- Sales increase 59% over first quarter last year EAST AURORA,
N.Y., May 11 /PRNewswire-FirstCall/ -- Astronics Corporation
(NASDAQ:ATRO), a leading manufacturer of advanced, high-performance
lighting, electronics and electrical power systems for the global
aerospace industry, reported sales of $24.9 million for the first
quarter of 2006 compared with $15.7 million in the first quarter of
2005, up $9.2 million, or 59.2%. Last year's first quarter included
only eight weeks of Astronics Advanced Electronic Systems sales, as
it was acquired in February 2005. Net income for the first quarter
2006 doubled to $1.2 million compared with net income of $0.6
million in the prior year first quarter. On a diluted earnings per
share basis, earnings were $0.15 this year's first quarter compared
with $0.08 in the first quarter 2005. Higher sales of cabin
electronics due to stronger demand from the commercial transport
market and sales to Air Canada on the contract win announced
December 21, 2005, were the primary drivers of the growth. Airframe
power sales were higher as a result of sales to the military for
the Tactical Tomahawk and Taurus missile programs, which entered
full production in the second half of 2005. Increased aircraft
production rates also contributed to revenue growth. When compared
with the fourth quarter of 2005, sales increased $4.5 million, or
22%. When the sequential quarters are compared, a $6.0 million
increase in sales of cockpit lighting, cabin electronics, and
airframe power products more than offset a $1.5 million decline in
external and cabin lighting products. Product sales are highly
dependent on customer production rates and the timing of various
programs. Peter J. Gundermann, President and CEO noted, "Our strong
first quarter performance was a result of our strong product
offering, the overall health of the aerospace industry, the
acceleration of the Air Canada program and certain customer
projects that are progressing well. The industry continues to
demonstrate solid growth without any indications of weakening in
the near term. In particular, the commercial transport market was a
large contributor to our growth this quarter. Going forward, we
believe that our market mix and product demand will vary based on
when certain customer programs enter production." Gross margin for
the quarter was 21.1%, essentially flat compared with last year's
first quarter gross margin of 21.0%. Higher engineering labor,
testing and consulting fees offset gains from higher volume.
Selling, general and administrative (SG&A) expenses declined to
12.1% of sales compared with 14% in the same period last year. On
an absolute basis, SG&A increased to $3.0 million in this
year's first quarter from $2.2 million during the first quarter
last year. A full quarter of expenses related to Astronics AES, as
well as $140 thousand in stock based compensation expenses incurred
as a result of the adoption of SFAS 123(R) in the first quarter,
contributed to higher absolute expenses. During the first quarter
of this year, there were no costs associated with the
implementation of Section 404 in the first quarter, but it is
expected that $300 to $500 thousand may be incurred in the
remaining nine months of fiscal 2006 for these purposes. Cash and
cash equivalents declined from $4.5 million to $6.0 thousand to
support working capital needs and to reduce notes payable. The
Company has a $15 million demand line of credit facility available
and believes this, along with cash from operations, is adequate to
meet its on going needs. Capital expenditures were $645 thousand
for the first quarter, while depreciation and amortization was $623
thousand. Outlook Bookings for the first quarter 2006 were $23.9
million compared with $14.9 million and $37.9 million in the first
and fourth quarters of last year, respectively. Backlog was $94.0
million at the end of the first quarter this year up from last
year's first quarter backlog of $72.3 million and down slightly
from 2005 year end backlog of $95.1 million. Mr. Gundermann added,
"We are encouraged by the robustness of the aerospace market, in
which production rates for new aircraft are exceeding forecasts
from last year. However, we remain focused on the range of new
aircraft in which we are involved. We have been designed into many
of the premier new aircraft that will dominate the skies over the
next twenty years. These include the Eclipse 500 jet, the V-22
Osprey, the Airbus A380, the Citation Mustang, the Hawker Horizon
and the Joint Strike Fighter. We have been involved with these
programs for a long time and look forward to their successful
airworthiness certification and entry into production." He went on
to say, "We expect that our second quarter will be as strong as our
first quarter, if not better, in part due to strong production
rates at OEMs and the continued acceleration of the Air Canada
program. Right now, we are benefiting tremendously from the growth
of the global commercial air transport industry. As we look into
the second half of the year, our visibility becomes reduced as the
timing of customer projects and the rate and consistency of their
orders can vary measurably. However, we expect that with a strong
first half, we will have revenue for the year in the $90 to $100
million range." First Quarter Webcast and Conference Call The
release of the financial results on May 11, 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 9440576. The telephonic replay will
be available through Thursday, May 18, 2006 at 11:59 p.m. ET.
Annual Meeting of Shareholders Additionally, the Company will
webcast its 2006 annual shareholders' meeting on Friday, May 12,
2006 at approximately 10:00 am. During the management presentation,
Peter Gundermann, President and Chief Executive Officer will
discuss Astronics' financial and business performance and strategy.
The webcast will be accessible on Astronics' website at
http://www.astronics.com/. An archive of the webcast will be
available at http://www.astronics.com/ for approximately 60 days.
Participants will need Windows Media Player to view the webcast,
which can be downloaded from the Astronics website. 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 http://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 4/1/2006 4/2/2005 Sales $24,926 $15,656 Cost of
products sold 19,677 12,363 Gross profit 5,249 3,293 Gross margin
21.1% 21.0% Selling general and administrative 3,019 2,207 Income
from operations 2,230 1,086 Operating margin 8.9% 6.9% Interest
expense, net 199 126 Other (income) expense (12) - Income before
tax 2,043 960 Income taxes 833 351 Net Income $1,210 $609 Basic
earnings per share: $0.15 $0.08 Diluted earnings per share: $0.15
$0.08 Weighted average diluted shares outstanding 8,143 7,900
Capital Expenditures 645 551 Depreciation and Amortization 623 616
ASTRONICS CORPORATION CONSOLIDATED BALANCE SHEET DATA (unaudited)
(in thousands) 4/1/2006 12/31/2005 ASSETS: Cash and cash
equivalents $6 $4,473 Accounts receivable 15,949 12,635 Inventories
21,369 19,013 Other current assets 1,778 1,401 Property, plant and
equipment, net 20,604 20,461 Other assets 7,737 7,874 Total Assets
$67,443 $65,857 LIABILITIES AND SHAREHOLDERS' EQUITY: Current
maturities of long term debt $913 $914 Note payable 6,000 7,000
Accounts payable and accrued expenses 17,008 15,843 Long-term debt
10,239 10,304 Other liabilities 6,039 5,962 Shareholders' equity
27,244 25,834 Total liabilities and shareholders' equity $67,443
$65,857 ASTRONICS CORPORATION NET SALES BY MARKET ($, in thousands)
Three Months Ended 4/1/2006 4/2/2005 %change 2006 YTD % Military
$7,141 $5,095 40.16% 28.65% Commercial Transport 12,444 6,162
101.95% 49.92% Business Jet 4,881 4,004 21.90% 19.58% Other 460 395
16.46% 1.85% Total $24,926 $15,656 59.21% 100.00% ASTRONICS
CORPORATION NET SALES BY PRODUCT ($, in thousands) Three Months
Ended 4/1/2006 4/2/2005 % change 2006 YTD % Cockpit Lighting $8,073
$6,720 20.13% 32.39% Cabin Electronics 8,292 2,992 177.14% 33.27%
Airframe Power 4,166 1,840 126.41% 16.71% External Lighting 1,750
1,972 -11.26% 7.02% Cabin Lighting 2,185 1,737 25.79% 8.77% Other
460 395 16.46% 1.85% Total $24,926 $15,656 59.21% 100.00% ORDER AND
BACKLOG TREND ($, in thousands) Twelve Q1 2005 Q2 2005 Q3 2005 Q4
2005 Months Q1 2006 4/2/05 7/2/05 10/1/05 12/31/05 12/31/05 4/1/06
Bookings $14,868 $23,564 $20,176 $37,946 $96,554 $23,850 Backlog
$72,292 $77,856 $77,611 $95,121 $95,121 $94,045 Book: Bill 0.95
1.25 0.99 1.86 1.28 0.96 DATASOURCE: Astronics Corporation CONTACT:
David C. Burney, Chief Financial Officer for Astronics Corporation,
+1-716-805-1599, ext. 159, Fax: +1-716-805-1286, Web site:
http://www.astronics.com/
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