Park Electrochemical Reports Fiscal Year Results

Apr 30, 2001, 01:00 ET from Park Electrochemical Corp.

    LAKE SUCCESS, N.Y., April 30 /PRNewswire/ -- Park Electrochemical Corp.
 (NYSE:   PKE) reported sales of $129,528,000 for the fourth quarter ended
 February 25, 2001 compared to $104,895,000 for the fourth quarter of last
 year.  Park's sales for the fiscal year ended February 25, 2001 were
 $522,197,000 compared to last year's sales of $425,261,000.
     Park reported earnings of $14,108,000 for the fourth quarter compared to
 $762,000 for last year's fourth quarter.  Earnings for the fiscal year ended
 February 25, 2001 were $49,419,000 compared to $18,297,000 for last year.
 (The fourth quarter earnings for the 2000 fiscal year included a pre-tax
 charge of $4,464,000 for the closure of the Company's plumbing hardware
 business.)
     Park's earnings per share for the fourth quarter were $.88 basic and
 $.74 diluted versus $.05 per share basic and diluted for last year's fourth
 quarter, after adjustment for the three-for-two stock split effected on
 November 8, 2000.  Park's earnings per share for the fiscal year ended
 February 25, 2001 were $3.10 basic and $2.65 diluted compared to $1.16 per
 share basic and $1.12 per share diluted for last year, also adjusted for the
 three-for-two stock split.
     Brian Shore, Park's President and CEO, said, "Our 2001 fiscal year was,
 without a doubt, our best year ever.  I believe the performance of our Company
 and our people was, by almost any measurement, outstanding.  To me, the key
 theme of our 2001 fiscal year was how hard our people worked to keep our
 customers going in an extremely pressurized and demanding environment.  During
 the 2001 fiscal year, the global electronics industry which we serve was
 stronger than any of us could have ever anticipated.  This strength placed
 tremendous pressure on us to provide our customers with extraordinary
 quantities of the highest quality and highest technology product.  But,
 notwithstanding these huge unanticipated demands for our product, our people
 worked extremely hard to meet and exceed the market challenges in almost every
 respect.  Our people did not make excuses.  Our people simply did what they
 needed to do to get the job done ... and the job was done exceptionally well
 in my judgment.  The dedication and commitment of our people is truly
 extraordinary.  Our people met the challenge of last year with dignity and
 integrity, and I must tell you that I believe our Company is stronger now than
 it ever has been!"
     Brian Shore continued, "The current 2002 fiscal year is presenting new
 challenges of a very different kind.  As has become very clear to all of us,
 the global electronics industry had become extremely overheated toward the end
 of the 2000 calendar year, and now the industry is going through a severe
 correction and downturn.  As a matter of fact, this downturn is the worst
 downturn that most of us have ever seen in the global electronics industry.
 Even though our Company has recently gained additional market share with some
 of the best electronics manufacturing companies in the industry, our sales
 volumes and bookings during the first two months of the 2002 fiscal year are
 running at approximately one half of the sales and bookings levels during the
 2001 fiscal year.  Obviously, the global electronics industry is in a
 condition of deep distress at this time."
     Brian Shore continued, "As a result of this deep industry distress, many
 people in our Company have lost their jobs.  In addition, many of our people
 are working short workweeks and many have voluntarily agreed to freeze or
 reduce their compensation.  Our people have done this voluntarily because we
 believe in our business and we are passionately committed to our long-term
 mission.  Certainly, the reduced work hours and pay and frozen salaries are
 difficult for our people.  But, what hurts very deeply is the fact that some
 of our people have lost their jobs.  These are the same people who worked
 incredibly hard last year to satisfy the insatiable appetites of the global
 electronics industry.  Now, these people have lost their jobs because the
 global electronics industry got way ahead of itself last year and is suffering
 from a severe case of indigestion.  It is terribly unfair, and we are very
 pained by this.  Of course, we are only a small part of the global electronics
 supply chain, and there is absolutely nothing we can do about the excesses of
 the global electronics industry.  All we can do is work our hardest every day
 to serve our customers to the very best of our ability ... and that is what we
 did last year and that is what we are continuing to do this year."
     Brian Shore continued, "So, what we are doing differently as a result of
 this severe downturn is precious little.  We will continue with our long-term
 mission and we will not hesitate or falter, as we believe very deeply and
 strongly in our business and in the long-term future of the global electronics
 industry.  We will continue to pay very close attention to our customers every
 day ... as this is what we do, and this is who we are.  We will continue
 without hesitation our investment in our future.  We will complete all of our
 North American expansion programs on time.  As we recently announced, we are
 installing RF/microwave manufacturing capacity and capability at our
 newly-expanded Neltec, Inc. business unit located in Tempe, Arizona.  We are
 making significant investments in new technology at our Nelco, S.A. location
 in France.  We plan to proceed with a major expansion of our Asian
 manufacturing facilities and to install a facility in China this year as well.
 We have further increased our investment in R&D in recent months.  Of course,
 anyone can say they are committed to their business.  We go out and prove it
 every day!"
     Brian Shore concluded, "As a result of the severe global electronics
 industry downturn and our dramatically reduced revenues, we expect to report a
 loss in our fiscal year 2002 first quarter.  As I previously indicated, we
 have recently gained additional market share with some of the best electronic
 manufacturing companies in the world.  As I also previously said, I am
 convinced our Company is stronger now than ever.  We have no apologies to make
 for this serious industry downturn and the impact it is having on our Company,
 as we have no control or influence over the short-term whims of the global
 electronics industry.  We do not know how long this downturn will last and, in
 a sense, it does not matter to us all that much, because we are going forward
 with our mission every day in any case.  What we do know is that we believe
 very strongly in the long-term future of the global electronics industry, and
 we believe even more strongly in the quality of our people and our Company.
 We will not hesitate or falter.  We will proceed with our mission and we will
 not look back."
     The Company will host a conference call to discuss its financial results
 at 11:00 a.m. EDT today. Forwarding-looking and other material information may
 be discussed in this conference call. The conference call dial-in number is
 800-289-0569.
 
     Certain portions of this press release may be deemed to constitute
 forward-looking statements that are subject to various factors which could
 cause actual results to differ materially from Park's expectations.  Such
 factors include, but are not limited to, general conditions in the electronics
 industry, Park's competitive position, the status of Park's relationships with
 its customers, economic conditions in international markets, the cost and
 availability of utilities, and the various factors set forth under the caption
 "Factors That May Affect Future Results" after Item 7 of Park's Annual Report
 on Form 10-K for the fiscal year ended February 27, 2000.
 
     Park Electrochemical Corp. is a leading global designer and producer of
 electronic materials used to fabricate complex multilayer printed circuit
 boards and interconnection systems. Park specializes in advanced materials for
 high layer count circuit boards and high speed digital broadband
 telecommunications, internet and networking applications. Park's electronic
 materials business operates through fully integrated business units in Asia,
 Europe and North America.  The Company's major manufacturing facilities are
 located in Singapore, England, France, Germany, New York, Arizona and
 California.  Park's electronic materials business operates under the "Nelco"
 name.
     Additional corporate information is available on the World Wide Web at
 http://www.parkelectro.com and http://www.parknelco.com.
 
     The performance table (in thousands except per share amounts):
 
     For the 13 weeks ended                           2/25/01        2/27/00
       Net Sales                                     $129,528       $104,895
       Net Earnings                                   $14,108          $762*
       Shares Outstanding:
       Basic                                           16,047         15,848
       Diluted                                         20,249         16,085
       Earnings Per Share:
       Basic                                            $ .88          $.05*
       Diluted                                          $ .74          $.05*
 
     For the 52 weeks ended                           2/25/01        2/27/00
       Net Sales                                     $522,197       $425,261
       Net Earnings                                   $49,419       $18,297*
       Shares Outstanding:
       Basic                                           15,932         15,761
       Diluted                                         20,002         19,644
       Earnings Per Share:
       Basic                                            $3.10         $1.16*
       Diluted                                          $2.65         $1.12*
 
     *During the fourth quarter of the 2000 fiscal year, the Company recorded a
 pre-tax charge of $4,464,000 for the closure of its plumbing hardware
 business.
 
     The comparative balance sheets (in thousands):Proforma **
 
                                     2/25/01         2/25/01       2/27/00
     ASSETS
     Current Assets
       Cash & Temporary Investments $154,005        $155,743      $131,462
       Accounts Receivable, Net       71,105          71,105        68,335
       Inventories                    32,307          32,307        27,368
       Other Current Assets            9,456           9,456         9,614
         Total Current Assets        266,873         268,611       236,779
     Fixed Assets, Net               159,309         159,309       125,977
     Other Assets                        748           2,661         2,496
         Total                      $426,930        $430,581      $365,252
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current Liabilities
       Accounts Payable              $29,481         $29,481       $24,964
       Accrued Liabilities            39,052          39,052        28,973
       Income Taxes Payable           11,567          11,567         6,729
         Total Current Liabilities    80,100          80,100        60,666
 
     Long-Term Debt                       --          97,672       100,000
     Deferred Income Taxes            12,679          12,679        11,933
     Deferred Pension
       Liability & Other              11,224          11,224        13,535
         Total Liabilities           104,003         201,675       186,134
 
     Stockholders' Equity            322,927         228,906       179,118
         Total                      $426,930        $430,581      $365,252
     Equity Per Share                 $16.57          $14.23        $11.30
 
     ** The proforma balance sheet above adjusts the Company's balance sheet as
 of February 25, 2001 to reflect the changes in long-term debt that occurred
 the week subsequent to the year end.  In total, $98,262,000 of the 51/2%
 Convertible Subordinated Notes were converted into the Company's Common Stock
 on or before March 1, 2001.  The remaining $1,738,000 principal amount of
 Notes were redeemed for cash on March 2, 2001.  Effective March 2, 2001, the
 Company had no long-term debt.
 
     Detailed operating information (in thousands):
 
                                13 Weeks Ended             52 Weeks Ended
                                 (unaudited)
                            2/25/01       2/27/00      2/25/01       2/27/00
     Net Sales             $129,528      $104,895     $522,197      $425,261
     Cost of Sales           98,062        88,627      404,527       351,841
     %                        75.7%         84.5%        77.5%         82.7%
     Gross Profit            31,466        16,268      117,670        73,420
     %                        24.3%         15.5%        22.5%         17.3%
     Operating Expenses      12,364        11,110       49,897        45,508
     %                         9.5%         10.6%         9.5%         10.7%
     Closure of Plumbing
       Hardware Business         --         4,464           --         4,464
     %                           --          4.2%           --          1.1%
     Profit from Operations  19,102           694       67,773        23,448
     %                        14.8%          0.7%        13.0%          5.5%
     Other Income, Net        1,052           308        2,826           934
     %                         0.8%          0.3%         0.5%          0.2%
     Pre-Tax Earnings        20,154         1,002       70,599        24,382
     %                        15.6%          1.0%        13.5%          5.7%
     Income Tax Provision     6,046           240       21,180         6,085
       Effective Tax Rate     30.0%         24.0%        30.0%         25.0%
     Net Earnings          $ 14,108          $762     $ 49,419      $ 18,297
     %                        10.9%          0.7%         9.5%          4.3%
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X45502411
 
 

SOURCE Park Electrochemical Corp.
    LAKE SUCCESS, N.Y., April 30 /PRNewswire/ -- Park Electrochemical Corp.
 (NYSE:   PKE) reported sales of $129,528,000 for the fourth quarter ended
 February 25, 2001 compared to $104,895,000 for the fourth quarter of last
 year.  Park's sales for the fiscal year ended February 25, 2001 were
 $522,197,000 compared to last year's sales of $425,261,000.
     Park reported earnings of $14,108,000 for the fourth quarter compared to
 $762,000 for last year's fourth quarter.  Earnings for the fiscal year ended
 February 25, 2001 were $49,419,000 compared to $18,297,000 for last year.
 (The fourth quarter earnings for the 2000 fiscal year included a pre-tax
 charge of $4,464,000 for the closure of the Company's plumbing hardware
 business.)
     Park's earnings per share for the fourth quarter were $.88 basic and
 $.74 diluted versus $.05 per share basic and diluted for last year's fourth
 quarter, after adjustment for the three-for-two stock split effected on
 November 8, 2000.  Park's earnings per share for the fiscal year ended
 February 25, 2001 were $3.10 basic and $2.65 diluted compared to $1.16 per
 share basic and $1.12 per share diluted for last year, also adjusted for the
 three-for-two stock split.
     Brian Shore, Park's President and CEO, said, "Our 2001 fiscal year was,
 without a doubt, our best year ever.  I believe the performance of our Company
 and our people was, by almost any measurement, outstanding.  To me, the key
 theme of our 2001 fiscal year was how hard our people worked to keep our
 customers going in an extremely pressurized and demanding environment.  During
 the 2001 fiscal year, the global electronics industry which we serve was
 stronger than any of us could have ever anticipated.  This strength placed
 tremendous pressure on us to provide our customers with extraordinary
 quantities of the highest quality and highest technology product.  But,
 notwithstanding these huge unanticipated demands for our product, our people
 worked extremely hard to meet and exceed the market challenges in almost every
 respect.  Our people did not make excuses.  Our people simply did what they
 needed to do to get the job done ... and the job was done exceptionally well
 in my judgment.  The dedication and commitment of our people is truly
 extraordinary.  Our people met the challenge of last year with dignity and
 integrity, and I must tell you that I believe our Company is stronger now than
 it ever has been!"
     Brian Shore continued, "The current 2002 fiscal year is presenting new
 challenges of a very different kind.  As has become very clear to all of us,
 the global electronics industry had become extremely overheated toward the end
 of the 2000 calendar year, and now the industry is going through a severe
 correction and downturn.  As a matter of fact, this downturn is the worst
 downturn that most of us have ever seen in the global electronics industry.
 Even though our Company has recently gained additional market share with some
 of the best electronics manufacturing companies in the industry, our sales
 volumes and bookings during the first two months of the 2002 fiscal year are
 running at approximately one half of the sales and bookings levels during the
 2001 fiscal year.  Obviously, the global electronics industry is in a
 condition of deep distress at this time."
     Brian Shore continued, "As a result of this deep industry distress, many
 people in our Company have lost their jobs.  In addition, many of our people
 are working short workweeks and many have voluntarily agreed to freeze or
 reduce their compensation.  Our people have done this voluntarily because we
 believe in our business and we are passionately committed to our long-term
 mission.  Certainly, the reduced work hours and pay and frozen salaries are
 difficult for our people.  But, what hurts very deeply is the fact that some
 of our people have lost their jobs.  These are the same people who worked
 incredibly hard last year to satisfy the insatiable appetites of the global
 electronics industry.  Now, these people have lost their jobs because the
 global electronics industry got way ahead of itself last year and is suffering
 from a severe case of indigestion.  It is terribly unfair, and we are very
 pained by this.  Of course, we are only a small part of the global electronics
 supply chain, and there is absolutely nothing we can do about the excesses of
 the global electronics industry.  All we can do is work our hardest every day
 to serve our customers to the very best of our ability ... and that is what we
 did last year and that is what we are continuing to do this year."
     Brian Shore continued, "So, what we are doing differently as a result of
 this severe downturn is precious little.  We will continue with our long-term
 mission and we will not hesitate or falter, as we believe very deeply and
 strongly in our business and in the long-term future of the global electronics
 industry.  We will continue to pay very close attention to our customers every
 day ... as this is what we do, and this is who we are.  We will continue
 without hesitation our investment in our future.  We will complete all of our
 North American expansion programs on time.  As we recently announced, we are
 installing RF/microwave manufacturing capacity and capability at our
 newly-expanded Neltec, Inc. business unit located in Tempe, Arizona.  We are
 making significant investments in new technology at our Nelco, S.A. location
 in France.  We plan to proceed with a major expansion of our Asian
 manufacturing facilities and to install a facility in China this year as well.
 We have further increased our investment in R&D in recent months.  Of course,
 anyone can say they are committed to their business.  We go out and prove it
 every day!"
     Brian Shore concluded, "As a result of the severe global electronics
 industry downturn and our dramatically reduced revenues, we expect to report a
 loss in our fiscal year 2002 first quarter.  As I previously indicated, we
 have recently gained additional market share with some of the best electronic
 manufacturing companies in the world.  As I also previously said, I am
 convinced our Company is stronger now than ever.  We have no apologies to make
 for this serious industry downturn and the impact it is having on our Company,
 as we have no control or influence over the short-term whims of the global
 electronics industry.  We do not know how long this downturn will last and, in
 a sense, it does not matter to us all that much, because we are going forward
 with our mission every day in any case.  What we do know is that we believe
 very strongly in the long-term future of the global electronics industry, and
 we believe even more strongly in the quality of our people and our Company.
 We will not hesitate or falter.  We will proceed with our mission and we will
 not look back."
     The Company will host a conference call to discuss its financial results
 at 11:00 a.m. EDT today. Forwarding-looking and other material information may
 be discussed in this conference call. The conference call dial-in number is
 800-289-0569.
 
     Certain portions of this press release may be deemed to constitute
 forward-looking statements that are subject to various factors which could
 cause actual results to differ materially from Park's expectations.  Such
 factors include, but are not limited to, general conditions in the electronics
 industry, Park's competitive position, the status of Park's relationships with
 its customers, economic conditions in international markets, the cost and
 availability of utilities, and the various factors set forth under the caption
 "Factors That May Affect Future Results" after Item 7 of Park's Annual Report
 on Form 10-K for the fiscal year ended February 27, 2000.
 
     Park Electrochemical Corp. is a leading global designer and producer of
 electronic materials used to fabricate complex multilayer printed circuit
 boards and interconnection systems. Park specializes in advanced materials for
 high layer count circuit boards and high speed digital broadband
 telecommunications, internet and networking applications. Park's electronic
 materials business operates through fully integrated business units in Asia,
 Europe and North America.  The Company's major manufacturing facilities are
 located in Singapore, England, France, Germany, New York, Arizona and
 California.  Park's electronic materials business operates under the "Nelco"
 name.
     Additional corporate information is available on the World Wide Web at
 http://www.parkelectro.com and http://www.parknelco.com.
 
     The performance table (in thousands except per share amounts):
 
     For the 13 weeks ended                           2/25/01        2/27/00
       Net Sales                                     $129,528       $104,895
       Net Earnings                                   $14,108          $762*
       Shares Outstanding:
       Basic                                           16,047         15,848
       Diluted                                         20,249         16,085
       Earnings Per Share:
       Basic                                            $ .88          $.05*
       Diluted                                          $ .74          $.05*
 
     For the 52 weeks ended                           2/25/01        2/27/00
       Net Sales                                     $522,197       $425,261
       Net Earnings                                   $49,419       $18,297*
       Shares Outstanding:
       Basic                                           15,932         15,761
       Diluted                                         20,002         19,644
       Earnings Per Share:
       Basic                                            $3.10         $1.16*
       Diluted                                          $2.65         $1.12*
 
     *During the fourth quarter of the 2000 fiscal year, the Company recorded a
 pre-tax charge of $4,464,000 for the closure of its plumbing hardware
 business.
 
     The comparative balance sheets (in thousands):Proforma **
 
                                     2/25/01         2/25/01       2/27/00
     ASSETS
     Current Assets
       Cash & Temporary Investments $154,005        $155,743      $131,462
       Accounts Receivable, Net       71,105          71,105        68,335
       Inventories                    32,307          32,307        27,368
       Other Current Assets            9,456           9,456         9,614
         Total Current Assets        266,873         268,611       236,779
     Fixed Assets, Net               159,309         159,309       125,977
     Other Assets                        748           2,661         2,496
         Total                      $426,930        $430,581      $365,252
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current Liabilities
       Accounts Payable              $29,481         $29,481       $24,964
       Accrued Liabilities            39,052          39,052        28,973
       Income Taxes Payable           11,567          11,567         6,729
         Total Current Liabilities    80,100          80,100        60,666
 
     Long-Term Debt                       --          97,672       100,000
     Deferred Income Taxes            12,679          12,679        11,933
     Deferred Pension
       Liability & Other              11,224          11,224        13,535
         Total Liabilities           104,003         201,675       186,134
 
     Stockholders' Equity            322,927         228,906       179,118
         Total                      $426,930        $430,581      $365,252
     Equity Per Share                 $16.57          $14.23        $11.30
 
     ** The proforma balance sheet above adjusts the Company's balance sheet as
 of February 25, 2001 to reflect the changes in long-term debt that occurred
 the week subsequent to the year end.  In total, $98,262,000 of the 51/2%
 Convertible Subordinated Notes were converted into the Company's Common Stock
 on or before March 1, 2001.  The remaining $1,738,000 principal amount of
 Notes were redeemed for cash on March 2, 2001.  Effective March 2, 2001, the
 Company had no long-term debt.
 
     Detailed operating information (in thousands):
 
                                13 Weeks Ended             52 Weeks Ended
                                 (unaudited)
                            2/25/01       2/27/00      2/25/01       2/27/00
     Net Sales             $129,528      $104,895     $522,197      $425,261
     Cost of Sales           98,062        88,627      404,527       351,841
     %                        75.7%         84.5%        77.5%         82.7%
     Gross Profit            31,466        16,268      117,670        73,420
     %                        24.3%         15.5%        22.5%         17.3%
     Operating Expenses      12,364        11,110       49,897        45,508
     %                         9.5%         10.6%         9.5%         10.7%
     Closure of Plumbing
       Hardware Business         --         4,464           --         4,464
     %                           --          4.2%           --          1.1%
     Profit from Operations  19,102           694       67,773        23,448
     %                        14.8%          0.7%        13.0%          5.5%
     Other Income, Net        1,052           308        2,826           934
     %                         0.8%          0.3%         0.5%          0.2%
     Pre-Tax Earnings        20,154         1,002       70,599        24,382
     %                        15.6%          1.0%        13.5%          5.7%
     Income Tax Provision     6,046           240       21,180         6,085
       Effective Tax Rate     30.0%         24.0%        30.0%         25.0%
     Net Earnings          $ 14,108          $762     $ 49,419      $ 18,297
     %                        10.9%          0.7%         9.5%          4.3%
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X45502411
 
 SOURCE  Park Electrochemical Corp.