- 42% organic sales growth driven by night vision conversion
program for foreign F-16 fleet EAST AURORA, N.Y., Nov. 8
/PRNewswire-FirstCall/ -- Astronics Corporation (NASDAQ:ATRO), a
leading manufacturer of advanced, high-performance lighting,
electronics and electrical power systems for the global aerospace
industry, reported net income of $0.8 million, or $.10 per diluted
share, for the third quarter of 2005, which ended October 1. This
represents an increase of $1.1 million and $.15 per diluted share
over last year's third quarter loss. Higher net income was driven
by a $12.0 million increase in sales from a combination of the
addition of an acquired business and 42% organic growth. Sales in
the third quarter 2005 were $20.4 million compared with $8.4
million in the third quarter of 2004. Astronics Advanced Electronic
Systems (AES), which was acquired in February of this year,
contributed $8.4 million to the growth in sales. Astronics' organic
sales increased $3.5 million to $12.0 million compared with $8.4
million in the third quarter of 2004. Organic growth was buoyed by
$2.1 million in deliveries of F-16 night vision kits to the
Republic of South Korea. This program should be completed in the
fourth quarter of this year. AES's strong performance reflects
deliveries of power conditioning units for the U. S. Navy's
Tactical Tomahawk missile program, which went into high rate
production during July. Deliveries for the Tactical Tomahawk
missile program are expected to go through December of 2006.
Year-to-date net income grew to $1.6 million, or $.20 per share,
from a loss of $0.1 million, or $(.01) per share for the same
period last year. Sales for the first nine months of 2005 were
$54.9 million compared with $26.4 million for the same period last
year. 2005 organic sales increased 30%, to $34.2 million, while the
acquisition contributed $20.7 million to the total. Operating
profit improved to $1.6 million, or 7.8% of sales, in this year's
third quarter from a loss of $0.4 million, or 4.5% of sales, in the
third quarter of 2004. AES' operating profit for the quarter was
$1.2 million, or 14%, while Astronics' organic business contributed
$0.4 million, or 3%. The improvement in margins of Astronics'
organic business was driven by increased sales volume and improved
product mix, which was partially offset by a $0.2 million increase
in engineering and development costs net of nonrecurring
engineering revenue. On a year-to-date basis, operating profit
improved to $3.6 million from $0.2 million in 2004. The acquisition
contributed $2.7 million, while operating margins for Astronics'
organic business improved $0.7 million to $0.9 million. Peter J.
Gundermann, President and CEO of Astronics, commented, "This
quarter demonstrates the progress we are making on several fronts.
AES continues to exceed our original expectations, both in profit
contribution, as well with the continued development of new
opportunities. At the same time, our organic business continues to
strengthen and build momentum. The aerospace markets remain strong
and strong aircraft build and refurbishment rates tend to result in
measurable interest and demand for our products." He went on to
say, "Looking forward, we expect fourth quarter revenue to continue
in the $20 to $21 million range. During the next six months, we are
expecting an increase in our engineering and development (E&D)
costs. Requirements for the Joint Strike Fighter Program, the
Eclipse micro-jet aircraft and a few, not yet announced, platforms
will converge during the next two to three quarters. Incremental
E&D could vary during the period from a few hundred thousand to
over a half million." Sales to the commercial transport market in
the third quarter of 2005 were $7.9 million, representing
approximately 39% of total sales, compared with $1.5 million and
approximately 17% of total sales in the same period last year.
Higher commercial transport sales reflect the addition of Astronics
AES and its strong market position with its power distribution
products. Business jet market sales were $3.8 million, up 57% from
$2.4 million last year. The growth in sales to the business jet
market was due primarily to increased aircraft production rates.
Military sales were $8.3 million, a 94% increase over sales in the
third quarter of 2004. Contributing to this increase were sales of
F-16 night vision kits totaling $2.1 million in addition to AES
sales for the Tactical Tomahawk power conditioning units. For the
first nine months of 2005, 36% of sales were to the military
market, 41% to the commercial transport market and 22% to the
business jet market. For the first nine months of 2004, Astronics
had sales of 48% to the military market, 19% to the commercial
transport market and 29% to the business jet market. Mr. Gundermann
added, "We like the current diversity we have, not only among the
various markets, but within those markets as well. Even though we
don't necessarily target a certain optimal market mix, but rather
target opportunities that fit our capabilities, the result is that
we have a wide range of customers and are designed on an excellent
breadth of platforms." Bookings for the third quarter were $20.2
million and $58.6 million for the nine-month period. At the end of
the quarter, backlog was $77.6 million, up from backlog of $25.6
million when compared with last year's third quarter, and
relatively flat with backlog of $77.9 at the end of the second
quarter of this year. Third quarter 2005 backlog includes Astronics
AES backlog of $50.0 million. Capital expenditures were $0.4
million for the quarter. Year-to-date capital expenditures were
$1.8 million. Capital spending for the remainder of 2005 is
expected to be in the range of $.6 million to $.8 million.
Depreciation and amortization was $0.7 million in the quarter and
$2.0 million year-to-date. Webcast and Conference Call The release
of the financial results on November 8, 2005, will be followed by a
company-hosted teleconference at 11:00 a.m. ET. During the
teleconference, Peter J. Gundermann, President and CEO, and David
C. Burney, 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 the following ways: *
The live webcast can be found at http://www.astronics.com/.
Participants should go to the website 10 - 15 minutes prior to the
scheduled conference in order to register and download any
necessary audio software. * The teleconference can be accessed by
dialing (303) 262-2139 approximately 5 - 10 minutes prior to the
call. To listen to the archived call: * The archived webcast will
be at http://www.astronics.com/. A transcript will also be posted
once available. * A replay can also be heard by calling (303)
590-3000, and entering passcode 11041571#. The telephonic replay
will be available through Thursday, November 16, 2005 at 11:59 p.m.
ET. ABOUT ASTRONICS CORPORATION Astronics Corporation is a leading
manufacturer of advanced, high- performance lighting and electrical
power distribution systems for the global aerospace industry. Its
strategy is to expand the value and content it provides to various
aircraft platforms through product development and acquisition.
Astronics Corporation, and its wholly-owned subsidiaries Astronics
Advanced Electronic Systems Corp. and Luminescent Systems Inc.,
have a reputation for high quality designs, exceptional
responsiveness, strong brand recognition and best-in-class
manufacturing practices. For more information on Astronics and its
products, visit its website at http://www.astronics.com/. Safe
Harbor Statement This press 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 expression. Because such statements apply to future
events, they are subject to risks and uncertainties that could
cause the 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 industry, the market acceptance of newly developed
products, the ability to cross sell products and expand markets,
internal production capabilities, the timing of orders received,
the status of customer projects, 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 press
release whether to reflect changed assumptions, the occurrence of
unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise. ASTRONICS
CORPORATION CONSOLIDATED INCOME STATEMENT DATA (unaudited) (in
thousands except per share data) Three months ended Nine months
ended 10/1/2005 10/2/2004 10/1/2005 10/2/2004 Sales $20,421 $8,449
$54,916 $26,358 Cost of products sold 15,947 7,469 43,654 22,241
Gross margin 21.9% 11.6% 20.5% 15.6% Selling general and
administrative expense 2,890 1,363 7,692 3,895 Income from
operations 1,584 (383) 3,570 222 Operating margin 7.8% -4.5% 6.5%
0.8% Interest expense 202 61 506 203 Income taxes 592 (85) 1,468 95
Net Income $790 $(359) $1,596 $(76) Basic earnings per share: $0.10
$(0.05) $0.20 $(0.01) Diluted earnings per share: $0.10 $(0.05)
$0.20 $(0.01) Weighted average diluted shares outstanding 8,094
7,762 8,006 7,758 Capital expenditures $432 $279 $1,765 $682
Depreciation and amortization $720 $337 $2,042 $995 ASTRONICS
CORPORATION CONSOLIDATED BALANCE SHEET DATA (unaudited) (in
thousands) 10/1/2005 12/31/2004 ASSETS: Cash and cash equivalents
$1,786 $8,476 Short -term investments - 1,000 Accounts receivable
14,096 5,880 Inventories 18,551 7,110 Prepaid expenses 808 1,356
Deferred income taxes 50 660 Property, plant and equipment, net
21,578 15,221 Other assets 8,965 5,533 Total Assets $65,834 $45,236
LIABILITIES AND SHAREHOLDERS' EQUITY: Current maturities of long
term debt $914 $908 Note payable 7,000 - Accounts payable and
accrued expenses 17,071 4,937 Current liabilities of discontinued
operations - 533 Long-term debt 10,695 11,154 Other liabilities
5,557 5,044 Shareholders' equity 24,597 22,660 Total liabilities
and shareholders' equity $65,834 $45,236 ASTRONICS CORPORATION
SALES BY MARKET ($, in thousands) Three Months Ended 10/1/2005
10/2/2004 % change Military $8,330 $4,289 94.22% Commercial
Transport 7,943 1,459 444.41% Business Jet 3,812 2,427 57.07% Other
336 274 22.63% Total $20,421 $8,449 141.70% Nine Months Ended
10/1/2005 10/2/2004 % change 2005 YTD% Military $19,500 $12,666
53.96% 35.51% Commercial Transport 22,534 4,960 354.31% 41.03%
Business Jet 11,914 7,642 55.90% 21.69% Other 968 1,090 -11.19%
1.76% Total $54,916 $26,358 108.35% 100.00% ASTRONICS CORPORATION
SALES BY PRODUCT ($, in thousands) Three Months Ended 10/1/2005
10/2/2004 % change Cockpit Lighting $8,792 $5,031 74.76% Cabin
Power & Data 4,472 - NA Airframe Power 3,351 - NA External
Lighting 1,933 1,782 8.47% Cabin Lighting 1,537 1,362 12.85% Other
336 274 22.63% Total $20,421 $8,449 141.70% Nine Months Ended
10/1/2005 10/2/2004 % change 2005 YTD% Cockpit Lighting $22,508
$15,028 49.77% 40.99% Cabin Power & Data 12,556 - NA 22.86%
Airframe Power 7,278 - NA 13.25% External Lighting 6,632 5,566
19.15% 12.08% Cabin Lighting 4,974 4,674 6.42% 9.06% Other 968
1,090 -11.19% 1.76% Total $54,916 $26,358 108.35% 100.00% ORDER AND
BACKLOG TREND ($, in thousands) Q1 04 Q2 04 Q3 04 Q4 04 FY 4/3/04
7/3/04 10/2/04 12/31/04 12/31/04 Bookings $13,270 $8,300 $11,700
$9,862 $43,132 Backlog $23,030 $22,300 $25,600 $27,170 $27,170
Book: Bill 1.48 0.93 1.38 1.18 1.24 Nine Q1 05 Q2 05 Q3 05 Months
4/2/05 7/2/05 10/1/05 10/1/05 Bookings $14,868 $23,564 $20,176
$58,608 Backlog $72,292 $77,856 $77,611 $77,611 Book: Bill 0.95
1.25 0.99 1.07 DATASOURCE: Astronics Corporation CONTACT: David C.
Burney, Chief Financial Officer of Astronics Corporation,
+1-716-805-1599, ext. 159, fax +1-716-805-1286, Web site:
http://www.astronics.com/
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