Tue, Jun 11, 8:18 PM (88 days ago)
Park Aerospace Corp. reported a 4% increase in net sales for the fiscal year ending March 3, 2024, driven primarily by higher sales in the military markets. Despite this increase, the company's gross profit margin decreased slightly to 29.5% from 30.5% the previous year due to higher costs in labor, employee benefits, depreciation, utilities, and property taxes. Selling, general, and administrative expenses rose by 25%, largely due to increased legal expenses, higher incentive payments, and costs related to an insurance claim settlement. Earnings from operations fell by 16% to $8.4 million, and net earnings dropped by 30% to $7.5 million, primarily due to a higher tax rate and increased costs. The effective tax rate for 2024 was 20.8%, up from 2.7% in 2023, due to a lower benefit from the reduction in uncertain tax positions. The company paid a special dividend of $1.00 per share, totaling $20.5 million, and repurchased $2.9 million in stock. Cash and marketable securities decreased to $77.2 million from $105.4 million the previous year. The company believes it has sufficient liquidity to fund its operations for the foreseeable future.