| Contact: Karen Maffucci | 48 South Service Road |
| | Melville, NY 11747 |
| | (631) 465-3600 |
PARK ELECTROCHEMICAL CORP. REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
Melville, New York, April 30, 2009…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $35,497,000 for the fourth quarter ended March 1, 2009 compared to net sales of $60,581,000 for the fourth quarter of last year. Park’s net sales for the fiscal year ended March 1, 2009 were $200,062,000 compared to net sales of $241,852,000 for the prior year.
Park reported net earnings from continuing operations before special items of $2,861,000 for the fourth quarter ended March 1, 2009 compared to net earnings from continuing operations before special items of $9,193,000 for the fourth quarter of last year. In the fourth quarter ended March 1, 2009, the Company recorded one-time pre-tax charges of $5,687,000 related to restructurings and asset impairments and recognized tax benefits of $1,235,000 related to these charges and a tax benefit of $4,677,000 related to the elimination of certain valuation allowances resulting principally from the closure of the Company’s New England Laminates Co., Inc. facility located in Newburgh, New York. Additionally, during the fourth quarter ended March 1, 2009, the Company recorded a discontinued operations benefit of $16,486,000 related to the elimination of a liability from discontinued operations of its Dielektra GmbH subsidiary located in Germany. In the fourth quarter ended March 2, 2008, the Company recorded a one-time pre-tax charge of $1,362,000 for the restructuring and workforce reduction at the Company’s Neltec Europe SAS electronic materials business unit located in Mirebeau, France and a tax benefit of $1,500,000 relating to the reduction of tax reserves.
Accordingly, net earnings from continuing operations were $3,086,000 for the fourth quarter ended March 1, 2009 compared to net earnings from continuing operations of $9,331,000 for last year’s fourth quarter. Net earnings were $19,572,000 for the fourth quarter ended March 1, 2009 compared to net earnings of $9,331,000 for last year’s fourth quarter.
For the year ended March 1, 2009, Park reported net earnings from continuing operations before special items of $18,859,000 compared to net earnings from continuing operations before special items of $34,541,000 for the prior fiscal year. During the 2009 fiscal year, the Company recorded a one-time pre-tax charge of $570,000 related to restructurings at certain of the Company’s North American and European business units and one-time pretax charges of $5,687,000 related to the restructurings and asset impairments mentioned above and recognized related tax benefits of $1,235,000 mentioned above and a tax benefit of $4,677,000 related to the elimination of valuation allowances mentioned above. Additionally, during the 2009 fiscal year, the Company recorded the discontinued operations benefit of $16,486,000 mentioned above. During the 2008 fiscal year, the Company recorded a charge of $1,362,000 for the restructuring and workforce reduction at the Company’s Neltec Europe SAS electronic materials business unit mentioned above and a tax benefit of $1,500,000 relating to the reduction of tax reserves mentioned above.
Accordingly, net earnings from continuing operations were $18,514,000 for the year ended March 1, 2009 compared to net earnings from continuing operations of $34,679,000 for year ended March 2, 2008. Net earnings were $35,000,000 for the year ended March 1, 2009 compared to net earnings of $34,679,000 for year ended March 2, 2008.
Park reported diluted earnings per share from continuing operations before special items of $0.14 for the fourth quarter ended March 1, 2009 compared to $0.45 for last year’s fourth quarter. Diluted earnings per share from continuing operations were $0.15 for the quarter ended March 1, 2009 compared to $0.46 for last year’s fourth quarter. Diluted earnings per share were $0.96 for the quarter ended March 1, 2009 compared to $0.46 for last year’s fourth quarter.
For the fiscal year ended March 1, 2009, Park reported diluted earnings per share from continuing operations before special items of $0.92 compared to $1.70 for the prior fiscal year. Diluted earnings per share from continuing operations were $0.90 for the year ended March 1, 2009 compared to $1.70 for the prior fiscal year. Diluted earnings per share were $1.71 for the fiscal year ended March 1, 2009 compared to $1.70 for the prior fiscal year.
The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (866) 393-8397 in the United States and Canada and (706) 902-3776 in other countries and the required passcode is 97029030.
For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT on Thursday, April 30, 2009 through 11:59 p.m. EDT on Monday, May 4, 2009. The conference call replay can be accessed by dialing (800) 642-1687 in the United States and Canada and (706) 645-9291 in other countries and entering passcode 97029030 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 generally accepted accounting principles (“GAAP”) financial measures, which include special items, such as restructuring and workforce reduction charges, asset impairments, tax benefits and elimination of valuation allowances. 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 and parts principally for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. Park also specializes in the manufacture of complex composite aircraft and space vehicle parts. The Company’s manufacturing facilities are located in Singapore, China, France, Connecticut, Kansas, Arizona, California and Washington.
Additional corporate information is available on the Company’s web site at www.parkelectro.com.
The performance table (in thousands, except per share amounts–unaudited):
| | | 13 Weeks Ended 3/01/09 | | | 14 Weeks Ended 3/02/08 | | | 52 Weeks Ended 3/01/09 | | | 53 Weeks Ended 3/02/08 | |
| Basic Earnings Per Share: | | | | | | | | | | | | |
| Earnings from Continuing Operations | | $ | 0.15 | | | $ | 0.46 | | | $ | 0.90 | | | $ | 1.71 | |
| Discontinued Operations | | | 0.81 | | | - | | | | 0.81 | | | - | |
| | | $ | 0.96 | | | $ | 0.46 | | | $ | 1.71 | | | $ | 1.71 | |
| | | | | | | | | | | | | | | | | |
| Earnings from Continuing Operations | | | | | | | | | | | | | | | | |
| before Special Items: | | $ | 0.14 | | | $ | 0.45 | | | $ | 0.92 | | | $ | 1.70 | |
| | | | | | | | | | | | | | | | | |
| Weighted Average Shares Outstanding | | | 20,471 | | | | 20,347 | | | | 20,441 | | | | 20,305 | |
| | | | | | | | | | | | | | | | | |
| Diluted Earnings Per Share: | | | | | | | | | | | | | | | | |
| Earnings from Continuing Operations | | $ | 0.15 | | | $ | 0.46 | | | $ | 0.90 | | | $ | 1.70 | |
| Discontinued Operations | | | 0.81 | | | - | | | | 0.81 | | | - | |
| | | $ | 0.96 | | | $ | 0.46 | | | $ | 1.71 | | | $ | 1.70 | |
| Earnings from Continuing Operations | | | | | | | | | | | | | | | | |
| before Special Items | | $ | 0.14 | | | $ | 0.45 | | | $ | 0.92 | | | $ | 1.70 | |
| | | | | | | | | | | | | | | | | |
| Weighted Average Shares Outstanding | | | 20,483 | | | | 20,362 | | | | 20,486 | | | | 20,364 | |
The comparative balance sheets (in thousands):
| | | 3/01/09 | | | 3/2/08 | |
| Assets | | | | | | |
| Current Assets | | | | | | |
| Cash and Marketable Securities | | $ | 225,294 | | | $ | 213,978 | |
| Accounts Receivable, Net | | | 22,433 | | | | 37,466 | |
| Inventories | | | 10,677 | | | | 14,049 | |
| Other Current Assets | | | 5,527 | | | | 5,546 | |
| | | | | | | | | |
| Total Current Assets | | | 263,931 | | | | 271,039 | |
| | | | | | | | | |
| Fixed Assets, Net | | | 48,777 | | | | 47,188 | |
| Other Assets | | | 14,871 | | | | 9,180 | |
| | | | | | | | | |
| Total Assets | | $ | 327,579 | | | $ | 327,407 | |
| | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Accounts Payable | | $ | 8,480 | | | $ | 12,828 | |
| Accrued Liabilities | | | 11,425 | | | | 13,314 | |
| Income Taxes Payable | | | 4,381 | | | | 5,837 | |
| | | | | | | | | |
| Total Current Liabilities | | | 24,286 | | | | 31,979 | |
| | | | | | | | | |
| Deferred Income Taxes | | | 3,927 | | | | 4,851 | |
| Other Liabilities | | | 3,657 | | | | 4,224 | |
| Liabilities from Discontinued Operations | | | - | | | | 17,181 | |
| | | | | | | | | |
| Total Liabilities | | | 31,870 | | | | 58,235 | |
| | | | | | | | | |
| Stockholders’ Equity | | | 295,709 | | | | 269,172 | |
| | | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 327,579 | | | $ | 327,407 | |
| | | | | | | | | |
| Equity Per Share | | $ | 14.45 | | | $ | 13.23 | |
Detailed operating information (in thousands – unaudited):
| | | 13 Weeks | | | 14 Weeks | | | 52 Weeks | | | 53 Weeks | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | 3/1/09 | | | 3/2/08 | | | 3/1/09 | | | 3/2/08 | |
| | | | | | | | | | | | | |
| Net Sales | | $ | 35,497 | | | $ | 60,581 | | | $ | 200,062 | | | $ | 241,852 | |
| Cost of Sales | | | 27,385 | | | | 44,747 | | | | 156,638 | | | | 179,398 | |
| % | | | 77.1 | % | | | 73.9 | % | | | 78.3 | % | | | 74.2 | % |
| Gross Profit | | | 8,112 | | | | 15,834 | | | | 43,424 | | | | 62,454 | |
| % | | | 22.9 | % | | | 26.1 | % | | | 21.7 | % | | | 25.8 | % |
| Selling, General and Administrative | �� | | | | | | | | | | | | | | | |
| Expenses | | | 6,091 | | | | 7,356 | | | | 24,806 | | | | 27,159 | |
| % | | | 17.2 | % | | | 12.1 | % | | | 12.4 | % | | | 11.2 | % |
| Earnings from Operations | | | 2,021 | | | | 8,478 | | | | 18,618 | | | | 35,295 | |
| % | | | 5.7 | % | | | 14.0 | % | | | 9.3 | % | | | 14.6 | % |
| Other Income | | | 1,633 | | | | 2,381 | | | | 6,648 | | | | 9,361 | |
| % | | | 4.6 | % | | | 3.9 | % | | | 3.3 | % | | | 3.9 | % |
| Earnings Before Income Taxes | | | 3,654 | | | | 10,859 | | | | 25,266 | | | | 44,656 | |
| % | | | 10.3 | % | | | 17.9 | % | | | 12.6 | % | | | 18.5 | % |
| Income Tax Provision | | | 793 | | | | 1,666 | | | | 6,407 | | | | 10,115 | |
| Effective Tax Rate | | | 21.7 | % | | | 15.3 | % | | | 25.4 | % | | | 22.7 | % |
| Net Earnings before Special Items | | | 2,861 | | | | 9,193 | | | | 18,859 | | | | 34,541 | |
| % | | | 8.1 | % | | | 15.2 | % | | | 9.4 | % | | | 14.3 | % |
| Special Items: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Restructuring Charges | | | 1,720 | | | | 1,362 | | | | 2,290 | | | | 1,362 | |
| Impairment Charge | | | 3,967 | | | | - | | | | 3,967 | | | | - | |
| Pre-Tax Special Items | | | 5,687 | | | | 1,362 | | | | 6,257 | | | | 1,362 | |
| Income Tax Provision (Benefit) | | | (1,235 | ) | | | (1,500 | ) | | | (1,235 | ) | | | (1,500 | ) |
| Valuation Allowance Reversal | | | (4,677 | ) | | | - | | | | (4,677 | ) | | | - | |
| After-Tax Special Items | | | (225 | ) | | | (138 | ) | | | 345 | | | | (138 | ) |
| Earnings (Loss) from Continuing Operations | | | | | | | | | | | | | | | | |
| before Income taxes | | | (2,033 | ) | | | 9,497 | | | | 19,009 | | | | 43,294 | |
| Income Tax Provision (Benefit) | | | (5,119 | ) | | | 166 | | | | 495 | | | | 8,615 | |
| Net Earnings (Loss) from Continuing | | | | | | | | | | | | | | | | |
| Operations | | | 3,086 | | | | 9,331 | | | | 18,514 | | | | 34,679 | |
| Discontinued Operations Reversal | | | 16,486 | | | | - | | | | 16,486 | | | | - | |
| Net Income | | $ | 19,572 | | | $ | 9,331 | | | $ | 35,000 | | | $ | 34,679 | |
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