Loading...
•
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.
Astronics
Astronics
Astronics Revenue by Segment
Astronics Revenue by Geographic Location
Revenue by Segment
Aerospace Revenue
CapyFin.comTest Systems Revenue
CapyFin.comRevenue by Geographic Location
Commercial Transport Revenue
CapyFin.comMilitary Aircraft Revenue
CapyFin.comGeneral Aviation Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- 737 MAX program deliveries are not anticipated until the second half of 2021.
- The pandemic is ongoing and the company will continue to deal with it for the remainder of 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income