Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Q4 FY2021 Earnings Presentation
29 slides from Park Aerospace's earnings presentation, May 13, 2021
Slide 1: FY2021 Q4 Investor Conference Call
FY2021 Q4 Investor Conference Call May 13, 2021
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 FY2020 and FY2021
Quarterly Results for FY2020 and FY2021 (In Thousands)* FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 Sales $14,950 $13,723 $15,847 $15,494 $12,213 $9,250 $10,372 $14,441 Gross Profit $4,804 $3,813 $5,022 $5,034 $3,674 $2,638 $2,553 $4,326 Gross Margin 32.1% 27.8% 31.7% 32.5% 30.1%
Slide 4: FY2017, FY2018, FY2019, FY2020 and FY2021 Results
FY2017, FY2018, FY2019, FY2020 and FY2021 Results (In Thousands)* FY2017 FY2018 FY2019 FY2020 FY2021 Sales $31,837 $40,230 $51,116 $60,014 $46,276 Gross Profit $8,299 $11,288 $16,184 $18,673 $13,191 Gross Margin 26.7% 28.1% 31.7% 31.1% 28.5% Adjusted EBITDA $1,055 $4,704** $10,248** $13,012** $8,419
Slide 5: FY2021 Q4 Top Five Customers
FY2021 Q4 Top Five Customers (in Alphabetical Order) AAE Aerospace CPI Radant Technologies Kratos Defense and Security Solutions Middle River Aerostructure Systems (MRAS)* and its subcontractors Boeing 747-8 Turkish Aerospace Industries Navy Multiband Terminal MK125 Warhead for Standard Missile 2 Si
Slide 6: Park's Estimated Revenues by Aerospace Market Segment
Park’s Estimated Revenues by Aerospace Market Segment FY2020 FY2020 Revenues: $60.0 Million FY2021 FY2021 Revenues: $46.3 Million 051321 Slide 6
Slide 7: Park Loves "Niche" Military Aerospace Programs
Park Loves “Niche” Military Aerospace Programs Lockheed Martin Long Range Anti- McDonnell Douglas F-15 Eagle Ship Missile (“LRASM”) Launched Avio Aster 30 104 to Zero! It is not even fair... from B-1B Bomber Air Defense Missile Park’s Estimated FY2021 Military Revenues by Market Segment Estimated FY
Slide 8: Park Loves its Commercial Aircraft Programs
Park Loves its Commercial Aircraft Programs Single-Aisle Aircraft vs. Wide-Body Aircraft Clear Trend favoring Single-Aisle Aircraft If you want to be in Commercial Aircraft, you want to be in Single-Aisle Aircraft (Park’s Opinion) Major Single-Aisle Aircraft Programs: √ Airbus A320neo Family
Slide 9: Commercial Aviation...Emerging from the Abyss
Commercial Aviation...Emerging from the Abyss Higher Jet Fuel Prices and Environmental Concerns provide extra motivation for airlines to more quickly replace less fuel-efficient legacy aircraft with more fuel-efficient modern aircraft, such as the A320neo family of aircraft China domestic aviati
Slide 10: GE Aviation Jet Engine Programs
GE Aviation Jet Engine Programs Firm Pricing LTA (Requirements Contract) from 2019 Park Composite Materials are Sole through 2029 with Middle River Aerostructure Systems Source on primary structure component (MRAS), a subsidiary of ST Engineering Aerospace for Passport 20 Engines for Bombardier
Slide 11: Update on GE Aviation Jet Engine Programs
Update on GE Aviation Jet Engine Programs Airbus A319neo/A320neo/A321neo/A321LR/A321XLR (A320neo Family of Aircraft) with LEAP-1A Engines…In the ramp mode… Airbus Delivered 57 A320neo Family of Aircraft in March Airbus plans to increase A320 Family of Aircraft production rate from 40 to 43 per
Slide 12: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) A321XLR News • First Test Aircraft Nearing Final Assembly • First Flight expected in 2022 • Certification and entry into service expected in 2023 Airbus A321XLR 051321 Slide 12
Slide 13: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) Bombardier Global 7500 with Passport 20 Engines…In the ramp mode! Bombardier Global 7500 with Passport 20 Engines Comac ARJ-21 with CF34-10A Engines… In the ramp mode! Comac ARJ21 with CF34-10 Engines 051321 Slide 13
Slide 14: Update on GE Aviation Jet Engine Programs (Continued)
Update on GE Aviation Jet Engine Programs (Continued) Comac C919 with LEAP-1C Engines…Comac has indicated they intend to certify and begin deliveries of the aircraft before the end of 2021; Park’s Lightning Strike Protection materials now being used on program Boeing 747-8…Boeing has announced i
Slide 15: Commercial Aerospace Year in Review… Armageddon Revisited
Commercial Aerospace Year in Review… Armageddon Revisited Airplanes Parked by the Thousands Airline Terminals were Ghost Towns Airplanes Flying Almost Empty Thousands of Flights Cancelled Thousands and thousands of employees were laid off throughout the Commercial Aircraft and Commercial A
Slide 16: Commercial Aerospace Year in Review… Armageddon Revisited (Continued)
Commercial Aerospace Year in Review… Armageddon Revisited (Continued) But, at Park, we did not completely buy all the doom and gloom news…we did not buy that the “End of Days” were at hand So, we made arrangements with MRAS to maintain minimum monthly baseline (critical mass) production levels t
Slide 17: Commercial Aerospace Year in Review… Armageddon Revisited (Continued)
Commercial Aerospace Year in Review… Armageddon Revisited (Continued) We spoke at length, during our FY2021 Q1, Q2 and Q3 investor calls, about the significant divergence from and mismatch between the minimum monthly baseline (critical mass) production amounts agreed to with MRAS and the then curr
Slide 18: The GE Aviation Jet Engine Programs Park is on are in the Ramp Mode
The GE Aviation Jet Engine Programs Park is on are in the Ramp Mode And the ramp is looking steep! For perspective, GE Aviation Program Sales for the following periods were: CY2019: $29.3 Million CY2020: $15.8 Million Last 6 Months of CY2020: $5.0 Million CY2021 Forecast for GE Aviation Pr
Slide 19: The GE Aviation Jet Engine Programs Park is on are in the Ramp Mode (Continued)
The GE Aviation Jet Engine Programs Park is on are in the Ramp Mode (Continued) In addition, we recently received an updated Long-Term Forecast for GE Aviation Program Sales for CY2021 through CY2029 (the balance of the Firm Pricing LTA period), and… On an apples to apples basis, total updated f
Slide 20: How is Park Responding to the GE Aviation Programs Ramp-up?
How is Park Responding to the GE Aviation Programs Ramp-up?…It is All About Our People Park’s current People count is 106! So, what happened? Why haven’t we increased our People count as planned? • People getting paid to stay home? Who is that helping? But, as usual, Park’s People are steppi
Slide 21: How is Park Responding to the GE Aviation Programs Ramp-up? (Continued)
How is Park Responding to the GE Aviation Programs Ramp-up?…It is All About Our People (Continued) And Thank Goodness for Park’s Customer Flexibility Program Current Total Participation: 80%...Participation break-down: • 2 job categories: 47% • 3 job categories: 30% • 4 job categories: 18% • 5 j
Slide 22: GE Aviation Programs Sales History and Forecast Estimates
GE Aviation Programs Sales History and Forecast Estimates GE Aviation Programs sales history: FY2020 Total: $28.9 Million FY2021 Q1: $4.1 Million FY2021 Q2: $2.9 Million FY2021 Q3: $1.8 Million* FY2021 Q4: $4.4 Million FY2021 Total: $13.2 Million Cathay Pacific 747-8 Departing Anchorag
Slide 23: Park's Financial Performance History and Forecast Estimates
Park’s Financial Performance History and Forecast Estimates FY2021 Sales and Adjusted EBITDA history: Sales Adjusted EBITDA FY2021 Q1 $12.2 Million $2.4 Million FY2021 Q2 $9.3 Million $1.4 Million FY2021 Q3 $10.4 Million $1.4 Million FY2021 Q4 $14.4 Million $3.3 Million FY2021 Total $46.3 Million
Slide 24: Update on Major Expansion of Newton, Kansas Facilities
Update on Major Expansion of Newton, Kansas Facilities Total budget: approximately $19 Million What happened? Spending To date: approximately $15.0 Million To go: approximately $4.0 Million Completion expected June of 2021 Manufacturing trials expected to begin in July of 2021 Qualif
Slide 25: Park's Reflections on its 2021 Fiscal Year… Park's Finest Hour?
Park’s Reflections on its 2021 Fiscal Year… Park’s Finest Hour? Park had its share of tragedy and heartbreak during the year… The kind which does not go away But, at Park, we don’t quit, we don’t give up and we don’t back down…its is just not in our nature to do so We pushed forward with our
Slide 26: Park's Reflections on its 2021 Fiscal Year… Park's Finest Hour? (Continued)
Park’s Reflections on its 2021 Fiscal Year… Park’s Finest Hour? (Continued) Park is a strange and unusual company filled with wonderful and special People We are very fortunate when it comes to our People We are not like the others...at Park, we play for keeps... Park’s 2021 Fiscal Year may
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Slide 28: Appendix I: Supplementary Financial Information
APPENDIX I Park Aerospace Corp. May 13, 2021 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 Commissi
Slide 29: Appendix I
APPENDIX I Before special items, net earnings for the 2021 fiscal year fourth quarter were $2.3 million, or 16.2% of sales, compared to $2.8 million, or 18.0% of sales, for the 2020 fiscal year fourth quarter and $1.0 million, or 10.0% of sales, for the 2021 fiscal year third quarter. Depreciation a