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Astronics Corporation Reports Third Quarter 2022 Financial Results

  • Sales for the quarter were $131.4 million, up 18% over prior-year period
  • Operating loss was $14.3 million, including $4.6 million in atypical costs, a portion of which is expected to be recovered in the fourth quarter
  • Bookings totaled $184.2 million, up 20% over prior-year period; achieved book-to-bill ratio of 1.40
  • Backlog increased 32% from year end 2021 to a record $547.1 million; Aerospace backlog reached a record $464.3 million

Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense and other mission critical industries, today reported financial results for the three and nine months ended October 1, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221115006434/en/

(Graphic: Business Wire)

(Graphic: Business Wire)

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “Our third quarter sales of $131 million were our highest since the pandemic took hold in early 2020, significantly exceeding average quarterly revenue of $118 million in our previous four quarters. It was a lower sales level than we anticipated, however, due to customer programs that were rescheduled and certain supply chain challenges. Still, we expect to see a steeper ramp in the fourth quarter as the supply chain stabilizes and program schedules are locked down.”

“Demand stayed strong through the quarter, with consolidated bookings of $184 million. Our cumulative bookings for the last four quarters were $686 million, easily exceeding shipments during that same period of $493 million. We ended the third quarter with another record backlog which supports the step change increase in sales we expect for the last quarter of 2022.”

He added, “Margins were under pressure in the quarter because of inflation and supply chain challenges that are widespread these days, as well as from significant legal and customer accommodation expenses of $4 million, part of which we expect to recover. Last year’s third quarter had the benefit of the Aviation Manufacturing Jobs Protection Program. We are passing on increased material, labor, and logistics costs where we can, but our ability to respond in the short term is limited. Encouragingly, we have some evidence that our supply chain is beginning to loosen up, giving us confidence that execution in the near future should get easier than it has been in the recent past.”

Third Quarter Results

 

     

Three Months Ended

 

Nine Months Ended

($ in thousands)

     

October 1,

2022

 

October 2,

2021

% Change

 

October 1,

2022

 

October 2,

2021

% Change

 

     

 

 

 

 

 

 

 

 

 

Sales

     

$

131,438

 

 

$

111,841

 

17.5

%

 

$

376,741

 

 

$

328,856

 

14.6

%

Loss from Operations

     

$

(14,314

)

 

$

(4,498

)

(218.2

) %

 

$

(26,877

)

 

$

(19,930

)

(34.9

) %

Operating Margin %

     

 

(10.9

) %

 

 

(4.0

) %

 

 

 

(7.1

) %

 

 

(6.1

) %

 

Net Gain on Sale of Business

     

$

 

 

$

 

 

 

$

(11,284

)

 

$

 

 

Net Loss

     

$

(14,857

)

 

$

(7,174

)

(107.1

) %

 

$

(28,968

)

 

$

(27,182

)

(6.6

) %

Net Loss %

     

 

(11.3

) %

 

 

(6.4

) %

 

 

 

(7.7

) %

 

 

(8.3

) %

 

*Adjusted EBITDA

     

$

(789

)

 

$

2,836

 

(127.8

) %

 

$

67

 

 

$

2,703

 

(97.5

) %

*Adjusted EBITDA Margin %

     

 

(0.6

) %

 

 

2.5

%

 

 

 

0.0

%

 

 

0.8

%

 

*Adjusted EBITDA is a Non-GAAP Performance Measure. Please see the attached table for a reconciliation of adjusted EBITDA to GAAP net income.

Third Quarter 2022 Results (compared with the prior-year period, unless noted otherwise)

Consolidated sales were up $19.6 million from the third quarter of 2021. Aerospace sales were up $16.4 million, or 17.1%, while Test System sales increased $3.2 million.

Consolidated operating loss was $14.3 million, compared with operating loss of $4.5 million in the prior-year period. Higher operating loss was the result of material and labor inflation, addressing supply chain constraints to meet customer requirements and the lag in price increases implemented where possible to offset higher costs and product mix. Third quarter 2022 operating loss also reflects $4.6 million related to the settlement of a litigation claim, a customer accommodation dispute, and a lease termination settlement. The Company expects to be indemnified by other parties for approximately $1.5 million related to the settlement of the litigation claim and will record the gain as an offset to SG&A when received, likely in the fourth quarter of 2022. The prior-year period benefited by a $1.1 million offset to cost of products sold from the Aviation Manufacturing Jobs Protection (“AMJP”) Program grant.

Tax benefit in the quarter was $2.4 million primarily due to changes in the year-to-date and forecasted loss before income taxes.

Consolidated net loss was $14.9 million, or $0.46 per diluted share, compared with net loss of $7.2 million, or $0.23 per diluted share, in the prior year.

Consolidated adjusted EBITDA decreased to a loss of $0.8 million, or 0.6% of consolidated sales, compared with adjusted EBITDA of $2.8 million, or 2.5% of consolidated sales, in the prior-year period.

Bookings were $184.2 million in the quarter resulting in a book-to-bill ratio of 1.40:1. Backlog at the end of the quarter reached another record of $547.1 million for the fourth consecutive quarter.

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

Aerospace Third Quarter 2022 Results (compared with the prior-year period, unless noted otherwise)

Aerospace segment sales increased $16.4 million, or 17.1%, to $112.2 million. Commercial aerospace sales increased 36.2%, or $20.8 million, and drove the improvement. Sales to this market were $78.4 million compared with $57.5 million in the third quarter of 2021. Improving domestic airline travel that is driving higher fleet utilization and increased narrowbody production rates drove demand for Astronics’ products.

General Aviation sales increased $2.6 million, or 21.8%, to $14.8 million due in part to higher demand in the business jet market for antenna systems and enhanced vision system products. The Company expects the strong end user demand in the business jet industry to drive higher OEM production rates in the near future, resulting in further increases in demand for its products.

Military Aircraft sales decreased $4.6 million, or 27.0%, to $12.5 million. The prior-year period benefited from incremental non-recurring engineering revenue associated with development programs and higher sales of avionics products.

Other revenue decreased $2.5 million to $6.6 million driven by decreased contract manufacturing programs.

Aerospace segment operating loss was $6.9 million compared with operating profit of $1.9 million for the same period last year. Higher operating losses were driven by inflationary impacts on input costs and inefficiencies associated with production execution due to supply chain constraints that restricted shipment volume, as well as the settlement of a litigation claim and a customer accommodation dispute that resulted in $4.1 million of expense during the quarter. We expect to be indemnified by other parties for approximately $1.5 million related to the litigation claim and will record that gain when such proceeds are received, likely in the fourth quarter.

Aerospace bookings in the third quarter of 2022 were $165.7 million for a book-to-bill ratio of 1.48:1. Bookings were up 32% sequentially, and up 16% over the comparator quarter of 2021, continuing the strong trend of improvement since the pandemic took hold. Backlog for the Aerospace segment was a record $464.3 million at the end of the third quarter of 2022.

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

Test Systems Third Quarter 2022 Results (compared with the prior-year period, unless noted otherwise)

Test Systems segment sales were $19.3 million, up $3.2 million compared with the prior-year period driven by higher defense revenue.

Test Systems segment operating loss was $2.3 million compared with operating loss of $2.2 million in the third quarter of 2021. Continued lower volume has driven operating losses in the third quarters of 2022 and 2021. Operating loss in 2022 also included $0.5 million in lease termination settlement costs.

Bookings for the Test Systems segment in the quarter were $18.4 million, for a book-to-bill ratio of 0.96:1 for the quarter. Backlog was $82.8 million at the end of the third quarter of 2022.

Mr. Gundermann noted, “Our Test business achieved a big win during the quarter when we were down-selected by the U.S. Army as the winner of a major radio test competition. A directed procurement is underway to finalize the terms of a contract, a process that is expected to be completed soon. Preliminarily, the Company expects the program could generate sales of $150 million to $200 million in the coming years.”

Liquidity and Financing

Cash on hand at the end of the quarter was $2.6 million and capital expenditures in the quarter were $1.8 million. Net debt was up to $156.4 million, compared with $133.2 million at the end of 2021.

As of November 11, 2022, the Company had approximately $8.0 million in cash and $25.0 million of total liquidity.

On October 21, 2022, the Company entered into an amended revolving credit facility with its bank group, under which the lenders waived their rights against the Company arising from the Company’s failure to comply with the maximum net leverage ratio and minimum liquidity covenants, each as of September 30, 2022. The Amendment increased the maximum aggregate amount that the Company can borrow under the facility from $170 million to $180 million as of October 21, 2022, which brought the maximum aggregate amount available for borrowing by the Company back to the level to which it had been from September 12, 2022 to October 10, 2022. The maximum aggregate amount available for borrowing by the Company would decrease back to $170 million on November 21, 2022. Furthermore, the amendment required the Company to maintain minimum liquidity of at least $15 million as of November 21, 2022 and at least $35 million as of November 30, 2022 and the end of any month thereafter. Under the provisions of the amendment, the inclusion of any “going concern” language in the Company’s financial statements would constitute an event of default.

On November 14, 2022, the Company entered into an amended and extended revolving credit facility with its bank group. The purpose of the amendment was to extend the scheduled expiration of the agreement from August 31, 2023 to November 30, 2023, giving the Company more time to complete the refinancing of its revolving credit facility, which it expects to have complete in the coming weeks. The maximum net leverage ratio is waived for the duration of the facility. The maximum commitment is set at $180 million, with a reduction to $170 million at December 21, 2022. The Company will be required to maintain minimum liquidity of $10 million as of November 30, 2022 and December 31, 2022, and $15 million at the end of any month thereafter. The Amended Facility requires the Company to comply with a minimum trailing twelve month EBITDA covenant, set at $15 million as of December 31, 2022 and March 31, 2023, and $25 million in each quarter thereafter. We expect to remain in compliance with these covenants for the duration of the agreement.

Mr. David C. Burney, “Our refinancing process has taken much longer than expected given delays with property appraisals as well as the many elements of the structure. This extension enables us to continue the process and we expect to complete a new lending structure before year end.”

2022 and 2023 Outlook

Mr. Gundermann commented, “Increasing sales is critical to satisfying our customers’ demand, and improving financial results. Revenue has been starting to ramp and we believe it will accelerate as we move forward. As previously reported, we are expecting sales of $140 million to $150 million in the fourth quarter of 2022, an increase of 10%, or $14 million, at the midpoint over the trailing third quarter. This would result in estimated 2022 sales to be up approximately 17% from last year’s revenue of $445 million. While disappointed with the lower sales level for the year than we had previously anticipated, we remain very encouraged with the demand for our products, our position in the industry and the significant opportunities in which we are engaged.”

He continued, “Our initial look at 2023 suggests sales of $640 million to $680 million. This expectation is supported by cumulative bookings of $686 million over the last four quarters and our record backlog of $547 million. Our supply chain has been a challenge during the last year, but we now see clear signs of improvement and anticipate continued recovery over the course of 2023.”

Planned capital expenditures for 2022 are expected to be approximately $9 million to $10 million.

Third Quarter 2022 Webcast and Conference Call

The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management 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) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial

(412) 317-6671 and enter replay pin number 13734416. The telephonic replay will be available from 7:45 p.m. on the day of the call through Tuesday, November 29, 2022. A transcript of the call will also be posted to the Company’s Web site once available.

About Astronics Corporation

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission critical industries with proven, innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

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 and include all statements with regard to the impact of COVID-19 on the Company and its future, reaching any revenue or Adjusted EBITDA margin expectations, being in compliance with credit agreement covenants and executing a revised credit agreement, expected revenue from recently announced programs, the recovery of the commercial aerospace and test systems markets, expected program awards for the Test segment, and the outcome of demand streams or expectations of demand by customers and markets. 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 from what may be stated here include the continued global impact of COVID-19 and related governmental and other actions taken in response, trend in growth with passenger power and connectivity on airplanes, 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 and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the need for new and advanced test and simulation equipment, customer preferences and relationships, 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 STATEMENT OF OPERATIONS DATA

(Unaudited, $ in thousands except per share data)

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

10/1/2022

 

10/2/2021

 

10/1/2022

 

10/2/2021

Sales

$

131,438

 

 

$

111,841

 

 

$

376,741

 

 

$

328,856

 

Cost of products sold

 

117,050

 

 

 

94,610

 

 

 

326,711

 

 

 

281,957

 

Gross profit

 

14,388

 

 

 

17,231

 

 

 

50,030

 

 

 

46,899

 

Gross margin

 

10.9

%

 

 

15.4

%

 

 

13.3

%

 

 

14.3

%

 

 

 

 

 

 

 

 

Selling, general and administrative 1

 

28,702

 

 

 

21,729

 

 

 

76,907

 

 

 

66,829

 

SG&A % of sales

 

21.8

%

 

 

19.4

%

 

 

20.4

%

 

 

20.3

%

Loss from operations

 

(14,314

)

 

 

(4,498

)

 

 

(26,877

)

 

 

(19,930

)

Operating margin

 

(10.9

) %

 

 

(4.0

) %

 

 

(7.1

) %

 

 

(6.1

) %

 

 

 

 

 

 

 

 

Net gain on sale of business

 

 

 

 

 

 

 

(11,284

)

 

 

 

Other expense, net of other income

 

427

 

 

 

546

 

 

 

1,180

 

 

 

1,627

 

Interest expense, net

 

2,519

 

 

 

1,795

 

 

 

5,812

 

 

 

5,252

 

Loss before tax

 

(17,260

)

 

 

(6,839

)

 

 

(22,585

)

 

 

(26,809

)

Income tax (benefit) expense

 

(2,403

)

 

 

335

 

 

 

6,383

 

 

 

373

 

Net loss

$

(14,857

)

 

$

(7,174

)

 

$

(28,968

)

 

$

(27,182

)

Net loss % of sales

 

(11.3

) %

 

 

(6.4

) %

 

 

(7.7

) %

 

 

(8.3

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Basic loss per share:

$

(0.46

)

 

$

(0.23

)

 

$

(0.90

)

 

$

(0.88

)

*Diluted loss per share:

$

(0.46

)

 

$

(0.23

)

 

$

(0.90

)

 

$

(0.88

)

 

 

 

 

 

 

 

 

*Weighted average diluted shares outstanding (in thousands)

 

32,241

 

 

 

30,954

 

 

 

32,085

 

 

 

30,927

 

 

 

 

 

 

 

 

 

Capital expenditures 2

$

1,790

 

 

$

1,073

 

 

$

4,283

 

 

$

4,639

 

Depreciation and amortization

$

6,817

 

 

$

7,071

 

 

$

20,905

 

 

$

21,950

 

1 Includes fair value adjustment of contingent consideration liabilities, which was a $2.2 million benefit in the nine months ended October 2, 2021.

2 Excludes $1.4 million of capital expenditures in accounts payable at October 1, 2022.

 
 

ASTRONICS CORPORATION

SEGMENT DATA

(Unaudited, $ in thousands)

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

10/1/2022

10/2/2021

 

10/1/2022

10/2/2021

Sales

 

 

 

 

 

Aerospace

$

112,177

 

$

95,775

 

 

$

322,871

 

$

266,425

 

Less inter-segment

 

 

 

(9

)

 

 

(10

)

 

(23

)

Total Aerospace

 

112,177

 

 

95,766

 

 

 

322,861

 

 

266,402

 

 

 

 

 

 

 

Test Systems

 

19,261

 

 

16,128

 

 

 

53,899

 

 

62,811

 

Less inter-segment

 

 

 

(53

)

 

 

(19

)

 

(357

)

Total Test Systems

 

19,261

 

 

16,075

 

 

 

53,880

 

 

62,454

 

Total consolidated sales

 

131,438

 

 

111,841

 

 

 

376,741

 

 

328,856

 

 

 

 

 

 

 

Segment operating loss and margins

 

 

 

 

 

Aerospace

 

(6,859

)

 

1,917

 

 

 

(7,085

)

 

(6,352

)

 

 

(6.1

) %

 

2.0

%

 

 

(2.2

) %

 

(2.4

) %

Test Systems

 

(2,312

)

 

(2,201

)

 

 

(4,125

)

 

(1,958

)

 

 

(12.0

) %

 

(13.7

) %

 

 

(7.7

) %

 

(3.1

) %

Total segment operating loss

 

(9,171

)

 

(284

)

 

 

(11,210

)

 

(8,310

)

 

 

 

 

 

 

Net gain on sale of business

 

 

 

 

 

 

(11,284

)

 

 

Interest expense

 

2,519

 

 

1,795

 

 

 

5,812

 

 

5,252

 

Corporate expenses and other 1

 

5,570

 

 

4,760

 

 

 

16,847

 

 

13,247

 

Loss before taxes

$

(17,260

)

$

(6,839

)

 

$

(22,585

)

$

(26,809

)

1 Includes fair value adjustment of contingent consideration liabilities, which was a $2.2 million benefit in the nine months ended October 2, 2021.

Reconciliation to Non-GAAP Performance Measures

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash equity-based compensation expense, goodwill, intangible and long-lived asset impairment charges, equity investment income or loss, legal reserves, settlements and recoveries, restructuring charges, gains or losses associated with the sale of businesses and grant benefits recorded related to the AMJP program), which is a non-GAAP measure. The Company’s management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, equity-based compensation expense, goodwill, intangible and long-lived asset impairment charges, equity investment income or loss, legal reserves, settlements and recoveries, customer accommodation settlements, lease termination settlements, restructuring charges, fair value adjustments to the valuation of contingent consideration liabilities, gains or losses associated with the sale of businesses and grant benefits recorded related to the AMJP program, which is not commensurate with the core activities of the reporting period in which it is included. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business and as a basis for planning and forecasting. Adjusted EBITDA is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted EBITDA, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

 

ASTRONICS CORPORATION

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA

(Unaudited, $ in thousands)

 

 

 

 

 

 

 

 

Consolidated

 

Three Months Ended

 

Nine Months Ended

 

10/1/2022

 

10/2/2021

 

10/1/2022

 

10/2/2021

Net loss

$

(14,857

)

 

$

(7,174

)

 

$

(28,968

)

 

$

(27,182

)

Add back (deduct):

 

 

 

 

 

 

 

Interest expense

 

2,519

 

 

 

1,795

 

 

 

5,812

 

 

 

5,252

 

Income tax expense (benefit)

 

(2,403

)

 

 

335

 

 

 

6,383

 

 

 

373

 

Depreciation and amortization expense

 

6,817

 

 

 

7,071

 

 

 

20,905

 

 

 

21,950

 

Equity-based compensation expense

 

1,457

 

 

 

1,446

 

 

 

5,178

 

 

 

5,147

 

Contingent consideration liability fair value adjustment

 

 

 

 

 

 

 

 

 

 

(2,200

)

Restructuring-related charges including severance

 

25

 

 

 

492

 

 

 

199

 

 

 

492

 

Legal reserve, settlements and recoveries

 

2,000

 

 

 

 

 

 

2,000

 

 

 

 

Customer accommodation settlement

 

2,100

 

 

 

 

 

 

2,100

 

 

 

 

Lease termination settlement

 

450

 

 

 

 

 

 

450

 

 

 

 

Non-cash accrued 401K contribution

 

1,103

 

 

 

 

 

 

3,300

 

 

 

 

AMJP grant benefit

 

 

 

 

(1,129

)

 

 

(6,008

)

 

 

(1,129

)

Net gain on sale of business

 

 

 

 

 

 

 

(11,284

)

 

 

 

Adjusted EBITDA

$

(789

)

 

$

2,836

 

 

$

67

 

 

$

2,703

 

 

 

 

 

 

 

 

 

Sales

$

131,438

 

 

$

111,841

 

 

$

376,741

 

 

$

328,856

 

Adjusted EBITDA margin

 

(0.6

) %

 

 

2.5

%

 

 

0.0

%

 

0.8 

%

 
 

ASTRONICS CORPORATION

CONSOLIDATED BALANCE SHEET DATA

($ in thousands)

 

   

(unaudited)

 

 

 

   

10/1/2022

 

12/31/2021

ASSETS

   

 

 

 

Cash and cash equivalents

   

$

2,568

 

$

29,757

Accounts receivable and uncompleted contracts

   

 

133,835

 

 

107,439

Inventories

   

 

190,198

 

 

157,576

Other current assets

   

 

20,736

 

 

45,089

Property, plant and equipment, net

   

 

90,640

 

 

95,236

Other long-term assets

   

 

19,953

 

 

21,439

Intangible assets, net

   

 

82,814

 

 

94,320

Goodwill

   

 

58,143

 

 

58,282

Total assets

   

$

598,887

 

$

609,138

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

   

 

 

 

Accounts payable and accrued expenses

   

$

104,440

 

$

91,257

Customer advances and deferred revenue

   

 

29,048

 

 

27,356

Long-term debt

   

 

159,000

 

 

163,000

Other liabilities

   

 

69,311

 

 

70,921

Shareholders' equity

   

 

237,088

 

 

256,604

Total liabilities and shareholders' equity

   

$

598,887

 

$

609,138

 
 

ASTRONICS CORPORATION

CONSOLIDATED CASH FLOWS DATA

(Unaudited, $ in thousands)

 

   

Nine Months Ended

(Unaudited, $ in thousands)

   

10/1/2022

 

10/2/2021

Cash flows from operating activities:

   

 

 

 

Net loss

   

$

(28,968

)

 

$

(27,182

)

Adjustments to reconcile net loss to cash from operating activities:

   

 

 

 

Depreciation and amortization

   

 

20,905

 

 

 

21,950

 

Provisions for non-cash losses on inventory and receivables

   

 

1,033

 

 

 

2,750

 

Equity-based compensation expense

   

 

5,178

 

 

 

5,147

 

Non-cash accrued 401(k) contribution

   

 

3,300

 

 

 

 

Deferred tax benefit

   

 

 

 

 

(145

)

Non-cash severance expense

   

 

 

 

 

182

 

Operating lease non-cash expense

   

 

4,568

 

 

 

3,783

 

Non-cash litigation provision

   

 

2,000

 

 

 

 

Net gain on sale of business, before taxes

   

 

(11,284

)

 

 

 

Contingent consideration liability fair value adjustment

   

 

 

 

 

(2,200

)

Other

   

 

2,997

 

 

 

3,010

 

Cash flows from changes in operating assets and liabilities:

   

 

 

 

Accounts receivable

   

 

(28,196

)

 

 

(15,027

)

Inventories

   

 

(35,444

)

 

 

(3,255

)

Accounts payable

   

 

17,595

 

 

 

(1,883

)

Accrued expenses

   

 

638

 

 

 

1,733

 

Other current assets and liabilities

   

 

(4,015

)

 

 

(666

)

Customer advance payments and deferred revenue

   

 

1,990

 

 

 

(2,215

)

Income taxes

   

 

14,583

 

 

 

217

 

Operating lease liabilities

   

 

(5,715

)

 

 

(4,395

)

Supplemental retirement plan and other liabilities

   

 

(306

)

 

 

(304

)

Cash flows from operating activities

   

 

(39,141

)

 

 

(18,500

)

Cash flows from investing activities:

   

 

 

 

Proceeds on sale of business and assets

   

 

21,981

 

 

 

30

 

Capital expenditures

   

 

(4,283

)

 

 

(4,639

)

Cash flows from investing activities

   

 

17,698

 

 

 

(4,609

)

Cash flows from financing activities:

   

 

 

 

Proceeds from long-term debt

   

 

109,625

 

 

 

20,000

 

Principal payments on long-term debt

   

 

(113,625

)

 

 

(10,000

)

Stock award activity

   

 

104

 

 

 

3,187

 

Finance lease principal payments

   

 

(85

)

 

 

(878

)

Debt acquisition costs

   

 

(968

)

 

 

 

Cash flows from financing activities

   

 

(4,949

)

 

 

12,309

 

Effect of exchange rates on cash

   

 

(797

)

 

 

(521

)

Decrease in cash and cash equivalents

   

 

(27,189

)

 

 

(11,321

)

Cash and cash equivalents at beginning of period

   

 

29,757

 

 

 

40,412

 

Cash and cash equivalents at end of period

   

$

2,568

 

 

$

29,091

 

Supplemental Disclosure of Cash Flow Information

   

 

 

 

Non-Cash Investing Activities:

   

 

 

 

Capital Expenditures in Accounts Payable

   

$

1,392

 

 

$

— 

 
 

ASTRONICS CORPORATION

SALES BY MARKET

(Unaudited, $ in thousands)

 

   

 

 

 

 

 

   

Three Months Ended

 

Nine Months Ended

 

 

   

10/1/2022

10/2/2021

% Change

 

10/1/2022

10/2/2021

% Change

% of Sales

Aerospace Segment

   

 

 

 

 

 

 

 

 

Commercial Transport

   

$

78,389

$

57,549

36.2

%

 

$

211,721

$

143,550

47.5

%

56.2

%

Military

   

 

12,463

 

17,064

(27.0

) %

 

 

41,336

 

54,847

(24.6

) %

11.0

%

General Aviation

   

 

14,751

 

12,109

21.8

%

 

 

48,748

 

41,131

18.5

%

12.9

%

Other

   

 

6,574

 

9,044

(27.3

) %

 

 

21,056

 

26,874

(21.6

) %

5.6

%

Aerospace Total

   

 

112,177

 

95,766

17.1

%

 

 

322,861

 

266,402

21.2

%

85.7

%

 

   

 

 

 

 

 

 

 

 

Test Systems Segment

   

 

19,261

 

16,075

19.8

%

 

 

53,880

 

62,454

(13.7

) %

14.3

%

 

   

 

 

 

 

 

 

 

 

Total Sales

   

$

131,438

$

111,841

17.5

%

 

$

376,741

$

328,856

14.6

%

 

 
 

SALES BY PRODUCT LINE

(Unaudited, $ in thousands)

 

   

 

 

 

 

 

   

Three Months Ended

 

Nine Months Ended

 

 

   

10/1/2022

10/2/2021

% Change

 

10/1/2022

10/2/2021

% Change

% of Sales

Aerospace Segment

   

 

 

 

 

 

 

 

 

Electrical Power & Motion

   

$

46,155

$

38,650

19.4

%

 

$

132,757

$

102,742

29.2

%

35.2

%

Lighting & Safety

   

 

29,740

 

25,461

16.8

%

 

 

90,339

 

76,929

17.4

%

24.0

%

Avionics

   

 

24,172

 

14,491

66.8

%

 

 

67,453

 

47,355

42.4

%

17.9

%

Systems Certification

   

 

3,985

 

6,099

(34.7

) %

 

 

6,656

 

7,937

(16.1

) %

1.8

%

Structures

   

 

1,551

 

2,021

(23.3

) %

 

 

4,600

 

4,565

0.8

%

1.2

%

Other

   

 

6,574

 

9,044

(27.3

) %

 

 

21,056

 

26,874

(21.6

) %

5.6

%

Aerospace Total

   

 

112,177

 

95,766

17.1

%

 

 

322,861

 

266,402

21.2

%

85.7

%

 

   

 

 

 

 

 

 

 

 

Test Systems Segment

   

 

19,261

 

16,075

19.8

%

 

 

53,880

 

62,454

(13.7

) %

14.3

%

 

   

 

 

 

 

 

 

 

 

Total Sales

   

$

131,438

$

111,841

17.5

%

 

$

376,741

$

328,856

14.6

%

 

 
 

ASTRONICS CORPORATION

ORDER AND BACKLOG TREND

(Unaudited, $ in thousands)

 

   

Q4 2021

   

Q1 2022

   

Q2 2022

   

Q3 2022

   

Trailing

Twelve Months

 

   

12/31/2021

   

4/2/2022

   

7/2/2022

   

10/1/2022

   

10/1/2022

Sales

   

 

   

 

   

 

   

 

   

 

Aerospace

   

$

98,836

   

$

101,394

   

$

109,290

   

$

112,177

   

$

421,697

Test Systems

   

 

17,216

   

 

14,782

   

 

19,837

   

 

19,261

   

 

71,096

Total Sales

   

$

116,052

   

$

116,176

   

$

129,127

   

$

131,438

   

$

492,793

 

   

 

   

 

   

 

   

 

   

 

Bookings

   

 

   

 

   

 

   

 

   

 

Aerospace

   

$

147,689

   

$

160,778

   

$

126,012

   

$

165,719

   

$

600,198

Test Systems

   

 

29,651

   

 

14,844

   

 

22,377

   

 

18,433

   

 

85,305

Total Bookings

   

$

177,340

   

$

175,622

   

$

148,389

   

$

184,152

   

$

685,503

 

   

 

   

 

   

 

   

 

   

 

Backlog

   

 

   

 

   

 

   

 

   

 

Aerospace

   

$

334,659

   

$

394,043

   

$

410,765

   

$

464,307

   

 

Test Systems

   

 

81,033

   

 

81,095

   

 

83,635

   

 

82,807

   

 

Total Backlog

   

$

415,692

   

$

475,138

   

$

494,400

   

$

547,114

   

 

N/A

 

   

 

   

 

   

 

   

 

   

 

Book:Bill Ratio

   

 

   

 

   

 

   

 

   

 

Aerospace

   

 

1.49

   

 

1.59

   

 

1.15

   

 

1.48

   

 

1.42

Test Systems

   

 

1.72

   

 

1.00

   

 

1.13

   

 

0.96

   

 

1.20

Total Book:Bill

   

 

1.53

   

 

1.51

   

 

1.15

   

 

1.40

   

 

1.39

 

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