Park Electrochemical Corp. (NYSE:PKE) Q2 2020 Earnings Conference Call - Final Transcript

Oct 10, 2019 • 11:00 am ET

Previous

Park Electrochemical Corp. (NYSE:PKE) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Christopher Hillary with Roubaix Capital. Your line is open.

Analyst
Christopher Hillary

Hi, good morning.

Executive
Brian E. Shore

Good morning.

Analyst
Christopher Hillary

Great. I just wanted to ask, you said in your comments that we could ask you about your long-term forecasts. I just wanted to ask if you give us some more insight into what you may or may not have included in some of those longer-term forecasts?

Executive
Brian E. Shore

So the long-term forecasts, we've -- I think we've discussed this before. So we start with the long-term forecast we have from MRAS on the GE programs. We haircut that to some extent just to be a little bit conservative. The GE9X program we hear from a lot. So that's kind of our baseline. And then there's 100 line items that are considered in terms of how we get to the top line. The bottom line is just doing the math in terms of once we have the top line, think whatever our costs are and coming up with the bottom line or EBITDA estimate. The -- there's nothing unusual or extraordinary included in the top line, nothing from acquisitions that relates to -- it's based upon organic growth. So I don't know. Is there anything else that I can help you with in that regard? Some other -- did that answer your question?

Analyst
Christopher Hillary

Yeah, I've advance my question. I'm just trying to get a sense of -- I think in your call today, you discussed that you might prefer to give yourself a little bit extra space in the forecasting and I was essentially asking how you -- with that in mind, how you characterize the longer-term forecasts?

Executive
Brian E. Shore

Extra space on the top line and bottom line, just one understanding we are getting at.

Analyst
Christopher Hillary

I think, whichever way you think is more accurate, describe it?

Executive
Brian E. Shore

Well, we're not going to update our long term forecast now as I said. We're going to do that once a year and we do the forecast. What we're telling you is this, what we think is going to happen as we've commented and we don't do forecasts, either short-term or long-term, which are created, so we can beat it and be hero and that kind of thing. We give you a forecast, we tell you this is what we think will happen based upon all the assumptions we're making, based upon the fact that we're going to work very hard to achieve these things. So we're not inclined to give you a conservative forecast. So we can be heroes and every quarter where it's a wonderful. I know a lot of companies will do that. I don't mean to be sarcastic about it, but it's just not what we would do. I think in the third quarter, sorry, the second quarter rather there were these three events, which were unexpected and -- but they don't have impacts on a long term though, I don't think. Those are short-term things and when you get to quarterly forecasting