Q2 2024 Astronics Corp Earnings Call Transcript
Key Points
- Astronics Corp (ATRO) reported strong sales of $198 million for the second quarter, exceeding guidance and marking a return to pre-pandemic levels.
- The Aerospace segment, which accounts for nearly 90% of sales, showed solid growth with an 11.7% year-over-year increase in revenue.
- The company achieved a record backlog of $633 million, with $402 million scheduled to ship in the second half of 2024.
- Astronics Corp (ATRO) successfully refinanced its debt, resulting in lower interest rates, reduced amortization, and improved liquidity.
- The company was awarded a significant $215 million radio test contract by the US Army, with initial revenue already recognized.
- The Test segment experienced a 'reset quarter' with restructuring costs and a $3.5 million estimate to complete adjustment, impacting sales and margins.
- Despite improvements, the Test segment still reported an operating loss of $5.3 million for the quarter.
- The company faces challenges with workforce efficiency, as 43% of employees have been with the company for less than three years.
- Astronics Corp (ATRO) anticipates a $7.5 million impact on the third quarter income statement due to refinancing-related costs.
- There is uncertainty regarding the timeline for full-rate production of the radio test contract, potentially delaying revenue ramp-up.
Good day, everyone, and welcome to the Astronics Corporation second quarter 2024 financial results conference call. All participants will be in a listen-only mode. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the floor over to Debra Pawlowski. Ma'am, please go ahead.
Thanks, Jamie, and good afternoon, everyone. We certainly appreciate your time today and your interest in Astronics.
Joining me on the call are Pete Gundermann, our Chairman, President and CEO; and Dave Burney, our Chief Financial Officer. You should have a copy of our second quarter 2024 financial results, which crossed the wires after the market closed today. If you do not have the release, you can find it on our website at astronics.com.
As you are aware, we may make some forward-looking statements during the formal discussion and the Q&A session of this conference call. These statements apply to future events that are subject to risks and
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