- Fourth quarter sales of $114.8 million; full year sales of
$502.6 million
- Fourth quarter pre-tax loss of $7.5 million and net loss of
$20.0 million due to the non-cash reserve of $14.1 million against
deferred tax assets
- Fourth quarter Adjusted EBITDA* was $2.9 million
- Fourth quarter bookings were $116.0 million, demonstrating
sequential improvement
- Backlog at end of the year was $283.4 million
*Adjusted EBITDA is a Non-GAAP Performance Measure. Please see
the attached table for a reconciliation of Adjusted EBITDA to GAAP
net income/(loss).
Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the
“Company”), a leading supplier of advanced technologies and
products to the global aerospace, defense and other mission
critical industries, today reported financial results for the three
and twelve months ended December 31, 2020.
Peter J. Gundermann, President and Chief Executive Officer,
commented, “Even while the commercial aerospace industry continues
to be challenged, there was some good news in the quarter.
- We had sequential improvement in Aerospace bookings.
- We were cash positive in the quarter, generating $5.8 million
in cash from operations reflecting the impact of our restructuring
efforts.
- We had strong Test bookings driven by the transit test order
from Stadler Rail for the Metro Atlanta Rapid Transit Authority
(MARTA).
- The 737 MAX was recertified to fly in the U.S. in late
December, which is important as the MAX was our biggest OEM
production program before the pandemic.
Perhaps the best news from the quarter was the initial approval
of multiple effective COVID-19 vaccines, which we expect will
result in increased demand for air travel later in 2021. To this
end, we are seeing positive signs that demand is picking up in our
aerospace business, though conditions currently remain depressed.
In the meantime, we are carefully managing our cost structure,
pursuing new opportunities and advancing development programs for
our customers.”
Fourth Quarter and 2020 Summary and
Review of Demand by Major Markets
Fourth quarter revenue was $114.8 million, down 42.1% from the
comparator period of 2019, but up 7.8% sequentially from the third
quarter. The Company incurred a pre-tax loss of $7.5 million. The
Company’s net loss of $20.0 million included a $14.1 million
non-cash tax expense reflecting a reserve recorded against its
deferred tax assets. Adjusted EBITDA was $2.9 million, or 2.5% of
sales, up $3.0 million sequentially from the third quarter of
2020.
Revenue in 2020 was $502.6 million, down 35% compared with 2019
as a direct result of the global pandemic. Net loss for the year
was $115.8 million while Adjusted EBITDA was $28.8 million as the
Company rapidly adjusted to the new environment by aggressively
adjusting its cost structure to changes in demand.
The Company evaluates three revenue streams to monitor demand
and analyze the impact of the pandemic to its business. These are
(1) the commercial aircraft market, which includes OEM line fit and
airline aftermarket business, (2) defense and other government
markets, and (3) general aviation.
- Commercial aerospace has been heavily impacted by the pandemic
and was about $263 million of 2020 revenue, or 52% of total
revenue, down nearly 50%. Aircraft build rates are expected to
improve modestly during 2021 from current levels as production of
the 737 MAX picks up. The aftermarket is expected to strengthen
over the course of the year as aircraft utilization and load
factors increase.
- Defense and government markets, which were about 30% of 2020
revenue, have remained relatively strong through the pandemic,
totaling approximately $149 million. This includes our military
aircraft programs and the majority of our Test business.
- General aviation demand contracted about 11% to approximately
$60 million, or 12% of revenue. Most of our general aviation
revenue is line fit driven by the manufacture of new aircraft,
although there is some amount of aftermarket business as well. New
build rates for business jet aircraft are expected to improve in
2021 from current levels.
- Other revenue was $27 million in 2020, about 5% of revenue, and
was up about 10% over 2019.
Peter J. Gundermann stated, “We are glad to put 2020 behind us.
The pandemic hit our core aerospace business hard early in the
year, but our team demonstrated resilience and flexibility in the
midst of very trying times. We enacted protocols to protect our
employees and dramatically reduced our cost structure. Though we
continue to be heavily impacted by difficult conditions in the
commercial aerospace industry, we are prepared for the recovery and
look forward to improved market conditions as the vaccines take
hold and demand returns to our industry.”
Liquidity and Financing
On May 4, 2020, the Company executed an amendment to the credit
agreement (the “amended facility”) which reduced the revolving
credit line from $500 million to $375 million with an option to
increase the line by up to $150 million. The amended facility
suspends the application of the maximum net leverage ratio covenant
up through and including the second quarter of 2021. The maximum
net leverage ratio on a trailing twelve-month basis will be 6.00 to
1 for the third quarter of 2021, 5.50 to 1 for the fourth quarter
of 2021, 4.50 to 1 for the first quarter of 2022, and return to
3.75 to 1 in the second quarter of 2022 and thereafter. At the end
of 2020, the Company had $173.0 million drawn on the facility, with
net debt of $132.6 million.
Other financial covenants include that through the second
quarter of 2021, the Company is required to maintain a minimum
interest coverage ratio of 1.75x on a quarterly basis, except for
the first quarter of 2021, which is set at 1.50x. In addition,
through the third quarter of 2021, the Company must maintain
minimum liquidity, defined as unrestricted cash plus the unused
revolving credit commitments, of $180 million at all times. The
amended facility also temporarily restricts certain activities,
including acquisitions and share repurchases, and requires
mandatory prepayments during the suspension period when the
Company’s cash balance exceeds $100 million.
Year-to-date cash flow from operations totaled $37.3 million.
Operating cash flows were used primarily to reduce long-term debt
by $15 million during 2020. The Company was compliant with its debt
covenants as of the end of the fourth quarter.
In February 2021, the Company was notified by the acquirer of
its semiconductor business, which was sold in February 2019, that
$10.7 million is payable to the Company for earnouts related to
2020. The Company is currently reviewing the calculations and
underlying data and expects to record the additional gain on the
sale in the first quarter of 2021 when that review is complete.
David C. Burney, Chief Financial Officer, commented, “Given our
forecast expectations, and the structure of our revised lending
agreement, combined with earnouts from the sale of the
semiconductor business, we expect to have sufficient liquidity to
operate through the COVID-19 pandemic and its economic impacts. We
expect to remain compliant with our debt covenants through 2021
based on our current outlook.”
Consolidated Review
Three Months Ended
Year Ended
($ in thousands)
December
31, 2020
December
31, 2019
%
Change
December
31, 2020
December
31, 2019
%
Change
Sales
$
114,803
$
198,412
(42.1
)
%
$
502,587
$
772,702
(35.0
)
%
(Loss) Income from
Operations
$
(5,469
)
$
(36,856
)
(85.2
)
%
$
(100,701
)
$
1,701
(6,020.1
)
%
Operating Margin %
(4.8
)
%
(18.6
)
%
(20.0
)
%
0.2
%
Net Gain on Sale of
Businesses
$
—
$
—
$
—
$
78,801
Net (Loss) Income
$
(19,985
)
$
(34,065
)
(41.3
)
%
$
(115,781
)
$
52,017
(322.6
)
%
Net (Loss) Income %
(17.4
)
%
(17.2
)
%
(23.0
)
%
6.7
%
*Adjusted EBITDA
$
2,897
$
19,804
(85.4
)
%
$
28,762
$
88,315
(67.4
)
%
*Adjusted EBITDA Margin %
2.5
%
10.0
%
5.7
%
11.4
%
*Adjusted EBITDA is a Non-GAAP Performance Measure. Please see
the attached table for a reconciliation of Adjusted EBITDA to GAAP
net income.
Fourth Quarter 2020 Results (compared with
the prior-year period, unless noted otherwise)
Consolidated sales were down $83.6 million compared with the
fourth quarter of 2019. Aerospace sales were down $80.3 million.
Test System sales decreased $3.3 million.
Consolidated operating loss was $5.5 million, compared with
operating loss of $36.9 million in the prior-year period. The loss
in 2020 was due to low volume related to the continued pause of
production of the 737 MAX and the impacts of the COVID-19 pandemic
on the global aerospace industry. Operating loss in the prior
year’s fourth quarter were impacted by an increase to the legal
reserve of $17.9 million for a long-outstanding patent dispute and
$28.8 million of impairment and restructuring charges related to
the refocusing of our antenna business.
Income tax expense in the fourth quarter reflects a $14.1
million non-cash valuation allowance against federal deferred tax
assets.
Bookings were $116.0 million, for a book-to-bill ratio of
1.01:1. Backlog at the end of the quarter was $283.4 million.
Approximately $216.9 million of backlog is expected to ship in
2021.
Full Year 2020 Results (compared with the
prior-year period, unless noted otherwise)
Consolidated sales were down $270.1 million to $502.6 million
compared with the prior year. Aerospace sales were down $274.6
million. Test System sales increased $4.5 million.
Consolidated operating loss was $100.7 million, reflecting
non-cash impairment charges of $87.0 million in the Aerospace
segment, restructuring-related severance charges of $5.3 million,
primarily in the Aerospace segment, and lower sales volumes
compared with the prior-year period. Impairment charges were
recognized in the current year as a result of reduced expectations
of future operating results due to the COVID-19 pandemic, which has
significantly impacted the global aerospace industry. During the
first quarter, the Company recognized full impairments of the
goodwill of Astronics Connectivity Systems and Certification
(“CSC”), PGA and Custom Control Concepts (“CCC”) reporting units,
and a partial impairment of the goodwill of the PECO reporting
unit. During the second quarter of 2020, an additional partial
impairment of the PECO reporting unit was recorded. No impairment
charges were recorded in the third or fourth quarters of 2020.
The effective tax rate for 2020 was (3.0)%, compared with 23.8%
in 2019. The effective tax rate in 2020 was impacted by the
previously discussed valuation allowance on federal deferred tax
assets, which was $21.5 million for the full year, as well as
permanently non-deductible goodwill impairments.
Consolidated net loss was $115.8 million, or $(3.76) per diluted
share, compared with net income of $52.0 million, or $1.60 per
diluted share in the prior year. The after-tax impact of the
impairment loss in 2020 was $81.4 million, or $(2.64) per diluted
share. The $80.1 million pre-tax gain on the sale of the
semiconductor test business in contributed $60.4 million to net
income after taxes in 2019.
Consolidated Adjusted EBITDA was $28.8 million, or 5.7% of
consolidated sales, compared with $88.3 million, or 11.4% of
consolidated sales, in the prior year.
Prior year consolidated Adjusted EBITDA was negatively impacted
by $20.1 million of charges associated with the restructuring
activities, including severance; goodwill and asset impairment
charges of $11.1 million; increased legal reserves for the
long-term patent dispute of $19.6 million; and an equity investment
impairment of $5.0 million.
Aerospace Segment Review (refer to sales by market and
segment data in accompanying tables)
Aerospace Fourth Quarter 2020 Results
(compared with the prior-year period, unless noted
otherwise)
Aerospace segment sales decreased $80.3 million, or 46.7%, to
$91.8 million. Sales were negatively affected by the continued
grounding of the 737 MAX, overall lower build rates for commercial
transport and general aviation aircraft and a weak commercial
aircraft aftermarket as the airlines reduced spending due to the
global COVID-19 pandemic.
Aerospace segment operating loss for the fourth quarter of 2020
was $3.3 million compared with operating loss of $32.3 million in
the same period of 2019. Under-absorption of fixed costs due to
lower sales drove the operating loss in 2020. In 2019, Aerospace
operating profit was impacted by increased legal reserves for a
long-term patent dispute of $17.9 million and $28.8 million of
impairment and restructuring charges related to the refocusing of
our antenna business.
Aerospace bookings in the fourth quarter of 2020 improved
sequentially to $74.1 million, for a book-to-bill ratio of 0.81.
Backlog was $191.1 million at the end of the fourth quarter of 2020
compared with backlog of $275.8 million at the end of the fourth
quarter of 2019.
Aerospace Full Year Results
Aerospace segment sales decreased by $274.6 million, or 39.7%,
to $418.0 million, when compared with 2019. Sales were negatively
affected for the same reasons noted for the quarter.
Aerospace operating loss for 2020 was $89.8 million compared
with operating income of $16.7 million, or 2.4% of sales, in the
same period of 2019. Aerospace 2020 operating profit was impacted
by impairment charges of $87.0 million, of which $86.3 million was
related to goodwill, as previously discussed. Restructuring-related
severance charges of $5.3 million and leverage lost on reduced
sales also significantly impacted operating results.
Test Systems Segment Review (refer to sales by market and
segment data in accompanying tables)
Test Systems Fourth Quarter
Results
Test Systems segment sales in the fourth quarter were $23.0
million, down $3.3 million compared with the prior-year period.
Test Systems operating profit was $1.3 million, or 5.6% of
sales, up from $0.3 million, or 1.2% of sales, in last year's
fourth quarter.
Bookings for the Test Systems segment in the quarter were $41.9
million, for a book-to-bill ratio, excluding semiconductor
activity, of 1.83:1 for the quarter. Backlog was $92.3 million at
the end of 2020 compared with backlog of $83.8 million at the end
of 2019.
Test Systems Full Year Results
Test Systems Segment sales were $84.6 million, up $4.5 million
compared with the prior year. Acquisitions completed in July 2019
and October 2019 contributed an incremental $6.2 million in sales.
Sales related to the Semiconductor business, which was sold in
early 2019, decreased $6.2 million.
Test Systems operating profit was $5.5 million, or 6.6% of
sales, compared with operating profit of $4.5 million, or 5.6% of
sales, in 2019. Operating profit in the prior-year period was
impacted by restructuring-related severance charges of $2.0
million.
Mr. Gundermann commented, “Our Test business had a good year in
2020, benefiting from strong government and defense spending. The
business made strides integrating two 2019 acquisitions and won a
couple of significant awards in the emerging transit test market,
which we believe promises to be important for our future. The table
is set for these trends to continue in 2021 and for Test to have
another solid year.”
Outlook
Mr. Gundermann commented, “While it is difficult to provide
guidance for all of 2021 given the ongoing pandemic, we do expect
that customer demand in the first half of 2021 will be similar to
that of the second half of 2020. The year will start slowly,
however, with first quarter sales of about $100 million. We expect
conditions to strengthen through the year. We expect we will manage
the business to generate cash that we will use to reduce debt. We
believe we are well-positioned for the future, and we expect to do
well when market conditions rebound.”
Capital expenditures for 2021 are expected to be approximately
$10 million to $11 million up from $7.5 million in 2020 due to
investments in customer programs.
Fourth Quarter 2020 Webcast and Conference Call
The Company will host a teleconference today at 11:00 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 13715117. The telephonic
replay will be available from 2:00 p.m. on the day of the call
through Tuesday, March 2, 2021. A transcript of the call will also
be posted to the Company’s Web site once available.
About Astronics
Corporation
Astronics Corporation (Nasdaq: ATRO) serves the world’s
aerospace, defense, and other mission critical industries with
proven, innovative technology solutions. Astronics works
side-by-side with customers, integrating its array of power,
connectivity, lighting, structures, interiors, and test
technologies to solve complex challenges. For over 50 years,
Astronics has delivered creative, customer-focused solutions with
exceptional responsiveness. Today, global airframe manufacturers,
airlines, military branches, completion centers, and Fortune 500
companies rely on the collaborative spirit and innovation of
Astronics. The Company’s strategy is to increase its value by
developing technologies and capabilities that provide innovative
solutions to its targeted markets.
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 and include all statements with regard to the impact of
COVID-19 on the Company and its future, reaching any revenue or
Adjusted EBITDA margin expectations, being cash positive in 2021,
the recovery of the commercial aerospace market, the opportunities
to leverage capabilities in other markets and the outcome of demand
streams or expectations of demand by customers and markets. 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 impact of the global outbreak
of COVID-19 and governmental and other actions taken in response,
trend in growth with passenger power and connectivity on airplanes,
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 relationships, 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
Year Ended
12/31/2020
12/31/2019
12/31/2020
12/31/2019
Sales
$
114,803
$
198,412
$
502,587
$
772,702
Cost of products sold1
95,685
171,504
405,744
616,560
Gross profit
19,118
26,908
96,843
156,142
Gross margin
16.7
%
13.6
%
19.3
%
20.2
%
Selling, general and administrative2
24,587
52,681
110,528
143,358
SG&A % of sales
21.4
%
26.6
%
22.0
%
18.6
%
Impairment Loss3
—
11,083
87,016
11,083
(Loss) Income from operations
(5,469
)
(36,856
)
(100,701
)
1,701
Operating margin
(4.8
)
%
(18.6
)
%
(20.0
)
%
0.2
%
Net gain on sale of businesses
—
—
—
78,801
Other expense, net of other income4
422
4,861
4,968
6,058
Interest expense, net
1,650
1,565
6,741
6,141
(Loss) Income before tax
(7,541
)
(43,282
)
(112,410
)
68,303
Income tax expense (benefit)
12,444
(9,217
)
3,371
16,286
Net (Loss) Income
$
(19,985
)
$
(34,065
)
$
(115,781
)
$
52,017
Net (Loss) Income % of sales
(17.4
)
%
(17.2
)
%
(23.0
)
%
6.7
%
Basic (loss) earnings per share:
$
(0.65
)
$
(1.10
)
$
(3.76
)
$
1.62
Diluted (loss) earnings per share:
$
(0.65
)
$
(1.10
)
$
(3.76
)
$
1.60
Weighted average diluted shares
outstanding (in thousands)
30,837
30,919
30,795
32,459
Capital expenditures
$
1,884
$
3,233
$
7,459
$
12,083
Depreciation and amortization
$
7,759
$
8,866
$
31,854
$
33,049
______________________________________________________________________________________________________
1Cost of goods sold for the three months and year ended December
31, 2019 includes impairment and restructuring charges related to
the antenna business of $15.4 million in both periods. 2Selling,
general and administrative expense for the three months and year
ended December 31, 2019 includes legal reserves for the patent
infringement matter of $17.9 million and $19.6 million,
respectively, and impairment and restructuring charges related to
the antenna business of $2.4 million in both periods. 3Impairment
loss primarily represents the goodwill impairment charges incurred
in the Aerospace segment. In the first quarter of 2020, full
impairment charges were recorded for goodwill associated to the
CSC, PGA and CCC reporting units, and a partial goodwill impairment
charge was recognized for the PECO reporting unit. In the second
quarter of 2020, an additional partial goodwill impairment charge
was recorded for the PECO reporting unit. Total goodwill impairment
charges were $73.7 million and $12.6 million in the first and
second quarters of 2020, respectively. Impairment loss in the three
months and year ended December 31, 2019 represents the impairment
of fixed assets, intangible assets, goodwill and other non-current
assets associated with the antenna business restructuring. 4Other
expense, net of other income, is primarily comprised of an equity
investment impairment of $3.6 million in the year ended December
31, 2020. For the three months and year ended December 31, 2019
includes impairment of an equity investment related to the antenna
business of $5.0 million.
ASTRONICS CORPORATION
SEGMENT
DATA
(Unaudited, $ in thousands)
Three
Months Ended
Year
Ended
12/31/2020
12/31/2019
12/31/2020
12/31/2019
Sales
Aerospace
$
91,797
$
172,119
$
418,079
$
692,614
Less Inter-segment
—
—
(91
)
(5
)
Total Aerospace
91,797
172,119
417,988
692,609
Test Systems
23,198
26,500
85,589
80,495
Less Inter-segment
(192
)
(207
)
(990
)
(402
)
Total Test Systems
23,006
26,293
84,599
80,093
Total consolidated sales
114,803
198,412
502,587
772,702
Segment operating (loss) profit and
margins
Aerospace
(3,266
)
(32,292
)
(89,833
)
16,657
(3.6
)
%
(18.8
)
%
(21.5
)
%
2.4
%
Test Systems
1,279
328
5,549
4,494
5.6
%
1.2
%
6.6
%
5.6
%
Total segment operating (loss)
profit
(1,987
)
(31,964
)
(84,284
)
21,151
Net gain on sales of businesses
—
—
—
78,801
Interest expense
1,650
1,565
6,741
6,141
Corporate expenses and other
3,904
9,753
21,385
25,508
(Loss) Income before taxes
$
(7,541
)
$
(43,282
)
$
(112,410
)
$
68,303
Reconciliation to Non-GAAP Performance Measures
In addition to reporting net income, a U.S. generally accepted
accounting principle (“GAAP”) measure, we present Adjusted EBITDA
(earnings before interest, income taxes, depreciation and
amortization, non-cash equity-based compensation expense, goodwill,
intangible and long-lived asset impairment charges, equity
investment income or loss, legal reserves, settlements and
recoveries, restructuring charges and gains or losses associated
with the sale of businesses), which is a non-GAAP measure. The
Company’s management believes Adjusted EBITDA is an important
measure of operating performance because it allows management,
investors and others to evaluate and compare the performance of its
core operations from period to period by removing the impact of the
capital structure (interest), tangible and intangible asset base
(depreciation and amortization), taxes, equity-based compensation
expense, goodwill, intangible and long-lived asset impairment
charges, equity investment income or loss, legal reserves,
settlements and recoveries, restructuring charges and gains or
losses associated with the sale of businesses, which is not
commensurate with the core activities of the reporting period in
which it is included. As such, the Company uses Adjusted EBITDA as
a measure of performance when evaluating its business and as a
basis for planning and forecasting. Adjusted EBITDA is not a
measure of financial performance under GAAP and is not calculated
through the application of GAAP. As such, it should not be
considered as a substitute for the GAAP measure of net income and,
therefore, should not be used in isolation of, but in conjunction
with, the GAAP measure. Adjusted EBITDA, as presented, may produce
results that vary from the GAAP measure and may not be comparable
to a similarly defined non-GAAP measure used by other
companies.
ASTRONICS CORPORATION
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED
EBITDA
(Unaudited, $ in thousands)
Consolidated
Three
Months Ended
Year
Ended
12/31/2020
12/31/2019
12/31/2020
12/31/2019
Net (loss) income
$
(19,985
)
$
(34,065
)
$
(115,781
)
$
52,017
Add back (deduct):
Interest expense
1,650
1,565
6,741
6,141
Income tax (benefit) expense
12,444
(9,217
)
3,371
16,286
Depreciation and amortization expense
7,759
8,866
31,854
33,049
Equity-based compensation expense
1,260
900
5,184
3,843
Goodwill and other asset impairments
—
11,083
87,016
11,083
Restructuring-related charges including
severance
(231
)
17,753
5,327
20,078
Legal reserve, settlements and
recoveries
—
17,919
1,450
19,619
Equity investment loss
—
5,000
3,600
5,000
Net gain on sale of businesses
—
—
—
(78,801
)
Adjusted EBITDA
$
2,897
$
19,804
$
28,762
$
88,315
ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
($ in thousands)
(unaudited)
12/31/2020
12/31/2019
ASSETS
Cash and cash equivalents
$
40,412
$
31,906
Accounts receivable and uncompleted
contracts
93,056
147,998
Inventories
157,059
145,787
Other current assets
26,420
15,853
Assets held for sale
—
1,537
Property, plant and equipment, net
106,678
112,499
Other long-term assets
27,952
54,873
Intangible assets, net
109,886
127,293
Goodwill
58,282
144,970
Total assets
$
619,745
$
782,716
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current maturities of long-term debt
$
—
$
224
Accounts payable and accrued expenses
69,165
89,056
Customer advances and deferred revenue
24,571
31,360
Long-term debt
173,000
188,000
Other liabilities
82,638
85,219
Shareholders' equity
270,371
388,857
Total liabilities and shareholders'
equity
$
619,745
$
782,716
ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS DATA
(Unaudited, $ in thousands)
Year
Ended
Cash flows from operating
activities:
December 31, 2020
December 31, 2019
Net (loss) income
$
(115,781
)
$
52,017
Adjustments to reconcile net (loss) income
to cash provided by operating activities, excluding the effects of
acquisitions/divestitures:
Non-cash items:
Depreciation and amortization
31,854
33,049
Provisions for non-cash losses on
inventory and receivables
6,079
16,947
Equity-based compensation expense
5,184
3,843
Deferred tax expense (benefit)
15,553
(14,385
)
Impairment loss
87,016
11,083
Net gain on sale of businesses
—
(78,801
)
Operating lease non-cash expense
4,500
4,208
Non-cash litigation provision
—
19,619
Restructuring activities
1,173
6,539
Equity investment other than temporary
impairment
3,493
5,000
Deferral of Federal payroll tax
5,877
—
Other
2,157
1,610
Cash flows from changes in operating
assets and liabilities:
Accounts receivable
53,928
34,083
Inventories
(13,614
)
(12,711
)
Prepaid expenses and other current
assets
(45
)
(1,160
)
Accounts payable
(9,930
)
(16,617
)
Accrued expenses
(17,667
)
(10,737
)
Income taxes payable/receivable
(10,440
)
3,371
Operating lease liabilities
(4,556
)
(3,840
)
Customer advanced payments and deferred
revenue
(7,043
)
(11,919
)
Supplemental retirement plan and other
liabilities
(403
)
1,490
Cash flows from operating activities
37,335
42,689
Cash flows from investing
activities:
Acquisition of businesses, net of cash
acquired
—
(28,907
)
Proceeds on sales of businesses
—
104,877
Capital expenditures
(7,459
)
(12,083
)
Other investing activities
1,662
743
Cash flows from investing activities
(5,797
)
64,630
Cash flows from financing
activities:
Proceeds from long-term debt
155,000
117,000
Principal payments on long-term debt
(170,228
)
(156,107
)
Purchase of outstanding shares for
treasury
(7,732
)
(50,784
)
Financing fees
(360
)
—
Stock option activity
666
(545
)
Finance lease principal payments
(1,922
)
(1,746
)
Cash flows from financing activities
(24,576
)
(92,182
)
Effect of exchange rates on cash
1,544
147
Increase in cash and cash equivalents
8,506
15,284
Cash and cash equivalents at beginning of
year
31,906
16,622
Cash and cash equivalents at end of
year
$
40,412
$
31,906
ASTRONICS CORPORATION
SALES BY
MARKET
(Unaudited, $ in thousands)
Three
Months Ended
Year
Ended
2020
YTD
12/31/2020
12/31/2019
%
change
12/31/2020
12/31/2019
%
change
% of
Sales
Aerospace Segment
Commercial Transport
$
48,246
$
130,200
(62.9
)
%
$
262,636
$
523,921
(49.9
)
%
52.3
%
Military
17,615
18,789
(6.2
)
%
67,944
76,542
(11.2
)
%
13.5
%
Business Jet
15,178
17,986
(15.6
)
%
60,437
67,541
(10.5
)
%
12.0
%
Other
10,758
5,144
109.1
%
26,971
24,605
9.6
%
5.4
%
Aerospace Total
91,797
172,119
(46.7
)
%
417,988
692,609
(39.7
)
%
83.2
%
Test Systems Segment excluding
Semiconductor
22,930
24,416
(6.1
)
%
81,116
70,401
15.2
%
16.1
%
Total Sales excluding
Semiconductor
114,727
196,535
(41.6
)
%
499,104
763,010
(34.6
)
%
99.3
%
Test-Semiconductor
76
1,877
(96.0
)
%
3,483
9,692
(64.1
)
%
0.7
%
Total Sales
$
114,803
$
198,412
(42.1
)
%
$
502,587
$
772,702
(35.0
)
%
ASTRONICS CORPORATION
SALES BY
PRODUCT LINE
(Unaudited, $ in thousands)
Three
Months Ended
Year
Ended
2020
YTD
12/31/2020
12/31/2019
%
change
12/31/2020
12/31/2019
%
change
% of
Sales
Aerospace Segment
Electrical Power & Motion
$
30,745
$
83,230
(63.1
)
%
$
179,245
$
338,237
(47.0
)
%
35.6
%
Lighting & Safety
27,955
45,960
(39.2
)
%
118,928
185,462
(35.9
)
%
23.7
%
Avionics
18,732
27,373
(31.6
)
%
76,113
106,787
(28.7
)
%
15.1
%
Systems Certification
1,303
5,351
(75.6
)
%
6,899
14,401
(52.1
)
%
1.4
%
Structures
2,304
5,061
(54.5
)
%
9,832
23,117
(57.5
)
%
2.0
%
Other
10,758
5,144
109.1
%
26,971
24,605
9.6
%
5.4
%
Aerospace Total
91,797
172,119
(46.7
)
%
417,988
692,609
(39.7
)
%
83.2
%
Test Systems Segment excluding
Semiconductor
22,930
24,416
(6.1
)
%
81,116
70,401
15.2
%
16.1
%
Total Sales excluding
Semiconductor
114,727
196,535
(41.6
)
%
499,104
763,010
(34.6
)
%
99.3
%
Test-Semiconductor
76
1,877
(96.0
)
%
3,483
9,692
(64.1
)
%
0.7
%
Total Sales
$
114,803
$
198,412
(42.1
)
%
$
502,587
$
772,702
(35.0
)
%
ASTRONICS CORPORATION
ORDER
AND BACKLOG TREND
(Unaudited, $ in thousands)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Twelve Months
3/28/2020
6/27/2020
9/26/2020
12/31/2020
12/31/2020
Sales
Aerospace
$
141,070
$
102,573
$
82,548
$
91,797
$
417,988
Test Systems (excluding Semi)
14,880
19,933
23,373
22,930
81,116
Sales (excluding Semi)
155,950
122,506
105,921
114,727
499,104
Test-Semiconductor
1,634
1,188
585
76
3,483
Total Sales
$
157,584
$
123,694
$
106,506
$
114,803
$
502,587
Bookings
Aerospace
$
150,989
$
43,264
$
64,956
$
74,106
$
333,315
Test Systems (excluding Semi)
16,386
18,230
16,602
41,877
93,095
Bookings (excluding Semi)
167,375
61,494
81,558
115,983
426,410
Test-Semiconductor
4
—
—
—
4
Total Bookings
$
167,379
$
61,494
$
81,558
$
115,983
$
426,414
Backlog
Aerospace
$
285,673
$
226,364
$
208,772
$
191,081
Test Systems (excluding Semi)
81,864
80,161
73,390
92,337
Backlog (excluding Semi)
367,537
306,525
282,162
283,418
Test-Semiconductor
1,849
661
76
—
Total Backlog
$
369,386
$
307,186
$
282,238
$
283,418
N/A
Book:Bill Ratio 1
Aerospace
1.07
0.42
0.79
0.81
0.80
Test Systems excl. Semi
1.10
0.91
0.71
1.83
1.15
Total Book:Bill excl. Semi
1.07
0.50
0.77
1.01
0.85
1 Calculations of Test Systems and Total Book:Bill excludes the
total semiconductor business, which included residual warranty
backlog following the divestiture.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210223005408/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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