Park Aerospace Corp.

Good morning, my name is Cherie and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace Corp. 3rd 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 1 on your telephone keypad. If you would like to withdraw your question, please 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. Good morning, everybody. This is Brian. I'm with Matt Farabaugh, of course, our CFO, as usual. And welcome to our third quarter conference call. Also, happy New Year to all. So I wanted to tell you, mention to you that we have a presentation that's been posted on our website and it's also on a live webcast. It really would be good for you to get that up on your screen or your iPhone because we're going to be going through that. It'll make the call a lot more meaningful for you if you don't have it up already. And there are instructions in paragraph two of the earnings release as to how to access the presentation if you haven't done that already. I also want to mention that there's some supplemental financial information which is attached to the presentation as Appendix 1, so you may want to check that out at some point. And a couple of other just introductory comments before we get started with the presentation. So, Matt and I don't cover the same things each call. We try to cover things that we think are meaningful and interesting and relevant. But let us know what you think. Let us know if there are other things you'd like us to cover during these calls. So these calls are for you. We're not here to promote or hype our company. These calls are for you and not for us. So just let us know what you think. If there's anything else you'd like us to cover, any other focus you'd like us to consider, let us know. This is your time, not our time. So we'll go ahead now and go through the presentation. Matt and I will do that for you. And then at the end of the presentation, probably take over a half hour, I just want to warn you, so brace yourself. Then we'll be happy to take questions, all right? So why don't we just skip over to page two of the presentation. That's a forward-looking disclaimer language, so just let us know if you have any questions about that later on. And Matt will take over for a few minutes to cover slides three and four.

So go ahead, Matt, under both your court. Okay. Thanks, Brian. On January 8th, the Board of Directors declared a special dividend of $1 per share. Payable to our shareholders, payable on February 20th, 2020, or shareholders of record on January 21. The total amount of the special dividend is approximately $20.5 million, including this special dividend and the regular quarterly dividend of 10 cents per share payable on February 4th to shareholders of record on January 2nd. Park will have paid approximately $536 million or $26.15 per share of cash dividends since the beginning of our fiscal year 05. Park's regular cash dividend has been paid, regular quarterly cash dividend has been paid every year since 1985, never skipped or reduced that regular dividend. Moving on to slide four. I just want to walk through with you how we kind of think of our cash balance. Although our balance sheet shows $144.2 million at the end of our third quarter, some of that cash is really committed for future use. When we had the tax law change back in December of 2017, There is a transition tax that's got to be paid over a period of eight years. We're a couple years into that. So the remaining installment payments on that transition tax is $17.7 million that's got to be paid over the next six years. The Newton expansion that we've talked about in the past has begun. So the remaining payments here For that expansion, although it's not legally committed, unless barring any sort of major event, this is how much that we will have to pay out. It's our best estimate of how much we'll have to pay out to complete that expansion. And of course, there's this $20.5 million that we just talked about for the special dividend payment. So the way we look at the cash, although it's $144 million on the balance sheet, it's really roughly $91 million that we see that's remaining and available for any purposes that we see going forward. I think I've covered what I needed to cover on here. Thank you, Matt. Very good.