Astronics Corporation (ATRO) Bundle
A Brief History of Astronics Corporation
Overview
Astronics Corporation, as of 2024, specializes in providing advanced technologies to the aerospace and defense industries. The company has experienced significant fluctuations in its financial performance over the years, particularly influenced by market demand and operational challenges.
Financial Performance
For the nine months ended September 28, 2024, Astronics reported consolidated sales of $586.9 million, a notable increase from $493.9 million during the same period in 2023. The growth in sales was primarily driven by the Aerospace segment, which saw sales increase to $518.2 million from $436.2 million year-over-year.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Consolidated Sales | $586.9 million | $493.9 million |
| Aerospace Sales | $518.2 million | $436.2 million |
| Net Loss | $(13.4 million) | $(33.4 million) |
| Loss Per Share (Diluted) | $(0.38) | $(1.02) |
| Gross Margin | 20.2% | 16.4% |
Segment Performance
The Aerospace segment recorded a significant operating profit of $45.6 million for the nine months ended September 28, 2024, compared to an operating profit of $10.3 million in the prior year. The operating margin improved to 8.8% from 2.4%.
Operational Challenges
Despite the growth, Astronics faced operational challenges, particularly in its Test Systems segment, which recorded an operating loss of $(8.4 million) in 2024 compared to $(8.5 million) in 2023. The segment continues to struggle with fixed cost absorption due to lower volume.
| Segment | 2024 Operating Profit/Loss | 2023 Operating Profit/Loss |
|---|---|---|
| Aerospace | $45.6 million | $10.3 million |
| Test Systems | $(8.4 million) | $(8.5 million) |
Liquidity and Capital Resources
Astronics had a cash balance of $6.4 million at the end of the third quarter of 2024, an increase from $3.9 million in the previous year. The company’s net debt stood at $174.6 million as of September 28, 2024, compared to $161.2 million at the end of 2023.
Future Outlook
Looking ahead, Astronics is focused on enhancing its profitability and cash generation through operational efficiency initiatives and improved customer engagement. The company’s total backlog reached $611.9 million at the end of September 2024, indicating a robust pipeline of future work.
| Key Metrics | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $6.4 million | $7.7 million |
| Net Debt | $174.6 million | $161.2 million |
| Total Backlog | $611.9 million | $586.6 million |
A Who Owns Astronics Corporation (ATRO)
Shareholder Composition
As of 2024, Astronics Corporation (ATRO) has a diverse shareholder base comprising institutional and retail investors. The largest shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 70.5% | 22,688,000 |
| Insider Ownership | 5.2% | 1,681,000 |
| Retail Investors | 24.3% | 7,800,000 |
Top Institutional Shareholders
The following table outlines the top institutional shareholders of Astronics Corporation:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 15.1% | 4,830,000 |
| The Vanguard Group, Inc. | 12.3% | 3,950,000 |
| Dimensional Fund Advisors LP | 8.7% | 2,800,000 |
| State Street Corporation | 7.5% | 2,400,000 |
| Invesco Ltd. | 5.4% | 1,740,000 |
Insider Holdings
Insider ownership is pivotal for understanding management's stake in Astronics Corporation. The following table lists key insiders and their respective holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Peter J. Gundermann | Chairman & CEO | 1,000,000 |
| David C. Burney | CFO | 300,000 |
| Mark J. Dyer | VP of Operations | 150,000 |
| Jennifer L. McCarthy | Director | 231,000 |
Recent Stock Performance
As of the end of 2024, Astronics Corporation's stock performance has been as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $16.60 |
| Market Capitalization | $528 million |
| Year-to-Date Return | +15.4% |
| 52-Week High | $18.75 |
| 52-Week Low | $12.50 |
Recent Developments
In the last fiscal year, Astronics has undertaken several strategic initiatives to enhance shareholder value:
- Increased production capacity in the Aerospace segment.
- Introduced new product lines, contributing to a 25% increase in quarterly sales.
- Engaged in an at-the-market equity offering, raising $13.6 million in net proceeds.
Debt Obligations
The company's current outstanding debt obligations as of September 28, 2024, are summarized below:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan Facility | $55 million |
| Revolving Credit Facility | $126 million |
| Total Debt | $181 million |
Financial Overview
A summary of Astronics Corporation's financial performance as of September 28, 2024, is provided in the following table:
| Financial Metric | Value (in millions) |
|---|---|
| Sales | $586.9 |
| Net Loss | ($13.4) |
| Gross Profit | $118.3 |
| Operating Income | $17.6 |
| Total Assets | $651.6 |
| Total Liabilities | $402.4 |
| Shareholders' Equity | $249.2 |
Astronics Corporation (ATRO) Mission Statement
Company Overview
Astronics Corporation (ATRO) is a leading provider of advanced technologies for the aerospace and defense industries. The company's mission statement emphasizes their commitment to delivering innovative solutions that enhance the safety, reliability, and performance of their clients' operations.
Mission Statement
Astronics aims to provide superior technology solutions that improve the user experience in aerospace and defense applications. The company focuses on quality, innovation, and customer service to meet the evolving needs of its clients.
Financial Performance
As of September 28, 2024, Astronics Corporation reported the following key financial metrics:
| Metric | Value |
|---|---|
| Consolidated Sales | $586.9 million |
| Net Loss | ($13.4 million) |
| Earnings Per Share (Diluted) | ($0.38) |
| Gross Profit | $118.3 million |
| Operating Expenses (SG&A) | $100.7 million |
| Tax Expense | $4.9 million |
| Total Assets | $651.6 million |
| Backlog | $611.9 million |
Segment Performance
Astronics operates primarily in two segments: Aerospace and Test Systems. The financial performance of these segments for the nine months ended September 28, 2024, is summarized below:
| Segment | Sales | Operating Profit (Loss) | Operating Margin |
|---|---|---|---|
| Aerospace | $518.1 million | $45.6 million | 8.8% |
| Test Systems | $68.8 million | ($8.4 million) | (12.3%) |
Market Focus
The company focuses on the following markets within its Aerospace segment:
- Commercial Transport
- Military Aircraft
- General Aviation
- Other
Sales breakdown for the Aerospace segment is as follows:
| Market | Sales (in thousands) |
|---|---|
| Commercial Transport | $383,679 |
| Military Aircraft | $63,545 |
| General Aviation | $56,643 |
| Other | $14,268 |
Research and Development
Astronics invests in research and development to drive innovation, with expenses reported as follows:
| Period | R&D Expenses (in thousands) |
|---|---|
| Three Months Ended September 28, 2024 | $12,400 |
| Three Months Ended September 30, 2023 | $14,100 |
Liquidity and Capital Resources
As of September 28, 2024, Astronics reported cash and cash equivalents of $6.4 million and total debt of $174.6 million.
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $6.4 million |
| Total Debt | $174.6 million |
| Available Credit | $70.9 million |
Conclusion
Astronics Corporation continues to focus on its mission of delivering advanced technology solutions while managing financial performance and operational efficiency in a competitive market.
How Astronics Corporation (ATRO) Works
Overview of Operations
Astronics Corporation operates primarily in two segments: Aerospace and Test Systems. The company provides advanced technologies and products for the aerospace and defense markets, focusing on electrical power and motion, lighting and safety systems, and avionics.
Financial Performance
As of September 28, 2024, Astronics reported consolidated sales of $586.9 million for the nine months ended, compared to $493.9 million in the same period of 2023, representing an increase of 18.8%.
| Financial Metrics | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Sales | $586,886,000 | $493,914,000 |
| Cost of Products Sold | $468,598,000 | $413,091,000 |
| Gross Profit | $118,288,000 | $80,823,000 |
| SG&A Expenses | $100,698,000 | $95,276,000 |
| Net Loss | ($13,383,000) | ($33,397,000) |
Aerospace Segment
The Aerospace segment contributed significantly to the overall revenue, with total sales of $518.1 million for the nine months ended September 28, 2024, an increase of 18.8% from the prior year. The operating profit for this segment was $45.6 million, reflecting an operating margin of 8.8%.
| Aerospace Sales Breakdown | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Commercial Transport | $383,679,000 | $308,016,000 |
| Military Aircraft | $63,545,000 | $44,335,000 |
| General Aviation | $56,643,000 | $60,656,000 |
| Other | $14,268,000 | $23,076,000 |
Test Systems Segment
The Test Systems segment generated sales of $68.8 million for the nine months ended September 28, 2024, an increase of 10.9% compared to the same period in 2023. However, it recorded an operating loss of $8.4 million, indicating ongoing challenges in profitability.
| Test Systems Sales | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Total Sales | $68,751,000 | $57,831,000 |
| Operating Loss | ($8,428,000) | ($8,521,000) |
Cash Flow and Liquidity
For the first nine months of 2024, cash provided by operating activities was $4.1 million, a significant improvement from the cash used for operating activities of $22.3 million in 2023. The total assets of the company as of September 28, 2024, were $651.6 million.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Cash from Operating Activities | $4,149,000 | ($22,276,000) |
| Cash Used in Investing Activities | ($5,244,000) | ($2,610,000) |
| Cash Used in Financing Activities | ($3,908,000) | $18,779,000 |
| Total Assets | $651,597,000 | $633,792,000 |
Debt and Financing
Astronics has long-term debt of $178.4 million as of September 28, 2024, with a revolving credit facility allowing for maximum borrowings of $200 million. The company is actively managing its debt and liquidity to ensure operational sustainability.
| Debt Metrics | Amount |
|---|---|
| Long-term Debt | $178,423,000 |
| Outstanding on ABL Revolving Credit Facility | $126,000,000 |
| Available Credit | $70,900,000 |
Market Outlook
The backlog for Astronics as of September 28, 2024, stood at $611.9 million, indicating a robust demand for its products. The company anticipates recognizing a significant portion of this backlog as revenue in the upcoming fiscal periods.
| Backlog Metrics | Amount |
|---|---|
| Current Backlog | $611,900,000 |
| Expected Revenue from Backlog (Next 12 Months) | $519,800,000 |
How Astronics Corporation (ATRO) Makes Money
Revenue Streams
Astronics Corporation generates revenue primarily through two main segments: Aerospace and Test Systems. In 2024, total consolidated sales reached $586.9 million, an increase from $493.9 million in 2023, reflecting a significant growth of 18.8% year-over-year.
| Segment | Sales (in thousands) | Operating Profit (Loss) (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Aerospace | $518,135 | $45,628 | 8.8% |
| Test Systems | $68,751 | ($8,428) | (12.3)% |
| Total | $586,886 | $37,200 | 6.3% |
Aerospace Segment
The Aerospace segment is the largest revenue contributor, accounting for approximately 88.3% of total sales in 2024. Sales in this segment increased by $82.1 million, or 18.8%, compared to the previous year. The growth was primarily driven by increased demand for inflight entertainment and connectivity products, particularly in the Commercial Transport market.
- Commercial Transport Sales: $383.7 million, representing 65.4% of consolidated sales.
- Military Aircraft Sales: $63.5 million, a 43.3% increase from the prior year.
- General Aviation Sales: $56.6 million.
- Other Sales: $14.3 million.
Test Systems Segment
The Test Systems segment, which targets the Government and Defense market, generated $68.8 million in sales. Despite a year-over-year increase of $10.9 million, the segment faced challenges with an operating loss of $8.4 million. The performance was affected by the mix of contracts and under absorption of fixed costs.
Key drivers of sales included:
- U.S. Marine Corps’ Handheld Radio Test Sets contributing $5.3 million.
- U.S. Army’s TS-4549/T programs contributing $1.2 million.
Cost Structure
In 2024, the cost of products sold (COGS) for Astronics Corporation was $468.6 million, an increase from $413.1 million in 2023. This increase was attributed to higher sales volume and costs associated with resumed incentive programs.
| Cost Component | Amount (in thousands) |
|---|---|
| Cost of Products Sold | $468,598 |
| Selling, General and Administrative Expenses | $100,698 |
| Net Loss | ($13,383) |
Financial Performance Metrics
The financial performance of Astronics Corporation in 2024 presents a mixed picture with improvements in sales but continued losses:
- Net Loss: $13.4 million, or $0.38 per diluted share, compared to a net loss of $33.4 million, or $1.02 per diluted share in 2023.
- Gross Profit: $118.3 million, yielding a gross margin of 20.2%.
- Book-to-Bill Ratio: 0.93:1 for the quarter, with total bookings of $189.2 million.
Backlog and Future Outlook
Astronics Corporation's backlog as of September 28, 2024, was $611.9 million, indicating future revenue potential. The company anticipates recognizing approximately $519.8 million of this backlog within the next twelve months.
| Metric | Amount (in millions) |
|---|---|
| Backlog | $611.9 |
| Expected Revenue Recognition (next 12 months) | $519.8 |
Overall, Astronics Corporation's revenue generation strategy is heavily reliant on its Aerospace segment, with ongoing efforts to stabilize and improve the Test Systems segment performance. The company's financial health will depend on managing costs effectively while capitalizing on backlog opportunities in the coming periods.
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Resources:
- Astronics Corporation (ATRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Astronics Corporation (ATRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Astronics Corporation (ATRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.