MELVILLE, N.Y.--(BUSINESS WIRE)--
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 corporation information is available on the Company's web
site at www.parkelectro.com.
Source: Park Electrochemical Corp.