Park Aerospace Corp.

Good morning. My name is Catherine, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Park Electrochemical Corporation's first quarter fiscal year 2020 earnings release conference call and investor presentation. All lines have been placed on mute to prevent any background noise. After the speaker's remark, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the one on your telephone keypad. If you would like to withdraw your question, press the pound key. At this time, I will turn today's call over to Mr. Brian Shore, Chairman and Chief Executive Officer. Mr. Shore, you may begin your conference.

Thank you, operator. This is Brian. Welcome, everybody, to our first quarter conference call. With me, as usual, Matt Feuerbaum, our CFO. There's a presentation that hopefully you all have access because we're going to go through that presentation. After we're done with that, we'll be happy to entertain questions. and, oh, I want to point out that there are also supplemental data, financial data, which is attached to the presentation as Appendix 1. The presentation is smaller and shorter than our last quarter's presentation because it's only been two months since, less than two months, actually, since the last quarter presentation, so we didn't want to just kind of put redundant information in here, although there's a lot to cover, so we're going to try to hustle through it, even though it's only 10 pages. There's quite a few points for us to hit. So why don't we get started on slide two. That's our forward-looking disclaimer. And if you have any questions about that, just let us know. Why don't we just move right into slide three. And Matt, could you help us with slide three, please?

Sure, Brian. The slide three shows our reconciliation of EPS from GAAP to special items. And there is only one special item in the quarter, and it went through our tax revision line. had a one penny impact. So you can see our earnings before special items, 14 cents is a penny greater than our net earnings from continuing operations on a GAAP basis. The tax item here, the tax impact of canceled stock options relates to options for employees of the electronics business that we sold to AGC back in December. The employees had a few months to exercise any stock options that they had outstanding. And at the end of that period, anything that was left unexercised canceled. And that did in fact happen. Some of the options went unexercised and they did cancel. And as a result, PARC lost a tax deduction related to those unexercised items that it would have otherwise gotten had they been exercised. We also show on this slide the top five customers for the quarter, and those top five customers are AAE Aerospace, AAR Corp., GKN Aerospace, Middle River Aerostructure Systems, including its subcontractors, and Nordham Group. Those customers are in alphabetical order, and I do want to point out that Middle River Aerostructure Systems was recently sold by GE to ST Engineering Aerospace. So that used to be a GE-related company. Now it's ST Engineering Aerospace.