Park Aerospace Corp. · NYSE:PKE

Park Aerospace — Investor Presentation (August 2019)

22 slides from Park Aerospace's investor presentation, Aug 22, 2019

  1. Slide 1: Company Presentation August 22, 2019

    Company Presentation August 22, 2019

  2. 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

  3. Slide 3: Our Business

    Our Business  Park Aerospace Corp. develops and manufactures Solution and Hot-Melt Advanced Composite Materials used to produce composite structures for global aerospace markets:  Wide array of prepreg materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing

  4. Slide 4: Our Business (Continued)

    Our Business (Continued)  As a complement to our Advanced Composite Materials offering, Park Aerospace designs and fabricates Composite Parts, Structures and Assemblies and Low- Volume Tooling for the Aerospace Industry  Parts include Park Aerospace’s proprietary “Sigma Strut”™ and “Alpha Strut”™

  5. Slide 5: Park's Estimated FY2019 Revenues by Aerospace Market Segment

    Park’s Estimated FY2019 Revenues by Aerospace Market Segment * *UAM stands for Urban Air Mobility. Urban Air Mobility vehicles are also referred to as Air Taxi or eVOTL (electric Vertical Take-Off and Landing) vehicles 011218 slide 5 082219 Slide 5

  6. Slide 6: Park's 65th Anniversary

    Park’s 65th Anniversary  Park founded on March 31, 1954 by Jerry Shore and Tony Chiesa with ~ $60 Thousand Investment  Company started in a small “factory” (garage?) in Woodside, Queens with 5 employees  1954 Results:  Sales: $124,206.59 Park’s Founders  Pretax Profit: $887.38  Taxes Paid: $22

  7. Slide 7: Our History

    Our History March 31, 1954 Park is Founded by Jerry Shore and Tony Chiesa with ~ $60 Thousand Investment November 17, 1960 Park goes Public 1961 Park acquires New England Laminates Company (“Nelco”) in Stamford, CT for ~ $200 Thousand 1984 Park lists on NYSE 1985 Park commences regular Quarterly Cas

  8. Slide 8: Our History (Continued)

    Our History (Continued) Jan 2007 Park commits to Aerospace as second major area of business focus Jan 17, 2008 Ground-breaking of Park’s New Aerospace Facility in an empty field in Newton, KS May 2009 Park’s New Newton, KS Aerospace Facility opens (kind of!) February 28, 2014 (11:00 PM) Park makes f

  9. Slide 9: Our History (Continued)

    Our History (Continued) December 2018 Park enters into Firm Pricing Agreement with MRAS through 2029 December 2018 Park announces Major Expansion of Newton, KS Facility December 2018 Park sells its Electronics Business to AGC Inc. of Tokyo, Japan December 2018 Park’s transformation from an Electroni

  10. Slide 10: FY2017, FY2018 and FY2019 Results (In Thousands)

    FY2017, FY2018 and FY2019 Results* (In Thousands) FY2017 FY2018 FY2019 Sales $31,837 $40,230 $51,116 Gross Profit $8,299 $11,288** $16,184 Gross Margin 26.7% 28.1%** 31.7% EBITDA $1,055 $4,704** $10,248 *From Continuing Operations 011218 slide 10 **Before Special Items 082219 Slide 10

  11. Slide 11: Park's Long-Term Forecast Estimates

    Park’s Long-Term Forecast Estimates FY20 FY21 FY22 FY23 Sales $59M to $64M $69M to $73M $78M to $84M $87M to $92M EBITDA $14.5M to $16.5M $17.5M to $21M $21.5M to $24.5M $25M to $27.5M EBIT $13M to $15M $16M to $19.5M $19.5M to $22.5M $23M to $25.5M  FY20 Forecast is a Pro-Forma forecast which assu

  12. Slide 12: Quarterly Results for FY2019 and FY2020 Q1 (In Thousands)

    Quarterly Results for FY2019 and FY2020 Q1 (In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 Sales $10,393 $11,211 $12,853 $16,659 $14,950 Gross Profit $2,852 $3,145 $4,284 $5,903 $4,804 Gross Margin 27.4% 28.1% 33.3% 35.4% 32.1% EBITDA $1,385 $1,664 $2,948 $4,251 $3,372  Factors which affe

  13. Slide 13: FY2020 Q2 and Q3 Forecast Estimates (In Thousands)

    FY2020 Q2 and Q3 Forecast Estimates (In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 FY20 Q3 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $14.5M to $15.5M $14.75M to $15.75M EBITDA $1,385 $1,664 $2,948 $4,251 $3,372 $3.1M to $3.7M $3.3M to $3.8M  The above FY2020 Q2 and Q3 forecas

  14. Slide 14: FY2020 Q2 and Q3 Forecast Estimates (Continued)

    FY2020 Q2 and Q3 Forecast Estimates (Continued)  Legacy costs expected to continue through FY2020 Q3  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 0

  15. Slide 15: Major Jet Engine Company Programs

    Major Jet Engine Company Programs  Firm Pricing LTA through 2029 with Middle River  Park Composite Materials are Sole Aerostructure Systems (MRAS), now a subsidiary of Source on large primary structure ST Engineering Aerospace component for Passport 20 Engines (not included in MRAS LTA)  Redundan

  16. Slide 16: Major Jet Engine Company Programs (Continued)

    Major Jet Engine Company Programs (Continued)  Joint Development and Collaboration projects with MRAS related to:  AFP Manufacturing…Development complete and Park Material is qualified and in production  Lightning Strike Protection Material…Development complete and Park Material is qualified and

  17. Slide 17: Major Expansion of Park Aerospace Corp.'s Newton, KS Facilities

    Major Expansion of Park Aerospace Corp.’s Newton, KS Facilities  December 2018…Park announced Major Expansion of Newton, KS Aerospace Manufacturing and Development Facilities  Redundant Plant for MRAS and its Aircraft OEM Customers; Park promised to build plant once firm pricing through 2029 agree

  18. Slide 18: Major Expansion (Continued)

    Major Expansion (Continued)  New R & D Lab  Expanded Production Lab  Additional Slitting Capacity  Additional Freezer and Storage Space  Space to accommodate additional Hot-Melt Tape Line or Solution Treating Line  Additional Office Space  Hot-Melt Manufacturing Capacity:  Current: Approxima

  19. Slide 19: Park Aerospace Exotic Programs of Interest

    Park Aerospace Exotic Programs of Interest Textron’s Scorpion ISR/Strike Tactical Aircraft NASA’s James Webb Space Telescope Boeing E4-B Doomsday Aircraft 011218 slide 19 082219 Slide 19

  20. Slide 20: Recent Developments

    Recent Developments  Middle River Aerostructure Systems (MRAS) is now owned by ST Engineering Aerospace of Singapore  “Hit ’em Where They Ain’t” Acquisition Program  Potential JV in Asia  Park changed name from Park Electrochemical Corp. to Park Aerospace Corp.  Principal operating subsidiary h

  21. Slide 21: Recent News from June 2019 Paris Air Show

    Recent News from June 2019 Paris Air Show  Airbus A320/A321neo Paris Air Show Announcements  CFM announced orders and commitments for more than 1,150 LEAP-1A Engines*  IndiGo announced it ordered 560 LEAP-1A Engines for A320neo and A321neo Aircraft, the largest engine order in history*  Airbus A

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    011218 slide 22 082219 Slide 22

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