Park Electrochemical Corp. (NYSE:PKE) Q1 2020 Earnings Conference Call - Final Transcript
Jul 11, 2019 • 11:00 am ET
Good morning. My name is Katherine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Electrochemical Corporation's First Quarter Fiscal Year 2020 Earnings Release Conference Call and Investor Presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question-and-answer session. (Operator Instructions)
At this time, I will turn today's call over to Mr. Brian Shore, Chairman and Chief Executive Officer. Mr. Shore, you may begin your conference.
Brian E. Shore
Thank you, operator. This is Brian. Welcome everybody to our first quarter conference call. With me, as usual, Matt Farabaugh, our CFO. There is a presentation that I hope you all have accessed before we go through that presentation. After we're done with that, we'll be happy to entertain questions. And I want to point out that there is also supplemental data, financial data, which is attached to presentation as Appendix 1. The presentation is smaller than -- shorter than our last quarter's presentation because it has only been two months since -- less than two months actually since the last quarter presentation. So we don't want just kind of redundant information in here although there is lot to cover, so we're going to try to hustle through it even though it is only 10 pages, so quite a few points for us to hit.
So when we get started on Slide 2, that's our forward-looking disclaimer, then if you have any questions about that, just let us know. Why don't we just move right into Slide 3, and Matt could you help us with Slide 3, please.
Sure, Brian. The Slide 3 shows our reconciliation of EPS from GAAP to special items. And there is only one special item in the quarter and it went through our tax operation line, had a $0.01 impact. So you can see our earnings before special items to $0.14, is $0.01 greater than our net earnings from continuing operations on a GAAP basis. The tax item here -- the tax impact of canceled stock options relates to options for employees of the electronics business that we sold to AGC back in December. The employees had a few months to exercise any stock options they had outstanding, and at the end of that period anything that was left unexercised canceled, and that did in fact happen. Some of the options went unexercised and they did cancel. And as a result, Park lost a tax deduction related to those unexercised items that would have otherwise gotten had they been exercised.
We also show on the slide the top five customers for the quarter and those top five customers are AAE Aerospace, AAR Corp., GKN Aerospace, Middle River Aerostructure Systems including its subcontractors and Nordam Group. Those customers are in alphabetical order and I do want to point out that Middle River Aerostructure Systems was recently sold by GE to ST Engineering Aerospace. So that used to be a GE-related