Astronics (ATRO) Q4 2006 earnings summary

Executive summary

• FY06 revenue rose 48.9% to $110.8M and diluted EPS increased to $0.69 from $0.28, on strong aerospace demand and higher product content per aircraft.

• Results benefited most from commercial transport and business jet growth; management expected 2007 revenue of $135M–$140M.

Financial highlights

• Revenue was $110.767M vs. $74.354M in FY05; net income was $5.736M vs. $2.237M.

• Diluted EPS was $0.69 vs. $0.28; income from continuing operations represented 5.2% of sales vs. 3.0% in FY05.

• FY06 operating cash flow was negative $0.047M vs. positive $5.015M in FY05, as sales-driven working-capital investment absorbed cash.

Outlook and guidance

• FY07 revenue guidance was $135M–$140M; a separate outlook projection cited $140M, assuming continued strength in the global aerospace economy.

• Year-end backlog was $99.5M, with approximately $85M expected to ship during 2007; backlog was $96.1M at FY05 year-end.

• Management expected engineering and development spending to remain comparable to FY06, with spending more aligned to revenue growth.