Park Electrochemical Reports Second Quarter Results.MELVILLE, N.Y. -- Park Electrochemical electrochemical /elec·tro·chem·i·cal/ (-kem´i-k'l) pertaining to interaction or interconversion of chemical and electrical energies. e·lec·tro·chem·i·cal adj. Corp. (NYSE NYSE See: New York Stock Exchange :PKE PKE - public-key encryption ) reported sales of $66,518,000 for its 2007 fiscal year second quarter ended August 27, 2006 compared to sales of $52,442,000 for the second quarter of last year. Park's sales for the first six months were $129,356,000 compared to sales of $108,118,000 for last year's first six months. Park reported net earnings before special items of $8,470,000 for the second quarter ended August 27, 2006 compared to net earnings of $6,057,000 for last fiscal year's second quarter ended August 28, 2005. During the current year's second quarter, the Company recorded a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $1,316,000 in connection with the termination of an insurance arrangement with Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Shore, Park's founder and former Chairman, and recognized a $499,000 tax benefit relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc this insurance termination charge. During the quarter, Park also recognized a tax benefit of $3,500,000 relating to the elimination of certain valuation allowances previously established relating to deferred tax assets in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and a tax benefit of $1,391,000 relating to the elimination of reserves no longer required as the result of the satisfactory completion of a tax audit. Accordingly, net earnings were $12,544,000 for the second quarter ended August 27, 2006 compared to net earnings of $6,057,000 for last fiscal year's second quarter ended August 28, 2005. For the six-month period ended August 27, 2006, Park reported net earnings before special items of $17,364,000 compared to net earnings of $12,444,000 for last year's first six-month period. As mentioned above, the Company recorded a pre-tax charge of $1,316,000 in connection with the termination of an insurance arrangement and recognized a tax benefit of $499,000 relating to the insurance termination charge, a tax benefit of $3,500,000 relating to the elimination of valuation allowances and a tax benefit of $1,391,000 relating to the elimination of reserves no longer required. Last year's six-month period included an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $1,059,000 for employment termination benefits related to the reduction in workforce at the Company's Neltec Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. subsidiary in Mirebeau, France, which the Company
recorded in the first quarter ended May 29, 2005. Accordingly, net
earnings were $21,438,000 for the six-month period ended August 27, 2006
compared to net earnings of $11,385,000 for last year's first
six-months.Park reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before special items of $.42 and $.86, respectively for the second quarter and six-month period ended August 27, 2006 compared to $.30 and $.62 for last year's second quarter and six-month period. Diluted earnings per share were $.62 and $1.06, respectively, for the second quarter and six-months ended August 27, 2006 compared to $.30 and $.57, respectively, for last year's second quarter and first six-month period. The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today. Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and other material information may be discussed in this conference call. The conference call dial-in number is (888) 802-2280. For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Sunday Sunday: see Sabbath; week. , September 24, 2006. The conference call replay can be accessed by dialing (888) 203-1112 and entering passcode 4729798 or on the Company's web site at www.parkelectro.com under the caption "Investor Conference Calls". Any additional material financial or statistical data disclosed in the conference call will also be available at the time of the conference call on the Company's web site at www.parkelectro.com under the caption "Investor Conference Calls". Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its financial results were limited to generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") financial measures, which include special items, such as insurance arrangement termination charges, tax benefits and employment termination benefits charges. Accordingly, in addition to disclosing its financial results determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, Park discloses non-GAAP 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 Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets do not include such special items. The detailed operating information presented below reconciles the non-GAAP operating results before special items to net earnings determined in accordance with GAAP. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP. Certain portions of this press release may 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. Such factors include, but are not limited to, general conditions in the electronics industry, Park's competitive position, the status of Park's relationships with its customers, economic conditions in international markets, the cost and availability of utilities, and the various factors set forth in Item 1A "Risk Factors" and under the caption "Factors That May Affect Future Results" after Item 7 of Park's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended February 26, 2006. Park Electrochemical Corp. is a global advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, company which develops and manufactures high-technology digital and RF/microwave printed circuit materials (the Nelco(R) product line) and advanced composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the (the Nelcote(TM) product line) principally for the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and internet infrastructure, high-end computing computing - computer and aerospace markets. Park's core capabilities are in the areas of polymer chemistry Polymer chemistry or macromolecular chemistry is a multidisciplinary science that deals with the chemical synthesis and chemical properties of polymers or macromolecules. formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation and coating technology. The Company's manufacturing facilities are located in Singapore, China, France, Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Additional corporate information is available on the Company's web site at www.parkelectro.com.
The performance table (in thousands, except per share
amounts-unaudited):
13 weeks Ended 26 weeks Ended
-------------- --------------
8/27/06 8/28/05 8/27/06 8/28/05
------- ------- ------- -------
Sales $66,518 $52,442 $129,356 $108,118
Net Earnings before Special
Items $8,470 $6,057 $17,364 $12,444
Special Items 4,074 - 4,074 (1,059)
--------- --------- --------- ---------
Net Earnings $12,544 $6,057 $21,438 $11,385
Basic and Diluted Earnings Per
Share:
Basic Earnings before
Special Items $0.42 $0.30 $0.86 $0.62
Special Items 0.20 - 0.20 (0.05)
--------- --------- --------- ---------
Basic Earnings Per Share $0.62 $0.30 $1.06 $0.57
Diluted Earnings before
Special Items $0.42 $0.30 $0.86 $0.62
Special Items 0.20 - 0.20 (0.05)
--------- --------- --------- ---------
Diluted Earnings Per
Share $0.62 $0.30 $1.06 $0.57
Weighted Average Shares
Outstanding:
Basic 20,183 20,032 20,159 19,989
Diluted 20,295 20,223 20,311 20,149
The comparative balance sheets (in thousands):
8/27/06 2/26/06
------- -------
(unaudited)
Assets
------
Current Assets
Cash and Marketable Securities $192,458 $199,652
Accounts Receivable, Net 41,299 35,964
Inventories 16,319 15,022
Other Current Assets 4,607 3,023
------------ ---------
Total Current Assets 254,683 253,661
Fixed Assets, Net 51,556 54,370
Other Assets 6,891 3,281
------------ ---------
Total Assets $313,130 $311,312
============ =========
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities
Accounts Payable $14,893 $13,259
Accrued Liabilities 16,885 14,651
Income Taxes Payable 7,743 10,817
------------ ---------
Total Current Liabilities 39,521 38,727
Deferred Income Taxes 5,185 5,193
Restructuring Accruals - Non-Current 4,472 4,718
Liability from Discontinued Operations 17,252 17,251
------------ ---------
Total Liabilities 66,430 65,889
Stockholders' Equity 246,700 245,423
------------ ---------
Total Liabilities and Stockholders'
Equity $313,130 $311,312
============ =========
Equity Per Share $12.22 $12.20
============ =========
Detailed operating information (in thousands - unaudited):
13 Weeks Ended 26 Weeks Ended
-------------- --------------
8/27/06 8/28/05 8/27/06 8/28/05
------- ------- ------- -------
Net Sales $66,518 $52,442 $129,356 $108,118
Cost of Sales 50,474 40,847 96,949 84,493
% 75.9% 77.9% 74.9% 78.1%
Gross Profit 16,044 11,595 32,407 23,625
% 24.1% 22.1% 25.1% 21.9%
Selling, General and
Administrative
Expenses 6,836 5,953 13,597 12,222
% 10.3% 11.3% 10.6% 11.4%
Profit from Operations 9,208 5,642 18,810 11,403
% 13.8% 10.8% 14.5% 10.5%
Other Income 1,792 1,483 3,741 2,819
% 2.7% 2.8% 2.9% 2.6%
Pre-Tax Operating
Profit 11,000 7,125 22,551 14,222
% 16.5% 13.6% 17.4% 13.2%
Income Tax Provision 2,530 1,068 5,187 1,778
Effective Tax Rate 23.0% 15.0% 23.0% 12.5%
Net Profit Before
Special Items 8,470 6,057 17,364 12,444
% 12.7% 11.5% 13.4% 11.5%
Special Items:
Employment Termination
Benefits Charge - - - 1,059
% - - - 1.0%
Insurance Arrangement
Termination Charge 1,316 - 1,316 -
% 2.0% - 1.0% -
Income Tax Provision
(Benefit) (5,390) - (5,390) -
Effective Tax Rate -55.7% - -25.4% -
After-Tax Special Items 4,074 - 4,074 1,059
% 6.1% - 3.1% 1.0%
After Special Items:
Earnings Before Income
Taxes 9,684 7,125 21,235 13,163
% 14.6% 13.6% 16.4% 12.2%
Income Tax Provision
(Benefit) (2,860) 1,068 (203) 1,778
Effective Tax Rate -29.5% 15.0% -1.0% 13.5%
Net Earnings 12,544 6,057 21,438 11,385
% 18.9% 11.5% 16.6% 10.5%
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