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Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results

1. PKE reported $62M in net sales for fiscal 2025, up from $56M. 2. Net earnings for Q4 2025 dropped to $1.246M from $2.670M year-over-year. 3. Company recorded $1.098M in pre-tax storm damage charges in 2025. 4. Basic EPS decreased to $0.06 for Q4 2025, showing declining profitability. 5. PKE to hold a conference call discussing financial results today at 5:00 PM EDT.

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Why Bearish?

Declining net earnings and EPS could deter investor confidence. Historical downturns in earnings have led to stock price drops.

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The financial results indicate potential issues impacting future performance, important for investor perception.

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Immediate negative results may influence stock in the near term, similar to past quarterly declines.

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AERRTXBA
NEWTON, Kan., May 15, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year fourth quarter and full fiscal year ended March 2, 2025. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/bnajz2w5 at 5:00 p.m. EDT today. The presentation materials will also be available at approximately 4:15 p.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page. Park reported net sales of $16,939,000 for the 2025 fiscal year fourth quarter ended March 2, 2025 compared to $16,333,000 for the 2024 fiscal year fourth quarter ended March 3, 2024 and $14,408,000 for the 2025 fiscal year third quarter ended December 1, 2024. Park’s net sales for the fiscal year ended March 2, 2025 were $62,026,000 compared to $56,004,000 for the fiscal year ended March 3, 2024. Net earnings for the 2025 fiscal year fourth quarter were $1,246,000 compared to $2,670,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings were $5,882,000 for the fiscal year ended March 2, 2025 compared to $7,473,000 for the fiscal year ended March 3, 2024. The 2025 fiscal year fourth quarter and 2025 fiscal year were comprised of 13 weeks and 52 weeks, respectively, while the 2024 fiscal year fourth quarter and 2024 fiscal year were comprised of 14 weeks and 53 weeks, respectively. Net earnings before special items for the 2025 fiscal year fourth quarter were $2,417,000 compared to $2,308,000 for the 2024 fiscal year fourth quarter and $1,577,000 for the 2025 fiscal year third quarter. Net earnings before special items for the fiscal year ended March 2, 2025 were $7,867,000 compared to $7,664,000 for the fiscal year ended March 3, 2024. Adjusted EBITDA for the 2025 fiscal year fourth quarter was $3,418,000 compared to $3,201,000 for the 2024 fiscal year fourth quarter and $2,415,000 for the 2025 fiscal year third quarter. Adjusted EBITDA for the fiscal year 2025 was $11,649,000 compared to $10,989,000 for fiscal year 2024. During the 2025 fiscal year, the Company recorded $1,098,000 of pre-tax charges related to storm damage to the Company’s facilities in Newton Kansas. During the 2025 fiscal year fourth quarter, the Company recorded a non-cash tax charge of $2,147,000 related to the potential repatriation by the Company of undistributed foreign earnings on certain funds held by the Company’s Singapore subsidiary. The Company also recorded a tax benefit of $957,000 in the 2025 fiscal year fourth quarter related to the “running” or expiration of the statute of limitations for certain provisions for uncertain tax positions previously established by the Company. During the 2024 fiscal year, the Company recorded $570,000 of pre-tax activist shareholder defense costs, $65,000 of pre-tax losses on sales of investments to fund the $1.00 per share special cash dividend paid on April 6, 2023 to shareholders of record on March 9, 2023 and a $109,000 pre-tax charge for the modification of previously granted stock options in connection with the special cash dividend in the 2024 fiscal year first quarter. The Company recorded $70,000 of pre-tax costs to settle an insurance claim as the result of the bankruptcy of an insurer and $38,000 of pre-tax recruiting fees in the 2024 fiscal year fourth quarter and fiscal year. The Company recognized a tax benefit of $657,000 in the 2024 fiscal year fourth quarter and fiscal year primarily from the reductions of uncertain tax positions related to expiring statutes of limitations on tax positions taken in prior years regarding the taxability of funds repatriated from the Company’s subsidiary in Singapore, and the Company recorded $224,000 of additional tax expense for tax deductions becoming unavailable related to stock options expiring unexercised in the 2024 fiscal year fourth quarter and fiscal year.  Park reported basic and diluted earnings per share of $0.06 for the 2025 fiscal year fourth quarter compared to $0.13 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter. Basic and diluted earnings per share before special items were $0.12 for the 2025 fiscal year fourth quarter compared to $0.11 for the 2024 fiscal year fourth quarter and $0.08 for the 2025 fiscal year third quarter. Park reported basic and diluted earnings per share of $0.29 for the 2025 fiscal year compared to $0.37 for the 2024 fiscal year. Basic and diluted earnings per share before special items were $0.39 for the 2025 fiscal year compared to $0.38 for the 2024 fiscal year. The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required passcode for attendance by phone is 13753688. For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EDT today through 11:59 p.m. EDT on Thursday, May 22, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/bnajz2w5 and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page. It can also be accessed by dialing (844) 512-2921 in the United States and Canada, and (412) 317-6671 in other countries. The required passcode for accessing the replay by phone is 13753688. Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's website at https://parkaerospace.com/shareholders/investor-conference-calls/. Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as a charge related to storm damage, a non-cash tax charge, reductions in uncertain tax positions, activist shareholder defense costs, losses on sales of investments, charges for modification of previously granted stock options, tax deductions becoming unavailable, costs to settle an insurance claim, and recruiting fees. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA, and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP. Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park’s advanced composite materials include film adhesives (Aeroadhere®) and lightning strike protection materials (Electroglide®). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park’s objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up. Additional corporate information is available on the Company’s website at www.parkaerospace.com Contact: Donna D’Amico-Annitto 486 North Oliver Road, Bldg. ZNewton, Kansas 67114(316) 283-6500 Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):  13 Weeks Ended  14 Weeks Ended  13 Weeks Ended 52 Weeks Ended  53 Weeks Ended        March 2, 2025  March 3, 2024  December 1, 2024 March 2, 2025  March 3, 2024Sales$16,939   $16,333   $14,408  $62,026   $56,004              Net Earnings before Special Items1$2,417   $2,308   $1,577  $7,867   $7,664 Special Items, Net of Tax:            Activist Shareholder Defense Costs -    -    -   -    (570)Stock Option Modification -    -    -   -    (109)Loss on Sale of Marketable Securities -    -    -   -    (65)Insurer Bankruptcy Cost -    (70)   -   -    (70)Recruiting Fees -    (38)   -   -    (38)Storm Damage Charge -    -    -   (1,098)   - Income Tax Effect on Pretax Special Items 19    37    -   303    228 Tax Provision on Foreign Earnings (2,147)   -    -   (2,147)   - Reduction in Uncertain Tax Positions 957    657    -   957    657 Tax Impact of Cancelled Stock Options -    (224)   -   -    (224)Net Earnings$1,246   $2,670   $1,577  $5,882   $7,473                           Basic Earnings per Share:            Basic Earnings before Special Items1$0.12   $0.11   $0.08  $0.39   $0.38 Special Items:            Activist Shareholder Defense Costs -    -    -   -    (0.03)Stock Option Modification -    -    -   -    (0.01)Loss on Sale of Marketable Securities -    -    -   -    - Storm Damage Charge -    -    -   (0.05)   - Income Tax Effect on Pretax Special Items -    -    -   0.01    0.01 Tax Provision on Foreign Earnings (0.11)   -    -   (0.11)   - Reduction in Uncertain Tax Positions 0.05    0.03    -   0.05    0.03 Tax Impact of Cancelled Stock Options -    (0.01)   -   -    (0.01)Basic Earnings per Share$0.06   $0.13   $0.08  $0.29   $0.37                                        Diluted Earnings before Special Items1$0.12   $0.11   $0.08  $0.39   $0.38 Special Items:            Activist Shareholder Defense Costs -    -    -   -    (0.03)Stock Option Modification -    -    -   -    (0.01)Loss on Sale of Marketable Securities -    -    -   -    - Insurer Bankruptcy Cost -    -    -   -    - Recruiting Fees -    -    -   -    - Storm Damage Charge -    -    -   (0.05)   - Income Tax Effect on Pretax Special Items -    -    -   0.01    0.01 Tax Provision on Foreign Earnings (0.11)   -    -   (0.11)   - Reduction in Uncertain Tax Positions 0.05    0.03    -   0.05    0.03 Tax Impact of Cancelled Stock Options -    (0.01)   -   -    (0.01)Diluted Earnings per Share$0.06   $0.13   $0.08  $0.29   $0.37                           Weighted Average Shares Outstanding:            Basic 19,945    20,253    19,982   20,099    20,304 Diluted 20,022    20,357    20,077   20,190    20,393              1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.                           Comparative balance sheets (in thousands):  March 2, 2025 March 3, 2024Assets(unaudited)  Current Assets   Cash and Marketable Securities$68,834  $77,211 Accounts Receivable, Net 12,903   12,381 Inventories 7,213   6,404 Prepaid Expenses and Other Current Assets 1,344   2,849 Total Current Assets 90,294   98,845     Fixed Assets, Net 21,650   23,499 Operating Right-of-use Assets 308   95 Other Assets 9,856   9,870 Total Assets$122,108  $132,309     Liabilities and Shareholders' Equity   Current Liabilities   Accounts Payable$2,513  $3,514 Accrued Liabilities 1,318   1,986 Operating Lease Liability 40   53 Income Taxes Payable 5,390   4,105 Total Current Liabilities 9,261   9,658     Long-term Operating Lease Liability 318   82 Non-current Income Taxes Payable -   5,259 Deferred Income Taxes 5,304   3,222 Other Liabilities 71   1,174 Total Liabilities 14,954   19,395     Shareholders’ Equity 107,154   112,914     Total Liabilities and Shareholders' Equity$122,108  $132,309     Additional information (unaudited)   Equity per Share$ 5.36  $ 5.58          Comparative statements of operations (in thousands – unaudited):  13 Weeks Ended  14 Weeks Ended  13 Weeks Ended  52 Weeks Ended  53 Weeks Ended               March 2, 2025  March 3, 2024  December 1, 2024  March 2, 2025  March 3, 2024              Net Sales$16,939   $16,333   $14,408   $62,026   $56,004               Cost of Sales 11,981    11,880    10,580    44,384    39,470               Gross Profit 4,958    4,453    3,828    17,642    16,534 % of net sales 29.3%   27.3%   26.6%   28.4%   29.5%              Selling, General & Administrative Expenses 2,107    1,882    1,982    8,246    8,154 % of net sales 12.4%   11.5%   13.8%   13.3%   14.6%              Earnings from Operations 2,851    2,571    1,846    9,396    8,380                             Storm Damage Charge -    -    -    (1,098)   - Interest and Other Income:             Interest Income 335    329    290    1,209    1,053               Earnings from Operations before Income Taxes 3,186    2,900    2,136    9,507    9,433               Income Tax Provision 1,940    230    559    3,625    1,960                         Net Earnings$1,246   $2,670   $1,577   $5,882   $7,473 % of net sales 7.4%   16.3%   10.9%   9.5%   13.3%                             Reconciliation of non-GAAP financial measures (in thousands – unaudited): Reconciliation of Non-GAAP Financial Measures              Reconciliation of GAAP Net Earnings to Adjusted EBITDA                          13 Weeks Ended  14 Weeks Ended  13 Weeks Ended  52 Weeks Ended  53 Weeks Ended               March 2, 2025  March 3, 2024  December 1, 2024  March 2, 2025  March 3, 2024GAAP Net Earnings$1,246   $2,670   $1,577   $5,882   $7,473 Adjustments:             Income Tax Provision 1,940    230    559    3,625    1,960 Interest Income (335)   (329)   (290)   (1,209)   (1,118)Depreciation 460    418    464    1,851    1,402 Stock Option Expense 107    104    105    402    420 Special Items:             Activist Shareholder Defense Costs -    -    -    -    570 Stock Option Modification Charge (a) -    -    -    -    109 Pre-tax Losses on Sales of Investments (b) -    -    -    -    65 Insurer Bankruptcy Cost -    70    -    -    70 Recruiting Fees -    38    -    -    38 Storm Damage Charge -    -    -    1,098    - Adjusted EBITDA$3,418   $3,201   $2,415   $11,649   $10,989               (a) pre-tax charge for the modification of previously granted stock options in connection with the special dividend in the 2024 fiscal year first quarter (b) to fund the $1.00 per share special dividend paid on April 6, 2023 to shareholders of recordon March 9, 2023              

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