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Astronics Corporation Reports 2013 Second Quarter Sales of $70.8 Million

Astronics Corporation Reports 2013 Second Quarter Sales of $70.8 Million

  oSales increased 9% in the quarter; Diluted earnings per share were $0.34
  oResults included $900 thousand of acquisition-related expenses
  o2013 revenue guidance increased to $325 million to $340 million, including
    the July 2013 acquisition of Peco, Inc.

EAST AURORA, N.Y., July 31, 2013 (GLOBE NEWSWIRE) -- Astronics Corporation
(Nasdaq:ATRO), a leader in advanced, high-performance lighting, electrical
power and automated test systems for the global aerospace and defense
industries, today reported financial results for the three and six months
ended June 29, 2013.

                      Three Months Ended         Six Months Ended
                      June 29, June 30, %      June 29, June 30, %
                       2013      2012      Change 2013      2012      Change
                                                                
Sales                  $ 70,833  $ 64,989  9.0%   $ 144,800 $130,127  11.3%
Gross profit           $ 18,681  $ 17,054  9.5%   $ 38,900  $ 35,174  10.6%
Gross margin          26.4%     26.2%           26.9%     27.0%     
SG&A                   $ 10,701  $ 9,278   15.3%  $19,858   $ 18,133  9.5%
SG&A percent to sales 15.1%     14.3%           13.7%     13.9%     
Income from Operations $ 7,980   $ 7,776   2.6%   $ 19,042  $ 17,041  11.7%
Operating margin %    11.3%     12.0%           13.2%     13.1%     
Net Income             $ 5,158   $ 5,194   (0.7)% $ 13,722  $ 11,289  21.6%
Net Income %          7.3%      8.0%            9.5%      8.7%      

Peter J. Gundermann, President and Chief Executive Officer, commented,
"Operationally, we had solid results in the second quarter. Shipments were
strong at $70.8 million, our second highest quarterly total in our history.
And, we achieved net income of $5.2 million, even after incurring significant
expenses related to acquisitions and financing.We had healthy bookings in the
quarter of over $66 million. Our markets remain robust, and we continue to see
strong demand for our products."

Mr. Gundermann continued, "Although we closed our Peco acquisition on July 18
after our second quarter ended, results for the second quarter included about
$900,000 of expenses related to the acquisition and its financing.We expect
the positive aspects of the acquisition will begin to become apparent in our
third quarter results."

Consolidated Review

Sales in the second quarter of 2013 were $70.8 million, up $5.8 million, or
9.0%, from the prior year period. Aerospace sales, which represented 97.0% of
total second quarter sales, increased 10.0%, or $6.3 million, over the prior
year period to $68.7 million. Test Systems sales decreased
$0.4 million to $2.2 million for the second quarter 2013 compared with last
year's second quarter.

Year-to-date sales in 2013 were $144.8 million, up $14.7 million, or 11.3%,
from the prior year-to-date sales of $130.1 million. Aerospace sales of $140.3
million increased 12.8% over the prior year-to-date period to $124.4 million.
Test Systems year-to-date sales decreased $1.2 million to
$4.5 million compared with the prior-year period.

Consolidated operating margin in the 2013 second quarter was 11.3% compared
with 12.0% in the prior-year period. Excluding costs associated with the Peco
acquisition and financing, consolidated operating margin for the 2013 second
quarter was 12.5%. Year-to-date consolidated operating margin was 13.2%
compared with 13.1% in the prior year period.

Year-to-date and second quarter increases in engineering and development (E&D)
costs, which are included in cost of products sold, offset leverage gained
from increased aerospace sales. E&D costs were $13.3 million and $26.1 million
in the 2013 second quarter and year-to-date periods, respectively, compared
with $11.1 million and $21.1 million in the 2012 second quarter and
year-to-date periods, respectively. E&D spending for 2013 is expected to be in
the range of $53 million to $56 million, including $1 million to $2 million
from the addition of Peco, Inc.Excluding Peco, expected E&D spending is up $2
million to $4 million from previous expectations, as a result of increased
opportunities for product design and development for customers and additional
requirements with ongoing projects.

Consolidated selling, general and administrative expenses ("SG&A") in the 2013
second quarter were $10.7 million, up $1.4 million when compared with $9.3
million in the prior year's second quarter. The increase was due primarily to
higher legal and professional expenses related to acquisition and related
financing activity that added approximately $0.9 million in the second quarter
of 2013. Additionally, the incremental SG&A costs of Max-Viz, acquired in July
of 2012, added $0.6 million compared with the second quarter of 2012. SG&A
expenses for the first six months of 2013 were approximately $19.9 million, or
13.7% of sales, compared with $18.1 million, or 13.9% of sales, in the same
period last year. The increase was due primarily to the acquisition of
Max-Viz, which incrementally added $1.2 million to SG&A in the first half of
2013, and $1.0 million in legal and professional expenses related to
acquisition and related financing activity when compared with the prior year.

Net income in the second quarter of 2013 was $5.2 million, or $0.34 per
diluted share, unchanged from the same period of last year. Year-to-date net
income in 2013 was $13.7 million, or $0.90 per diluted share, compared with
net income of $11.3 million, or $0.75 per diluted share, in the same period of
last year. Earnings per share for the second quarter and year-to-date periods
of 2012 have been restated to reflect the impact of the three-for-twenty Class
B stock distribution to shareholders of record on October 29, 2012.

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

Sales in the second quarter to the Commercial Transport market increased due
to higher sales of cabin electronics products as global demand for passenger
power systems continued to be strong.Military sales were up when compared
with the prior year's second quarter as volume increased in airframe power,
avionics and aircraft lighting sales to this market.Sales to the Business Jet
market were down when compared with last year's second quarter as higher
avionics sales due to the addition of Max-Viz's enhanced vision systems
products were more than offset by lower aircraft lighting and airframe power
sales to this market. The increase in second quarter FAA/Airport sales was due
to increased volume from the FAA during the quarter.

In the first six months of 2013, sales to the Commercial Transport market
increased primarily on higher demand for Cabin Electronics products, as well
as increased sales of aircraft lighting. Military sales in the first six
months were up compared with last year primarily as a result of higher sales
of avionics, aircraft lighting and airframe power products. Sales to the
Business Jet market were up slightly when compared with the first six months
of last year as avionics products sales increased due to the addition of
Max-Viz. This was partially offset by lower aircraft lighting and airframe
power sales. FAA/Airport sales in the first six months were higher as compared
with last year from increased volume.

Aerospace operating profit for the second quarter of 2013 was $11.4 million,
or 16.7% of sales, compared with $10.9 million, or 17.5% of sales, in the same
period last year.Leverage from higher sales was offset by increased E&D and
compensation costs.Higher SG&A expense reflects incremental SG&A of $0.6
million in the quarter from Max-Viz which was acquired in July 2012.

Year-to-date 2013 Aerospace operating profit was $25.7 million, or 18.3% of
sales, compared with $22.8 million, or 18.3% of sales, in the same period last
year. The increase in the operating profit was due to leverage from the
increased sales volume partially offset by increased E&D costs and increased
legal and compensation costs. Higher SG&A expense was primarily due to the
July 2012 acquisition of Max-Viz, which incrementally added $1.2 million to
SG&A in the first six months of 2013.

Bookings during the second quarter and first half of 2013 were $65.7 million
and $141.1 million, respectively, compared with bookings of $75.7 million and
$134.2 million in the second quarter and year-to-date periods of 2012,
respectively.Backlog at the end of the second quarter was $111.7 million.

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

Sales in the 2013 second quarter decreased to $2.2 million when compared with
$2.6 million for the same period in 2012. Year-to-date sales in 2013 decreased
to $4.5 million when compared with $5.7 million for the same period in 2012. 

Test Systems operating loss for the second quarter of 2013 was $0.6 million
compared with a loss of $1.3 million in the same period last year. The
year-to-date operating loss was $2.1 million compared with a loss of $2.4
million in the same period last year.

Bookings during the second quarter and year-to-date periods were $0.6 million
and $3.7 million, respectively.Backlog at the end of the second quarter was
$2.8 million.

Balance Sheet

Capital expenditures during the second quarter and first half of 2013 were
$1.8 million and $3.7 million, respectively, compared with $2.8 million and
$4.5 million for the same periods in 2012, respectively. The Company expects
capital spending in 2013 to be approximately $5 million to
$10 million.

In July, the Company amended its credit facility to fund the acquisition of
Peco and pay off the drawn balances on its line of credit, Senior term note
and Canadian note payable. The amendment included a new $190 million term note
with principal payments due quarterly through 2018. Scheduled principal
payments on this term note due in each of the next five calendar years is:
$4.8 million, $9.5 million, $11.9 million, $16.6 million, $19.0 million and
$128.2 million in each year from 2013 through 2018, respectively.The Company
expects initially its interest expense will increase to about $1.9 million per
quarter due to the higher debt level and increased interest rates.

Outlook

On June 29, 2013, Astronics backlog was $114.5 million, excluding Peco. Peco,
acquired in July 2013, had backlog at the acquisition date of approximately
$40.0 million. Including Peco, approximately $116.6 million of this backlog
is expected to ship by the end of 2013 and $136.6 million is expected to ship
over the next four quarters.

The Company expects 2013 revenue to be in the range of $325 million to $340
million.Astronics anticipates that approximately $315 million to $330 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.

Mr. Gundermann concluded, "We anticipate a strong second half of the year such
that our base business will finish 2013 with revenue of $290 to $300 million,
and we expect Peco to contribute an additional $35 to $40 million. Peco's
impact to our bottom line in the coming quarters is hard to predict as we have
not yet completed the required purchase accounting, but we expect the business
to produce margins, excluding amortization expense, similar to our existing
aerospace business."

Second Quarter and Year to Date 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 418102.
The telephonic replay will be available from 2:00 p.m. on the day of the call
through Wednesday, August 7, 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        Six Months Ended

                          6/29/2013    6/30/2012    6/29/2013    6/30/2012
Sales                      $70,833     $64,989     $144,800    $130,127
Cost of products sold      52,152       47,935       105,900      94,953
Gross profit               18,681       17,054       38,900       35,174
Gross margin               26.4%        26.2%        26.9%        27.0%
                                                              
Selling, general and       10,701       9,278        19,858       18,133
administrative
SG&A % of Sales            15.1%        14.3%        13.7%        13.9%
Income from operations     7,980        7,776        19,042       17,041
Operating margin           11.3%        12.0%        13.2%        13.1%
                                                              
Interest expense, net      262          266          480          529
Income before tax          7,718        7,510        18,562       16,512
Income tax expense         2,560        2,316        4,840        5,223
Net Income                 $5,158      $5,194      $13,722     $11,289
Net income % of Sales      7.3%         8.0%         9.5%         8.7%
                                                              
                                                              
*Basicearnings per share: $0.36       $0.36       $0.95       $0.79
*Diluted earnings per      $0.34       $0.34       $0.90       $0.75
share:
                                                              
*Weighted average diluted
shares outstanding (in     15,172       15,109       15,174       15,136
thousands)
                                                              
Capital Expenditures       $1,843      $2,831      $3,671      $4,496
Depreciation and           $1,721      $1,384      $3,470      $2,831
Amortization

*All share quantities and per share data reported for 2012 have been restated
to reflect the impact of the three-for-twenty Class B stock distribution to
shareholders of record on October 29, 2013.



ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
                                          6/29/2013   12/31/2012
                                          (Unaudited) 
ASSETS                                                
Cash and cash equivalents                  $16,535    $7,380
Accounts receivable                        42,819      45,473
Inventories                                53,108      48,624
Other current assets                       6,068       6,533
Property, plant and equipment, net         54,741      53,537
Deferred taxes long-term                   8,635       9,019
Other long-term assets                     3,162       2,977
Intangible assets, net                     15,588      16,523
Goodwill                                   21,781      21,923
Total Assets                               $222,437   $211,989
                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Current maturities of long term debt       $10,254    $9,268
Accounts payable and accrued expenses      39,295      38,700
Long-term debt                             15,221      20,715
Other liabilities                          18,010      18,172
Shareholders' equity                       139,657     125,134
Total Liabilities and Shareholders' Equity $222,437   $211,989



ASTRONICS CORPORATION
SEGMENT DATA
(Unaudited, $ in thousands)

                             Three Months Ended  Six Months Ended
                             6/29/2013 6/30/2012 6/29/2013 6/30/2012
Sales                                                    
Aerospace                     $68,676  $62,423  $140,345 $124,424
Test Systems                  2,157     2,566     4,547     5,703
Less Inter-segment            --        --        (92)      --
Total Sales                   70,833    64,989    144,800   130,127
                                                        
Operating Profitand Margins                             
Aerospace                     11,447    10,903    25,735    22,781
                             16.7%     17.5%     18.3%     18.3%
Test Systems                  (610)     (1,318)   (2,135)   (2,393)
                             (28.3)%   (51.4)%   (47.0)%   (42.0)%
Total Operating Profit        10,837    9,585     23,600    20,388
                             15.3%     14.7%     16.3%     15.7%
                                                        
Interest Expense              262       266       480       529
Corporate Expenses and Other 2,857     1,809     4,558     3,347
Income Before Taxes           $7,718   $7,510   $18,562  $16,512
                             10.9%     11.6%     12.8%     12.7%



ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)

             Three Months Ended           Six Months Ended             
             6/29/2013 6/30/2012 % change 6/29/2013 6/30/2012 % change 2013
                                                                        YTD
                                                                 
Aerospace                                                         
Segment
Commercial    $46,264  $ 41,179  12.3%    $ 97,226  $ 85,287  14.0%    67.1%
Transport
Military      12,082    10,162    18.9%    20,698    19,081    8.5%     14.4%
Business Jet  6,966     8,283     (15.9)%  15,631    14,937    4.6%     10.8%
FAA/Airport   3,364     2,799     20.2%    6,790     5,119     32.6%    4.7%
Aerospace     68,676    62,423    10.0%    140,345   124,424   12.8%    96.9%
Total
                                                                 
Test Systems                                                      
Segment
Military      2,157     2,566     (15.9)%  4,455     5,703     (21.9)%  3.1%
                                                                 
Total         $ 70,833  $ 64,989  9.0%     $ 144,800 $ 130,127 11.3%    100.0%



ASTRONICS CORPORATION
SALES BY PRODUCT
(Unaudited, $ in thousands)

             Three Months Ended           Six Months Ended             
             6/29/2013 6/30/2012 % change 6/29/2013 6/30/2012 % change 2013
                                                                        YTD
                                                                 
Aerospace                                                         
Segment
Cabin        $36,677  $ 31,215  17.5%    $77,105  $ 66,254  16.4%    53.2%
Electronics
Aircraft     19,091    20,311    (6.0)%   37,208    37,299    (0.2)%   25.7%
Lighting
Avionics     4,366     2,915     49.8%    9,696     6,040     60.5%    6.7%
Airframe     5,178     5,183     (0.1)%   9,546     9,712     (1.7)%   6.6%
Power
Airfield     3,364     2,799     20.2%    6,790     5,119     32.6%    4.7%
Lighting
Aerospace     68,676    62,423    10.0%    140,345   124,424   12.8%    96.9%
Total
                                                                 
Test Systems                                                      
Segment
Military     2,157     2,566     (15.9)%  4,455     5,703     (21.9)%  3.1%
                                                                 
Total         $ 70,833  $ 64,989  9.0%     $ 144,800 $ 130,127 11.3%    100.0%



ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)

              Q3         Q4          Q1         Q2         Trailing
               2012        2012         2013        2013        TwelveMonths
              9/29/2012   12/31/2012   3/30/2013   6/28/2013   6/28/2013
Sales                                                                  
Aerospace      $ 65,788    $ 64,743     $ 71,669    $ 68,676    $ 270,876   
Test Systems   3,111       2,677        2,298       2,157       10,243      
Total Sales    $ 68,899    $ 67,420     $ 73,967    $ 70,833    $ 281,119   
                                                                      
Bookings                                                               
Aerospace      $ 64,674    $ 65,611     $ 75,390    $ 65,714    $ 271,389   
Test Systems   2,144       705          3,092       620         6,561       
Total Bookings $ 66,818    $ 66,316     $ 78,482    $ 66,334    $ 277,950   
                                                                      
Backlog*                                                               
Aerospace      $ 110,045   $ 110,915    $ 114,636   $ 111,674   N/A         
Test Systems   5,537       3,565        4,359       2,822       N/A         
Total Backlog  $ 115,582   $ 114,480    $ 118,995   $ 114,496   N/A         
                                                                      
Book:Bill                                                              
Ratio
Aerospace      0.98        1.01         1.05        0.96        1.00        
Test Systems   0.69        0.26         1.35        0.29        0.64        
Total          0.97        0.98         1.06        0.94        0.99        
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.

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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