Park Electrochemical Corp. (NYSE:PKE) Q4 2018 Earnings Conference Call - Preliminary Transcript

May 07, 2018 • 11:00 am ET

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Park Electrochemical Corp. (NYSE:PKE) Q4 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Executive
Matt Farabaugh

of total sales, in the 2018 fiscal year third quarter. Park's aerospace sales were $40.2 million, or 36% of total sales, in the 2018 fiscal year compared to $32.1 million, or 28% of total sales, in the 2017 fiscal year. Park's electronics sales were $71.0 million, or 64% of total sales, in the 2018 fiscal year compared to $82.5 million, or 72% of total sales, in the 2017 fiscal year. Gross Profit for the 2018 fiscal year fourth quarter was $6.9 million, or 24.8% of sales, compared to $7.4 million, or 26.8% of sales, for the 2017 fiscal year fourth quarter and $6.1 million, or 23.2% of sales, for the 2018 fiscal year third quarter.

Before special items, selling, general and administrative expenses for the 2018 fiscal year fourth quarter were $4.7 million, or 17.0% of sales, compared to $4.7 million, or 17.0% of sales, for the 2017 fiscal year fourth quarter and $4.6 million, or 17.6% of sales, for the 2018 fiscal year third quarter. Before special items, investment income, net of interest expense, in the 2018 fiscal year fourth quarter was $118,000 compared to $105,000 in the 2017 fiscal year fourth quarter and $45,000 in the 2018 fiscal year third quarter. Before special items, earnings before income taxes for the 2018 fiscal year fourth quarter were $2.3 million, or 8.2% of sales, compared to $2.8 million, or 10.2% of sales, for the 2017 fiscal year fourth quarter and $1.5 million, or 5.8% of sales, for the 2018 fiscal year third quarter.

Before special items, net earnings for the 2018 fiscal year fourth quarter were $2.0 million, or 7.1% of sales, compared to $2.5 million, or 9.2% of sales, for the 2017 fiscal year fourth quarter and $1.1 million, or 4.3% of sales, for the 2018 fiscal year third quarter. Depreciation and amortization expense in the 2018 fiscal year fourth quarter was $755,000 compared to $733,000 in the 2017 fiscal year fourth quarter and $724,000 in the 2018 fiscal year third quarter. Capital expenditures in the 2018 fiscal year fourth quarter were $181,000 compared to $48,000 in the 2017 fiscal year fourth quarter and $203,000 in the 2018 fiscal year third quarter The effective tax rate before special items was 13.5% in the 2018 fiscal year fourth quarter compared to 9.1% in the 2017 fiscal year fourth quarter and 25.0% in the 2018 fiscal year third quarter.

For the 2018 fiscal year fourth quarter, the top five customers were AAE Aerospace, GE including its subcontractors, Sanmina, TTM, and Wus, in alphabetical order. The top five customers totaled approximately 46% of total sales during the 2018 fourth quarter. Our top 10 customers totaled approximately 59% of total sales and the top 20 customers totaled approximately 72% of total sales for the 2018 fiscal year fourth quarter.

Executive
Brian Shore

Thanks, Matt okay. So, (inaudible) of course. We do have a few things to cover here, and I'll try to move through them a little bit more quickly because of the late start. First