Astronics Corporation · NASDAQ:ATRO
Astronics — Shareholder Meeting (May 2011)
23 slides from Astronics's shareholder meeting presentation, May 5, 2011
Slide 1: 1
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Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT These slides contain (and the accompanying oral discussion will contain) t i ) “forward-looking “f d l ki statements” t t t ” within ithi the th meaning i off the th Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties
Slide 3: 2010 Highlights
2010 HIGHLIGHTS Record sales of $195.7 million Net income of $14.9 million (2nd highest) Record orders of $210.2 million Streamlined cost structure S Strengthened competitive position © 2011 by Astronics Corporation 3
Slide 4: Record Sales & EPS in 2010
RECORD SALES & EPS IN 2010 $210-$225 $195.8 $191 2 $191.2 $20 $23 $20-$23 $173.7 $16.2 $158.2 $35.6 $110.8 $190 $190- $179.6 $202 $155.6 2006 2007 2008 2009 2010 2011E* EPS $0.69 $1.44 $0.79 $(0.35) $1.32 *Guidance provided as of May 4, 2011 Aerospace Test Systems © 2011 by Astronics Corporation 4
Slide 5: Margins Expanding
MARGINS EXPANDING Gross Profit Operating Profit & Margin & Margin (In millions) (In millions) $26,424 $50,527 $47,567 $24,462 $24,343 $40,870 $37,273 $13,054 $ , $30 473 $30,473 $9,666 $23,248 8.7% 15.5% 7.5% 12.4% 13.0% 21.0% 25.8% 17.5% 19.5% 24.3% 24.8% (3.3)% -$6,222 2006 2007 2008 2009 2010 Q1
Slide 6: Strong Balance Sheet
STRONG BALANCE SHEET Funded Debt & Equity Debt 12/31/10 (In millions) $38.6 $44.8 Current $5.3 $22.9 $14.4 Long-term 33.3 $18.4 $77.2 $58.3 $60.1 Total $38.6 $49.2 $31.3 $35 Million Revolver – 2006 2007 2008 2009 2010 LIBOR + 275 bps - 450 bps Shareholders' Equity Funded Debt Cash & Cash Equivalents
Slide 7: Solid Backlog: Growing Bookings
SOLID BACKLOG: GROWING BOOKINGS Backlog Trend Annual Bookings (In millions) (In millions) $99.8 $99.1 $99.5 $210.3 $210.1 $92.4 $85.4 $8.2 $9.0 $89.0 $14.6 $16.7 $170.4 $9.8 $151.1 $145.7 $ $114.2 $13.6 $91.6 $90.1 $195.5$154.7 $193.6 $75.6 $132.1 2006 2007 2008 2009 2010 3-Apr-11 2006 2007 2008 200
Slide 8: Q1 2011 Snapshot
Q1 2011 SNAPSHOT Revenue Gross Profit (In millions) (In millions) $55,128 $14,506 $11,546 $46,936 24.6% 26.3% Q1 2010 Q1 2011 Q1 2010 Q1 2011 Operating Profit Net Income (In millions) (In millions) $8,161 $5,209 $6,118 , $3,400 13.0% 14.8% 9.4% 7.2% Q1 2010 © 2011 by Astronics Corporation Q1 2011 Q1
Slide 9: 2011 Revenue Guidance
2011 REVENUE GUIDANCE ($ in millions) February 8 May 4 Guidance* Guidance** Sales $205 - $215 $210 - $225 A Aerospace S Segmentt $185 - $192 $190 - $202 Test Systems Segment $20 - $23 $20 - $23 E&D Expenditures $28 $30 - $32 * Guidance provided as of February 8, 2011 ** Guidance provided as of May 4
Slide 10: Annual Sales by Market & Product
ANNUAL SALES BY MARKET & PRODUCT Markets Products Test Test Systems, 8% Systems, Airfield FAA/Airport, 8% Lighting, 6% 6% Cabin Commerical Military Electronics, Transport, Aircraft, 17% 45% 57% Aircraft Lighting, 33% Business Jet, 12% Airframe Power, 8% Q1 2011 TTM Sales Sales:: $203.9 million © 201
Slide 11: Commercial Transport Delivery Forecast
COMMERCIAL TRANSPORT DELIVERY FORECAST 1400 1200 1000 Airrcraft Units 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Light/Medium Heavy Source: Forecast International (2011) © 2011 by Astronics Corporation 11
Slide 12: Cabin Electronics
CABIN ELECTRONICS BOEING 787 IFE/PASSENGER POWER Increased proliferation of personal electronic devices In-Use Light Increased service offering g (WiFi, ( , etc)) Outlet Unit Penetration first class to economy Penetration from wide body to narrow body Integration with other aircraft systems (IFE, se
Slide 13: Outlook for Business Jet Deliveries
OUTLOOK FOR BUSINESS JET DELIVERIES Source: Honeywell Business Aviation Outlook (Q3 2010) © 2011 by Astronics Corporation 13
Slide 14: Airframe Power
AIRFRAME POWER LEAR 85 ELECTRONIC POWER DISTRIBUTION SYSTEM Right Battery Electronic Right & Left Bus Contactor Circuit Breaker Units Power Distribution Units System Advantages: Right System (RBBC) (ECBUs 2 & 4) (RPDU & LPDU) Control Interface External Power • Increased reliability Unit (SCIU) Conta
Slide 15: Lighting Systems on V-22
LIGHTING SYSTEMS ON V-22 Prop Rotor Lights Exterior E t i lights li ht Escape path system Fire suppression controller Avionics panels & keyboards Approximately A i t l $70k tto $75k per shipset © 2011 by Astronics Corporation 15
Slide 16: Aerospace Segment: Well Positioned
AEROSPACE SEGMENT: WELL POSITIONED Wide range of high profile next generation aircraft platforms Piaggio Avanti: Embraer Phenom 100/300: Lear 85: Cockpit lighting Exterior Electrical Power Distribution Commercial Airbus A380: Boeing 787: Cabin lighting and electronics Cabin electronics Airlines: Cab
Slide 17: Airport Lighting and Aircraft Safety
AIRPORT LIGHTING AND AIRCRAFT SAFETY • Airport lighting systems provider to FAA and public/private airports • Leading supplier of emergency flashlights, raft and slide lighting, locator transmitters, and survival kits for airlines worldwide © 2011 by Astronics Corporation 17
Slide 18: Test, Training & Simulation
TEST, TRAINING & SIMULATION Synthetic instrument-based, software-defined automated test systems for: ► Front line to depot repair level ► Electro-optical devices ► Military communications ► Factory test solutions ► Unmanned ground or air vehicles ► Portable maintenance ► Foreign military solutions ©
Slide 19: Capitalize on Technical Expertise
CAPITALIZE ON TECHNICAL EXPERTISE Develop chosen technologies internally & by acquisition Pursue market opportunities to capitalize on technological innovation Deliver higher value-added products & returns © 2011 by Astronics Corporation 19
Slide 20: Share Performance Since 12/31/2008
0% -100% 100% -50% 50% 100% 150% 200% 250% Dec-08 Jan-09 Feb-09 © 2011 by Astronics Corporation Mar-09 Apr-09 May-09 ATRO Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Russell 2000 Index Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nasdaq Composite Index Nov-10 Dec-10 Jan
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Slide 22: Develop and Capitalize on Technical Expertise
DEVELOP AND CAPITALIZE ON TECHNICAL EXPERTISE Engineering & Development Expense ($ in millions) Identify market opportunities $30-$32 $27.0 $28.3 $22.9 Develop/acquire technical capability 2008 2009 2010 2011E Earn higher returns by 13.2% 14.1% 14.5% 14.3%** providing innovative solutions Percent of
Slide 23: Current Manufacturing Locations
CURRENT MANUFACTURING LOCATIONS Montreal, Quebec – 20,000 sq. ft. ((leased)) Redmond, WA – 100,000 sq. ft. (Building new facility) East Aurora, NY Lebanon, NH – Corporate 80,000 sq. ft. Headquarters – (owned) 125,000 sq. ft. (owned) Orlando, FL – Ft. Lauderdale, FL 51,000 sq. ft. 72,000 sq. ft. (lea