Form 8-K - Current report

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

 

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported):  October 15, 2024

 

 

PARK AEROSPACE CORP.

	(Exact Name of Registrant as Specified in Charter)
New York	1-4415	11-1734643
(State or Other Jurisdiction	(Commission File	(IRS Employer
of Incorporation)	Number)	Identification No.)
1400 Old Country Road, Westbury	New York	11590
(Address of Principal Executive Offices)		(Zip Code)

 

 

Registrant's telephone number, including area code        [phone]         

 

 

Not Applicable

Former Name or Former Address, if Changed Since Last Report

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $.10 per share	PKE	New York Stock Exchange

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has selected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02  Results of Operations and Financial Condition.

 

Park Aerospace Corp. (the "Company") issued a news release on October 15, 2024 reporting its results of operations for its 2025 fiscal year second quarter ended September 1, 2024.

 

The Company is furnishing the news release to the Securities and Exchange Commission pursuant to Item 2.02 of Form 8-K as Exhibit 99.1 hereto, and it is incorporated herein by reference. The information in this Item 2.02 and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly stated by specific reference in such filing.

 

 

Item 9.01  Financial Statements and Exhibits.

 

(d)

Exhibits.

 

99.1 News Release dated October 15, 2024

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

	PARK AEROSPACE CORP.
Date: October 15, 2024	By:	/s/ P. Matthew Farabaugh
	Name:	P. Matthew Farabaugh
	Title:	Senior Vice President and Chief
		Financial Officer

 

2

 

 

	Exhibit 99.1 NEWS RELEASE
Contact: Donna D’Amico-Annitto	486 North Oliver Road, Bldg. Z Newton, Kansas 67114 [phone]

 

PARK AEROSPACE CORP. REPORTS SECOND QUARTER RESULTS

 

Newton, Kansas, Tuesday, October 15, 2024…..Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year second quarter ended September 1, 2024. 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/yikc26i5 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 $16,709,000 for the 2025 fiscal year second quarter ended September 1, 2024 compared to $12,481,000 for the 2024 fiscal year second quarter ended August 27, 2023 and $13,970,000 for the 2025 fiscal year first quarter ended June 2, 2024. Park’s net sales for the six months ended September 1, 2024 were $30,679,000 compared to $28,032,000 for the six months ended August 27, 2023. Net earnings for the 2025 fiscal year second quarter were $2,066,000 compared to $1,746,000 for the 2024 fiscal year second quarter and $993,000 for the 2025 fiscal year first quarter. Net earnings were $3,059,000 for the current year’s first six months compared to $3,600,000 for last year’s first six months.

 

Net earnings before special items for the 2025 fiscal year second quarter were $2,092,000 compared to $1,746,000 for the 2024 fiscal year second quarter and $1,781,000 for the 2025 fiscal year first quarter. Net earnings before special items for the six months ended September 1, 2024 were $3,873,000 compared to $4,153,000 for last fiscal year’s first six months.

 

Adjusted EBITDA for the 2025 fiscal year second quarter was $3,206,000 compared to $2,669,000 for the 2024 fiscal year second quarter and $2,610,000 for the 2025 fiscal year first quarter. Adjusted EBITDA for the current year’s first six months was $5,816,000 compared to $5,980,000 for last year’s first six months.

 

During the 2025 fiscal year second quarter and first six months, respectively, the Company recorded $46,000 and $1,098,000 of pre-tax charges related to storm damage to the Company’s facilities in Newton Kansas. During the 2024 fiscal year’s first six months, 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 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 dividend in the 2024 fiscal year first quarter.

 

Park reported basic and diluted earnings per share of $0.10 for the 2025 fiscal year second quarter compared to $0.09 for the 2024 fiscal year second quarter and $0.05 for the 2025 fiscal year first quarter. Basic and diluted earnings per share before special items were $0.10 for the 2025 fiscal year second quarter compared to $0.09 for the 2024 fiscal year second quarter and $0.09 for the 2025 fiscal year first quarter.

 

Park reported basic and diluted earnings per share of $0.15 for the 2025 fiscal year’s first six months compared to $0.18 for the 2024 fiscal year’s first six months. Basic and diluted earnings per share before special items were $0.19 for the 2025 fiscal year’s first six months compared to $0.20 for the 2024 fiscal year’s first six months.

 

 

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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 [phone] in the United States and Canada, and [phone] in other countries. The required passcode for attendance by phone is 13749480.

 

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 Tuesday, October 22, 2024. The conference call replay will be available at https://edge.media-server.com/mmc/p/yikc26i5 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 [phone] in the United States and Canada, and [phone] in other countries. The required passcode for accessing the replay by phone is 13749480.

 

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, activist shareholder defense costs, losses on sales of investments and charges for modification of previously granted stock options. 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®) and lightning strike protection materials (Electroglide®). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) 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™ and AlphaStrut™ 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

 

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

 

		13 Weeks Ended				13 Weeks Ended				13 Weeks Ended				26 Weeks Ended
		September 1, 2024				August 27, 2023				June 2, 2024				September 1, 2024				August 27, 2023
Sales		$	16,709			$	12,481			$	13,970			$	30,679			$	28,032
Net Earnings before Special Items1		$	2,092			$	1,746			$	1,781			$	3,873			$	4,153
Special Items, Net of Tax:
Activist Shareholder Defense Costs			-				-				-				-				(570	)
Stock Option Modification			-				-				-				-				(109	)
Loss on Sale of Marketable Securities			-				-				-				-				(65	)
Storm Damage Charge			(46	)			-				(1,052	)			(1,098	)			-
Income Tax Effect on Pretax Special Items			20				-				264				284				191
Net Earnings		$	2,066			$	1,746			$	993			$	3,059			$	3,600
Basic Earnings per Share:
Basic Earnings before Special Items1		$	0.10			$	0.09			$	0.09			$	0.19			$	0.20
Special Items:
Activist Shareholder Defense Costs			-				-				-				-				(0.03	)
Stock Option Modification			-				-				-				-				-
Loss on Sale of Marketable Securities			-				-				-				-				-
Storm Damage Charge			-				-				(0.05	)			(0.05	)			-
Income Tax Effect on Pretax Special Items			-				-				0.01				0.01				0.01
Basic Earnings per Share		$	0.10			$	0.09			$	0.05			$	0.15			$	0.18
Diluted Earnings before Special Items1		$	0.10			$	0.09			$	0.09			$	0.19			$	0.20
Special Items:
Activist Shareholder Defense Costs			-				-				-				-				(0.03	)
Stock Option Modification			-				-				-				-				-
Loss on Sale of Marketable Securities			-				-				-				-				-
Storm Damage Charge			-				-				(0.05	)			(0.05	)			-
Income Tax Effect on Pretax Special Items			-				-				0.01				0.01				0.01
Diluted Earnings per Share		$	0.10			$	0.09			$	0.05			$	0.15			$	0.18
Weighted Average Shares Outstanding:
Basic			20,216				20,256				20,253				20,234				20,359
Diluted			20,291				20,338				20,371				20,331				20,432

 

¹ Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

 

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Comparative balance sheets (in thousands):

 

		September 1, 2024				March 3, 2024
		(unaudited)
Assets
Current Assets
Cash and Marketable Securities		$	71,984			$	77,211
Accounts Receivable, Net			10,914				12,381
Inventories			7,630				6,404
Prepaid Expenses and Other Current Assets			2,499				2,849
Total Current Assets			93,027				98,845
Fixed Assets, Net			21,891				23,499
Operating Right-of-use Assets			334				95
Other Assets			9,863				9,870
Total Assets		$	125,115			$	132,309
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable		$	3,700			$	3,514
Accrued Liabilities			1,348				1,986
Operating Lease Liability			40				53
Income Taxes Payable			5,121				4,105
Total Current Liabilities			10,209				9,658
Long-term Operating Lease Liability			339				82
Non-current Income Taxes Payable			-				5,259
Deferred Income Taxes			3,087				3,222
Other Liabilities			1,222				1,174
Total Liabilities			14,857				19,395
Shareholders’ Equity			110,258				112,914
Total Liabilities and Shareholders' Equity		$	125,115			$	132,309
Additional information
Equity per Share		$	5.48			$	5.58

 

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Comparative statements of operations (in thousands – unaudited):

 

		13 Weeks Ended				13 Weeks Ended				13 Weeks Ended				26 Weeks Ended
		September 1, 2024				August 27, 2023				June 2, 2024				September 1, 2024				August 27, 2023
Net Sales		$	16,709			$	12,481			$	13,970			$	30,679			$	28,032
Cost of Sales			11,952				8,402				9,871				21,823				19,120
Gross Profit			4,757				4,079				4,099				8,856				8,912
% of net sales			28.5	%			32.7	%			29.3	%			28.9	%			31.8	%
Selling, General & Administrative Expenses			2,140				1,853				2,017				4,157				4,468
% of net sales			12.8	%			14.8	%			14.4	%			13.5	%			15.9	%
Earnings from Operations			2,617				2,226				2,082				4,699				4,444
Storm Damage Charge			(46	)			-				(1,052	)			(1,098	)			-
Interest and Other Income:
Interest Income			245				139				339				584				463
Earnings from Operations before Income Taxes			2,816				2,365				1,369				4,185				4,907
Income Tax Provision			750				619				376				1,126				1,307
Net Earnings		$	2,066			$	1,746			$	993			$	3,059			$	3,600
% of net sales			12.4	%			14.0	%			7.1	%			10.0	%			12.8	%

 

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Reconciliation of non-GAAP financial measures (in thousands – unaudited):

 

Reconciliation of GAAP Net Earnings to Adjusted EBITDA

 

		13 Weeks Ended				13 Weeks Ended				13 Weeks Ended				26 Weeks Ended				26 Weeks Ended
		September 1, 2024				August 27, 2023				June 2, 2024				September 1, 2024				August 27, 2023
GAAP Net Earnings		$	2,066			$	1,746			$	993			$	3,059			$	3,600
Adjustments:
Income Tax Provision			750				619				376				1,126				1,307
Interest Income			(245	)			(139	)			(339	)			(584	)			(528	)
Depreciation			488				339				439				927				644
Stock Option Expense			101				104				89				190				213
Special Items:
Activist Shareholder Defense Costs			-				-				-				-				570
Stock Option Modification Charge (a)			-				-				-				-				109
Pre-tax Losses on Sales of Investments (b)			-				-				-				-				65
Storm Damage Charge			46				-				1,052				1,098				-
Adjusted EBITDA		$	3,206			$	2,669			$	2,610			$	5,816			$	5,980

 

(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

 

 

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Document And Entity Information	Oct. 15, 2024
Document Information [Line Items]
Entity, Registrant Name	PARK AEROSPACE CORP.
Document, Type	8-K
Document, Period End Date	Oct. 15, 2024
Entity, Incorporation, State or Country Code	NY
Entity, File Number	1-4415
Entity, Tax Identification Number	11-1734643
Entity, Address, Address Line One	1400 Old Country Road
Entity, Address, City or Town	Westbury
Entity, Address, State or Province	NY
Entity, Address, Postal Zip Code	11590
City Area Code	631
Local Phone Number	465-3600
Title of 12(b) Security	Common Stock
Trading Symbol	PKE
Security Exchange Name	NYSE
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000076267

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