Astronics (ATRO) Q4 2001 earnings summary

Executive summary

• Record 2001 sales and earnings; EBITDA exceeded 20% of net sales, debt was under 27% of capitalization, and return on beginning equity was 19%.

• Results came amid a sharp post-September 11 slowdown in commercial and business jet activity, weaker industrial purchasing, and near-stopped demand for personal digital-device products.

Financial highlights

• Net sales rose 18.6% to $85.377M in 2001; net income increased 6.6% to $6.498M from $6.095M.

• Operating income was $10.471M, up 9.0% YoY; income before taxes increased 11.4% to $9.951M.

• Basic EPS was $0.81 and diluted EPS $0.78, versus $0.78 and $0.74 in 2000, respectively.

• Operating cash flow was $12.690M, versus $2.209M in 2000; year-end cash was $9.176M.

Outlook and guidance

• Management expected 2002 landed and emerging business to offset most or all of the F-16 production program’s scheduled second-half completion.

• Year-end backlog was $29M, with approximately $25M scheduled to ship in 2002; backlog fell from just over $40M in 2000, mainly due to the F-16 program’s conclusion.

• A January 2002 F-16 night-vision cockpit spares contract was valued at over $30M; deliveries enter backlog as scheduled by the U.S. Air Force.

• The short-run digital-to-print initiative was expected to grow at compound rates potentially near 50% annually and become a major Printing-Packaging growth driver.