Safe Harbor Statement

Transcription

1 B. Riley & Co. 8 th Annual Las Vegas Investor Conference Peter Gundermann, President & CEO March 13, 2007 Safe Harbor Statement These slides contain (and the accompanying oral discussion will contain) forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company s customers and suppliers, competitor responses to the Company s products and services, the overall market acceptance of such products and services, the effect of the Company s strategy and other factors disclosed in the Company s periodic reports filed with the Securities and Exchange Commission. Consequently such forward looking statements should be regarded as the Company s current plans, estimates and beliefs. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 1

2 Astronics Corporation Astronics Corporation is a leader in advanced, highperformance lighting and electrical distribution systems for the global aerospace industry. Our strategy for growth is to expand the value and content we provide to various aircraft platforms through product development and acquisition NASDAQ: ATRO Market capitalization (3/8/07) $142.7 million Total shares out (incl. CL B) 8.0 million 52-week range $ Recent price (3/8/07) $17.79 Avg. daily trading volume (3 mos) 16,058 Debt to total cap 1 : 2.7 Astronics 2006 Sales By Market By Product Other 1% Military 23% Airframe Power 15% Other 1% Cockpit Lighting 28% Commercial Transport 55% Business Jet 21% Cabin Electronics 41% External Lighting 7% Cabin Lighting 8% 2006 Sales: $110.8 million 2

3 Continued Growth Revenue* ($ in millions) $110.8 $74.4 $52.6 $42.6 $42.9 $33.2 $34.7 $19.7 $20.2 $23.5 $24.8 $9.1 $ * Excludes discontinued operations Aerospace Industry Outlook Commercial Transport segment continues to recover Passenger traffic is strong worldwide Production rates are up at Boeing & Airbus Asian airlines, in particular, are strong Business and General Aviation are strong New technologies are driving demand High expectations exist for Very Light Jet category Defense spending continues at healthy and stable levels Aircraft manufacturers continue to streamline supply chains 3

4 Expanded Ship Set Content Content Value on New Generation Aircraft Platforms vs. Past Generations Current Generation Aircraft: CH-47, F/A-18, AH-64, F-15, F-16, Cessna Citations Typical content value: $2,000 - $5,000 New Generation Aircraft: V-22, F-35 (Joint Strike Fighter JSF), Cessna Mustang, Embraer Phenom 100, Eclipse, Airbus A380 Expanded content value: $10,000 - $50,000 Cockpit Lighting Systems Complete supply of components and subsystems: Integrally illuminated display panels Flood lights, Map lights Caution/indicator panels Ambient light sensors Power supplies Dimmer units Avionics keyboards Provide complete cockpit systems integration Major Competitors: IDD (Zodiac), Korry Electronics (Esterline) 4

5 Exterior Lighting Systems Formation lights: Dominant position Position, anti-collision, landing/taxi, logo, wing de-ice, aerial refueling, approach Developed breakthrough technology: HID and LED Provider of full external lighting system for Joint Strike Fighter, Eclipse 500, Cessna Mustang, Cessna Skyhawk/Skylane and Stationair, Hawker Horizon Major Competitors: Goodrich Corp. Hella division Honeywell International Grimes division Cabin Lighting Systems Cabin completes entire lighting system offering Subsystems: Emergency egress lighting systems Reading lights Passenger signage General area lighting systems Customers include airlines worldwide Major Competitors: Page Aerospace (ABN AMRO); Diehl Luftfahrt EleKtronik GmbH (Diehl/Thales) 5

6 Cabin Electronics Cabin Power and In-Flight Entertainment Leading provider of in-seat cabin power to commercial airlines EmPower DC EmPower AC EmPower Fusion Integration of in-seat power for in-flight entertainment (IFE) systems and personal electronic devices (PEDs) used by passengers Recent FAA certification 150 watt in-seat power supply for the Boeing Major Competitors: KID (Airbus) Airframe Power and Control Integrated line of primary power generation, intelligent power distribution and secondary power supplies capable of outfitting an entire aircraft Major Competitors: Hamilton Sundstrand, Crane Aerospace, Zodiak, Honeywell 6

7 New Aircraft Platforms Product successfully incorporated on premier new, innovative aircraft platforms F-35 Joint Strike Fighter V-22 Osprey Tactical Tomahawk Cessna Mustang Embraer Phenom 100 Eclipse 500 In-Seat Power for Airline Passengers Airbus A380 Mix of both high and low production volume aircraft platforms Entry Level Business Jet Cessna Mustang First aircraft delivered November 2006 Astronics content: Exterior and cockpit lighting system Embraer Phenom 100 Deliveries expected to begin mid-2008 Astronics content: Exterior lighting system, flood lighting and cockpit lighting controllers Piaggio Aero s P180 Avanti II FAA certification received March 2006 Astronics content: Complete suite of integrated cockpit panel assemblies and lighting controllers Eclipse 500 First aircraft delivered December 2006 Reported order book: 2,500 firm orders Astronics content: Cockpit lighting, external lighting and electronic power distribution system 7

8 Military Joint Strike Fighter Next generation fighter/attack aircraft weapon system Astronics first award for comprehensive exterior lighting system Employs high reliability LED and HID technology V-22 Osprey Tilt-rotor aircraft Speed and range of an airplane Vertical agility or a helicopter Astronics content: lighted cockpit panels, emergency egress lighting systems, avionics keyboards and external formation lights Tactical Tomahawk Next generation land attack cruise missile Astronics content: power conditioning unit for the missile s electrical system Commercial In-Seat Power System Contracts for stand-alone systems with commercial airlines worldwide, such as: Air Canada Virgin Atlantic Airways Air China Limited China Eastern Airlines Corp. Integrated systems that also power In-Flight Entertainment (IFE) systems Gaining momentum for weight and efficiency reasons Major supplier for Panasonic Avionics Corp. Airbus A380 Astronics content: Cabin emergency egress lighting system is standard equipment; in-seat power systems on board through IFE system providers 8

9 Financial Highlights Improving Net Income ($ in millions) $5.7 $4.0 $2.2 $0.8 ($0.7)

10 Balance Sheet Position ($ in millions) $9 million of long- term debt is low interest industrial revenue bonds amortized over 20 years $15.5 $13.1 $12.5 $11.2 $18.2 $18.4 $20 million line of credit (bank prime minus.25 to 0 basis points or LIBOR plus 87.5 to 175 basis points). $8.1 million outstanding as of 12/31/06 $ $ $ $ $ $ Shareholders Equity Funded Debt Growth Trends Backlog Trend ($ in millions) Book to Bill Ratio $96.1 $ $

11 Competitive Advantage Size and independence Access to capital Rapid decision making Long-term perspective Experienced, progressive management Calculated risk takers for development project opportunities Early 2005 acquisition logically expanded lighting product line with power generation, distribution and control Future Outlook Growth Drivers: Strong aerospace industry growth Increased sophistication and value of products Solid content on premier aircraft of the future Earnings Drivers: Higher sales and operating leverage Full production levels improves efficiency Continuous improvement 11

12 Investment Considerations Expanded product line and global opportunities Anticipated 2007 revenue growth: 20 25% Backlog of $99 million at December 31, 2006 Significant investment in engineering and development with several major aircraft programs over the last three years Earnings drivers: 5 to 10x higher ship-set content Increased aircraft production levels Continuous improvements in production efficiency B. Riley & Co. 8 th Annual Las Vegas Investor Conference Peter Gundermann, President & CEO March 13,