Exhibit 99.1
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For more information contact: |
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David C. Burney, Chief Financial Officer
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Deborah K. Pawlowski |
Phone: (716) 805-1599, ext. 159
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Kei Advisors LLC |
Fax: (716) 805-1286
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Phone: (716) 843-3908 |
Email: david.burney@astronics.com
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Email: dpawlowski@keiadvisors.com |
FOR IMMEDIATE RELEASE
Astronics Corporation Revises Fourth Quarter Results in Response to Expected Bankruptcy Liquidation of Eclipse
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Fourth quarter and full year EPS reduced by an additional $0.15 |
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2009 revenue guidance remains in range of $230 to $245 million |
EAST AURORA, NY, March 2, 2009 — Astronics Corporation (NASDAQ: ATRO) today announced that its
previously reported results for the 2008 fourth quarter and full year ended December 31, 2008, have
been revised to reflect the write off of all remaining assets related to its business with Eclipse
Aviation, which last week informed its suppliers that it has suspended all business operations
after deciding not to contest a motion by senior secured creditors to convert its bankruptcy
proceedings to a Chapter 7 liquidation.
On February 12, 2009, Astronics reported its fourth quarter and full year 2008 results, which
included a $7.5 million, or $0.46 per share, charge related to Eclipse. The charge was comprised
of $1.0 million for accounts receivable and $6.5 million for inventory and equipment. At the time,
the Company had $1.0 million of accounts receivable and $9.0 million of inventory and equipment
related to Eclipse. In November 2008, Eclipse had filed for protection under Chapter 11 of the
bankruptcy law. Its stated intention at that time was to reorganize and emerge from bankruptcy
under new ownership. Based on this information, Astronics retained inventory and equipment
totaling $2.5 million in anticipation of future business with Eclipse.
In light of the most recent information, specifically the change in bankruptcy status which
occurred prior to Astronics’ filing of its financial statements, the Company recorded an additional
pre-tax charge of $2.5 million for inventory and equipment related to the Eclipse business. The
effect net of tax was an additional $1.6 million, or $0.15 per share, reduction in net income for
the 2008 fourth quarter and full year compared with earlier released financial results. As a
result, net loss for the fourth quarter of 2008 was $1.8 million, or $0.17 per diluted share, and
net income for 2008 was $8.4 million, or $0.79 per diluted share. Revised consolidated financial
data is included with this release.
Astronics Corporation Revises Fourth Quarter Results in Response to Expected Bankruptcy Liquidation of Eclipse
March 2, 2009
Astronics also reaffirms its previous expectations for 2009 revenue to be in the range of
approximately $230 and $245 million.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a designer and manufacturer of high performance lighting and power
management systems for the global aerospace industry; automated diagnostic test systems, training
and simulation devices for the defense industry; and safety and survival equipment for airlines and
airfields. Astronics’ strategy is to develop and maintain positions of technical leadership in its
chosen aerospace and defense markets, to leverage those positions to grow the amount of content and
volume of product it sells to those markets and to selectively acquire businesses with similar
technical capabilities that could benefit from our leadership position and strategic direction.
Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, 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.
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 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.
FINANCIAL TABLES FOLLOW.
ASTRONICS CORPORATION
CONSOLIDATED INCOME STATEMENT DATA
(unaudited)
(in thousands except per share data)
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Three months ended |
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Twelve months ended |
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12/31/2008 |
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12/31/2007 |
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12/31/2008 |
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12/31/2007 |
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Sales |
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$ |
44,381 |
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$ |
36,273 |
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$ |
173,722 |
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$ |
158,240 |
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Cost of products sold |
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42,438 |
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28,630 |
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143,249 |
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117,370 |
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1,943 |
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7,643 |
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30,473 |
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40,870 |
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Gross margin |
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4.4 |
% |
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21.1 |
% |
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17.5 |
% |
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25.8 |
% |
Selling, general and administrative |
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4,867 |
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3,851 |
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17,419 |
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16,408 |
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Income(loss) from operations |
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(2,924 |
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3,792 |
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13,054 |
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24,462 |
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Operating margin |
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-6.6 |
% |
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10.5 |
% |
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7.5 |
% |
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15.5 |
% |
Interest expense, net |
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140 |
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298 |
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694 |
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1,370 |
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Other (income) expense |
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(3 |
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105 |
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70 |
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94 |
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Income(loss) before tax |
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(3,061 |
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3,389 |
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12,290 |
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22,998 |
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Income taxes(benefit) |
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(1,280 |
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1,320 |
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3,929 |
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7,607 |
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Net Income(loss) |
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$ |
(1,781 |
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$ |
2,069 |
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$ |
8,361 |
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$ |
15,391 |
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*Basic earnings(loss) per share: |
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$ |
(0.17 |
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$ |
0.20 |
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$ |
0.82 |
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$ |
1.52 |
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*Diluted earnings(loss) per share: |
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$ |
(0.17 |
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$ |
0.19 |
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$ |
0.79 |
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$ |
1.44 |
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*Weighted average diluted shares outstanding |
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10,556 |
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10,854 |
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10,650 |
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10,711 |
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Capital Expenditures |
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$ |
1,137 |
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$ |
2,026 |
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$ |
4,325 |
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$ |
9,592 |
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Depreciation and Amortization |
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$ |
1,153 |
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$ |
993 |
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$ |
4,142 |
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$ |
3,440 |
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* All share quantities and per share data reported for 2007 has been restated to reflect the impact
of the one-for-four Class B stock distribution for shareholders of record on October 6, 2008.
