Park Aerospace (PKE) 8-K Park Electrochemical Corp. Reportsthird Quarter Results

Exhibit 99.1

 

		NEWS RELEASE
Contact:	Martina Bar Kochva	48 South Service Road                  Melville, NY 11747                        (631) 465-3600

PARK ELECTROCHEMICAL CORP. REPORTSTHIRD QUARTER RESULTS

AND ANNOUNCES SHARE PURCHASE AUTHORIZATION

Melville, New York, Thursday, January 8, 2015…..Park Electrochemical Corp. (NYSE-PKE) reported net sales of $34,679,000 for the third quarter ended November 30, 2014 compared to net sales of $39,678,000 for the third quarter ended December 1, 2013. Park’s net sales for the nine months ended November 30, 2014 were $125,845,000 compared to net sales of $127,613,000 for the nine months ended December 1, 2013.

Park reported net earnings before special items of $2,433,000 for the third quarter ended November 30, 2014 compared to net earnings of $4,721,000 for the third quarter of last year. During the third quarter ended November 30, 2014, the Company recorded pre-tax restructuring charges of $496,000 in connection with cost reduction initiatives in the United States and $140,000 related to the closure in fiscal year 2013 of its Nelco Technology (Zhuhai FTZ) Ltd. facility located in the Free Trade Zone in Zhuhai, China and the closure in fiscal year 2009 of its New England Laminates Co., Inc. facility located in Newburgh, New York. Accordingly, net earnings were $2,031,000 for the third quarter ended November 30, 2014.

For the nine-month period ended November 30, 2014, Park reported net earnings before special items of $16,027,000 compared to net earnings before special items of $15,833,000 for the last fiscal year’s first nine-month period. The nine-month period ended November 30, 2014 included pre-tax restructuring charges of $496,000 in connection with the cost reduction initiatives mentioned above and $490,000 related to the facility closures mentioned above. In addition, the Company recorded a pre-tax charge of $260,000 during the nine-month period ended November 30, 2014 for additional fees incurred in connection with the 2014 fiscal year-end audit. 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. Accordingly, net earnings were $15,202,000 for the nine-month period ended November 30, 2014 compared to net earnings of $17,695,000 for the nine-month period ended December 1, 2013.

Park reported basic and diluted earnings per share before special items of $0.12 for the third quarter ended November 30, 2014 compared to basic and diluted earnings per share before special items of $0.23 for last year’s third quarter. Basic and diluted earnings per share were $0.10 for the third quarter ended November 30, 2014 compared to basic and diluted earnings per share of $0.23 for last year’s third quarter.

Park reported basic and diluted earnings per share before special items of $0.77 and $0.76, respectively, for the nine months ended November 30, 2014 compared to basic and diluted earnings per share before special items of $0.76 for the nine months ended December 1, 2013. Basic and diluted earnings per share were $0.73 and $0.72, respectively, for the nine months ended November 30, 2014 compared to basic and diluted earnings per share of $0.85 for the nine months ended December 1, 2013.

The Company also announced that its Board of Directors has authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,250,000 shares of its Common Stock, representing approximately 6% of the Company’s 20,945,634 total outstanding shares as of the close of business on January 7, 2015. This authorization supersedes the unused prior Board of Directors’ authorizations to purchase shares of the Company’s Common Stock. Purchases by the Company pursuant to this Board of Directors’ authorization may occur immediately and from time to time in the future. Shares purchased by the Company will be retained as treasury stock and will be available for use under the Company’s stock option plan and for other corporate purposes. Any such share purchases by the Company would be in addition to the Company’s prior returns of capital to its shareholders in the form of regular and special cash dividends of $14.30 per share and a total of approximately $294 million since the 2005 fiscal year and any regular or special cash dividends which may be paid by the Company in the future. The Company has paid a regular cash dividend every quarter since 1985.

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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 (844) 466-4114 in the United States and Canada and (765) 507-2654 in other countries and the required passcode is 60182608.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Wednesday, January 14, 2015. The conference call replay can be accessed by dialing (855) 859-2056 in the United States and Canada and (404) 537-3406 in other countries and entering passcode 60182608 or on the Company's web site atwww.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 atwww.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 restructuring charges and tax benefits. 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 and low volume tooling 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 atwww.parkelectro.com

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

	13 Weeks Ended								39 Weeks Ended
	11/30/14			12/1/13		8/31/14			11/30/14			12/1/13
Sales	$	34,679		$	39,678	$	42,349		$	125,845		$	127,613
Net Earnings before Special Items1	$	2,433		$	4,721	$	5,015		$	16,027		$	15,833
Special Items net of Tax		(402	)		-		(60	)		(825	)		1,862
Net Earnings	$	2,031		$	4,721	$	4,955		$	15,202		$	17,695
Basic and Diluted Earnings per Share:
Basic Earnings before Special Items1	$	0.12		$	0.23	$	0.24		$	0.77		$	0.76
Special Items		(0.02	)		-		-			(0.04	)		0.09
Basic Earnings (Loss) per Share	$	0.10		$	0.23	$	0.24		$	0.73		$	0.85
Diluted Earnings before Special Items1	$	0.12		$	0.23	$	0.24		$	0.76		$	0.76
Special Items		(0.02	)		-		-			(0.04	)		0.09
Diluted Earnings (Loss) per Share	$	0.10		$	0.23	$	0.24		$	0.72		$	0.85
Weighted Average Shares Outstanding:
Basic		20,947			20,857		20,925			20,917			20,840
Diluted		20,989			20,917		21,029			21,002			20,871

¹Refer to "Detailed operating information" below for information regarding Special Items.                    

Comparative balance sheets(in thousands):

	11/30/2014		3/2/2014
	(unaudited)
Assets
Current Assets
Cash and Marketable Securities	$	285,307	$	270,356
Accounts Receivable, Net		20,975		22,881
Inventories		14,197		13,871
Prepaid Expenses and Other Current Assets		3,105		4,132
Total Current Assets		323,584		311,240
Fixed Assets, Net		27,362		29,674
Restricted Cash		25,000		25,000
Other Assets		12,866		11,179
Total Assets	$	388,812	$	377,093
Liabilities and Shareholders' Equity
Current Liabilities
Current Portion of Long-Term Debt	$	17,500	$	10,000
Accounts Payable		4,622		6,109
Accrued Liabilities		5,686		5,139
Income Taxes Payable		4,321		2,995
Total Current Liabilities		32,129		24,243
Long-Term Debt		86,500		94,000
Deferred Income Taxes		58,124		58,124
Other Liabilities		261		183
Total Liabilities		177,014		176,550
Shareholders’ Equity		211,798		200,543
Total Liabilities and Shareholders' Equity	$	388,812	$	377,093
Additional information
Equity per Share	$	10.11	$	9.60
Total Cash, Restricted Cash and Marketable Securities	$	310,307	$	295,356

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Detailed operating information (in thousands – unaudited):

	13 Weeks Ended November 30, 2014									13 Weeks Ended December 1, 2013								13 Weeks Ended August 31, 2014
	GAAP			Specials Items			Before Special Items			GAAP			Specials Items		Before Special Items			GAAP			Specials Items			Before Special Items
Net Sales	$	34,679					$	34,679		$	39,678				$	39,678		$	42,349					$	42,349
Cost of Sales		26,081						26,081			28,640					28,640			30,178						30,178
%		75.2	%					75.2	%		72.2	%				72.2	%		71.3	%					71.3	%
Gross Profit		8,598						8,598			11,038					11,038			12,171						12,171
%		24.8	%					24.8	%		27.8	%				27.8	%		28.7	%					28.7	%
Selling, General & AdministrativeExpenses		5,754			-			5,754			6,106					6,106			6,252			-			6,252
%		16.6	%					16.6	%		15.4	%				15.4	%		14.8	%					14.8	%
Restructuring Charge		636			(636	)		-			-			-		-			83			(83	)		-
%		1.8	%					0.0	%		0.0	%				0.0	%		0.2	%					0.0	%
Earnings from Operations		2,208			636			2,844			4,932			-		4,932			5,836			83			5,919
%		6.4	%					8.2	%		12.4	%				12.4	%		13.8	%					14.0	%
Interest Income		222						222			139					139			226						226
%		0.6	%					0.6	%		0.4	%				0.4	%		0.5	%					0.5	%
Interest Expense		361						361			187					187			360						360
%		1.0	%					1.0	%		0.5	%				0.5	%		0.9	%					0.9	%
Net Interest Expense		(139	)					(139	)		(48	)				(48	)		(134	)					(134	)
%		-0.4	%					-0.4	%		-0.1	%				-0.1	%		-0.3	%					-0.3	%
Earnings before Income Taxes		2,069			636			2,705			4,884			-		4,884			5,702			83			5,785
%		6.0	%					7.8	%		12.3	%				12.3	%		13.5	%					13.7	%
Income Tax (Benefit) Provision		38			234			272			163			-		163			747			23			770
Effective Tax Rate		1.8	%					10.1	%		3.3	%				3.3	%		13.1	%					13.3	%
Net Earnings		2,031			402			2,433			4,721			-		4,721			4,955			60			5,015
%		5.9	%					7.0	%		11.9	%				11.9	%		11.7	%					11.8	%

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

	39 Weeks Ended November 30, 2014									39 Weeks Ended December 1, 2013
	GAAP			Specials Items			Before Special Items			GAAP			Specials Items			Before Special Items
Net Sales	$	125,845					$	125,845		$	127,613					$	127,613
Cost of Sales		88,147						88,147			89,963						89,963
%		70.0	%					70.0	%		70.5	%					70.5	%
Gross Profit		37,698						37,698			37,650						37,650
%		30.0	%					30.0	%		29.5	%					29.5	%
Selling, General & AdministrativeExpenses		18,602			(260	)		18,342			18,703						18,703
%		14.8	%					14.6	%		14.7	%					14.7	%
Restructuring Charge		986			(986	)		-			319			(319	)		-
%		0.8	%					0.0	%		0.2	%					0.0	%
Earnings from Operations		18,110			1,246			19,356			18,628			319			18,947
%		14.4	%					15.4	%		14.6	%					14.8	%
Interest Income		595						595			284						284
%		0.5	%					0.5	%		0.2	%					0.2	%
Interest Expense		1,074						1,074			543						543
%		0.9	%					0.9	%		0.4	%					0.4	%
Net Interest Expense		(479	)					(479	)		(259	)					(259	)
%		-0.4	%					-0.4	%		-0.2	%					-0.2	%
Earnings before Income Taxes		17,631			1,246			18,877			18,369			319			18,688
%		14.0	%					15.0	%		14.4	%					14.6	%
Income Tax Provision		2,429			421			2,850			674			2,181			2,855
Effective Tax Rate		13.8	%					15.1	%		3.7	%					15.3	%
Net Earnings		15,202			825			16,027			17,695			(1,862	)		15,833
%		12.1	%					12.7	%		13.9	%					12.4	%

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