SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended May 28, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________________ to ___________________
Commission file number 1-4415
PARK ELECTROCHEMICAL CORP.
----------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
New York 11-1734643
------------------------------- -------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
5 Dakota Drive, Lake Success, N.Y. 11042
------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (516) 354-4100
Not Applicable
-----------------------------------------------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Indicate by check mark whether the registrant:(1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 10,483,669 as of July 7, 2000.
<PAGE> 2
PARK ELECTROCHEMICAL CORP.
AND SUBSIDIARIES
TABLE OF CONTENTS
Page
Number
------
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
May 28, 2000 (Unaudited) and
February 27, 2000................................... 4
Consolidated Statements of Earnings
13 weeks ended May 28, 2000 and
May 30, 1999 (Unaudited)............................ 5
Condensed Consolidated Statements of Cash Flows
13 weeks ended May 28, 2000 and
May 30, 1999 (Unaudited)............................ 6
Notes to Condensed Consolidated Financial
Statements (Unaudited) ............................. 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations ......................................... 10
Factors That May Affect Future Results............... 13
Item 3. Quantitative and Qualitative Disclosures About
Market Risk......................................... 13
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings ................................... 14
Item 6. Exhibits and Reports on Form 8-K .................... 14
SIGNATURES ..................................................... 15
EXHIBIT INDEX.................................................... 16
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<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
The Company's Financial Statements begin on the next page.
-3-
<PAGE> 4
<TABLE>
PARK ELECTROCHEMICAL CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<CAPTION>
May 28, February 27,
2000 2000
------- ------------
<S> <C> <C>
ASSETS (Unaudited) *
Current assets:
Cash and cash equivalents $ 80,180 $ 53,153
Marketable securities 62,555 78,309
Accounts receivable, net 71,977 68,335
Inventories (Note 2) 29,462 27,368
Prepaid expenses and other current assets 8,155 9,614
-------- -------
Total current assets 252,329 236,779
Property, plant and equipment, net 130,512 125,977
Other assets 3,163 2,496
-------- --------
$386,004 $365,252
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 35,772 $ 24,964
Accrued liabilities 32,511 28,973
Income taxes payable 7,748 6,729
-------- --------
Total current liabilities 76,031 60,666
Long-term debt 100,000 100,000
Deferred income taxes 12,295 11,933
Deferred pension liability and other 12,975 13,535
Stockholders' equity:
Common stock 1,358 1,358
Additional paid-in capital 54,851 54,794
Retained earnings 165,776 157,308
Treasury stock, at cost (29,040) (29,051)
Accumulated other non-owner changes (Note 5) (8,242) (5,291)
--------- ---------
Total stockholders' equity 184,703 179,118
--------- ---------
$386,004 $365,252
========= =========
<FN>
*The balance sheet at February 27, 2000 has been derived from the audited
financial statements at that date.
</TABLE>
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<PAGE> 5
<TABLE>
PARK ELECTROCHEMICAL CORP.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited--in thousands, except per share amounts)
<CAPTION>
13 Weeks Ended
-------------------------
May 28, May 30,
2000 1999
------- -------
<S> <C> <C>
Net sales $120,159 $104,454
Cost of sales 96,464 85,424
--------- --------
Gross profit 23,695 19,030
Selling, general and administrative expenses 11,927 11,666
--------- --------
Profit from operations 11,768 7,364
--------- --------
Other income:
Interest and other income, net 1,809 1,630
Interest expense 1,402 1,397
--------- ---------
Total other income 407 233
--------- ---------
Earnings before income taxes 12,175 7,597
Income tax provision 3,346 1,899
--------- ---------
Net earnings $ 8,829 $ 5,698
========= =========
Earnings per share (Note 3):
Basic $ .84 $ .55
Diluted $ .75 $ .51
Weighted average number of common and
common equivalent shares outstanding:
Basic 10,573 10,430
Diluted 13,069 12,972
Dividends per share $ .08 $ .08
</TABLE>
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<PAGE> 6
<TABLE>
PARK ELECTROCHEMICAL CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited--in thousands)
<CAPTION>
13 weeks ended
----------------------
May 28, May 30,
2000 1999
------- -------
<S> <C> <C>
Net cash provided by operating activities $22,789 $ 1,177
-------- --------
Cash flows from investing activities:
Purchases of property, plant and
equipment, net (9,719) (3,803)
Purchases of marketable securities (8,902) (70,158)
Proceeds from sales of marketable
securities 24,674 78,035
-------- --------
Net cash provided by investing
activities 6,053 4,074
-------- --------
Cash flows from financing activities:
Dividends paid (361) (826)
Proceeds from exercise of stock options 68 262
-------- --------
Net cash used in financing activities (293) (564)
-------- --------
Increase in cash and cash equivalents
before exchange rate changes 28,549 4,687
Effect of exchange rate changes on cash
and cash equivalents (1,522) (873)
-------- --------
Increase in cash and cash equivalents 27,027 3,814
Cash and cash equivalents, beginning of
period 53,153 36,682
-------- --------
Cash and cash equivalents, end of period $80,180 $40,496
======== ========
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 2,750 $ 2,750
Income taxes 480 2,406
</TABLE>
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<PAGE> 7
PARK ELECTROCHEMICAL CORP.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated balance sheet as of May 28, 2000, the
consolidated statements of earnings for the 13 weeks ended May 28, 2000
and May 30, 1999, and the condensed consolidated statements of cash flows
for the 13 weeks then ended have been prepared by the Company, without
audit. In the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the financial
position at May 28, 2000, and the results of operations and cash flows for
all periods presented, have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these condensed consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the fiscal year ended
February 27, 2000.
<TABLE>
2. INVENTORIES
Inventories consist of the following:
<CAPTION> (In thousands)
May 28, February 27,
2000 2000
------- ------------
<S> <C> <C>
Raw materials $11,222 $10,870
Work-in-process 5,659 5,249
Finished goods 11,288 10,323
Manufacturing supplies 1,293 926
------- -------
$29,462 $27,368
======= =======
</TABLE>
<TABLE>
3. EARNINGS PER SHARE
The following table sets forth the calculation of basic and diluted
earnings per share for the periods specified (in thousands, except per
share amounts):
<CAPTION> 13 weeks ended
--------------
May 28, May 30,
2000 1999
------- --------
<S> <C> <C>
Net income for basic EPS $ 8,829 $ 5,698
Add interest on 5.5% convertible
subordinated notes, net of taxes 944 908
------- -------
Net income for diluted EPS $ 9,773 $ 6,606
======= =======
Weighted average common shares
outstanding for basic EPS 10,573 10,430
Net effect of dilutive options 126 172
Assumed conversion of 5.5% convertible
subordinated notes 2,370 2,370
------- -------
Weighted average shares outstanding
for diluted EPS 13,069 12,972
======= =======
EPS-basic $ 0.84 $ 0.55
EPS-diluted $ 0.75 $ 0.51
</TABLE>
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<PAGE> 8
4. BUSINESS SEGMENTS
Park Electrochemical Corp. ("Park"), through its subsidiaries
(collectively, the "Company"), is a leading global designer and
producer of advanced electronic materials used to fabricate complex
multilayer printed circuit boards, semiconductor packages and other
electronic interconnection systems. The Company's multilayer printed
circuit board materials include copper-clad laminates, prepregs and
semi-finished multilayer printed circuit board panels. Multilayer
printed circuit boards and interconnect systems are used in virtually
all advanced electronic equipment to direct, sequence and control
electronic signals between semiconductor devices and passive
components. The Company also designs and manufactures specialty
adhesive tapes, advanced composite materials and microwave circuitry
materials for the electronics, aerospace and industrial markets.
During the fourth quarter of the 2000 fiscal year, the Company
initiated a plan to discontinue its plumbing hardware business. At May
28, 2000, the balance of accruals relating to the closure of the
plumbing hardware business was $1,503,000.
Financial information concerning the Company's business segments
follows (in thousands):
<TABLE>
<CAPTION>
13 weeks ended
--------------------------
May 28, May 30,
2000 1999
------- -------
<S> <C> <C>
Revenues
Electronic materials $112,631 $ 95,637
Engineered materials and
plumbing hardware 7,528 8,817
--------- ---------
Net sales $120,159 $104,454
========= =========
Profit/(Loss)
Electronic materials $ 13,367 $ 8,530
Engineered materials and
plumbing hardware 216 697
General corporate expense (1,815) (1,863)
Interest and other income, net 1,809 1,630
Interest expense (1,402) (1,397)
--------- ---------
Earnings before income taxes $ 12,175 $ 7,597
========= =========
May 28, May 30,
2000 1999
------- -------
Assets
Electronic materials $276,611 $240,185
Engineered materials and
plumbing hardware 9,823 12,524
Corporate(1) 99,570 101,431
--------- ---------
Total assets $386,004 $354,140
========= =========
(1) Corporate assets consist primarily of cash, cash equivalents and
marketable securities.
</TABLE>
-8-
<PAGE> 9
5. COMPREHENSIVE INCOME
Statement of Financial Accounting Standards No. 130 - "Reporting
Comprehensive Income" (SFAS No. 130), establishes standards for
reporting changes in equity from non-owner sources in the financial
statements. Total non-owner changes in stockholders' equity for the 13
weeks ended May 28, 2000 and May 30, 1999 were $5,878,000 and
$4,650,000, respectively. Comprehensive income consists primarily of
net income and foreign currency translation adjustments.
6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133 (SFAS 133),
"Accounting for Derivative Instruments and Hedging Activities". SFAS
133 establishes standards for the recognition and measurement of
derivatives and hedging activities and requires all derivative
instruments to be recorded on the balance sheet at fair value. This
statement is effective for fiscal years beginning after June 15, 2000.
The company's policy is to enter into forward foreign currency
contracts only to hedge specific transactions in order to reduce
exposure to foreign exchange risks. The Company believes the adoption
of these standards will not have a material effect on the Company's
consolidated results of operation or financial position.
-9-
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Park is a leading global designer and producer of advanced
electronic materials used to fabricate complex multilayer printed circuit
boards, semiconductor packages and other electronic interconnect systems.
Park's electronic materials business operates under the "Nelco" name. The
Company's customers for its advanced printed circuit materials include
leading independent printed circuit board fabricators, contract
manufacturers and large electronic equipment manufacturers in the computer,
telecommunications, transportation, aerospace and instrumentation indus-
tries.
The Company's electronic materials operations accounted for
approximately 92% and 90%, respectively, of total net sales worldwide in the
last two fiscal years and approximately 94% and 92%, respectively, in the
three-month periods ended May 28, 2000 and May 30, 1999. The Company's
foreign electronic materials operations accounted for approximately 37% and
39%, respectively, of total net sales worldwide in the 2000 and 1999 fiscal
years and approximately 40% and 36%, respectively, in the three-month
periods ended May 28, 2000 and May 30, 1999.
Park is also engaged in the engineered materials business, which
consists of the Company's specialty adhesive tape and film business and
advanced composite materials business, both of which operate as independent
business units. In addition, Park operated a plumbing hardware business,
which it decided to close and liquidate in the 2000 fiscal year fourth
quarter. The Company's engineered materials and plumbing hardware businesses
accounted for approximately 8% and 10%, respectively, of the Company's total
net sales worldwide in the last two fiscal years and approximately 6% and
8%, respectively, in the three-month periods ended May 28, 2000 and May 30,
1999.
The Company's sales continued to grow in the three-month period
ended May 28, 2000, led by strong growth in sales by the Company's European
electronic materials operations and supported by growth in sales by the
Company's North American and Asian electronic materials operations. The
earnings growth that the Company achieved during its 2000 fiscal year
continued in the 2001 fiscal year first quarter. This continued growth was
primarily a result of strong performances by the Company's electronic
materials operations. The Company's ongoing efforts to expand its higher
technology, higher margin product lines have also been significant factors
in the growth of the Company's sales of electronic materials and in the
growth of its earnings.
Growth of the Company's electronic materials business was
constrained during the last fiscal year and the three-month period ended May
28, 2000 by the Company's available manufacturing capacity. The Company has
been expanding the manufacturing capacity of its electronic materials
facilities in recent years; and during the 2000 fiscal year, the Company
completed expansions of its electronic materials operations in Singapore and
France, acquired additional manufacturing capacity in California in the
second quarter, and commenced significant additional expansions of its
electronic materials operations in California and New York.
Three Months Ended May 28, 2000 Compared with Three Months Ended May 30,
1999:
The Company's electronic materials business was responsible for the
improvement in the Company's results of operations for the three-month
period ended May 28, 2000. The strengthening of the Company's printed
circuit materials businesses during the 2000 fiscal year continued in the
2001 fiscal year first quarter.
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<PAGE> 11
The Company's results of operations and margins improved in the
2001 fiscal year first quarter principally as a result of the electronic
materials business' maximizing the utilization of its manufacturing
resources, increasing its market share with certain key customers, and
increasing its sales of higher technology, higher margin products. However,
the Company's electronic materials business incurred pre-tax losses at its
Arizona based business unit which formerly supplied Delco Electronics
Corporation with semi-finished circuit boards, or mass lamination product,
which negatively affected the Company's margins during the first quarter.
Operating results of the Company's engineered materials
businesses improved during the three-month period ended May 28, 2000 due to
improved results achieved by the specialty adhesive tape and advanced
composite materials businesses. The operating loss of the plumbing hardware
business, which had been part of the Company's engineered materials and
plumbing hardware business segment but which the Company decided to close
and liquidate in the 2000 fiscal year fourth quarter, negatively affected
the Company's operating results for the three-month period ended May 28,
2000.
Results of Operations
Sales for the three-month period ended May 28, 2000 increased
15% to $120.2 million from $104.5 million for last fiscal year's comparable
period. Sales of the electronic materials business for the three-month
period ended May 28, 2000 were $112.6 million, or 94% of total sales
worldwide, compared with $95.6 million, or 92% of total sales worldwide, for
last fiscal year's comparable period. This 18% increase in sales of
electronic materials was principally the result of higher volume of
electronic materials shipped and an increase in sales of higher technology
products. Sales of the engineered materials businesses for the three-month
period ended May 28, 2000 were $7.5 million compared with $8.8 million for
last fiscal year's comparable period. This decrease in sales was the result
of significantly reduced sales of plumbing hardware products after the
Company decided in the 2000 fiscal year fourth quarter to close and
liquidate its plumbing hardware business.
The Company's foreign electronic materials operations accounted
for $47.7 million of sales, or 40% of the Company's total sales worldwide,
during the three-month period ended May 28, 2000 compared with $38.1 million
of sales, or 36% of total sales worldwide, during last fiscal year's
comparable period. Sales by the Company's foreign operations during the
2001 fiscal year first quarter increased 25% from the 2000 fiscal year
comparable period. The increase in sales by foreign operations was due
principally to an increase in sales by the Company's European operations.
The gross margin for the Company's worldwide operations was
19.7% during the three-month period ended May 28, 2000 compared with 18.2%
for last fiscal year's comparable period. The improvement in the gross
margin was attributable to the increase in sales volume over last fiscal
year's comparable period, the continuing growth in sales of higher
technology, higher margin products and increases in market share with
certain key electronic materials customers.
Selling, general and administrative expenses, measured as a
percentage of sales, were 9.9% during the three-month period ended May 28,
2000 compared with 11.1 % during last fiscal year's comparable period. This
decline resulted from proportionately higher sales compared to the
comparable period during the last fiscal year.
For the reasons set forth above, profit from operations for the
three-month period ended May 28, 2000 increased 59% to $11.8 million from
$7.4 million for last fiscal year's comparable period.
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<PAGE> 12
Interest and other income, principally investment income, was
$1.8 million for the three-month period ended May 28, 2000 compared with
$1.6 million for last fiscal year's comparable period. The increase in
investment income was attributable to an increase in cash available for
investment and an increase in prevailing interest rates. The Company's
investments were primarily short-term taxable instruments and government
securities. Interest expense for the three-month period ended May 28, 2000
was $1.4 million compared with the same amount during last fiscal year's
comparable period. The Company's interest expense is related primarily to
its $100 million principal amount of 5.5% Convertible Subordinated Notes due
2006 (the "Notes") issued in 1996.
The Company's effective income tax rate for the three-month
period ended May 28, 2000 was 27.5% compared with 25.0% for last fiscal
year's comparable period. This increase in the effective tax rate was
primarily the result of a change in the Company's income mix among the tax
jurisdictions in which the Company does business.
Net earnings for the three-month period ended May 28, 2000
increased 54% to $8.8 million from $5.7 million for last fiscal year's
comparable period. Basic and diluted earnings per share increased to $0.84
and $0.75, respectively, for the three-month period ended May 28, 2000 from
$0.55 and $0.51, respectively, for last fiscal year's comparable period.
These increases in net earnings and earnings per share were attributable to
the Company's improved operating results.
Liquidity and Capital Resources:
At May 28, 2000, the Company's cash and temporary investments
were $142.7 million compared with $131.5 million at February 27, 2000, the
end of the Company's 2000 fiscal year. The increase in the Company's cash
and investment position at May 28, 2000 was attributable to cash provided
from operating activities in excess of investments in property, plant and
equipment, as discussed below. The Company's working capital was $176.3
million at May 28, 2000 compared with $176.1 million at February 27, 2000.
The slight increase at May 28, 2000 compared with February 27, 2000 was due
principally to higher accounts receivable and inventories, offset almost
entirely by higher accounts payable and accrued liabilities. The Company's
current ratio (the ratio of current assets to current liabilities) was 3.3
to 1 at May 28, 2000 compared with 3.9 to 1 at February 27, 2000.
During the three-months ended May 28, 2000, cash provided by net
earnings, before depreciation and amortization, of $8.8 million was
increased by a net reduction in working capital items, resulting in $22.8
million of cash provided from operating activities, and the Company expended
$9.7 million for the purchase of property, plant and equipment. Net
expenditures for property, plant and equipment were $27.7 million in the
2000 fiscal year. In the 2000 fiscal year second quarter, the Company
announced large expansion programs relating to its electronic materials
operations in New York and California, which it expects to complete in the
2001 fiscal year fourth quarter, and the Company completed an expansion of
its electronic materials operations in Asia during the 2000 fiscal year.
At May 28, 2000, the Company's only long-term debt was the
Notes. The Company believes its financial resources will be sufficient, for
the foreseeable future, to provide for continued investment in property,
plant and equipment and for general corporate purposes. Such resources,
including the proceeds from the Notes, would also be available for
appropriate acquisitions and other expansions of the Company's business.
Environmental Matters:
In the three-month periods ended May 28, 2000 and May 30, 1999,
the Company charged less than $0.1 million against pretax income for
environmental remedial response and voluntary cleanup costs (including legal
fees). While annual expenditures have generally been constant from year to
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<PAGE> 13
year, and may increase over time, the Company expects it will be able to
fund such expenditures from cash flow from operations. The timing of
expenditures depends on a number of factors, including regulatory approval
of cleanup projects, remedial techniques to be utilized and agreements with
other parties. At May 28, 2000 and February 27, 2000, the recorded
liability in accrued liabilities for environmental matters was approximately
$4.4 million. Management does not expect that environmental matters will
have a material adverse effect on the liquidity, capital resources, business
or consolidated financial position of the Company.
Factors That May Affect Future Results.
Certain portions of this Report which do not relate to
historical financial information may be deemed to constitute forward-looking
statements that are subject to various factors which could cause actual
results to differ materially from Park's expectations or from results which
might be projected, forecast, estimated or budgeted by the Company in
forward-looking statements. Such factors include, but are not limited to,
general conditions in the electronics industry, the Company's competitive
position, the status of the Company's relationships with its customers,
economic conditions in international markets, and the various factors set
forth under the caption "Factors That May Affect Future Results" after Item
7 of Park's Annual Report on Form 10-K for the fiscal year ended February
27, 2000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The Company is exposed to market risks for changes in foreign
currency exchange rates and interest rates. The Company's primary foreign
currency exchange exposure relates to the translation of the financial
statements of foreign subsidiaries using currencies other than the U.S.
dollar as their functional currency. The Company does not believe that a
10% fluctuation in foreign exchange rates would have had a material impact
on its consolidated results of operations or financial position. The
exposure to market risks for changes in interest rates relates to the
Company's short-term investment portfolio. This investment portfolio is
managed by outside professional managers in accordance with guidelines
issued by the Company. These guidelines are designed to establish a high
quality fixed income portfolio of government and highly rated corporate debt
securities with a maximum weighted average maturity of less than one year.
The Company does not use derivative financial instruments in its investment
portfolio. Based on the average maturity of the investment portfolio at the
end of the 2000 fiscal year and at May 28, 2000, a 10% increase in short
term interest rates would not have had a material impact on the consolidated
results of operations or financial position of the Company.
-13-
<PAGE> 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
In May 1998, The Company and its Nelco subsidiary in Arizona filed
a complaint against Delco Electronics Corporation and the Delphi Automotive
Systems unit of General Motors Corp. in the United States District Court for
the District of Arizona. The complaint alleges, among other things, that
Delco breached its contract to purchase semi-finished multilayer printed
circuit boards from Nelco and that Delphi interfered with Nelco's contract
with Delco and seeks compensatory damages of not less than $70 million and
substantial punitive damages.
The Company announced in March 1998 that it had been informed by
Delco Electronics that Delco planned to close its printed circuit board
fabrication plant and exit the printed circuit board manufacturing business.
As a result, the Company's sales to Delco declined during the three-month
period ended May 31, 1998, were negligible during the three-month period
ended August 30, 1998, have not been nil since that time and are expected to
be nil in future periods. The Company had been Delco's principal supplier
of semi-finished multilayer printed circuit board materials for more than
ten years. These materials were used by Delco to produce finished
multilayer printed circuit boards.
During the Company's 1999 fiscal year first quarter and during its
1998 fiscal year and for several years prior thereto, more than 10% of the
Company's total sales were to Delco Electronics Corporation. Although the
Company's electronic materials segment was not dependent on this single
customer, the loss of this customer had a material adverse effect on the
business of the segment in the 1999 and 2000 fiscal years and may have a
material adverse effect on the business of this segment in the fiscal year
ending February 25, 2001 and in subsequent fiscal years. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in
Item 2 of this Report and "Factors That May Affect Future Results" after
Item 2 of this Report.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
Exhibit
Number
27.01 Financial Data Schedule
(b) No reports on Form 8-K have been filed during the fiscal quarter
ended May 28, 2000.
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<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Park Electrochemical Corp.
---------------------------
(Registrant)
Date: July 10, 2000 /s/Brian E. Shore
---------------------------
Brian E. Shore
President and
Chief Executive Officer
Date: July 10, 2000 /s/Murray O. Stamer
---------------------------
Murray O. Stamer
Treasurer and
Chief Accounting Officer
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<PAGE> 16
EXHIBIT INDEX
Exhibit No. Name Page
27.01 Financial Data Schedule (Filed
only by electronic transmission
with EDGAR filing with the
Securities and Exchange Commission).......... -
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