Astronics Corporation Reports 2024 First Quarter Financial Results
-
Sales grew 18% to
$185.1 million in the quarter -
Operating income was
$1.7 million in the quarter, or 0.9% of sales -
Net loss for the quarter was
$3.2 million , or$0.09 per diluted share -
Adjusted EBITDA1 was
$19.1 million , or 10.3% of sales, an increase of$13.0 million over the first quarter of the prior year -
Bookings in the quarter were
$205.3 million driving a record backlog of$612.5 million -
Aerospace achieved its ninth consecutive record backlog of
$538.9 million -
Maintaining 2024 revenue guidance of approximately
$760 million to$795 million
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240502839768/en/
Astronics Segment Sales and Bookings (Graphic: Business Wire)
_______________ | ||
1 |
|
Adjusted EBITDA is a Non-GAAP Performance Measure. Please see the attached table for a reconciliation of adjusted EBITDA to GAAP net loss. |
First Quarter Results
|
Three Months Ended |
|||||||||
($ in thousands) |
|
|
|
% Change |
||||||
|
|
|
|
|
||||||
Sales |
$ |
185,074 |
|
|
$ |
156,538 |
|
18.2 |
% |
|
Income (Loss) from Operations |
$ |
1,666 |
|
|
$ |
(2,370 |
) |
170.3 |
% |
|
Operating Margin % |
|
0.9 |
% |
|
|
(1.5 |
)% |
|
||
|
$ |
— |
|
|
$ |
(3,427 |
) |
|
||
Net Loss |
$ |
(3,178 |
) |
|
$ |
(4,415 |
) |
28.0 |
% |
|
Net Loss % |
|
(1.7 |
)% |
|
|
(2.8 |
)% |
|
||
|
|
|
|
|
||||||
*Adjusted EBITDA |
$ |
19,073 |
|
|
$ |
6,078 |
|
213.8 |
% |
|
*Adjusted EBITDA Margin % |
|
10.3 |
% |
|
|
3.9 |
% |
|
||
*Adjusted EBITDA is a Non-GAAP Performance Measure. Please see the attached table for a reconciliation of adjusted EBITDA to GAAP net loss. |
First Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)
Consolidated sales were up
Consolidated operating income was
In the first quarter of 2023, the Company recognized a
Consolidated net loss was
Consolidated adjusted EBITDA increased to
Bookings were
Aerospace Segment Review (refer to sales by market and segment data in accompanying tables)
Aerospace First Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)
Aerospace segment sales increased
Military aircraft sales increased
Aerospace segment operating profit of
Aerospace bookings were
Test Systems Segment Review (refer to sales by market and segment data in accompanying tables)
Test Systems First Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)
Test Systems segment sales were
Test Systems segment operating loss was
Given the continued delay in expected project awards, in
Bookings for the Test Systems segment in the quarter were
Liquidity and Financing
Available liquidity at the end of the quarter was
Cash provided by operations was
The Company executed a minor amendment to its credit agreement in late
The Company did not sell any shares during the quarter via its ATM facility, which has
2024 Outlook
The Company expects second quarter revenue to be in the range of
Backlog at the end of the first quarter was a record
Planned capital expenditures in 2024 are expected to be in the range of
First Quarter 2024 Webcast and Conference Call
The Company will host a teleconference today at
The
About
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,” “feeling” or other similar expressions and include all statements with regard to achieving any revenue or profitability expectations, the rate of recovery of the commercial aerospace widebody/long haul markets, aircraft production rates, the improvement in the supply chain, the productivity of manufacturing personnel and efficiency of staff, the effectiveness on profitability of cost reduction efforts, the effect of pricing on margins, the timing of receipt of task orders or future orders, the continued momentum in the business and favorable tailwinds, the level of liquidity and its sufficiency to meet current needs, the alignment of covenants to effectively accommodate rolling twelve-month financials, the rate of acceleration of the business, the level of cash generation, the expectations of customer enthusiasm and level 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 global pandemics and related governmental and other actions taken in response, the 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 impact of regulatory activity and public scrutiny on production rates of a major
FINANCIAL TABLES FOLLOW
|
|||||||
CONSOLIDATED STATEMENT OF OPERATIONS DATA |
|||||||
(Unaudited, $ in thousands except per share data) |
|||||||
|
|
||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
Sales1 |
$ |
185,074 |
|
|
$ |
156,538 |
|
Cost of products sold |
|
150,883 |
|
|
|
129,028 |
|
Gross profit |
|
34,191 |
|
|
|
27,510 |
|
Gross margin |
|
18.5 |
% |
|
|
17.6 |
% |
|
|
|
|
||||
Selling, general and administrative |
|
32,525 |
|
|
|
29,880 |
|
SG&A % of sales |
|
17.6 |
% |
|
|
19.1 |
% |
Income (loss) from operations |
|
1,666 |
|
|
|
(2,370 |
) |
Operating margin |
|
0.9 |
% |
|
|
(1.5 |
)% |
|
|
|
|
||||
Net gain on sale of business2 |
|
— |
|
|
|
(3,427 |
) |
Other expense (income)3 |
|
436 |
|
|
|
(1,288 |
) |
Interest expense, net |
|
5,759 |
|
|
|
5,470 |
|
Loss before tax |
|
(4,529 |
) |
|
|
(3,125 |
) |
Income tax (benefit) expense |
|
(1,351 |
) |
|
|
1,290 |
|
Net loss |
$ |
(3,178 |
) |
|
$ |
(4,415 |
) |
Net loss % of sales |
|
(1.7 |
)% |
|
|
(2.8 |
)% |
|
|
|
|
||||
|
|
|
|
||||
Basic loss per share: |
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
Diluted loss per share: |
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
||||
Weighted average diluted shares outstanding (in thousands) |
|
34,863 |
|
|
|
32,505 |
|
|
|
|
|
||||
Capital expenditures |
$ |
1,598 |
|
|
$ |
1,573 |
|
Depreciation and amortization |
$ |
6,328 |
|
|
$ |
6,662 |
|
_______________ | ||
1 |
|
In the quarter ended |
2 |
|
Net gain on sale of business for the quarter ended |
3 |
|
Other expense (income) for the quarter ended |
Reconciliation to Non-GAAP Performance Measures
In addition to reporting net income, a
|
|||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|||||||
(Unaudited, $ in thousands) |
|||||||
|
|
|
|
||||
|
Consolidated |
||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
Net loss |
$ |
(3,178 |
) |
|
$ |
(4,415 |
) |
Add back (deduct): |
|
|
|
||||
Interest expense |
|
5,759 |
|
|
|
5,470 |
|
Income tax (benefit) expense |
|
(1,351 |
) |
|
|
1,290 |
|
Depreciation and amortization expense |
|
6,328 |
|
|
|
6,662 |
|
Equity-based compensation expense |
|
2,802 |
|
|
|
2,399 |
|
Non-cash annual stock bonus accrual |
|
1,448 |
|
|
|
— |
|
Non-cash 401K contribution and quarterly bonus accrual |
|
3,454 |
|
|
|
1,208 |
|
Restructuring-related charges including severance |
|
117 |
|
|
|
— |
|
Litigation-related legal expenses |
|
3,694 |
|
|
|
4,515 |
|
Equity investment accrued payable write-off |
|
— |
|
|
|
(1,800 |
) |
Net gain on sale of business |
|
— |
|
|
|
(3,427 |
) |
Deferred liability recovery |
|
— |
|
|
|
(5,824 |
) |
Adjusted EBITDA |
$ |
19,073 |
|
|
$ |
6,078 |
|
|
|
|
|
||||
Sales |
$ |
185,074 |
|
|
$ |
156,538 |
|
Adjusted EBITDA margin on sales |
10.3 |
% |
|
3.9 |
% |
|
|||||||
CONSOLIDATED BALANCE SHEET DATA |
|||||||
($ in thousands) |
|||||||
|
(unaudited) |
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
5,308 |
|
|
$ |
4,756 |
|
Restricted cash |
|
1,302 |
|
|
|
6,557 |
|
Accounts receivable and uncompleted contracts |
|
170,246 |
|
|
|
172,108 |
|
Inventories |
|
199,497 |
|
|
|
191,801 |
|
Other current assets |
|
15,541 |
|
|
|
14,560 |
|
Property, plant and equipment, net |
|
83,684 |
|
|
|
85,436 |
|
Other long-term assets |
|
34,109 |
|
|
|
34,944 |
|
Intangible assets, net |
|
62,121 |
|
|
|
65,420 |
|
|
|
58,156 |
|
|
|
58,210 |
|
Total assets |
$ |
629,964 |
|
|
$ |
633,792 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
Current maturities of long-term debt |
$ |
8,996 |
|
|
$ |
8,996 |
|
Accounts payable and accrued expenses |
|
122,026 |
|
|
112,309 |
||
Customer advances and deferred revenue |
|
20,257 |
|
|
|
22,029 |
|
Long-term debt |
|
153,149 |
|
|
|
159,237 |
|
Other liabilities |
|
73,813 |
|
|
|
81,703 |
|
Shareholders' equity |
|
251,723 |
|
|
|
249,518 |
|
Total liabilities and shareholders' equity |
$ |
629,964 |
|
|
$ |
633,792 |
|
|
|||||||
CONSOLIDATED CASH FLOWS DATA |
|||||||
|
|
|
|
||||
|
Three Months Ended |
||||||
(Unaudited, $ in thousands) |
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(3,178 |
) |
|
$ |
(4,415 |
) |
Adjustments to reconcile net loss to cash from operating activities: |
|
|
|
||||
Non-cash items: |
|
|
|
||||
Depreciation and amortization |
|
6,328 |
|
|
|
6,662 |
|
Amortization of deferred financing fees |
|
832 |
|
|
|
616 |
|
Provisions for non-cash losses on inventory and receivables |
|
767 |
|
|
|
627 |
|
Equity-based compensation expense |
|
2,802 |
|
|
|
2,399 |
|
Net gain on sale of business |
|
— |
|
|
|
(3,427 |
) |
Operating lease non-cash expense |
|
1,280 |
|
|
|
1,186 |
|
Non-cash 401K contribution and quarterly bonus accrual |
|
3,454 |
|
|
|
1,208 |
|
Non-cash annual stock bonus accrual |
|
1,448 |
|
|
|
— |
|
Non-cash deferred liability reversal |
|
— |
|
|
|
(5,824 |
) |
Other |
|
968 |
|
|
|
(525 |
) |
Cash flows from changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
1,427 |
|
|
|
(4,170 |
) |
Inventories |
|
(8,826 |
) |
|
|
(13,860 |
) |
Accounts payable |
|
224 |
|
|
|
(3,488 |
) |
Accrued expenses |
|
(1,717 |
) |
|
|
2,944 |
|
Income taxes |
|
(1,722 |
) |
|
|
1,262 |
|
Operating lease liabilities |
|
(1,196 |
) |
|
|
(1,447 |
) |
Customer advance payments and deferred revenue |
|
(1,685 |
) |
|
|
1,190 |
|
Supplemental retirement plan liabilities |
|
(101 |
) |
|
|
(100 |
) |
Other assets and liabilities |
|
932 |
|
|
|
(19 |
) |
Net cash provided (used) by operating activities |
|
2,037 |
|
|
|
(19,181 |
) |
Cash flows from investing activities: |
|
|
|
||||
Proceeds on sale of business and assets |
|
— |
|
|
|
3,437 |
|
Capital expenditures |
|
(1,598 |
) |
|
|
(1,573 |
) |
Net cash (used) provided by investing activities |
|
(1,598 |
) |
|
|
1,864 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from long-term debt |
|
1,356 |
|
|
|
126,122 |
|
Principal payments on long-term debt |
|
(7,249 |
) |
|
|
(111,986 |
) |
Stock award and employee stock purchase plan activity |
|
1,713 |
|
|
|
(602 |
) |
Finance lease principal payments |
|
(53 |
) |
|
|
(11 |
) |
Financing-related costs |
|
(809 |
) |
|
|
(4,347 |
) |
Net cash (used) provided by financing activities |
|
(5,042 |
) |
|
|
9,176 |
|
Effect of exchange rates on cash |
|
(100 |
) |
|
|
80 |
|
Decrease in cash and cash equivalents and restricted cash |
|
(4,703 |
) |
|
|
(8,061 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
11,313 |
|
|
|
13,778 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
6,610 |
|
|
$ |
5,717 |
|
|
|||||||
SEGMENT DATA |
|||||||
(Unaudited, $ in thousands) |
|||||||
|
|
||||||
|
Three Months Ended |
||||||
|
|
|
|||||
Sales |
|
|
|||||
Aerospace |
$ |
163,675 |
|
$ |
135,715 |
|
|
Less inter-segment |
|
(37 |
) |
|
(118 |
) |
|
|
|
163,638 |
|
|
135,597 |
|
|
|
|
|
|||||
Test Systems1 |
|
21,436 |
|
|
20,941 |
|
|
Less inter-segment |
|
— |
|
|
— |
|
|
Total Test Systems |
|
21,436 |
|
|
20,941 |
|
|
|
|
|
|||||
Total consolidated sales |
|
185,074 |
|
|
156,538 |
|
|
|
|
|
|||||
Segment operating profit and margins |
|
|
|||||
Aerospace |
|
12,097 |
|
|
4,087 |
|
|
|
|
7.4 |
% |
|
3.0 |
% |
|
Test Systems1 |
|
(3,079 |
) |
|
(597 |
) |
|
|
|
(14.4 |
)% |
|
(2.9 |
)% |
|
Total segment operating profit |
|
9,018 |
|
|
3,490 |
|
|
|
|
|
|||||
|
|
|
|||||
Net gain on sale of business |
|
— |
|
|
(3,427 |
) |
|
Interest expense |
|
5,759 |
|
|
5,470 |
|
|
Corporate expenses and other2 |
|
7,788 |
|
|
4,572 |
|
|
Loss before taxes |
$ |
(4,529 |
) |
$ |
(3,125 |
) |
_______________ | ||
1 |
|
In the quarter ended |
2 |
|
Corporate expenses and other for the quarter ended |
|
||||||||
SALES BY MARKET |
||||||||
(Unaudited, $ in thousands) |
||||||||
|
|
|
||||||
|
Three Months Ended |
2024 YTD |
||||||
|
|
|
% Change |
% of Sales |
||||
Aerospace Segment |
|
|
|
|
||||
|
$ |
121,430 |
$ |
94,213 |
28.9 |
% |
65.6 |
% |
Military Aircraft |
|
17,079 |
|
14,064 |
21.4 |
% |
9.2 |
% |
|
|
19,551 |
|
19,448 |
0.5 |
% |
10.6 |
% |
Other |
|
5,578 |
|
7,872 |
(29.1 |
)% |
3.0 |
% |
Aerospace Total |
|
163,638 |
|
135,597 |
20.7 |
% |
88.4 |
% |
|
|
|
|
|
||||
Test Systems Segment1 |
|
|
|
|
||||
Government & Defense |
|
21,436 |
|
20,941 |
2.4 |
% |
11.6 |
% |
|
|
|
|
|
||||
Total Sales |
$ |
185,074 |
$ |
156,538 |
18.2 |
% |
|
SALES BY PRODUCT LINE |
||||||||
(Unaudited, $ in thousands) |
||||||||
|
|
|
||||||
|
Three Months Ended |
2024 YTD |
||||||
|
|
% Change |
% of Sales |
|||||
Aerospace Segment |
|
|
|
|
||||
|
$ |
83,124 |
$ |
53,454 |
55.5 |
% |
44.9 |
% |
Lighting & Safety |
|
41,787 |
|
36,553 |
14.3 |
% |
22.6 |
% |
Avionics |
|
25,594 |
|
29,741 |
(13.9 |
)% |
13.8 |
% |
Systems Certification |
|
4,448 |
|
5,677 |
(21.6 |
)% |
2.4 |
% |
Structures |
|
3,107 |
|
2,300 |
35.1 |
% |
1.7 |
% |
Other |
|
5,578 |
|
7,872 |
(29.1 |
)% |
3.0 |
% |
Aerospace Total |
|
163,638 |
|
135,597 |
20.7 |
% |
88.4 |
% |
|
|
|
|
|
||||
Test Systems Segment1 |
|
21,436 |
|
20,941 |
2.4 |
% |
11.6 |
% |
|
|
|
|
|
||||
Total Sales |
$ |
185,074 |
$ |
156,538 |
18.2 |
% |
|
_______________ | ||
1 |
|
Test Systems sales in the quarter ended |
|
||||||||||
ORDER AND BACKLOG TREND |
||||||||||
(Unaudited, $ in thousands) |
||||||||||
|
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Trailing Twelve Months |
|||||
|
|
|
|
|
|
|||||
Sales |
|
|
|
|
|
|||||
Aerospace |
$ |
158,382 |
$ |
142,104 |
$ |
168,747 |
$ |
163,638 |
$ |
632,871 |
Test Systems |
|
16,072 |
|
20,818 |
|
26,545 |
|
21,436 |
|
84,871 |
Total Sales |
$ |
174,454 |
$ |
162,922 |
$ |
195,292 |
$ |
185,074 |
$ |
717,742 |
|
|
|
|
|
|
|||||
Bookings |
|
|
|
|
|
|||||
Aerospace |
$ |
188,800 |
$ |
153,272 |
$ |
172,106 |
$ |
185,269 |
$ |
699,447 |
Test Systems |
|
18,252 |
|
22,724 |
|
11,176 |
|
19,986 |
|
72,138 |
Total Bookings |
$ |
207,052 |
$ |
175,996 |
$ |
183,282 |
$ |
205,255 |
$ |
771,585 |
|
|
|
|
|
|
|||||
Backlog |
|
|
|
|
|
|||||
Aerospace1 |
$ |
502,713 |
$ |
513,881 |
$ |
517,240 |
$ |
538,871 |
|
|
Test Systems |
|
88,499 |
|
90,405 |
|
75,036 |
|
73,586 |
|
|
Total Backlog |
$ |
591,212 |
$ |
604,286 |
$ |
592,276 |
$ |
612,457 |
|
N/A |
|
|
|
|
|
|
|||||
Book:Bill Ratio |
|
|
|
|
|
|||||
Aerospace |
|
1.19 |
|
1.08 |
|
1.02 |
|
1.13 |
|
1.11 |
Test Systems |
|
1.14 |
|
1.09 |
|
0.42 |
|
0.93 |
|
0.85 |
Total Book:Bill |
|
1.19 |
|
1.08 |
|
0.94 |
|
1.11 |
|
1.08 |
_______________ | ||
1 |
|
In November of 2023, a non-core contract manufacturing customer reported within the Aerospace segment declared bankruptcy, and as a result, Aerospace and Total Backlog was reduced by |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502839768/en/
Company:
Phone: (716) 805-1599, ext. 159
Email: david.burney@astronics.com
Investor Relations:
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com
Source: