Astronics Corporation (NASDAQ: ATRO), a leading manufacturer of
advanced, high-performance lighting, electronics and electrical
power systems for the global aerospace industry, reported its
financial results for the 2006 fourth quarter and year which ended
December 31, 2006. The financial statements for 2005 and the first
three quarters of 2006 have been restated as previously announced
on March 6, 2007. The impact of the restatement on the 2005 income
statement as originally reported was to reduce sales and net income
by $1.0 million and $0.4 million respectively. The impact of the
restatement on the 2006 first quarter was to increase sales as
originally reported by $0.3 million and increase net income as
originally reported by $0.1 million. The impact on the second
quarter was to decrease sales as originally reported by $0.2
million and decrease net income as originally reported by $0.1
million, and the impact on the third quarter was to decreases sales
as originally reported by $0.8 million and decrease net income as
originally reported by $0.3 million. Net income for the fourth
quarter of 2006 was $0.8 million compared with net income of $1.0
million in the fourth quarter of 2005. On a per diluted share
basis, earnings were $0.10 for the fourth quarter of 2006 compared
with $0.12 in the same period the prior year. For 2006, net income
increased to $5.7 million or $0.69 per diluted share, compared with
$2.2 million or $0.28 per diluted share for 2005. Sales for the
fourth quarter of 2006 were $28.9 million, up 43% from $20.2
million in the fourth quarter of 2005. Sales to the commercial
transport market, which were up $8.3 million, or 98%, combined with
an increase in sales to the business jet market of $2.8 million, or
80%, more than offset a $2.4 million decline in military sales.
Sequentially, sales in the fourth quarter increased $1.2 million
from sales in the third quarter reflecting increased demand from
the commercial transport market. Gross margin for the quarter was
17.1%, down from 20.3% in the fourth quarter of 2005, and down from
22% in the third quarter of 2006. The lower margin was primarily a
result of product mix, increased engineering and development costs
and more costly low level production rates for new programs that
recently entered production. Selling, general and administrative
(SG&A) expenses were $3.7 million, up from $2.6 million in the
same period the prior year. However, as a percentage of sales,
SG&A for the quarter remained unchanged at 12.6%. Operating
profit was $1.3 million in the fourth quarter of 2006 compared with
$1.6 million in the same period the prior year. Full Year Review
For the full 2006 fiscal year, sales were $110.8 million, a 49%
increase from $74.3 million in 2005. Sales to the commercial
transport market more than doubled for the full year to $61.3
million compared with sales of $30.2 million in 2005, comprising
55% of total sales for the year. Sales to the business jet market
increased 49% for the full year to $22.9 million while military
sales declined slightly to $25.3 million from $27.5 million in
2005. Gross margin in 2006 was 21.0%, up 1 percentage point over
gross margin of 20.0% in 2005. Operating leverage from higher sales
volume was somewhat offset by a $2.0 million increase of
engineering and design costs, related to product development, to
$10.9 million compared with $8.9 million in 2005. On an absolute
basis, SG&A for the full 2006 year increased $3.3 million to
$13.6 million but declined as a percentage of sales to 12.3% in
2006 compared with 13.8% in the prior year. The increase in
SG&A costs was attributable to increases in compensation cost,
costs related to compliance with Sarbanes � Oxley Section 404 and
the adoption of SFAS 123R for stock based compensation expense.
These higher expenses were more than offset by sales growing at a
faster pace than SG&A spending. Peter J. Gundermann, President
and CEO of Astronics Corp., commented, �The Company�s performance
in 2006 was the strongest in our history. Demand was strong across
our product lines, but clearly our strongest growth came from our
cabin electronics products that have been well received by airlines
around the world. We believe our strong performance in 2006 has set
the stage for an even better year in 2007.� Liquidity Cash and cash
equivalents were $222 thousand at December 31, 2006, a decrease
from $4.5 million at December 31, 2005 and $645 thousand at
September 30, 2006. Higher capital expenditures for capacity
expansion and increased investment in working capital components,
primarily inventory and receivables associated with increasing
sales growth, have decreased cash reserves. Capital expenditures
for the fourth quarter of 2006 were $3.1 million compared with $733
thousand in the fourth quarter of 2005. For the full year, capital
expenditures were $5.4 million compared with $2.5 million in the
prior year. In order to accommodate growth, the Company�s East
Aurora, New York facility is being expanded, adding approximately
57,000 square feet to the existing 68,000 square foot facility.
Construction began in the third quarter of 2006 and is expected to
be completed during the second quarter of 2007. The company is also
doubling the size of its Redmond, Washington facility, which is
rented from a private owner. Outlook Bookings for the 2006 fourth
quarter of $40.4 million were up from bookings of $37.9 million in
the fourth quarter of 2005 and up sequentially from $26 million in
the third quarter of 2006. At the end of the fourth quarter 2006,
backlog was at a record $99.5 million. Mr. Gundermann added, �We
performed well in 2006, from both a sales and a profitability
perspective. As we move into 2007, we continue to be optimistic
about the numerous opportunities we see in the market. Most major
aircraft manufacturers are projecting strong production rate
increases in 2007, airlines worldwide continue to pursue fleet
modernization and upgrade initiatives, and exciting new aircraft
are being developed for the future. It adds up to a market which
affords Astronics a strong array of opportunities, and we expect to
do well in the coming year.� Mr. Gundermann concluded, �Many of the
development programs we have been involved in continue to progress,
and some are now moving into production. While the product ramp up
for these programs can be unpredictable, we continue to plan
conservatively and expect to see progress. As a result of strong
market conditions, our new aircraft platform successes, and the
higher content we are supplying to new aircraft, we anticipate
revenue to be in the range of $135 million to $140 million in
2007.� Fourth Quarter and 2006 Webcast and Conference Call The
Company will host a teleconference at 11 a.m. ET today. 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 (973) 935-2970 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 (973) 341-3080,
and entering the pin number, 8540003. The telephonic replay will be
available from 2 p.m. ET the day of the call through 11:59 p.m. ET
March 20, 2007. 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 Twelve months ended 12/31/2006� 12/31/2005
(Restated) � � 12/31/2006� 12/31/2005 (Restated) Sales $ 28,920� $
20,233� $ 110,767� $ 74,354� Cost of products sold 23,969� 16,116�
87,519� 59,484� Gross margin 17.1% 20.3% 21.0% 20.0% Selling
general and administrative � 3,651� � 2,554� � � � 13,582� �
10,246� Income from operations 1,300� 1,563� 9,666� 4,624�
Operating margin 4.5% 7.7% 8.7% 6.2% Interest expense, net 246�
216� 896� 735� Other (income) expense � 50� � (265) � � � 11� �
(278) Income (loss) before tax 1,004� 1,612� 8,759� 4,167� Income
taxes � 197� � 635� � � � 3,023� � 1,930� Net Income $ 807� $ 977�
� � $ 5,736� $ 2,237� � Basic earnings per share: $ 0.10� $ 0.13� $
0.72� $ 0.28� Diluted earnings per share: $ 0.10� $ 0.12� $ 0.69� $
0.28� � Weighted average diluted shares outstanding 8,446� 8,136�
8,269� 8,038� � � � � � � � Capital Expenditures $ 3,100� $ 733� $
5,400� $ 2,498� Depreciation and Amortization $ 969� $ 331� � � $
2,929� $ 2,373� ASTRONICS CORPORATION CONSOLIDATED BALANCE SHEET
DATA (unaudited) (in thousands) 12/31/2006� � 12/31/2005 (Restated)
ASSETS: Cash and cash equivalents $ 222� $ 4,473� Accounts
receivable 17,165� 12,635� Inventories 31,570� 19,381� Other
current assets 2,699� 1,615� Property, plant and equipment, net
23,436� 20,461� Other assets � 7,446� � � 7,874� Total Assets $
82,538� � $ 66,439� � LIABILITIES AND SHAREHOLDERS' EQUITY: Current
maturities of long term debt $ 923� $ 914� Note payable 8,100�
7,000� Accounts payable and accrued expenses 25,196� 16,841�
Long-term debt 9,426� 10,304� Other liabilities 7,545� 5,962�
Shareholders' equity � 31,348� � � 25,418� Total liabilities and
shareholders' equity $ 82,538� � $ 66,439� ASTRONICS CORPORATION
SALES BY MARKET ($, in thousands) � Three Months Ended Twelve
Months Ended 12/31/2006� � 12/31/2005 (Restated) � % change�
12/31/2006� � 12/31/2005 (Restated) � % change� 2006 YTD % �
Military $ 5,614� $ 8,038� -30% $ 25,338� $ 27,538� -8% 23%
Commercial Transport 16,846� 8,505� 98% 61,293� 30,244� 103% 55%
Business Jet 6,262� 3,488� 80% 22,931� 15,402� 49% 21% Other 198�
202� -2% 1,205� 1,170� 3% 1% � � � � � � � � � � � Total $ 28,920�
� $ 20,233� � 43% $ 110,767� � $ 74,354� � 49% 100% � � ASTRONICS
CORPORATION SALES BY PRODUCT ($, in thousands) � Three Months Ended
Twelve Months Ended 12/31/2006� � 12/31/2005(Restated) � % change�
12/31/2006� � 12/31/2005 (Restated) � % change� 2006 YTD % �
Cockpit Lighting $ 7,041� $ 6,821� 3% � $ 30,623� $ 28,417� 8% 28%
Cabin Electronics 13,120� 3,865� 239% 45,778� 15,626� 193% 41%
Airframe Power 4,614� 3,782� 22% 16,934� 11,972� 41% 15% External
Lighting 1,821� 3,257� -44% 7,672� 9,890� -22% 7% Cabin Lighting
2,126� 2,306� -8% 8,555� 7,279� 18% 8% Other 198� 202� -2% 1,205�
1,170� 3% 1% � � � � � � � � � � � Total $ 28,920� � $ 20,233� �
43% $ 110,767� � $ 74,354� � 49% 100% ASTRONICS CORPORATION ORDER
AND BACKLOG TREND � � ($, in thousands) 2005� 2006� Q1 2005 Q2 2005
Q3 2005 Q4 2005 Twelve Months Q1 2006 Q2 2006 Q3 2006 Q4 2006
Twelve Months 4/2/05� 7/2/05� 10/1/05 (Restated) 12/31/05
(Restated) 12/31/05 (Restated) � 4/1/06 (Restated) 7/1/06
(Restated) 9/30/06 (Restated) 12/31/06� 12/31/06� Sales � $ 15,656�
$ 18,839� $ 19,626� $ 20,233� $ 74,354� � $ 25,263� $ 28,832� $
27,752� $ 28,920� $ 110,767� Bookings � $ 14,868� $ 23,564� $
20,176� $ 37,946� $ 96,554� � $ 23,850� $ 23,929� $ 25,985� $
40,411� $ 114,175� Backlog � $ 72,292� $ 77,856� $ 78,406� $
96,119� $ 96,119� � $ 94,706� $ 89,803� $ 88,036� $ 99,527� $
99,527� Book:Bill 0.95� 1.25� 1.03� 1.88� 1.30� 0.94� 0.83� 0.94�
1.40� 1.03� ASTRONICS CORPORATION CONSOLIDATED INCOME STATEMENT
DATA AS RESTATED (unaudited) � (in thousands except per share data)
Three months ended 9/30/2006� 7/1/2006� 4/1/2006� (Restated) �
(Restated) � (Restated) Sales $ 27,752� $ 28,832� $ 25,263� Cost of
products sold 21,633� 22,066� 19,851� Gross margin 22.0% 23.5%
21.4% Selling general and administrative � 3,469� � � 3,443� � �
3,019� Income from operations 2,650� 3,323� 2,393� Operating margin
9.5% 11.5% 9.5% Interest expense, net 232� 219� 199� Other (income)
expense � (5) � � (22) � � (12) Income (loss) before tax 2,423�
3,126� 2,206� Income taxes � 775� � � 1,163� � � 888� Net Income $
1,648� � $ 1,963� � $ 1,318� � Basic earnings per share: $ 0.21� $
0.25� $ 0.17� Diluted earnings per share: $ 0.20� $ 0.24� $ 0.16� �
Weighted average diluted shares outstanding 8,264� 8,223� 8,143� �
� � � � � � Capital Expenditures $ 693� $ 962� $ 645� Depreciation
and Amortization � $ 701� � $ 636� � $ 623�
Astronics (NASDAQ:ATRO)
Historical Stock Chart
From Apr 2024 to May 2024
Astronics (NASDAQ:ATRO)
Historical Stock Chart
From May 2023 to May 2024