Astronics Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Astronics Corp has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ASTRONICS CORP (ATROB) filed a Annual Report (10-K) with the SEC on March 5, 2024. Astronics Corp filed its 2023 Form 10-K on March 5, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in New York and operates in the Aircraft Part & Auxiliary Equipment sector. Its principal business address is in East Aurora, NY. The filing includes financial data for fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking ASTRONICS CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Astronics Corp's financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. The detailed financial statements and risk factor disclosures within the report offer insights into the company's ability to navigate the aerospace and defense industry's complexities and its future growth prospects.

Risk Assessment

Risk Level: medium — ASTRONICS CORP shows moderate risk based on this filing. The company operates in the Aircraft Part & Auxiliary Equipment sector, which is subject to cyclical demand and regulatory changes, as indicated by its SIC code and the nature of a 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Astronics Corp's performance and outlook in the aerospace sector.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240305 — Filing Date (FILED AS OF DATE)
• 131 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 2023 — Fiscal Year (2023 FY)

Key Players & Entities

• ASTRONICS CORP (company) — FILER
• 0000008063 (company) — CENTRAL INDEX KEY
• 3728 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• NY (company) — STATE OF INCORPORATION
• 130 COMMERCE WAY (company) — BUSINESS ADDRESS
• EAST AURORA (company) — CITY
• 14052-2191 (company) — ZIP
• 716-805-1599 (company) — BUSINESS PHONE

FAQ

Industry Context

Astronics Corp operates within the aircraft part and auxiliary equipment manufacturing industry, a sector that is integral to the broader aerospace and defense market.

Regulatory Implications

As a publicly traded company, Astronics Corp is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue trends, profitability, and balance sheet health.
2. Review the 'Risk Factors' section to understand potential challenges and uncertainties facing Astronics Corp.
3. Examine management's discussion and analysis (MD&A) for insights into operational performance and strategic initiatives.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-05: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), following previous filings such as quarterly reports (10-Q) and potentially prior annual reports.

Key Financial Figures

• $0.01 — ng of 28,639,141 shares of Common Stock $0.01 par value and 5,882,378 shares of Class
• $205 m — pleted a financing transaction totaling $205 million, which refinanced its previous re
• $90 million — r 2023. The new financing consists of a $90 million asset-based term loan (the "Term Loan F
• $115 million — m loan (the "Term Loan Facility") and a $115 million asset-based revolving credit facility (
• $14.7 million — he Company was awarded a grant of up to $14.7 million from the U.S. Department of Transportat
• $7.3 million — Program ("AMJP"). The Company received $7.3 million and $7.4 million under the grant in 202
• $7.4 million — . The Company received $7.3 million and $7.4 million under the grant in 2022 and 2021, respe
• $6.0 million — , 2022 and 2021, the Company recognized $6.0 million and $8.7 million of the award, respecti
• $8.7 million — the Company recognized $6.0 million and $8.7 million of the award, respectively. For additi
• $10.7 million — Company agreed to an earnout payment of $10.7 million for the calendar 2020 earnout, which wa
• $11.3 million — calendar 2021 earnout in the amount of $11.3 million. The Company recorded the gain and rece
• $3.4 million — calendar 2022 earnout in the amount of $3.4 million. The Company recorded the gain and rece
• $9.2 million — sold one of its Aerospace buildings for $9.2 million. Net cash proceeds were approximately $
• $8.8 million — n. Net cash proceeds were approximately $8.8 million and a gain on sale of approximately $5.
• $5.0 million — ion and a gain on sale of approximately $5.0 million was recorded. The operation has been in

Filing Documents

• atro-20231231.htm (10-K) — 1892KB
• atro-20231231xex1023.htm (EX-10.23) — 77KB
• atro-20231231xex21.htm (EX-21) — 21KB
• atro-20231231xex23.htm (EX-23) — 5KB
• atro-20231231xex311.htm (EX-31.1) — 10KB
• atro-20231231xex312.htm (EX-31.2) — 10KB
• atro-20231231xex32.htm (EX-32) — 5KB
• atro-20231231xex97.htm (EX-97) — 42KB
• atro-20231231_g1.jpg (GRAPHIC) — 380KB
• 0000008063-24-000014.txt (&nbsp;) — 13151KB
• atro-20231231.xsd (EX-101.SCH) — 85KB
• atro-20231231_cal.xml (EX-101.CAL) — 125KB
• atro-20231231_def.xml (EX-101.DEF) — 464KB
• atro-20231231_lab.xml (EX-101.LAB) — 1134KB
• atro-20231231_pre.xml (EX-101.PRE) — 776KB
• atro-20231231_htm.xml (XML) — 1888KB

Risk Factors

Item 1A. Risk Factors 8

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17

Cybersecurity

Item 1C. Cybersecurity 18

Properties

Item 2. Properties 19

Legal Proceedings

Item 3. Legal Proceedings 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20

[Reserved]

Item 6. [Reserved] 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 33

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 34

Changes i n and Disagreements W ith Accountants on Accounting and Financial Disclosure

Item 9. Changes i n and Disagreements W ith Accountants on Accounting and Financial Disclosure 72

Controls and Procedures

Item 9A. Controls and Procedures 73

Other Information

Item 9B. Other Information 73

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 73 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 74

Executive Compensation

Item 11. Executive Compensation 74

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 74

Certain Relationships and Related Transactions , and Director Independence

Item 13. Certain Relationships and Related Transactions , and Director Independence 74

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 74 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 75

Form 10-K Summary

Item 16. Form 10-K Summary 79 2

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume," "assume" and other words and terms of similar meaning, including their negative counterparts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to several factors, risks and uncertainties that may cause actual results to differ materially from those that we expected, including but not limited to: the loss of Boeing as a major customer or a significant reduction in business with Boeing; the cyclical nature of the markets we serve and their sensitivity to foreign economic conditions, conflicts and events; the highly competitive nature of our industry; our dependence on government contracts and subcontracts with defense prime contractors and subcontractors, and the possibility that these contracts may be terminated, not fully funded or awarded to our competitors; the highly-regulated nature of our industry and the potential for fines, penalties, debarment or Federal Aviation Administration ("FAA") decertification in the event of noncompliance; our ability to adapt to technological change; our ability to successfully develop new products; the incurring of loss and liabilities as a result of our acquisition strategy; our ability to protect our information technology infrastructure from cyber-attacks; our ability to adequately enforce a

BUSINESS

ITEM 1. BUSINESS Astronics Corporation ("Astronics" or the "Company") is a leading provider of advanced technologies to the global aerospace, defense and electronics industries. Our products and services include advanced, high-performance electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, systems and certification, aircraft structures and automated test systems. We have principal operations in the United States ("U.S."), Canada, France and England, as well as engineering offices in Ukraine and India. Our operation in Ukraine is a small engineering office and we have not experienced any significant disruption in staffing or services as a result of the Ukrainian and Russian conflict. Refinancing On January 19, 2023, the Company completed a financing transaction totaling $205 million, which refinanced its previous revolving credit facility which was scheduled to mature in November 2023. The new financing consists of a $90 million asset-based term loan (the "Term Loan Facility") and a $115 million asset-based revolving credit facility (the "ABL Revolving Credit Facility"). The Term Loan Facility requires monthly amortization that began in April 2023 and bears interest at the Secured Overnight Financing Rate ("SOFR") plus 8.75%. The ABL Revolving Credit Facility bears interest at SOFR plus between 2.25% and 2.75%. For additional information, see discussion in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Note 8, Long-Term Debt, of Item 8, Financial Statements and Supplementary Data, of this report. Impact of the COVID-19 Pandemic Our business continues to face varying levels of supply chain pressures from the residual impacts of the COVID-19 pandemic. Domestic air travel has recovered from the impact of the COVID-19 pandemic, and international travel utilizing primarily widebody aircraft is close to pre-pandemic levels. As economic activity continues to r

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View this 10-K filing on SEC EDGAR