Park Aerospace Corp. (NYSE:PKE) Q2 2024 Earnings Call Transcript

But I just want to point out, again, are we being aggressive? I don’t know. I don’t see it. And the rest of the math, you could just follow through and follow along yourself, you can see how we get to $36.5 million of EBITDA for outlook. Let’s go – so Slide 36, I’m not going to go through these items, just trying to explain in detail the kind of things we already talked about and how we could do the math. If you have any questions let us know. Slide 37, let’s stop there for a second. Just remember, very importantly, this is an outlook. This is not a forecast. Why do we say that? Because the outlook does not take into account lots of other programs we’re working on. We’re not sole-source qualified yet, we’re working on it. Now some will hit and maybe some won’t, but some will.

And some of them are pretty big, significant revenues. The bullet items, the first one, boy, we’re talking big stuff here. The second one, okay, we announced, we have a new Film Adhesive product line. What do you think, we don’t want to sell any of it? The only Film Adhesive sales in any of the outlook is for the A320neo, nothing else. Nothing else in GE. What about other customers? You think we’re not approaching other customers? Of course, we are. And we have a lot of interest customers. So kind of like, yes, we are actually planning to sell that product to others. It helps a lot, by the way, they’d say, yes, we’re getting qualified in a big program in terms of credibility. The Asian JV, we talked about that before. Structures assembly, integration project.

That could be a big one, technology license could be big. Israeli Arrow 3 Missile Defense System could be big. So I just want to make a point again, none of that stuff is included in our outlook. And we’re not going to do that. We’re not going to quantify it for you because some will hit some won’t. But some of these are big ones. They’re like binary. It might be 0. It might be a lot more than 0. But it probably won’t be somewhere in between. Let’s go to Slide 38. Okay. These are updates – I guess by coincidence, almost, on the three programs that totaled $20 million in the outlook, the ADL program, the Kratos program and the Park [indiscernible], I think all, everything is positive. I guess the only thing to highlight is a Kratos replicated program.

That’s something that DOD has announced recently. This is, I think, a very positive new news for Kratos and to Valkyrie, very positive news. It seems like the government is really going forward with these unmanned systems. And the Valkyrie seems to fit right with – right in there, whenever these – any article I see about it, Valkyrie’s always mentioned, I mean, about the replicated program. About the PAC-3 missile, everybody wants it, and what’s holding it back, I guess, the supply chain. Let’s go on to slide – almost missed, 40. Okay. On Slide 40, kind of going long on time. We’re getting there. Hang in there for a second, please. So this is a slide we shared with you before, $74.2 million. So we’re paying down that transition taxes, toll and payment.

We paid $3.2 million in our Q1. $9.3 million, as far as I’m concerned, you should consider that to be money spent. I mean, that’s one, that’s old. It’s almost like debt. Like, we don’t have any debt, but it’s almost like debt. And that money – and that gets paid. There’s two more installments. The last one is in June 2025. That money will be gone on June 2025. So you got to consider that money gone. The $6 million for the Kratos project, and we’ll see about that. And there are a lot of other projects, some of which we kind of referenced in some of the outlook discussions that programs that would require investment. So we’ll see about it. But it looks like kind of conceptual number, $58 million, $59 million. That’s not a forecast, but it’s kind of how we look at things in terms of, okay, this is how much money we have.