Park Aerospace Corp. Reports Significant Growth in Net Sales and Profitability

Park Aerospace Corp. reported its financial results for the 13 and 39 weeks ended December 1, 2024, showing significant growth in net sales and profitability compared to the same periods in the previous fiscal year. The company achieved net sales of $14.4 million for the 13 weeks and $45.1 million for the 39 weeks, representing increases of 23.8% and 13.9%, respectively, from $11.6 million and $39.7 million in the prior year. The gross profit for the 13 weeks rose to $3.8 million, up from $3.2 million, while the gross profit for the 39 weeks increased to $12.7 million from $12.1 million. However, gross profit margins declined to 26.6% and 28.1% for the respective periods, down from 27.2% and 30.5% in the previous year, primarily due to a less favorable product mix and increased costs.

The company faced operational challenges due to storm damage at its manufacturing facility in Newton, Kansas, which occurred on May 19, 2024. Although the storm did not damage production lines, it resulted in a charge of $1.1 million for repairs and related costs. The company has since returned to full production and expects to complete repairs by the first quarter of fiscal year 2026. Despite these challenges, Park Aerospace's earnings before income taxes and net earnings for the 13 weeks increased by 31.4% and 31.1%, respectively, compared to the same period last year, driven by higher sales.

In terms of operational metrics, the company reported a decrease in accounts receivable by 22% and an increase in inventories by 65% compared to the previous fiscal period. The current ratio stood at 7.6 to 1.0 as of December 1, 2024, down from 10.2 to 1.0 in March 2024, indicating a decrease in working capital. The company also paid $7.6 million in cash dividends during the 39 weeks ended December 1, 2024, a significant reduction from $28.1 million in the same period last year, which included a special cash dividend of $20.5 million.

Looking ahead, Park Aerospace anticipates continued growth in sales, particularly in the commercial aerospace and military markets, despite ongoing inflationary pressures on raw materials and supply chain challenges. The company remains optimistic about its financial position, stating that its resources will be sufficient for ongoing investments and operational needs. The management has indicated that they are closely monitoring market conditions and customer demand, which may influence future results.