Contact: Martina Bar Kochva
48 South Service Road
Melville, NY 11747
PARK ELECTROCHEMICAL CORP. DECLARES CASH DIVIDEND
Melville, New York, Tuesday, December 17, 2013…..The Board of Directors of Park
Electrochemical Corp. (NYSE – PKE) declared a regular quarterly dividend of $0.10 per
share payable February 3, 2014 to stockholders of record at the close of business on
January 3, 2014.
The Company expects that all of this dividend and a portion or all of the dividends previously paid by the Company in May, August and November 2013 will not be treated as a taxable dividend for Federal income tax purposes. As previously reported by the Company, the Company also expects that all of the regular quarterly dividend and all of the special dividend paid by the Company in February 2013 will not be treated as a taxable dividend for Federal income tax purposes. The Company cannot finalize this treatment until it files its Federal income tax return for its current fiscal year ending March 2, 2014.
Park’s cash dividends are treated as taxable dividends to the extent of the Company’s current or accumulated earnings and profits (computed using U.S. Federal income tax principles), with any amount in excess of such current or accumulated earnings and profits treated as a non-taxable return of capital to the extent of the shareholder’s adjusted tax basis in the holder’s shares and with any amount in excess of such current or accumulated earnings and profits and the holder’s adjusted tax basis treated as a capital gain. Distributions treated as returns of capital generally reduce the basis in the shares on which the distributions were made, unless the basis is lower than the amount of the distributions in which case the amount by which the distributions exceed the basis is capital gains. Because the Company’s current earnings and profits must take into account the Company’s results of operations for the entire fiscal year in which the cash dividends were paid, the Company will not be able to determine with certainty the portion of the cash dividends that will be treated as a taxable dividend until after the close of the Company’s fiscal year on March 2, 2014. While the tax treatment of the cash dividends is complex and cannot be concluded with any degree of certainty at this time, the Company currently estimates that a portion or all of the cash dividends paid in the 2013 calendar year will exceed the Company’s current or accumulated earnings and profits for U.S. Federal income tax purposes and, therefore, will not be treated as a taxable dividend.
The specific characteristics of the dividend distributions paid by the Company during the current calendar year will be reported to shareholders on Form 1099 after the end of the year. Shareholders are encouraged to consult their tax advisors to determine the specific effect the distributions may have on their individual tax situations.
Certain portions of this news release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectation. Such factors include, but are not limited to, general conditions in the electronics and aerospace industries, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various other factors set forth in Item 1A “Risk Factors” and under the caption “Factors That May Affect Future Results” after Item 7 of Park's Annual Report on Form 10-K for the fiscal year ended March 3, 2013.
Park Electrochemical Corp. is a global advanced materials company which develops and
manufactures high-technology digital and RF/microwave printed circuit materials
principally for the telecommunications and internet infrastructure and high-end computing
markets and advanced composite materials, parts and assemblies for the aerospace markets.
Park’s core capabilities are in the areas of polymer chemistry formulation and coating
technology. The Company’s manufacturing facilities are located in Singapore, France,
Kansas, Arizona and California. The Company also maintains R & D facilities in Arizona,
Kansas and Singapore.
Additional corporate information is available on the Company’s web site at www.parkelectro.com.