PARK ELECTROCHEMICAL CORP.
NEWS RELEASE
Contact: Murray Stamer
5 Dakota Drive
Lake success, NY 11042
(516) 354-4100
PARK ELECTROCHEMICAL REPORTS FIRST QUARTER RESULTS
LAKE SUCCESS, New York, June 30, 2004......Park Electrochemical
Corp. (NYSE-PKE) reported sales of $58,518,000 for the first
quarter ended May 30, 2004 compared to sales from continuing
operations of $44,323,000 for the first quarter of last year.
Park reported net earnings of $6,021,000 for the first quarter
ended May 30, 2004 compared to a net loss from continuing
operations of $1,644,000 for last fiscal year's first quarter
ended June 1, 2003. The net loss from continuing operations for
last year's first quarter included pre-tax realignment charges of
$1,934,000 ($1,058,000 after-tax). The loss from discontinued
operations, net of taxes, was $6,807,000 for last fiscal year's
first quarter. Net earnings were $6,021,000 for the quarter ended
May 30, 2004 compared to a net loss of $8,451,000 for last year's
first quarter.
Park's diluted earnings per share were $.30 for the first quarter
ended May 30, 2004 compared to a diluted loss per share from
continuing operations of $.08 for last year's first quarter. The
diluted loss per share from continuing operations before special
items was $.03 for last year's first quarter. Diluted earnings per
share were $.30 for the quarter ended May 30, 2004 compared to a
diluted loss per share of $.43 for last year's first quarter.
Brian Shore, Park's President and CEO, said, "The global markets
for our electronic materials products continued to be mixed during
our first quarter. As usual, I must remind you that the visibility
in our industry has been for many years, and continues to be, very
poor. However, it does appear that our industry has begun to slow
down to some extent in very recent weeks, particularly in the
telecommunications and networking industry segments. Since the
current underlying economic fundamentals seem to be relatively
positive, the logical conclusion is that this very recent market
slow-down is attributable to an industry inventory adjustment. We
share our perspective with you regarding the current industry
climate with some caution, because our industry has certainly
surprised us more than once in the past. In any event, our opinions
and beliefs about the short-term trends in the industry have very
little impact on how we run our business every day, because, as we
have in the past, we continue to run our business from a long-term
perspective rather than a short-term perspective. Accordingly, our
focus continues to be on growing and expanding our business in Asia
and on driving technology throughout the world."
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 (800) 289-0518.
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 Sunday, July 4, 2004. The conference call
replay can be accessed by dialing (888) 203-1112 and entering
passcode 250110 or on the Company's website at www.parkelectro.com
under the caption "Investor Conference Calls".
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
under the caption "Investor Conference Calls".
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. Accordingly, in addition to disclosing its
financial results determined in accordance with GAAP, Park
discloses non-GAAP operating results that exclude realignment
charges in order to assist its shareholders and other readers in
assessing the company's operating performance. Such non-GAAP
financial measures are provided to supplement the results provided
in accordance with GAAP.
Certain portions of this press release may be deemed to constitute
forward looking statements that are subject to various factors
which could cause actual results to differ materially from Park's
expectations. Such factors include, but are not limited to,
general conditions in the electronics industry, Park's competitive
position, the status of Park's relationships with its customers,
economic conditions in international markets, the cost and
availability of utilities, and the various factors set forth under
the caption "Factors That May Affect Future Results" after Item 7
of Park's Annual Report on Form 10-K for the fiscal year ended
February 29, 2004.
Park Electrochemical Corp. is a leading global designer and
producer of electronic materials used to fabricate complex
multilayer printed circuit boards and interconnection systems.
Park specializes in advanced materials for high layer count
circuit boards and high-speed digital and RF/Microwave electronic
systems. Park also designs and manufactures advanced composite
materials for the aerospace, military and industrial markets. The
Company's manufacturing facilities are located in Singapore,
China, France, Connecticut, New York, Arizona and California.
Additional corporate information is available on the World Wide
Web at www.parkelectro.com and www.parknelco.com.
The performance table (in thousands, except per share amounts):
13 weeks ended
5/30/04 6/1/03
Sales from Continuing Operations $58,518 $44,323
Basic and Diluted Earnings
(Loss) Per Share:
Earnings (Loss) from Continuing Operations $ 0.30 $ (0.08)
Loss from Discontinued Operations - (0.35)
Earnings (Loss) Per Share $ 0.30 $ (0.43)
Earnings (Loss) from Continuing Operations
before Special Items: $ 0.30 $ (0.03)
Weighted Average Share Outstanding:
Basic 19,810 19,709
Diluted 20,068 19,709
The comparative balance sheets (in thousands):
5/30/04 2/29/04
Assets
Current Assets
Cash and Marketable Securities $201,285 $189,186
Accounts Receivable, Net 33,902 36,149
Inventories 13,752 11,707
Other Current Assets 1,441 3,040
Total Current Assets 250,380 240,082
Fixed Assets, Net 68,346 70,569
Other Assets 606 419
Total Assets $319,332 $311,070
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 16,788 $ 14,913
Accrued Liabilities 23,617 24,468
Income Taxes Payable 7,107 3,248
Total Current Liabilities 47,512 42,629
Deferred Income Taxes 5,099 5,107
Liability from Discontinued Operations 17,373 19,438
Total Liabilities 69,984 67,174
Stockholders' Equity 249,348 243,896
Total Liabilities and Shareholders'
Equity $319,332 $311,070
Equity Per Share $12.55 $12.33
Detailed operating information (in thousands):
13 Weeks Ended
5/30/04 6/01/03
Continuing Operations:
Net Sales $ 58,518 $ 44,323
Cost of Sales 44,806 39,700
% 76.6% 89.6%
Gross Profit 13,712 4,623
% 23.4% 10.4%
Selling, General and Administrative
Expenses 8,341 6,204
% 14.3% 14.0%
Profit (Loss) from Operations 5,371 (1,581)
% 9.2% -3.6%
Other Income 651 744
% 1.1% 1.7%
Pre-Tax Operating Profit (Loss) 6,022 (837)
% 10.3% -1.9%
Income Tax Provision (Benefit) 1 (251)
Effective Tax Rate 0.0% 30.0%
Net Profit (Loss) from Continuing
Operations before Special Items 6,021 (586)
% 10.3% -1.3%
Realignment Charges:
Realignment charges - (1,934)
% - -4.4%
Income Tax Benefit - (876)
Effective Tax Rate - 45.3%
After-Tax Realignment Charges - (1,058)
% - -2.4%
After Realignment Charges:
Earnings (Loss) from Continuing
Operations before Income Taxes 6,022 (2,771)
% 10.3% -6.3%
Income Tax Provision (Benefit) 1 (1,127)
Effective Tax Rate 0.0% 40.7%
Net Earnings (Loss) from
Continuing Operations 6,021 (1,644)
% 10.3% -3.7%
Loss from Discontinued Operations,
Net of Taxes - (6,807)
% - -15.4%
Net Earnings (Loss) $ 6,021 $(8,451)
% 10.3% -19.1%
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