Good afternoon. My name is Alicia, and I'll be your conference operator today. At this time, I would like to welcome everyone to Park Aerospace Corp. Third Quarter Fiscal Year '25 Earnings Release Conference Call and Investor Presentation. All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] At this time, I'd like to turn today's call over to Mr. Brian Shore, Chairman and Chief Executive Officer. Mr. Shore, you may begin your conference..

100, 100, 100. And what does that mean? It's hard, I think, for most people to appreciate what that really means, how significant it is because it's just not heard of from -- at least from what people tell me. So, let's not dwell on that too much, we're running out of time here. Let's go on to Slide 30. New emphasis.

This is an important thing, and we have to slow down on this one, too. Park new emphasis on military/defense markets. Why this new emphasis? Well, how many new commercial aircraft programs are in the works. You've got the 777X, working in that program.

Comac 929, we can't talk about it, but for reasons that we're pretty sure we'll never get in that program. We also don't know anything else, maybe Boeing will come up with another airplane, but that's still uncertain.

So -- but there are significant opportunities materializing -- which have materialized for us in the military/defense markets, particularly related to new major missile programs. What's our focus? Ablative materials and also materials for hypersonics. Currently engaged in several high-profile and essential missile programs, ablatives and hypersonics.

Some of these programs are quite large. Let's go on to Slide 31. Unfortunately, these programs are highly sensitive and confidential programs and which we're not able to provide specific information this time. I mean, we feel very sorry about that, but these are, like I said, quite sensitive programs. We'll provide more information when we're able to.

For now, let's just say there are several high-profile programs on which Park is engaged, including three missile and hypersonic programs on which Park's materials are undergoing serious evaluation. Each of these programs has the potential to generate $10 million or more of annual revenues for Park. So, this is not just casual stuff I wouldn't take.

Now remember also, Park is a true blue American company, and I'm saying that we're talking about military/defense. Let's go on to Slide 32. Recent questions from investors. An investor, well, what about that Fan Case Containment Wrap for the 9X engines? We used to talk about the redesign risk where the Fan Case could be designed out.

Why are we not talking about that anymore? We could be wrong, but we believe that ship has sailed and the program will proceed with the current Fan Case design, utilizing the containment wrap. We also had a question on the way about our strategy.

And I don't know what to do about that, because I want to go over it with you, but the problem is we're running really late, and it probably takes at least five minutes to do even a very snapshot presentation of our strategy. So, I'm not sure how to handle that. We'll try to figure it out later. Slide 33.

Our buyback, really not too much of an update here. We haven't bought any stock since the -- we did the Q3 investor call. So -- and why is that? Because after the -- sorry, Q2 investor call, this is the Q3 investor call, Q2 investor call, which was in October, the stock seemed to recover, seeming to get to better levels.

And we wanted to back off a little bit and let somebody else buy stock, not just us. I'm kind of only half joking about that. But one thing you should know is that during Q3, we did actually buy 180,000 approximately shares during Q3 at a total cost $2,363,000. And that pretty much would explain the change in cash from Q2 to Q3.

Obviously, there are a lot of other factors up and down, but that will explain that -- the change in cash on its own. So, no -- like I said, no additional shares have been purchased under the authorization since October 10, which I think is more or less when we announced Q2. And we'll see what happens.

Are we going to buy more? Really don't want to because we use our cash, but if the stock goes down to those stupid levels, and it's been testing those stupid levels in the last few days, we'll feel like -- we may feel the only choice. Slide 34, incredible cash dividend history. We can skip over this just to save time, let's do the last one.

When the regular cash dividend declared on December 9, last arrow item, is paid on February 4, 2025, and we'll pay it, then we'll have paid $601.1 million in cash dividends since fiscal 2005. So, it'll be over $600 million at that point. Like I always say, that's a hell a lot of money for small company like Park.

Going to Slide 35, our balance sheet and cash. So, we got no long-term debt, $70 million in cash at the end of Q3. And remember, we got to pay $5.1 million, one more payment of the transition tax installment payments in June. So, we do a little math here. How do we think about our cash.

We started with -- when we look at these three numbers, $5.1 million, that's for sure. Solution treater, probably very likely. Contribution to OEM partnership, probably very likely. And there are other things that we're probably going to spend on, other projects and opportunities, but these are higher than likely.

So, we take that $17.6 million, we take our numbers, $70 million, and we say, yes, we probably are looking at $52.4 million that we really have. And that's why I was saying, we really don't want to buy more stock because we want to keep that money for opportunities.

But if the stock goes down to stupid levels, we'll feel -- we may feel, I should say, may feel compelled to go in and buy some more stock. 36, we can go through this really quickly. This is -- these are the same slides that we've shared with you for the last few quarters.

Why are we doing it? Because if we don't, somebody is going to say, what happened here? Are you no longer on board with this Juggernaut to financial outlook? And we are. So, 36, you're familiar with Slide 36. 37, the only change on Slide 37 is this, as I said, the ARJ21, the Comac regional jet now called the C909.

And then, on Slide 38, I just want to highlight on Slide 38 and 39, there are some questions about the $15 million number, estimated non-GE programs incremental sales. We think that number is conservative, especially considering the opportunities that we're seeing on these missile and defense programs right now.

So -- and the only thing that we're highlighting on slide -- sorry, the footnotes on Slide 39, it's just that the $15 million number is conservative. So again, I apologize for taking so long to go through the presentation. Operator, we'd be happy to take questions at this time, if there are any..

Thank you. We'll now conduct a question-and-answer session. [Operator Instructions] Our first question comes from the line of Nick Ripostella with NR Management. Please proceed with your question..

Good afternoon, Brian, and I just want to say thanks again for the transparency on the issues in the quarter. It's appreciated. And as always, I'm very happy with the way you treat share repurchase, and the language about buying it when it gets stupid is right on the mark.

I think the shareholder base is sufficiently patient now and understand what the upside is. So, we may not get to those prices anytime soon. But just a quick question, and I may have asked you this before. There were slides in past conference calls where there was Park content on SpaceX product, and obviously, there's Blue Origin.

Is that something that Park can still have content in? I'm just interested in that. And the second question is, I may have asked this before as well, do you think, in any way, Comac product and what you supply could be affected by hostilities between U.S. and China, et cetera? Or are they pretty much, they need your stuff? And so, that's it.

Thank you so much..

Thank you, Nick. Happy New Year, by the way. Yeah, in the slide, it talks about the -- we love niche military programs. I think we do refer it to a SpaceX program. To me, I really love that company. The other one was Blue Origin. Was that the other one you were asking about? Sorry..

Yes..

Mark, do you want to chime in on Blue Origin? I think we have some involved, but maybe not that much..

Yeah. We've done some work with them, Brian. We do a little bit of a structure for them in our parts operation. It's really niche. It's a lot of volume. We've built some minor structure for them. And we did a project many years ago. We're looking at strut technology with composites, but they went ahead and went with a metal strut instead..

Metal, yeah..

Yeah. We did do design and build a couple of struts, but we were not down selected on the program. So, we have connection there, and we continue to talk with them and still looking for other opportunities..

Okay. Thanks. To me, I love SpaceX, I just love that company. They're very different than typical aerospace company. I would put Kratos in that category as well in a positive way, a different in a positive way. So, the more we can do with those people, in particular, the happier, I think at least I will be. Comac, it is an obvious question and a good one.

We'll have to see what happens. I would be quite shocked if anything can happen quickly, because the 919 is a real prestige program for the Chinese. And I'm not an expert of their culture, but that's really important to them. The prestige known to make sure that they're respected and [indiscernible].

And for them to change gears with materials for the 919 program would be so risky and it could put the program back years. So, we'll have to see what happens. I don't know, but I'd be skeptical about anything that happens soon. So Chinese, as you know, they talk about developing their own engine.

And I'm not so sure that's really an issue with trade tensions. That might be more of an issue with CFM. In my opinion, CFM better make sure they get enough engines to the Chinese because if they don't, they're just going to give the Chinese more motivation to develop an engine more quickly. So, I'm just -- that's just my opinion.

I could be wrong, but that's my perspective. We're always nervous and concerned, but I wouldn't say that would be -- at least for me our -- my top 10 concerns that we lose the Comac business because of trade tensions between the U.S. and China. We'll have to see how that works.

A lot of it could go different ways than people are thinking also, we'll have to see how that works. But I don't know what else to say about it, except like, I guess, maybe for perspective, not one of my top 10 concerns right now when you weigh.

Any other question, Nick, or is that going to help you out a little bit?.

No. Okay, thank you so much..

Okay. Thank you, Nick..

All right. I'm seeing no other questions. I'd like to turn the floor back over to Brian for any closing remarks..

Thank you very much, operator. And thank you all for listening and having the patience to hang in there for a whole hour. And I'd like to take this opportunity from everybody at Park, all of our Park people to wish you the very best in 2025, a very happy New Year to you and your families. Thank you and goodbye..

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation..