Astronics Corporation Reports Fourth Quarter and Full Year 2012 Results

  Astronics Corporation Reports Fourth Quarter and Full Year 2012 Results

  *Record full year net income of $21.9 million on record sales of $266.4
    million
  *Fourth quarter diluted earnings per share up 8.8% to $0.37 over prior-year
    period
  *Fourth quarter sales up 10.2% to $67.4 million
  *2013 revenue expected to be in range of $275 million to $310 million

Business Wire

EAST AURORA, N.Y. -- February 5, 2013

Astronics Corporation (NASDAQ: ATRO),  a  leading provider of advanced
technologies for the global aerospace and defense industries, today reported
financial results for the three and twelve months ended December 31, 2012.
Results include Ballard Technology acquired November 30, 2011 and Max-Viz
acquired July 31, 2012.

                                                                
               Three Months Ended                   Twelve Months Ended
               Dec 31,          Dec      %          Dec 31,             Dec 31,   %
               2012           31,     Change     2012                2011     Change
                                2011
                                                     
Sales          $   67,420     $ 61,156   10.2%      $   266,446     $   228,163   16.8%
Gross          $   17,551     $ 17,349   1.2%       $   69,442      $   60,496    14.8%
profit
Gross
profit             26.0%        28.4%                   26.1%           26.5%
percentage
Impairment         -            2,500                   -               2,500
Loss
SG&A           $   9,622      $ 7,326    31.3%      $   36,817      $   27,175    35.5%
SG&A
percent to         14.3%        12.0%                   13.8%           11.9%
sales
Income
from           $   7,929      $ 7,523    5.4%       $   32,625      $   30,821    5.9%
Operations
Operating          11.8%        12.3%                   12.2%           13.5%
margin %
Net Income     $   5,655      $ 5,169    9.4%       $   21,874      $   21,591    1.3%
Net Income         8.4%         8.5%                    8.2%            9.5%
%
                                                                                  

Peter J. Gundermann, President and Chief Executive Officer, commented, “2012
was a great year for Astronics as we continued to grow both organically and
through successful, growing acquisitions. We had record revenue and net
income, and ended the year with a strong backlog to begin 2013.”

Consolidated Fourth Quarter Review

Consolidated sales for the fourth quarter of 2012 increased by 10.2% to $67.4
million, including $4.7 million associated with acquisitions, compared with
$61.2 million for the same period last year. Aerospace sales increased by $6.5
million and Test Systems sales decreased by $0.2 million.

Consolidated gross margin decreased to 26.0% in the fourth quarter of 2012
compared with 28.4% in the fourth quarter of 2011. Lower gross margin was a
result of increased engineering and development (“E&D”) costs and increases to
inventory and warranty reserves, partially offset by the leverage achieved
from the increased sales as compared with the 2011 fourth quarter. E&D costs
were $11.1 million in the fourth quarter of 2012 compared with $9.5 million in
the same period of 2011, an increase of $1.6 million. Expense relating to
warranty and inventory reserves resulted in a $1.2 million increase in cost of
goods sold compared with the 2011 fourth quarter.

Selling, general and administrative (“SG&A”) expenses were $9.6 million, or
14.3% of sales in the fourth quarter of 2012, compared with $7.3 million, or
12.0% of sales in the same period last year. The increase of $2.3 million was
due primarily to incremental SG&A from acquisitions totaling $1.6 million, as
well as higher legal and compensation costs. The fourth quarter of 2011
included a non-cash pre-tax charge of $2.5 million for impairment of goodwill
and intangible assets related to the Test Systems business.

Consolidated Full Year Review

Consolidated sales for the full year of 2012 increased by 16.8%, or $38.3
million, to $266.4 million. Organic sales increased $23.4 million, while sales
associated with acquisitions added $14.8 million. Aerospace sales increased by
$41.1 million, while Test Systems sales decreased by $2.8 million in the full
year of 2012.

Consolidated gross margin decreased slightly to 26.1% in 2012 compared with
26.5% in 2011. The decrease in margin was a result of leverage that was
achieved from increased sales volumes offset by increased E&D costs and higher
inventory and warranty reserves. E&D costs were $44.9 million in 2012 compared
with $36.1 million in 2011, an increase of $8.8 million. The Company expects
consolidated E&D expenses for 2013 to be in the range of $42 million to $46
million. Warranty and inventory reserve expense was up $2.3 million in 2012
compared with 2011.

SG&A expenses in 2012 were approximately $36.8 million, or 13.8% of sales,
compared with $27.2 million, or 11.9% of sales in the prior year. The increase
of $9.6 million was due primarily to acquisitions, which added $6.1 million to
SG&A in 2012. Also contributing to the increase were higher legal and
compensation costs.

Aerospace Segment Review  (refer to sales by market and segment data in
accompanying tables)

In the fourth quarter of 2012, sales to the Commercial Transport market
increased primarily on higher demand for Cabin Electronics products as well as
growth in sales of Airframe Power and Avionics. Military sales were down when
compared with the prior year’s fourth quarter as increased Avionics sales were
more than offset by lower Aircraft Lighting and Airframe Power sales to this
market. Sales to the Business Jet market were up when compared with the prior
year’s fourth quarter as higher Aircraft Lighting sales and the addition of
enhanced vision systems in the Avionics product line were partially offset by
a decrease in Airframe Power sales to this market.

Aerospace operating profit for the fourth quarter of 2012 was $10.8 million,
or 16.6% of sales, compared with $12.2 million, or 20.9% of sales, in the same
period the prior year. The decline in operating profit was due to leverage
from higher sales volume being offset by increased E&D costs, compensation
costs, legal costs and warranty and inventory reserve adjustments.

Full year Aerospace sales for 2012 increased by $41.1 million, or 19.2%, to
$255.0 million from $213.9 million in 2011. Organic Aerospace sales increased
$26.2 million while acquisitions added $14.9 million. Sales growth was
primarily driven by increased sales of Cabin Electronics products sold to the
Commercial Transport market as well as the addition of acquired Avionics
products. Military sales were up slightly due primarily to the addition of
Avionics being offset by lower Aircraft Lighting and Airframe Power sales.
Sales to the Business Jet market were higher, due primarily to Avionics and
increased volume of Aircraft Lighting products somewhat offset by lower
Airframe Power sales. Sales remained flat to the FAA/Airport market.

Aerospace operating profit for the full year of 2012 was $44.1 million, or
17.3% of sales, compared with $40.4 million, or 18.9% of sales, in the same
period the prior year. The increase in operating profit was due to leverage
from the increased sales volume offset by increased E&D, compensation, legal
costs as well as increases to warranty and inventory reserves.

Test Systems Segment Review  (refer to sales by market and segment data in
accompanying tables)

Sales in the 2012 fourth quarter decreased slightly by $0.2 million to $2.7
million when compared with sales of $2.9 million for the same period in 2011.
Sales for the full year of 2012 decreased $2.8 million to $11.5 million when
compared with sales of $14.3 million for the same period in 2011.

Test Systems operating loss was $1.5 million and $5.0 million for the fourth
quarter and full year of 2012, compared with losses of $3.4 million and $4.8
million for the fourth quarter and 2011 full year, respectively. The 2011
operating loss included a non-cash pre-tax charge of $2.5 million for
impairment of goodwill and intangible assets.

Balance Sheet

Cash at the end of 2012 was $7.4 million compared with $10.9 million at
December 31, 2011. Year-to-date cash provided by operating activities was
approximately $24.2 million. Cash used for acquisitions was $10.7 million and
capital expenditures were $16.7 million, of which approximately $12.0 million
was related to the build out of a new facility in Kirkland, Washington. Net
cash used to reduce long-term debt was $3.3 million during the year.

The Company expects capital spending in 2013 to be approximately $5 million to
$10 million.

Outlook

On December 31, 2012, backlog was $114.5 million, down from backlog of $115.6
million at the end of the trailing third quarter of 2012 and improved over
backlog of $106.3 million at the end of the fourth quarter of 2011.
Approximately $100 million of this backlog is expected to ship in 2013.

Mr. Gundermann concluded, “We expect the positive trends that supported us
through 2012 to continue in 2013. We believe that commercial airlines will
continue the trend of providing electrical power to their customers and that
the business jet industry will continue to value our advanced electrical,
avionics, and lighting solutions. We expect that our positions on premier
military programs will continue to serve us well in 2013, though the funding
environment may be challenging. We expect 2013 will be another strong year for
Astronics Corporation.”

The Company expects 2013 revenue to be in the range of $275 million to $310
million. Astronics anticipates that approximately $265 million to $300 million
of forecasted 2013 revenue will be from its Aerospace segment, while
approximately $10 million of the forecasted revenue will be from its Test
Systems segment.

Fourth Quarter and Full Year 2012 Webcast and Conference Call

The Company will host a teleconference at 11:00 AM ET on Tuesday, February 5,
2013. During the teleconference, Peter J. Gundermann, President and CEO, and
David C. Burney, Executive Vice President and CFO, will review the financial
and operating results for the period and discuss Astronics’ corporate strategy
and outlook. A question-and-answer session will follow.

The Astronics conference call can be accessed by calling (201) 689-8562. The
listen-only audio webcast can be monitored at www.astronics.com. To listen to
the archived call, dial (858) 384-5517 and enter conference ID number 406938.
The telephonic replay will be available from 2:00 p.m. on the day of the call
through Tuesday, February 12, 2013. A transcript will also be posted to the
Company’s Web site, once available.

About Astronics Corporation

Astronics Corporation is a leader in advanced, high-performance lighting,
electrical power and automated test systems for the global aerospace and
defense industries. Astronics’ strategy is to develop and maintain positions
of technical leadership in its chosen aerospace and defense markets, to
leverage those positions to grow the amount of content and volume of product
it sells to those markets and to selectively acquire businesses with similar
technical capabilities that could benefit from our leadership position and
strategic direction. Astronics Corporation, and its wholly-owned subsidiaries,
Astronics Advanced Electronic Systems Corp., Ballard Technology, Inc., DME
Corporation, Luminescent Systems Inc. and Max-Viz, Inc., have a reputation for
high-quality designs, exceptional responsiveness, strong brand recognition and
best-in-class manufacturing practices. The Company routinely posts news and
other important information on its Web site at www.astronics.com.

For more information on Astronics and its products, visit its Web site at
www.astronics.com.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the
Securities Exchange Act of 1934. One can identify these forward-looking
statements by the use of the words “expect,” “anticipate,” “plan,” “may,”
“will,” “estimate” or other similar expressions. Because such statements apply
to future events, they are subject to risks and uncertainties that could cause
actual results to differ materially from those contemplated by the statements.
Important factors that could cause actual results to differ materially include
the state of the aerospace and defense industries, the market acceptance of
newly developed products, internal production capabilities, the timing of
orders received, the status of customer certification processes, the demand
for and market acceptance of new or existing aircraft which contain the
Company’s products, customer preferences, and other factors which are
described in filings by Astronics with the Securities and Exchange Commission.
The Company assumes no obligation to update forward-looking information in
this news release whether to reflect changed assumptions, the occurrence of
unanticipated events or changes in future operating results, financial
conditions or prospects, or otherwise.

                                              
ASTRONICS CORPORATION

CONSOLIDATED INCOME STATEMENT DATA

(Unaudited, $ in thousands except per share data)
                                                   
                  Three Months Ended              Twelve Months Ended
                    12/31/2012   12/31/2011      12/31/2012   12/31/2011
Sales              $ 67,420      $ 61,156         $ 266,446     $ 228,163
Cost of             49,869       43,807          197,004      167,667
products sold
Gross profit         17,551         17,349           69,442         60,496
Gross margin         26.0%          28.4%            26.1%          26.5%
                                                                  
Impairment           -              2,500            -              2,500
Loss
Selling,
general and          9,622          7,326            36,817         27,175
administrative
SG&A % of           14.3%        12.0%           13.8%        11.9%
Sales
Income from          7,929          7,523            32,625         30,821
operations
Operating            11.8%          12.3%            12.2%          13.5%
margin
                                                                  
Interest            239          345             1,042        1,806
expense, net
Income before        7,690          7,178            31,583         29,015
tax
Income tax          2,035        2,009           9,709        7,424
expense
Net Income         $ 5,655       $ 5,169          $ 21,874      $ 21,591
Net income %         8.4%           8.5%             8.2%           9.5%
of Sales
                                                                  
                                                                  
*Basic
earnings per       $ 0.39         $ 0.36           $ 1.53         $ 1.55
share
*Diluted
earnings per       $ 0.37         $ 0.34           $ 1.45         $ 1.45
share
                                                                  
*Weighted
average
diluted shares       15,212         15,014           15,131         14,848
outstanding
(in thousands)
                                                                  
Capital            $ 6,150        $ 1,406          $ 16,720       $ 14,281
Expenditures
Depreciation
and                $ 1,950        $ 1,351          $ 6,905        $ 4,943
Amortization
                                                                    

*All share quantities and per share data reported has been restated to reflect
the impact of the three-for-twenty Class B stock distribution to shareholders
of record on October 29, 2012.


ASTRONICS CORPORATION

CONSOLIDATED BALANCE SHEET DATA

(in thousands)

                                              12/31/2012   12/31/2011
                                               (Unaudited)  
ASSETS
Cash and cash equivalents                      $ 7,380        $ 10,919
Accounts receivable                              45,473         35,669
Inventories                                      48,624         40,094
Other current assets                             6,533          5,628
Property, plant and equipment, net               53,537         41,122
Deferred taxes long-term                         9,019          7,039
Other long-term assets                           2,977          3,249
Intangible assets, net                           16,523         14,000
Goodwill                                        21,923       17,185
Total Assets                                   $ 211,989     $ 174,905
                                                              
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long term debt           $ 9,268        $ 5,290
Accounts payable and accrued expenses            38,700         28,187
Long-term debt                                   20,715         27,973
Other liabilities                                18,172         10,592
Shareholders' equity                            125,134      102,863
Total Liabilities and Shareholders' Equity     $ 211,989     $ 174,905
                                                                

                                              
ASTRONICS CORPORATION

SEGMENT DATA

(Unaudited, $ in thousands)
                                                   
                   Three Months Ended              Twelve Months Ended
                    12/31/2012   12/31/2011      12/31/2012   12/31/2011
Sales                                                          
Aerospace          $ 64,743       $ 58,224         $ 254,955      $ 213,874
Test Systems        2,677        2,932           11,491       14,289
Total Sales         67,420       61,156          266,446      228,163
                                                                  
Operating
Profit and
Margins
Aerospace            10,778         12,177           44,137         40,400
                     16.6%          20.9%            17.3%          18.9%
Test Systems         (1,460)        (3,400)          (4,985)        (4,760)
                    (54.5)%      (116.0)%        (43.4)%      (33.3)%
Total
Operating            9,318          8,777            39,152         35,640
Profit
                     13.8%          14.4%            14.7%          15.6%
                                                                  
Interest             239            345              1,042          1,806
Expense
Corporate
Expenses and        1,389        1,254           6,527        4,819
Other
Income Before      $ 7,690       $ 7,178          $ 31,583      $ 29,015
Taxes
Income Before
Taxes % of           11.4%          11.7%            11.9%          12.7%
Sales


ASTRONICS CORPORATION

SALES BY MARKET

(Unaudited, $ in thousands)

              Three Months Ended                     Twelve Months Ended                     2012
                 12/31/2012   12/31/2011  %           12/31/2012   12/31/2011  %           YTD %
                                              change                                   change
Aerospace                                                                         
Segment
Commercial      $ 45,884       $ 40,881       12.2%      $ 179,104      $ 143,337      25.0%       67.3%
Transport
Military          8,697          9,478        -8.2%        36,511         35,394       3.2%        13.7%
Business          7,607          5,557        36.9%        29,379         25,983       13.1%       11.0%
Jet
FAA/Airport      2,555        2,308       10.7%       9,961        9,160       8.7%        3.7%
Aerospace         64,743         58,224       11.2%        254,955        213,874      19.2%       95.7%
Total
                                                                                                   
Test
Systems
Segment
Military         2,677        2,932       (8.7)%      11,491       14,289      (19.6)%     4.3%
                                                                                                   
Total           $ 67,420      $ 61,156      10.2%      $ 266,446     $ 228,163     16.8%       100.0%



ASTRONICS CORPORATION

SALES BY PRODUCT

(Unaudited, $ in thousands)

              Three Months Ended                      Twelve Months Ended                    2012
                 12/31/2012   12/31/2011  %            12/31/2012   12/31/2011  %         YTD %
                                              change                                    change
                                                                                   
Aerospace
Segment
Cabin           $ 37,402       $ 33,186       12.7%       $ 141,458      $ 114,540      23.5%     53.3%
Electronics
Aircraft          15,076         16,997       (11.3)%       69,597         69,653       (0.1)%    26.2%
Lighting
Airframe          4,601          5,321        (13.5)%       18,678         20,109       (7.1)%    7.0%
Power
Avionics          5,109          412          1140.0%       15,261         412          3604.1%   5.6%
Airfield         2,555        2,308       10.7%        9,961        9,160       8.7%      3.6%
Lighting
Aerospace         64,743         58,224       11.2%         254,955        213,874      19.2%     95.7%
Total
                                                                                                  
Test
Systems          2,677        2,932       (8.7)%       11,491       14,289      (19.6)%   4.3%
Segment
                                                                                                  
Total           $ 67,420      $ 61,156      10.2%       $ 266,446     $ 228,163     16.8%     100%
                                                                                                  

                                                                
ASTRONICS CORPORATION

ORDER AND BACKLOG TREND

(Unaudited, $ in thousands)
                                                                         
                Q1            Q2            Q3            Q4             Twelve
               2012        2012        2012        2012         Months
                3/31/2012     6/30/2012     9/29/2012     12/31/2012     12/31/2012
Sales
Aerospace     $ 62,001      $ 62,423      $ 65,788      $ 64,743       $ 254,955
Test           3,137       2,566       3,111       2,677        11,491
Systems
Total         $ 65,138     $ 64,989     $ 68,899     $ 67,420      $ 266,446
Sales
                                                                         
Bookings
Aerospace     $ 58,567      $ 75,654      $ 64,674      $ 65,611       $ 264,506
Test           2,272       1,526       2,144       705          6,647
Systems
Total         $ 60,839     $ 77,180     $ 66,818     $ 66,316      $ 271,153
Bookings
                                                                         
Backlog*
Aerospace     $ 94,468      $ 107,699     $ 110,045     $ 110,915        N/A
Test           7,544       6,504       5,537       3,565        N/A
Systems
Total         $ 102,012    $ 114,203    $ 115,582    $ 114,480      N/A
Backlog
                                                                         
Book:Bill
Ratio
Aerospace       0.94          1.21          0.98          1.01           1.04
Test           0.72        0.59        0.69        0.26         0.58
Systems
Total          0.93        1.19        0.97        0.98         1.02
Book:Bill
                                                                         

*On July 30, 2012, Astronics Corporation acquired Max-Viz, Inc. which included
a backlog of approximately $3.5 million for the Aerospace segment. Max-Viz
sales for 2012 were $2.7 million.

Contact:

Company:
Astronics Corporation
David C. Burney, 716-805-1599, ext. 159
Chief Financial Officer
david.burney@astronics.com
or
Investor Relations:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com