Astronics Corporation (NASDAQ: ATRO), a trusted leader in
innovative, high performance lighting, electrical generation,
control and distribution systems for the global aerospace industry,
today reported sales of $42.9 million for the 2007 first quarter
which ended March 31, a 70% increase compared with sales of $25.3
million in the same period last year. Net income for the first
quarter of 2007 was $4.7 million, or $0.56 per diluted share,
compared with $1.3 million, or $0.16 per diluted share, in the
first quarter of 2006. The sales growth was driven by demand for
the Company�s cabin electronics products, primarily supplied to the
worldwide commercial transport market, and growth from the business
jet market as several new aircraft platforms entered production
during the last six months. Sales for the cabin electronics product
line, which provide a power source for in-flight entertainment
systems and in-seat power for personal electronic devices, were
$22.5 million, a 161% increase from $8.6 million in the first
quarter of 2006. Sales to the business jet market increased 59% to
$7.8 million from $4.9 million last year. These increases were
partially offset by decreased sales to the military market of about
$900 thousand as spare parts orders slowed as compared with the
same period last year. Peter J. Gundermann, President and CEO of
Astronics Corp. commented, �As anticipated, we had a very strong
first quarter from both a sales and earnings perspective. We
continue to see robust demand in all areas of the aerospace
industry. Orders from the airlines around the world remain at a
solid, strong pace as they upgrade their fleets to enhance their
passengers� experience by offering in-seat power and in-flight
entertainment systems. Additionally, we have several new business
jet programs ramping up this year. The balance of the year should
prove to be very exciting for Astronics. At this early point in the
year, we are not making any changes to our revenue expectations for
the year. Our revenue guidance remains at $135 to $140 million.� He
continued, �Because our revenue spiked as expected during the first
quarter and was relatively low in the fourth quarter of last year,
it may be useful to look at those two periods in combination. This
normalizes revenue somewhat relative to costs and smoothes out the
impact of the revenue recognition accounting change we announced
earlier this year, which helped boost our results in the first
quarter at the expense of the fourth. As I mentioned previously, we
expect a strong year, but do not expect our revenue for the next
three quarters to maintain the pace we saw in the first quarter.�
Gross margin for the first quarter was 27.2%, an improvement of 5.8
percentage points from a gross margin of 21.4% in the same period
the prior year. The improved margin for the first quarter of 2007
when compared with the first quarter of 2006 was a result of the
leverage provided by the sales increase offset by a $1.0 million
increase of engineering and development costs. Selling, general and
administrative (SG&A) expenses were $4.3 million for the first
quarter of 2007, up from $3.0 million in the same period the prior
year. As a percentage of sales, SG&A for the quarter declined
to 10.0% compared with 12.0% in the same period the prior year.
Higher labor costs and increased audit and professional fees
contributed to the increase compared with the same period last
year. Outlook Bookings for the first quarter of 2007 were $40.4
million compared with $23.9 million in the first quarter of 2006
and steady with bookings in the fourth quarter of 2006. Backlog at
the end of the first quarter was $97.0 million, compared with $94.7
million and $99.5 million at the end of the first and fourth
quarters of 2006, respectively. Mr. Gundermann concluded, �The
industry is interested in both the power and lighting products we
have to offer, and we are focused on maximizing the extensive sales
opportunities that are available to us right now. Our investment in
development programs over the years is what has led to our current
success. We continue to constantly assess development opportunities
as they become available and invest in those that we believe are
long-term winners and offer the most potential.� First Quarter 2007
Webcast and Conference Call The Company will host a teleconference
at 3 p.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, 8661397. The telephonic replay will be
available from 6 p.m. ET the day of the call through 11:59 p.m. ET
May 15, 2007. ABOUT ASTRONICS CORPORATION Astronics Corporation is
a trusted leader in innovative, high performance lighting,
electrical generation, control and 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, 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
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 3/31/2007� � 4/1/2006� Sales $ 42,875� $ 25,263� Cost of
products sold 31,225� 19,851� Gross margin 27.2% 21.4% Selling
general and administrative � 4,276� � � 3,019� Income from
operations 7,374� 2,393� Operating margin 17.2% 9.5% Interest
expense, net 296� 199� Other (income) expense � (8) � � (12) Income
before tax 7,086� 2,206� Income taxes � 2,391� � � 888� Net Income
$ 4,695� � $ 1,318� � Basic earnings per share: $ 0.58� $ 0.17�
Diluted earnings per share: $ 0.56� $ 0.16� � Weighted average
diluted shares outstanding 8,454� 8,143� � � � � � Capital
Expenditures $ 3,045� $ 645� Depreciation and Amortization � $ 770�
� $ 623� � � ASTRONICS CORPORATION CONSOLIDATED BALANCE SHEET DATA
(unaudited) (in thousands) 3/31/2007� � 12/31/2006� ASSETS: Cash
and cash equivalents $ 346� $ 222� Accounts receivable 24,663�
17,165� Inventories 32,976� 31,570� Other current assets 2,793�
2,699� Property, plant and equipment, net 25,841� 23,436� Other
assets � 7,443� � � 7,446� Total Assets $ 94,062� � $ 82,538� �
LIABILITIES AND SHAREHOLDERS' EQUITY: Current maturities of long
term debt $ 926� $ 923� Note payable 14,500� 8,100� Accounts
payable and accrued expenses 24,993� 25,196� Long-term debt 9,404�
9,426� Other liabilities 7,587� 7,545� Shareholders' equity �
36,652� � � 31,348� Total liabilities and shareholders' equity $
94,062� � $ 82,538� ASTRONICS CORPORATION ORDER AND BACKLOG TREND �
� ($, in thousands) 2006� 2007� Q1 2006 Q2 2006 Q3 2006 Q4 2006
Twelve Months Q1 2007 4/1/06� � 7/1/06� � 9/30/06� � 12/31/06� �
12/31/06� � 3/31/07� Sales � $ 25,263� � $ 28,832� � $ 27,752� � $
28,920� � $ 110,767� � $ 42,875� Net Income � $ 1,318� � $ 1,963� �
$ 1,648� � $ 807� � $ 5,736� � $ 4,695� Bookings � $ 23,850� � $
23,929� � $ 25,985� � $ 40,411� � $ 114,175� � $ 40,351� Backlog �
$ 94,706� � $ 89,803� � $ 88,036� � $ 99,527� � $ 99,527� � $
97,003� Book:Bill 0.94� 0.83� 0.94� 1.40� 1.03� 0.94� � ASTRONICS
CORPORATION SALES BY MARKET ($, in thousands) � Three Months Ended
3/31/2007� � 4/1/2006� � % change� 2007 YTD % � Military $ 6,198� $
7,141� -13% 14% Commercial Transport 28,600� 12,781� 124% 67%
Business Jet 7,752� 4,881� 59% 18% Other 325� 460� -29% 1% � � � �
� � Total $ 42,875� � $ 25,263� � 70% 100% � � � ASTRONICS
CORPORATION SALES BY PRODUCT ($, in thousands) � Three Months Ended
3/31/2007� � 4/1/2006� � % change� 2007 YTD % � Cabin Electronics
22,532� 8,629� 161% 52% Cockpit Lighting $ 8,074� $ 8,073� 0% 19%
Airframe Power 7,620� 4,166� 83% 18% Exterior Lighting 2,255�
1,750� 29% 5% Cabin Lighting 2,069� 2,185� -5% 5% Other 325� 460�
-29% 1% � � � � � � Total $ 42,875� � $ 25,263� � 70% 100%
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