Park Aerospace(PKE) - 2025 Q1 - Quarterly Report

Financial Performance - The Company's total net sales for the 13 weeks ended June 2, 2024, were $14.0 million, a decrease of 10.3$15.6 million for the same period in 2023, primarily due to production and shipping disruptions caused by storm damage [10]. - The Company reported net earnings of $993,000 for the 13 weeks ended June 2, 2024, compared to$1.854 million for the same period in 2023 [40]. - Total comprehensive earnings for the 13 weeks ended June 2, 2024, were $1.216 million, down from$2.570 million in the same period in 2023 [40]. - Net earnings for the 13 weeks ended June 2, 2024, were $993,000, a decrease from$1,854,000 for the same period in 2023, representing a decline of approximately 46.4% [42]. - Earnings from operations before income taxes decreased by 46.1% to $1.37 million compared to$2.54 million for the same period last year [100]. - Net earnings fell by 46.4% to $993,000, down from$1.85 million in the previous year [100]. - The Company incurred a storm damage charge of $1.05 million during the 13 weeks ended June 2, 2024 [100]. - Gross profit for the 13 weeks ended June 2, 2024, was$4,099,000, compared to $4,833,000 in the same period last year, reflecting a gross margin decrease [65]. - Gross profit margin decreased to 29.3$2.5 million, a significant decrease from $23.0 million in the same period in 2023 [12]. - The company reported a net cash used in operating activities of$423,000 for the 13 weeks ended June 2, 2024, compared to a net cash provided of $117,000 in the prior year [42]. - The company experienced a negative operating cash flow of$423,000 during the 13 weeks ended June 2, 2024, compared to a positive cash flow of $117,000 in the same period last year [164]. - The company reported a decrease in cash flows from financing activities, totaling$2,532,000 for the period, compared to $24,699,000 in the previous year [42]. Assets and Liabilities - Total assets as of June 2, 2024, were$129.428 million, down from $132.309 million as of March 3, 2024 [25]. - Total liabilities decreased to$17.741 million as of June 2, 2024, compared to $19.395 million as of March 3, 2024 [25]. - The Company’s cash and cash equivalents decreased to$4.081 million as of June 2, 2024, from $6.567 million as of March 3, 2024 [25]. - Accounts receivable decreased to$11.386 million as of June 2, 2024, from $12.381 million as of March 3, 2024 [25]. - The balance of accumulated deficit increased to$46,913,000 as of June 2, 2024, up from $42,694,000 as of February 26, 2023 [41]. - The company’s inventories increased to$8.312 million as of June 2, 2024, compared to $6.404 million as of March 3, 2024 [25]. - The Company’s current ratio improved to 12.3 to 1.0 at June 2, 2024, compared to 10.2 to 1.0 at March 3, 2024 [163]. Operational Disruptions - The Company expected an additional$1.8 million in sales that did not ship due to operational disruptions from the storm [10]. - The company incurred a non-cash storm damage charge of $887,000 during the period, impacting overall earnings [42]. - The Company recorded a storm damage charge of$1,052,000 due to damage from a storm on May 19, 2024 [87]. - The Company expects to recover all costs and damages incurred from the storm in excess of a $2.5 million deductible under its insurance policy [117]. - The Company expects to recover all costs and damages related to wind damage in excess of a$2.5 million deductible under its insurance policy [133]. - The Company anticipates that $1.8 million of sales delayed due to storm-related issues will be delivered in the second quarter ending September 1, 2024 [132]. - The company is subject to risks from severe weather events that may disrupt operations [183]. Shareholder Information - The company reported a total of 1,278,901 shares purchased under the share purchase authorization announced on May 23, 2022 [184]. - The company is authorized to purchase its shares from time to time on the open market or in privately negotiated transactions [174]. Compliance and Controls - The principal executive officer and principal financial officer have certified compliance with the Sarbanes-Oxley Act of 2002 [190]. - The company has implemented disclosure controls and procedures to manage market risk [170]. - There were no significant changes in internal control over financial reporting noted in the latest filings [171]. Other Information - The company has not disclosed any new strategies or market expansions in the recent reports [182]. - The company has not reported any new product developments or technological advancements in the latest filings [182]. - The future compensation expense to be recognized for options outstanding at June 2, 2024, is$578,000, expected to be recognized over a weighted average vesting period of 1.24 years [57]. - Selling, general and administrative expenses decreased by 22.9% to $2.02 million from$2.62 million in the prior year [100]. - Selling, general and administrative expenses were 14.4% of sales for the 13 weeks ended June 2, 2024, down from 16.8% in the prior year, mainly due to reduced activist shareholder defense costs [130]. - Interest and other income increased by 4.6% to $339,000 compared to$324,000 in the previous year [107]. - The effective tax rate for the 13 weeks ended June 2, 2024, was 27.5%, slightly higher than the 27.1% in the prior year [113]. - Potentially dilutive securities not included in the diluted earnings per share calculation were 0 for the 13 weeks ended June 2, 2024, compared to 157,000 for the same period in 2023 [83]. - The company has a long-term contract with a significant customer, which does not guarantee quantities but is based on an order forecast updated periodically [99].