Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Q2 FY2020 Earnings Presentation
17 slides from Park Aerospace's earnings presentation, Oct 10, 2019
Slide 1: FY2020 Q2 Investor Conference Call
FY2020 Q2 Investor Conference Call October 10, 2019
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: Expansion Capital Spending; Top Five Customers
Expansion Capital Spending (in Thousands) Estimated Expansion Budget $ 20,500 Spending through F20 Q2 (3,900) Remaining to be spent $ 16,600 FY20 Q2 Top Five Customers (in Alphabetical Order): AAE Aerospace AAR Corp. Kratos Defense and Security Solutions Meggitt PLC. MRAS (including subcontractors)*
Slide 4: Quarterly Results for FY2019 and FY2020 Q1 and Q2
Quarterly Results for FY2019 and FY2020 Q1 and Q2 (In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $13,723 Gross Profit $2,852 $3,145 $4,284 $5,903 $4,804 $3,813 Gross Margin 27.4% 28.1% 33.3% 35.4% 32.1% $27.8% EBITDA $1,385 $1,663 $2,9
Slide 5: What Happened in FY20 Q2?
What Happened in FY20 Q2? Explanation is Complex and Multi-Faceted Background Perspective FY19 Q4…GE/MRAS Programs Sales were 3 times greater than GE/MRAS Programs Sales in FY19 Q1! (GE and MRAS Programs are among the more difficult and challenging programs to support and supply into) Park d
Slide 6: What Happened in FY20 Q2? (Continued)
What Happened in FY20 Q2? (Continued) Production (in sales value) Shortfall in FY20 Q2 of $2.9 Million compared to Planned Production for Q2 FY20 Q2 Sales Shortfall obviously had negative bottom line (EBITDA) impact But large FY20 Q2 Production Shortfall had significant negative bottom line (E
Slide 7: What Happened in FY20 Q2? (Continued)
What Happened in FY20 Q2? (Continued) Major Rework related to Polyurethane Film issues resulted in significant expense in addition to significant Production Value Shortfall, which had significant negative bottom line (EBITDA) impacts We are not singling out or blaming suppliers; Park has good an
Slide 8: Hot-Melt Manufacturing Capacity Constraints
Hot-Melt Manufacturing Capacity Constraints 60” Hot-Melt Film and Tape Lines purchased in 2008 as part of our original Aerospace Composite Materials Manufacturing Plant in Newton, KS were not specifically designed for the production of composite materials for use in AFP (Automated Fiber Placement)
Slide 9: Hot-Melt Manufacturing Capacity Constraints (Continued)
Hot-Melt Manufacturing Capacity Constraints (Continued) In order to relieve and open up Hot-Melt manufacturing capacity: We implemented a 4th Tape Line manufacturing shift We are in the process of transferring the GE9X Program to the 24” Film and Tape Lines What is our current Hot-Melt Manuf
Slide 10: FY2020 Q3 and Q4 Forecast Estimates
FY2020 Q3 and Q4 Forecast Estimates (Historical Data In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $13,723 $14.75M to $15.75M $15.25M to $16.25M EBITDA $1,385 $1,663 $2,948 $4,251 $3,372 $2,406 $3.0M to $3.5M $3.25M to
Slide 11: FY2020 Q3 and Q4 Forecast Estimates (Continued)
FY2020 Q3 and Q4 Forecast Estimates (Continued) Factors affecting predictability of short-term forecasts: All Major Jet Engine Company Programs, except B747-8, are ramping or in development Severe stress on Aerospace Industry Supply Chain Because of tight manufacturing capacity and carbon fi
Slide 12: Park's Long-Term Forecast Estimates
Park’s Long-Term Forecast Estimates FY20 FY21 FY22 FY23 Sales $58.75M to $60.75M $69M to $73M $78M to $84M $87M to $92M EBITDA $12.0M to $13.0M $17.5M to $21M $21.5M to $24.5M $25M to $27.5M EBIT $16M to $19.5M $19.5M to $22.5M $23M to $25.5M Forecast assumes Organic Growth and no Additional Reven
Slide 13: Recent Developments
Recent Developments New Park Company Presentation on Park Website Ground-breaking for Major Expansion of Newton, KS Facility on August 15, 2019 Park Rang Closing Bell at NYSE on August 26, 2019 We Changed Our Name! Park is One Company! Major Private Space Company…Additional POs received
Slide 14: 101019 - Slide 14
101019 - Slide 14
Slide 15: APPENDIX I Supplementary Financial Information
APPENDIX I Park Aerospace Corp. October 10, 2019 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 Comm
Slide 16: APPENDIX I Second Quarter Financial Results
APPENDIX I Gross Profit for the 2020 fiscal year second quarter was $3.8 million, or 27.8% of sales, compared to $3.1 million, or 28.1% of sales, for the 2019 fiscal year second quarter and $4.8 million, or 32.1% of sales, for the 2020 fiscal year first quarter. Before special items, selling, genera
Slide 17: APPENDIX I Forward-Looking Statements
APPENDIX I could cause actual results to differ materially from Park’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements. Generally, you can identify forward-looking statements by the use of words such as “expect,” “