Astronics Corporation Reports Record Quarterly Sales of $89.7 Million and Net Income of $7.2 Million for 2013 Third Quarter

Astronics Corporation Reports Record Quarterly Sales of $89.7 Million and Net
Income of $7.2 Million for 2013 Third Quarter

  *Aerospace sales increased by $21.7 million, including $15.7 million from
    acquisition
  *Third quarter net income increased 45.1% compared with prior-year quarter
  *Diluted earnings per share was $0.39 vs. $0.27 in prior-year quarter
  *Third quarter bookings were a record $104 million
  *2013 revenue guidance tightened to range of $335 million to $345 million

EAST AURORA, N.Y., Nov. 5, 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 and nine months ended September 28, 2013. Results include the operations
of Peco, Inc, acquired on July 18, 2013. Earnings per share for all periods
presented have been calculated reflecting the impact of the twenty percent
distribution of Class B Stock for shareholders of record on October 10, 2013.

              Three Months Ended              Nine Months Ended
              Sept.       Sept.       %       Sept.       Sept.       %
               28,2013    29,2012    Change  28,2013   29,2012   Change
                                                                 
Sales          $ 89,681    $ 68,899    30.2%   $ 234,481   $ 199,026   17.8%
Gross profit   $ 23,785    $ 16,717    42.3%   $ 62,685    $ 51,891    20.8%
Gross margin   26.5%       24.3%              26.7%       26.1%       
SG&A           $ 11,433    $ 9,062     26.2%   $ 31,291    $ 27,195    15.1%
SG&A percent   12.7%       13.2%              13.3%       13.7%       
of sales
Income from    $ 12,352    $ 7,655     61.4%   $ 31,394    $ 24,696    27.1%
operations
Operating      13.8%       11.1%              13.4%       12.4%       
margin %
Net income     $ 7,155     $ 4,930     45.1%   $ 20,877    $ 16,219    28.7%
Net income %   8.0%        7.2%               8.9%        8.1%        

Peter J. Gundermann, President and Chief Executive Officer, commented, "Our
third quarter was the strongest in Astronics' history, both financially and
strategically. We achieved record sales and orders, and ended the quarter with
a record backlog. If not for costs relating to purchase accounting for Peco,
our pre-tax income would have been a new quarterly record as well."

Mr. Gundermann added, "In addition to Peco, we acquired AeroSat in early
October and announced the acquisition of PGA Electronic yesterday. We feel
these acquisitions complement our existing product offerings and position
Astronics well in growing technical niches in the aerospace market.These new
capabilities will help Astronics improve the flying experience for passengers
and improve reliability for operators."

Consolidated Review

Consolidated Third Quarter Results

Consolidated sales for the third quarter of 2013 increased by 30.2% to $89.7
million compared with the same period last year. Aerospace sales of $87.5
million, which represented 97.6% of the consolidated total, increased by $21.7
million, including $15.7 million associated with the acquisition of Peco. Test
Systems sales decreased $0.9 million to $2.1 million.

Consolidated gross profit was $23.8 million, up $7.1 million from the
prior-year period. Consolidated gross margin was 26.5% compared with 24.3% for
the third quarter of 2012. Leverage from higher volume and $2.1 million lower
warranty and inventory obsolescence expense more than offset an approximately
$2.0 million fair value adjustment for the step-up of acquired inventory
associated with the Peco acquisition. Engineering and development ("E&D")
costs, which are included in cost of products sold, were $12.4 million in the
third quarter of 2013 compared with $12.8 million in the same period of 2012.
Selling, general and administrative ("SG&A") expenses were $11.4 million, or
12.7% of sales, compared with $9.1 million, or 13.2% of sales, in last year's
third quarter. The increase was due primarily to costs associated with the
Peco acquisition, which more than offset a reduction in legal expenses.
Peco-related costs included $2.0 million of ongoing operating expenses
including $1.1 million of amortization expense. 

The effective tax rate for the third quarter of 2013 was lower than the
federal statutory rate, due to the recognition of approximately $0.2 million
in U.S. R&D tax credits. Astronics expects the effective tax rate for the
fourth quarter of 2013 to be in the range of 31% to 33%.

Net income in the third quarter of 2013 was $7.2 million, or $0.39 per diluted
share, up 45.1% compared with $4.9 million, or $0.27 per diluted share, last
year.

Consolidated 2013 Year-to-Date Review

Consolidated year-to-date sales increased by 17.8% to $234.5 million, compared
with $199.0 million for the same period last year. Aerospace sales of $227.9
million increased by $37.7 million, while Test Systems sales of $6.6 million
decreased by $2.2 million in the first nine months of 2013.

Consolidated gross profit was $62.7 million, up from $51.9 million in the
prior nine-month period.Consolidated gross margin was 26.7% for the first
nine months of 2013 compared with last year's 26.1%. The increase was due to
leverage achieved from the increased sales volume as well as lower warranty
and inventory obsolescence expenses. This was partially offset by increased
E&D costs. E&D costs were $38.6 million in the first nine months of 2013
compared with $33.9 million in the prior-year period. SG&A expenses for the
first nine months of 2013 were approximately $31.3 million, or 13.4% of sales,
compared with $27.2 million, or 13.7% of sales, in the same period last year.
The increase was due primarily to the acquisition of Peco, which incrementally
added $2.0 million to SG&A.

The year-to-date effective tax rate was lower than the federal statutory rate
due to jurisdictional mix of taxable income as well as the recognition of $1.1
million of U.S. R&D tax credits from the prior year. The 2012 R&D tax credits
were not recognized in 2012, as the American Tax Payer Relief Act of 2012
which extended the R&D tax credit for 2012, was not enacted until 2013.
Year-to-date net income in 2013 was $20.9 million, or $1.14 per diluted share,
up 28.7% compared with $16.2 million, or $0.89 per diluted share, in the first
nine months of 2012.

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

Due to recent acquisitions, Astronics' aerospace product lines have been
reorganized compared with historical presentation. The following table maps
the Company's product lines as previously reported to currently reported
product lines.Peco products are included in Lighting & Safety, Structures and
Other.

New Product Line Category 
Electrical Power          Now includes Cabin Electronics, Airframe Power
Lighting & Safety         Now includes Aircraft Lighting and Peco Safety
                          Products (PSUs)
Avionics                  Now includes Avionics
Structures                Now includes Peco Structures Products (fuel access
                          doors and diffusers)
Other                     Now Includes Airfield Lighting and Other Peco
                          Products

Aerospace Third Quarter 2013 Results

Third quarter sales to the Commercial Transport market increased due to higher
sales of Electrical Power products, increased Lighting & Safety products and
the addition of Structures products from the Peco acquisition. Sales of
Electrical Power products grew as global demand for passenger power systems
continues to be strong. Lighting & Safety product sales in the Commercial
Transport market increased due primarily to the acquisition of Peco, which
added $11.2 million in sales to this product line and market. Additionally,
Peco contributed $2.8 million of Structures sales to the Commercial Transport
market. These increases were slightly offset by lower sales of Avionics
products to the Commercial Transport market.

Military sales were up compared with last year as a result of higher sales of
Lighting & Safety, Avionics and Electrical Power products.

Sales to the Business Jet market were flat when compared with last year's
third quarter as higher Electrical Power product sales were offset by lower
Lighting & Safety and Avionics product sales to this market.

Sales to Other markets increased $1.3 million as $1.5 million in sales
associated with the addition of Peco offset a moderate decline in airfield
lighting.

Aerospace operating profit for the third quarter of 2013 was $15.4 million, or
17.6% of sales, compared with $10.6 million, or 16.1% of sales, in the same
period last year. The increase in the operating profit was due to leverage
from higher volume and reductions in legal expenses. This was partially offset
by increased amortization and compensation expenses. Amortization expense in
the third quarter related to Peco's intangible assets was $1.1 million.

Aerospace Year-to-Date Results

Year-to-date sales to the Commercial Transport market increased due to higher
sales of Electrical Power products, Lighting & Safety products and Structures
products. Electrical Power products grew as global demand for passenger power
systems continues to be strong. Lighting & Safety product sales increased due
primarily to the acquisition of Peco, which added $11.2 million to sales in
this market. Peco added $2.8 million to Structure sales in the Commercial
Transport market. These increases were slightly offset by softer sales of
Avionics products to the Commercial Transport market.

Sales to the Military were up compared with last year primarily as a result of
higher sales of Lighting & Safety, Avionics and Electrical Power product
lines.

Sales to the Business Jet market were up slightly as higher Avionics product
sales were offset by lower Lighting & Safety product sales to this market.
Other aerospace sales increased primarily due to increased airfield lighting
sales and the addition of other Peco products.

Aerospace operating profit for the first nine months of 2013 was $41.1
million, or 18.0% of sales, compared with $33.4 million, or 17.5% of sales, in
the same period last year. The increase in the operating profit was due to
leverage from higher volume and reduced legal expenses.This was partially
offset by increased E&D, amortization and compensation expenses.

Aerospace Orders and Backlog

Bookings during the third quarter and first nine months of 2013 were $95.9
million and $237.0 million, respectively, compared with bookings of $64.7
million and $198.9 million in the third quarter and year-to-date periods of
2012, respectively. Backlog at the end of the third quarter was $159.5
million, including $39.5 million of Peco backlog.

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

All sales for the Test Systems segment are to the Military Market.

Sales in the 2013 third quarter decreased $0.9 million to $2.2 million when
compared with the same period in 2012. Sales for the first nine months of 2013
decreased $2.2 million to $6.6 million the same period in 2012.

Test Systems operating loss for the third quarter of 2013 was $0.7 million,
compared with $1.1 million in the same period last year. The operating loss
for the first nine months of 2013 was $2.9 million compared with $3.5 million
in the same nine-month period last year. Near the end of the first quarter of
2013, in light of continued low customer orders, the Test Systems segment
rationalized its cost structure primarily through reducing its head count in
an effort to reduce its operating loss.

Test Systems Orders and Backlog

Bookings during the third quarter and first nine months of 2013 were $8.1
million and $11.8 million, respectively, compared with bookings of $2.1
million and $5.9 million in the third quarter and year-to-date periods of
2012, respectively. Backlog at the end of the third quarter was $8.7 million.

Balance Sheet

Capital expenditures during the third quarter and first nine months of 2013
were $1.2 million and $4.8 million, respectively, compared with $6.1 million
and $10.6 million for the same periods in 2012, respectively. The Company
expects capital spending in 2013 to be approximately $7 million to $24
million, including approximately $14 million for the possible acquisition of a
new facility for Peco.

In July, the Company amended its credit facility to fund the acquisition of
Peco and pay off the outstanding 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. Based on
current interest rates the Company expects interest expense will initially
increase to about $1.9 million per quarter due to the higher debt level and
increased interest rates.

Outlook

On September 28, 2013, consolidated backlog was $168.2 million. Approximately
$87.5 million of this backlog is expected to ship by the end of 2013 and
$150.6 million is expected to ship over the next twelve months.

The Company is tightening its 2013 revenue expectations to be in the range of
$335 million to $345 million. Astronics anticipates that approximately $325
million to $335 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.

The Company expects to record approximately $3.0 million for the remainder of
the inventory valuation adjustment associated with the Peco acquisition in the
fourth quarter of this year. The Company expects 2013 consolidated E&D
expenses to be in the range of $52 million to $54 million, including $1
million to $2 million from the addition of Peco. Astronics expects
amortization expense in the fourth quarter relating to Peco intangible assets
to be approximately $1.7 million. For 2014, quarterly amortization expense for
acquired Peco intangible assets is expected to be in the range of $1.5 million
to $1.7 million.

Mr. Gundermann concluded, "We are making great progress with our strategy. Our
base business continues to perform well with leading technologies in strong
markets, and we believe the additions of Peco, AeroSat, and PGA will
contribute solidly to our immediate and long-term future. We anticipate that
our current momentum will continue to build through 2014 and beyond."

Third Quarter and Year–to-Date 2013 Webcast and Conference Call

The Company will host a teleconference today at 11:00 a.m. 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
10000478. The telephonic replay will be available from 2:00 p.m. ET on the day
of the call through Tuesday, November 12, 2013. A transcript will also be
posted to the Company's Web site, once available.

ABOUT ASTRONICS CORPORATION

Astronics Corporation (Nasdaq:ATRO) 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., Max-Viz, Inc., AeroSat and
PECO, 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 website 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        Nine Months Ended

                          9/28/2013    9/29/2012    9/28/2013    9/29/2012
Sales                      $89,681     $68,899     $ 234,481    $ 199,026
Cost of products sold      65,896       52,182       171,796      147,135
Gross profit               23,785       16,717       62,685       51,891
Gross margin               26.5%        24.3%        26.7%        26.1%
                                                              
Selling, general and       11,433       9,062        31,291       27,195
administrative
SG&A % of Sales           12.7%        13.2%        13.3%        13.7%
Income from operations     12,352       7,655        31,394       24,696
Operating margin           13.8%        11.1%        13.4%        12.4%
                                                              
Interest expense, net      1,605        274          2,085        803
Income before tax          10,747       7,381        29,309       23,893
Income tax expense         3,592        2,451        8,432        7,674
Net Income                 $7,155      $4,930      $20,877     $ 16,219
Net income % of Sales      8.0%         7.2%         8.9%         8.1%
                                                              
                                                              
*Basicearnings per share: $0.41       $0.29       $1.20       $0.95
*Diluted earnings per      $0.39       $0.27       $1.14       $0.89
share:
                                                              
*Weighted average diluted
shares outstanding (in     18,384       18,108       18,267       18,124
thousands)
                                                              
Capital Expenditures       $ 1,162      $6,074      $ 4,833      $10,570
Depreciation and           $3,077      $2,124      $ 6,547      $4,955
Amortization

*All share quantities and per share data reported for 2013 have been restated
to reflect the impact of the twenty percent Class B stock distribution to
shareholders of record on October 10, 2013.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, 2012.



ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
                                          9/28/2013   12/31/2012
                                          (Unaudited) 
ASSETS                                                
Cash and cash equivalents                  $68,186    $7,380
Accounts receivable                        48,594      45,473
Inventories                                67,255      48,624
Other current assets                       7,869       6,533
Property, plant and equipment, net         59,604      53,537
Deferred taxes long-term                   --          9,019
Other long-term assets                     5,608       2,977
Intangible assets, net                     83,094      16,523
Goodwill                                   92,620      21,923
Total Assets                               $432,830   $211,989
                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Current maturities of long term debt       $10,591    $9,268
Accounts payable and accrued expenses      45,872      38,700
Long-term debt                             188,078     20,715
Other liabilities                          40,052      18,172
Shareholders' equity                       148,237     125,134
Total Liabilities and Shareholders' Equity $ 432,830   $211,989



ASTRONICS CORPORATION
SEGMENT DATA
(Unaudited, $ in thousands)

                             Three Months Ended  Nine Months Ended
                             9/28/2013 9/29/2012 9/28/2013 9/29/2012
Sales                                                    
Aerospace                     $87,525  $65,788  $227,870 $190,212
Test Systems                  2,660     3,111     7,207     8,814
Less Inter-segment            (504)     --        (596)     --
Total Sales                   $89,681 $68,899  $234,481 $199,026
                                                        
Operating Profitand Margins                             
Aerospace                     $15,377  $10,577  $41,112  $33,358
                             17.6%     16.1%     18.0%     17.5%
Test Systems                  (745)     (1,132)   (2,880)   (3,525)
                             (28.0)%   (36.4)%   (40.0)%   (40.0)%
Total Operating Profit        14,632    9,445     38,232    29,833
                             16.3%     13.7%     16.3%     15.0%
                                                        
Interest Expense              1,605     274       2,085     803
Corporate Expenses and Other 2,280     1,790     6,838     5,137
Income Before Taxes           $10,747  $7,381   $29,309  $23,893
                             12.0%    10.7%     12.5%     12.0%



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

              Three Months Ended           Nine Months Ended            
              9/28/2013 9/29/2012 % change 9/28/2013 9/29/2012 % change 2013
                                                                         YTD
                                                                  
Aerospace                                                          
Segment
Commercial     $64,580  $47,933  34.7%    $ 161,806 $ 133,220 21.5%    69.0%
Transport
Military       12,702    8,733     45.4%    33,400    27,813    20.1%    14.3%
Business Jet   6,705     6,835     (1.9)%   22,336    21,773    2.6%     9.5%
Other          3,538     2,287     54.7%    10,328    7,406     39.5%    4.4%
Aerospace      87,525    65,788    33.0%    227,870   190,212   19.8%    97.2%
Total
                                                                  
Test Systems                                                       
Segment
Military       2,156     3,111     (30.7)%  6,611     8,814     (25.0)%  2.8%
                                                                  
Total          $ 89,681  $ 68,899  30.2%    $ 234,481 $ 199,026 17.8%    100%



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

              Three Months Ended           Nine Months Ended            
              9/28/2013 9/29/2012 % change 9/28/2013 9/29/2012 % change 2013
                                                                         YTD
                                                                  
Aerospace                                                          
Segment
Electrical    $47,142  $42,167  11.8%    $ 133,793 $ 118,133 13.3%    57.0%
Power
Lighting &    30,009    17,222    74.2%    67,218    54,521    23.3%    28.7%
Safety
Avionics      3,857     4,112     (6.2)%   13,553    10,152    33.5%    5.8%
Structures    2,801     --        100.0%   2,801     --        100.0%   1.2%
Other         3,716     2,287     62.5%    10,505    7,406     41.8%    4.5%
Aerospace      87,525    65,788    33.0%    227,870   190,212   19.8%    97.2%
Total
                                                                  
Test Systems                                                       
Segment
Military       2,156     3,111     (30.7)%  6,611     8,814     (25.0)%  2.8%
                                                                  
Total          $89,681  $68,899  30.2%    $ 234,481 $ 199,026 17.8%    100%



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

                                                              
                                                               Trailing
                 Q4           Q1          Q2          Q3          Twelve
                  2012         2013        2013        2013        Months
                 12/31/2012   3/30/2013   6/28/2013   9/28/2013   9/28/2013
Sales                                                          
Aerospace         $ 64,743     $ 71,669    $ 68,676    $ 87,525    $ 292,613
Test Systems      2,677        2,298       2,157       2,156       9,288
Total Sales       $ 67,420     $ 73,967    $ 70,833    $ 89,681    $ 301,901
                                                              
Bookings                                                       
Aerospace         $ 65,611     $ 75,390    $ 65,714    $ 95,852    $ 302,567
Test Systems      705          3,092       620         8,066       12,483
Total Bookings    $ 66,316     $ 78,482    $ 66,334    $ 103,918   $ 315,050
                                                              
Backlog*                                                       
Aerospace         $ 110,915    $ 114,636   $ 111,674   $ 159,468   N/A
Test Systems      3,565        4,359       2,822       8,731       N/A
Total Backlog     $ 114,480    $ 118,995   $ 114,496   $ 168,199   N/A
                                                              
Book:Bill Ratio                                                
Aerospace         1.01         1.05        0.96        1.10        1.03
Test Systems      0.26         1.35        0.29        3.74        1.34
Total Book:Bill   0.98         1.06        0.94        1.16        1.04

*On July 18, 2013, Astronics Corporation acquired Peco Inc. which included a
backlog of approximately $39.5 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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