Outlook

As previously reported, consolidated sales in 2018 are expected to be in the range of $745 million to $815 million. Approximately $630 million to $680 million of revenue is expected from the Aerospace segment. Test Systems segment revenue for 2018 is expected to be approximately $115 million to $135 million.

Consolidated backlog at December 31, 2017 was $393.7 million, a record level, of which approximately $346.7 million is expected to ship in 2018.

Mr. Gundermann commented, “We believe 2018 will be an excellent year for our company, with many of the recent headwinds we have faced turning to tailwinds. The mid-point of our consolidated revenue range calls for growth of 25%, with our Aerospace segment being up about 22% and our Test segment being up 39%. We are pursuing a number of high-value awards that will heavily influence our plans, which we will refine as soon as possible.”

The effective tax rate for 2018 is expected to be approximately 18% to 22%.

Capital equipment spending in 2018 is expected to be in the range of $24 million to $28 million. E&D spending in 2018 is expected to be in the range of $110 million to $115 million including the Acquired Businesses, which represents approximately 14.4% of sales at the mid-point of the expected sales range.

Fourth Quarter 2017 Webcast and Conference Call

The Company will host a teleconference today at 5:00 p.m. ET. During the teleconference, Peter J. Gundermann, President and CEO, and David C. Burney, Executive Vice President and CFO, will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.

The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at www.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13676642. The telephonic replay will be available from 8:00 p.m. ET on the day of the call through Monday, March 5, 2018. A transcript will also be posted to the Company’s website once available.

About Astronics Corporation

Astronics Corporation (NASDAQ: ATRO) serves the world’s aerospace, defense and semiconductor 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 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers and Fortune 500 manufacturing organizations rely on the collaborative spirit and innovation of Astronics.

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. 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 state of the aerospace, defense, consumer electronics and semiconductor 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 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.

FINANCIAL TABLES FOLLOW

ASTRONICS CORPORATION
CONSOLIDATED INCOME STATEMENT DATA
(Unaudited, $ in thousands except per share data)
	Three Months Ended								Year Ended
	12/31/2017				12/31/2016				12/31/2017				12/31/2016
Sales	$	171,318			$	154,068			$	624,464			$	633,123
Cost of products sold	139,165				117,582				487,351				473,656
Gross profit	32,153				36,486				137,113				159,467
Gross margin	18.8		%		23.7		%		22.0		%		25.2		%
Impairment Loss	16,237				—				16,237				—
Selling, general and administrative	24,012				21,082				90,516				86,328
SG&A % of sales	14.0		%		13.7		%		14.5		%		13.6		%
(Loss) Income from operations	(8,096		)		15,404				30,360				73,139
Operating margin	(4.7		)%		10.0		%		4.9		%		11.6		%
Interest expense, net	1,619				1,108				5,369				4,354
(Loss) Income before tax	(9,715		)		14,296				24,991				68,785
Income tax expense (benefit)	(4,062		)		4,411				5,312				20,361
Net (Loss) income	$	(5,653	)		$	9,885			$	19,679			$	48,424
Net (Loss) income % of sales	(3.3		)%		6.4		%		3.2		%		7.6		%
Basic earnings per share:	$	(0.20	)		$	0.34			$	0.69			$	1.66
Diluted earnings per share:	$	(0.20	)		$	0.33			$	0.67			$	1.61
Weighted average diluted shares outstanding (in thousands)	28,015				29,742				29,320				30,032
Capital expenditures	$	3,763			$	3,168			$	13,478			13,037
Depreciation and amortization	$	7,794			$	6,333			$	27,063			$	25,790

ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
($ in thousands)
		(unaudited)
		12/31/2017				12/31/2016
ASSETS
Cash and cash equivalents		$	17,914			$	17,901
Accounts receivable and uncompleted contracts		132,633				109,415
Inventories		150,196				116,597
Other current assets		14,586				11,160
Property, plant and equipment, net		125,830				122,812
Other long-term assets		15,659				13,149
Intangible assets, net		153,493				98,103
Goodwill		125,645				115,207
Total assets		$	735,956			$	604,344
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long term debt		$	2,689			$	2,636
Accounts payable and accrued expenses		80,595				60,756
Customer advances and deferred revenue		19,607				23,168
Long-term debt		269,078				145,484
Other liabilities		34,060				34,851
Shareholders' equity		329,927				337,449
Total liabilities and shareholders' equity		$	735,956			$	604,344

ASTRONICS CORPORATION
Segment Data
(Unaudited, $ in thousands)
		Three Months Ended							Year Ended
		12/31/2017				12/31/2016				12/31/2017				12/31/2016
Sales
Aerospace		$	139,687			$	128,052			$	534,724			$	534,408
Less Inter-segment		(121		)		—				(121		)		(367		)
Total Aerospace		139,566				128,052				534,603				534,041
Total Test Systems		31,752				26,016				89,861				99,082
Total consolidated sales		171,318				154,068				624,464				633,123
Operating (loss) profit and margins
Aerospace		(7,865		)		16,867				38,888				77,966
		(5.6		)%		13.2		%		7.3		%		14.6		%
Test Systems		4,516				1,983				7,359				8,507
		14.2		%		7.6		%		8.2		%		8.6		%
Total operating (loss) profit		(3,349		)		18,850				46,247				86,473
Interest expense		1,619				1,108				5,369				4,354
Corporate expenses and other		4,747				3,446				15,887				13,334
(Loss) Income before taxes		$	(9,715	)		$	14,296			$	24,991			$	68,785

ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
		Three Months Ended											Year Ended
		12/31/2017				12/31/2016				% change			12/31/2017			12/31/2016			% change			2017 YTD
Aerospace Segment
Commercial Transport		$	107,624			$	104,378			3.1	%		$	414,523		$	435,552		-4.8	%		66.4	%
Military		14,974				14,624				2.4	%		61,270			54,556			12.3	%		9.8	%
Business Jet		12,454				5,042				147.0	%		41,298			25,407			62.5	%		6.6	%
Other		4,514				4,008				12.6	%		17,512			18,526			-5.5	%		2.8	%
Aerospace Total		139,566				128,052				9.0	%		534,603			534,041			0.1	%		85.6	%
Test Systems Segment
Semiconductor		13,655				4,076				235.0	%		31,999			37,939			-15.7	%		5.1	%
Aerospace & Defense		18,097				21,940				-17.5	%		57,862			61,143			-5.4	%		9.3	%
Test Systems Total		31,752				26,016				22.0	%		89,861			99,082			-9.3	%		14.4	%
Total		$	171,318			$	154,068			11.2	%		$	624,464		$	633,123		-1.4	%

ASTRONICS CORPORATION
SALES BY PRODUCT LINE
(Unaudited, $ in thousands)
	Three Months Ended										Year Ended
	12/31/2017			12/31/2016				% change			12/31/2017			12/31/2016			% change			2017 YTD
Aerospace Segment
Electrical Power & Motion	$	65,273		$	69,250			-5.7	%		$	264,286		$	288,465		-8.4	%		42.3	%
Lighting & Safety	36,346			35,351				2.8	%		158,663			156,871			1.1	%		25.4	%
Avionics	22,536			10,077				123.6	%		53,960			32,761			64.7	%		8.6	%
Systems Certification	4,927			3,954				24.6	%		14,333			16,531			-13.3	%		2.3	%
Structures	5,970			5,412				10.3	%		25,849			20,887			23.8	%		4.1	%
Other	4,514			4,008				12.6	%		17,512			18,526			-5.5	%		2.8	%
Aerospace Total	139,566			128,052				9.0	%		534,603			534,041			0.1	%		85.6	%
Test Systems	31,752			26,016				22.0	%		89,861			99,082			-9.3	%		14.4	%
Total	$	171,318		$	154,068			11.2	%		$	624,464		$	633,123		-1.4	%

ASTRONICS CORPORATION ORDER AND BACKLOG TREND (Unaudited, $ in thousands)
		Q1 2017				Q2 2017			Q3 2017			Q4 2017			Trailing Twelve Months
		04/01/2017				7/1/2017			9/30/2017			12/31/2017			12/31/2017
Sales
Aerospace		$	136,827			$	129,547		$	128,663		$	139,566		$	534,603
Test Systems		15,569				21,567			20,973			31,752			89,861
Total Sales		$	152,396			$	151,114		$	149,636		$	171,318		$	624,464
Bookings
Aerospace		$	122,836			$	134,822		$	146,178		$	179,340		$	583,176
Test Systems		24,236				23,944			40,161			57,719			146,060
Total Bookings		$	147,072			$	158,766		$	186,339		$	237,059		$	729,236
Backlog*
Aerospace		$	205,155			$	215,647		$	233,162		$	298,604
Test Systems		47,554				49,931			69,119			95,086
Total Backlog		$	252,709			$	265,578		$	302,281		$	393,690		N/A
Book:Bill Ratio
Aerospace		0.90				1.04			1.14			1.28			1.09
Test Systems		1.56				1.11			1.91			1.82			1.63
Total Book:Bill		0.97				1.05			1.25			1.38			1.17

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