Astronics (US:ATRO)2021-02-24 06:23Financial 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]