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Transcript
OP
Operator
Operator
Good morning. My name is Paul, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Park Aerospace Corp. Second Quarter Fiscal Year '23 Earnings Release Conference Call and Investor Presentation.
[Operator Instructions]
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.
BS
Brian Shore
Analyst
Thank you, operator. Welcome, everybody, to our second quarter conference call. This is Brian. With me as usual, Matt Farabaugh, our CFO. As you obviously noticed, we're trying something a little different this time. I think for as long as I could remember, like forever, we've done our investor calls at 11:00 in the morning, New York time. We're trying to do something -- we're trying, let's call it, experiment after the close call, which my understanding is that's actually more common. So we're trying. Do let us know what you think. We'll be noticing how many people actually are able to dial in, whether it's more or less. So let us know what you think. The earnings release was posted, I believe, around 4:00 or 5:00 this afternoon. There is a presentation which has been posted on our website. Also in the earnings release, there is a webcast instructions as to how you could follow along with the presentation while we're going through it, which is what we're going to do today, of course, as you know. Let's see just checking any other introductory notes I want to share with you. There's something I got to tell you, which is that I've been under the weather a little bit, you may be able to hear in my voice. I'm feeling just fine now, but the problem is I have a lingering cough, which is not a problem for me, but it could get a little annoying for you. So if I start to cough, please bear with me. Unfortunately, the thing that probably triggers the cough the most is trying to talk for an hour at a time. I may hand it over to Matt if it's getting problematical. So I just wanted you to be aware of that.…
OP
Operator
Operator
[Operator Instructions]
Our first question is from [ Brandon Deips with Huffman Prairie Holdings ].
UA
Unknown Analyst
Analyst
I just wanted to follow up real quick on the GE Aviation Q3 guidance. Pretty decent size reduction from Q2 to Q3. And I may have missed some of your commentary. But can you provide maybe just a little more detail? I mean, is this just the calendar shift into Q4? Do you expect to recoup kind of those missed sales in following quarters? Just hoping to get a little more detail around that reduction.
BS
Brian Shore
Analyst
So if you missed it, we did a pretty -- I did a lot of commentary on this point. And you probably want to go back and listen to it. I don't really want to -- I surely don't want to go over the commentary again, and I don't want to try to sum it up unfairly because there a lot of factors here.
And somewhat it is a little bit delicate, let's put it that way. But I think what I did was I try to be as candid as possible out of respect for you and other long-term shareholders that are really interested in what's going on. My suggestion is go back, listen to that portion of the call if you haven't, then give us a call and ask if you have any other follow-up questions about that point, if that's okay.
UA
Unknown Analyst
Analyst
Okay. Yes. Yes. That's definitely okay. We can follow up with you on that. I did have a question on the 2025 $32.5 million figure. I'm pretty impressed by the increases you guys have noted over the last few quarters, if I go back and -- kind of back into the shipset value that implies, it's pretty decent, I think, 8% to 13% increase over the last few quarters. Is that just pricing? Or are you able to provide any commentary on what's driving the increase in the shipset that you guys are seeing?
BS
Brian Shore
Analyst
Yes, that's just for the A320 also. So the -- I guess a couple of things going on here. A few. One is we have these new usage numbers. Remember, as we had a question whether the prior usage assumption was correct. Remember, we ship something, we don't know what program it's going to.
There's all these programs, our ship are of the same spec. So the usage information is really critical to us. So the usage information change went up more square feet of material for shipset for A320. Second thing is that in '25, there is a built-in increase based upon our LTA. So that's fixed. It's part of our LTA. And the third thing is, as I mentioned, that by 2025, we also expect that film adhesive be on A320 program. So those are 3 factors that would affect the A320 unit numbers, let's put it that way.
OP
Operator
Operator
[Operator Instructions]
There are no further questions at this time. I would like to turn the floor back over to Brian Shore for any closing comments.
BS
Brian Shore
Analyst
Thank you very much, operator. And thank you all for listening. I apologize for going so long. This is the longest we've ever done, I'm pretty sure. Also I apologize for the coughing. I can only imagine just how irritating it's listening to that. So I got through it without probably some distracting coughing noise. So thank you for bearing -- for hanging in there and bearing with me on that little issue.
So thanks again for listening, feel free to give Matt and me a call any time if you have any follow-up questions. And have a good autumn and we'll talk to you soon. Take care.
OP
Operator
Operator
This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.