Astronics Corporation Reports 2013 Fourth Quarter Sales of $105.5 Million and Net Income of $6.4 Million

Astronics Corporation Reports 2013 Fourth Quarter Sales of $105.5 Million and
Net Income of $6.4 Million

  *Fourth quarter results set new records for sales, bookings, and backlog
  *Fourth quarter diluted earnings per share up nearly 10%, to $0.34 over
    prior-year period
  *2013 sales grew 28% to $339.9 million and net income increased 25% to
    $27.3 million
  *2014 revenue expected to be in a range from $585 million to $640 million
    assuming a successful and timely close of the previously announced EADS
    T&S acquisition

EAST AURORA, N.Y., Feb. 13, 2014 (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
fourth quarter and year ended December 31, 2013. All share quantities and per
share data reported for 2013 and prior have been adjusted to reflect the
impact of the twenty percent Class B stock distribution in October 2013.

                     Three Months Ended          Year Ended
                     Dec. 31,   Dec. 31,  %      Dec. 31,   Dec. 31,   %
                      2013       2012      Change 2013       2012       Change
                                                                  
Sales                 $105,456 $67,420 56.4%  $339,937 $266,446 27.6%
Gross profit          $25,173  $17,551 43.4%  $87,858  $69,442  26.5%
Gross margin          23.9%      26.0%           25.8%      26.1%      
SG&A                  $14,262  $9,622  48.2%  $45,553  $36,817  23.7%
SG&A percent ofsales 13.5%      14.3%           13.4%      13.8%      
Income from           $10,911  $7,929  37.6%  $42,305  $32,625  29.7%
operations
Operating margin %    10.3%      11.8%           12.4%      12.2%      
Net income            $6,389   $5,655  13.0%  $27,266  $21,874  24.7%
Net income %          6.1%       8.4%            8.0%       8.2%       

Peter J. Gundermann, President and Chief Executive Officer, commented, "2013
was an exciting year for Astronics and its shareholders. We made three
significant acquisitions in the second half of the year that will add to
Astronics growth opportunities in the future. Each is a technological leader
in their niche and each is synergistic with our other products. PECO, acquired
in July, is a leading provider of overhead passenger service units. AeroSat,
acquired in October, is a leading provider of antennas used for airborne
satellite connectivity and PGA, acquired in December, is a leading provider of
cabin management/entertainment systems for VVIP aircraft and motion systems
for premium aircraft seats. We expect these acquisitions will be significant
contributors to our future success."

He continued, "The fourth quarter was a strong close to 2013, setting new
records for revenue, bookings and backlog.And, after considering the impact
of accounting rules for business combinations which included the $3.5 million
expense during the quarter for the fair value step-up of acquired inventory,
we believe our income statement for the quarter shows real strength.We
believe this momentum will become increasingly obvious as we move into 2014,
and look forward to another exciting year."

Consolidated Review

Fourth Quarter 2013 Results

Consolidated sales increased by $38.0 million, or 56.4%, to $105.5 million
compared with the same period last year. The acquired businesses accounted for
$23.8 million of sales in the 2013 fourth quarter, all in the aerospace
segment.

Consolidated gross profit was $25.2 million, up $7.6 million from the fourth
quarter of 2012. Consolidated gross margin was 23.9% compared with 26.0% for
same period last year. The Company expensed $3.5 million for the fair value
step-up of acquired inventory from the 2013 acquisitions that was sold during
the quarter.Engineering and development ("E&D") costs were $14.3 million in
the fourth quarter of 2013 compared with $11.1 million in the same period of
2012. Leverage from higher sales volume helped to offset these items.

Selling, general and administrative ("SG&A") expenses increased $4.7 million
to $14.3 million, or 13.5% of sales, compared with $9.6 million, or 14.3 % of
sales, in last year's fourth quarter. A $0.8 million decrease in legal costs
was more than offset by the incremental SG&A costs for the acquired
businesses, which was $4.6 million in the fourth quarter of 2013.

The effective tax rate of 28.2% for the fourth quarter of 2013 was lower than
the federal statutory rate primarily as a result of U.S. Research &
Development (R&D) tax credits.

Net income in the fourth quarter of 2013 was $6.4 million, or $0.34 per
diluted share, up 13.0% compared with $5.7 million, or $0.31 per diluted
share, last year.This includes the impact of inventory step up charges which
was approximately $0.13 per diluted share.

Consolidated 2013 Full Year Review

Consolidated sales for 2013 increased by $73.5 million, or 27.6%, to $339.9
million, compared with sales of $266.4 million for 2012. The acquired
businesses in 2013 accounted for $39.4 million of sales, all in the aerospace
segment.

Consolidated gross profit was $87.9 million, up $18.5 million from $69.4
million in the prior year. The consolidated gross margin was 25.8% for the
full year of 2013 compared with 26.1% last year. Lower warranty and inventory
obsolescence expense of $2.9 million and leverage from higher sales were more
than offset by a $7.9 million increase of E&D expense and the expensing of
approximately $5.5 million for the fair value step-up of acquired inventory
from the 2013 acquisitions that was sold during the year. E&D costs were $52.8
million for the full year of 2013 compared with $44.9 million in the
prior-year.

SG&A expenses for the full year of 2013 increased $8.8 million to $45.6
million, or 13.4% of sales, compared with $36.8 million, or 13.8% of sales, in
2012. The increase was due primarily to $6.6 million in added SG&A costs for
the acquired businesses and $1.8 million relating to the acquisition
transactions including financing, legal and diligence efforts.

Interest expense for the year was $4.1 million, up from $1.0 million in 2012,
due to the increased debt levels associated with the Company's 2013
acquisitions.

The effective tax rate for 2013 was lower than the federal statutory rate due
to the recognition of $0.8 million of 2013 U.S. R&D tax credits and an
additional $1.1 million of U.S. R&D tax credits from 2012 that was recognized
in 2013. 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. Astronics expects the effective tax rate for 2014 to
be in the range of 30% to 31%.

Year-to-date net income in 2013 was $27.3 million, or $1.49 per diluted share,
up 24.7% compared with $21.9 million, or $1.20 per diluted share, for the
prior-year period. This includes the impact of inventory step up charges which
was approximately $0.21 per diluted share.

Depreciation and amortization expense for 2013 totaled $11.1 million, up from
$6.9 million in 2012, largely due to the recent acquisitions.

Mr. Gundermann continued, "2013 was obviously a pivotal year for our Company,
and we are pleased with our ongoing integration efforts and financial
results.We will be living with higher interest and amortization expense from
the 2013 acquisitions for some time, but the fair value step-up of inventory
is mostly behind us.We expect another $2.6 million of this expense in the
early part of 2014, and then the earnings power of our 2013 acquisitions will
be more evident."

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

Aerospace Fourth Quarter 2013 Results

Fourth quarter sales in Astronics' Aerospace segment increased $37.9 million
compared with the prior year fourth quarter. The acquired businesses had $23.8
million in sales in the fourth quarter of 2013. Sales from the company's
organic business's increased by $14.1 million primarily from Electrical Power
& Motion and Lighting & Safety product sales increases.

Aerospace operating profit in the fourth quarter of 2013 was $14.1 million, or
13.7% of sales, compared with $10.8 million, or 16.6% of sales, in the same
period last year.Leverage from higher sales volume and a $1.4 million
reduction of warranty, inventory obsolescence and legal expenses contributed
to the increased operating profit.These were partially offset by the a $3.5
million expense for the fair value step-up of inventory of the acquired
businesses that was sold during the quarter and higher E&D expenses of $3.2
million of which approximately half relates to the acquired businesses. SG&A
costs for the businesses acquired in 2013 totaled $4.6 million for the
quarter.

Aerospace Year-to-Date Results

Year-to-date sales for our Aerospace segment increased $75.6 million compared
with the prior year. Sales for this segment from the acquired businesses
accounted for $39.4 million of the increase. Organic sales for this segment
were up $36.2 million primarily from Electrical Power & Motion product
sales.Also contributing slightly to the increase was increased organic sales
of Lighting & Safety products. The Electrical Power and Motion product line
now includes motion systems for premium aircraft seats acquired with PGA.

Aerospace operating profit for 2013 was $55.2 million, or 16.7% of sales,
compared with $44.1 million, or 17.3% of sales, in the same period last
year.The increase in the operating profit was due to leverage from a higher
volume of sales, lower warranty and inventory obsolescence expense and lower
legal expenses which more than offset the $5.5 million fair value expense for
the step-up of acquired inventory from the 2013 acquisitions and higher E&D
expenses of $8.0 million, of which approximately $1.9 million related to the
acquired businesses. SG&A costs for the businesses acquired in 2013 totaled
$6.6 million for 2013, including $3.2 million of purchased intangible
amortization expense associated with these acquisitions.

Aerospace Orders and Backlog

Bookings during the fourth quarter and full year of 2013 were $107.6 million
and $344.6 million, respectively, compared with bookings of $65.6 million and
$264.5 million in the fourth quarter and 2012, respectively.Aerospace backlog
at the end of the fourth quarter 2013 was $207.1 million.

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

Sales in the 2013 fourth quarter increased $0.1 million to $2.8 million when
compared with the same period in 2012.Sales for the first twelve months of
2013 decreased $2.1 million to $9.4 million compared with 2012.All sales for
the Test Systems segment were to the Military Market.

Test Systems operating loss for the fourth quarter of 2013 was $0.9 million,
compared with $1.5 million in the same period last year.The operating loss
for the first twelve months of 2013 was $3.8 million compared with $5.0
million in the same twelve-month period last year.

Test Systems Orders and Backlog

Bookings during the fourth quarter and full year of 2013 were $1.1 million and
$12.9 million, respectively, compared with bookings of $0.7 million and $6.6
million in the fourth quarter and full year of 2012, respectively.Backlog at
the end of the fourth quarter of 2013 was $7.1 million.

Balance Sheet

Cash was $54.6 million at the end of 2013, funded debt was $200.3 million
resulting in net debt of $145.7 million.

Capital expenditures during the fourth quarter and full year of 2013 were $2.0
million and $6.9 million, respectively, compared with $6.2 million and $16.7
million for the same periods in 2012, respectively.

Outlook

On December 31, 2013, consolidated backlog was $214.2 million. Approximately
$204.1 million of this backlog is expected to ship in 2014.

The Company expects 2014 sales to be in the range of $585 million to $640
million which includes approximately $100 million to $120 million for the
previously announced planned acquisition of the Test business from EADS North
America.Astronics expects that approximately $475 million to $505 million of
forecasted 2014 revenue will be from its Aerospace segment, while $110 million
to $135 million of the forecasted revenue will be from its Test Systems
segment.

The Company expects capital spending in 2014 to be in the range of $33 million
to $37 million, including approximately $21 million for the acquisition and
renovation of a new facility in Portland, OR. This range does not include an
estimate for capital spending for the EADS North America Test business. The
Company expects to expense the majority of the remaining $2.6 million fair
value inventory step up associated with the 2013 acquisitions in the first
quarter of 2014.The Company expects 2014 consolidated E&D expenses to be in
the range of $65 million to $69 million, including $14 million to $16 million
from the 2013 acquisitions, but excluding E&D expenses for the EADS Test
business.In 2014, excluding the EADS Test business, depreciation and
amortization expense is expected to be approximately $18 million compared with
$11 million in 2013.

Mr. Gundermann concluded, "We have very high expectations for 2014, with sales
expected to increase more than 70% over 2013.Our first quarter will likely
see sales of $130 to $140 million, depending on the timing of our announced
acquisition of the EADS Test and Services business, which we hope to close by
the end of February 2014.Overall, our markets and customer activity remain
robust, and we believe the foundation we established in 2013 and prior has set
the stage for a fantastic 2014."

Fourth Quarter and Full Year 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
13574445. The telephonic replay will be available from 2:00 p.m. ET on the day
of the call through Thursday, February 20, 2014. 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
electrical power & motion, lighting & safety, specialized avionics, structure
products 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
AeroSat Corporation, Astronics Advanced Electronic Systems Corp., Ballard
Technology, Inc., DME Corporation, Luminescent Systems Inc., Max-Viz, Inc.,
PECO, Inc. and PGA Electronic S.A, 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        Year Ended
                          12/31/2013   12/31/2012   12/31/2013   12/31/2012
Sales                      $105,456   $67,420    $339,937   $266,446
Cost of products sold      80,283      49,869      252,079     197,004
Gross profit               25,173      17,551      87,858      69,442
Gross margin               23.9%        26.0%        25.8%        26.1%
                                                              
Selling, general and       14,262      9,622       45,553      36,817
administrative
SG&A % of Sales            13.5%        14.3%        13.4%        13.8%
Income from operations     10,911      7,929       42,305      32,625
Operating margin           10.3%        11.8%        12.4%        12.2%
                                                              
Interest expense, net      2,009       239         4,094       1,042
Income before tax         8,902       7,690       38,211      31,583
Income tax expense         2,513       2,035       10,945      9,709
Net Income                 $6,389     $5,655     $27,266    $21,874
Net income % of Sales      6.1%         8.4%         8.0%         8.2%
                                                              
                                                              
*Basicearnings per share: $0.36      $0.33      $1.56      $1.28
*Diluted earnings per      $0.34      $0.31      $1.49      $1.20
share:
                                                              
*Weighted average diluted
shares outstanding (in     18,629      18,254      18,359      18,157
thousands)
                                                              
Capital Expenditures       $2,035     $6,150     $6,868     $16,720
Depreciation and           $4,512     $1,950     $11,059    $6,905
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.
                                                              

ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
                                          12/31/2013  12/31/2012
                                          (Unaudited) 
ASSETS                                                
Cash and cash equivalents                  $54,635   $7,380
Accounts receivable                        60,942     45,473
Inventories                                85,269     48,624
Other current assets                       5,061      1,566
Deferred taxes - current                   5,291      4,967
Property, plant and equipment, net         70,900     53,537
Deferred taxes - long-term                 --        9,019
Other long-term assets                     5,474      2,977
Intangible assets, net                     102,701    16,523
Goodwill                                   100,998    21,923
Total Assets                               $491,271  $211,989
                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Current maturities of long term debt       $12,279   $9,268
Accounts payable and accrued expenses      72,958     38,700
Long-term debt                             188,041    20,715
Other liabilities                          22,254     18,172
Deferred taxes - long-term                 24,230     --
Shareholders' equity                       171,509    125,134
Total Liabilities and Shareholders' Equity $491,271  $211,989
                                                     

ASTRONICS CORPORATION
SEGMENT DATA
(Unaudited, $ in thousands)

                            Three Months Ended    Year Ended
                            12/31/2013 12/31/2012 12/31/2013 12/31/2012
Sales                                                      
Aerospace                    102,660   64,743    330,530   254,955
Test Systems                 2,896     2,677     10,103    11,491
Less Inter-segment           (100)     --       (696)     --
Total Sales                  105,456   67,420    339,937   266,446
                                                          
Operating Profitand Margins                               
Aerospace                    14,088    10,779    55,200    44,137
                            13.7%      16.6%      16.7%      17.3%
Test Systems                 (876)     (1,460)   (3,756)   (4,985)
                            (30.2)%    (54.5)%    (37.2)%    (43.4)%
Total Operating Profit       13,212    9,319     51,444    39,152
                            12.5%      13.8%      15.1%      14.7%
                                                          
Interest Expense             2,009     239       4,094     1,042
Corporate Expenses andOther 2,301     1,390     9,139     6,527
Income Before Taxes          8,902     7,690     38,211    31,583
                                                          

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

             Three Months Ended           Year Ended                     
             12/31/2013 12/31/2012 %      12/31/2013 12/31/2012 % change 2013
                                    change                                YTD
                                                                   
Aerospace                                                           
Segment
Commercial    75,918    45,884    65.5%  237,725   179,105   32.7%    70%
Transport
Military      15,270    8,697     75.6%  48,669    36,510    33.3%    14%
Business Jet  7,448     7,607     (2.1)% 29,784    29,379    1.4%     9%
Other         4,024     2,555     57.5%  14,352    9,961     44.1%    4%
Aerospace     102,660   64,743    58.6%  330,530   254,955   29.6%    97%
Total
                                                                   
Test Systems                                                        
Segment
Military      2,796     2,677     4.4%   9,407     11,491    (18.1)%  3%
                                                                   
Total         105,456   67,420    56.4%  339,937   266,446   27.6%    100%
                                                                   

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

              Three Months Ended           Year Ended                    
              12/31/2013 12/31/2012 %      12/31/2013 12/31/2012 %      2013
                                     change                       change  YTD
                                                                   
Aerospace                                                           
Segment
Electrical     54,428    42,003    29.6%  188,221   160,136   17.5%   55%
Power & Motion
Lighting &     35,015    15,076    132.3% 102,233   69,597    46.9%   30%
Safety
Avionics       5,180     5,109     1.4%   18,733    15,261    22.8%   6%
Structures     3,530     --       100%   6,331     --       100%    2%
Other          4,507     2,555     76.4%  15,012    9,961     50.7%   4%
Aerospace      102,660   64,743    58.6%  330,530   254,955   29.6%   97%
Total
                                                                   
Test Systems                                                        
Segment
Military       2,796     2,677     4.4%   9,407     11,491    (18.1)% 3%
                                                                   
Total          105,456   67,420    56.4%  339,937   266,446   27.6%   100%
                                                                   

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


                Q1           Q2           Q3          Q4          Twelve
                2013         2013         2013        2013        Months
                3/30/2013    6/29/2013    9/28/2013   12/31/2013  12/31/2013
Sales                                                          
Aerospace        $71,669    $68,676    $87,525   $ 102,660  $ 330,530
Test Systems     2,298       2,157       2,156      2,796      9,407
Total Sales      $73,967    $70,833    $89,681   $ 105,456  $ 339,937
                                                              
Bookings                                                       
Aerospace        $75,390    $65,714    $95,852   $ 107,633  $ 344,589
Test Systems     3,092       620         8,066      1,127      12,905
Total Bookings   $78,482    $66,334    $ 103,918  $ 108,760  $ 357,494
                                                              
Backlog*                                                       
Aerospace        $ 114,636   $ 111,674   $ 159,468  $ 207,101  N/A
Test Systems     4,359       2,822       8,731      7,062      N/A
Total Backlog    $ 118,995   $ 114,496   $ 168,199  $ 214,163  N/A
                                                              
Book:Bill Ratio                                                
Aerospace        1.05        0.96        1.10       1.05       1.04
Test Systems     1.35        0.29        3.74       0.40       1.37
Total Book:Bill  1.06        0.94        1.16       1.03       1.05
                                                              
* During the third quarter, acquisitions added backlog of approximately $39.5
million for the Aerospace segment During the fourth quarter, acquisitions
added backlog of approximately $42.6 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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