Park Aerospace Corp. reported its financial results for the 13 and 26 weeks ended September 1, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period.
For the 13 weeks, net sales increased by 33.9% to $16.7 million, up from $12.5 million in the same period last year. This growth was attributed to heightened demand in the commercial aerospace and military markets. However, the cost of sales also rose significantly by 42.3%, reaching $11.9 million, which impacted gross profit margins, which fell to 28.5% from 32.7% in the prior year. Gross profit for the quarter was $4.8 million, an increase from $4.1 million a year earlier. Earnings from operations improved by 17.6% to $2.6 million, while net earnings rose 18.3% to $2.1 million, resulting in basic and diluted earnings per share of $0.10, compared to $0.09 in the previous year.
For the 26-week period, net sales increased to $30.7 million from $28.0 million, while net earnings decreased to $3.1 million from $3.6 million. The decline in net earnings was primarily due to storm damage charges and increased costs, despite a slight increase in earnings from operations to $4.7 million from $4.4 million. Basic and diluted earnings per share for the 26 weeks were $0.15, down from $0.18 in the prior year.
The company recorded a storm damage charge of $1.1 million due to an incident on May 19, 2024, affecting its manufacturing facilities in Newton, Kansas. Although production lines returned to full operation within two weeks, the storm's impact contributed to increased costs and operational challenges.
In terms of financial position, cash and cash equivalents increased to $8.2 million as of September 1, 2024, from $6.6 million in March 2024. Total current assets decreased to $93.0 million from $98.8 million, while total assets also declined to $125.1 million from $132.3 million. The company’s total shareholders' equity was $110.3 million, down from $112.9 million.
The company continues to face inflationary pressures on raw materials and supply chain issues, which may affect future production and sales. Despite these challenges, Park Aerospace remains committed to investing in its operations and has sufficient financial resources for ongoing capital needs.
About PARK AEROSPACE CORP
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