Astronics Corporation · NASDAQ:ATRO
Astronics — Shareholder Meeting (May 2012)
28 slides from Astronics's shareholder meeting presentation, May 2, 2012
Slide 1: Annual Meeting of Shareholders
AlsTRONICS CORPORATION ANNUAL MEETING OF SHAREHOLDERS May 2, 20412 NASDAQ: ATRO www.astronics.com
Slide 2: © 2012 by Astronics Corporation
© 2012 by Astronics Corporation
Slide 3: Annual Meeting of Shareholders
AlsTRONICS CORPORATION ANNUAL MEETING OF SHAREHOLDERS May 2, 20412 NASDAQ: ATRO www.astronics.com
Slide 4: Safe Harbor Statement
SAFE HARBOR STATEMENT These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause th
Slide 5: 2011 Highlights
2011 H IGHLIGHTS Record sales of $228.2 million, up 16.6% Record net income of $21.6 million, up 44.4% Record bookings of $234.0 million, up 11.3% Strong backlog of $106.3 million at year-end Strengthened competitive position Strategic acquisition © 2012 by Astronics Corporation 5
Slide 6: Record Sales in 2011
RECORD SALES IN 2011 ( In millions) $250-$265 $228.2 $10-$12 $195.8 $14.3 $191.2 $173.7 $16.2 $158.2 $35.6 $240- $213.9 $253 $179.6 $155.6 2007 2008 2009 2010 2011 2012E* Aerospace Test Systems * Guidance provided as of May 1, 2012 © 2012 by Astronics Corporation 6
Slide 7: Margins Expanding
MARGINS EXPANDING ($ in millions) Gross Profit Operating Profit (Loss) & Margin & Margin $60.5 $47.6 $30.8 $40.9 $24.5 $24.3 $37.3 $30.5 $13.1 25.8% 17.5% 19.5% 24.3% 26.5% 15.5% 7.5% 12.5% 13.5% $(6.2) (3.2)% 2007 2008 2009 2010 2011 2007 2008 2009* 2010 2011* * reflects a write down of $19.4 milli
Slide 8: Record Net Income and EPS in 2011
RECORD NET INCOME AND EPS IN 2011 ($ in millions) Net Income $21.6 $15.4 $14.9 $8.4 ($3.8) EPS $1.31 $0.72 ($0.32) $1.20 $1.67 2007 2008 2009* 2010 2011* * reflects a write down of $19.4 million and $2.5 million for test systems goodwill and intangible assets in 2009 and 2011 respectively © 2012 by
Slide 9: Strong Balance Sheet
STRONG BALANCE SHEET ($ in millions) Funded Debt & Equity Cash & Cash Equivalents $33.3 $38.6 $44.8 $102.9 $22.7 $60.1 $77.2 $14.9 $10.9 2009 2010 2011 2009 2010 2011 Funded Debt Shareholders' Equity Cash from Capital Expenditures Operations $14.3 $31.1 $27.9 $16.5 $2.5 $3.6 2009 2010 2011 2009 2010
Slide 10: Solid Backlog: Growing Bookings
SOLID BACKLOG: GROWING BOOKINGS Backlog Trend Annual Bookings (In millions) (In millions) $234.0 $106.3 $99.8 $210.2 $14.5 $92.4 $8.4 $89.0 $85.4 $8.2 $14.7 $170.4 $9.8 $151.1 $145.7 $13.6 $75.6 $91.6 $97.9 $132.1 $195.5 $219.5 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Aerospace Test Systems
Slide 11: Q1 2012 Snapshot
Q1 2012 SNAPSHOT ($ in millions) Revenue Gross Profit $18.1 $14.5 $65.1 $55.1 26.3% 27.8% Q1 2011 Q1 2012 Q1 2011 Q1 2012 Operating Profit Net Income $9.3 $6.1 $8.2 $5.2 14.8% 14.2% 9.4% 9.4% Q1 2011 Q1 2012 Q1 2011 Q1 2012 © 2012 by Astronics Corporation 11
Slide 12: 2012 Revenue Guidance
2012 REVENUE GUIDANCE ( $ In millions) May 1, 2012 Feb. 6, 2012 Sales $250 - $265 $235 - $250 Aerospace Segment $240 - $253 $225 - $238 Test Systems Segment $10 - $12 $10 - $12 E&D Expenditures $36 - $40 $36 - $40 © 2012 by Astronics Corporation 12
Slide 13: Develop and Capitalize on Technical Expertise
DEVELOP AND CAPITALIZE ON TECHNICAL EXPERTISE ($ in millions) Engineering & Development Expense Identify market opportunities $36-$40 $36.1 $27.0 $28.3 Develop/acquire technical capability 2009 2010 2011 2012E* Earn higher returns by providing innovative solutions0 14.1% 14.5% 15.8% 14.7% Percent of
Slide 14: Expanding Ship Set Content
EXPANDING SHIP SET CONTENT Higher future ship set content Expanded ship set content: $50,000 - $300,000 Traditional ship set content: $2,000 – $10,000 © 2012 by Astronics Corporation 14
Slide 15: Sales by Market & Product
SALES BY MARKET & PRODUCT Markets Products Test Test Systems, 6% Systems, 6% Airfield FAA/Airport, Lighting, 4% 4% Military Aircraft, Aircraft 16% Lighting, 31% Cabin Commerical Electronics, Transport, Business 50% 63% Jet, 11% Airframe Power, 9% 2011 Sales: $228.2 million © 2012 by Astronics Corpor
Slide 16: Commercial Transport Delivery Forecast
COMMERCIAL TRANSPORT DELIVERY FORECAST Aircraft Units Source: Forecast International (2011) © 2012 by Astronics Corporation 16
Slide 17: Cabin Electronics
CABIN ELECTRONICS Growth Drivers • Hybrid systems: Passenger power + IFE, actuation, and others • Expanding universe of PEDs • New services : Wi-Fi and voice • Expansion across all fare classes • Expansion from wide to narrow bodies 17
Slide 18: Cabin Electronics: Boeing IFE/Passenger Power
CABIN ELECTRONICS BOEING 787 IFE/PASSENGER POWER Seat Power Module for Thales & Panasonic In-Use Light Outlet Unit ~ 75 units per Aircraft: Approx. $200k per shipset Providing ~ 75 In-Use Lights and 300 Outlet Units © 2012 by Astronics Corporation 18
Slide 19: Outlook for Business Jet Deliveries
OUTLOOK FOR BUSINESS JET DELIVERIES Aircraft Units 10,000 Aircraft from 2011 - 2021 Source: Honeywell Business Aviation Outlook (Q3 2011) © 2012 by Astronics Corporation 19
Slide 20: Airframe Power
AIRFRAME POWER LEAR 85 ELECTRONIC POWER DISTRIBUTION SYSTEM System advantages: • Increased reliability • Reduced weight • Automation • Flexibility • Lower life- cycle cost Anticipated entry into service in 2013 © 2012 by Astronics Corporation 20
Slide 21: Lighting Systems on V-22
LIGHTING SYSTEMS ON V-22 Exterior lights Escape path system Fire suppression controller Avionics panels & keyboards Approximately $70k to $75k per shipset © 2012 by Astronics Corporation 21
Slide 22: Ballard Technology Acquisition
BALLARD TECHNOLOGY ACQUISITION A leader in engineering design, development and production of avionics data bus products Company targets avionics data bus market Primarily used in aircraft upgrades Military and Commercial applications Both embedded applications as well as test and simulation
Slide 23: Share Performance Since 1/1/2011
SHARE PERFORMANCE SINCE 1/1/2011 70.5% return in 2011 © 2012 by Astronics Corporation 23
Slide 24: Annual Meeting of Shareholders
AlsTRONICS CORPORATION ANNUAL MEETING OF SHAREHOLDERS May 2, 20412 NASDAQ: ATRO www.astronics.com
Slide 25: Current Manufacturing Locations
CURRENT MANUFACTURING LOCATIONS © 2012 by Astronics Corporation 25
Slide 26: Test, Training & Simulation
TEST, TRAINING & SIMULATION Synthetic instrument-based, software-defined automated test solutions for domestic and foreign military: ► Front line to depot repair level ► Electro-optical devices ► Military communications ► Factory test solutions ► Unmanned ground or air vehicles ► Portable maintenanc
Slide 27: Airport Lighting and Aircraft Safety
AIRPORT LIGHTING AND AIRCRAFT SAFETY • Airport lighting systems provider to FAA and public/private airports • Leading supplier of emergency flashlights, raft and slide lighting, locator transmitters, and survival kits for airlines worldwide © 2012 by Astronics Corporation 27
Slide 28: Aerospace Segment: Well Positioned
AEROSPACE SEGMENT: WELL POSITIONED Wide range of high profile next generation aircraft platforms Piaggio Avanti: Embraer Phenom 100/300: Lear 85: Cockpit lighting Exterior Electrical Power Distribution UH-60 Blackhawk: Airbus A380: F-35 JSF: Exterior Cockpit lighting Cabin lighting and electronics E