Astronics Corporation Reports 2007 Full Year and Fourth Quarter Results
-- Full year 2007 sales up 42.9% to $158.2 million
-- Fourth quarter sales up 25.4% to $36.3 million
-- 2007 diluted earnings per share were $1.80 and $0.24 for the fourth quarter
EAST AURORA, N.Y.--(BUSINESS WIRE)--
Astronics Corporation (NASDAQ: ATRO), a trusted leader in innovative, high performance lighting, power generation, control and distribution systems for the global aerospace industry, today reported 2007 full year sales increased 42.9% to $158.2 million from $110.8 million in 2006. Fourth quarter sales increased by 25.4% to $36.3 million from $28.9 million in the fourth quarter of 2006. Net income for 2007 was $15.4 million, or $1.80 per diluted share, compared with net income of $5.7 million, or $0.69 per diluted share in 2006. For the fourth quarter of 2007, net income was $2.1 million, or $0.24 per diluted share, compared with $0.8 million, or $0.10 per diluted share, for the same period the prior year.
Strong Performance in 2007
Commercial transport sales led sales growth for the full year, increasing 64% to $100.5 million compared with $61.3 million in 2006. Driving sales growth for the full year, particularly the first half, was the cabin electronics product line used to power in-flight entertainment systems (IFE) and provide in seat power for passengers' computers and personal electronic devices. Several commercial fleet upgrade projects combined with the increased demand from a major supplier of IFE to global commercial airlines drove the growth in sales.
Sales to the business jet market increased 36% to $31.2 million in 2007 compared with $22.9 million in 2006. Expanded ship set content on new models of business jets, which began to ramp up production in 2007, together with the overall strength of the business jet market were the primary drivers for sales growth in this market.
For the full year, military sales were $25.4 million, relatively flat compared with sales of $25.3 million in 2006.
Gross profit for the full year was $40.9 million, or 25.8% of sales, compared with $23.2 million, or 21.0% of sales, in 2006. Increased sales provided strong leverage for margin expansion. For the year, engineering and development expenditures (E&D), which are included in the cost of sales, grew to $14.8 million, up from $10.9 million in 2006.
Peter J. Gundermann, President and Chief Executive Officer of Astronics commented, "By any measure, 2007 was a great year for Astronics. We experienced strong demand from both the commercial transport and business jet markets, and made important progress on our various development programs. Market conditions continue to be strong, and there are plenty of exciting opportunities before us."
Fourth Quarter Results
Sales to the commercial transport market increased 25% to $21.0 million, while sales to the business jet market increased 48% to $9.3 million and military sales increased 2% to $5.7 million. As has been the recent pattern, strong growth in the commercial transport and business jet markets drove strong financial results.
Gross profit for the fourth quarter of 2007 was $7.6 million, or 21.1% of sales, compared with $5.0 million, or 17.1% of sales, in the same period the prior year. E&D was $3.8 million in the fourth quarter of 2007 compared with $3.2 million in the same period the prior year.
Mr. Gundermann commented, "The fourth quarter turned out as we expected with slightly lower revenue and profit, but similar to the third quarter when you exclude the $0.9 million third quarter overhead cost absorption adjustment that resulted in increased margins in that period. It was a solid close to an exceptional year."
Liquidity and Capital Expenditures
Cash and cash equivalents were $2.8 million at December 31, 2007, a $2.6 million increase from $0.2 million at December 31, 2006. The Company has a $25 million line of credit of which $17.7 million was available at the end of 2007.
Capital expenditures for the fourth quarter of 2007 and full year were $2.0 million and $9.6 million, respectively, compared with $3.1 million and $5.4 million in the fourth quarter and full year of 2006, respectively. Year-over-year capital expenditures increased primarily as a result of the 57 thousand square foot expansion of the Company's East Aurora, New York facility and increases in capital equipment used to manufacture product.
Outlook
Backlog at December 31, 2007 was $92.4 million of which approximately $80 million is scheduled for shipment in 2008. Astronics expects 2008 revenue will rise to $170 million.
Mr. Gundermann, noted, "Our backlog remains strong and positions us well for 2008. Timing and circumstances are such that the backlog total does not compare easily to the past, but we are comfortable with its quality and our market prospects."
He added, "We believe 2008 will be another very good year for Astronics, characterized less by the explosive growth of the recent past, and more by program wins and product development that will shape our future. Continued strength in market fundamentals and an excellent pipeline of opportunities will lead to increased engineering and development spending in 2008, likely totaling more than $20 million. As has been our plan for years, we will continue to invest heavily in areas that we believe will add to the long-term value of the business. For example, we have been chosen to supply the power distribution system for a newly announced business jet and are currently in contract negotiations. The number, quality and magnitude of the projects currently on the table and in the pipeline bode very well for Astronics' future growth."
Fourth Quarter and Year End 2007 Webcast and Conference Call
The Company will host a teleconference at 11 a.m. ET today. During the teleconference, Peter J. Gundermann, President and CEO, and David C. Burney, Vice President and CFO, will review the financial and operating results for the period and discuss Astronics' corporate strategy and outlook. A question-and-answer session will follow.
The Astronics conference call can be accessed the following ways:
-- The live webcast can be found at http://www.astronics.com.
Participants should go to the website 10 - 15 minutes prior to
the scheduled conference in order to register and download any
necessary audio software.
-- The teleconference can be accessed by dialing (201) 689-8562
and requesting conference ID number 268509 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 (201) 612-7415 and
referencing account number 3055 and conference ID number
268509.
The telephonic replay will be available from 2 p.m. ET the day of the call through 11:59 p.m. ET on February 21, 2008.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a trusted leader in innovative, high performance lighting, power generation, control and distribution systems for the global aerospace industry. Its strategy is to expand the value and content it provides to various aircraft platforms through product development and acquisition. Astronics Corporation, and its wholly-owned subsidiaries Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices.
For more information on Astronics and its products, visit its website at www.Astronics.com.
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expression. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially include the state of the aerospace industry, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes, the demand for and market acceptance of new or existing aircraft which contain the Company's products, customer preferences, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
ASTRONICS CORPORATION
CONSOLIDATED INCOME STATEMENT DATA
----------------------------------------------------------------------
(unaudited)
(in thousands except per share data)
Three months ended Twelve months ended
12/31/2007 12/31/2006 12/31/2007 12/31/2006
-------------------------------------------
Sales $36,273 $28,920 $158,240 $110,767
Cost of products sold 28,630 23,969 117,370 87,519
Gross margin 21.1% 17.1% 25.8% 21.0%
Selling general and
administrative 3,851 3,651 16,408 13,582
-------------------------------------------
Income from operations 3,792 1,300 24,462 9,666
Operating margin 10.5% 4.5% 15.5% 8.7%
Interest expense, net 298 246 1,370 896
Other (income) expense 105 50 94 11
-------------------------------------------
Income before tax 3,389 1,004 22,998 8,759
Income taxes 1,320 197 7,607 3,023
-------------------------------------------
Net Income $2,069 $807 $15,391 $5,736
-------------------------------------------
Basic earnings per share: $0.25 $0.10 $1.91 $0.72
Diluted earnings per
share: $0.24 $0.10 $1.80 $0.69
Weighted average diluted
shares outstanding 8,683 8,446 8,569 8,269
----------------------------------------------------------------------
Capital Expenditures $2,026 $3,100 $9,592 $5,400
Depreciation and
Amortization $993 $969 $3,440 $2,929
----------------------------------------------------------------------
ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
----------------------------------------------------------------------
(unaudited)
(in thousands)
12/31/2007 12/31/2006
---------------------
ASSETS:
------------------------------------------------
Cash and cash equivalents $2,818 $222
Accounts receivable 20,720 17,165
Inventories 36,920 31,570
Other current assets 3,563 2,699
Property, plant and equipment, net 30,083 23,436
Other assets 10,017 7,446
---------------------
Total Assets $104,121 $82,538
---------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
------------------------------------------------
Current maturities of long term debt $951 $923
Note payable 7,300 8,100
Accounts payable and accrued expenses 23,670 25,196
Long-term debt 14,684 9,426
Other liabilities 8,284 7,545
Shareholders' equity 49,232 31,348
---------------------
Total liabilities and shareholders' equity $104,121 $82,538
---------------------
ASTRONICS CORPORATION
SALES BY MARKET
($, in thousands)
Three Months Ended
%
12/31/2007 12/31/2006 change
----------------------------
Military $5,700 $5,614 2%
Commercial Transport 21,017 16,846 25%
Business Jet 9,297 6,262 48%
Other 259 198 31%
----------------------------
Total $36,273 $28,920 25%
----------------------------
Twelve Months Ended 2007
% YTD
12/31/2007 12/31/2006 change %
---------------------------------
Military $25,396 $25,338 0% 16%
Commercial Transport 100,450 61,293 64% 63%
Business Jet 31,249 22,931 36% 20%
Other 1,145 1,205 -5% 1%
---------------------------------
Total $158,240 $110,767 43% 100%
---------------------------------
ASTRONICS CORPORATION
SALES BY PRODUCT
($, in thousands)
Three Months Ended
12/31/2007 12/31/2006 % change
------------------------------
Cockpit Lighting $9,388 $7,041 33%
Cabin Electronics 16,849 13,120 28%
Airframe Power 5,200 4,614 13%
Exterior Lighting 2,614 1,821 44%
Cabin Lighting 1,963 2,126 -8%
Other 259 198 31%
------------------------------
Total $36,273 $28,920 25%
------------------------------
Twelve Months Ended 2007
12/31/2007 12/31/2006 % change YTD %
-----------------------------------------
Cockpit Lighting $36,452 $30,623 19% 23%
Cabin Electronics 83,195 45,778 82% 53%
Airframe Power 19,772 16,934 17% 12%
Exterior Lighting 9,051 7,672 18% 6%
Cabin Lighting 8,625 8,555 1% 5%
Other 1,145 1,205 -5% 1%
-----------------------------------------
Total $158,240 $110,767 43% 100%
-----------------------------------------
ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
($, in thousands)
2006
Q1 2006 Q2 2006 Q3 2006 Q4 2006 Twelve
Months
4/1/06 7/1/06 9/30/06 12/31/06 12/31/06
------- ------- ------- -------- --------
Sales $25,263 $28,832 $27,752 $28,920 $110,767
---------------------------- ------- ------- ------- -------- --------
Net Income $1,318 $1,963 $1,648 $807 $5,736
---------------------------- ------- ------- ------- -------- --------
Bookings $23,850 $23,929 $25,985 $40,411 $114,175
---------------------------- ------- ------- ------- -------- --------
Backlog $94,706 $89,803 $88,036 $99,527 $99,527
---------------------------- ------- ------- ------- -------- --------
Book:Bill 0.94 0.83 0.94 1.40 1.03
2007
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Twelve
Months
3/31/07 6/30/07 9/29/07 12/31/07 12/31/07
------- ------- ------- -------- --------
Sales $42,875 $41,368 $37,724 $36,273 $158,240
---------------------------- ------- ------- ------- -------- --------
Net Income $4,695 $4,501 $4,126 $2,069 $15,391
---------------------------- ------- ------- ------- -------- --------
Bookings $40,351 $38,711 $33,347 $38,712 $151,121
---------------------------- ------- ------- ------- -------- --------
Backlog $97,003 $94,346 $89,969 $92,408 $92,408
---------------------------- ------- ------- ------- -------- --------
Book:Bill 0.94 0.94 0.88 1.07 0.96
Source: Astronics Corporation
Released February 14, 2008
