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Astronics
🇺🇸 NASDAQ:ATRO
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Mar 28, 2020

Astronics Q1 2020 Earnings Report

Reported financial results for the first quarter of 2020, which were impacted by COVID-19 and the grounding of the 737 MAX.

Key Takeaways

Astronics Corporation reported a challenging first quarter in 2020, with sales of $157.6 million and a net loss of $67.0 million, which included impairment charges of $74.4 million due to the impact of COVID-19 on the aerospace segment. The company has taken significant actions to reduce costs and maintain cash flow, expecting to be cash positive even with a potential 30% to 35% decline in sales from 2019.

Sales for the quarter were $157.6 million with bookings of $167.4 million.

Net loss was ($67.0) million, after impairment charges of $74.4 million.

Adjusted EBITDA was $16.2 million or 10.3% of sales.

Amended credit facility suspends leverage covenant and accommodates for challenging environment.

Total Revenue
$158M
Previous year: $208M
-24.3%
EPS
$0.06
Previous year: $0.48
-87.5%
Book-to-bill ratio
1.07
Gross Profit
$35.7M
Previous year: $52.1M
-31.4%
Cash and Equivalents
$188M
Previous year: $16M
+1079.8%
Total Assets
$850M
Previous year: $781M
+8.9%

Astronics

Astronics

Astronics Revenue by Segment

Forward Guidance

Astronics anticipates a potential revenue decline of 30% to 35% from 2019, while aiming to remain cash positive with adjusted EBITDA in the range of 5% to 9%. Capital expenditures for 2020 are expected to be approximately $8 million.

Positive Outlook

  • Management believes it has structured the Company to be cash positive at this level.
  • Adjusted EBITDA in the range of 5% to 9% is expected.
  • Capital expenditures for 2020 are expected to be approximately $8 million.
  • The company believes that its revised lending agreement, along with the actions it has taken, positions it well to operate through the COVID-19 pandemic.
  • The defense and government business appears strong.

Challenges Ahead

  • Revenue could drop 30% to 35% from 2019.
  • Aircraft build rates are expected to drop.
  • The airline aftermarket is expected to weaken considerably.
  • The commercial transport market is expected to be significantly impacted by the COVID-19 pandemic.
  • Impairment charges were recognized in the current quarter due to reduced expectations of future operating results due to the COVID-19 pandemic, which has significantly impacted the global economy, and particularly the aerospace industry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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