Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $159 million, a significant increase from the previous range of $105 million to $130 million, indicating a positive revenue ramp [8][17] - Bookings for Q4 2022 were $182 million, the second highest since COVID, contributing to a record backlog of $571 million entering 2023 [10][11] - The company achieved a book-to-bill ratio of 1.29 for the year, with total bookings for 2022 at $690 million [10] Business Line Data and Key Metrics Changes - Sales to the commercial transport market increased by 76% to approximately $103 million in Q4 2022, up over $44 million year-over-year [24] - Contribution margin on incremental sales is currently around 40%, lower than pre-pandemic levels of 45% to 50%, primarily due to increased input costs [25][20] Market Data and Key Metrics Changes - The recovery in the commercial airline industry has been driven by the U.S. and Europe, with expectations for a strong return of widebody aircraft as travel restrictions ease [12][14] - The company anticipates that the opening of China will positively impact the overall industry recovery [14] Company Strategy and Development Direction - The company is maintaining its revenue guidance for 2023 at $640 million to $680 million, reflecting a growth expectation of approximately 23% over 2022 [33][36] - The focus is on improving supply chain performance and capitalizing on strong demand, particularly in the narrowbody and emerging widebody markets [12][35] Management's Comments on Operating Environment and Future Outlook - Management noted that while supply chain issues persist, there are improvements in predictability and response times compared to the previous year [18][19] - The company expects to see continued strong demand driven by both narrowbody and widebody aircraft, with a positive outlook for the recovery of the airline industry [12][14] Other Important Information - The company completed a refinancing deal in January 2023, which includes a $90 million term loan and a $150 million revolving credit facility [29][30] - The effective tax rate for the year is projected to be negative 500%, primarily due to deferred tax asset reserves [32] Q&A Session Summary Question: Supply chain improvements into Q1 - Management indicated that while supply chain improvements are noted, lead times remain longer than pre-COVID levels, affecting the ability to accelerate production [41][42] Question: Contribution margin expectations - The contribution margin is expected to gradually improve as spot buys decrease and new contracts reflect higher costs [46] Question: Cash tax burden clarification - The cash tax burden for 2023 is expected to be around $6 million to $7 million, not $67 million as initially misheard [47] Question: Aerospace margins and pricing - Management expects aerospace margins to improve with top-line growth and better absorption of fixed costs [52] Question: Widebody revenue forecast - Last year's widebody revenue was approximately 10% to 15% of pre-COVID levels, with expectations to reach 30% to 40% this year [65][66]

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $131 million, which was below the expected $150 million, primarily due to supply chain issues and program delays [7][8] - Adjusted EBITDA for the quarter was negative 0.6%, reflecting margin pressure from lower volume and elevated input costs [17] - Bookings for the third quarter were strong at $184 million, resulting in a book-to-bill ratio of 1.4, indicating robust demand [18][19] Business Line Data and Key Metrics Changes - Consolidated sales increased to $131.4 million, driven by a 36% increase in the commercial transport market compared to the previous year [22] - General Aviation sales rose to $14.8 million, while military aerospace sales decreased to $12.5 million due to reduced non-recurring engineering revenue [23] - The test segment saw sales increase to $19.3 million, driven by higher instrument test and transit test volumes [23] Market Data and Key Metrics Changes - The commercial transport market showed significant recovery, with a 36% year-over-year increase in sales [22] - The company noted a strong demand for its products, particularly in the narrowbody and widebody segments, with expectations of increased aftermarket sales [50][66] Company Strategy and Development Direction - The company is optimistic about future revenue growth, projecting fourth-quarter revenue in the range of $140 million to $150 million and 2023 revenue between $640 million and $680 million [32][33] - The company is focusing on addressing supply chain challenges and expects improvements in lead times and inventory levels to support future growth [11][34] - The company is also working on securing significant contracts, such as the FLRAA and Army radio business, which could contribute an estimated $20 million to $25 million in revenue next year [59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing supply chain issues but expressed optimism about improvements, indicating that lead times are beginning to decrease [11][12] - The company is facing margin pressures due to inflation and atypical costs but expects to pass some of these costs onto customers in future contracts [25][26] - Management remains confident in achieving breakeven EBITDA in the fourth quarter and anticipates a positive cash flow as inventory levels stabilize [40][54] Other Important Information - The company experienced atypical costs of $4.6 million in the third quarter due to lease exit costs and legal settlements [16] - The company has amended its credit facility, extending the expiration to November 2023, which provides more time to secure a long-term credit arrangement [27] Q&A Session Summary Question: Does the inventory built give confidence to shift revenue guidance? - Management indicated that they have good visibility on inventory for the fourth quarter, with some hotspots being actively managed [36][38] Question: What is the new estimate for breakeven on a pretax income basis? - Management stated that the GAAP pretax breakeven point is around $165 million, factoring in current spot buys [40] Question: What is the status of the refinancing process? - Management is targeting to complete refinancing before year-end and is confident about finalizing it in December [42] Question: What are the current production rates and their impact on guidance? - Management noted that production rates for Boeing's 737 MAX are stable, and there is a positive trend in aftermarket demand [50] Question: How much of the guidance includes FLRAA and Army radio business? - Management indicated that the guidance includes a risk-reduced estimate of $20 million to $25 million from these programs [58] Question: Is there potential for repricing contracts due to inflation? - Management clarified that while long-term contracts are less flexible, they are successfully repricing some products and addressing cost increases with customers [60][62] Question: What is the pricing situation for aftermarket business? - Management expressed confidence in the pricing for recent demand, noting that older price levels are under pressure but newer contracts are more favorable [64][66]

Financial Data and Key Metrics Changes - Second quarter bookings were $148 million, resulting in a book-to-bill ratio of 1.15 and a record backlog of $494 million [5][6] - Revenue for the second quarter was $129 million, an increase from the previous four-quarter average of $114 million, marking the highest volume since the pandemic began [9][10] - The company revised its full-year revenue guidance to a range of $550 million to $580 million, implying an average quarterly volume of $160 million in the second half of the year [10][14] Business Line Data and Key Metrics Changes - The commercial transport market continues to drive revenue growth, with a significant increase in bookings and sales [21] - Major program wins include in-seat power for Southwest Airlines, SATCOM hardware with Safran, and an electrical distribution system for the Lilium aircraft, although these did not significantly contribute to second quarter bookings [7][8][41] Market Data and Key Metrics Changes - The aviation industry, particularly commercial transport, is recovering, contributing to strong demand for the company's products [5][9] - Supply chain challenges, particularly with electronic components, continue to impact operations and revenue realization [12][14] Company Strategy and Development Direction - The company is focused on maintaining its product line strategy and customer relationships as the aviation industry recovers from the pandemic [36] - There is an emphasis on developing capabilities for the electric vertical takeoff and landing (eVTOL) market, with expectations of significant future contributions [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand but acknowledged ongoing supply chain struggles and inflationary pressures affecting margins [12][16] - The company expects a revenue ramp-up in the second half of the year, driven by strong bookings and backlog, despite supply chain challenges [10][64] Other Important Information - The company extended its revolving credit facility by three months to allow for a new long-term credit arrangement [20][27] - Cash flow for the quarter was negative, with a $10.6 million use for operations, primarily due to increased inventory levels [25][26] Q&A Session Summary Question: What specific components are causing supply chain difficulties? - Management indicated that electronic components are the primary issue, along with raw materials like plastics and hardware, describing the situation as a "whackamole" effort [32] Question: Can you elaborate on the new contracts with Southwest Airlines and others? - The Southwest contract involves in-seat power for their Max fleet, with potential revenues around $100,000 per ship. The Safran program aims to provide flexible satellite communication capabilities, while the Lilium project focuses on eVTOL systems [36][40] Question: What is the outlook for the FLRAA and FARA programs? - The FLRAA program award is expected in mid to late October, while the FARA program has been delayed by about a year [56] Question: Will the company be operating income positive in the second half? - Management stated that breakeven sales are around $160 million to $165 million per quarter, and they expect to generate positive cash flow if they can manage working capital effectively [49] Question: What are the details of the new credit facilities? - The new credit facilities will be SOFR-based, with expected increases in annual interest expense due to rising SOFR rates and spreads [51]

Astronics Corporation (NASDAQ:ATRO) Q1 2022 Earnings Conference Call May 6, 2022 11:00 AM ET Company Participants Peter Gundermann - Chairman, President and CEO Deborah Pawlowski - Kei Advisors LLC, IR David Burney - EVP and CFO Conference Call Participants Pete Osterland - Truist Jonathan Tanwanteng - CJ Securities Operator Greetings and welcome to the Astronics Corporation First Quarter Fiscal Year 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question ...

Atronics Corporation (NASDAQ:ATRO) Q4 2021 Earnings Conference Call March 2, 2022 11:00 AM ET Company Participants Peter Gundermann – Chairman, President and Chief Executive Officer Deborah Pawlowski – Kei Advisors LLC, Investor Relations David Burney – Executive Vice President and Chief Financial Officer Conference Call Participants Michael Ciarmoli – Truist Securities Jonathan Tanwanteng – CJS Securities Dick Ryan – Colliers Securities Operator Greetings and welcome to the Astronics Corporation Fourth Qua ...

Financial Data and Key Metrics Changes - Consolidated sales for Q3 2021 were $111.8 million, which was below the expected range of $115 million to $120 million, representing a 5% increase from the same quarter last year but flat sequentially from Q2 2021 [24][9] - Adjusted EBITDA for the quarter was approximately $2.8 million, showing improvement compared to previous quarters with similar revenues [11][25] - The company experienced a supply chain impact estimated between $8 million to $10 million for the quarter, affecting revenue generation [10][9] Business Line Data and Key Metrics Changes - Aerospace segment sales increased by 16% year-over-year to $57.5 million, driven by higher volumes in seat and passenger power products [25] - The Test segment saw a revenue decline of about 33% compared to the previous year's third quarter, attributed to decreases in defense and transit areas [25][21] - Bookings for the Aerospace segment were $142 million with a book-to-bill ratio of 1.49, indicating strong demand [15] Market Data and Key Metrics Changes - The aerospace market is experiencing a positive trend, particularly in narrowbody aircraft, with increased flight activity and production rates driven by the 737 MAX [16] - Military aircraft demand remains stable, primarily driven by the F35 program [18] - The Test segment continues to face challenges, with bookings significantly below the required levels to maintain a healthy business [21] Company Strategy and Development Direction - The company is focusing on emerging opportunities in the electric aircraft segment, leveraging its expertise in electrical power distribution [19][20] - Plans for facility consolidation are underway, expected to be completed by mid-2022, which aims to improve operational efficiency [28] - The company anticipates strong double-digit growth for 2022, contingent on resolving supply chain issues and labor shortages [31] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the worsening supply chain situation, with no signs of improvement from various operating units [37] - The company expects to recognize significant benefits from the AMJP grant in the upcoming quarters, which will positively impact gross profit [26] - Future EBITDA margins are expected to improve as top-line growth is anticipated, although challenges from rising material costs and labor shortages remain [66][67] Other Important Information - The company concluded the sale of a facility in Fort Lauderdale, which will contribute to cash flow in Q4 2021 [28] - Cash flow from operations was negatively impacted by a $21 million increase in net working capital during the quarter [29] Q&A Session Summary Question: Can you provide more details on the aerospace bookings that will go into the Test segment? - Management clarified that certain bookings categorized under aerospace will appear in the other revenue category when shipped, primarily due to contract build programs initiated during the pandemic [72][34] Question: What are the expectations for supply chain disruptions moving into Q4 and 2022? - Management anticipates that supply chain challenges may worsen, impacting revenue generation and operational efficiency [37] Question: How is the company addressing pricing pressures and cost increases? - The company is exploring temporary surcharges and has seen some success in passing on costs to customers, although overall price increases have not yet fully matched rising costs [51][52] Question: What is the outlook for the F35 program and its impact on the company? - Management expects the F35 program to remain important, with potential offsets from upgrades and changes despite anticipated rate drops [75] Question: What is the breakeven revenue level for the company currently? - The breakeven point has increased slightly due to rising material costs, making it difficult to predict accurately [76][77]

Astronics Corporation (NASDAQ:ATRO) Q2 2021 Earnings Conference Call August 6, 2021 11:00 AM ET Company Participants Deborah Pawlowski - Investor Relations Peter Gundermann - Chairman, President and Chief Executive Officer Dave Burney - Chief Financial Officer Conference Call Participants Michael Ciarmoli - Truist Jon Tanwanteng - CJS Securities Dick Ryan - Colliers Operator Greetings. Welcome to the Astronics Corporation Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] Please ...