Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Q2 FY2021 Earnings Presentation
21 slides from Park Aerospace's earnings presentation, Oct 8, 2020
Slide 1: FY2021 Q2 Investor Conference Call
FY2021 Q2 Investor Conference Call October 8, 2020
Slide 2: Forward Looking Disclaimer
Forward Looking Disclaimer This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operatin
Slide 3: Quarterly Results for FY2019, FY2020 and FY2021 Q1 and Q2
Quarterly Results for FY2019, FY2020 and FY2021 Q1 and Q2 (In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $13,723 $15,847 $15,494 $12,213 $9,250 Gross Profit $2,852 $3,145 $4,284 $5,903 $4,804 $3,813 $5,0
Slide 4: FY2021 Q2 Top Five Customers
FY2021 Q2 Top Five Customers (in Alphabetical Order) AAE Aerospace GKN plc Kratos Defense and Security Solutions Meggitt plc Middle River Aerostructure Systems (MRAS)* and its subcontractors Kratos BQM-167A PAC-3 Missile System Sikorsky UH-60 Black Hawk EA-18G Growler *MRAS is a subsidiary of ST Eng
Slide 5: Park's Estimated Revenues by Aerospace Market Segment
Park’s Estimated Revenues by Aerospace Market Segment FY2020 FY2020 Revenues: $60.0 Million FY2021 Q2 YTD FY2021 Q2 YTD Revenues: $21.5 Million Business Aircraft 10/07/2020 Slide 5
Slide 6: Park's Estimated FY2021 Q2 YTD Military Revenues by Market Segment
Park’s Estimated FY2021 Q2 YTD Military Revenues by Market Segment Estimated FY2021 Q2 YTD Military Revenues: Approximately $11.0 Million Park loves “niche” Military Programs V-22 Osprey E4-B Doomsday Aircraft RQ-4 Global Hawk 10/07/2020 Slide 6
Slide 7: Park's End Market Focus
Park’s End Market Focus Park’s Estimated FY2021 Q2 YTD Revenues by Aerospace Market Segment FY2021 Q2 Revenues: $21.5 Million Photo Courtesy of David Clark Company Military Aerospace Continue to focus on “niche” programs and opportunities Enhanced focus area for Park partly resulting from sign
Slide 8: Park's End Market Focus (Continued)
Park’s End Market Focus (Continued) Business Aircraft Continue to support GE Passport 20 Engine Program for Bombardier Global 7500 and other Business Aircraft Programs Park is qualified on Continue to Focus on developing new “niche” Business Aircraft opportunities Commercial Aircraft Almos
Slide 9: GE Aviation Jet Engine Programs
GE Aviation Jet Engine Programs Firm Pricing LTA (Requirements Contract) through Park Composite Materials are Sole 2029 with Middle River Aerostructure Systems Source on large primary structure (MRAS), a subsidiary of ST Engineering Aerospace component for Passport 20 Engines for Bombardier Glob
Slide 10: Update on GE Aviation Jet Engine Programs
Update on GE Aviation Jet Engine Programs A320neo/A321neo/A321LR/A321XLR (A320neo Family of Aircraft) with LEAP-1A Engines…What has Airbus said? Bombardier Global 7500 with Passport 20 Engines…Recent news is relatively positive; important program for Park; next GE Aviation program planned to qua
Slide 11: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) Park has arrangement with MRAS to maintain monthly minimum baseline production levels to preserve Park’s ability to ramp up production when needed Important to Park and MRAS MRAS and Park agreed to defer September’s production to allow Park
Slide 12: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) FY2021 GE Aviation Programs revenue forecast estimates by quarter: Q1: $4.1 Million (actual) Q2: $2.9 Million (actual) Q3: ? Q4: ? Reflections on GE Aviation Programs forecast for FY2021 Q3 and Q4 and beyond Significant divergence f
Slide 13: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) Abrupt and steep ramp-up by supply chain could be required when inventory destocking ends • Important to understand that this ramp-up would be a function of end of inventory destocking and is not dependent on, or a function of, recovery of the
Slide 14: Review of Park's Perspective on Commercial Aircraft Industry
Review of Park’s Perspective on Commercial Aircraft Industry Single-Aisle Aircraft vs. Wide-Body Aircraft Trend already in place favoring Single-Aisle Aircraft Industry experts and analysts believe market for Single-Aisle Aircraft will recover before Wide-Body Aircraft market Major Single-Ai
Slide 15: Park's Financial Forecasts
Park’s Financial Forecasts Our current thoughts about FY2021 by quarter: Sales EBITDA Q1 (Actual) $12.2 Million $2.4 Million Q2 (Actual) $9.3 Million $1.4 Million Q3 ? ? Q4 ? ? Park’s Long-Term Forecast was withdrawn during our FY2020 Q4 May 14, 2020 Investor Call Presentation Our current thou
Slide 16: Updates on Park…How Are We Doing?
Updates on Park…How Are We Doing? Major Expansion of Newton, Kansas Facilities Total budget: approximately $18 Million Spending • To date: approximately $11.25 Million • To go: approximately $6.75 Million Completion expected in first half of CY2021 • Weather and Covid travel restriction dela
Slide 17: Updates on Park…How Are We Doing? (Continued)
Updates on Park…How Are We Doing? (Continued) Park continues to be fully operational throughout the Pandemic NY Office is Open Kansas Manufacturing Facility continues to be fully operational Customer Flexibility Program has been instrumental in helping Park effectively and quickly adjust to
Slide 18: Updates on Park…How Are We Doing? (Continued)
Updates on Park…How Are We Doing? (Continued) The world has been badly damaged and is a very troubled place at this time… But, at Park, we continue to go for it • We are not letting up • Others may falter, but we are not going anywhere Park is a strange and unusual company…we are not like the
Slide 19: 10/07/2020 Slide 19
10/07/2020 Slide 19
Slide 20: APPENDIX I Supplementary Financial Information
APPENDIX I Park Aerospace Corp. October 8, 2020 Investor Conference Call – Supplementary Financial Information The financial and other data contained herein (the “Supplementary Data”) is being provided pursuant to the requirements of Regulation G promulgated by the U.S. Securities and Exchange Commi
Slide 21: APPENDIX I
APPENDIX I Net earnings for the 2021 fiscal year second quarter were $1.2 million, or 12.4% of sales, compared to $2.1 million, or 15.0% of sales, for the 2020 fiscal year second quarter and $2.0 million, or 16.1% of sales, for the 2021 fiscal year first quarter. Depreciation and amortization expens