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Sep 26, 2020
Astronics Q3 2020 Earnings Report
Astronics experienced challenges due to the ongoing COVID-19 pandemic, particularly impacting its core aerospace markets.
Key Takeaways
Astronics Corporation reported a challenging third quarter with sales of $106.5 million and a net loss of $5.3 million. The company's largest market, Commercial Aerospace, remained weak, although Defense and Government markets remained strong.
Third quarter revenue was $106.5 million, a 40% decrease compared to the same period in 2019.
Net loss for the quarter was $5.3 million.
Adjusted EBITDA was $(0.1) million, near breakeven.
Bookings were $81.6 million, with a book-to-bill ratio of 0.77:1.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Astronics expects full year 2020 sales to be at, or slightly above, $500 million and anticipates being cash positive for the year with adjusted EBITDA margins of approximately 5% to 7%.
Positive Outlook
- Expects market conditions to steadily improve going forward, beginning in the fourth quarter.
- Believes they are well positioned to benefit from improvement in core aerospace markets through 2021.
- They are positioned to emerge from these times a better company.
- Expects to remain cash positive and to continue to develop the products and technologies customers will require in the future.
- Plans to use excess free cash flow from operations to reduce outstanding debt.
Challenges Ahead
- COVID-19 pandemic continues to impact the company's core aerospace markets.
- Commercial Aerospace market remains weak.
- Aftermarket remains weak with travel restrictions and quarantine rules dampening demand for airline travel.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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