form 10-K for the fiscal year ended March 1, 1998, Commission File No. 1-4415, which is incorporated herein by reference. This exhibit is a management | - | ||
10.6 | Lease dated April 15, 1988 between FiberCote Industries, Inc. (lease was initially entered into by USP Composites, Inc., which subsequently changed its name to FiberCote Industries, Inc.) and Geoffrey Etherington, II regarding real property located at 172 East Aurora Street, Waterbury, Connecticut (Reference is made to Exhibit 10.07 of the Company's Annual Report on Form 10-K for the fiscal year ended March 3, 2002, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.6(a) | Amendment to Lease dated December 21, 1992 to Lease dated April 15, 1988 (see Exhibit | - | ||
10.6(b) | Letter dated June 30, 1997 from FiberCote Industries, Inc. to Geoffrey Etherington II extending the Lease dated April 15, 1988 (see Exhibit | - | ||
10.7 | Lease dated December 12, 1990 between Neltec, Inc. and NZ Properties, Inc. regarding real property located at 1420 W. 12th Place, Tempe, Arizona. (Reference is made to Exhibit 10.13 of the Company's Annual Report on Form 10-K for the fiscal year ended March 2, 1997, Commission File No. 1-4415, which is incorporated herein by reference.) |
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Exhibit Numbers | Description | Page | ||
10.7(a) | Letter dated January 8, 1996 from Neltec, Inc. to NZ Properties, Inc. exercising its option to extend the Lease dated December 12, 1990 (see Exhibit 10.7 hereto) between Neltec, Inc. and NZ Properties, Inc. regarding real property located at 1420 W. 12th Place, Tempe, Arizona. (Reference is made to Exhibit 10.13(a) of the Company's Annual Report on Form 10-K for the fiscal year ended March 2, 1997, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.7(b) | Letter dated January 25, 2001 from Neltec, Inc. to NZ Properties, Inc. exercising its option to extend the Lease dated December 12, 1990 (see Exhibit 10.7 hereto) between Neltec, Inc. and NZ Properties, Inc. regarding real estate property located at 1420 W. 12th Place, Tempe, Arizona (Reference is made to Exhibit 10.7(b) of the Company’s Annual Report on Form l0-K for the fiscal year ended February 26, 2006, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.7(c) | Letter dated February 14, 2006 from Neltec, Inc. to REB Ltd. Properties, Inc. exercising its option to extend the Lease dated December 12, 1990 (see Exhibit 10.7 hereto) between Neltec, Inc. and NZ Properties, Inc. regarding real property located at 1420 W. 12th Place, Tempe, Arizona (Reference is made to Exhibit 10.7(c) of the Company’s Annual Report on Form 10-K for the fiscal year ended February 26, 2006, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
10.8 | 2002 Stock Option Plan of the Company (Reference is made to Exhibit 10.01 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 1, 2002, Commission File No. 1-4415, which is incorporated herein by reference. This exhibit is a management contract or compensatory plan or arrangement.) | - | ||
10.9 | Forms of Incentive Stock Option Contract for employees, Non-Qualified Stock Option Contract for employees and Non-Qualified Stock Option Contract for directors under the 2002 Stock Option Plan of the Company (Reference is made to Exhibit 10.10 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 27, 2005, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
14.1 | Code of Ethics for Chief Executive Officer and Senior Financial Officers adopted on May 6, 2004 (Reference is made to Exhibit 14.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2004, Commission File No. 1-4415, which is incorporated herein by reference.) | - | ||
21.1 | Subsidiaries of the Company | 85 |
located at 15 Governor Drive in the Stewart International Airport Industrial Park, New Windsor, New York (Reference is made to Exhibit 10.13(b) of the Company's Annual Report on Form 10-K for the fiscal year ended March 3, 2002, Commission File No. 1-4415, which is incorporated herein by reference.) | - | |
10.9 | 2002 Stock Option Plan of the Company (Reference is made to Exhibit 10.01 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 1, 2002, Commission File No. 1-4415, which is incorporated herein by reference. This exhibit is a management contract or compensatory plan or arrangement.) | - |
10.10 | Forms of Incentive Stock Option Contract for employees, Non-Qualified Stock Option Contract for employees and Non-Qualified Stock Option Contract for directors under the 2002 Stock Option Plan of the Company (Reference is made to Exhibit 10.10 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 27, 2005, Commission File No. 1-4415, which is incorporated herein by reference.) | - |
14.1 | Code of Ethics for Chief Executive Officer and Senior Financial Officers adopted on May 6, 2004 (Reference is made to Exhibit 14.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2004, Commission File No. 1-4415, which is incorporated herein by reference.) | - |
21.1 | Subsidiaries of the Company | 82 |
23.1 | Consent of Independent Registered Public Accounting Firm (Grant Thornton LLP) | 83 |
31.1 | Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a) | 84 |
31.2 | Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a) | 86 |
32.1 | Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002 | 88 |
32.2 | Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 89 |
Exhibit Numbers | Description | Page | ||
23.1 | Consent of Independent Registered Public Accounting Firm (Grant Thornton LLP) | 86 | ||
31.1 | Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a) | 87 | ||
31.2 | Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a) | 89 | ||
32.1 | Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002 | 91 | ||
32.2 | Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 92 |