Astronics (ATRO) Q4 2021 earnings summary

Executive summary

• FY21 revenue was $444.9M, down 11.5% YoY; orders were 30% above shipments, with second-half orders 45% above shipments and a record $415.7M year-end backlog.

• Demand improved as passenger traffic accelerated late in the year, but supply-chain and labor constraints limited deliveries and weighed on results.

Financial highlights

• Revenue was $444.9M vs. $502.6M in 2020; gross profit was $65.4M vs. $96.8M, and gross margin was 14.7% vs. 19.3%.

• Operating loss was $28.7M vs. $100.7M; net loss was $25.6M vs. $115.8M, and diluted loss per share was $0.82 vs. $3.76.

• FY21 results included an $8.7M AMJP grant benefit, $5.0M facility-sale gain, $10.7M semiconductor-business earnout gain, and $8.4M Lufthansa-related accrual.

• Operating cash flow was negative $5.5M vs. positive $37.3M in 2020; cash and cash equivalents were $29.8M at year-end.

Outlook and guidance

• FY22 revenue guidance was $550M–$600M, with growth weighted to H2; initial expectations called for modest Q1 volume growth over Q4 and stronger growth later in the year.

• Management expected solid H2 profitability, with ongoing supply-chain and tight-labor-market pressures as risks to shipments and costs.

• If H2 2021 demand continued, FY22 bookings could exceed $650M; $15M–$17M of year-end backlog was estimated to have been delayed by supply constraints.

• FY22 capital spending was forecast at $15M–$20M; cash taxes were expected at $0.5M–$1.0M, and cash generation was expected to support debt reduction.