Park Electrochemical Corp. Reports Second Quarter Results

MELVILLE, N.Y.--Park Electrochemical Corp. (NYSE-PKE) reported sales of $42,518,000 for its 2010 fiscal year second quarter ended August 30, 2009 compared to sales of $55,599,000 for last fiscal year’s second quarter ended August 31, 2008. Park’s sales for the first six months were $79,215,000 compared to sales of $115,399,000 for last year’s first six months.

Park reported net earnings of $4,755,000 for the second quarter ended August 30, 2009 compared to net earnings of $4,937,000 for last year’s second quarter.

For the six months ended August 30, 2009, Park reported net earnings of $7,829,000 compared to net earnings of $12,494,000 for last year’s first six-month period.

Park's basic and diluted earnings per share were $0.23 and $0.38 for the second quarter and first six-month period ended August 30, 2009 compared to basic and diluted earnings per share of $0.24 and $0.61 for last year’s second quarter and six-month period.

The gross profit as a percentage of sales was 25.7% and 25.4% for the second quarter and first six-month period ended August 30, 2009 compared to 19.7% and 22.1% for last year’s second quarter and six-month period. Interest income was $205,000 and $893,000 for the second quarter and first six-month period ended August 30, 2009 compared to $1,692,000 and $3,364,000 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 (877) 685-2329 in the United States and Canada and (706) 634-2174 in other countries and the required passcode is 31843659.

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 Wednesday, September 30, 2009. The conference call replay can be accessed by dialing (800) 642-1687 in the United States and Canada and (706) 645-9291 in other countries and entering passcode 31843659 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, parts and assemblies principally for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. Park also specializes in the manufacture of complex composite aircraft and space vehicle parts. The Company’s manufacturing facilities are located in Singapore, China, France, Connecticut, Kansas, 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
				8/30/09		8/31/08				8/30/09		8/31/08
Sales				$42,518		$55,599				$79,215		$115,399
Net Earnings				$4,755		$4,937				$7,829		$12,494
Basic and Diluted Earnings Per Share:				$0.23		$0.24				$0.38		$0.61
Weighted Average Shares Outstanding:
Basic				20,534		20,458				20,503		20,412
Diluted				20,554		20,520				20,518		20,475

The comparative balance sheets (in thousands):
										8/30/09 (unaudited)				3/01/09
						Assets
						Current Assets
						Cash and Marketable Securities				$	233,682			$	225,294
						Accounts Receivable, Net					23,136				22,433
						Inventories					11,008				10,677
						Other Current Assets					2,698				5,527
						Total Current Assets					270,524				263,931
						Fixed Assets, Net					46,646				48,777
						Other Assets					15,863				14,871
						Total Assets				$	333,033			$	327,579
						Liabilities and Stockholders' Equity
						Current Liabilities
						Accounts Payable				$	10,231			$	8,480
						Accrued Liabilities					9,122				11,425
						Dividends Payable					2,054				-
						Income Taxes Payable					4,285				4,381
						Total Current Liabilities					25,692				24,286
						Deferred Income Taxes					3,926				3,927
						Restructuring Accruals and Other Liabilities					3,199			__3,657
						Total Liabilities					32,817				31,870
						Stockholders’ Equity					300,216				295,709
						Total Liabilities and Stockholders' Equity				$	333,033			$	327,579
						Equity Per Share				$	14.62			$	14.45

Detailed operating information (in thousands – unaudited):
							13 Weeks Ended							26 Weeks Ended
							8/30/09			8/31/08				8/30/09			8/31/08
			Net Sales				$42,518			$55,599				$79,215			$115,399
			Cost of Sales				31,570			44,646				59,059			89,873
			%				74.3%			80.3%				74.6%			77.9%
			Gross Profit				10,948			10,953				20,156			25,526
			%				25.7%			19.7%				25.4%			22.1%
			Selling, General and Administrative  Expenses				5,203			6,170				11,120			12,504
			%				12.2%			11.1%				14.0%			10.8%
			Earnings from Operations				5,745			4,783				9,036			13,022
			%				13.5%			8.6%				11.4%			11.3%
			Other Income				205			1,692				893			3,364
			%				0.5%			3.0%				1.1%			2.9%
			Earnings Before Income Taxes				5,950			6,475				9,929			16,386
			%				14.0%			11.6%				12.5%			14.2%
			Income Tax Provision				1,195			1,538				2,100			3,892
			Effective Tax Rate				20.1%			23.8%				21.2%			23.8%
			Net Earnings				4,755			4,937				7,829			12,494
			%				11.2%			8.9%				9.9%			10.8%