Astronics Reports Fourth Quarter and Year End 2003 Results.Business Editors EAST AURORA Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. , N.Y.--(BUSINESS WIRE)--Jan. 29, 2004 Astronics Corporation (Nasdaq: ATRO ATRO Actual Time of Return to Operation ), a leader in advanced, high performance lighting and electronics systems for the global aerospace and defense industry, today announced results for the quarter and year ended December 31, 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter 2003 were $8.3 million compared with $8.8 million for the same period last year, a 6% decline. Improved sales of $0.2 million to the business jet and commercial transport markets helped to somewhat offset the $0.5 million decline from the completion of the program for retrofitting the F-16 with night vision lighting systems in early 2003 and slightly lower sales to the military for spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. . On a sequential basis, sales for the fourth quarter were up $0.7 million, or 9%, when compared with the third quarter of 2003 as a result of improved government spares purchases and improved sales to the commercial transport market. By market, in the fourth quarter of 2003 Military sales were $4.2 million compared with $4.3 million in the same period of 2002 excluding the F-16 program. The fourth quarter of 2003 had no sales associated with the F-16 night vision retrofit ret·ro·fit v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in program for the U.S. Air Force, whereas the same period in 2002 had $0.5 million in sales for that program. Sales to the Commercial Transport market were $1.8 million, up 10% compared with the same period in 2002. Sales to the Business Jet market were $2.0 million in the fourth quarter for both 2003 and 2002. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fourth quarter 2003 was $542 thousand, or $.07 on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis. This compares with income from continuing operations of $605 thousand and $.08 per diluted share in the fourth quarter of 2002. Income from continuing operations in the fourth quarter of 2003 benefited from $414 thousand in pre-tax adjustments for bonuses, executive compensation, and profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of that had been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. through the year, but will not be paid. For the full year 2003, net sales were $33.2 million, down from $42.9 million in 2002 which included $10.1 million in sales associated with the F-16 program. Excluding the F-16 program from both periods, net sales in 2003 were $32.5 million, relatively flat when compared with $32.9 million in 2002. Income from continuing operations was $782 thousand in 2003 and on a diluted per share basis was $.10. For 2002, income from continuing operations was $4.0 million and $.49 on a diluted per share basis. The decline in income from continuing operations in 2003 is attributed to the completion of the F-16 program. Results were also affected by approximately $750 thousand in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. net development costs for new products. Net development costs exclude non-recurring engineering Non-recurring engineering (NRE) refers to the one-time cost of researching, designing, and testing a new product. When budgeting for a project, NRE must be considered in order to analyze if a new product will be profitable. expenses which are covered by revenue from customers. Peter Gundermann, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. commented, "We believe that despite the condition of the aircraft production market and the completion of the F-16 program that our strategy to increase the content we provide on aircraft in all markets we serve is proving itself. ." He went on to say, "For 2004, we are planning on moderate revenue growth of 2-5% with upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar should the economy continue to improve and demand for aircraft strengthen. Sales in 2004 will begin to reflect a small part of the wins that we announced last year. We will continue to invest in development of new products and programs as we transition from a supplier of lighting components to an integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. of aircraft lighting systems. " By market, sales in 2003 to the Military excluding the F-16 program were $16.5 million, down from $16.8 million in the prior year. The Commercial Transport market had net sales of $6.5 million, relatively flat with sales of $6.6 million in 2002. The Business Jet market in 2003 realized an increase in sales of 4% to $8.2 million when compared with sales of $7.9 million in 2002. Mr. Gundermann noted," We are excited about the number of business jet and commercial transport projects that we are discussing with customers. In addition our improved bookings and building backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. indicates a strengthening of orders from our customers and, to some degree, the impact of the program wins that we have announced." Bookings, or orders received, in 2003 were $34.7 million, up 5.5% from $32.9 million in 2002. Backlog, or firm purchase orders for production, was up 9% to $18.7 million at the end of the year from $17.2 million at the end of 2002. Current and prior period results reflect Astronics' former subsidiary MOD-PAC CORP. (NASDAQ: MPAC MPAC Muslim Public Affairs Council MPAC Municipal Property Assessment Corporation MPAC Muslim Public Affairs Committee MPAC Missouri Precision Agriculture Center MPAC Member Political Action Conference MPAC Medicare Payment Advisory Commission ) as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . The printing and packaging business segment was spun-off and became a separately traded NASDAQ company on March 14, 2003. Results of MOD-PAC through March 14, 2003 are reflected as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Also included in discontinued operations is the Electroluminescent See electroluminescence and EL display. Lamp Business Group, which as previously announced on December 5, 2002, was deemed a non-strategic line of business. Investors' Conference Call Astronics will host its 2003 Earnings teleconference and webcast today at 11:00 a.m. ET. The teleconference can be accessed at Astronics' website: http://www.astronics.com or by dialing (303) 262-2142 about 5 to 10 minutes prior to the call. An archive of the webcast will also be available at www.astronics.com for approximately 60 days. A recording of the call will be available commencing one hour after the conclusion of the call through Thursday, February 5, 2003. The replay number can be heard by calling (303) 590-3000 and entering pass code 566984#. ABOUT ASTRONICS CORPORATION Astronics Corporation is a manufacturer of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. lighting and electronics for the cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. , cabin and exteriors of military, commercial transport and private business jet aircraft. A major lighting and electronics supplier to the aircraft industry, its strategy is to expand from a components and subsystems supplier to an aircraft lighting systems integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , increasing the value and content it provides to various aircraft platforms. Luminescent lu·mi·nes·cent adj. Capable of, suitable for, or exhibiting luminescence. [Latin l  men, l Systems Inc. is Astronics'
primary operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. which produces its aerospace and defense
products.For more information on Astronics and its products, visit its website at www.Astronics.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expression. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially than those contemplated by the statements. Important factors that could cause actual results to differ materially include the Company's ability to execute its strategy, the impact of the economy, the likelihood that revenue projections can be achieved, and the state of the aerospace industry, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
ASTRONICS CORPORATION
CONSOLIDATED INCOME STATEMENT DATA
------------------------------------
(in thousands, except per share data)
Three Months Ended Year Ended
---------------------------------------------
12/31/2003 12/31/2002 12/31/2003 12/30/2002
---------------------------------------------
Original F-16 NVIS
program sales $- $465 $730 $10,074
All other net sales $8,327 $8,290 $32,452 $32,866
---------------------- ----------------------
Net sales $8,327 $8,755 $33,182 $42,940
Cost of products sold $6,502 $6,666 $26,439 $30,691
Selling, general and
administrative and
interest $1,174 $1,173 $5,694 $5,834
Income from continuing
operations before taxes $651 $916 $1,049 $6,415
Income taxes $109 $311 $267 $2,368
Income from continuing
operations $542 $605 $782 $4,047
Income (loss) from
discontinued operations $19 ($24) $331 $506
Net income $561 $581 $1,113 $4,553
Basic earnings (loss) per
share:
Continuing operations $0.07 $0.08 $0.10 $0.51
Discontinued operations $0.00 ($0.01) $0.04 $0.06
Net Income $0.07 $0.07 $0.14 $0.57
Diluted earnings (loss)
per share:
Continuing operations $0.07 $0.08 $0.10 $0.49
Discontinued operations $0.00 ($0.01) $0.04 $0.06
Net Income $0.07 $0.07 $0.14 $0.55
Weighted average diluted
shares outstanding 7,788 8,011 7,815 8,208
ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
------------------------------------------------
(in thousands)
12/31/2003 12/31/2002
----------------------
ASSETS:
------------------------------------------------
Cash $11,808 $7,722
Accounts receivable 4,383 4,745
Inventories 5,707 6,139
Prepaid expenses 1,378 434
Due from MOD-PAC CORP. - 4,751
Property, plant and equipment, net 15,119 15,663
Net long-term assets of discontinued operations. - 20,742
Other assets 7,079 7,153
----------------------
$45,474 $67,349
======================
LIABILITIES AND SHAREHOLDERS' EQUITY:
================================================
Accounts payable and accrued expenses $4,354 $5,007
Net current liabilities of discontinued
operations. 155 1,034
Long-term debt 12,482 13,110
Net long-term liabilities of discontinued
operations 397 -
Other liabilities 5,146 5,259
Shareholders' equity 22,940 42,939
----------------------
$45,474 $67,349
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