Park Electrochemical Corp. (NYSE:PKE) Q1 2020 Earnings Conference Call Transcript

Jul 11, 2019 • 11:00 am ET

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Park Electrochemical Corp. (NYSE:PKE) Q1 2020 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. (Operator Instructions) And we have a question from Christopher Hillary with Roubaix. Your line is open.

Analyst
Christopher Hillary

Hi. Good morning. Thank you.

Executive
Brian E. Shore

Hi, Christopher.

Analyst
Christopher Hillary

I just want to ask you guys, on the left call you seemed to be optimistic that you're going to be able to find some additional business acquisitions kind of add-on, tuck-ons. I think you discussed some your business partner swinging you in certain directions for it while you you could be as help to them. Is there any update on that?

Executive
Brian E. Shore

Yes. We didn't want to go through whole thing again, because we get redundant, but I just -- we mentioned the fact that we're continuing to reach out now. That's exactly what is going on. Just for you talk about the customers, OEMs are coupled on that. We're close where they have been pointing us in the direction they think we should be focused on and they've been helping us by giving us names. So that's really the basis for the reach out program. It's not just kind of random as we explained last time, we're not just kind of chasing after bankers that have processes and that kind of thing. We're focused on certain components, certain products that are provided to aerospace manufacturing companies and this is based upon input we've received from anyways, we spoke about last time, customers, OEMs, what are we asking them or they tell us, they're saying these areas we'd like to help in. We're not happy exactly with the supply chain in these areas. As we explained last time, the last thing we want to hear is, yes, we have five great suppliers of that kind of product -- that product will end the question for us is what do we bring to the table. So we're looking for areas. That's a hill where they ain't kind of philosophy or strategy looking for areas where our key customers and then OEMs are saying that they are not feeling good about the supply chain in those areas, although those components are critical for aircraft manufacturing.

Analyst
Christopher Hillary

Great. And then just one other question maybe. Just you've been able to deliver pretty impressive degree of profitability at your revenue run rate. Is there some more color or context you might share on how you've been able to accomplish that at this stage in the companies lifecycle as a aerospace composite manufacturer?

Executive
Brian E. Shore

Well, thank you for that question. We don't pat ourselves on the back very much about how profitable we are. We think we need to be more profitable. I don't know -- let me share a couple of things with you that might give you some perspective though. So we're really focused on being more of what we call a niche company. We're not interested in getting on some large program by being aggressive on pricing. We're always looking for something unique and something different, something special. We lose business all the time because we were asked to quote