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Astronics Corporation Reports 13.6% Increase in First Quarter 2013 Sales



Astronics Corporation Reports 13.6% Increase in First Quarter 2013 Sales

  o Achieves record quarter in sales, bookings, backlog, gross profit,
    operating profit and net income
  o Record quarterly sales of $74 million, up 13.6% from 2012 first quarter
  o Record quarterly diluted earnings per share of $0.56, up from $0.40 from
    2012 first quarter; including $0.07 per share related to 2012 R&D tax
    credits
  o 2013 revenue expectation narrowed to a range of $280 million to $310
    million

EAST AURORA, N.Y., May 6, 2013 (GLOBE NEWSWIRE) -- Astronics Corporation
(Nasdaq:ATRO), a leading provider of advanced technologies for the global
aerospace and defense industries, today reported financial results for the
three months ended March 30, 2013.

                        Three Months Ended
                        March 30,  March 31,  %
                        2013       2012       Change
                                               
Sales                   $ 73,967   $ 65,138   13.6%
Gross profit            $ 20,219   $ 18,120   11.6%
Gross profit percentage 27.3%      27.8%       
SG&A                    $ 9,157    $ 8,855    3.4%
SG&A percent to sales   12.4%      13.6%       
Income from Operations  $ 11,062   $ 9,265    19.4%
Operating margin %      15.0%      14.2%       
Net Income              $ 8,564    $ 6,095    40.5%
Net Income %            11.6%      9.4%        

Peter J. Gundermann, President and Chief Executive Officer, commented, "We
started 2013 strong while setting many new records.  Sales were strong across
the majority of our markets and product lines. We believe our results
demonstrate the value our customers place on our innovation and responsiveness
and the growing opportunities for our products."

Consolidated First Quarter Review

Consolidated sales for the first quarter of 2013 increased by $8.9 million, or
13.6%, to $74.0 million compared with $65.1 million for the same period last
year. Aerospace segment sales increased by $9.7 million, while Test Systems
segment sales decreased by $0.8 million.

Consolidated gross margin decreased to 27.3% in the first quarter of 2013
compared with 27.8% in the first quarter of 2012. The lower gross margin was a
result of increased engineering and development ("E&D") costs offset by the
leverage achieved from higher sales and lower inventory reserve and warranty
expense when compared with the 2012 first quarter. E&D costs were $12.8
million in the first quarter of 2013 compared with $10.0 million in the same
period of 2012, an increase of $2.8 million.  Astronics expects full year
consolidated E&D expenses for 2013 to be in the range of $48 million to $53
million, up from previous expectations of $42 million to $46 million as
additional project opportunities have developed.  Warranty expense and
inventory reserves were down $0.9 million compared with the 2012 first
quarter.

Selling, general and administrative ("SG&A") expenses were approximately $9.2
million, or 12.4% of sales, in the first quarter of 2013 compared with $8.9
million, or 13.6% of sales, in the same period last year.  Increased SG&A from
Max-Viz, acquired in July of 2012, which added $0.6 million to SG&A compared
with last year, was partially offset by lower legal costs in the quarter. 

The effective tax rate for the three-month period ended March 30, 2013 was
21.0%, lower than the U.S. federal statutory tax rate due primarily to the
domestic production activity deduction as well as the recognition in the
quarter of approximately $1.1 million of 2012 R&D tax credits and 2013 first
quarter R&D tax credits of $0.2 million.

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

In the 2013 first quarter, sales to the Commercial Transport market increased
primarily on higher demand for cabin electronics products reflecting continued
strong global demand for passenger power systems. Increased sales of aircraft
lighting and avionics products also contributed to the increase in sales to
this market. Military sales were down slightly when compared with the prior
year's first quarter as increases in avionics sales were more than offset by
lower airframe power sales to this market. Sales to the Business Jet market
were up when compared with last year's first quarter as avionics sales and
airframe power sales both increased.  The increase in first quarter
FAA/Airport sales was due to higher demand from the FAA during the quarter.

Aerospace operating profit for the first quarter of 2013 was $14.3 million, or
19.9% of sales, compared with $11.9 million, or 19.2% of sales, in the same
period last year. The increase in the operating profit was due to leverage
from higher sales, lower inventory reserve and warranty expenses and legal
costs, partially offset by increased E&D costs.  

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

Test Systems sales to the military in the 2013 first quarter decreased
slightly by $0.8 million to $2.3 million when compared with sales of $3.1
million for the same period in 2012. 

Test Systems operating loss was $1.5 million for the first quarter compared
with a loss of $1.1 million for the first quarter of 2012. 

During the quarter, the Company took actions in its Test business that are
expected to reduce operating costs by approximately $1.5 million over the
remainder of 2013 and approximately $2.0 million in 2014.

Balance Sheet

Cash at the end of the first quarter of 2013 was $17.8 million compared with
$7.4 million at December 31, 2012.  Cash provided by operating activities in
the first quarter of 2013 was approximately $14.3 million.  Capital
expenditures were $1.8 million in the first quarter of 2013. The Company also
paid down $2.0 million of long-term debt during the quarter.

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

Outlook

On March 31, 2013, backlog was a record $119.0 million, improved from $114.5
million at the end of the trailing fourth quarter of 2012 and $102.0 million
at the end of the first quarter of 2012. Approximately $99.4 million of this
backlog is expected to ship in 2013. 

Mr. Gundermann concluded, "Our strong results in the first quarter give us a
great start to the year. We are optimistic that we can achieve the high end of
our forecasted revenue range and expect to update our expectations at the end
of the second quarter once we have greater visibility into the remainder of
the year."

The Company expects 2013 revenue to be in the range of $280 million to $310
million. Astronics anticipates that approximately $270 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. 

First Quarter 2013 Webcast and Conference Call

The Company will host a teleconference today at 11:00 AM ET. 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 412395.
The telephonic replay will be available from 2:00 p.m. on the day of the call
through Monday, May 13, 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.

FINANCIAL TABLES FOLLOW

ASTRONICS CORPORATION
CONSOLIDATED INCOME STATEMENT DATA
(Unaudited, $ in thousands except per share data)
 
                                                           Three Months Ended
                                                           3/30/2013 3/31/2012
Sales                                                      $ 73,967  $  65,138
Cost of products sold                                      53,748    47,018
Gross profit                                               20,219    18,120
Gross margin                                               27.3%     27.8%
                                                                      
Selling, general and administrative                        9,157     8,855
SG&A % of Sales                                            12.4%     13.6%
Income from operations                                     11,062    9,265
Operating margin                                           15.0%     14.2%
                                                                      
Interest expense, net                                      218       263
Income before tax                                          10,844    9,002
Income tax expense                                         2,280     2,907
Net Income                                                 $ 8,564   $ 6,095
Net income % of Sales                                      11.6%     9.4%
                                                                      
                                                                      
*Basic earnings per share                                  $ 0.59    $ 0.43
*Diluted earnings per share                                $ 0.56    $ 0.40
                                                                      
*Weighted average diluted shares outstanding (in           15,176    15,081
thousands)
                                                                      
Capital Expenditures                                       $  1,828   $ 1,665
Depreciation and Amortization                              $  1,749  $ 1,447

*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)
                                           3/30/2013     12/31/2012
                                           (Unaudited)  
ASSETS                                                  
Cash and cash equivalents                  $ 17,798    $ 7,380
Accounts receivable                        39,421      45,473
Inventories                                49,649      48,624
Other current assets                       5,614       6,533
Property, plant and equipment, net         54,125      53,537
Deferred taxes long-term                   8,929       9,019
Other long-term assets                     3,396       2,977
Intangible assets, net                     16,056      16,523
Goodwill                                   21,850      21,923
Total Assets                               $  216,838  $ 211,989
                                                        
LIABILITIES AND SHAREHOLDERS' EQUITY                    
Current maturities of long term debt       $ 12,260    $ 9,268
Accounts payable and accrued expenses      36,775      38,700
Long-term debt                             15,672      20,715
Other liabilities                          17,989      18,172
Shareholders' equity                       134,142     125,134
Total Liabilities and Shareholders' Equity $ 216,838   $ 211,989

 
 
ASTRONICS CORPORATION
SEGMENT DATA
(Unaudited, $ in thousands)
 
                               Three Months Ended
                               03/30/2013 03/31/2012
Sales                                      
Aerospace                      $ 71,669    $  62,001
                                           
Test Systems                   2,390      3,137
Less Intersegment Sales        (92)       --
Test Systems Sales - Net       2,298      3,137
                                           
Total Consolidated Sales       $ 73,967   $ 65,138
                                           
Operating Profit and Margins               
Aerospace                      $ 14,288   $ 11,878
                               19.9%       19.2%
Test Systems                   (1,525)    (1,075)
                               (66.4)%     (34.3)%
Total Operating Profit         12,763     10,803
                               17.3%      16.6%
                                           
Interest Expense               218        263
Corporate Expenses and Other   1,701      1,538
Income Before Taxes            $10,844    $ 9,002
Income Before Taxes % of Sales 14.7%      13.8%

 
 
ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
                                                    
                     Three Months Ended             
                     3/30/2013 3/31/2012  $ change % change 2013 YTD %
Aerospace Segment                                            
Commercial Transport $ 50,963  $ 44,108 $  6,855   15.5%    68.9%
Military             8,615     8,918    (303)      (3.4)%   11.7%
Business Jet         8,665     6,654    2,011      30.2%    11.7%
FAA/Airport          3,426     2,321    1,105      47.6%    4.6%
Aerospace Total      71,669    62,001   9,668      15.6%    96.9%
                                                             
Test Systems Segment                                         
Military             2,298     3,137    (839)      (26.7)%  3.1%
                                                             
Total                $ 73,967  $ 65,138 $ 8,829    13.6%    100%

 
 
ASTRONICS CORPORATION
SALES BY PRODUCT
(Unaudited, $ in thousands)
 
                     Three Months Ended                       
                     3/30/2013 3/31/2012 $ change  % change  2013 YTD %
                                                              
Aerospace Segment                                             
Cabin Electronics    $ 40,428  $ 35,039  $ 5,389  15.4%      54.7%
Aircraft Lighting    18,117    16,987    1,130    6.7%       24.5%
Avionics             5,330     3,125     2,205    70.6%      7.2%
Airframe Power       4,368     4,529     (161)    (3.6)%     5.9%
Airfield Lighting    3,426     2,321     1,105    47.5%      4.6%
Aerospace Total      71,669    62,001    9,668    15.6%      96.9%
                                                              
Test Systems Segment 2,298     3,137     (839)    (26.7)%    3.1%
                                                              
Total                $ 73,967  $ 65,138  $ 8,829  13.6%      100%

 
 
ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)
 
                Q2        Q3        Q4         Q1        Trailing
                2012      2012      2012       2013      Twelve 
                6/30/2012 9/29/2012 12/31/2012 3/30/2013 Months
                                                         3/30/2013
Sales                                                     
Aerospace       $ 62,423  $ 65,788  $ 64,743   $ 71,669  $ 264,623
Test Systems    2,566     3,111     2,677      2,298     10,652
Total Sales     $ 64,989  $ 68,899  $ 67,420   $ 73,967  $ 275,275
                                                          
Bookings                                                  
Aerospace       $ 75,654  $ 64,674  $ 65,611   $ 75,390  $ 281,329
Test Systems    1,526     2,144     705        3,092     7,467
Total Bookings  $ 77,180  $ 66,818  $ 66,316   $ 78,482  $ 288,796
                                                          
Backlog*                                                  
Aerospace       $ 107,699 $ 110,045 $ 110,915  $ 114,636 N/A
Test Systems    6,504     5,537     3,565      4,359     N/A
Total Backlog   $ 114,203 $ 115,582 $ 114,480  $ 118,995 N/A
                                                          
Book:Bill Ratio                                           
Aerospace       1.21      0.98      1.01       1.05      1.06
Test Systems    0.59      0.69      0.26       1.35      0.70
Total Book:Bill 1.19      0.97      0.98       1.06      1.05

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

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

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