Astronics Corp. (ATRO, Financial) filed Quarterly Report for the period ended 2009-07-04.
Astronics Corporation is a manufacturer of specialized lighting and electronics for the cockpit 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 increasing the value and content it provides to various aircraft platforms. Luminescent Systems Inc. is Astronics\' primary operating subsidiary which produces its aerospace and defense products. Astronics Corp. has a market cap of $112.3 million; its shares were traded at around $10.43 with a P/E ratio of 10.7 and P/S ratio of 0.7.
Consolidated year to date sales for 2009 increased 9.1% to $97.0 million compared to $89.0 million for the same period last year. The increase was due primarily to the January 30, 2009 acquisition of DME. DME had year to date sales of $24.3 million in 2009. The addition of the DME sales in 2009 was offset somewhat by a decrease in organic sales of $16.3 million. The lower organic sales were a result of reduced demand for our products caused by reduced business jet build rates and reduced spending by global airlines for cabin upgrades that include our cabin electronics products somewhat offset by increased sales to the military. Additionally, year to date 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $7.0 million. Sales to Eclipse in 2009 were $0.2 million.
Consolidated net interest expense increased by $0.3 million from $0.2 million to $0.5 million in the second quarter, and consolidated year to date net interest expense increased by $0.5 million from $0.4 million to $0.9 million both due primarily to increased debt levels compared with 2008 relating to the DME acquisition.
Net income for the second quarter of 2009 was $2.0 million or $0.18 per diluted share, a decrease of $3.1 million from $5.1 million, or $0.48 per diluted share in the second quarter of 2008. Year to date net income was $3.4 million or $0.31 per diluted share, a decrease of $4.4 million from $7.8 million or $0.73 per diluted share. The earnings per share decrease is due to a combination of the decrease in net income and the issuance of 500,000 shares of treasury stock related to the acquisition of DME on January 30, 2009.
During the second quarter of 2009, aerospace segment sales were $38.2 million, a decrease of $9.7 million, or 20.3%, from $47.9 million in the 2008 quarter. Sales to the military market increased $0.9 million, or 10.6%, and sales to the FAA/airport market, which is part of the acquired DME business, were $1.6 million in the second quarter of 2009. Sales to the commercial transport market declined $7.4 million, or 25.7%, and business jet market sales were off $4.8 million, or 47.1%, compared with the 2008 quarter. Sales for our business jet and commercial transport markets have been negatively impacted by reduced business jet production rates and reduced spending by commercial airlines for cabin upgrades that utilize Astronics cabin electronics products. Additionally, the second quarter of 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $3.5 million. There were no sales to Eclipse Aviation in the second quarter of 2009.
For the year to date 2009, aerospace segment sales were $80.0 million, a decrease of $9.0 million, or 10.1%, from $89.0 million. Sales to the military market increased $3.7 million, or 22.0%, and sales to the FAA/airport market, which is part of the acquired DME business, were $3.4 million. Sales to the commercial transport market declined $8.3 million, or 15.7%, and business jet market sales were off $7.7 million, or 39.3%, compared with 2008. Sales for our business jet and commercial transport markets have been negatively impacted by reduced business jet production rates and reduced spending by commercial airlines for cabin upgrades that utilize Astronics cabin electronics products. Additionally, year to date 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $7.0 million. Sales to Eclipse in 2009 were $0.2 million.
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Astronics Corporation is a manufacturer of specialized lighting and electronics for the cockpit 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 increasing the value and content it provides to various aircraft platforms. Luminescent Systems Inc. is Astronics\' primary operating subsidiary which produces its aerospace and defense products. Astronics Corp. has a market cap of $112.3 million; its shares were traded at around $10.43 with a P/E ratio of 10.7 and P/S ratio of 0.7.
Highlight of Business Operations:
On January 30, 2009, the Company acquired 100% of the common stock of DME Corporation (DME). The purchase price was approximately $50 million, comprised of approximately $40.7 million in cash, 500,000 shares of the Companys common stock held as treasury shares, valued at $3.6 million, or $7.17 per share, a $5.0 million subordinated note payable to the former shareholders plus an additional contingent $2.0 million subordinated note payable, subject to meeting revenue performance criteria in 2009. The $2.0 million note will not be paid should DME fail to attain the agreed upon 2009 calendar year revenue performance. At July 4, 2009, the Company believes the probability of achieving this revenue target is low, as such the Company has valued the note at $0.1 million, its estimated fair value. DME is a designer and manufacturer of military test training and simulation equipment and aviation safety products. The aviation safety products are included in the Aerospace segment. The test training and simulation equipment products comprise the Test Systems segment.Consolidated year to date sales for 2009 increased 9.1% to $97.0 million compared to $89.0 million for the same period last year. The increase was due primarily to the January 30, 2009 acquisition of DME. DME had year to date sales of $24.3 million in 2009. The addition of the DME sales in 2009 was offset somewhat by a decrease in organic sales of $16.3 million. The lower organic sales were a result of reduced demand for our products caused by reduced business jet build rates and reduced spending by global airlines for cabin upgrades that include our cabin electronics products somewhat offset by increased sales to the military. Additionally, year to date 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $7.0 million. Sales to Eclipse in 2009 were $0.2 million.
Consolidated net interest expense increased by $0.3 million from $0.2 million to $0.5 million in the second quarter, and consolidated year to date net interest expense increased by $0.5 million from $0.4 million to $0.9 million both due primarily to increased debt levels compared with 2008 relating to the DME acquisition.
Net income for the second quarter of 2009 was $2.0 million or $0.18 per diluted share, a decrease of $3.1 million from $5.1 million, or $0.48 per diluted share in the second quarter of 2008. Year to date net income was $3.4 million or $0.31 per diluted share, a decrease of $4.4 million from $7.8 million or $0.73 per diluted share. The earnings per share decrease is due to a combination of the decrease in net income and the issuance of 500,000 shares of treasury stock related to the acquisition of DME on January 30, 2009.
During the second quarter of 2009, aerospace segment sales were $38.2 million, a decrease of $9.7 million, or 20.3%, from $47.9 million in the 2008 quarter. Sales to the military market increased $0.9 million, or 10.6%, and sales to the FAA/airport market, which is part of the acquired DME business, were $1.6 million in the second quarter of 2009. Sales to the commercial transport market declined $7.4 million, or 25.7%, and business jet market sales were off $4.8 million, or 47.1%, compared with the 2008 quarter. Sales for our business jet and commercial transport markets have been negatively impacted by reduced business jet production rates and reduced spending by commercial airlines for cabin upgrades that utilize Astronics cabin electronics products. Additionally, the second quarter of 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $3.5 million. There were no sales to Eclipse Aviation in the second quarter of 2009.
For the year to date 2009, aerospace segment sales were $80.0 million, a decrease of $9.0 million, or 10.1%, from $89.0 million. Sales to the military market increased $3.7 million, or 22.0%, and sales to the FAA/airport market, which is part of the acquired DME business, were $3.4 million. Sales to the commercial transport market declined $8.3 million, or 15.7%, and business jet market sales were off $7.7 million, or 39.3%, compared with 2008. Sales for our business jet and commercial transport markets have been negatively impacted by reduced business jet production rates and reduced spending by commercial airlines for cabin upgrades that utilize Astronics cabin electronics products. Additionally, year to date 2008 included sales to the now bankrupt Eclipse Aviation Corporation totaling $7.0 million. Sales to Eclipse in 2009 were $0.2 million.
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