Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Investor Presentation (November 2019)
21 slides from Park Aerospace's investor presentation, Nov 10, 2019
Slide 1: Company Presentation November 10, 2019
Company Presentation November 10, 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: 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
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”™
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 111019 Slide 5
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
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
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
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
Slide 10: 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% EBITDA $1,055 $4,704** $10,248 *From Continuing Operations 011218 slide 10 **Before Special Items 111019 Slide 10
Slide 11: Park's Long-Term Forecast Estimates
Park’s Long-Term Forecast Estimates FY20 FY21 FY22 FY23 Sales $58.75M to $60.75M $69M to $73M $78M to $84M $87M to $92M EBITDA $12.0M to $13.0M $17.5M to $21M $21.5M to $24.5M $25M to $27.5M EBIT $16M to $19.5M $19.5M to $22.5M $23M to $25.5M Forecast assumes Organic Growth and no Additional Reven
Slide 12: FY2020 Q3 and Q4 Forecast Estimates
FY2020 Q3 and Q4 Forecast Estimates (Historical Data In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $13,723 $14.75M to $15.75M $15.25M to $16.25M EBITDA $1,385 $1,663 $2,948 $4,251 $3,372 $2,406 $3.0M to $3.5M $3.25M to
Slide 13: FY2020 Q3 and Q4 Forecast Estimates (Continued)
FY2020 Q3 and Q4 Forecast Estimates (Continued) AFP manufacturing ramp-up and additional costs Costs of operating 24” Hot-Melt lines for GE9X Continuing rework related to Polyurethane Film issues discussed above Push-out of delivery schedules for GE9X Program Legacy costs expected to conti
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: 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
Slide 18: 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 18 111019 Slide 18
Slide 19: Recent Developments
Recent Developments Ground-Breaking for Major Expansion of Newton, KS Facility on August, 15, 2019 Park Rang Closing Bell at NYSE on August 26, 2019 Park changed name from Park Electrochemical Corp. to Park Aerospace Corp. Principal operating subsidiary has been merged into parent company, a
Slide 20: 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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