Astronics (ATRO)2024-08-01 20:22Financial Performance - Sales grew 14% to $198.1 million in Q2 2024, compared to $174.5 million in Q2 2023[2] - Operating income increased to $7.6 million, or 3.8% of sales, up from $2.4 million, or 1.4% of sales, in the prior year[6] - Net income for the quarter was $1.5 million, or $0.04 per diluted share, compared to a net loss of $12.0 million, or $0.37 per diluted share, in the prior year[8] - Adjusted EBITDA grew 28% to $20.2 million, or 10.2% of sales, compared to $15.8 million, or 9.1% of sales, in the prior year[6] - Gross profit for Q2 2024 was $41.4 million, resulting in a gross margin of 20.9%, compared to 18.7% in Q2 2023[30] - Net income for Q2 2024 was $1.5 million, a significant improvement from a net loss of $12.0 million in Q2 2023[34] - Adjusted EBITDA for Q2 2024 was $20.2 million, with an adjusted EBITDA margin of 10.2%, up from 9.1% in Q2 2023[34] - Operating income for Q2 2024 was $7.6 million, leading to an operating margin of 3.8%, compared to 1.4% in Q2 2023[30] - The company reported a basic earnings per share of $0.04 for Q2 2024, compared to a loss of $0.37 per share in Q2 2023[30] - Astronics Corporation reported a net loss of $1,645,000 for the six months ended June 29, 2024, compared to a net loss of $16,414,000 for the same period in the previous year[39] - Cash flows from operating activities showed a net cash used of $4,223,000 for the six months ended June 29, 2024, significantly improved from $21,151,000 used in the same period last year[39] Sales and Backlog - Bookings in the quarter were $219.0 million, resulting in a record backlog of $633.4 million with a book-to-bill ratio of 1.11x[2] - Backlog at the end of Q2 2024 was a record $633.4 million, with approximately $402.3 million expected to ship in 2024[21] - Total consolidated sales for the three months ended June 29, 2024, were $198,114,000, representing a 13.6% increase from $174,454,000 in the same period last year[42] - Aerospace segment sales increased by 11.7% to $176,943,000 for the three months ended June 29, 2024, compared to $158,382,000 for the same period in 2023[46] - The military aircraft market saw a significant sales increase of 82.4% to $24,781,000 for the three months ended June 29, 2024, compared to $13,584,000 in the same period last year[45] - Total bookings for Q3 2023 were $176.0 million, with a book-to-bill ratio of 1.08 for Aerospace[49] - Total backlog as of Q3 2023 was $604.3 million, with Aerospace backlog at $513.9 million[49] - The backlog for Test Systems decreased to $90.4 million in Q3 2023[49] Segment Performance - Aerospace segment sales increased 11.7% to $176.9 million, driven by a 14.6% increase in Commercial Transport sales[10] - Test Systems segment sales were $21.2 million, up $5.1 million, primarily due to the U.S. Army TS-4549/T contract[12] - The operating profit for the Aerospace segment was $19,280,000, with a margin of 10.9%, up from $13,719,000 and a margin of 8.7% in the prior year[42] - The Test Systems segment reported sales of $21,171,000 for the three months ended June 29, 2024, a 31.7% increase from $16,072,000 in the same period last year[46] Guidance and Future Outlook - The company raised its 2024 revenue guidance to $780 million to $800 million, representing a 15% increase over 2023 sales[21] - The company expects continued growth in the aerospace sector, driven by increased demand in commercial transport and military aircraft markets[41] - The company continues to focus on improving operational efficiency and expanding its market presence through new product development and strategic initiatives[28] Capital Expenditures and Debt - Capital expenditures in Q2 2024 were $1.8 million, with net debt increasing to $174.0 million from $161.2 million at the end of 2023[18] - Capital expenditures for Q2 2024 were $1.8 million, down from $2.2 million in Q2 2023[30] - Long-term debt increased to $172.6 million as of June 29, 2024, compared to $159.2 million at the end of 2023[36] - Capital expenditures for the six months ended June 29, 2024, were $3,394,000, compared to $3,806,000 in the same period last year[39] Assets and Cash Position - Total assets as of June 29, 2024, were $644.9 million, an increase from $633.8 million at the end of 2023[36] - The company had cash and cash equivalents of $4,392,000 at the end of the period, slightly up from $4,294,000 at the end of the previous year[39]