Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Q1 FY2025 Earnings Presentation
34 slides from Park Aerospace's earnings presentation, Jul 16, 2024
Slide 1: FY2025 Q1 Investor Conference Call
FY2025 Q1 Investor Conference Call July 16, 2024 ***Celebrating Park’s 70th Anniversary***
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: Table of Contents
Table of Contents FY2025 Q1 Investor Presentation……………………………………...……………….Slide 1 Supplementary Financial Information……………………………………………..Appendix 1 James Webb Space Telescope 071624 Slide 3
Slide 4: Quarterly Results for FY2023, FY2024 and FY2025
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands)* FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4*** FY25 Q1 Sales $12,783 $13,875 $13,867 $13,530 $15,551 $12,481 $11,639 $16,333 $13,970 Gross Profit $4,092 $4,086 $4,444 $3,851 $4,833 $4,079 $3,169 $4,454 $4,099** Gross
Slide 5: Quarterly Results: FY2025 Q1 Estimates vs Actual
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) What we said about FY2025 Q1 during our May 30, 2024 FY2024 Q4 Investor Call: Sales estimate: $15.75 Million to $16.25 Million Adjusted EBITDA estimate: $3.25 Million to $3.75 Million The FY2025 Q1 sales estimate was
Slide 6: The Storm and the Storm Damage
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) So, let’s talk about the storm and the storm damage On Sunday, May 19, at approximately 8:00 pm local time, Park’s Newton, Kansas facilities were damaged by strong straight line winds (which reportedly reached 100 MPH)
Slide 7: What Was Damaged by the Storm
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) What was damaged by the storm? • The roofs on all three buildings were damaged and likely will need to be replaced…the roofs were very quickly temporarily repaired, and the roofs are secure • Numerous specialty HVAC units w
Slide 8: Repairs and Insurance
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) How long will it take to complete all of the repairs? • It could take up to six months, but all production and lab facilities have been fully operational and functional since June 3, 2024, and continue to be fully operation
Slide 9: Accounting for the Storm Damage
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) How has the Company accounted for the storm damage? • The Company recognized a one-time charge, in our FY2025 Q1, of approximately $1.1 million predominantly to account for the write-down of the book value of the buildings
Slide 10: Total Missed Shipments in FY2025 Q1
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands) (Continued) Total Missed Shipments in FY2025 Q1…Approximately $2.5 Million!!! What were the causes of the missed shipments? Storm related missed shipments: $1.8 Million Supply Chain and other issues: approximately $300 Thousand I
Slide 11: Park's Balance Sheet, Cash and Cash Dividend History
Park’s Balance Sheet, Cash and Cash Dividend History Park has zero long-term debt! Park reported $74.4 Million in Cash and Marketable Securities as of the end of FY2025 Q1 There are $9.3 Million of remaining Transition Tax Installment payments payable from the end of FY2025 Q1 through June 202
Slide 12: FY2025 Q1 Top Five Customers
FY2025 Q1 Top Five Customers (in Alphabetical Order) Avio S.p.A. Kratos Defense and Security Solutions Lifeport, Inc. Middle River Aerostructure Systems (MRAS) and its subcontractors Sikorsky S-92 Medium Lift Helicopter The Nordam Group Vega Launcher Bombardier Global 7500 Business Jet Kratos MQM-17
Slide 13: Park's Estimated Revenues by Aerospace Market Segment
Park’s Estimated Revenues by Aerospace Market Segment FY2021 FY2022 FY2021 Revenues: FY2022 Revenues: $46.3 Million $53.6 Million FY2023 FY2024 FY2025 Q1 Revenues: $14.0 Million FY2023 Revenues: FY2024 Revenues: $54.1 Million $56.0 Million 071624 Slide 13
Slide 14: Park Loves "Niche" Military Aerospace Programs
Park Loves “Niche” Military Aerospace Programs Park’s Estimated FY2025 Q1 Military Revenues by Market Segment Boeing V-22 Osprey Estimated FY2025 Q1 MBDA Aster 30 Vertical Military Revenues: $5.5 Million Launch Missile System Halcon Systems SkyKnight Multi-Target McDonnell Douglas AV-8B Harrier II S
Slide 15: Supply Chain Challenges…Just Don't Want to Go Away
Supply Chain Challenges…Just Don’t Want to Go Away Supply Chain Challenges…Just Don’t Want to Go Away Whenever we hear that they are behind us, we find out that they are not… Didn’t we hear back in 2021 that Supply Chain challenges would all be behind us in 2022? And didn’t we hear in 2022 t
Slide 16: Supply Chain Challenges (Continued)
Supply Chain Challenges… Just Don’t Want to Go Away (Continued) We hear unemployment is not that bad…but is that the full story? • It is widely reported that 7.2 million able-bodied men between the ages of 25 and 54 have permanently left the workforce and are not even looking for work…even though
Slide 17: Supply Chain Challenges (Continued)
Supply Chain Challenges… Just Don’t Want to Go Away (Continued) How is that working? See the problem? We see it every day in the industry…and it is not pretty… What do the ongoing Supply Chain challenges mean for the Aerospace Industry? • These challenges are impacting program ramp-ups and new
Slide 18: GE Aerospace Jet Engine Programs
GE Aerospace Jet Engine Programs Firm Pricing LTA (Requirements Contract) from 2019 through 2029 with Middle River Aerostructure Systems (MRAS), a subsidiary of ST Engineering Aerospace (STE) Redundant Factory…Factory is in production! Sole Source for Composite Materials for Engine Nacelles an
Slide 19: GE Aerospace Jet Engine Programs (Continued)
GE Aerospace Jet Engine Programs (Continued) Park Composite Materials are also Sole Source on primary structure component for Passport 20 Engines for Bombardier Global 7500/8000 (not included in MRAS LTA) Fan Case Containment Wrap for GE9X Engines for Boeing 777X Aircraft* Produced with Park’s
Slide 20: Update on GE Aerospace Jet Engine Programs
Update on GE Aerospace Jet Engine Programs A320neo Aircraft Family (includes A319neo, A320neo, A321neo, A321LR and A321XLR Aircraft Variants) Airbus has a huge backlog of A320neo Aircraft Family firm orders of 7,137 Airplanes as of May 31, 2024 (Source: July 2024 edition of Aero Engine News) A
Slide 21: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Airbus delivered the following number of A320neo Family Aircraft for each of the following calendar years: • 2018: 386 or an average of 32 per month • 2019: 561 or an average of 47 per month • 2020: 431 or an average of 36 per month • 2021: 45
Slide 22: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Then, on June 24, 2024, Airbus surprisingly announced it is pushing out its goal of achieving the 75 A320neo Aircraft Family delivery rate from 2026 to 2027 • Not surprisingly, Airbus highlighted Supply Chain issues and limitations as the key
Slide 23: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Approved Engines for the A320neo Aircraft Family • The A320neo Aircraft Family offers two approved engine options, namely the CFM LEAP-1A engine and the Pratt PW1100G (GTF) engine • Park supplies into the A320neo Family Aircraft using the CFM
Slide 24: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Airbus A321XLR Aircraft Variant • Airbus expects the A321XLR to enter into service before the end of 2024 Comac C919 with CFM LEAP-1C Engines Airbus A321XLR with LEAP-1A Engines Comac plans to achieve a production rate of 150 C919 Aircraft
Slide 25: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Boeing 777X Aircraft with GE9X Engines Boeing expects the B777X Aircraft will be certified by the FAA and EASA in 2025 Boeing just received Type Inspection Authorization for the B777X from the FAA and conducted its first B777X certificatio
Slide 26: GE Aerospace Jet Engine Programs Sales History and Forecast Estimates
GE Aerospace Jet Engine Programs Sales History and Forecast Estimates GE Aerospace Programs sales history: FY2023 Q1: $6.4 Million FY2020 Total: $28.9 Million FY2023 Q2: $6.1 Million FY2021 Q1: $4.1 Million FY2023 Q3: $5.0 Million FY2021 Q2: $2.9 Million FY2023 Q4: $4.7 Million FY2
Slide 27: Park's Financial Performance History and Forecast Estimates
Park’s Financial Performance History and Forecast Estimates* Quarterly Sales and Adjusted EBITDA history: Sales Adjusted EBITDA FY2023 Q1 $12.8 Million $2.8 Million FY2023 Q2 $13.9 Million $2.7 Million FY2023 Q3 $13.9 Million $3.3 Million FY2023 Q4 $13.5 Million $2.6 Million FY2023 Total $54.1 Mil
Slide 28: Historical Fiscal Year Results and FY2025 Forecast Estimates
Historical Fiscal Year Results and FY2025 Forecast Estimates (In Thousands)* FY2025 Forecast FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024*** Estimates $60,000 to Sales $31,837 $40,230 $51,116 $60,014 $46,276 $53,578 $54,055 $56,004 $65,000 Gross Profit $8,299 $11,288 $16,184 $18,673 $13,1
Slide 29: Revenue Outlook…the "Juggernaut"
GE Aerospace Jet Engine Programs Revenue Outlook…the “Juggernaut” What is the “timing” for the Outlook? We are not sure, but the Juggernaut is still coming, it can’t be stopped and we better be ready! Airbus A321neo with LEAP-1A Engine 071624 Slide 29
Slide 30: Revenue Outlook…the "Juggernaut" (Continued)
GE Aerospace Jet Engine Programs Revenue Outlook…the “Juggernaut” (Continued) Engine Units per Year Revenue per Engine Annual Revenues per Program Assumptions¹ Unit Estimates² Program Estimates 4 A320neo³ 1080 $30,500 $32,940K 5 PP20 90 $49,000 $4,410K 6 C919 300 $26,500 $7,950K 7 ARJ21 72 $29,500 $
Slide 31: Our Park Maintenance Crew
Our Park Maintenance Crew Thank you, Park Maintenance Crew, for Leading the Storm Recovery and Clean-up Effort 071624 Slide 31
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Slide 33: Appendix 1: Supplementary Financial Information
Park Aerospace Corp. Appendix 1 July 16, 2024 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 Commiss
Slide 34: Appendix 1 Continued
Appendix 1 Continued Before special items, earnings before income taxes for the 2025 fiscal year first quarter were $2.4 million, or 17.3% of sales, compared to $3.3 million, or 21.1% of sales, for the 2024 fiscal year first quarter and $3.0 million, or 18.4% of sales, for the 2024 fiscal year fourt