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 ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $105 million, down $51 million from the first quarter of 2020, reflecting the ongoing impact of the pandemic [20] - The GAAP net loss for the quarter was $11.9 million, with an operating loss of $5 million and a slight adjusted EBITDA loss of $500,000 [20][21] - Cash flow from operations was negative $6.9 million, primarily due to increased receivables and a decrease in accounts payable [23] Business Line Data and Key Metrics Changes - Aerospace segment sales were $59.7 million, down 42% from the first quarter of 2020, resulting in a segment operating loss of $5.6 million [22] - The Test Systems segment saw sales of $24.4 million, up 64% from the first quarter of 2020, with an operating income of $1.2 million [22][19] Market Data and Key Metrics Changes - Bookings in the aerospace segment improved significantly, with first quarter bookings reaching $100 million, up from $74 million in the previous quarter [11] - The commercial transport market saw sales of $38.2 million, down 62.8% compared to the first quarter of 2020 [20] Company Strategy and Development Direction - The company continues to invest in product development and new programs to position itself for a post-pandemic recovery [21] - There is a focus on increasing production rates for narrow-body aircraft, with expectations for a shift in the commercial transport business towards narrow-body sales [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in narrow-body aircraft sales as domestic flying increases [16] - The company anticipates second quarter revenues to be around $115 million, with potential for upside [28] Other Important Information - The company amended its credit facility, which matures in February 2023, and is currently compliant with its financial covenants [24][25] - There is an ongoing review regarding a recalculated earn-out from the sale of the semiconductor business, which has been revised from $10.7 million to $7.1 million [23][60] Q&A Session Summary Question: Can you provide more color on the sequential step down in Aerospace sales and expectations for the second quarter? - Management indicated that the step down was due to various factors, including inventory management and delivery schedules, and expects revenue growth in the upcoming quarters [31][32] Question: What is the outlook for bookings in Aerospace? - Bookings have improved across the board, particularly in narrow-body and business jets, with a significant increase in activity noted [34] Question: Are there any changes anticipated in the credit agreement due to leverage concerns? - Management acknowledged the tighter situation than expected but does not forecast a violation of covenants at this time [36] Question: What is the current sentiment from airline customers regarding retrofit campaigns? - There is positive interest in updating in-flight entertainment systems, particularly in North America and China [42] Question: Are there any supply chain issues affecting the company? - Management noted emerging part shortages and lead time stretches but does not currently factor these into revenue expectations [45] Question: What is the outlook for the Test segment and potential large projects? - The company remains optimistic about the Test segment, with several high-value targets being pursued despite some delays due to COVID [54][56]

Financial Data and Key Metrics Changes - Revenue for Q4 2020 was $115 million, down 42% year-over-year but up 8% sequentially [15][16] - For the full year 2020, sales totaled $500 million, down from $773 million in 2019, with a GAAP net loss of $116 million compared to a profit of $52 million in 2019 [16][20] - Adjusted EBITDA for 2020 was $29 million, down from $88 million in 2019 [16] Business Line Data and Key Metrics Changes - Aerospace segment revenue was down 40% in 2020 compared to 2019, while the Test segment (excluding semiconductor business) was up 15% [16][20] - Q4 bookings were $116 million, a 42% increase over Q3, with aerospace bookings up 14% and test bookings up 150% year-over-year [11][15] Market Data and Key Metrics Changes - The commercial transport market, which accounted for 70% of volume pre-pandemic, is expected to recover as vaccine distribution increases [10] - The general aviation business jet market, which was about 10% of volume pre-pandemic, is seeing major OEMs planning increased production rates in 2021 [12] - Government and defense spending is expected to remain strong through 2021, contributing to the company's revenue [13] Company Strategy and Development Direction - The company aims to protect employees and meet customer requirements while positioning for success post-pandemic [7][8] - Focus on demand recovery is critical, with management optimistic about the second half of 2021 seeing increased traffic due to vaccine rollout [10] - The company is exploring opportunities in the transit market, having secured contracts in New York and Atlanta, indicating potential for growth in this area [43][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing impact of COVID-19 but sees signs of recovery and increased demand in core markets [6][10] - The expectation is that Q1 2021 revenues will be around $100 million, with a stronger Q2 anticipated [26] - Management is closely monitoring bookings, which will drive shipments in the second half of the year [26] Other Important Information - The company amended its credit facility to suspend maximum leverage ratios, allowing for better compliance with debt covenants [22][24] - The company ended 2020 with $242 million in liquidity, providing a cushion for operations [24] Q&A Session Summary Question: Can you talk about retrofit activity and its portion of sales pre-COVID? - Retrofit sales were significant, with approximately 20% of total sales related to aftermarket, primarily in-flight entertainment [29][30] Question: What is the current build rate for the 737 MAX? - The current build rate is approximately zero, with expectations to ramp up production in the second half of the year [32][33] Question: Can you provide updates on business jet work and the Collins contract? - Business jet work is primarily line fit, with positive feedback on the Collins satellite connectivity program [34][35] Question: How significant was the MQ-25 Stingray contract to revenues? - The MQ-25 contract is not critical but indicates potential growth in flight-critical electrical power systems for small aircraft [36][38] Question: What is the shipping rate for the 787? - The shipping rate aligns with Boeing's planned production rate, expected to be around 6 per month [39][40] Question: What does the pipeline look like for transit contracts? - The company is pursuing additional opportunities in the transit market following recent contract wins, indicating a growing potential [42][44] Question: How have orders trended through January and February? - Overall growth in bookings is expected, particularly in aerospace, with a positive trend noted for the first quarter [49][50]

Astronics Corporation (NASDAQ:ATRO) Q3 2020 Earnings Conference Call October 30, 2020 11:00 AM ET Company Participants Deborah Pawlowski - Investor Relations Peter Gundermann - Chairman, President & Chief Executive Officer David Burney - Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities Ken Herbert - Canaccord Genuity Michael Ciarmoli - Truist Securities Operator Greetings, and welcome to the Astronics Corporation Third Quarter 2020 Financial Results Call. At this time all ...

Astronics Corporation (NASDAQ:ATRO) Q2 2020 Earnings Conference Call July 31, 2020 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 Ken Herbert – Canaccord Jon Tanwanteng – CJS Securities Michael Ciarmoli – SunTrust Robinson Humphrey Operator Greetings, and welcome to Astronics Corporation Second Quarter 2020 Financial Results Conference Call. At this t ...