Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Park Electrochemical — Corporate Update (January 2018)
18 slides from Park Aerospace's corporate update, Jan 4, 2018
Slide 1: Investor Conference Call
Exhibit 99.2 PARK 1B ea Ce AR AREOG=1 s BaD ME SIEE ANIL, C2O2REPs Investor Conference Call January 4, 2018
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: Forward Looking Disclaimer (continued)
Forward Looking Disclaimer (continued) With respect to projected pro form information regarding our Aerospace Business potential risks and uncertainties include, > > The Company would have greater exposure to the risks ofthe aerospace industry generally, including volume of commercial and business a
Slide 4: Financial Highlights
Financial Highlights > Park Paid off its Bank Loan in full on January 3, 2018; Balance was $68.5 Million. Park now has zero long-term debt. > Park's Board of Directors declared a special dividend of $3.00 per share payable February 13, 2018 to shareholders of record on January 23, 2018. The total am
Slide 5: Strategic Evaluation of Park's Electronic Business
Strategic Evaluation of Park’s Electronic Business > Park has decided to conduct a strategic evaluation of Park’s Iconic Electronics Business, including the potential sale of the Electronics Business. > Park has retained Greenhill & Co., LLC to assist in the strategic evaluation of Park's Electronic
Slide 6: Park's Iconic Electronics Business
Park’s Iconic Electronics Business (AKA “Nelco”) > Develops and Manufactures high-technology digital and RF/Microwave Printed Circuit Materials principally for the Service Provider Infrastructure, Enterprise, Military/Aerospace and Semiconductor Test Markets. > Global Business with manufacturing loc
Slide 7: Park's Iconic Electronics Business (Continued)
Park’s Iconic Electronics Business (Continued) > Something Built From Nothing; True Lasting Value Built the Park Way: v Being true to Park’s Principles v Hard Work v Perseverance > Wonderful Products, Wonderful Technology and especially Wonderful People...
Slide 8: Why Consider Sale of Electronics Business?
Why Consider Sale of Electronics Business? > Park is a Small Company with Limited and Focused Resources By Design > Electronics and Aerospace are very Different Industries with very Different Technologies and Markets. > We will look for a New Owner for our Electronics Business which has the Resource
Slide 9: Park's Aerospace Business
Park’s Aerospace Business > Develops and Manufactures Hot-Melt and Solution Advanced Composite Materials for the Aerospace Industry. Park also designs and manufactures composite parts, assemblies and primary and secondary structures and low- volume tooling for the Aerospace Industry. > Principle Man
Slide 10: Park's Aerospace Business (Continued)
Park’s Aerospace Business (Continued) > January 17, 2008...Ground-breaking of facility in Newton, Kansas. > 2014...Park goes into production on first program for Major Jet Engine Manufacturer. > Park's very special Aerospace Business was built from Nothing (a farm field producing wheat 10 years ago)
Slide 11: Major Jet Engine Company
Major Jet Engine Company > Year Two of 13 Year LTA with Repricing © > Park Materials also Qualified for after Year 3 and Year 8. internal fixed structure components for multiple engine > Sole Source on multiple Engine Nacelle programs. and Thrust Reverser Programs, including: v 747-8 with Genx 2B En
Slide 12: Major Jet Engine Company (Continued)
Major Jet Engine Company (Continued) > Multiple joint development and collaboration efforts leading to qualifications of new Park Products on major engine programs. Qualifications for two additional new Park Products expected to be complete in FY19. > Development Program related to large composite p
Slide 13: Significant Opportunities with Major Aerospace Company
Significant Opportunities with Major Aerospace Company > Qualification in Progress for Park Materials Related to Two important OEM specifications; Qualifications expected to be complete in FY19 Q1. > Additional Specifications under review for Park Materials. > Significant Opportunities related to sp
Slide 14: Textron's Scorpion ISR/Strike Tactical Aircraft
Textron’s Scorpion ISR/Strike Tactical Aircraft > Park produced large quantities of composite parts and assemblies and low-volume tooling for Textron’s Scorpion Jet Demo Unit One which had its maiden flight on December 12, 2013. > Park produced large quantities of composite parts and assemblies Firs
Slide 15: The Future
Vv Vv The Future If Park’s Electronics Business is sold, Park will become an Aerospace Only Company. Park's Opportunities in Aerospace are now very significant (after 10 Years of Hard Work and Perseverance). If Park's Electronics Business is sold, Park will be able to focus 100% ofits efforts, atten
Slide 16: Park's Baseline Pro-Forma Forecast Estimates
Park’s Baseline Pro-Forma Forecast Estimates Assuming Park’s Electronics Business is Sold FY19 FY20 FY21 FY22 Sales $50M to $54M ‘$58M to $63M $67Mto $72M $76Mto $82M EBITDA $10.5M to $13M $14M to $16.5M $17Mto $20M $21Mto $24M EBIT $9M to $11.5M. $12.5Mto $15M $15Mto $18M $19Mto $22M > FY19 Pro-For
Slide 17: Additional Financial Commentary
Additional Financial Commentary > Although there still is uncertainty regarding the new tax law, Park currently estimates that it will pay approximately $20 Million in taxes related to its overseas earnings and cash. (Park estimates that the repatriation of all of its overseas cash would have result
Slide 18: Thank You!
al Thank You!
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