Astronics Corporation Announces Preliminary Sales for Fourth Quarter 2022 of $155 Million to $160 Million; Completes $205 Million Debt Refinancing
20 January 2023 - 8:15AM
Business Wire
New debt structure provides improved financial
flexibility and extended maturities
Astronics Corporation (Nasdaq: ATRO), a leading provider of
advanced technologies for global aerospace, defense and other
mission critical industries, today announced preliminary revenue
and orders and announced the completion of the refinancing of its
debt.
Preliminary Revenue and Bookings for Fourth Quarter
2022
Astronics Corporation announced today that unaudited preliminary
fourth quarter sales are expected to be in the range of $155
million to $160 million, exceeding the Company’s earlier guidance
of $140 million to $150 million. The midpoint of the preliminary
range represents a sequential increase in sales of 20% over the
third quarter of 2022 and 35% increase over the comparator quarter
of 2021.
Preliminary bookings in the fourth quarter are expected be in
the range of $175 million to $180 million.
Peter J. Gundermann, Chairman, President and CEO, commented, “We
continued to see strong order flow in the fourth quarter, as we
have since the middle of 2021. We expect to report another positive
book-to-bill quarter and another record ending backlog. More
importantly, however, we finally saw the beginning of the sales
ramp required to satisfy high demand as our supply chain continues
to show improvement. We expect the sales ramp to endure as we move
into 2023, consistent with our earlier revenue guidance for the
year of $640 million to $680 million.”
Refinancing Provides Greater Financial Flexibility
Astronics also announced that it has completed a financing
transaction totaling $205 million, which refinanced its previous
revolving credit facility that was scheduled to mature in November
2023. The new financing consists of a $90 million asset-based term
loan and a $115 million asset-based revolving credit facility. The
term loan has a scheduled maturity of January 19, 2027, an interest
rate of SOFR plus 8.75% and is collateralized primarily by real
estate, fixed assets and intellectual property. The revolving
credit facility has a scheduled maturity of January 19, 2026, an
interest rate of SOFR plus 2.25% to 2.75% and is collateralized
primarily by inventory and accounts receivable.
Amortization of the term loan principal will begin in April with
a monthly amortization rate of 0.292% of the outstanding term loan
principal balance for the period April 1, 2023 through June 1,
2023, increasing to 0.542% per month for the period July 1, 2023
through September 1, 2023 then increasing to 0.833% thereafter.
The new capitalization will provide post-closing available
liquidity of approximately $35 million, net of required minimum
liquidity of $20 million through the date of delivery of the
compliance certificate for the quarter ended March 31, 2024, which
will revert to $10 million thereafter. The Company expects to be
cash flow positive for 2023.
The weighted average cash interest rate for the new debt
facility is approximately 10% at closing. Select financial
covenants include restrictions on additional indebtedness and share
repurchases, minimum EBITDA covenant, excess cash flow repayment
provisions, limitation on capital expenditures and a minimum fixed
charge coverage ratio beginning with the first quarter of 2024.
Terms used, but not defined in this news release are as defined
in the Credit Agreements as filed on Form 8-k with the Securities
and Exchange Commission.
About Astronics Corporation Astronics Corporation
(Nasdaq: ATRO) serves the world’s aerospace, defense, and other
mission critical industries with proven, innovative technology
solutions. Astronics works side-by-side with customers, integrating
its array of power, connectivity, lighting, structures, interiors,
and test technologies to solve complex challenges. For over 50
years, Astronics has delivered creative, customer-focused solutions
with exceptional responsiveness. Today, global airframe
manufacturers, airlines, militaries, completion centers and Fortune
500 companies rely on the collaborative spirit and innovation of
Astronics. The Company’s strategy is to increase its value by
developing technologies and capabilities that provide innovative
solutions to its targeted markets.
For more information on Astronics and its solutions, visit
Astronics.com.
Safe Harbor Statement This news release contains
forward-looking statements 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 expressions and include all statements
with regard to preliminary sales, bookings and backlog, the rate of
sales ramping, the supply chain, liquidity, cash generation and
2023 outlook. Because such statements apply to future events, they
are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
statements. Important factors that could cause actual results to
differ materially from what may be stated here include the impact
of a global pandemic and governmental and other actions taken in
response, trend in growth with passenger power and connectivity on
airplanes, the state of the aerospace and defense industries, the
market acceptance of newly developed products, internal production
capabilities, the timing of orders received, the status of customer
certification processes and delivery schedules, the demand for and
market acceptance of new or existing aircraft which contain the
Company’s products, the need for new and advanced test and
simulation equipment, customer preferences and relationships, 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 news
release whether to reflect changed assumptions, the occurrence of
unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230119005898/en/
Company Contact: David C. Burney Executive Vice President
and CFO invest@astronics.com +1.716.805.1599
Investor Contact: Kei Advisors LLC Deborah K. Pawlowski
Investor Relations dpawlowski@keiadvisors.com +1.716.843.3908
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