Park Aerospace Corp.

Good morning. My name is Shannon, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace Corp. second 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 remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press pound. Thank you. 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. Welcome, everybody, to our second quarter call. This is Brian with me as usual at Faribault, our CFO. So we have a presentation we prepared for you and for this call. It's been posted on our website, and also there's a link that's referred to in the earnings news release. So you probably want to get a copy of that in front of you because Matt and I will be going through the presentation. There's also some supplemental financial information that's attached to the presentation. I think there's Appendix 1. We're not going to read through it, but it's something you might want to take a look at at some point. Obviously, you know the news release is out, the earnings release is out as of earlier this morning. So there is a lot to cover, and I'm going to try to cover some more complex topics to give you some perspective on the quarter. So please just try to bear with us. But why don't we get started. So on slide two, we have our forward-looking disclaimer. We're not going to read through that, of course, but if you have any questions about it, please give us a call. Thanks on that. Slide three, Matt, why don't you pick up on slide three, talking about the expansion spending and also top five customers.

Sure. Thanks, Brian. Just as a reminder, we had announced that we were doing a major expansion at our Newton, Kansas facility. and we made that announcement back in December and this slide is really just to give you a quick update on where we're at on the spending on that expansion. So our estimated budget for the expansion was $20,500,000. So far through the end of Q2 we've spent $3,900,000 so a little short of $4 million on that and the remaining to be spent for That expansion is about $16,600,000. That expansion is expected to be, well, the construction and the installation of all the equipment is expected to be completed by next summer, so that's the summer of 2020. Let's see, the top five customers for the quarter are AAE Aerospace, AAR Corp., Kratos Defense and Security Solutions, and Megit PLC. and, of course, MRAS, including its subcontractors. And just a reminder that MRAS is now a subsidiary of ST Engineering Aerospace.