News

Park Electrochemical Corp. Reports Second Quarter Results

MELVILLE, N.Y.-(Business Wire)-September 26, 2008 - Park Electrochemical Corp. (NYSE-PKE) reported sales of $55,599,000 for its 2009 fiscal year second quarter ended August 31, 2008 compared to sales of $60,541,000 for last fiscal year’s second quarter ended August 26, 2007. Park’s sales for the first six months were $115,399,000 compared to sales of $117,618,000 for last year’s first six months.

Park reported net earnings of $4,937,000 for the second quarter ended August 31, 2008 compared to net earnings of $9,160,000 for the second quarter of last year.

For the six-month period ended August 31, 2008, Park reported net earnings of $12,494,000 compared to net earnings of $16,571,000 for last year’s first six-month period.

Park reported basic and diluted earnings per share of $0.24 and $0.61, respectively, for the second quarter and six-month period ended August 31, 2008 compared to basic and diluted earnings per share of $0.45 and $0.82 for last year’s second quarter and six-month period.

The Company will conduct a conference call to discuss its financial results at 11:00 a.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (866) 393-8397 and the required passcode is 65680649.

For those unable to listen to the call live, a conference call replay will be available from approximately 2:00 p.m. EDT today through 11:59 p.m. EDT on Tuesday, September 30, 2008. The conference call replay can be accessed by dialing (800) 642-1687 and entering passcode 65680649 or on the Company's web site at www.parkelectro.com/investor/investor.html.

Any additional material financial or statistical data disclosed in the conference call will also be available at the time of the conference call on the Company’s web site at www.parkelectro.com/investor/investor.html.

Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, structures and components principally for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation, coating technology and advanced composite structures and component design and fabrication. The Company’s manufacturing facilities are located in Singapore, China, France, Connecticut, New York, Kansas (under construction), Arizona, California and Washington.

Additional corporate information is available on the Company’s web site at www.parkelectro.com.


The performance table (in thousands, except per share amounts–unaudited):

	13 weeks Ended				26 weeks Ended
		8/31/08		8/26/07		8/31/08		8/26/07

Sales	$	55,599	$	60,541	$	115,399	$	117,618

Net Earnings	$	4,937	$	9,160	$	12,494	$	16,571

Basic and Diluted Earnings Per Share:	$	0.24	$	0.45	$	0.61	$	0.82
Weighted Average Shares Outstanding:
Basic		20,458		20,325		20,412		20,265
Diluted		20,520		20,405		20,475		20,320


The comparative balance sheets (in thousands):

	8/31/08 (unaudited)		3/2/08
Assets
Current Assets
Cash and Marketable Securities	$	215,761	$	213,978
Accounts Receivable, Net		34,403		37,466
Inventories		15,455		14,049
Other Current Assets		5,960		5,546

Total Current Assets		271,579		271,039

Fixed Assets, Net		50,611		47,188
Other Assets		12,856		9,180

Total Assets	$	335,046	$	327,407

Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$	13,489	$	12,828
Accrued Liabilities		12,139		13,314
Income Taxes Payable		3,546		5,837

Total Current Liabilities		29,174		31,979

Deferred Income Taxes		4,851		4,851
Restructuring Accruals and Other Liabilities		4,036		4,224
Liabilities from Discontinued Operations		17,181		17,181


Total Liabilities		55,242		58,235

Stockholders’ Equity		279,804		269,172

Total Liabilities and Stockholders' Equity	$	335,046	$	327,407

Equity Per Share	$	13.67	$	13.23


Detailed operating information (in thousands - unaudited):

	13 Weeks Ended				26 Weeks Ended

		8/31/08		8/26/07		8/31/08	8/26/07

Net Sales	$	55,599	$	60,541	$	115,399	$	117,618

Cost of Sales		44,646		44,106		89,873		87,074
%		80.3%		72.9%		77.9%		74.0%

Gross Profit		10,953		16,435		25,526		30,544
%		19.7%		27.1%		22.1%		26.0%
Selling, General and Administrative
Expenses		6,170		6,651		12,504		13,223
%		11.1%		10.9%		10.8%		11.3%

Earnings from Operations		4,783		9,784		13,022		17,321
%		8.6%		16.2%		11.3%		14.7%

Other Income		1,692		2,463		3,364		4,774
%		3.0%		4.0%		2.9%		4.1%

Earnings Before Income Taxes		6,475		12,247		16,386		22,095
%		11.6%		20.2%		14.2%		18.8%

Income Tax Provision		1,538		3,087		3,892		5,524
Effective Tax Rate		23.8%		25.2%		23.8%		25.0%

Net Earnings		4,937		9,160		12,494		16,571
%		8.9%		15.1%		10.8%		14.1%