Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Park Electrochemical — Q4 FY2019 Earnings Presentation
22 slides from Park Aerospace's earnings presentation, May 17, 2019
Slide 1: FY2019 Q4 Investor Conference Call
FY2019 Q4 Investor Conference Call May 17, 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: Park's Transformation from an Electronics Company to an Aerospace Company
Park’s Transformation from an Electronics Company to an Aerospace Company Mid-1980’s…Park had become a leading global Electronics Printed Circuit Material Company January 2007…Park commits to Aerospace as second major area of business focus January 2008…Groundbreaking for Park’s new Aerospace Manufa
Slide 4: Park...an Aerospace Company
Park…an Aerospace Company Park develops and manufactures Solution and Hot-Melt Advanced Composite Materials used to produce composite structures for global aerospace markets, including: Wide array of prepreg materials specifically designed for hand lay-up or automated fiber placement (AFP) manuf
Slide 5: Park...an Aerospace Company (Continued)
Park…an Aerospace Company (Continued) Park also offers: Specialty Ablative materials for Rocket Motors and Nozzles Specially designed materials for Radome Applications As a complement to Park’s Advanced Composite Materials offering, Park designs and fabricates Composite Parts, Structures and
Slide 6: Reconciliation of FY2019 Q4 EPS and EPS Before Special Items
Reconciliation of FY2019 Q4 EPS and EPS Before Special Items* 14 Weeks March 3, 2019 Sales $ 16,659 Net Earnings before Special Items $ 3,944 Special Items, Net of Tax: Stock Option Modification (408) Loss on Sale of Marketable Securities (1,160) Tax Cut and Jobs Act (788) Net Earnings from Continui
Slide 7: FY2019 Quarterly Results
FY2019 Quarterly Results* (In Thousands) Q1 Q2 Q3 Q4** FY2019 Sales $10,393 $11,211 $12,853 $16,659 $51,116 Gross Profit $2,852 $3,145 $4,284 $5,903 $16,184 Gross Margin 27.4% 28.1% 33.3% 35.4% 31.7% EBITDA $1,385 $1,664 $2,948 $4,251 $10,248 What we said about Q4 during our January 3, 2019 FY2019
Slide 8: FY2017, FY2018 and FY2019 Results
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% Actual EBITDA $1,055 $4,704** $10,248 What we indicated about FY2019 on Slide 16 of our January 4, 2018 Investor Call Presentation
Slide 9: FY2020 Q1 and Q2 Forecast Estimates
FY2020 Q1 and Q2 Forecast Estimates* (In Thousands) FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 Sales $10,393 $11,211 $12,853 $16,659 $14.25M to $15.25M $15.0M to $16.0M EBITDA $1,385 $1,664 $2,948 $4,251 $3.4M to $3.8M $3.5M to $4.0M Our Philosophy relating to forecasts *From Continuing Ope
Slide 10: 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
Slide 11: Cash, Dividend and Acquisition and JV Strategy
Cash, Dividend and Acquisition and JV Strategy Doing the Cash Math Update: $152M cash at end of Q4 of FY19 19M transition tax installment payments 18M* Newton, KS expansion $115M** Approximately $115M of cash remaining after the costs and expenses listed above are paid $507 million, or
Slide 12: Major Jet Engine Company Programs
Major Jet Engine Company Programs 13 Year Firm Pricing LTA with Middle River POs for Composite Materials for Critical Aerostructure Systems (MRAS) Structure for GE9X Engines for B777X Redundant Factory Announced and in Progress Sole Source for Composite Materials, including Lightning Strike
Slide 13: Major Jet Engine Company Programs (Continued)
Major Jet Engine Company Programs (Continued) Joint Development and Collaboration projects related to: AFP Manufacturing…Development complete and Park Material is qualified and in full production Lightning Strike Protection Material…Development complete and qualified and in full production F
Slide 14: Major Expansion of Park's Newton, KS Facilities
Major Expansion of Park’s Newton, KS Facilities December 2018…Park announced Major Expansion of Newton, KS Aerospace Manufacturing and Development Facilities Redundant Plant for Large Jet Engine Company and its Aircraft OEM Customers; Park promised to build plant once firm pricing through 2029 a
Slide 15: Major Expansion (Continued)
Major Expansion (Continued) Additional Slitting Capacity Additional Freezer and Storage Space Space to accommodate additional Hot-Melt Tape Line or Solution Treating Line Space to accommodate Confidential Joint Development Project with Major Aerospace Customer Additional Office Space Hot
Slide 16: Other Recent Developments
Other Recent Developments Middle River Aerostructure Systems (MRAS) now owned by ST Engineering Aerospace ST Engineering Aerospace is a major global Aerospace company based in Singapore Park is very pleased with this result Park is now one of two remaining American-owned Aerospace composite
Slide 17: 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
Slide 18: The Long Journey
The Long Journey Long and Difficult 10 Year Journey, but we persevered and we did not quit Many Challenges needed to be overcome Much Adversity needed to be faced Many Sacrifices needed to be made We were laughed at and dismissed as irrelevant by some…but they are not laughing now Many,
Slide 19: 051719 - Slide 19
051719 - Slide 19
Slide 20: APPENDIX I Supplementary Financial Information
APPENDIX I Park Electrochemical Corp. May 17, 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 Co
Slide 21: APPENDIX I Fourth Quarter Results Discussion
APPENDIX I Park’s sales were $16.7 million in the 2019 fiscal year fourth quarter compared to $9.9 million in the 2018 fiscal year fourth quarter and $12.9 million in the 2019 fiscal year third quarter. Gross Profit for the 2019 fiscal year fourth quarter was $5.9 million, or 35.4% of sales, compare
Slide 22: APPENDIX I Forward-Looking Statements
APPENDIX I The Supplementary Data may contain “forward-looking statements,” as defined under the Federal Securities Laws, including the Private Securities Litigation Reform Act of 1995. Certain portions of the Supplementary Data which do not relate to historical financial information may be deemed t
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