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

Oct 10, 2019 • 11:00 am ET

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

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Presentation
Operator
Operator

Good morning. My name is Shannon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace Corp Second Quarter Fiscal Year 2020 Earnings Release Conference Call and Investor Presentation. [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.

Executive
Brian E. Shore

Thank you, operator. Welcome everybody to our second quarter call. This is Brian and with me as usual is Matthew Farabaugh, our CFO. So we have a presentation we prepared for you and for this call, it's been posted on our website and also there is a link that's referred to in the earnings news release. So you probably want to get a copy of that in front of you because Matt and I will be going through the presentation.

There's also some supplemental financial information that's attached to the presentation. I think it's Appendix 1. We're not going to read through it, but it's something you might want to take a look at some point. Obviously, you know the news release is out, the earnings release is out as of earlier this morning. So there is a lot to cover and I'm going to try to cover some more complex topics to give you some perspective on the quarter. So please just try to bear with us. But why not we get started. So on Slide 2, we have our forward-looking disclaimer. We're not going to read through that, of course, but if you have any questions about it, please give us a call. Thanks, on that.

Slide 3, Matt, why don't you pick up on Slide 3, talking about the expansion spending and also top five customers.

Executive
P. Matthew Farabaugh

Sure. Thanks, Brian. The -- just as a reminder, we had announced that we are doing a major expansion at our Newton Kansas facility and we made that announcement back in December. And we're just -- this slide is really just to give you a quick update on where we're at and the spending on that -- on that expansion. So our estimated budget for the expansion was $20.5 million. So far through the end of Q2, we've spent $3.9 million, so a little bit -- little short of $4 million on that and the remaining to be spent for that expansion is about [Indecipherable]. That expansion is expected to be about [Indecipherable] the construction in the installation of all the equipment is expected to be completed by next summer, so that's the summer of 2020.

Let's see the top 5 customers for the quarter are AAE Aerospace, AAR Corp, Kratos Defense and Security Solutions and Meggitt PLC, and of course MRAS, including subcontractors, and just a reminder that MRAS is now a subsidiary of ST Engineering Aerospace.

Executive
Brian E. Shore

Okay. Thanks, Matt. I'll take it back to. Let's move to Slide 4, everybody please. So here the quarterly results, which you've seen presumably. The sales for