Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Q3 FY2020 Earnings Presentation
19 slides from Park Aerospace's earnings presentation, Jan 9, 2020
Slide 1: FY2020 Q3 Investor Conference Call
FY2020 Q3 Investor Conference Call January 9, 2020
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: Special Dividend
Special Dividend On January 8, 2020, Park’s Board of Directors declared a special dividend of $1.00 per share payable February 20, 2020 to shareholders of record on January 21, 2020. The total amount of this special dividend will be approximately $20.5 Million Including this special dividend and
Slide 4: Doing the Cash Math
Doing the Cash Math The Cash Math: $144.2M Cash at end of Q3 of FY20 - 17.7M Remaining transition tax installment payments* - 15.1M** Remaining Newton, KS facility expansion costs - 20.5M Special cash dividend payment $90.9M** Approximately $91M*** of cash remaining after all items lis
Slide 5: Update on Major Expansion of Newton, KS Facilities
Update on Major Expansion of Newton, KS Facilities Estimated Expansion Budget $20.5 Million Spending thru FY20 Q3 5.4 Million Remaining to be Spent $15.1 Million Completion now expected by end of CY2020 Delay caused by: Governmental approval process more complex and time consuming than antic
Slide 6: Estimated Manufacturing Capacity
Estimated Manufacturing Capacity* Hot-Melt Treated Composite Materials: 60” Film and Tape Lines: $45M 24” Film and Tape Lines: $ 8M** Solution Treated Composite Materials: $55M Composite Parts Fabrication and Assembly: ??? Estimated Total Composite Materials Manufacturing Capacity: $108M I
Slide 7: Estimated Manufacturing Capacity (Continued)
Estimated Manufacturing Capacity (Continued) As a result of short-term variability (peaks and valleys) of GE Programs business, it may be difficult to handle the peaks with $45M of Hot-Melt Materials Manufacturing Capacity Additional Hot-Melt Materials Manufacturing Capacity provided by expansio
Slide 8: Quarterly Results for FY2019 and FY2020 Q1, Q2 and Q3
Quarterly Results for FY2019 and FY2020 Q1, Q2 and Q3 (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 $13,723 $15,847 Gross Profit $2,852 $3,145 $4,284 $5,903 $4,804 $3,813 $5,022 Gross Margin 27.4% 28.1% 33.3% 35.4% 32.1% 27.8%
Slide 9: Discussion of FY20 Q3
Discussion of FY20 Q3 Carbon fiber supply continues to be very tight…very little slack or leeway in system Park’s carbon fiber and fabric raw material inventory at historically low levels…hand to mouth situation Distorted carbon fiber weave and polyurethane film wrinkling issues from FY20 Q2,
Slide 10: Discussion of FY20 Q3 (Continued)
Discussion of FY20 Q3 (Continued) Park’s People Count: Park hired 10 additional Production and Lab People during FY20 Q3 to staff the 4th shift for Hot-Melt tape line operations and for other manufacturing and lab functions (Hot-Melt tape line operation is now running 24/7) Managing Park’s Peo
Slide 11: FY2020 Q4 and FY2020 Forecast Estimates
FY2020 Q4 and FY2020 Forecast Estimates (Historical Data In Thousands)* FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4** FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY2020 Sales $10,393 $11,211 $12,853 $16,659 $14,950 $13,723 $15,847 $15.0M to $16.0M $59.5M to $60.5M EBITDA $1,385 $1,663 $2,948 $4,251 $3,372 $2,406 $3,622 $3.
Slide 12: FY2020 Q4 and FY2020 Forecast Estimates (Continued)
FY2020 Q4 and FY2020 Forecast Estimates (Continued) 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 Because of tight manufacturing capacity, reduced
Slide 13: Update on Major Jet Engine Company Programs
Update on Major Jet Engine Company Programs Boeing 747-8: Flat…How long will “Queen of the Skies” be produced? A320neo/A321neo/A321XLR with LEAP-1A Engines: Strong and still ramping Bombardier Global 7500 with Passport 20 Engines: Ramping nicely Comac ARJ21 with CF34-10A Engines: Ramping nic
Slide 14: Recent Developments
Recent Developments Major Private Space Company…NRE in progress Qualified for initial low rate production on new EVTOL Program Qualified on new Hypersonics Program…Original PO received DC-10/KC-10 Aircraft…In production of “niche” component using Park materials Northrop Grumman recently an
Slide 15: Recent Developments (Continued)
Recent Developments (Continued) Park still immersed in battling through challenges relating to steep program ramps, ongoing severe stress on Aerospace Industry supply chain, tight supply of raw materials, operating with tight raw materials inventories and Park’s own manufacturing capacity limitati
Slide 16: 01/08/2020 Slide 16
01/08/2020 Slide 16
Slide 17: Appendix I: Supplementary Financial Information
APPENDIX I Park Aerospace Corp. January 9, 2020 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 Commi
Slide 18: Appendix I
APPENDIX I Gross Profit for the 2020 fiscal year third quarter was $5.0 million, or 31.7% of sales, compared to $4.3 million, or 33.3% of sales, for the 2019 fiscal year third quarter and $3.8 million, or 27.8% of sales, for the 2020 fiscal year second quarter. Selling, general and administrative ex
Slide 19: Appendix I
APPENDIX I be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements. G