NASDAQ$ATRO

Astronics Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of 2020, which were impacted by COVID-19 and the grounding of the 737 MAX.

Astronics Corporation reported a challenging first quarter in 2020, with sales of $157.6 million and a net loss of $67.0 million, which included impairment charges of $74.4 million due to the impact of COVID-19 on the aerospace segment. The company has taken significant actions to reduce costs and maintain cash flow, expecting to be cash positive even with a potential 30% to 35% decline in sales from 2019.

  • Sales for the quarter were $157.6 million with bookings of $167.4 million.
  • Net loss was ($67.0) million, after impairment charges of $74.4 million.
  • Adjusted EBITDA was $16.2 million or 10.3% of sales.
  • Amended credit facility suspends leverage covenant and accommodates for challenging environment.

Headline financials

Total Revenue

$158M

Previous: $208M-24.3%
EPS (adj)

$0.06

Previous: $0.48-87.5%
Adjusted EBITDA

$16.2M

No prior period
Adjusted EBITDA Margin

10.3%

No prior period
Book-to-Bill Ratio

1.07

No prior period
Free Cash Flow

-$67M

Previous: $78.1M-185.7%
Net Income

-$67M

Previous: $78.1M-185.7%
Operating Income

-$67.6M

Previous: $22.9M-395.2%
Gross Profit

$35.7M

Previous: $52.1M-31.4%
Cash & Equivalents

$188M

Previous: $16M+1079.8%
Total Assets

$850M

Previous: $781M+8.9%
Stock-Based Comp

$1.7M

Previous: $1.19M+42.7%

Revenue & EPS history

Astronics · Revenue · Quarterly

$158M

Q1 2020-24.3%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Astronics · $158M total across 2 segments · Q1 2020

  • Aerospace
    $141M
  • Test Systems
    $16.5M

Forward guidance

Astronics anticipates a potential revenue decline of 30% to 35% from 2019, while aiming to remain cash positive with adjusted EBITDA in the range of 5% to 9%. Capital expenditures for 2020 are expected to be approximately $8 million.

Tailwinds

  • Management believes it has structured the Company to be cash positive at this level.
  • Adjusted EBITDA in the range of 5% to 9% is expected.
  • Capital expenditures for 2020 are expected to be approximately $8 million.
  • The company believes that its revised lending agreement, along with the actions it has taken, positions it well to operate through the COVID-19 pandemic.
  • The defense and government business appears strong.

Headwinds

  • Revenue could drop 30% to 35% from 2019.
  • Aircraft build rates are expected to drop.
  • The airline aftermarket is expected to weaken considerably.
  • The commercial transport market is expected to be significantly impacted by the COVID-19 pandemic.
  • Impairment charges were recognized in the current quarter due to reduced expectations of future operating results due to the COVID-19 pandemic, which has significantly impacted the global economy, and particularly the aerospace industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.8%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+3.6%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+24.8%

Q4 2024

Best reaction

-23.5%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+2.9%
Q4 2025-0.7%+2.5%-18.4%
Q3 2025-1.3%-0.3%+6.6%
Q1 2025+16.3%+24.3%+42.4%
Q4 2024+24.8%+20.4%+11.8%
Q3 2024-2.4%-6.6%-11.5%
Q2 2024-12.5%-20.1%-2.6%
Q1 2024+7.9%+9.7%+20.7%
Q4 2023-1.0%-2.4%-1.7%
Q3 2023-11.4%-8.5%-6.3%
Q2 2023-19.2%-14.0%-16.4%
Q1 2023+7.2%+5.3%+18.4%
Q4 2022-3.2%-4.8%-12.1%
Q3 2022-8.9%-2.6%+16.5%
Q2 2022-0.2%+3.6%-23.3%
Q1 2022+3.3%+5.7%+9.6%
Q4 2021-7.0%-9.1%-8.1%
Q3 2021-2.1%-2.8%-23.5%
Q2 2021-14.8%-12.2%-17.5%
Q1 2021-11.2%-9.4%+3.8%
Q4 2020+0.3%-9.8%-1.5%
Q3 2020-3.0%-2.3%+77.7%
Q2 2020+1.2%+11.6%+12.0%
Q1 2020+4.4%+9.1%+99.9%
Q4 2019-13.4%-11.0%-58.8%
Q3 2019+0.9%-0.0%-5.8%
Q2 2019-23.5%-22.6%-22.7%
Q1 2019+20.5%+19.5%+29.8%
Q4 2018+1.6%+3.9%-12.0%
Q3 2018-3.0%-0.6%+6.6%
Q2 2018+9.7%+10.2%+10.0%
Q1 2018-10.0%-5.9%-0.1%
Q4 2017-5.4%-1.8%-10.5%
Q3 2017+5.5%+7.4%+23.2%
Q2 2017-12.3%-9.9%-9.1%
Q1 2017-2.0%-1.4%-1.5%
Q4 2016+1.2%-0.2%-10.5%
Q3 2016-11.9%-7.2%+4.9%
Q2 2016+5.1%+10.0%+18.0%
Q1 2016-7.3%
Q4 2015-9.9%
Q3 2015-6.0%
Q2 2015-11.7%
Q1 2015-4.4%
Q4 2014+16.5%
Q3 2014+6.4%
Q2 2014+12.7%
Q1 2014-1.8%
Q4 2013+9.6%
Q3 2013-0.9%
Q2 2013-5.6%
Q1 2013+14.6%
Q4 2009-0.1%
Q4 2011-0.1%
Q4 2012+6.5%
Q3 2012-4.0%
Q1 2011+1.0%
Q2 2012+1.1%
Q1 2012-1.9%
Q3 2011-2.6%
Q3 2010-2.6%
Q4 2010+0.1%
Q2 2010+0.1%
Q2 2011+0.1%
Q1 2010+2.8%

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