NEWTON, Kan., Jan. 14, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year third quarter ended December 1, 2024. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.m. EST today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/7jbapomd at 5:00 p.m. EST today. The presentation materials will also be available at approximately 4:15 p.m. EST 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 $14,408,000 for the 2025 fiscal year third quarter ended December 1, 2024 compared to $11,639,000 for the 2024 fiscal year third quarter ended November 26, 2023 and $16,709,000 for the 2025 fiscal year second quarter ended September 1, 2024. Park's net sales for the nine months ended December 1, 2024 were $45,087,000 compared to $39,671,000 for the nine months ended November 26, 2023. Net earnings for the 2025 fiscal year third quarter were $1,577,000 compared to $1,203,000 for the 2024 fiscal year third quarter and $2,066,000 for the 2025 fiscal year second quarter. Net earnings were $4,636,000 for the current year's first nine months compared to $4,803,000 for last year's first nine months.

Net earnings before special items for the 2025 fiscal year third quarter were $1,577,000 compared to $1,203,000 for the 2024 fiscal year third quarter and $2,092,000 for the 2025 fiscal year second quarter. Net earnings before special items for the nine months ended December 1, 2024 were $5,450,000 compared to $5,356,000 for last fiscal year's first nine months.

Adjusted EBITDA for the 2025 fiscal year third quarter was $2,415,000 compared to $1,808,000 for the 2024 fiscal year third quarter and $3,206,000 for the 2025 fiscal year second quarter. Adjusted EBITDA for the current year's first nine months was $8,231,000 compared to $7,788,000 for last year's first nine months.

During the 2025 fiscal year first nine months, the Company recorded $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 nine 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 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.

Park reported basic and diluted earnings per share of $0.08 for the 2025 fiscal year third quarter compared to $0.06 for the 2024 fiscal year third quarter and $0.10 for the 2025 fiscal year second quarter. Basic and diluted earnings per share before special items were $0.08 for the 2025 fiscal year third quarter compared to $0.06 for the 2024 fiscal year third quarter and $0.10 for the 2025 fiscal year second quarter.

Park reported basic and diluted earnings per share of $0.23 for the 2025 fiscal year's first nine months compared to $0.24 for the 2024 fiscal year's first nine months. Basic and diluted earnings per share before special items were $0.27 for the 2025 fiscal year's first nine months compared to $0.26 for the 2024 fiscal year's first nine months.

The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EST 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 13750836.

For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EST today through 11:59 p.m. EST on Tuesday, January 21, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/7jbapomd 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 13750836.

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

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 Ended		13 Weeks Ended		13 Weeks Ended			39 Weeks Ended

	December 1, 2024		November 26, 2023		September 1, 2024			December 1, 2024			November 26, 2023
Sales	$	14,408	$	11,639	$	16,709		$	45,087		$	39,671

Net Earnings before Special Items¹	$	1,577	$	1,203	$	2,092		$	5,450		$	5,356
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	)		(1,098	)		-
Income Tax Effect on Pretax Special Items		-		-		20			284			191
Net Earnings	$	1,577	$	1,203	$	2,066		$	4,636		$	4,803


Basic Earnings per Share:
Basic Earnings before Special Items¹	$	0.08	$	0.06	$	0.10		$	0.27		$	0.26
Special Items:
Activist Shareholder Defense Costs		-		-		-			-			(0.03	)
Stock Option Modification		-		-		-			-			-
Loss on Sale of Marketable Securities		-		-		-			-			-
Storm Damage Charge		-		-		-			(0.05	)		-
Income Tax Effect on Pretax Special Items		-		-		-			0.01			0.01
Basic Earnings per Share	$	0.08	$	0.06	$	0.10		$	0.23		$	0.24



Diluted Earnings before Special Items¹	$	0.08	$	0.06	$	0.10		$	0.27		$	0.26
Special Items:
Activist Shareholder Defense Costs		-		-		-			-			(0.03	)
Stock Option Modification		-		-		-			-			-
Loss on Sale of Marketable Securities		-		-		-			-			-
Storm Damage Charge		-		-		-			(0.05	)		-
Income Tax Effect on Pretax Special Items		-		-		-			0.01			0.01
Diluted Earnings per Share	$	0.08	$	0.06	$	0.10		$	0.23		$	0.24


Weighted Average Shares Outstanding:
Basic		19,982		20,250		20,216			20,150			20,323
Diluted		20,077		20,355		20,291			20,246			20,406

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

Comparative balance sheets (in thousands):

	December 1, 2024		March 3, 2024
Assets	(unaudited)
Current Assets
Cash and Marketable Securities	$	70,042	$	77,211
Accounts Receivable, Net		9,687		12,381
Inventories		10,592		6,404
Prepaid Expenses and Other Current Assets		2,243		2,849
Total Current Assets		92,564		98,845

Fixed Assets, Net		21,479		23,499
Operating Right-of-use Assets		320		95
Other Assets		9,859		9,870
Total Assets	$	124,222	$	132,309

Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	$	5,532	$	3,514
Accrued Liabilities		1,427		1,986
Operating Lease Liability		39		53
Income Taxes Payable		5,258		4,105
Total Current Liabilities		12,256		9,658

Long-term Operating Lease Liability		328		82
Non-current Income Taxes Payable		-		5,259
Deferred Income Taxes		3,034		3,222
Other Liabilities		1,246		1,174
Total Liabilities		16,864		19,395

Shareholders' Equity		107,358		112,914

Total Liabilities and Shareholders' Equity	$	124,222	$	132,309

Additional information
Equity per Share	$	5.39	$	5.58

Comparative statements of operations (in thousands – unaudited):


	13 Weeks Ended			13 Weeks Ended			13 Weeks Ended			39 Weeks Ended

	December 1, 2024			November 26, 2023			September 1, 2024			December 1, 2024			November 26, 2023

Net Sales	$	14,408		$	11,639		$	16,709		$	45,087		$	39,671

Cost of Sales		10,580			8,470			11,952			32,403			27,590

Gross Profit		3,828			3,169			4,757			12,684			12,081
% of net sales		26.6	%		27.2	%		28.5	%		28.1	%		30.5	%

Selling, General & Administrative Expenses		1,982			1,804			2,140			6,139			6,272
% of net sales		13.8	%		15.5	%		12.8	%		13.6	%		15.8	%

Earnings from Operations		1,846			1,365			2,617			6,545			5,809


Storm Damage Charge		-			-			(46	)		(1,098	)		-
Interest and Other Income:
Interest Income		290			261			245			874			724

Earnings from Operations before Income Taxes		2,136			1,626			2,816			6,321			6,533

Income Tax Provision		559			423			750			1,685			1,730
Net Earnings	$	1,577		$	1,203		$	2,066		$	4,636		$	4,803
% of net sales		10.9	%		10.3	%		12.4	%		10.3	%		12.1	%

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

Reconciliation of Non-GAAP Financial Measures

Reconciliation of GAAP Net Earnings to Adjusted EBITDA

	13 Weeks Ended			13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended

	December 1, 2024			November 26, 2023			September 1, 2024			December 1, 2024			November 26, 2023
GAAP Net Earnings	$	1,577		$	1,203		$	2,066		$	4,636		$	4,803
Adjustments:
Income Tax Provision		559			423			750			1,685			1,730
Interest Income		(290	)		(261	)		(245	)		(874	)		(789	)
Depreciation		464			339			488			1,391			984
Stock Option Expense		105			104			101			295			316
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			1,098			-
Adjusted EBITDA	$	2,415		$	1,808		$	3,206		$	8,231		$	7,788

(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

Park Aerospace Corp. Reports Third Quarter Results