Business
Astronics Corporation Reports 2020 First Quarter Financial Results
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
About this update from Astronics Corporation
[{"type":"text","content":"\n\nSales for the quarter were $157.6 million with bookings of $167.4 million\n\n\nNet loss was ($67.0) million, after impairment charges of $74.4 million \n\n\nAdjusted EBITDA* was $16.2 million or 10.3% of sales\n\n\n\n\nAmended credit facility suspends leverage covenant and accommodates for challenging environment\n\n\nRestructuring to allow cash positive performance if sales decline as much as 35% from 2019\n\n\n\n*Adjusted EBITDA is a Non-GAAP Performance Measure. Please see the attached table for a reconciliation of adjusted EBITDA to GAAP net income.\n\n EAST AURORA, N.Y.--(BUSINESS WIRE)--\nAstronics 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 months ended March 28, 2020. Financial results reflect the divestiture of the Test Systems’ semiconductor business on February 13, 2019, and the acquisitions of Freedom Communications Technologies (“Freedom”), acquired in July 2019, and the primary operating subsidiaries of Diagnosys Test Systems Limited (“Diagnosys”), acquired in October 2019 (collectively, the “Acquired Businesses”).\n\n\nSummary of COVID-19’s Impact on Astronics and Our Operational Adjustments\n\n\nLike many companies in the aerospace industry, Astronics has been significantly affected by the COVID-19 pandemic. In the space of a few weeks, the Company saw significant changes in expected demand as airline traffic bottomed and manufacturers announced reduced production rates.\n\n\nAstronics rapidly adjusted to the changed environment by prioritizing the health and safety of its employees and implementing a new set of work rules to provide for sanitation, hygiene and physical distancing. Concurrently, Astronics aggressively adjusted its cost structure to match expected demand and conserve cash. These actions included a 30% reduction in employee count to about 2,000, a freeze on wages and the elimination of cash bonus plans, a more than 50% reduction of 2020 capital expenditures, and other measures such as elimination of temporary labor and consultants wherever possible, and restrictions on marketing, trade shows, travel and discretionary spending for the remainder of the year. These actions will result in significant savings of...