- Sales for the quarter were $189.1 million; after adjusting
for the divested semiconductor business, sales increased
5.4%
- Consolidated orders for the quarter were $170.7
million
- Backlog at the end of the quarter was $380 million
- Updated outlook for 2019 reflects rescheduled programs,
delayed business jet antenna program and 737 MAX grounding
Astronics Corporation (Nasdaq: ATRO), a leading supplier of
advanced technologies and products to the global aerospace and
defense industries, today reported financial results for the three
and six months ended June 29, 2019. Earnings per share for prior
periods are adjusted for the 3 for 20 (15%) distribution of Class B
Stock for shareholders of record on October 12, 2018. Financial
results include the divestiture of the Test Systems’ semiconductor
business on February 13, 2019.
Peter J. Gundermann, President and Chief Executive Officer,
commented, “Financial results in the quarter were as expected with
sales, after adjusting for the sale of the semiconductor business,
up 5% over last year’s second quarter, but down from the robust
level we had in the first quarter. For the first half of the year,
adjusted sales were up over 12%. During the quarter we completed
our initial restructuring initiatives in both the Test Systems and
Aerospace segments and expect to realize approximately $8 million
to $9 million in annualized savings beginning in the third quarter
this year.”
He added, “Our outlook for the second half of the year is weaker
than our previous expectations as our business jet antenna program
was delayed due to an unusual satellite failure. We also have seen
indications of a slowdown in demand for connectivity hardware.
While this is concerning for the near term, we remain encouraged
with the opportunities we have in this market because of the
breadth of our product offerings. Airline passengers continue to
indicate that inflight entertainment (IFE) is a critical element of
their flight choice decision and airlines are moving quickly to
determine the best method for delivering this to their customers.
We are uniquely positioned to offer a complete suite of cost
competitive hardware for both the airline’s and the IFE providers’
needs, whatever service is employed.”
For comparability purposes, in addition to reporting
consolidated and segment results of operations on a basis
consistent with U.S. generally accepted accounting principles
(“GAAP”), this press release also contains certain financial
information regarding consolidated sales, operating income and net
income, as well as Test Systems segment sales and operating profit,
adjusted to remove the effects of the divested semiconductor
business from all periods presented. Management believes these
non-GAAP measures are useful to investors in understanding the
performance of the ongoing business. The reconciliation of GAAP
measures to non-GAAP measures is contained in the section labeled
"Reconciliation to Non-GAAP Performance Measures".
Three Months Ended
Six Months Ended
($ in thousands)
June 29,
2019
June 30,
2018
%
Change
June 29,
2019
June 30,
2018
%
Change
Sales
$
189,098
$
208,606
(9.4)
%
$
397,272
$
387,665
2.5
%
Income from Operations
$
10,573
$
20,129
(47.5)
%
$
33,454
$
26,761
25.0
%
Operating margin %
5.6
%
9.6
%
8.4
%
6.9
%
Gain on Sale of Business
$
—
$
—
—
$
80,133
$
—
—
Net Income
$
6,726
$
14,025
(52.0)
%
$
84,872
$
17,319
390.1
%
Net Income %
3.6
%
6.7
%
21.4
%
4.5
%
Adjusted Consolidated Sales
$
186,856
$
177,201
5.4
%
$
391,675
$
349,200
12.2
%
Adjusted Income from Operations
$
8,506
$
9,937
(14.4)
%
$
30,470
$
15,857
92.2
%
Adjusted Operating
margin %
4.6
%
5.6
%
7.8
%
4.5
%
Adjusted Net Income
$
6,339
$
5,878
7.8
%
$
22,446
$
8,648
159.6
%
Adjusted Net Income %
3.4
%
3.3
%
5.7
%
2.5
%
Consolidated Review
Second Quarter 2019 Results (compared with
the prior-year period, unless noted otherwise)
Consolidated sales were down 9.4%, or $19.5 million, including
sales of the semiconductor business which was divested in the first
quarter of 2019. Excluding the divestiture, adjusted consolidated
sales were up 5.4%, or $9.7 million, demonstrating growth in both
the Aerospace and Test Systems segments.
Consolidated operating income decreased to $10.6 million, or
5.6% of sales, compared with
$20.1 million, or 9.6% of sales in the prior-year period. The
decline was primarily due to the divestiture of the semiconductor
business. Adjusted consolidated income from operations excluding
the operations of the divested semiconductor test business was $8.5
million, or 4.6% of adjusted consolidated sales, compared with $9.9
million, or 5.6% of adjusted consolidated sales, in the prior-year
period.
Impacts to operating income and margin included $2.2 million in
severance charges associated with restructuring initiatives, tariff
expenses of $2.3 million and operating losses of $7.7 million
related to the challenged Aerospace businesses. The $7.7 million
operating loss included a charge for inventory reserves of $1.6
million. Operating losses related to challenged Aerospace
businesses were $8.1 million in the second quarter of 2018 and
$10.7 million in the trailing first quarter of 2019.
Mr. Gundermann commented, “We made solid progress with the
restructuring of operations in both our Aerospace and Test Systems
to right-size the organization to our current expectations and
improve our operating performance. We expect that the $8 million to
$9 million in expected annual savings from the restructuring will
begin to be apparent in our third quarter as much of the activity
was completed later in the second quarter. Given the delays in
certain programs, we plan to make additional changes in the
organization over the next several months and would expect
additional restructuring expense, as well as related cost savings,
in future quarters.”
The effective tax rate for the quarter was 23.8%, compared with
18.4% in the second quarter of 2018. The 2019 second quarter tax
rate was unfavorably impacted by the gain on the sale of the
semiconductor business.
Net income was $6.7 million, or $0.20 per diluted share,
compared with $14.0 million, or $0.42 per diluted share in the
prior year.
Bookings were $170.7 million, for a book-to-bill ratio,
excluding semiconductor activity, of 0.91:1. Backlog at the end of
the quarter was $379.7 million. Approximately $263.9 million of
backlog is expected to ship in the remainder of 2019.
Year-to-Date 2019 Results (compared with
the prior-year period, unless noted otherwise)
Consolidated sales were up 2.5%, or $9.6 million. Excluding
sales of the semiconductor business, adjusted consolidated sales
were up 12.2%, or $42.5 million, demonstrating growth in both the
Aerospace and Test Systems segments.
Consolidated operating income improved to $33.5 million, or 8.4%
of sales, compared with
$26.8 million, or 6.9% of sales in the prior-year period.
Adjusted consolidated operating income was $30.5 million, or
7.8% of adjusted consolidated sales, compared with $15.9 million,
or 4.5% of adjusted consolidated sales, in the prior-year period.
Margin expansion was driven by higher volume. These effects more
than offset tariff expenses of $4.0 million and severance charges
of $2.2 million. The challenged Aerospace businesses had $18.4
million of operating losses, which included a charge for inventory
reserves of $3.6 million. Losses from the challenged Aerospace
businesses, including program charges in the first half of 2018,
were $17.1 million.
The effective tax rate for the first six months of 2019 was
22.7%, compared with 18.0% in the same period of 2018. The tax rate
was unfavorably impacted by the gain on the sale of the
semiconductor business.
Net income was $84.9 million, or $2.56 per diluted share,
compared with $17.3 million, or $0.52 per diluted share in the
prior year. The $80.1 million gain on the sale of the semiconductor
test business is expected to contribute $58.8 million to net income
after taxes. Adjusted net income, excluding the divested
semiconductor test business, was $22.4 million in the first six
months of 2019 compared with $8.6 million in the prior-year
period.
Aerospace Segment Review (refer to sales by market and
segment data in accompanying tables)
Aerospace Second Quarter 2019 Results
(compared with the prior-year period, unless noted
otherwise)
Aerospace segment sales increased $8.1 million, or 4.9%, to
$174.3 million, although Aerospace sales declined sequentially from
$188.5 million in the first quarter of 2019.
Electrical Power & Motion sales increased $16.4 million, or
24.2%, due primarily to higher sales in cabin power products. Sales
of Lighting & Safety products were up $2.6 million due to an
increase in sales of lighting products partially offset by lower
sales of passenger service units. Avionics sales were down $10.6
million compared with the prior-year period due to a lower demand
in the quarter for inflight entertainment and connectivity (“IFEC”)
products.
Aerospace operating profit was $14.4 million, or 8.3% of sales,
compared with $18.2 million, or 11.0% of sales, in the same period
last year. Aerospace operating profit benefited from higher volume,
offset by $2.3 million in tariffs. The challenged Aerospace
businesses had $7.7 million of
operating losses, including a $1.6 million inventory reserve.
Operating losses for the challenged Aerospace businesses in the
second quarter of 2018 were $8.1 million including a $1.6
million
program charge recognized due to the revision of estimated costs
to complete a long-term contract.
Restructuring initiatives are expected to provide approximately
$3 million in annual savings for the Aerospace segment beginning in
the third quarter of 2019.
Aerospace bookings in the second quarter of 2019 were $157.6
million, for a book-to-bill ratio of 0.90:1. Backlog was $310.6
million at the end of the second quarter of 2019.
Mr. Gundermann commented, “Demand during the quarter was
negatively affected by a couple of events in the industry. The
first of these was the unusual loss of a satellite in April that
was critical to our planned connectivity system for large business
jets. This loss has caused the program to be paused this year,
which lowers anticipated shipments and delays the revival of our
AeroSat business. The second event is the industry’s concern
related to Boeing’s 737 MAX situation, which negatively affects our
volume for the 737 MAX production line, but also complicates fleet
management plans for airlines, which in some cases may delay
certain upgrade initiatives until resolution is apparent.”
Mr. Gundermann continued, “Despite the $7.7 million operating
loss from our three challenged aerospace businesses, we are making
good progress towards break-even. We have line of sight to this end
for two of the three businesses. The third, AeroSat, faces a more
difficult task with the delay in the tail-mount antenna program for
large business jets. This delay hurt AeroSat’s financial
performance in the second quarter, when it generated about 70% of
the trio’s collective operating loss. We are watching the situation
closely and will be deciding an appropriate action as the situation
becomes clearer.”
Aerospace Year-to-Date 2019 Results
(compared with the prior-year period, unless noted
otherwise)
Aerospace segment sales increased by $32.0 million, or 9.7%, to
$362.8 million when compared with the prior year’s first six
months.
Electrical Power & Motion sales increased $36.3 million, or
25.8%, and Lighting & Safety sales increased $9.6 million, both
for similar reasons as in the quarter. Sales of Avionics products
were down $9.8 million to $59.5 million, and Systems Certification
sales decreased $4.0 million compared with the first six months of
2018.
Aerospace operating profit was $40.2 million, or 11.1% of sales,
compared with $31.3 million, or 9.5% of sales, in the same period
last year. Aerospace operating profit in the first six months of
2019 benefited from higher volume and $2.3 million lower
amortization expense related to acquired intangible assets. These
benefits were offset by $4.0 million in tariffs and $18.4 million
in operating losses from the challenged businesses, which included
$3.6 million in inventory reserves. Operating profit in the first
half of 2018 was negatively impacted by $17.1 million in operating
loss from challenged Aerospace businesses and $1.4 million in
acquisition-related inventory step-up expense.
Test Systems Segment Review (refer to sales by market and
segment data in accompanying tables)
Test Systems Second Quarter 2019 Results
(compared with the prior-year period, unless noted
otherwise)
Test Segment sales decreased $27.6 million to $14.8 million as a
result of the divestiture of the semiconductor business. Adjusted
Test Systems segment sales, excluding the semiconductor test
business from both periods, were up $1.6 million, or 14%, to $12.6
million.
The Test segment was essentially breakeven in the quarter
compared with operating profit of
$6.2 million in last year’s second quarter. Adjusted for the
sale of the semiconductor business, there was an operating loss of
$2.2 million compared with an operating loss of $3.9 million in the
prior-year period. Impacting the loss in the quarter were severance
charges of $2.0 million related to the restructuring initiatives,
which are expected to provide savings of $5 million to $6 million
beginning in the third quarter.
Bookings for the Test Systems segment in the quarter were $13.0
million, for a book-to-bill ratio, excluding semiconductor
activity, of 1.01:1 for the quarter. Backlog was $69.1 million at
the end of the second quarter of 2019.
Mr. Gundermann commented, “Our Test business accomplished a
major restructuring in the quarter that will help it adjust to the
road ahead, subsequent to the sale of our semiconductor test
business. In July, we acquired Freedom Communications Technologies,
which represents a nice market and technology extension for our
remaining test business. We are pleased to have Freedom as part of
our team and are excited to see what we can accomplish
together.”
Test Systems Year-to-Date 2019 Results
(compared with the prior-year period, unless noted
otherwise)
Test Segment sales decreased $22.4 million to $34.5 million
compared with $56.9 million in the prior-year period. Adjusted Test
Systems segment sales, excluding the semiconductor test business
from both periods, were up 57% compared with the prior year to
$28.9 million, driven by growth in the Aerospace & Defense
market.
Operating profit for the segment was $2.1 million, or 6.0% of
sales, compared with operating income of $4.3 million in the
prior-year period. Adjusted for the sale of the semiconductor
business, there was an operating loss for the segment of $0.9
million which was mostly the result of
$2.0 million in restructuring costs. Operating loss in the
prior-year period adjusted for the divestiture of the semiconductor
business was $6.6 million.
2019 Outlook
Consolidated sales are expected to be in the range of $740
million to $775 million, of which
$680 million to $700 million is expected from the Aerospace
segment and $60 million to $75 million is expected from the Test
segment.
Mr. Gundermann concluded, “The approximate 5% reduction at the
mid-point of our expectations for the Aerospace segment reflects
the impact of the delay of the business jet antenna program and the
related satellite failure, along with some softening of demand for
IFEC products, which we believe is at least in part a result of the
737 MAX situation, and the delay into 2020 of an unrelated customer
program. We are disappointed with the confluence of these events
and are looking more closely at changes to the organization to
align costs with our new revenue expectations. In the meantime, we
expect the restructuring initiatives we completed in the second
quarter will generate approximately $8 million to $9 million in
annual savings that should be realized beginning in the third
quarter and should help to offset the impact on margin of lower
volume.”
Consolidated backlog at June 29, 2019 was $379.7 million.
Approximately 70% of the backlog is expected to ship in 2019.
The effective tax rate for 2019, excluding the impact of the
gain on the sale of the semiconductor business, is expected to be
in the range of 15% to 19%.
Capital equipment spending in 2019 is expected to be between $22
million to $28 million.
Second Quarter 2019 Webcast and Conference Call
The Company will host a teleconference today at 10:00 a.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
www.astronics.com. To listen to the archived call, dial (412)
317-6671 and enter replay pin number 13692264. The telephonic
replay will be available from 1:00 p.m. on the day of the call
through Monday, August 19, 2019. A transcript will also be posted
to the Company’s Web site once available.
About Astronics Corporation
Astronics Corporation (Nasdaq: ATRO) is a leading supplier of
advanced technologies and products to the global aerospace and
defense industries. Astronics’ products and services include
advanced, high-performance electrical power generation and
distribution systems, seat motion solutions, lighting and safety
systems, avionics products, aircraft structures, systems
certification and automated test systems. Astronics’ strategy is to
increase its value by developing technologies and capabilities,
either internally or through acquisition, and using those
capabilities to provide innovative solutions to its targeted
markets and other markets where its technology can be beneficial.
Through its wholly owned subsidiaries, Astronics has a reputation
for high-quality designs, exceptional responsiveness, strong brand
recognition and best-in-class manufacturing practices. The Company
routinely posts news and other important information on its website
at www.astronics.com.
For more information on Astronics and its products, visit its
Web site at www.astronics.com.
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. 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 progress
being made with the three operations having losses, the
continuation of the trend in growth with passenger power and
connectivity on airplanes, the ability of the Company to advance
its Test business, the ability to achieve at or near breakeven
performance in the Test business, the Company’s ability to deliver
a solid 2019, the ability to win new projects in the Test business
and margins to expand with growth, the success of the Company
achieving its sales expectations, 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 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 INCOME STATEMENT
DATA
(Unaudited, $ in thousands except
per share data)
Three
Months Ended
Six
Months Ended
6/29/2019
6/30/2018
6/29/2019
6/30/2018
Sales
$
189,098
$
208,606
$
397,272
$
387,665
Cost of products sold
148,735
159,034
304,832
300,961
Gross profit
40,363
49,572
92,440
86,704
Gross margin
21.3
%
23.8
%
23.3
%
22.4
%
Selling, general and administrative
29,790
29,443
58,986
59,943
SG&A % of sales
15.8
%
14.1
%
14.8
%
15.5
%
Income from operations
10,573
20,129
33,454
26,761
Operating margin
5.6
%
9.6
%
8.4
%
6.9
%
Gain on sale of business
—
—
80,133
—
Other expense, net of other income
518
463
733
838
Interest expense, net
1,225
2,484
3,029
4,815
Income before tax
8,830
17,182
109,825
21,108
Income tax expense
2,104
3,157
24,953
3,789
Net income
$
6,726
$
14,025
$
84,872
$
17,319
Net income % of
sales
3.6
%
6.7
%
21.4
%
4.5
%
*Basic earnings per share:
$
0.21
$
0.43
$
2.60
$
0.54
*Diluted earnings per share:
$
0.20
$
0.42
$
2.56
$
0.52
*Weighted average diluted shares
outstanding (in thousands)
33,175
33,122
33,193
33,068
Capital expenditures
$
3,443
$
4,148
$
6,917
$
8,495
Depreciation and amortization
$
7,904
$
8,743
$
15,980
$
18,584
*Prior-year share quantities and per-share data have been
restated to reflect the impact of the fifteen percent Class B stock
distribution to shareholders of record on October 12, 2018.
SEGMENT DATA
(Unaudited, $ in thousands)
Three
Months Ended
Six
Months Ended
6/29/2019
6/30/2018
6/29/2019
6/30/2018
Sales
Aerospace
$
174,292
$
166,257
$
362,793
$
330,857
Less inter-segment
(5)
(53)
(5)
(53)
Total Aerospace
174,287
166,204
362,788
330,804
Test Systems
14,925
42,402
34,649
56,861
Less inter-segment
(114)
—
(165)
—
Total Test Systems
14,811
42,402
34,484
56,861
Total consolidated sales
189,098
208,606
397,272
387,665
Segment operating profit and
margins
Aerospace
14,392
18,200
40,160
31,315
8.3
%
11.0
%
11.1
%
9.5
%
Test Systems
(94)
6,247
2,091
4,318
(0.6)
%
14.7
%
6.0
%
7.6
%
Total segment operating profit
14,298
24,447
42,251
35,633
Gain on sale of business
—
—
80,133
—
Interest expense
1,225
2,484
3,029
4,815
Corporate expenses and
other
4,243
4,781
9,530
9,710
Income before taxes
$
8,830
$
17,182
$
109,825
$
21,108
Reconciliation to Non-GAAP Performance Measures
The Company’s press release contains financial information
regarding consolidated sales, operating income and net income, as
well as Test Systems segment sales and operating profit, as
adjusted to remove the effects of the semiconductor business from
all periods presented. Each of these adjusted balances are non-GAAP
performance measures. Management believes these non-GAAP measures
are useful to investors in understanding the performance of the
ongoing business.
(Unaudited, $ in thousands)
Consolidated
Three
Months Ended
Six
Months Ended
6/29/2019
6/30/2018
6/29/2019
6/30/2018
Sales
Consolidated sales
$
189,098
$
208,606
$
397,272
$
387,665
Non-GAAP Adjustment - Remove
effect of semiconductor business*
(2,242)
(31,405)
(5,597)
(38,465)
Adjusted Consolidated Sales
$
186,856
$
177,201
$
391,675
$
349,200
Income from Operations
Consolidated income from
operations
10,573
20,129
$
33,454
$
26,761
Non-GAAP Adjustment - Remove
effect of semiconductor business*
(2,067)
(10,192)
(2,984)
(10,904)
Adjusted Income from Operations
$
8,506
$
9,937
$
30,470
$
15,857
4.6
%
5.6
%
7.8
%
4.5
%
Net Income
Consolidated net income
$
6,726
$
14,025
$
84,872
$
17,319
Non-GAAP Adjustment - Remove
effect of semiconductor business*
(387)
(8,147)
(62,426)
(8,671)
Adjusted Net Income
$
6,339
$
5,878
$
22,446
$
8,648
Test Segment
Test Segment Sales
Test Segment Sales
$
14,811
$
42,402
$
34,484
$
56,861
Non-GAAP Adjustment - Remove
effect of semiconductor business*
(2,242)
(31,405)
(5,597)
(38,465)
Adjusted Test Segment Sales
$
12,569
$
10,997
$
28,887
$
18,396
Loss from Test Segment
Operations
Income (loss) from Test Segment
operations
(94)
6,247
$
2,091
$
4,318
Non-GAAP Adjustment - Remove
effect of semiconductor business*
(2,067)
(10,192)
(2,984)
(10,904)
Adjusted Loss from Test Segment
Operations
$
(2,161)
$
(3,945)
$
(893)
$
(6,586)
(17.2)
%
(35.9)
%
(3.1)
%
(35.8)
%
* The non-GAAP adjustment eliminates all semiconductor test
sales and associated direct costs from all periods presented. There
are significant indirect costs, overheads, and other general and
administrative costs that are not included in the non-GAAP
adjustment, as such functions benefited all operations and products
within the Test Systems segment and have not been eliminated as a
result of the divestiture. The non-GAAP adjustment to net income
for the three-month and six-month period ended June 29, 2019 also
eliminates the impact of the gain on the sale of the semiconductor
business, net of tax at the forecasted consolidated tax rate for
2019.
ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET
DATA
($ in thousands)
(unaudited)
6/29/2019
12/31/2018
ASSETS
Cash and cash equivalents
$
17,106
$
16,622
Accounts receivable and uncompleted
contracts
177,102
182,308
Inventories
142,853
138,685
Other current assets
17,587
17,198
Assets held for sale
—
19,358
Property, plant and equipment, net
117,389
120,862
Other long-term assets
45,189
21,272
Intangible assets, net
125,039
133,383
Goodwill
124,998
124,952
Total assets
$
767,263
$
774,640
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current maturities of long-term debt
$
170
$
1,870
Accounts payable and accrued expenses
94,018
98,436
Customer advances and deferred revenue
25,402
26,880
Liabilities held for sale
—
906
Long-term debt
122,113
232,112
Other liabilities
50,594
27,811
Shareholders' equity
474,966
386,625
Total liabilities and shareholders'
equity
$
767,263
$
774,640
ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS
DATA
(Unaudited, $ in thousands)
Six
Months Ended
6/29/2019
6/30/2018
Cash flows from operating
activities:
Net income
$
84,872
$
17,319
Adjustments to reconcile net income to
cash provided by (used for) operating activities:
Depreciation and
amortization
15,980
18,584
Provisions for non-cash losses
on inventory and receivables
4,223
1,819
Equity-based compensation
expense
2,145
1,637
Deferred tax benefit
(3,371)
(516)
Gain on sale of business
(80,133)
—
Other
263
(431)
Cash flows from changes in
operating assets and liabilities:
Accounts receivable
5,266
(33,347)
Inventories
(11,070)
(19,761)
Accounts payable
(7,685)
7,981
Accrued expenses
(9,141)
53
Other current assets and
liabilities
(975)
(404)
Customer advanced payments and
deferred revenue
(1,234)
14,469
Income taxes
9,181
(189)
Supplemental retirement and
other liabilities
735
896
Cash provided by (used for) operating
activities
9,056
8,110
Cash flows from investing
activities:
Proceeds on sale of
business
103,793
—
Capital expenditures
(6,917)
(8,495)
Cash provided by (used for) investing
activities
96,876
(8,495)
Cash flows from financing
activities:
Proceeds from long-term
debt
27,000
30,015
Payments for long-term debt
(132,053)
(36,416)
Debt acquisition costs
—
(516)
Proceeds from exercise of stock
options
416
281
Other Financing Activities
(834)
—
Cash (used for) provided by financing
activities
(105,471)
(6,636)
Effect of exchange rates on cash
23
(285)
Decrease in cash and cash equivalents
484
(7,306)
Cash and cash equivalents at beginning of
period
16,622
17,914
Cash and cash equivalents at end of
period
$
17,106
$
10,608
ASTRONICS CORPORATION
SALES BY
MARKET
(Unaudited, $ in thousands)
Three Months Ended
Six Months Ended
6/29/2019
6/30/2018
%
Change
6/29/2019
6/30/2018
%
Change
% of Sales
Aerospace Segment
Commercial Transport
$
129,731
$
132,797
(2.3)
%
$
271,509
$
265,847
2.1
%
68.4
%
Military
19,545
16,270
20.1
%
40,498
30,285
33.7
%
10.2
%
Business Jet
17,286
10,338
67.2
%
37,123
21,002
76.8
%
9.3
%
Other
7,725
6,799
13.6
%
13,658
13,670
(0.1)
%
3.4
%
Aerospace Total
174,287
166,204
4.9
%
362,788
330,804
9.7
%
91.3
%
Test Systems Segment excluding
Semiconductor
12,569
10,997
14.3
%
28,888
18,396
57.0
%
7.3
%
Total sales excluding
Semiconductor
186,856
177,201
5.4
%
391,676
349,200
12.2
%
98.6
%
Test-Semiconductor
2,242
31,405
(92.9)
%
5,596
38,465
(85.5)
%
1.4
%
Total Sales
$
189,098
$
208,606
(9.4)
%
$
397,272
$
387,665
2.5
%
SALES BY
PRODUCT LINE
(Unaudited, $ in thousands)
Three
Months Ended
Six
Months Ended
6/29/2019
6/30/2018
%
Change
6/29/2019
6/30/2018
%
Change
% of Sales
Aerospace Segment
Electrical Power &
Motion
$
84,042
$
67,643
24.2
%
$
176,579
$
140,321
25.8
%
44.5
%
Lighting & Safety
46,770
44,121
6.0
%
95,375
85,763
11.2
%
24.0
%
Avionics
25,682
36,272
(29.2)
%
59,543
69,295
(14.1)
%
15.0
%
Systems Certification
4,048
4,872
(16.9)
%
5,666
9,655
(41.3)
%
1.4
%
Structures
6,020
6,497
(7.3)
%
11,967
12,100
(1.1)
%
3.0
%
Other
7,725
6,799
13.6
%
13,658
13,670
(0.1)
%
3.4
%
Aerospace Total
174,287
166,204
4.9
%
362,788
330,804
9.7
%
91.3
%
Test Systems Segment excluding
Semiconductor
12,569
10,997
14.3
%
28,888
18,396
57.0
%
7.3
%
Total sales excluding
Semiconductor
186,856
177,201
5.4
%
391,676
349,200
12.2
%
98.6
%
Test-Semiconductor
2,242
31,405
(92.9)
%
5,596
38,465
(85.5)
%
1.4
%
Total Sales
$
189,098
$
208,606
(9.4)
%
$
397,272
$
387,665
2.5
%
ASTRONICS CORPORATION
ORDER
AND BACKLOG TREND
(Unaudited, $ in thousands)
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Trailing Twelve Months
9/29/2018
12/31/2018
3/30/2019
6/29/2019
6/29/2019
Sales
Aerospace
$
169,579
$
175,242
$
188,501
$
174,287
$
707,609
Test Systems (excluding Semi)
33,596
15,482
16,319
12,569
77,966
Sales (excluding Semi)
203,175
190,724
204,820
186,856
785,575
Test-Semiconductor
9,499
12,193
3,354
2,242
27,288
Total Sales
$
212,674
$
202,917
$
208,174
$
189,098
$
812,863
Bookings
Aerospace
$
196,671
$
175,554
$
191,701
$
157,631
$
721,557
Test Systems (excluding Semi)
29,976
43,300
11,812
12,675
97,763
Bookings (excluding Semi)
226,647
218,854
203,513
170,306
819,320
Test-Semiconductor
7,161
1,510
1,470
354
10,495
Total Bookings
$
233,808
$
220,364
$
204,983
$
170,660
$
829,815
Backlog*
Aerospace
$
325,735
$
326,047
$
329,247
$
310,590
Test Systems (excluding Semi)
38,618
66,436
61,929
62,035
Backlog (excluding Semi)
364,353
392,483
391,176
372,625
Test-Semiconductor
33,717
23,034
8,975
7,087
Total Backlog
$
398,070
$
415,517
$
400,151
$
379,712
N/A
Book:Bill Ratio**
Aerospace
1.16
1.00
1.02
0.90
1.02
Test Systems excl. Semi
0.89
2.80
0.72
1.01
1.25
Total Book:Bill excl. Semi
1.12
1.15
0.99
0.91
1.04
(*) During the first quarter of 2019, Test Systems segment
backlog of approximately $12.2 million was disposed of in the
divestiture of the semiconductor business. Aerospace backlog of
approximately $2.0 million has been removed in the second quarter
of 2019 above related to the airfield lighting product line, which
was divested in July 2019.
(**) Calculations of Test Systems and Total Book:Bill excludes
the total semiconductor business, which does include residual
warranty backlog that is expected to be recognized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190805005243/en/
Company: David C. Burney, Chief Financial Officer Phone:
(716) 805-1599, ext. 159 Email: david.burney@astronics.com
Investor Relations: Deborah K. Pawlowski, Kei Advisors LLC
Phone: (716) 843-3908 Email: dpawlowski@keiadvisors.com
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