Park Aerospace Corp (NYSE:PKE) stock fell 3.94% (As on October 7, 11:45:43 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 23 has reported the net sales of $13,875,000 for the 2023 fiscal year second quarter ended August 28, 2022 compared to $13,618,000 for the 2022 fiscal year second quarter ended August 29, 2021 and $12,783,000 for the 2023 fiscal year first quarter ended May 29, 2022. Net earnings for the 2023 fiscal year second quarter were $1,885,000 compared to $2,022,000 for the 2022 fiscal year second quarter and $1,910,000 for the 2023 fiscal year first quarter. Adjusted EBITDA for the 2023 fiscal year second quarter was $2,709,000 compared to $3,232,000 for the 2022 fiscal year second quarter and $2,804,000 for the 2023 fiscal year first quarter. The Company had no pretax restructuring charges in the 2023 fiscal year second quarter compared to $170,000 in the 2022 fiscal year second quarter, primarily for the costs in connection with exiting the Park Aerospace Technologies Asia Pte. Ltd idle facility in Singapore.

Meanwhile, Park received customer OEM indications regarding significant increases in ablative materials and RAYCARB C2B product requirements to support the PAC-3 and other missile defense systems. Based on recent inputs from the key customers, the company believes a $6 million of the RAYCARB product which is planned, for Q4 that in part maybe pushed into next fiscal year.  If all those C2B Q4 sales were pushed into the final fiscal year, the fiscal ’23 sales of ablatives and C2B product would probably be at $6 million.

Additionally, the company has  declared a regular quarterly dividend of $0.10 per share payable November 4, 2022 to shareholders of record at the close of business on October 3, 2022.

In addition, the company has announced its commitment to fully support Airbus’s stated A320neo Aircraft Family production rates of 65 Aircraft per month by the middle of CY2023 and 75 Aircraft per month in CY2025.  The A320neo Aircraft Family includes the A319neo, the A320neo, the A321neo, the A321LR and the A321XLR Aircraft.  (Airbus had recently conducted the first test flight of the A321XLR, and Airbus expects the A321XLR to enter into service in early 2024.  All other members of the A320neo Aircraft Family are already in production and service.) Park is the sole source supplier of composite materials and lightning strike protection materials used to produce the engine transcowl and acoustic structures and other actuated and static thrust reverser components used on all A320neo Family Aircraft equipped with CFM LEAP-1A engines.