Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results
NEWTON, Kan., May 15, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year fourth quarter and full fiscal year ended March 2, 2025. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/bnajz2w5 at 5:00 p.m. EDT today. The presentation materials will also be available at approximately 4:15 p.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company's website at www.parkaerospace.com under "Investor Conference Calls" on the "Shareholders" page.
Park reported net sales of $16,939,000 for the 2025 fiscal year fourth quarter ended March 2, 2025 compared to $16,333,000 for the 2024 fiscal year fourth quarter ended March 3, 2024 and $14,408,000 for the 2025 fiscal year third quarter ended December 1, 2024. Park's net sales for the fiscal year ended March 2, 2025 were $62,026,000 compared to $56,004,000 for the fiscal year ended March 3, 2024. Net earnings for the 2025 fiscal year fourth quarter were $1,246,000 compared to $2,670,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings were $5,882,000 for the fiscal year ended March 2, 2025 compared to $7,473,000 for the fiscal year ended March 3, 2024. The 2025 fiscal year fourth quarter and 2025 fiscal year were comprised of 13 weeks and 52 weeks, respectively, while the 2024 fiscal year fourth quarter and 2024 fiscal year were comprised of 14 weeks and 53 weeks, respectively.
Net earnings before special items for the 2025 fiscal year fourth quarter were $2,417,000 compared to $2,308,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings before special items for the fiscal year ended March 2, 2025 were $7,867,000 compared to $7,664,000 for the fiscal year ended March 3, 2024.
Adjusted EBITDA for the 2025 fiscal year fourth quarter was $3,418,000 compared to $3,201,000 for the 2024 fiscal year fourth quarter and $2,415,000 for the 2025 fiscal year third quarter. Adjusted EBITDA for the fiscal year 2025 was $11,649,000 compared to $10,989,000 for fiscal year 2024.
During the 2025 fiscal year, the Company recorded $1,098,000 of pre-tax charges related to storm damage to the Company's facilities in Newton Kansas. During the 2025 fiscal year fourth quarter, the Company recorded a non-cash tax charge of $2,147,000 related to the potential repatriation by the Company of undistributed foreign earnings on certain funds held by the Company's Singapore subsidiary. The Company also recorded a tax benefit of $957,000 in the 2025 fiscal year fourth quarter related to the "running" or expiration of the statute of limitations for certain provisions for uncertain tax positions previously established by the Company. During the 2024 fiscal year, the Company recorded $570,000 of pre-tax activist shareholder defense costs, $65,000 of pre-tax losses on sales of investments to fund the $1.00 per share special cash dividend paid on April 6, 2023 to shareholders of record on March 9, 2023 and a $109,000 pre-tax charge for the modification of previously granted stock options in connection with the special cash dividend in the 2024 fiscal year first quarter. The Company recorded $70,000 of pre-tax costs to settle an insurance claim as the result of the bankruptcy of an insurer and $38,000 of pre-tax recruiting fees in the 2024 fiscal year fourth quarter and fiscal year. The Company recognized a tax benefit of $657,000 in the 2024 fiscal year fourth quarter and fiscal year primarily from the reductions of uncertain tax positions related to expiring statutes of limitations on tax positions taken in prior years regarding the taxability of funds repatriated from the Company's subsidiary in Singapore, and the Company recorded $224,000 of additional tax expense for tax deductions becoming unavailable related to stock options expiring unexercised in the 2024 fiscal year fourth quarter and fiscal year.
Park reported basic and diluted earnings per share of $0.06 for the 2025 fiscal year fourth quarter compared to $0.13 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter. Basic and diluted earnings per share before special items were $0.12 for the 2025 fiscal year fourth quarter compared to $0.11 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter.
Park reported basic and diluted earnings per share of $0.29 for the 2025 fiscal year compared to $0.37 for the 2024 fiscal year. Basic and diluted earnings per share before special items were $0.39 for the 2025 fiscal year compared to $0.38 for the 2024 fiscal year.
The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required passcode for attendance by phone is 13753688.
For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EDT today through 11:59 p.m. EDT on Thursday, May 22, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/bnajz2w5 and on the Company's website at www.parkaerospace.com under "Investor Conference Calls" on the "Shareholders" page. It can also be accessed by dialing (844) 512-2921 in the United States and Canada, and (412) 317-6671 in other countries. The required passcode for accessing the replay by phone is 13753688.
Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's website at https://parkaerospace.com/shareholders/investor-conference-calls/.
Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America ("GAAP") financial measures, which include special items, such as a charge related to storm damage, a non-cash tax charge, reductions in uncertain tax positions, activist shareholder defense costs, losses on sales of investments, charges for modification of previously granted stock options, tax deductions becoming unavailable, costs to settle an insurance claim, and recruiting fees. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA, and 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 includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.
Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park's advanced composite materials include film adhesives (Aeroadhere$(R)$ ) and lightning strike protection materials (Electroglide(R) ). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement $(AFP.UK)$ manufacturing applications. Park's advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as "drones"), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park's advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park's composite parts and structures (which include Park's proprietary composite SigmaStrut$(TM)$ and AlphaStrut(TM) product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park's objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up.
Additional corporate information is available on the Company's website at www.parkaerospace.com
Contact: Donna D'Amico-Annitto
486 North Oliver Road, Bldg. Z
Newton, Kansas 67114
(316) 283-6500
Performance table, including non-GAAP information (in thousands, except per share amounts --unaudited):
13 Weeks 14 Weeks 13 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended Ended
-------- -------- ---------- -------- ----------
March 2, March 3, December March 2, March 3,
2025 2024 1, 2024 2025 2024
-------- -------- ---------- -------- ----------
Sales $16,939 $16,333 $ 14,408 $62,026 $56,004
Net Earnings
before Special
Items(1) $ 2,417 $ 2,308 $ 1,577 $ 7,867 $ 7,664
Special Items,
Net of Tax:
Activist
Shareholder
Defense
Costs - - - - $(570.SI)$
Stock Option
Modification - - - - (109)
Loss on Sale
of
Marketable
Securities - - - - (65)
Insurer
Bankruptcy
Cost - (70) - - (70)
Recruiting
Fees - (38) - - (38)
Storm Damage
Charge - - - (1,098) -
Income Tax
Effect on
Pretax
Special
Items 19 37 - 303 228
Tax Provision
on Foreign
Earnings (2,147) - - (2,147) -
Reduction in
Uncertain
Tax
Positions 957 657 - 957 657
Tax Impact of
Cancelled
Stock
Options - (224) - - (224)
Net Earnings $ 1,246 $ 2,670 $ 1,577 $ 5,882 $ 7,473
------ ------ ------ ------ ------
Basic Earnings
per Share:
Basic
Earnings
before
Special
Items(1) $ 0.12 $ 0.11 $ 0.08 $ 0.39 $ 0.38
Special
Items:
Activist
Shareholder
Defense
Costs - - - - (0.03)
Stock Option
Modification - - - - (0.01)
Loss on Sale
of Marketable
Securities - - - - -
Storm Damage
Charge - - - (0.05) -
Income Tax
Effect on
Pretax
Special
Items - - - 0.01 0.01
Tax Provision
on Foreign
Earnings (0.11) - - (0.11) -
Reduction in
Uncertain
Tax
Positions 0.05 0.03 - 0.05 0.03
Tax Impact of
Cancelled
Stock
Options - (0.01) - - (0.01)
Basic
Earnings
per
Share $ 0.06 $ 0.13 $ 0.08 $ 0.29 $ 0.37
------ ------ ------ ------ ------
Diluted Earnings
before Special
Items(1) $ 0.12 $ 0.11 $ 0.08 $ 0.39 $ 0.38
Special Items:
Activist
Shareholder
Defense
Costs - - - - (0.03)
Stock Option
Modification - - - - (0.01)
Loss on Sale
of Marketable
Securities - - - - -
Insurer
Bankruptcy
Cost - - - - -
Recruiting
Fees - - - - -
Storm Damage
Charge - - - (0.05) -
Income Tax
Effect on
Pretax
Special
Items - - - 0.01 0.01
Tax Provision
on Foreign
Earnings (0.11) - - (0.11) -
Reduction in
Uncertain
Tax
Positions 0.05 0.03 - 0.05 0.03
Tax Impact of
Cancelled
Stock
Options - (0.01) - - (0.01)
Diluted
Earnings
per
Share $ 0.06 $ 0.13 $ 0.08 $ 0.29 $ 0.37
====== ====== ====== ====== ======
Weighted Average
Shares
Outstanding:
Basic 19,945 20,253 19,982 20,099 20,304
Diluted 20,022 20,357 20,077 20,190 20,393
(1) Refer to "Reconciliation of non-GAAP financial
measures" below for information regarding Special
Items.
Comparative balance sheets (in thousands):
March 2, 2025 March 3, 2024
--------------- -----------------
Assets (unaudited)
--------------------------------------
Current Assets
Cash and Marketable Securities $ 68,834 $ 77,211
Accounts Receivable, Net 12,903 12,381
Inventories 7,213 6,404
Prepaid Expenses and Other Current
Assets 1,344 2,849
Total Current Assets 90,294 98,845
Fixed Assets, Net 21,650 23,499
Operating Right-of-use Assets 308 95
Other Assets 9,856 9,870
Total Assets $ 122,108 $ 132,309
=========== ===========
Liabilities and Shareholders' Equity
--------------------------------------
Current Liabilities
Accounts Payable $ 2,513 $ 3,514
Accrued Liabilities 1,318 1,986
Operating Lease Liability 40 53
Income Taxes Payable 5,390 4,105
Total Current Liabilities 9,261 9,658
Long-term Operating Lease Liability 318 82
Non-current Income Taxes Payable - 5,259
Deferred Income Taxes 5,304 3,222
Other Liabilities 71 1,174
Total Liabilities 14,954 19,395
Shareholders' Equity 107,154 112,914
----------- -----------
Total Liabilities and
Shareholders' Equity $ 122,108 $ 132,309
=========== ===========
Additional information (unaudited)
--------------------------------------
Equity per Share $ 5.36 $ 5.58
Comparative statements of operations (in thousands -- unaudited):
13 Weeks 14 Weeks 13 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended Ended
------------ ------------ ------------ ------------ ------------
March 2, March 3, December 1, March 2, March 3,
2025 2024 2024 2025 2024
------------ ------------ ------------ ------------ ------------
Net Sales $16,939 $16,333 $14,408 $62,026 $56,004
Cost of Sales 11,981 11,880 10,580 44,384 39,470
------ --- ------ --- ------ --- ------ --- ------ ---
Gross Profit 4,958 4,453 3,828 17,642 16,534
% of net
sales 29.3% 27.3% 26.6% 28.4% 29.5%
Selling,
General &
Administrative
Expenses 2,107 1,882 1,982 8,246 8,154
% of net
sales 12.4% 11.5% 13.8% 13.3% 14.6%
Earnings from
Operations 2,851 2,571 1,846 9,396 8,380
Storm Damage
Charge - - - (1,098) -
Interest and
Other Income:
Interest
Income 335 329 290 1,209 1,053
------ --- ------ --- ------ --- ------ --- ------ ---
Earnings from
Operations
before Income
Taxes 3,186 2,900 2,136 9,507 9,433
Income Tax
Provision 1,940 230 559 3,625 1,960
------ --- ------ --- ------ --- ------ --- ------ ---
Net Earnings $ 1,246 $ 2,670 $ 1,577 $ 5,882 $ 7,473
====== === ====== === ====== === ====== === ====== ===
% of net
sales 7.4% 16.3% 10.9% 9.5% 13.3%
Reconciliation of non-GAAP financial measures (in thousands -- unaudited):
Reconciliation of Non-GAAP Financial Measures
Reconciliation of GAAP Net
Earnings to Adjusted
EBITDA
--------------------------
13 14
Weeks Weeks 13 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended Ended
------- ------- ---------- -------- ----------
March March
2, 3, December March 2, March 3,
2025 2024 1, 2024 2025 2024
------- ------- ---------- -------- ----------
GAAP Net Earnings $1,246 $2,670 $ 1,577 $ 5,882 $ 7,473
Adjustments:
Income Tax
Provision 1,940 230 559 3,625 1,960
Interest Income (335) (329) (290) (1,209) (1,118)
Depreciation 460 418 464 1,851 1,402
Stock Option
Expense 107 104 105 402 420
Special Items:
Activist
Shareholder
Defense
Costs - - - - 570
Stock Option
Modification
Charge (a) - - - - 109
Pre-tax
Losses on
Sales of
Investments
(b) - - - - 65
Insurer
Bankruptcy
Cost - 70 - - 70
Recruiting
Fees - 38 - - 38
Storm Damage
Charge - - - 1,098 -
Adjusted EBITDA $3,418 $3,201 $ 2,415 $11,649 $10,989
===== ===== ===== ====== ======
(a) pre-tax charge for the modification of previously
granted stock options in connection with the special
dividend in the 2024 fiscal year first quarter
(b) to fund the $1.00 per share special dividend paid
on April 6, 2023 to shareholders of record
on March 9, 2023
(END) Dow Jones Newswires
May 15, 2025 16:05 ET (20:05 GMT)