Astronics (ATRO) Q4 2005 earnings summary

Executive summary

• FY05 sales rose 117% to $75.4M, driven by the AES acquisition and 30%+ organic growth; diluted EPS from continuing operations was $0.33 versus a $0.09 loss in FY04.

• Higher volume and improved margins lifted EBIT, excluding other income, to $5.3M from a $0.9M loss; AES contributed $3.0M of operating profit.

• FY05 ended with $95.1M backlog, including approximately $57M expected to ship in FY06, supporting a broader platform across lighting, cabin electronics and airframe power.

Financial highlights

• Sales were $75.352M versus $34.696M in FY04; AES added $28.6M and organic sales increased $12.1M.

• Continuing-operations income was $2.653M versus a $0.734M loss; diluted continuing-operations EPS was $0.33 versus $(0.09).

• Continuing-operations pretax income reached $4.797M from a $1.182M loss; net cash from operating activities was $5.05M versus $0.143M.

• Total assets were $65.857M, long-term debt $10.304M and shareholders’ equity $25.834M at year-end; capital expenditures were $2.498M.

Outlook and guidance

• FY06 revenue guidance was $85M–$90M, with upside if aircraft programs enter production early and downside if certification or production is delayed.

• Of $95.1M year-end backlog, approximately $57M was expected to be delivered during FY06; capital equipment spending was projected to exceed $4M in FY06.

• Growth prospects depend on aircraft build rates, certification of the Cessna Mustang and Eclipse 500, defense funding and production awards; continued engineering investment was expected.