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

This is kind of how much money is committed. And obviously, we hope to be generating cash as well. So that’s why I say it’s not a forecast. But for us, it’s conceptually important. 41. Our balance sheet cash dividend history and buyback. Every quarter, we cover this. We got 0 long-term debt dividend history. For others, cut or cancel the dividend, Park maintained its regular quarterly cash dividends throughout the pandemic, an economic crisis. Park has paid 38 consecutive years of uninterrupted regular quarterly cash dividends without ever skipping a dividend, reducing dividend amount. And a big one in blue, Park has paid $586 million, $586 million or $28.60 per share in cash dividends since the beginning of fiscal 2005. And as I always say, that’s a hell lot of money for a little company like Park.

And as announced on May 23, 2022, our Board authorized Park’s purchase of up to 1.5 million shares in company’s stock, end of May 12, 2023, Park implemented Rule 10b5-1 program, which expired, by its terms on July 7, 2023. Under that plan, we purchased 221,099 shares of our common stock at an average price of $13.02, total cost of $2.879 million. On August 11, 2023, we implemented another 10b5-1 program, which expires, by its terms, today. Under that plan, no Park stock has been purchased. And we’re just about wrapping up here. The Park family – sorry, slide, was it 43? Yes. The secret continues, the secret to our success continues. Okay. We’ve given you an update on our Customer Flex Program. We haven’t done that the last couple of quarters just because we’re trying – for brevity, but total participation is 62%.

Don’t read something negative in that. We have quite a few new people, and it takes a little while for them be qualified, to be in the Customer Flex program. So still a very important program, very, very important for our success now and in the future. Park family, the Park family current people count, 119, that number a little higher than you’re used to? Our short-term plan is to add another 15 employees and increase our Park people count to 134 million Park people. So what’s going on here? But before we get to that, just be advised that doing this cost about $1 million per year, extra cost? Or if you want to use 110 people as a baseline, which is kind of where we have been for last couple of quarters, that’s $1.5 million of extra cost to our P&L.

We’re talking about – and here’s something interesting, this can happen relatively quickly, particularly for the production workers. Now why is that? Well, to my shock, we started using social media for recruiting people, Glory, Courtney, Nancy, they come up with really great ideas. I said, okay, whatever. But what do I know? I mean, I’m just not very good in this stuff. It’s really helped a lot, it’s made a big difference. And I think the other thing that’s more important is that the Park family culture has taken hold. Courtney says it’s a great place to work. And we really believe that. Not an easy place to work, great place to work. And I was a little frustrated because I felt, boy, we’re doing all the right things. We don’t lay people off.

We love our people. Our people are family to us, we treat people family. Why is it harder [indiscernible] people. I think we just had to stick with it a little while longer. And now it’s taken hold. The word, I think, is out. And we got a line out the door of people – can come work for us right now. So that’s good news. But watch our cost because we could get up to 134 number pretty quickly, especially for production workers, half about – half of the 15 is going to be production type workers. So, okay, that’s good news. Let’s go on to Slide 44. I guess it’s good news. I mean when you look at it, Slide 44. As previously stated, we need to get ready for the Juggernaut or we too will be overrun. So our great Park people are committed to making money for owners every quarter.