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Oct 02, 2021
Astronics Q3 2021 Earnings Report
Astronics reported third quarter financial results with sales up 5% and net loss continuing sequential improvement.
Key Takeaways
Astronics Corporation reported a 5% increase in sales for the third quarter of 2021, reaching $111.8 million. The net loss showed sequential improvement, and adjusted EBITDA was $2.8 million, a significant improvement over the prior-year period. Bookings were up 88% year-over-year, resulting in a book-to-bill ratio of 1.37, and backlog increased sequentially to $354.4 million.
Sales for the quarter were $111.8 million, up 5% over prior-year period
Net loss of $7.2 million continues sequential improvement through 2021
Adjusted EBITDA was $2.8 million; measurably improved over prior-year period loss and trailing second quarter
Bookings up 88% over prior-year period and up 22% over trailing second quarter to $153.5 million; Achieved book-to-bill ratio of 1.37
Astronics
Astronics
Astronics Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.comTest Systems Revenue
CapyFin.com Forward Guidance
The company expects higher shipment levels in the final quarter of 2021, with fourth quarter revenues projected to be between $115 million and $118 million.
Positive Outlook
- Expecting to close 2021 with a higher shipment level in the final quarter.
- Shipping volume is expected to continue to strengthen as we move into 2022.
- The AMJP is expected to contribute approximately $7.3 million to gross profit as an offset to cost of goods sold in the fourth quarter
- At the end of the third quarter, the Company had backlog of $354 million, of which $113 million is expected to ship in the fourth quarter.
- The company expects additional cash inflows over the next several quarters related to an earn out from the 2019 sale of its semiconductor test business, an approximate $10 million tax refund and improved sales volumes.
Challenges Ahead
- Supply chain challenges introduce a level of uncertainty.
- The actual benefit between the two quarters may differ from these estimates based on actual payroll attribution for the eligible employee group.
- Test business continued to experience lower-than-expected bookings in the third quarter, which we continue to believe is caused mostly by the pandemic.
- Test system sales were down $7.9 million compared with the prior-year period driven by lower defense and transit revenue caused by COVID-related delays.
- Test Systems operating loss was negatively affected by lower volume and $1.0 million in legal fees related to infringement claims and contractual disputes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income