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						Nine Months Ended
		9/29/2018			9/30/2017			9/29/2018			9/30/2017
Sales		$	212,674		$	149,636		$	600,339		$	453,146
Cost of products sold			166,354			117,143			467,315			348,186
Gross profit			46,320			32,493			133,024			104,960
Gross margin			21.8%			21.7%			22.2%			23.2%
Selling, general and administrative			27,976			22,099			87,919			65,573
SG&A % of sales			13.2%			14.8%			14.6%			14.5%
Income from operations			18,344			10,394			45,105			39,387
Operating margin			8.6%			6.9%			7.5%			8.7%
Other expense, net of other income			253			311			1,091			931
Interest expense, net			2,511			1,437			7,326			3,750
Income before tax			15,580			8,646			36,688			34,706
Income tax (benefit) expense			(1,419)			2,586			2,370			9,374
Net income		$	16,999		$	6,060		$	34,318		$	25,332
Net income % of sales			8.0%			4.0%			5.7%			5.6%
*Basic earnings per share:		$	0.53		$	0.19		$	1.06		$	0.77
*Diluted earnings per share:		$	0.52		$	0.18		$	1.04		$	0.74
*Weighted average diluted shares outstanding (in thousands)			32,969			33,350			33,035			34,220
Capital expenditures		$	3,921		$	3,965		$	12,416		$	9,715
Depreciation and amortization		$	8,172		$	6,681		$	26,756		$	19,269

*All share quantities and per-share data have been restated to reflect the impact of the fifteen percent Class B stock distribution to shareholders of record on October 12, 2018.

ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEET DATA
($ in thousands)
		(unaudited)
		9/29/2018			12/31/2017
ASSETS
Cash and cash equivalents		$	4,893		$	17,914
Accounts receivable and uncompleted contracts			189,110			132,633
Inventories			154,870			150,196
Other current assets			17,155			14,586
Property, plant and equipment, net			124,652			125,830
Other long-term assets			21,893			15,659
Intangible assets, net			138,347			153,493
Goodwill			125,136			125,645
Total assets		$	776,056		$	735,956
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long term debt		$	1,965		$	2,689
Accounts payable and accrued expenses			85,522			80,595
Customer advances and deferred revenue			30,186			19,607
Long-term debt			257,680			269,078
Other liabilities			31,258			34,060
Shareholders' equity			369,445			329,927
Total liabilities and shareholders' equity		$	776,056		$	735,956

SEGMENT DATA
(Unaudited, $ in thousands)
		Three Months Ended						Nine Months Ended
		9/29/2018			9/30/2017			9/29/2018			9/30/2017
Sales
Aerospace		$	169,588		$	128,663		$	500,445		$	395,037
Less inter-segment		(9)			—			(62)			—
Total Aerospace		169,579			128,663			500,383			395,037
Test Systems		43,095			20,973			99,956			58,109
Total consolidated sales		212,674			149,636			600,339			453,146
Operating profit and margins
Aerospace		16,210			13,015			47,525			46,753
		9.6%			10.1%			9.5%			11.8%
Test Systems		5,833			1,093			10,151			2,843
		13.5%			5.2%			10.2%			4.9%
Total operating profit		22,043			14,108			57,676			49,596
Interest expense		2,511			1,437			7,326			3,750
Corporate expenses and other		3,952			4,025			13,662			11,140
Income before taxes		$	15,580		$	8,646		$	36,688		$	34,706

ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS DATA
(Unaudited, $ in thousands)
		Nine Months Ended
		September 29,				September 30,
		2018				2017
Cash flows from operating activities:
Net income		$	34,318			$	25,332
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		26,756				19,269
Provisions for non-cash losses on inventory and receivables		2,432				943
Stock compensation expense		2,349				2,203
Deferred tax benefit		(1,536		)		(920		)
Other		(507		)		(657		)
Cash flows from changes in operating assets and liabilities:
Accounts receivable		(52,890		)		(1,515		)
Inventories		(15,768		)		(18,480		)
Accounts payable		571				8,267
Accrued expenses		4,977				(5,483		)
Other current assets and liabilities		(1,620		)		(4,556		)
Customer advanced payments and deferred revenue		19,241				(2,336		)
Income taxes		(4,315		)		(883		)
Supplemental retirement and other liabilities		1,351				1,129
Cash provided by operating activities		15,359				22,313
Cash flows from investing activities:
Acquisition of business, net of cash acquired		—				(10,199		)
Capital expenditures		(12,416		)		(9,715		)
Other investing activities		(3,376		)		(2,070		)
Cash used for investing activities		(15,792		)		(21,984		)
Cash flows from financing activities:
Proceeds from long-term debt		35,015				42,000
Payments for long-term debt		(47,116		)		(13,031		)
Purchase of outstanding shares for treasury		—				(32,382		)
Debt acquisition costs		(516		)		—
Proceeds from exercise of stock options		283				349
Cash used for financing activities		(12,334		)		(3,064		)
Effect of exchange rates on cash		(254		)		211
Decrease in cash and cash equivalents		(13,021		)		(2,524		)
Cash and cash equivalents at beginning of period		17,914				17,901
Cash and cash equivalents at end of period		$	4,893			$	15,377

ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
		Three Months Ended								Nine Months Ended								2018 YTD
		9/29/2018			9/30/2017			% change		9/29/2018			9/30/2017			% change		% of Sales
Aerospace Segment
Commercial Transport		$	136,692		$	98,821		38.3%		$	402,539		$	306,898		31.2%		67.1%
Military		16,125			15,365			4.9%		46,410			46,297			0.2%		7.7%
Business Jet		9,289			10,592			(12.3)%		30,291			28,844			5.0%		5.1%
Other		7,473			3,885			92.4%		21,143			12,998			62.7%		3.5%
Aerospace Total		169,579			128,663			31.8%		500,383			395,037			26.7%		83.4%
Test Systems Segment
Semiconductor		33,596			6,632			406.6%		72,061			18,343			292.9%		12.0%
Aerospace & Defense		9,499			14,341			(33.8)%		27,895			39,766			(29.9)%		4.6%
Test Systems Total		43,095			20,973			105.5%		99,956			58,109			72.0%		16.6%
Total		$	212,674		$	149,636		42.1%		$	600,339		$	453,146		32.5%
SALES BY PRODUCT LINE
(Unaudited, $ in thousands)
		Three Months Ended								Nine Months Ended								2018 YTD
		9/29/2018			9/30/2017			% change		9/29/2018			9/30/2017			% change		% of Sales
Aerospace Segment
Electrical Power & Motion		$	78,610		$	63,972		22.9%		$	218,931		$	199,014		10.0%		36.5%
Lighting & Safety		43,481			37,001			17.5%		129,244			122,317			5.7%		21.6%
Avionics		31,059			11,348			173.7%		100,354			31,424			219.4%		16.7%
Systems Certification		2,373			4,454			(46.7)%		12,028			9,405			27.9%		2.0%
Structures		6,583			8,003			(17.7)%		18,683			19,879			(6.0)%		3.1%
Other		7,473			3,885			92.4%		21,143			12,998			62.7%		3.5%
Aerospace Total		169,579			128,663			31.8%		500,383			395,037			26.7%		83.4%
Test Systems Segment		43,095			20,973			105.5%		99,956			58,109			72.0%		16.6%
Total		$	212,674		$	149,636		42.1%		$	600,339		$	453,146		32.5%

ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)
		Q4 2017			Q1 2018			Q2 2018			Q3 2018			Trailing Twelve Months
		12/31/2017			3/31/2018			6/30/2018			9/29/2018			9/29/2018
Sales
Aerospace		$	139,566		$	164,600		$	166,204		$	169,579		$	639,949
Test Systems			31,752			14,459			42,402			43,095			131,708
Total Sales		$	171,318		$	179,059		$	208,606		$	212,674		$	771,657
Bookings
Aerospace		$	179,340		$	180,883		$	158,870		$	196,671		$	715,764
Test Systems			57,719			15,280			28,060			37,137			138,196
Total Bookings		$	237,059		$	196,163		$	186,930		$	233,808		$	853,960
Backlog*
Aerospace		$	298,604		$	305,977		$	298,643		$	325,735
Test Systems			95,086			92,635			78,293			72,335
Total Backlog		$	393,690		$	398,612		$	376,936		$	398,070			N/A
Book:Bill Ratio
Aerospace			1.28			1.10			0.96			1.16			1.12
Test Systems			1.82			1.06			0.66			0.86			1.05
Total Book:Bill			1.38			1.10			0.90			1.10			1.11

* During the fourth quarter of 2017, the Telefonix PDT acquisition added backlog of approximately $25.7 million for the Aerospace segment. In the first quarter of 2018, the implementation of new required revenue recognition accounting rules resulted in a reduction to backlog of $8.9 million and $3.3 million for the Aerospace and Test Systems segments, respectively.

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