ATRO

[BigSully1]

 Re: Your Stocks
« Reply #41 on: November 14, 2007, 03:56:14 PM » Quote Modify Remove  

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An article yesterday in IBD yesterday is compelling me to write about a stock I first discovered  in August on a stellar ER. They also had another outstanding on Nov 2.  IBD did not mention this particular company in the article, but it is worth mentioning here. It's a micro/small cap and thinly traded, although not as thin anymore considering the stock is now $47 and trading with more volume lately.

The stock has an added benefit of global and military sales, in a sector I very much like, again. Highlights from the IBD article at bottom.

ATRO -  Astronics - Index Membership: N/A
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Full Time Employees: 787


BUSINESS SUMMARY  
Astronics Corporation, through its subsidiaries, engages in the design and manufacturing of lighting systems and components, electrical power generation, in-flight control, and power generation systems for the aerospace industry worldwide. Astronics Corporation serves original equipment manufacturers (OEM) in the commercial transport, business jet, and military markets, as well as OEM suppliers and aircraft operators with various products, including cockpit lighting, exterior lighting, cabin lighting systems, and air frame power. The company was founded in 1968 and is based in East Aurora, New York.

http://stockcharts.com/h-sc/ui?s=ATRO&p=D&b=5&g=0&id=p59191861522


Astronics Corporation Reports Third Quarter 2007 Results
Friday November 2, 6:58 am ET  
-- Third quarter net income of $4.1 million vs. $1.6 million in 2006
-- Year-to-date net income of $13.3 million compared with $4.9 million in 2006
-- Sales for 2007 expected to be in the $155 to $160 million range


EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (NASDAQ: ATRO - News), a trusted leader in innovative, high performance lighting, power generation, control and distribution systems for the global aerospace industry, today reported sales of $37.7 million in the third quarter of 2007 which ended September 29, 2007, a 36% increase compared with sales of $27.8 million in the third quarter of 2006. Net income for the third quarter of 2007 was $4.1 million, up $2.5 million from the third quarter of 2006. On a per share basis, earnings were $0.48 per diluted share, or more than double earnings of $0.20 per diluted share in the same period last year.
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Sales to the commercial transport market led the year-over-year growth by increasing 54% to $23.1 million in the third quarter of 2007 compared with $15.0 million in the same period last year. Cabin electronics products, which provide in-seat power and power for in-flight entertainment systems for commercial aircraft, had sales of $18.8 million, a 63% increase compared with the third quarter of 2006 as many airlines continue aggressive refurbishment programs for older aircraft and new aircraft deliveries increase. Sales to the business jet market improved to $7.6 million in the third quarter of 2007, a 20% increase compared with $6.3 million in the same period the prior year as a result of expanded content on new aircraft platforms and the growth of the market. Military sales increased 10% to $6.7 million.

Peter J. Gundermann, President and Chief Executive Officer of Astronics Corporation, commented, "We continue to see strong demand across the aerospace industry for the full range of our products. We also see an exciting range of new opportunities for the future, though we will need to increase our engineering and development spending to develop them fully. We aim to compel our customers to choose us as partners as they develop new aircraft by offering innovative technology and high-value systems. When we are selected to develop products for an aircraft during its development phase, we can typically count on participating in the program for as long as the aircraft flies."

Costs and Expenses

Gross profit for the third quarter of 2007 was $10.1 million, or a gross margin of 26.9%, compared with $6.1 million, or a gross margin of 22.0%, in the same period the prior year. Gross profit in the 2007 third quarter was positively impacted by a $0.85 million adjustment related to 2007 estimated manufacturing overhead cost absorption. Had this adjustment been made in the first half of 2007, gross margin would have been $0.85 million higher in that period and third quarter gross margin $0.85 million lower than reported. Excluding this adjustment, gross margin would have been 24.6% in the third quarter of 2007. Engineering and Development (E&D) costs in the third quarter of 2007 were $3.8 million compared with $2.5 million in the same period the prior year.

Selling, general and administrative (SG&A) expenses in the third quarter of 2007 were $3.9 million, or 10.3% of sales, compared with $3.5 million, or 12.5% of sales, in the same period the prior year.

Nine-Month Review

Sales for the first nine months of 2007 were $122.0 million, a 49% increase compared with $81.8 million in the first nine months of the prior year. Commercial transport sales in the first nine months of 2007 increased 79%, to $79.4 million compared with the same period the prior year. Business jet sales increased 32%, to $22.0 million, for the year-over-year nine-month period, while military sales remained flat. Strong aircraft production rates, new products and demand for in-seat power and in-flight entertainment systems using Astronics' power systems were the primary reasons for the growth.

Gross margin for the first nine months of 2007 was 27.2% compared with 22.4% in the first nine months of 2006. Operating leverage gained on the higher sales volume was partially offset by E&D expenses of $11.0 million in 2007 compared with $7.7 million in the first nine months of 2006. SG&A expenses for the first nine months of 2007 were $12.6 million, or 10.3% of sales, compared with $9.9 million, or 12.1% of sales, in the same period the prior year. Operating margin for the nine-month period was 16.9% compared with 10.2% in the first nine months of 2006.

Net income for the first nine months of 2007 was $13.3 million, or $1.56 per diluted share, compared with $4.9 million, or $0.60 per diluted share, in the first nine months of 2006.

Capital expenditures for the third quarter and first nine months of 2007 were $1.6 million and $7.6 million, respectively, compared with $0.7 million and $2.3 million in the third quarter and first nine months of 2006, respectively. The year-over-year capital expenditure increases can be attributed to facility expansions and equipment investments for the Company's East Aurora, New York and Redmond, Washington facilities.

Outlook

Bookings were $33.3 million in the third quarter of 2007 compared with $26.0 million in the same period the prior year and $38.7 million in the second quarter of 2007. At the end of the third quarter, backlog was $90.0 million of which $33 million is planned to ship during the last three months of 2007.

Peter J. Gundermann President and CEO, noted, "We now expect sales for the full year to be in the range of $155 million to $160 million, up approximately 40% over our 2006 total of $110.8 million. This will be our third year in a row of strong growth at or above this level. Our early expectations are that 2008 will be another very good year for Astronics, but that our growth rate will likely moderate to a range of 10% to 20%. This preliminary estimate is based on our insight into expected production rates and retrofit programs."

Third Quarter 2007 Webcast and Conference Call

The Company will host a teleconference at 10 a.m. ET today. During the teleconference,

Peter J. Gundermann, President and CEO, and David C. Burney, 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 the following ways:


The live webcast can be found at http://www.astronics.com. Participants should go to the website 10 - 15 minutes prior to the scheduled conference in order to register and download any necessary audio software.
The teleconference can be accessed by dialing (201) 689-8562 and requesting conference ID number 258587 approximately 5 - 10 minutes prior to the call.
To listen to the archived call:


The archived webcast will be at http://www.astronics.com. A transcript will also be posted once available.
A replay can also be heard by calling (201) 612-7415 and referencing account number 3055 and conference ID number 258587.
The telephonic replay will be available from 1 p.m. ET the day of the call through 11:59 p.m. ET November 9, 2007.

ABOUT ASTRONICS CORPORATION

Astronics Corporation is a trusted leader in innovative, high performance lighting, power generation, control and distribution systems for the global aerospace industry. Its strategy is to expand the value and content it provides to various aircraft platforms through product development and acquisition. Astronics Corporation, and its wholly-owned subsidiaries Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices.

For more information on Astronics and its products, visit its website at www.Astronics.com.

Safe Harbor Statement

This press 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 expression. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially include the state of the aerospace industry, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes, the demand for and market acceptance of new or existing aircraft which contain the Company's products, 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 press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

ASTRONICS CORPORATION  
CONSOLIDATED INCOME STATEMENT DATA  
(unaudited)  
                   
(in thousands except per share data)          
 Three months ended    Nine months ended  
    9/29/2007           9/30/2006              9/29/2007           9/30/2006    
Sales   $  37,724    $  27,752     $  121,967    $  81,847  
Cost of products sold    27,582     21,633      88,740     63,550  
Gross margin    26.9  %    22.0  %     27.2  %    22.4  %  
Selling general and administrative      3,877           3,469              12,557           9,931    
Income from operations    6,265     2,650      20,670     8,366  
Operating margin    16.6  %    9.5  %     16.9  %    10.2  %  
Interest expense, net    396     232      1,072     650  
Other (income) expense      -           (5  )           (11  )        (39  )  
Income before tax    5,869     2,423      19,609     7,755  
Income taxes      1,743           775              6,287           2,826    
Net Income   $  4,126        $  1,648           $  13,322        $  4,929    
         
Basic earnings per share:   $  0.51    $  0.21     $  1.65    $  0.62  
Diluted earnings per share:   $  0.48    $  0.20     $  1.56    $  0.60  
         
Weighted average diluted shares outstanding    8,605     8,264      8,531     8,210  
                             
Capital Expenditures   $  1,649    $  693     $  7,566    $  2,300  
Depreciation and Amortization     $  876        $  701           $  2,447        $  1,960    
ASTRONICS CORPORATION  
ORDER AND BACKLOG TREND  
                               
($, in thousands)   2006   2007  
     
 Q1 2006   Q2 2006   Q3 2006   Q4 2006   Twelve Months   Q1 2007   Q2 2007   Q3 2007  
        4/1/06        7/1/06        9/30/06        12/31/06        12/31/06     3/31/07     6/30/07     9/29/07  
Sales     $  25,263     $  28,832     $  27,752     $  28,920     $  110,767     $  42,875     $  41,368     $  37,724  
Net Income     $  1,318     $  1,963     $  1,648     $  807     $  5,736     $  4,695     $  4,501     $  4,126  
Bookings     $  23,850     $  23,929     $  25,985     $  40,411     $  114,175     $  40,351     $  38,711     $  33,347  
Backlog     $  94,706     $  89,803     $  88,036     $  99,527     $  99,527     $  97,003     $  94,346     $  89,969  
Book:Bill    0.94    0.83    0.94    1.40    1.03    0.94    0.94    0.88  
ASTRONICS CORPORATION  
CONSOLIDATED BALANCE SHEET DATA  
(unaudited)  
(in thousands)          
 9/29/2007   12/31/2006  
ASSETS:      
Cash and cash equivalents   $  837   $  222  
Accounts receivable    23,869    17,165  
Inventories    37,800    31,570  
Other current assets    2,931    2,699  
Property, plant and equipment, net    29,057    23,436  
Other assets      9,372      7,446  
Total Assets   $  103,866   $  82,538  
     
LIABILITIES AND SHAREHOLDERS' EQUITY:      
Current maturities of long term debt   $  949   $  923  
Note payable    10,400    8,100  
Accounts payable and accrued expenses    23,542    25,196  
Long-term debt    15,086    9,426  
Other liabilities    7,582    7,545  
Shareholders' equity      46,307      31,348  
Total liabilities and shareholders' equity   $  103,866   $  82,538  
   ASTRONICS CORPORATION      
 SALES BY MARKET    
 ($, in thousands)    
                       
 Three Months Ended   Nine Months Ended    
    9/29/2007      9/30/2006   % change         9/29/2007      9/30/2006   % change      2007 YTD %  
               
Military   $  6,731   $  6,136   10  %   $  19,696   $  19,724   0  %   16  %  
Commercial Transport    23,116    14,993   54  %    79,433    44,448   79  %   65  %  
Business Jet    7,626    6,340   20  %    21,952    16,668   32  %   18  %  
Other    251    283   -11  %    886    1,007   -12  %   1  %  
                           
Total   $  37,724   $  27,752   36  %   $  121,967   $  81,847   49  %   100  %  
   ASTRONICS CORPORATION      
 SALES BY PRODUCT    
 ($, in thousands)    
                       
 Three Months Ended   Nine Months Ended    
 9/29/2007   9/30/2006   % change   9/29/2007   9/30/2006   % change   2007 YTD %  
               
Cockpit Lighting   $  10,051   $  8,300   21  %   $  27,064   $  23,582   15  %   22  %  
Cabin Electronics    18,803    11,570   63  %    66,346    32,658   103  %   54  %  
Airframe Power    4,079    3,759   9  %    14,572    12,320   18  %   12  %  
Exterior Lighting    2,353    1,872   26  %    6,437    5,851   10  %   5  %  
Cabin Lighting    2,187    1,968   11  %    6,662    6,429   4  %   6  %  
Other    251    283   -11  %    886    1,007   -12  %   1  %  
                           
Total   $  37,724   $  27,752   36  %   $  121,967   $  81,847   49  %   100  %  




Contact:
Astronics Corporation
David C. Burney, 716-805-1599, ext. 159
Chief Financial Officer
Fax: 716-805-1286
[email protected]

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I'll have to try to find an online link to the entire IBD article, but here are some highlights

"Aerospace Suppliers Risingon Carriers Big Spending Plans"

Global competition forcing U.S carriers" to upgrade their fleets to compete for business on International flights."

"Aircraft are being retrofitted with roomier cabins, wider seats, and new entertainment centers-the kind of perks you would find at many non-U.S airlines."

"The trend has been a boon to companies that supply parts and equipment to commercial airlines. The 51 stocks in the group hit a record high last month. Even after last weeks selloff, the group is up 35% for the year."

"Some of the companies double as defense suppliers, so they've also gotten a boost from heightened military spending."

"They also benefit froma couple of trends in the airline industry. One is a rise in orders for new planes, mainly in overseas markets. The other is an uptick in demand for aftermarket parts in the U.S. and elsewhere."

" the International segment is really driving aerospace orders for the whoile segment-especially markets in India, China, and the Middle East."

"The consensus is we'll probably go out to 2011 before this cycle ends."
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No where in the article does IBD mention ATRO, but the last time I looked, IBD had it rated "Best in Group" in all categories. I'll have to check that again and report back.
 

Report to moderator    24.216.78.194  



BigSully1
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    Re: Your Stocks
« Reply #42 on: November 14, 2007, 04:18:17 PM » Quote Modify Remove  

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IBD has ATRO rated 99=A+

and is still rated "Best in Group" in technical, attractiveness, and overall ranks, but has fallen to #4 (out of 50) on the fundamental rank. Still the top stock overall.

Couldn't find the article online.
_________________________________________________________

Vietnam Plans to Buy a Dozen Boeing 787s
Friday November 16, 9:25 am ET  
Vietnam Plans to Order 12 Boeing 787s Amid Growing Demand for Air Travel in Southeast Asia


HANOI, Vietnam (AP) -- Vietnam plans to buy 12 Boeing 787s to meet growing demand for air travel in the booming Southeast Asian country, officials said Friday.
State-owned Vietnam Airlines will purchase four of the planes and a new joint venture called Vietnam Aircraft Leasing Co. will purchase eight, company officials announced at a news conference. They expect to sign the deals soon.

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Vietnam Airlines and Chicago-based Boeing Co. declined to disclose the price of their deal. VALC said in a news release it would pay $1.42 billion for its eight planes.

Many companies in the region are lining up to buy new planes, said Pham Ngoc Minh, vice president of Vietnam Airlines and chairman of VALC. "If we don't make a quick and bold move now, the delivery of the planes would have to be pushed back further," Minh said.

VALC is a consortium of five large state-owned Vietnamese companies, including Vietnam Airlines which is the biggest stakeholder with 23 percent. VALC will lease its 787s to Vietnam Airlines when the planes are delivered in 2014.

Vietnam Airlines now has 46 aircraft in its fleet. Two years ago it said it planned to have 80 planes by 2015 and 110 by 2020.

Given the rapid pace of economic growth in Vietnam, Minh said, the company may have to purchase even more aircraft.

In September, Vietnam Airlines signed a memorandum of understanding with Airbus to buy 10 A350-900 plus 20 smaller A321s.

Communist Vietnam has been implementing free-market reforms, and its economy is now among the fastest growing in the world, increasing by more than 8 percent last year. The country joined the World Trade Organization earlier this year, and foreign investment and tourism are booming.

Vietnam Airlines spokesman Trinh Ngoc Thanh said Vietnam's air transport market has grown an average of 15 percent per year in recent years.

Vietnam Airlines had already previously ordered four 787s in 2005.

To date, Boeing has won more than 700 orders for the 787, while Airbus has received 154 firm orders and 110 nonbinding commitments for the similarly sized A350, which is scheduled to enter service in 2013.

[BigSully1]

new high today.

http://stockcharts.com/h-sc/ui?s=ATRO&p=D&b=5&g=0&id=p59191861522

[mix_master_mike]

Got a sadly really-good stop-buy fill at the open today (~53.00). But it's looking very nice since - we're at new all time highs past the breakout point on good (not great vol). Will add if we make it up through 54.25.