Good morning. My name is Shannon and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace Corp. First Quarter Fiscal Year 2021 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]. Thank you. At this time, I will turn today's call over to Mr. Brian Shore, Chairman and Chief Executive Officer. Mr. Shore, you may begin your conference.

Thank you very much, operator. Welcome, everybody. This is Brian. Welcome everybody to our first quarter conference call. I have with me, as usual, Matt Farabaugh, our CFO. So, just want to mention that we announced our earnings of course this morning. And if you don't have the presentation up in front of you, you want to go get that, there's instructions in the earnings release itself as to how to access the presentation. Also it's on our website, I think under Shareholders and maybe presentations or something like that. I'm sure you'll find it, if you look. So, you want to get that because that'll make the call a lot more meaningful. Also, there is supplemental information, which is attached, and there’s financial information, which is attached as Appendix 1 to the presentation itself. So, for those of you who attended or participated or listened to our fourth quarter conference call, which was on May 14, we went into pretty great detail about the virus and the economic crisis and the impact on the aerospace industry and Park. We're not going to go over all that again. I think that would be not that productive. Unfortunately, to have the best context for this call is you probably need to have some reference to the prior call. But for us to go back over everything again, and we’d have a 2-hour call and I don't think anybody is up for that, probably me -- not -- even me included not being up for that. So, we're not going to rehash all of it. We'll do a little review of some of the -- and go over some updates. And then of course we'll answer questions. So, why don't we just get right into it? And I'll going to be referring…

[Operator Instructions]. We have a question from Nick [indiscernible] with NR Management. Your line is open.

Just had a question on the dividend policy. Is your intention to keep paying the $0.10 quarterly dividend? And I know this is hard to forecast, but at what level would you think you would actually have to be in a situation, where you would burn cash rather than generate cash?

So at this point, we're not thinking of changing our regular dividend. We discussed that last quarter. So it’s something we continue to evaluate, but our position at this point is continue the regular dividend. That's based upon, we're looking after this year, our internal forecast. So this year, we probably will cover the dividend. We probably have some limited positive cash flow, but it won't cover dividend. But I think we're okay with that. It's important to us to continue the dividend. Now that's not a guarantee, I mean something could change. But that's our perspective at this point. So does that answer your question Nick or is there anything else I can help you with on that point -- on that question?

No, that’s very clear. One other thing -- and again, I'm looking at -- I am not saying this could happen. But at one point an investor had requested or asked due to considered share repurchase. Now I do believe all that cash is a good asset to have especially in these troubled times. Are you seeing any more opportunities coming up for acquisitions? Is there anything out there that’s looking more appealing in these troubled times? And just to address share repurchase. If the stock were at 6 or 5 or something like that, is that something you might consider? Thank you.

Okay. So let's take those questions in reverse. So that's hypothetical, but yes, I mean, or how about one, sure. As the stock goes lower, obviously the share repurchase becomes more interesting. As far as the acquisition mark is concerned, so what we’re advised by the bankers we work is that you probably need to wait another couple of months, maybe the fall, maybe like September, October timeframe for some of these opportunities that kind of come out of the wood work. But we just -- we covered this on our last call, that's why I didn't go into detail in this call. But it's something very important I mentioned just kind of briefly using our cash and our balance sheet to our advantage. But we've been frustrated with acquisitions for a long time, had cash for a while. But valuations just not look right to us. And I think with a bit of hindsight, we were right and the world was wrong. So the inmates maybe running the asylum because we're told, well, if you want to get in the game, you got to pay these multiples and everything. I think I mentioned last time, we looked at companies that were actually where the asking price was maybe 5 times revenue. And there was also 5 times revenue. Not worse, of course, but in many cases we saw the announcement, were quite stunned. We just don't -- and these are not cure for cancer companies. I mean, maybe they thought they were but we didn't. So what we're looking for is something more central to our business. Something that would be not a direct competitor, would be added to our business, different capabilities, different product lines, but still center to our business, not very tangential. And we've been looking…

Thank you. Our next question comes from Chris Hillary with Roubaix Capital. Your line is open.

Just wanted to ask, with all the disruption that's out there in the industry, do you see that’s creating opportunity for your -- to bid on new business or is it more a situation where everyone is more disrupted and just trying to deal and manage their own business commitments or whatever the pipelines are as they recover?

I think it's a little bit of a mix, but unfortunately, there's a lot of companies in the aerospace industry right now. They're just I think feeling very defensive and in a survival mode. So that could be a little frustrating. We're doing everything we can. We reach out to customers all the time. We're not going away, looking for opportunities, looking for opportunities. But, it's not just black and white. There definitely are opportunities. I think, especially in the military area where it seems that the funding is still pretty good. So, we have to keep at it. I mean, it can be frustrating sometimes for the sales guys, they’ll call and say, look, you know what -- call a customer, we're not doing anything now, we got no money, we're no funding. We're just trying to survive through tomorrow. Okay, we'll call you back next week. We're not going to go away and we'll make a pest of ourselves. But there are opportunities and I don't want to be overly generalized, Chris, but I think they're probably more in the military or defense area than the commercial civilian, all the industries are affected by the economic crisis and/or pandemic, but military seems to be doing better. The funding is there. New programs are being initiated, qualifying new suppliers. So, I don't know. Well I guess the answer to your question is not so black and white, as far as I am concerned. It’s kind of a mixed thing. But from our perspective of like I said, we're going forward, we're not going to relent, we're not going to let up and yes, we'll be a pest. I mean, we'll keep on, what can we do, how can we help? Can we help? Sometimes -- I will just say one of the things, sometimes the first answer is well, that’s what we could do, but you need a follow-up question. Well, what do you mean by that? What are your issues, what are you struggling with? Don't accept no for an answer. So I mean, obviously you've got to be polite and respectful, not belligerent. But don't accept no for an answer. In other words, they may not even think there's an opportunity to start a discussion. Wait a minute, what about that over there? Oh, yes, maybe you can help with that. We're looking for little things, looking for big things. I mentioned last quarter there's a couple of initiatives that we're taking on. In other words, we are doing more ourselves rather than forming these things out. And we don't want to be specific because it's kind of sensitive thing. So we're looking at those kind of opportunities at all. Those are not huge ones, but they're nevertheless opportunities. As I just said, small, big, either way it's okay with us.

Thank you. And I'm showing no further questions at this time. I'd like to turn the call back over to Brian Shore for any closing remarks.

Thank you, operator, and thank you everybody for listening during the summer, when you probably have other things you might prefer to be doing. So, even though the world continues to be a kind of a challenging place, I want to wish you a really good summer. Hopefully you'll all get away a little bit, get some R&R. And we'll talk to you again, at least in terms of a quarterly call in a couple of few months. But in the meantime, you call us anytime if you have any questions. So you take care and have a great day. Good bye.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.