Astronics Corporation Reports 2021 Second Quarter Financial Results

Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense and other mission critical industries, today reported financial results for the three and six months ended July 3, 2021.

Highlights:

• Sales for the quarter were $111.2 million
• Net loss was $8.1 million
• Adjusted EBITDA* was $0.4 million
• Bookings for the quarter continued sequential improvement to $126.3 million; Achieved book-to-bill ratio of 1.14
• Aerospace segment book-to-bill of 1.32 for the quarter
• Backlog increased 5% sequentially to $312.7 million

Test Systems segment

Test Systems segment sales were $21.9 million, up $0.8 million compared with the prior-year period.

Test Systems operating loss was $0.9 million, or 4.3% of sales, compared with operating profit of $2.6 million, or 12.4% of sales, in the second quarter of 2020. Operating profit in the second quarter of 2021 was negatively affected by $1.0 million in legal fees related to infringement claims and contractual disputes. Operating results in 2020 benefited from $1.2 million in semiconductor warranty revenue.

Bookings for the Test Systems segment in the quarter were $8.2 million, for a book-to-bill ratio of 0.37:1 for the quarter. Backlog was $73.6 million at the end of the second quarter of 2021.

Mr. Gundermann noted, “Our Test business experienced low bookings of $8.2 million in the second quarter, which was about one-third of what we expected. We believe orders were delayed mostly because of the pandemic, and not due to competitive pressures. This challenges our near-term prospects for the business, but we believe the orders will come in as the pandemic recedes.”

Test Systems Year-to-date 2021 Results (compared with the prior-year period, unless noted otherwise)

Test Systems segment sales were $46.4 million, up $8.7 million compared with the prior-year period.

Test Systems operating profit was $0.2 million, or 0.5% of sales, compared with $3.3 million, or 8.9% of sales, in the second quarter of 2020. Operating profit in the first half of 2021 was negatively affected by $1.9 million in legal fees for the same reasons as the quarter. Operating results in 2020 benefited from $2.8 million in semiconductor warranty revenue.