Participants

Brian Shore; Chairman of the Board, Chief Executive Officer; Park Aerospace Corp

Nick Ruo; Analyst; NR Management

Presentation

Operator

Good afternoon. My name is Matt and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Park Aerospace Corp Second Quarter, fiscal year 2025 earnings release conference call and investor presentation.
All lines have been placed on mute to prevent any background noise. After the speaker who marks there will be a question and answer session. (Operator Instructions)
This time I'd like to turn the conference over to Mr Brian Shore Chairman and Chief Executive Officer. Thank you. You may begin.

Brian Shore

Thank you operator. Hello, this is Brian. Welcome to our fiscal '25 second quarter investor conference call. Nice to have you on board. With us today are Matt Farabaugh, our CFO; and also Mark Esquivel, President and CEO.
Well, we announced our earnings through news release right after the market close. If you don't have that, you want to get access to that because in the earnings release, there's also instructions as to how you can access the presentation that we're about to go through. The presentation is also on our website. You want to have that up or the in order for the discussion to be more meaningful.
After we're done, as the operator told you already, after we're done, going through the presentation, we'll be happy to answer questions. So why don't we go ahead and get started? When we go to slide 2, our forward-looking disclaimer info, let us know if you have any questions about the forward-looking disclaimer language.
Slide 3, our table of contents beginning in slide one, we have our investor presentation. Then we also have supplementary financial information attached as appendix I. At the end of the presentation, we don't intend to discuss that at this time. But if you have any questions about the supplementary financial information, let us know here we have picture the clearest picture of mercury ever taken quite a beautiful picture in my opinion.
Thank you to James Webb Space telescope, obviously taken by the James Webb Space telescope. And as soon as our proprietary Sigma struts are incorporated into the structure of the James Webb Space telescope. So that telescope has a special place in our hearts.
Let's go on a slide for the quarter results. When we focus just on the right hand column of Q2 $16,709,000 sales, a $4,757,000 of gross profit, $3,204,000 of EBIDTA.
Quickly, what do we say about our Q2 during our Q1 investor call? We said the sales estimate from $15.9 million to $16.4 million . So we came in just a little tad above that adjusted EBITA estimate. We gave you $3 million to $3.3 million. So we came in right within that range.
Let's keep moving here. Slide 5, please. Continuing with quarterly results for some considerations for Q2, it was approximately $2.2 million of Aryan group rate carbs, he do PNG two BNG product sales. During the two to under parts business partnership with ING Group, we talked about this often. This is the fabric that we purchased from Air and Group for a blade of programs for missile programs and we then sell it to the OEM.
Customers turn around pretty quickly within a couple of weeks. Quite low margins. It's really a markup but we always say, well, don't worry just once when we actually produce the product and make the blade of materials, that's where the margins are quite good.
But by comparison, there's only 750,000 of a blade of material sales through Q2. So you see the little bit of an imbalance there. Much more emphasis on the low margin part of the equation. Less emphasis on the higher margin.
Eventually it all comes through. Of course, there were significant ongoing expenses in Q2 related to bringing parks new production facility fully online, you know about this including expenses for depreciation. Let's just stop there with the asterisk $1260 -- Sorry, $1,260,000 per year of depreciation expense related to the new production facility.
On this obviously does not affect the dollar by definition, but it's important but it does affect gross profit growth margin approximately 2% impact on the growth margin just for the depreciation just for the appreciation.
And if you look at the gross margin in Q2, what was it? I think 28.5 was that the number? Let me quickly make sure I'm telling you the right story at 20.5 we always say we don't like another 30. Just an appreciation alone would bring it above 30 but it's not just appreciation.
There's all this other stuff and this other stuff and also included in the EBITA or affects EBITA, facilities, maintenance, utilities, insurance, other overhead expenses and expenses related to additional park people, all related to the new facility.
Additional expenses, I thought this was an accident or a problem. These are planned expenses. I just want you to understand that required to bring the new facility fully online in order to meet the needs of the coming juggernaut and coach, which is described later on in the presentation.
So it's all part of the plan. But nevertheless, these items are going to hold down our P&L and our margins until that facility is ramped up. And right now it's very underutilized, but we're doing intentionally because we need to get going with that facility.
So we can meet the needs of the juggernaut and get, not get behind the power curve slide. Six total miss shipments in Q2, 600,000. That's not a great number was the international shipment issue, supply customers on hold other miscellaneous issues. Yeah, so the aerospace industry not really a happy place right now. A little more difficult and more challenging for us.
We got wars as well that are a factor especially when you talk about international shipments. There was no impact on Q2 on the sales and our earnings from the storm damage except for the 64,000 -- sorry I got that like dyslexic thing there, 46,000 of expenses reported as a special item in our Q2 release.
So other than the 46,000, no impact from the storm damage on Q2. Range of sales or production lines were fully operational and functional throughout fiscal two Q2. And that's quite remarkable if you remember the storm happened in the last two weeks of Q1.
So for the, the all lines to be fully operational throughout Q2 is quite remarkable, really a miracle, quite an achievement by our people I must say.
Let's go on a slide 7. Top five, we do this every quarter, top five customers, alphabetically air jet rocket dawn. These are the usual suspects. You probably hearing these names. They're involved with the factory missile system, aerosphere.
They're a, a rep for I Israeli apace industries which is a very important customer of ours and they produce the G 280 for culture. GKN that relates to the Boeing 77. That actually is not, it's the GEN X 1B engine that used to use an airplane.
Reos Chris, when we talk about every quarter in the top five, I think, and we just select one of their aircraft this time. It's AB 2M 1,778, quite interesting airplane. If you look it up on the internet, Middle River aero structure is yet they were kind of a usual suspect and Mrs and we chose the bomb 8,000 represent them.
Let's go on to slide 8 estimated revenues by aerospace market segment, the pie charts. What's interesting to me is look at '22 '23 '24 '25 year-to-date the pie chart really very, very similar, but the big difference is '21 and that was the pandemic year when particularly our commercial aerospace was, you know, very much, I don't know how you say it. I mean, in jeopardy almost looks like it might not make it.
Let's go on the slide 9. This is the slide that Atna does for us is the head of customer service every quarter. She comes up with really interesting cool programs to put in this little slide. The pie chart. This is for the first six months. Ra ons rocket nozzles, drones those we consider to be niche markets and military.
But for us, even our aircraft structures is niche per programs quickly, David Clark, you know, used customer, we love that they make the helmets for the Air Force and we supply materials. We also do kitting for them, which is nice.
And then we got the MK 30 canisters for Raytheon Ebessm system. That's a blade of the MK 125 warhead for the SM two SM six. Those are hypersonic missiles, I think. And that's actually not a bla as in this case, it's one part of the structure.
We can't say anything more about it. MK 41 virtual launch system that's actually parts that we produce with our, our materials. It seems like Elena was really focused on the missiles this quarter. So she must have done a lot of drains of missiles, I guess.
So let's go on to. But a nice selections. Thank you. Just going to slide '10 G space jet engine programs. Another slide. We, we give you every quarter, you have to understand something you complain about. We take over things too much.
There are new investors that dial in, you know, every quarter we have to be fair for them too. So we try to strike a balance here, you know. So yes, we, we include the light every quarter, a firm pricing. LTA, it's a requirements contract from '19 to '29 with MS which is a sub of ST engineering space, large singapore Aerospace Company, we built a redundant factory for GE actually in MS that's in production and all that.
So what's going on here with sole source, qualify for the cut composite materials for the CS thrust avers on are these programs, you know, they're all GE engine program. So why is that the reason is that when we entered into the LTA originally MRE was a sub of G aerospace.
So we've got all these G aerospace programs at that point. And then subsequent to that, G sold MS to ST engineering, but we continue on these, these programs. So let's go on to and I'm not going to go through the programs, you have any questions about them.
Let us know please slide '11 continuing with the aerospace MS Park. LTA provides for an approximate 6.5% weighted average price increase effective January 125 for the products covered by the LTA. I've been asked about this a lot, lot I said, well, I really like you don't want to say, but now we're saying, you know, kind of an investor presentation where it's appropriate part composite material.
So I don't forget we don't have to cover that one, we cover that every time. Let's go to the last one fan cash containment wrap for GEN X engines for the Boeing triple seven aircraft that's produced with Parks AP and other composite materials.
Park recently received the pal for approximately $6.5 million bucks for materials for this program. So this program is ramping. Our customer received a large order for case rep units. We're clearly not going to talk about numbers, but this was slowed down to us in terms of po and there's more coming, I suspect a lot more.
So this program is no longer just kind of development. It's really starting to ramp up a part materials for expect to be included in life of program. So they're not in the LTA because this came after the LTA. But the expectation is that we'll just put the GEN X the G nine X program into the life of program agreement which we'll discuss in a second slide 12.
So just trying to watch time, MS Park LT was amended to include free films of product forms for composite bond mel bond. This is really outstanding because these film mahe formulations are developed, you know, through a joint development agreement with Mrsnge.
And a lot of time that effort went into this, but it's outstanding because as soon as the developments done, then we go right into qualifications, that's really a very wonderful and special M qualification of two proprietary film pieces of product forms in progress.
One of three because so this is the process we go through a qualification with M and then MRE needs to go through a certification process with their customers on selective programs. So the first program that MS intends to get a certified on does not use Metal Bond.
So that's why we're not qualified Metal Bond at this point that will come later, right? A life of program agreement requested by MS and Ste agreement. It's under negotiation in a market led a team of, I guess three Park people to Mrs a couple weeks ago, we spent a couple of days, they spent a couple of days working on, on the agreement with Mrs.
So it's under negotiation. So we finally made some good progress on it. But just keep in mind this is what they want. They requested a day being MS and Ste we're happy to do it, but they, they're the ones who requested it and for a good reason.
Okay, let's go on to 13, 5, '13 continuing with the additional different updated g aerospace programs. Now a 320 Neo aircraft family includes all these variants. I won't, you know, read them off. Airbus has a huge and underlying huge backlog of a 320 Neo aircraft. Thermos is 7,253. So many airplanes, unbelievable number of airplanes.
Airbus has been, had been maintaining that intend to achieve a of 75 a 320 Neo family aircraft deliveries per month at '26 it's going to '14. So this is just a little history here about the deliveries over the prior years of day for '20 new aircraft. You can see that kind of peaked in '19 and that's what happened.
The pandemic, the number so off '23 they got back to the pre pandemic rate, you know, 571 compared to 561 and year-to-date through September about 396 not about 390 deliveries compared to last year, year-to-date 391 don't annualize that.
That doesn't work because aircraft industry for some, you know, funny reason that a lot of deliveries happened last quarter, but it's basically saying we're kind of tracking last year, which is a little disappointing. We were hoping that we would be able to show, you know, a little bit of improvement from last year. Last year is 48 airplanes per month.
As you can see, let's go on to slide '15. Then on June, June 2,424. Airbus announces pushing out its goal of achieving the 75 aircraft family monthly delivery rate from '26 to '27. Not surprisingly, Airbus highlighted supply chain issues. Oh boy, supply chain issues.
Deja vu all over again, especially engine availability issues as a key reason for the pushout. You know what's funny about this? Do you remember, what was it a year or two ago? We're all clear with engines, you know, it's not just Airbus set it, the engine company set it just all over an issue.
Everything's great. Now we're back in the soup of engines. I don't know what to make of that. But, you know, now engines are front center in terms of what the main supply chain issues were about. You know, supposedly, maybe casting and forging for the engines, but it's engines. That's the problem clearly based upon their huge backlog.
Airbus would already be at that 75 per month rate. You know, why is that? How many, what do we say? How many airplanes are in order? 6,000? So I gotta go back. Sorry. What was that number? Oh, no, sorry. 13,200, 72 77,000, 253.
Okay. So let's say they're at 50 now, which maybe you're not, but let's say they're 50 now, that's 600 per year. Well, how many years is that with over 7,000 orders? The problem is Airbus wants to sell more airplanes. So they, you know, you want an airplane, your delivery is, what, '13 years down the road?
That's not a, that's not very conducive selling airplanes. So one of the reasons Airbus wants to push it up to 7,575 equates to 900 per year. That's still not, you want an airplane and you get it next year, but it brings the lead time down a lot, which will allow Airbus to sell more airplanes, which is what they want to do. They want to sell a lot more airplanes.
So anyway, will everybody achieve its goal of 75 deliveries per month? We certainly believe that they will, will they achieve it in 27? We believe they will, but we're not sure it really matters very much where that goal is achieved on '27 or maybe '28. Key thing for Park is that we need to be ready and the key thing is they will get to that rate.
All these orders will be filled, they'll take more orders and we just need to be ready and you know, we not sure, you know what the timing of the, of the ramp will be. I don't think anybody sure. We just need to be ready. Number one, number two, those sales will be there and they're incredible sales for Park '16 approved engines for the 320 aircraft.
There's two approved engines for the A 320 do. There's the CFM leap one A, that's the engine program we're on. Then there's a Pratt Prett with the AP W 1,100 GGTF engine. None of that program just on CFM program.
We spoke lots and lots about the durability issues, especially for the pred engine. We'll cover that here. So let's see according to the September '24 edition of our engine. CFM leap one. A market share affirm orders is 64.4%. That's nice, nice market share.
I don't remember, but I think last quarter was maybe 62. You know, it's been around that 62 63 64 range moved up last quarter, but that may not be sustainable. I don't know, but at least it's well over 60 at the delivery rate of 75 a 320 aircraft per month at 64.4%. Leap one. A market share translates into 1,159. Just do the math. Leap one A engines per year.
What's that worth to park? Well, just go to slide 34. You, you know, idea of what it's worth to park each year. They're currently, this is just one of these huge numbers. 8,238 leap. Firm leap one A engine orders. That's a lot, a lot of engines. What are those firm orders worth the park? Well, I mean, go to slide 34. It tells you what we get per engine.
I think it's about $1.4 billion dollars. And that, that assumes that we're going to, you know, continue to fly after '29. Which whether we have a life form or not, we're quite confident we will and it does not assume doesn't take into account, there'll be price increases during that time frame.
But if you think of that conceptually quarter billion dollars, does it really matter to us whether it's '27 '28 29? It's just a lot of, you know, a lot of revenue for Park and those engines are going to be sold, you know, those engines are going to be produced and sold. Those are our engines. That's our program. So, you know, I think of people selling the stock of '13 bucks. I'm not sure what they're thinking. Let's go on to slide '17 Airbus.
Okay. Here's one of the variants. A 321 XL R. Airbus open additional XL R production line in July, the H 321 XL R powered by a leap one A engine received its Yasa type certification in July. That's really nice news. That's good. And the Yasa is the European equivalent to the fa the first A 321 XL R delivery scheduled for latest month to Iberia. And according to Airbus has over 500 orders for this program, important program for Park.
Let's keep going slide 18. Okay. Now let's go to Comac com 919. That's the single aisle airplane that Comac developed to compete against the 737 and a 320 that has another kind of leap engine. This is called leap one C I don't know, maybe she stands for Comac.
But it's a variation of the same engine that's in the that's '20 new PEC plays to achieve production rate of 159 '19 aircraft a year by '28. I think that's credible, you know, they're investing huge amounts of money in production lines. I think they now have three final assembly lines report to have over 1,500 orders for 919 aircraft. 919 is now flying for Air China, China, Eastern and China, southern, all Chinese airlines. KEC clearly has designs on getting out. You know, it's all these airplanes outside of China though.
They've delivered nine so far and they've logged over 10,000 flight hours. This is an important program for Park and we'll see what happens, but we believe and our customer believes a very important program with lots of upside opportunity.
Let's talk about, let's go to night rather triple seven X aircraft with G nine X engines. In August 19, Boeing grounded this triple seven X test of flight fleet after detecting engine attack, attachment issues. A fleet remains grounded while Boeing continues to evaluate the problem.
These engines, they achieved a record GBP134,400 of thrust. That's why those engines that are pretty important. They're certified for GBP110,000 from the perspective, the leap one A engine for the A 320 about GBP32,000, you know, so big engine lots of power. October '11 '27 '24.
Boeing announces pushing out its first delivery target to '26 from '25 because of development challenges of flight test pause in the work stoppage. Boeing says they sorry, not Boeing. And according to data, Boeing four and 81 orders for these airplanes, so a little bit of setback. But I mean, the thing is, it's very, this is a clean sheet airplane.
So it's not surprising that they'll have problems like the engine attachment problem. It's very, very important that this happened that this was detected during the development of certification phase, not after this airplane flying in the air 38,000 ft with 400 people on it. So this is a really important program for Park. We just, we have the best wishes for Boeing.
Obviously, they're not, you know, having a bad time now. But we hope that Boeing finds a way to, you know, to move ahead and make things better. Let's go on to slide 20. We can quickly cover this pretty much everything here is provided for history for context.
In the bottom right here, fiscal '25 Q2 $27.1 million of sales. This is, I'd like to read the title G Aerospace Change Your Program Sales History. And forecast estimates $7.1 million in Q2. I think our estimate was a little lower than that, but kind of in the range. And our forecast for Q3 is $6 million and a quarter to $7 million. That's our forecast for Q3 for the year '23 to $26 million. We provide that forecast last quarter. We just sticking with it for the year.
Okay. Let's go on to slide '21 parts, financial performance history and forecast estimates. So again, most of it is provided, most of the data here is provided for history, history context. Fiscal '25 Q2, you already have that number $16.7 million, $3.2 million. But our forecast for Q3, 13.5 to 14, a quarter million sales, $3 million to $3.3 million even note the footnote subject to supply chain risk and limitations.
We'll discuss that even further in the next slide. So let's go on to slide 22. This slide is exactly the same slide we presented to you last quarter. Everything's historical other than the forecast estimates. We're not changing the for estimates, sorry forecast estimates for the year, pretty big range of $60 million to $65 million sales, $13 million to $15 million.
But and this is what we provided last quarter. So I'm not changing it, but look at the important things, supply chain limitations, affecting aerospace industry. So let me stop for a second. Yeah, the aerospace industry is not really a happy place right now.
Not so much fun, you know, for perspective. The ee the European shows the big ones, Paris and the farm altern every year last year was at Paris. Lots of exuberance. Maybe a rational exuberance would depend on hindsight about all the orders are taken. All the engines that are all the airplanes and engines being sold. Everybody's very excited about that. Wonderful, wonderful, wonderful.
Okay, that's nice. Then we fast forward to Farnborough this year. Very different tone, very different mood kind of glum because everything that is coming out of Farnborough, supply chain, supply chain, supply chain, supply chain, supply chain. The problem has been solved.
You know, one comment I guess was a little sarcastic was who cares how many engines? Sorry, how many airplanes you can orderers you can take if you can't make them. What, what, what difference does it make? Obviously that's being sarcastic, but that was the recent mood. What's interesting, I guess you will look at it that way as we go through these kind of fun day all over again.
How many times have we heard in the last three or four years, supply chain issues almost over, about solved, about solved everything's going to be fine and they were back in a so, you know, why is that? I don't know, maybe it's a psychological thing.
My guess is they never were solved. It was just a wishful thinking. A wishful thinking is contagious. One person says it and the other person says it okay, fine. But supply chain issues are clearly not resolved or not, have not gone away and they have an impact upon the industry.
So just keep that in mind with these forecasts that we, you know, we have all the risks that we put in the 10-K. But supply chain issues are a key risk for these forecasts. So and of course, we also are ramping up the cost for juggernaut and that's not just a temporary thing that's holding back or not a top line but a bottom line.
Let's go on slide 23. Try to hustle here a little bit if we can. Oh General Park updates. Yeah, I guess we're just covering a lot in this presentation. So it may be taking a little bit longer solution treater project. We plan to purchase and install, install an additional solution treater. Why are we doing that? We'll take approximately three years to design and specify the equipment, install it to conduct control trials, qualify equipment with customers three years.
So we're quite concerned when we look at the opportunities we have, we look at the programs on the opportunities we have. We're concerned that we're going to run that capacity. So we need to move now because it's a three year time frame. \
We can't wait three years, we do that. We're what's the term screwed? I think the budget for the project is about $70 million. This is something we decided to do when we're going ahead with the project. This will be placed in a new factory. Remember we told you that there was a big area set aside for a new line. Well, this is where that want you to go.
Another item, these items are all related. They're just updates. So major OEM suppliers as partner part, sorry, the partner and coach with them, the purchase of an additional manufacturing line to support critical defense programs.
This equipment is essential to these programs so it's, it's needed. This OEM is quite a large but large in part, but they want us to be partners 50:50 to $5 million each. And we're now negotiating the agreement but we plan to do this. It has to be done. This, this additional line is essential for the military programs. So we're talking a little bit about money as well because you want to get to that later on in terms of our cash '24.
Slide 24 we recently qualified in essential high profile missile defense program market is potentially this program is potentially larger for us than the PAC three missile program. Initial revenues expected for Park next year and program in expected ramp from there. And we probably need to make a $1 million in capital investment just towards this program.
This is a, you know, important accomplishment for Park. Let's put it that way. I can't, we can't talk, give you more details about the program, but you would have heard of it. That's for sure. So next item Park recently entered into a license agreement with a with a major e under the license technology used for SOIC missile programs.
We understand that Park is the only licensee license of this technology. We're currently conducting manufacturing trials, a significant potential opportunity for Park online, significant Park. We need to make a capital investment, approximate $3 million. I just want to stop here because these are not certainties and that's not the standard for us. You know, sharing things with you.
I think you would want to know about important opportunities for Park. But if you just want to wait for these things to be locked, that's different. But I don't think that's really what you want to hear. So my point is that this may happen, it may not happen. A shareholder complained you know about, well, we talked about some of the program a couple of years didn't go, didn't happen.
Well, yeah, we talked about it, I think is important and it seems serious. That wasn't a guarantee it's going to happen. So just keep that in mind. All right, please slide '25. A new Llt A with GE Aerospace is decent separate item in progress for county or '25 to 30 under which she's ordering two additional products for Park. And the incremental revenue from that is $3 million that this is not part of the juggernaut.
By the way, this is separate incremental revenue. This is not the MS LTA, this is a G aerospace lt A separate LTA A potential JB with major adhesive company related to adhesives for the aerospace industry, those discussions and negotiations and progress. We've had numerous in person meetings. I believe there's one next week actually in our facility and a significant capital investment may be necessary to support the JV.
We see another potential JB was a major Asian industrial conglomerate related to the manufacturer, marketing sale of certain new parts, commercial composite materials products in Asia. So these discussions and negotiations in progress, they sure are because we have a team over in Asia right now and we've had a number of meetings already.
This could involve significant capital contribution part, this this, this OEM is quite aggressive, you know, we're trying to slow down a little bit, they definitely want to do this. So it's, I think maybe a good possibility that actually happens.
A slide 26 totally different topic but still an update. M supplier Cord was just, maybe I'm trying to cover too many things in this one presentation or M supplier score card part scores. You can see the scores. The first item was actually mistaken really should have been 100. What these scores mean? What is their significance? We're told that Mrs has over 700 suppliers.
Are these typical supplier scores? No, I don't think so. We're told that most suppliers would be happy. Get 80s. I've been told that numerous times and a lot of them don't get 80s. Are these, these scores achieved by other suppliers ever? I don't think so.
So similar theme is Park. Mrs is best supplier over 700. That's what I'm told. How does that happen? Is a boardroom thing or boil room thing? This is such a special situation for Park, you know, and I'm not sure whether it's fully appreciated how, how special it and achieve an accomplishment this is and how special it is for Park to have this kind of relationship with a company like this.
See, it's our strategy for customers to love us in order to that strategy be implemented. That's more of the boiler room thing. That's really a culture thing that it depends on Park having very dedicated employees. That's how we achieve these scores. That's how we become their best supplier and what we're told anyway, their best supplier.
So yeah, I mean example, I'm sorry to take the time, but just one little example, you know, John Moon, I mean we, we were told he has a house but we would never know that because he's never leaves the plant. If something has to be shipped, doesn't matter what time he's not going anywhere, he's not going anywhere until that truck has left the dock, you know, and that kind of dedication and if you want your customers to love you, you need to have people like that. The rest of strategy is nice, but in order to implement it, you need to have people that are very dedicated.
So let's go on to slide 27. Questions about this is now a different topic. We got recent questions from investors. Okay. So a whole new section here that we have previously let us know if you want us to continue with this. But we thought it'd be interesting to include some of the questions that we received from investors with questions about our film.
He's a product line called here. What advantages does Arrow here have over competing products? Well, Arrow industry is a little strange. It looks for equivalency more than better. In other words, better is not really such a good thing when we developed the film.
And he remember we did that with a joint development project which E and Mrs with a lot of tweaking, a lot of fine tuning for their needs. But generally speaking, we want equivalency because if it's not equivalent, it's better than the customer is going to have much more difficulty incorporating into their programs.
Why would a customer then buy it from park if it's just equivalent? Because it's because of park more than product itself, they're buying. Why we, how we selling, we're selling Park, we're selling the fact flexibility response with this urgency. So people say, well, what is the expression?
Oh, a customer says jump and you say how high we don't do that? We say how high before they say jump. And I'm not kidding. We, we say how high before they say jump, that's what we're selling. Do we anticipate that error here is more arrow here, sorry.
The tongue twister margins will be higher or lower than parks average margin. This is a question from investor higher and we're quite sure of that several years out. What sort of, what sort of range of revenues are we targeting for, for arrow here?
Well, we're not sure the strategy though isn't really a revenue strategy is to broaden the product line we offer to customers which manufacture aerospace composite structures. That's why we love adhesive so much because customers buy our product to make composite structure to aerospace.
Obviously, they need to buy composite materials to make composite structures, but they also use adhesive in the production of these composite structures just for reference though, since you know, you're asking about revenues. The A 320 program is the first program that MS intends to get our film.
He's a certified on and that's $3 million per year at this once the program ramps to 75 airplanes per month. So let's, and obviously that's not it. We got lots and lots of other opportunities working on, not just with the rest but other, other companies as well. Slide '28 more questions. What about that?
A major new manufacturing project initiative we discussed in our Q2, sorry Q4 investor presentation last year. What's the status is morphed into a larger product project? I wasn't discussed during our Q1 investor presentation with the customer which initiated the project now wants a project to be an aerospace composite structures, manufacturing technology,
JVA potentially larger, quite a bit larger project. This is JD like with new call where you know, two companies and own it. I guess. What about our strategy? What is it? Somebody else actually asked that we have a strategy.
Yes, we have a strategy. We call the X strategy. We certainly not to take the time to go into it now. But let us know if you want to discuss our strategy, probably take five minutes or you know, in, in an upcoming presentation. It's a straightforward strategy. It's not like an elegant strategy. It's very straightforward.
So nothing we tell you, it's going to surprise you, but we have to go over it with. You should like slide 29 different topic. Our buyback authorization we announced on May 2, 322 that Parks board authorized to purchase of 1.5 million shares.
Under this authorization, we purchased a little 551,1729 shares, an average price of total 94 total cost of $7.1 million. So we're spending some real money on this. Now. It highlights the recent buyback activity under the authorization since July 2,624.
The significance of July 26th. That's after the blackout, the Q1 blackout ended was lifted. We purchased 331,180 shares of Comstock average price of 1,288. A total cost of $4.251 million. Like I said, we're spending some real money on this now. Why do we do that?
Why we do that? Because we thought the price was stupid. Ridiculous. You know, we it's not really our preference to buy stock. You know, we'd rather use our cash to take advantage of all the opportunities we have.
But when the stock price is, we feel stupid and ridiculous, we don't think we have too much of a choice. Will we buy more? I don't know what to say. Maybe So let's keep going. That's our buy program. Slide 30 credible cash dividend history, 39 consecutive years of dividends. We've paid 596 million or $29.10per share. It is fiscal '25.
So a little bit of a thing here that we're developing a concept anyway, so we have a regular dividend payable on November 5. It's not right. It's the be paid on November 5, 2024. So sorry, that's a typo. I just noticed that and, we'll have paid $598.6 million at that point.
And then, looks like, oh, there's another typo. The next regular dividend is planned to be declared by Parks Board about January 9, 2000. That's supposed to be '25 sorry about this and paid about February 425. And that's well, within the fiscal year, somebody's not going to get paid this week for these mistakes.
And unfortunately, I think that's somebody's made because I want to make the mistakes. So sorry about that. But the concept is during this fiscal year, you can look at the highlighted language we have paid by the end of this fiscal year, rather $601.1 million in dividends is '25 and also $29.35 per share.
Since '25 do the math 05, '25. That's '21 years. So, if you want to do the math, divide 601.1 by '20 oh, sorry, that's '21 years. '21 years. Yeah. Sorry. '21 years. So divide 601.1 by '21. That's 28.6 million per year. Just FY, I, you're going to divide to 29.35 by '21. That's a dollar 40 per share per year of dividends paid since on the average paid since this '25 the beginning of '25.
Let's go on to slide 31 our balance sheet, we have no long term debt, $72 million of cash. We just talked about that. We have one more transition taxes form of payment of $5.1 million and two of '25. Thinking about our cash. So some known or likely cash expenditures of $5.1 million.
That's not like that's known that the tax payment in June, we have to pay that a share buyback in fiscal '20 fiscal are '25 to 3 in our current quarter, that $2.4 million that's already been spent. So that's, that's a known item solution three year project $7.5 million. That's an estimate. Contributions to the OM partnership approximate, well, $5 million. That's what we're talking about.
That gives us a round number of $20 million. So $72 million minus $20 million, $62 million. So we go to slide 32 when we think about $52 million. Well, that doesn't include a lot of other things that we've already discussed. A lot of items which we won't iterate here.
These items that are listed, we already discussed in this presentation for the most part and some of these things will happen. Some won't. We also have, likely have additional expenditures a new plant when you, when you actually start a production, no matter how much time you spent with the trials and qualification, we start production, you realize some other things that might be needed.
So, so there might be some additional investment that's required in the plant equipment investments. So what do we think about our cash? We think that we don't have unlimited cash and we think we need to be real careful how we spend it.
Let's go on to slide 33 the juggernaut. We've covered this the last three quarters. So we'll try to rush through it. Financial Alec for I look for G A space jet engine programs and for park the juggernaut. So what's the timing?
We're not sure but it's coming. Can't be stopped. You better be ready going on a slide 34. The only change here unfortunately is a G9X program. So we moved up that number that's based on specific inputs we have from our customer.
We've heard higher rates, but that's based upon specific inputs, rate inputs we have from our customer. And as we said, we're not going to provide any more detailed information because it really is not. Our business is more up to Boeing and G disclose how many airplanes they plan to make per year, not, not for us to do that.
So why don't we go on to the next slide? 35 Parker Space Core, high level conceptual financial outlook. We start with a baseline year of fiscal '24 the estimated G programs incremental sales that just math you know, taking the number from the prior slides attracting the '24 sales. I think that was '21 million incremental sales, 37.6 million estimated John No, sorry, nine G programs incremental sales, '15 million.
So we try to try to do something a little differently here in the past, we're breaking it down between programs. We're sole source qualified on another program is that that we expect to get on and other sales we expect to generate, we just put it in one big one bucket 15 million as indicated the foot.
No, we believe that's a conservative number based on all the opportunities of working on the total. Here, you could see 108.6 million. The contribution I do contribution from the incremental sales is 19.7 million. That's based on a contribution rate, I believe a 37.5%.
The additional 4 million we discussed that before that relates to our base year, which is quite an efficient because we're operating well below efficiency of the new plant. And for, you know, many reasons we discussed in the past which we won't go over here, a slide, 36 just a footnote to the slide we just read. So we won't go through those and that concludes the presentation. Thanks for listening operator. We're happy to take questions at this time.

Question and Answer Session

Operator

Great. Thank you so much. At this time, we'll be conducting a question and answer session. (Operator Instructions)
Nick Ruo, NR Management.

Nick Ruo

Good afternoon, Brian. First, I just want to say on share we purchased, I'm very appreciative of how judicious you are. And when we purchased, like I come across so many smaller companies that lay over pay for the stock sometimes double where it's currently trading and then put that in their press release, that return cash to shareholders, which actually they destroyed value.
So you've been very wise and I'm appreciative of that. So, you know, a couple of quarters ago, I think we were talking a little bit about automation potentially in a new facility. So I've been reading a lot and watching a lot about, you know, the use of robots and other automation and factory settings.
So can you just give me your perspective? Do you feel any at any point you'd be disadvantaged, disadvantaged by not having automation in the facilities or just, I'd like to understand your perspective on that and kudos to the workforce there, it just goes to show you some places have a great culture and don't need a union. You know, you built a great organization in that regard. Thank you.

Brian Shore

Thank you very much for those comments, Nick, appreciate it as far as automation is concerned. If you visited our facility, you would see that we're operating these lines that run continuously with you know, usually a staff of about four people. So it, you don't, you know, look at like an assembly line where you think, oh boy, a lot of these, a lot of these procedures and processes could be automated and reduce cost, maybe improve efficiency.
One of the areas so that does, I mean, we're not interested, but I think that the opportunities for a park type operation are maybe not quite as much the bank for the buck wise as other kind of operations would be. But you know, we talked also about automation with respect to that project, that manufacturing project that's now morphed into a potential technology JB.
And that's an area where automation would be front and center, I think, you know, so that project still has to be initiated. You know, like I said, it morphs. So it's, it's a larger, different kind of project, but that project would involve quite a bit of automation, I believe.

Nick Ruo

Okay, thank you. Can I ask one more?

Brian Shore

Sure.

Nick Ruo

Just, I know this is a difficult thing to say, but where would you be disappointed in terms of Airbus, say, ramp up of deliveries next calendar year? Where, where would you be disappointed if it didn't reach whatever the number is? 52 you know, 5,450. Where, where would it disappoint you?

Brian Shore

I mean, I'm sure I understand your question you're talking about in terms of our, our annual sales or 883, '20 per month to me, monthly rate that Oh, okay. Yeah. Well, we're disciplined already. So maybe that's a hard question to answer. The supply chain is clearly, you know, become more of a, a known issue. Probably they all along. My guess is that this year maybe look at the 50 last year, 48.
I've seen all kind of different forecasts. I mean, obviously we like to be 75. So maybe that's not a proper answer. It would be nice if next year there are 55. I don't know if that helps, but, but if we're not, you know, we, we're already disappointed so probably disappointed with any number that's under 75.
But the key thing is for us to hang in there and be ready for the ramp because as far as we're concerned, there's no question, they'll get to 75 just with all the orders they have, it just doesn't make any sense, they wouldn't get the 75.
So the key thing for us to make sure we're ready for that and that's really important, that means we need to ramp up the new facility. That's why we're, we're doing that now, but we're also kind of suffering through the additional cost burden of ramping up the facility that is still operating at a very low rate.

Nick Ruo

Okay. Thank you. Yes. And as you said before, this is a long term proposition. And, you know, I, I really loved your comment about the stock price, you know, stupid. And certainly got pretty stupid at one point. So I appreciate it. Thank you so much, Brian.

Brian Shore

Thank you, Nick. Very nice to hear from you.

Operator

Once again, if you'd like to ask a question, it is star one on your telephone keypad.
I have no further questions. I like to turn the floor back to Mr Shore for any calls and comments.

Brian Shore

Okay. Well, thank you operator. I just want to say, I'm sorry that it took so long. I think what we did was we try to cover too much during this presentation. I think everything we covered was meaningful and information that many of you probably want to know about. But nevertheless, maybe we, we put up more than we can choose. So I apologize for that lady event. Thank you very much for listening. We hope you have a very good day. We'll talk to you soon. Goodbye.

Operator

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