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 $1.9 million for the third quarter of 2006, an increase
of $1.1 million over net income of $0.8 million in the third
quarter of 2005. Earnings per diluted share were $0.23 for the
third quarter of 2006 compared with $0.10 in the same period the
prior year. For the nine months ended September 30, 2006, net
income was $5.1 million, or $0.63 per diluted share, compared with
$1.6 million, or $0.20 per diluted share, for the same period last
year. Sales for the third quarter were $28.5 million, a 40%
increase from $20.4 million in the third quarter of 2005. Over 95%
of the increase, or $7.9 million, can be attributed to higher sales
of the Company�s cabin electronics products, which provide power
for in-flight entertainment and in-seat power systems for the
global commercial airline market. Sales to the business jet market
also increased $2.5 million reflecting increased aircraft
production rates. Military sales were down 26% from the third
quarter last year. The decrease was primarily caused by a $2.2
million decrease in deliveries for F-16 night vision kits for the
Republic of Korea Air Force as the Korean program was concluded in
2005. Sequentially, sales in the third quarter were down 1.7% from
sales in the second quarter reflecting slower demand and production
over the summer. Peter J. Gundermann, President and CEO of
Astronics Corp., commented, �Our strategy to be in the three major
aircraft markets: military, business jet and commercial transport,
has worked very well in this environment of strong commercial
airlines growth, expansion of the business jet market and stable
sales to the military. Commercial and business jet aircraft
manufacturers are seeing continued expansion of their backlogs. As
a result, we believe that 2007 should be another year of solid
growth for Astronics.� Gross margin for the quarter was 22.8%, up
slightly from 21.9% in the third quarter of 2005, as a result of
leverage provided by higher sales. Selling, general and
administrative (SG&A) expenses were $3.5 million up from $2.9
million in the same period the prior year. As a percentage of
sales, SG&A was 12% in this year�s third quarter compared with
14% last year as sales grew at a faster pace than SG&A
spending. Operating profit almost doubled quarter-over-quarter,
from $1.6 million in the third quarter of 2005 to $3.1 million this
year. Nine-Month Period Review For the first nine months of 2006,
sales were $82.5 million, a 50% increase from $54.9 million in the
same period last year. Sales to the commercial transport sector
doubled over the prior year sales to $45.1 million and currently
represent about 55% of total sales. Business jet sales have
improved 40%, when comparing the nine month periods, from $11.9
million to $16.7 million while military sales have remained
relatively flat at $19.7 million for the first nine months of 2006.
Gross margin for the nine month period improved to 22.6% from 20.5%
in the first nine months of 2005 on higher volume. SG&A
increased on an absolute basis to $9.9 million from $7.7 million
during the first nine months last year, but as a percentage of
sales declined to 12% this year compared with 14% for the 2005
nine-month period. Liquidity Cash and cash equivalents at September
30, 2006, was $645 thousand, a decrease from $4.5 million at
December 31, 2005, but an increase from $425 thousand at July 1,
2006. Increased investment in working capital components, primarily
inventory and receivables associated with increasing sales growth
have used cash reserves. Capital expenditures for the third quarter
of 2006 were $693 thousand up from $432 thousand in the same period
last year. For the nine month period, capital expenditures
increased to $2.3 million from $1.8 million in the first nine
months last year. Outlook Bookings for the third quarter of 2006
were $26.0 million, a 29% increase from bookings of $20.2 million
in the third quarter last year. Backlog at the end of the third
quarter was $86.4 million compared with $77.6 million at the end of
the same quarter last year. Mr. Gundermann added, �As we move
through the fourth quarter, we anticipate that we could be at the
high end or somewhat above our estimated sales range of $105
million to $110 million for 2006. We are encouraged by the demand
for aircraft and the success our customers are having with orders
which should contribute to next year�s growth and beyond. Across
the aerospace industry conditions remain strong.� Third Quarter
Webcast and Conference Call The release of the financial results on
November 9, 2006, 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 (913)
312-1267 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 (719) 457-0820,
and entering passcode 2437531. The telephonic replay will be
available through Thursday, November 16, 2006 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 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 certification
processes, the demand for and market acceptance of new or existing
aircraft which contain the Company�s products, such as the Airbus
A380; the Eclipse 500; the Air Canada�s CRJ705, A320, and several
configurations of B767; Cessna single engine aircraft; Cessna
Mustang; Hawker Horizon; the V22 Osprey; Lockheed Martin F-35 JSF;
China Eastern Airlines Corp. Limited�s upgrade of 15 Airbus
A330-300�s and five Airbus A330-200�s; Air China Limited�s upgrades
of 20 Airbus A330-200�s; and F-22 Raptor; 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 � 9/30/2006� � � 10/1/2005� � � � 9/30/2006� � � 10/1/2005�
Sales $ 28,540� $ 20,421� $ 82,505� $ 54,916� Cost of products sold
22,019� 15,947� 63,891� 43,654� Gross margin 22.8% 21.9% 22.6%
20.5% Selling general and administrative � 3,469� � � 2,890� � � �
9,931� � � 7,679� Income from operations 3,052� 1,584� 8,683�
3,583� Operating margin 10.7% 7.8% 10.5% 6.5% Interest expense, net
232� 202� 650� 519� Other (income) expense � (5) � � -� � � � (39)
� � -� Income (loss) before tax 2,825� 1,382� 8,072� 3,064� Income
taxes � 912� � � 592� � � � 2,934� � � 1,468� Net Income $ 1,913� �
$ 790� � � $ 5,138� � $ 1,596� � Basic earnings per share: $ 0.24�
$ 0.10� $ 0.65� $ 0.20� Diluted earnings per share: $ 0.23� $ 0.10�
$ 0.63� $ 0.20� � Weighted average diluted shares outstanding
8,264� 8,094� 8,210� 8,006� � � � � � � � � � Capital Expenditures
$ 693� $ 432� $ 2,300� $ 1,765� Depreciation and Amortization $
701� � $ 720� � � $ 1,960� � $ 2,042� ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA (unaudited) (in thousands) �
9/30/2006� � � 12/31/2005� ASSETS: Cash and cash equivalents $ 645�
$ 4,473� Accounts receivable 18,065� 12,635� Inventories 26,584�
19,013� Other current assets 1,966� 1,401� Property, plant and
equipment, net 21,221� 20,461� Other assets � 7,691� � � 7,874�
Total Assets $ 76,172� � $ 65,857� � LIABILITIES AND SHAREHOLDERS'
EQUITY: Current maturities of long term debt $ 921� $ 914� Note
payable 7,900� 7,000� Accounts payable and accrued expenses 18,843�
15,843� Long-term debt 9,837� 10,304� Other liabilities 6,179�
5,962� Shareholders' equity � 32,492� � � 25,834� Total liabilities
and shareholders' equity $ 76,172� � $ 65,857� ASTRONICS
CORPORATION NET SALES BY MARKET ($, in thousands) � Three Months
Ended Nine Months Ended � 9/30/2006� � � 10/1/2005� � % change� �
9/30/2006� � � 10/1/2005� � % change� 2006 YTD % � Military $
6,136� $ 8,330� -26.3% $ 19,724� $ 19,500� 1.15% 23.9% Commercial
Transport 15,781� 7,943� 98.7% 45,106� 22,534� 100.17% 54.7%
Business Jet 6,340� 3,812� 66.3% 16,668� 11,914� 39.90% 20.2% Other
283� 336� -15.8% 1,007� 968� 4.03% 1.2% � � � � � � � � � � � Total
$ 28,540� � $ 20,421� � 39.8% $ 82,505� � $ 54,916� � 50.24% 100.0%
ASTRONICS CORPORATION NET SALES BY PRODUCT ($, in thousands) �
Three Months Ended Nine Months Ended � 9/30/2006� � � 10/1/2005� �
% change� � 9/30/2006� � � 10/1/2005� � % change� 2006 YTD % �
Cockpit Lighting $ 8,300� $ 8,184� 1.42% $ 23,582� $ 21,597� 9.2%
28.6% Cabin Electronics 12,358� 4,472� 176.34% 33,316� 12,556�
165.3% 40.4% Airframe Power 3,759� 3,959� -5.05% 12,320� 8,189�
50.4% 14.9% External Lighting 1,872� 1,933� -3.16% 5,851� 6,632�
-11.8% 7.1% Cabin Lighting 1,968� 1,537� 28.04% 6,429� 4,974� 29.3%
7.8% Other 283� 336� -15.77% 1,007� 968� 4.0% 1.2% � � � � � � � �
� � � Total $ 28,540� � $ 20,421� � 39.76% $ 82,505� � $ 54,916� �
50.2% 100.0% ASTRONICS CORPORATION ORDER AND BACKLOG TREND � 2005�
2006� ($, in thousands) Q1 2005 Q2 2005 Q3 2005 Q4 2005 Twelve
Months Q1 2006 Q2 2006 Q3 2006 Nine Months 4/2/05� � 7/2/05� �
10/1/05� � 12/31/05� � 12/31/05� 4/1/06� � 7/1/06� � 9/30/06� �
9/30/06� Bookings $ 14,868� � $ 23,564� � $ 20,176� � $ 37,946� � $
96,554� $ 23,850� � $ 23,929� � $ 25,985� � $ 73,764� Backlog $
72,292� � $ 77,856� � $ 77,611� � $ 95,121� � $95,121� $ 94,045� �
$ 88,935� � $ 86,380� � $ 86,380� Book:Bill 0.95� 1.25� 0.99� 1.86�
1.28� 0.96� 0.82� 0.91� 0.89� 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 $1.9 million for the third quarter
of 2006, an increase of $1.1 million over net income of $0.8
million in the third quarter of 2005. Earnings per diluted share
were $0.23 for the third quarter of 2006 compared with $0.10 in the
same period the prior year. For the nine months ended September 30,
2006, net income was $5.1 million, or $0.63 per diluted share,
compared with $1.6 million, or $0.20 per diluted share, for the
same period last year. Sales for the third quarter were $28.5
million, a 40% increase from $20.4 million in the third quarter of
2005. Over 95% of the increase, or $7.9 million, can be attributed
to higher sales of the Company's cabin electronics products, which
provide power for in-flight entertainment and in-seat power systems
for the global commercial airline market. Sales to the business jet
market also increased $2.5 million reflecting increased aircraft
production rates. Military sales were down 26% from the third
quarter last year. The decrease was primarily caused by a $2.2
million decrease in deliveries for F-16 night vision kits for the
Republic of Korea Air Force as the Korean program was concluded in
2005. Sequentially, sales in the third quarter were down 1.7% from
sales in the second quarter reflecting slower demand and production
over the summer. Peter J. Gundermann, President and CEO of
Astronics Corp., commented, "Our strategy to be in the three major
aircraft markets: military, business jet and commercial transport,
has worked very well in this environment of strong commercial
airlines growth, expansion of the business jet market and stable
sales to the military. Commercial and business jet aircraft
manufacturers are seeing continued expansion of their backlogs. As
a result, we believe that 2007 should be another year of solid
growth for Astronics." Gross margin for the quarter was 22.8%, up
slightly from 21.9% in the third quarter of 2005, as a result of
leverage provided by higher sales. Selling, general and
administrative (SG&A) expenses were $3.5 million up from $2.9
million in the same period the prior year. As a percentage of
sales, SG&A was 12% in this year's third quarter compared with
14% last year as sales grew at a faster pace than SG&A
spending. Operating profit almost doubled quarter-over-quarter,
from $1.6 million in the third quarter of 2005 to $3.1 million this
year. Nine-Month Period Review For the first nine months of 2006,
sales were $82.5 million, a 50% increase from $54.9 million in the
same period last year. Sales to the commercial transport sector
doubled over the prior year sales to $45.1 million and currently
represent about 55% of total sales. Business jet sales have
improved 40%, when comparing the nine month periods, from $11.9
million to $16.7 million while military sales have remained
relatively flat at $19.7 million for the first nine months of 2006.
Gross margin for the nine month period improved to 22.6% from 20.5%
in the first nine months of 2005 on higher volume. SG&A
increased on an absolute basis to $9.9 million from $7.7 million
during the first nine months last year, but as a percentage of
sales declined to 12% this year compared with 14% for the 2005
nine-month period. Liquidity Cash and cash equivalents at September
30, 2006, was $645 thousand, a decrease from $4.5 million at
December 31, 2005, but an increase from $425 thousand at July 1,
2006. Increased investment in working capital components, primarily
inventory and receivables associated with increasing sales growth
have used cash reserves. Capital expenditures for the third quarter
of 2006 were $693 thousand up from $432 thousand in the same period
last year. For the nine month period, capital expenditures
increased to $2.3 million from $1.8 million in the first nine
months last year. Outlook Bookings for the third quarter of 2006
were $26.0 million, a 29% increase from bookings of $20.2 million
in the third quarter last year. Backlog at the end of the third
quarter was $86.4 million compared with $77.6 million at the end of
the same quarter last year. Mr. Gundermann added, "As we move
through the fourth quarter, we anticipate that we could be at the
high end or somewhat above our estimated sales range of $105
million to $110 million for 2006. We are encouraged by the demand
for aircraft and the success our customers are having with orders
which should contribute to next year's growth and beyond. Across
the aerospace industry conditions remain strong." Third Quarter
Webcast and Conference Call The release of the financial results on
November 9, 2006, 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 (913)
312-1267 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 (719) 457-0820,
and entering passcode 2437531. The telephonic replay will be
available through Thursday, November 16, 2006 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 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 certification
processes, the demand for and market acceptance of new or existing
aircraft which contain the Company's products, such as the Airbus
A380; the Eclipse 500; the Air Canada's CRJ705, A320, and several
configurations of B767; Cessna single engine aircraft; Cessna
Mustang; Hawker Horizon; the V22 Osprey; Lockheed Martin F-35 JSF;
China Eastern Airlines Corp. Limited's upgrade of 15 Airbus
A330-300's and five Airbus A330-200's; Air China Limited's upgrades
of 20 Airbus A330-200's; and F-22 Raptor; 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. -0- *T ASTRONICS
CORPORATION CONSOLIDATED INCOME STATEMENT DATA
----------------------------------------------------------------------
(unaudited) (in thousands except per share data) Three months ended
Nine months ended 9/30/2006 10/1/2005 9/30/2006 10/1/2005
------------------------------------------------ Sales $ 28,540 $
20,421 $ 82,505 $ 54,916 Cost of products sold 22,019 15,947 63,891
43,654 Gross margin 22.8% 21.9% 22.6% 20.5% Selling general and
administrative 3,469 2,890 9,931 7,679
------------------------------------------------ Income from
operations 3,052 1,584 8,683 3,583 Operating margin 10.7% 7.8%
10.5% 6.5% Interest expense, net 232 202 650 519 Other (income)
expense (5) - (39) -
------------------------------------------------ Income (loss)
before tax 2,825 1,382 8,072 3,064 Income taxes 912 592 2,934 1,468
------------------------------------------------ Net Income $ 1,913
$ 790 $ 5,138 $ 1,596
================================================ Basic earnings per
share: $ 0.24 $ 0.10 $ 0.65 $ 0.20 Diluted earnings per share: $
0.23 $ 0.10 $ 0.63 $ 0.20 Weighted average diluted shares
outstanding 8,264 8,094 8,210 8,006
----------------------------------------------------------------------
Capital Expenditures $ 693 $ 432 $ 2,300 $ 1,765 Depreciation and
Amortization $ 701 $ 720 $ 1,960 $ 2,042
----------------------------------------------------------------------
*T -0- *T ASTRONICS CORPORATION CONSOLIDATED BALANCE SHEET DATA
----------------------------------------------------------------------
(unaudited) (in thousands) 9/30/2006 12/31/2005
------------------------ ASSETS:
---------------------------------------------- Cash and cash
equivalents $ 645 $ 4,473 Accounts receivable 18,065 12,635
Inventories 26,584 19,013 Other current assets 1,966 1,401
Property, plant and equipment, net 21,221 20,461 Other assets 7,691
7,874 ------------------------ Total Assets $ 76,172 $ 65,857
======================== LIABILITIES AND SHAREHOLDERS' EQUITY:
---------------------------------------------- Current maturities
of long term debt $ 921 $ 914 Note payable 7,900 7,000 Accounts
payable and accrued expenses 18,843 15,843 Long-term debt 9,837
10,304 Other liabilities 6,179 5,962 Shareholders' equity 32,492
25,834 ------------------------ Total liabilities and shareholders'
equity $ 76,172 $ 65,857 ======================== *T -0- *T
ASTRONICS CORPORATION NET SALES BY MARKET ($, in thousands) Three
Months Ended 9/30/2006 10/1/2005 % change
------------------------------------ Military $ 6,136 $ 8,330
-26.3% Commercial Transport 15,781 7,943 98.7% Business Jet 6,340
3,812 66.3% Other 283 336 -15.8%
------------------------------------ Total $ 28,540 $ 20,421 39.8%
------------------------------------ Nine Months Ended 2006
9/30/2006 10/1/2005 % change YTD %
--------------------------------- ------ Military $ 19,724 $ 19,500
1.15% 23.9% Commercial Transport 45,106 22,534 100.17% 54.7%
Business Jet 16,668 11,914 39.90% 20.2% Other 1,007 968 4.03% 1.2%
--------------------------------- ------ Total $ 82,505 $ 54,916
50.24% 100.0% --------------------------------- ------ *T -0- *T
ASTRONICS CORPORATION NET SALES BY PRODUCT ($, in thousands) Three
Months Ended 9/30/2006 10/1/2005 % change
------------------------------------ Cockpit Lighting $ 8,300 $
8,184 1.42% Cabin Electronics 12,358 4,472 176.34% Airframe Power
3,759 3,959 -5.05% External Lighting 1,872 1,933 -3.16% Cabin
Lighting 1,968 1,537 28.04% Other 283 336 -15.77%
------------------------------------ Total $ 28,540 $ 20,421 39.76%
------------------------------------ Nine Months Ended 2006
9/30/2006 10/1/2005 % change YTD %
--------------------------------- ------ Cockpit Lighting $ 23,582
$ 21,597 9.2% 28.6% Cabin Electronics 33,316 12,556 165.3% 40.4%
Airframe Power 12,320 8,189 50.4% 14.9% External Lighting 5,851
6,632 -11.8% 7.1% Cabin Lighting 6,429 4,974 29.3% 7.8% Other 1,007
968 4.0% 1.2% --------------------------------- ------ Total $
82,505 $ 54,916 50.2% 100.0% ---------------------------------
------ *T -0- *T ASTRONICS CORPORATION ORDER AND BACKLOG TREND 2005
($, in thousands) Q1 2005 Q2 2005 Q3 2005 Q4 2005 Twelve Months
4/2/05 7/2/05 10/1/05 12/31/05 12/31/05
---------------------------------------------- Bookings $14,868
$23,564 $20,176 $37,946 $96,554
----------------------------------------------------------------------
Backlog $72,292 $77,856 $77,611 $95,121 $95,121
----------------------------------------------------------------------
Book:Bill 0.95 1.25 0.99 1.86 1.28 2006 ($, in thousands) Q1 2006
Q2 2006 Q3 2006 Nine Months 4/1/06 7/1/06 9/30/06 9/30/06
------------------------------------- Bookings $23,850 $23,929
$25,985 $73,764
----------------------------------------------------------------------
Backlog $94,045 $88,935 $86,380 $86,380
----------------------------------------------------------------------
Book:Bill 0.96 0.82 0.91 0.89 *T
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