SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal quarter ended July 3, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ________________
Commission file number 0-7087
ASTRONICS CORPORATION
_________________________________________________________________
(Exact Name of Registrant as Specified in Its Charter)
New York 16-0959303
_________________________________________________________________
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
1801 Elmwood Avenue, Buffalo, New York 14207
_________________________________________________________________
(Address of Principal Executive Office) (Zip Code)
716-447-9013
_________________________________________________________________
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(g) of the Act:
$.01 par value Common Stock, $.01 par value Class B Stock
_________________________________________________________________
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ X ] No [ ]
As of July 3, 1999, 4,890,001 shares of $.01 par value common
stock and 687,448 shares of $.01 par value Class B common stock
were outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
____________________
ASTRONICS CORPORATION
Consolidated Balance Sheet
July 3, 1999
With Comparative Figures for December 31, 1998
(Dollars in Thousands)
July 3, 1999 December 31,
(Unaudited) 1998
_____________ ____________
Current Assets:
Cash $ 686 $ 523
Accounts receivable 5,848 5,435
Inventories 6,657 4,935
Prepaid expenses 189 1,229
__________ _________
Total current assets 13,380 12,122
Property, Plant and Equipment 53,677 44,090
Less accumulated depreciation
and amortization 20,647 19,096
__________ _________
Net property, plant and
equipment 33,030 24,994
Unexpended Industrial Revenue
Bond Proceeds 519 4,657
Other Assets 2,031 1,934
__________ _________
$ 48,960 $ 43,707
========== =========
Current Liabilities:
Current maturities of
long-term liabilities $ 847 $ 446
Accounts payable 6,767 2,939
Accrued expenses 1,383 2,085
Income taxes 2 347
__________ _________
Total current liabilities 8,999 5,817
Other Liabilities 15,393 15,160
Shareholders' Equity:
Common stock, $.01 par value
Authorized 10,000,000 shares,
issued 5,239,188 in 1999,
5,225,001 in 1998 52 52
Class B common stock, $.01 par value
Authorized 5,000,000 shares,
issued 687,448 in 1999,
693,660 in 1998 7 7
- 2 -
<PAGE>
(Dollars in Thousands)
July 3, 1999 December 31,
(Unaudited) 1998
_____________ ____________
Additional paid-in capital 2,690 2,681
Retained earnings 22,761 20,932
__________ _________
25,510 23,672
Less shares in Treasury, at cost 942 942
__________ _________
Total shareholders' equity 24,568 22,730
__________ _________
$ 48,960 $ 43,707
========== =========
See notes to financial statements.
- 3 -
<PAGE>
ASTRONICS CORPORATION
Consolidated Statement of Income and Retained Earnings
Period Ended July 3, 1999
With Comparative Figures for 1998
(Dollars in Thousands)
(Unaudited)
SIX MONTHS THREE MONTHS
______________ ______________
1999 1998 1999 1998
____ ____ ____ ____
Net Sales $23,458 $21,353 $11,133 $10,296
Costs and Expenses:
Cost of products sold 16,560 14,953 7,834 7,261
Selling, general and
administrative expenses 4,040 3,765 1,903 1,661
Interest expenses, net of
interest income of $67
in 1999, and $0 in 1998 88 180 17 103
______ ______ ______ ______
Total costs and expenses 20,688 18,898 9,754 9,025
______ ______ ______ ______
Income before taxes 2,770 2,455 1,379 1,271
Provision for income taxes 941 889 483 450
______ ______ ______ ______
Net Income 1,829 1,566 896 821
====== ======
Retained Earnings:
January 1 20,932 16,640
______ ______
July 3 $22,761 $18,206
====== ======
Earnings per share:
Basic $ .33 $ .28 $ .16 $ .14
====== ====== ====== ======
Diluted $ .31 $ .26 $ .15 $ .13
====== ====== ====== ======
See notes to financial statements.
- 4 -
<PAGE>
ASTRONICS CORPORATION
Consolidated Statement of Cash Flows
Six Months Ended July 3, 1999
With Comparative Figures for 1998
(Dollars in Thousands)
(Unaudited)
1999 1998
____ ____
Cash Flows from Operating Activities:
Net income $ 1,829 $ 1,566
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,714 1,388
Provision for doubtful accounts -- 44
Provision for deferred taxes 92 25
Cash flows from changes in
operating assets and liabilities:
Accounts receivable (413) (688)
Inventories (1,722) (216)
Prepaid expenses 1,040 85
Accounts payable 3,828 (280)
Accrued expenses (702) (424)
Income taxes (345) (322)
Deferred compensation 65 61
_______ _______
Net Cash provided by Operating Activities $ 5,386 $ 1,239
_______ _______
Cash Flows from Investing Activities:
Change in other assets (260) (20)
Capital expenditures (9,587) (3,420)
_______ _______
Net Cash used by Investing Activities $(9,847) $(3,440)
_______ ________
Cash Flows from Financing Activities:
New long-term debt 700 2,560
Principal payments on long-term
debt and capital lease obligations (223) (971)
Unexpended industrial revenue
bond proceeds 4,138 --
Proceeds from issuance of stock 9 18
_______ _______
Net Cash provided by Financing Activities $ 4,624 $ 1,607
_______ _______
Net increase (decrease) in
Cash and Cash Equivalents 163 (594)
Cash and Cash Equivalents at
Beginning of Year 523 740
_______ _______
Cash and Cash Equivalents at July 3 $ 686 $ 146
======= =======
Disclosure of cash payments for:
Interest $ 183 $ 171
Income taxes 1,164 1,188
See notes to financial statements.
- 5 -
<PAGE>
ASTRONICS CORPORATION
Notes to Financial Statements
July 3, 1999
1) The accompanying unaudited statements have been prepared in
accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation
have been included. The results of operations for any
interim period are not necessarily indicative of results for
the full year. Operating results for the six-month period
ended July 3, 1999 are not necessarily indicative of the
results that may be expected for the year ended December 31,
1999.
The balance sheet at December 31, 1998 has been derived from
the audited financial statements at that date, but does not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statements.
For further information, refer to the financial statements
and footnotes thereto included in the Company's 1998 annual
report.
2) Inventories are stated at the lower of cost or market, cost
being determined in accordance with the first-in, first-out
method. Inventories are as follows:
(in thousands) July 3, 1999 December 31,
(Unaudited) 1998
_____________ ____________
Finished goods $ 1,789 $ 1,357
Work in progress 672 1,064
Raw material 4,196 2,514
________ ________
$ 6,657 $ 4,935
======== ========
3) Other liabilities consist of the following:
(in thousands) July 3, 1999 December 31,
(Unaudited) 1998
_____________ ____________
Long-Term Debt $ 11,599 $ 11,319
Long-Term Obligations under
Capital Leases 585 789
Deferred Income Taxes 1,162 1,070
Deferred Compensation 2,047 1,982
________ ________
$ 15,393 $ 15,160
======== ========
- 6 -
<PAGE>
ASTRONICS CORPORATION
Notes to Financial Statements (Continued)
July 3, 1999
4) The Company adopted SFAS No. 131, "Disclosures About
Segments of an Enterprise and Related Information," at
December 31, 1998 which changes the way the Company reports
information about its operating segments.
The Company operates in two areas: Aerospace and
Electronics, and Specialty Packaging. Operations in
Aerospace and Electronics involve the design, manufacturing
and marketing of state-of-the-art and advanced technological
components incorporated into functional systems including
instrument panels, photo reproductions and keyboard
technologies. Customers are typically well known companies
in the automotive, aerospace, defense, and electronics
industries worldwide. Operations in Specialty Packaging
involve the design, manufacturing and marketing of folding
paperboard packaging for customers' delivery of their
products and high quality custom imprinting of napkins,
invitation and other paper products. The Company is a
dominant provider of custom folding boxes in chosen markets.
(in thousands) Six Months Three Months
Ended July 3, 1999 Ended July 4, 1998
___________________ __________________
Aerospace Aerospace
and Specialty and Specialty
Electronics Packaging Electronics Packaging
___________ _________ ___________ _________
Sales to external
customers $ 13,075 $ 10,383 $ 11,669 $ 9,684
Income before taxes 1,859 803 1,855 417
Segment assets 20,587 27,247 13,057 21,772
The Aerospace and Electronics segment has moved into a new
80,000 square foot facility which will replace four leased
facilities in its New Hampshire operation. Also, during the
Quarter ended July 3, 1999, they started construction of a
70,000 square foot manufacturing facility in New York.
The segment asset value changed from July 4, 1998 to July 3,
1999 as follows:
(in thousands) Aerospace Specialty
and Electronics Packaging
_______________ _________
July 4, 1998 $ 13,057 $ 21, 772
Land acquisitions 1,100 -
Building construction 6,000 -
Die Cutting equipment - 2,700
Finishing equipment - 1,600
Material processing equipment - 600
Other, net 430 575
________ ________
July 3, 1999 $ 20,587 $ 27,247
- 7 -
<PAGE>
ASTRONICS CORPORATION
Notes to Financial Statements (Continued)
July 3, 1999
A reconciliation of combined income before taxes for the
six-month period is as follows:
(in thousands) Six Months Ended
July 3, 1999 July 4, 1998
_____________ _____________
Income before taxes from segments $2,662 $2,272
Corporate income, net 108 183
______ ______
Income before taxes $2,770 $2,455
====== ======
5) On July 1, 1999, the Company renegotiated its financial
arrangements, including changing financial institutions. As
a result of the changes, the Company's Revolver is a five-
year program with a $12,000,000 line, with interest at the
bank's prime rate, or LIBOR plus 60 basis points. At the end
of five years, the Company may convert the outstanding
balance to a four-year term loan. The Company also changed
the letter of credit arrangement and the remarketing
agreement on the Industrial Revenue Tax-Exempt Bonds issued
through the Business Finance Authority of the State of New
Hampshire. The new letter of credit is 50 basis points vs.
75 basis points under the previous agreement. The Company
also arranged the financing for the Industrial Revenue Tax-
Exempt Bonds to be issued through the County of Erie, State
of New York, in connection with the construction of the
Aerospace and Electronics segment's construction project in
New York. It is anticipated that this will close late in the
Third Quarter. The financial terms are similar to the New
Hampshire transaction.
- 8 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following table sets forth as a percent of net sales certain
items reflected in the financial data and the percentage increase
(decrease) of such items as compared to the prior period.
Percent of Net Sales
Six months Period-to-Period
ended July 3, Increase (Decrease)
_____________________ ___________________
1999 1998 1998-1999
____ ____ _________
Net Sales:
Aerospace and
Electronics 55.7% 54.7% 12.0 %
Specialty
Packaging 44.3 45.3 7.2 %
_____ _____
100.0% 100.0% 9.9 %
Cost of products
sold 70.6 70.0 10.7 %
Selling, general and
administrative
expenses 17.2 17.6 7.3 %
Interest expenses,
net .4 .9 (51.1)%
____ ____
88.2% 88.5% 9.4 %
Income before
provision for
income taxes 11.8% 11.5% 12.8 %
Provision for
taxes 4.0 4.2 5.8 %
____ ____ ____
Net Income 7.8% 7.3% 16.8 %
==== ====
INTRODUCTION Astronics Corporation operates in two
business segments: Aerospace and Electronics;
and Specialty Packaging. The Company changed
the name of its Electronics Systems segment
in 1997 to Aerospace and Electronics to
better reflect its products and market focus.
This business segment designs, manufactures
and markets electroluminescent lamps and
incorporates them into escape path lighting
systems, aircraft cockpit lighting systems,
military aircraft formation lighting, and
ruggedized and avionics keyboards.
On July 1, 1999, the Company established a
$12,000,000 five-year revolving line of
credit at the bank's prime rate or LIBOR plus
- 9 -
<PAGE>
60 basis points. The revolver can be
converted to a four-year term loan at the end
of five years.
The Aerospace and Electronics segment
completed construction on a new 80,000 square
foot building in Lebanon, New Hampshire late
in the Second Quarter and has moved most of
their production into the new facility. This
will allow the Company to consolidate its New
Hampshire operations, currently in four
leased locations, into a single facility.
On March 17, 1999, The Erie County Industrial
Development Agency, Buffalo, NY authorized
the issuance and sale of Tax-Exempt
Industrial Revenue Bonds up to $7,500,000 for
Luminescent Systems, Inc. to acquire land and
construct a new manufacturing facility in
East Aurora, NY. On May 12, 1999, the Company
acquired 14.9 acres of land and has started
construction of a 70,000 square foot facility
on this new property. The Company plans to
close the tax-exempt bond transaction late in
the Third Quarter.
On April 24, 1998, the Company announced that
the United States Air Force (USAF) had
selected its Luminescent Systems Inc.
subsidiary to design, develop and manufacture
night vision lighting modification kits for
the NVIS F-16 program. The contract with the
Air Force is potentially valued in excess of
$50,000,000. The initial award is for 377 F-
16 aircraft to be completed in year 2000 for
a revenue value in excess of $16,000,000. The
USAF exercised its second option on February
10, 1999 for an additional 305 units for
approximately $13,500,000. An additional 474
units, upon exercise of the government's
option, would be manufactured in the
following years.
On December 30, 1998, the Company closed an
Industrial Revenue tax-exempt bond with the
Business Finance Authority of the State of
New Hampshire for $7,250,000. The interest
rate floats with tax exempt funds and is
reset every seven days. These funds are being
used to finance the new Lebanon, New
Hampshire facility and manufacturing
equipment for expanded production needs.
During the Third Quarter of 1998, the New
Hampshire operations of the Aerospace and
Electronics segment received their ISO 9001
certification. In the Third Quarter of 1997,
- 10 -
<PAGE>
the Specialty Packaging segment received its
ISO 9001 certification.
SALES Sales set a new record for Second Quarter,
and for the six-month period ended July 3,
1999. The three-year comparative sales for
the first six months of the year can be seen
in this table:
1999 1998 1997
____ ____ ____
Aerospace and
Electronics $13,075 $11,669 $ 9,782
Specialty
Packaging 10,383 9,684 9,531
______ ______ ______
$23,458 $21,353 $19,313
Sales increased for the Quarter by 8.1
percent in 1999, and 6.3 percent in 1998.
Sales for the first half of 1999 increased
9.9 percent, compared to 10.6 percent in the
first half of 1998. On a trailing twelve
months basis, sales increased 12.0 percent in
1999 and 11.9 percent in 1998.
Sales in the Aerospace and Electronics
business segment increased 12.0 percent in
the first half of 1999, compared to 19.3
percent in 1998, while they were nominally
the same in 1997, based on continuing
operations. Sales in 1999 have mainly
increased in aircraft cockpit lighting
systems. Sales in 1998 were strong in
formation lighting systems, panels for
airplane cockpit systems, and egress lighting
systems for commercial airplanes.
Sales in the Specialty Packaging segment
increased 7.2 percent in the first half of
1999 compared to being nominally (1.6
percent) the same in 1998 and compared to
16.7 percent in 1997. In 1999, sales
increases have come in the medical and
consumer care products areas. In 1998, sales
were affected by customer timing, reflecting
closer management of their inventories. The
Company continues to expand its market share
through focus on customer service with on-
time deliveries, high quality products and
short turnaround times.
BACKLOG The Company's backlog increased 111.9 percent
over the Second Quarter of 1998 to a new
record of $43,226,000. The backlog at July 4,
1998 was $20,401,000. This compares to
$29,887,000 as of December 31, 1998. The
backlog at the end of the Second Quarter of
- 11 -
<PAGE>
1997 was $11,048,000. The backlog is composed
of $40,602,000 in the Aerospace and
Electronics segment and $2,624,000 in the
Specialty Packaging segment.
EXPENSES Cost of products sold increased to 70.6
percent of sales in 1999 compared to 70.0
percent of sales in 1998, and compared to
68.6 percent in 1997. The increased cost in
1999 was experienced in manufacturing
supplies costs and increased depreciation,
both of which increased .7 percent. The
increase in 1998 reflected higher material
and employee costs. The table below shows the
material and employee costs for the past
three years for the six-month period:
1999 1998 1997
____ ____ ____
Material 19.4% 20.4% 19.7%
Employee costs 30.6% 29.9% 28.8%
The employee cost increase reflects
additional personnel supporting the technical
aspects of the businesses. While product
costs increased at a greater rate than sales
in 1999, 10.7 percent compared to a 9.9
percent sales increase, and in 1998, 12.9
percent compared to 10.6 percent increase in
sales, actual Gross Profit dollars increased
to $6,898,000 in 1999, compared to $6,400,000
in 1998, and compared to $6,073,000 in 1997.
Selling, general and administrative expenses,
which tend to be more fixed in nature,
continued to decrease as a percentage of
sales: 17.2 percent of sales in 1999, 17.6
percent of sales in 1998, and 19.8 percent of
sales in 1997. The majority of these costs
are as follows:
1999 1998 1997
____ ____ ____
Employee costs 10.3% 10.6% 10.8%
Marketing costs 2.4% 2.5% 2.8%
Operating
supplies 2.3% 2.6% 2.5%
Operating income was $2,858,000, or 12.2
percent of sales in 1999, $2,635,000, or 12.3
percent of sales in 1998, and $2,248,000, or
11.6 percent of sales in 1997.
INTEREST Interest costs, net, decreased. In 1999, the
net expense was $88,000, or .4 percent of
sales compared to $180,000, or .9 percent of
- 12 -
<PAGE>
sales in 1998, and $235,000 or 1.2 percent of
sales in 1997. In 1999, the Company earned
money on the Unexpended Industrial Revenue
Bonds proceeds while they were held in trust.
The interest costs on the December 1998 bonds
were capitalized as part of the cost of the
facility through the Second Quarter. As the
project is now completed, the interest costs
will be an expense item, starting in the
Third Quarter. Gross interest expense was
$155,000 in 1999, $180,000 in 1998, and
$248,000 in 1997.
SUMMARY As a result of the continuing increases in
sales at a greater rate than the increase of
total expenses, income before taxes increased
to 11.8 percent of sales in 1999, compared to
11.5 percent of sales in 1998, and compared
to 10.4 percent of sales in 1997. The Company
reported income before taxes of $2,770,000 in
1999, compared to $2,455,000 in 1998, and
compared to $2,013,000 in 1997.
TAXES The Company's tax provision takes into
account the federal and state taxes for which
it is liable. The Company records its tax
expense under the FASB 109 guidelines. As of
January 1, 1999, the Company established
Astronics Foreign Sales Corporation to reduce
its tax on sales to international locations.
The 1999 provision for taxes was 4.0 percent
of sales compared to 4.2 percent of sales in
1998, and compared to 4.1 percent of sales in
1997. The 1999 provision for taxes is
$941,000, compared to the 1998 provision for
taxes of $899,000 and compared to the 1997
tax provision of $784,000.
NET INCOME Net income for the First Half of 1999
established a new record: $1,829,000, or
$.31 per diluted share, compared to
$1,566,000, or $.26 per diluted share in
1998, and compared to $1,229,000, or $.21 per
diluted share in 1997.
LIQUIDITY Cash flow from operating activities was
$5,386,000 in 1999, compared to $1,239,000 in
1998, and compared to $1,748,000 in 1997.
This large increase reflects special terms on
payment for Die Cutting equipment that
requires final payment in January 2000, for
$2,400,000, and for delayed payment terms on
F-16 inventory component purchases of
approximately $800,000. These items account
for the majority of the change in increased
accounts payable. The cash generation was
lower in 1998 as the Company invested in
- 13 -
<PAGE>
receivables and inventory. The Company
invested $9,587,000 in its capital investment
program in the First Half of 1999, mainly
land, building construction and specific
manufacturing equipment, compared to
$3,420,000 in new equipment in 1998, and
compared to $1,882,000 for equipment in 1997.
The Company borrowed $700,000 from its
revolving line of credit in 1999, compared to
$2,560,000 in 1998. The Company reduced its
indebtedness in 1999 by $233,000, compared to
$971,000 in 1998. In May 1998, the Company
made the final installment on a five-year
term loan.
During the first six months of 1999, the
Company withdrew $4,138,000 of unexpended
Industrial Revenue Bonds funds and utilized
them towards the New Hampshire building
construction.
The Company has a $12,000,000 revolving line
of credit available for additional working
capital needs, of which it had utilized
$4,500,000 at July 3, 1999, compared to
$4,200,000 at the end of the Second Quarter
of 1998, and compared to $3,450,000 at the
end of the Second Quarter of 1997. The
Company feels that its beginning cash
balance, the cash flow from internal
operations and the available balance of the
revolving line of credit are adequate to meet
the Company's operational and investment
plans for 1999.
COMMITMENTS The Company has outstanding commitments for
capital investments of approximately
$4,800,000 at July 3, 1999, which is mainly
the construction of a new facility in New
York, compared to $2,800,000 at July 4, 1998,
and compared to $4,000,000 at June 28, 1997.
During the Second Quarter of 1997, the
Company repurchased its shares of common
stock owned by ATRO Companies Profit
Sharing/401(k) Plan for $532,000. The Company
has commitments for items that it purchases
in the normal ongoing affairs of the
business. The Company is not aware of any
obligations in excess of normal market
conditions, nor of any long-term commitments
that would affect its financial condition.
YEAR 2000 The Company employs several different
computer systems for financial, engineering,
manufacturing and administrative purposes.
The Company purchases these systems, both
- 14 -
<PAGE>
hardware and software. Therefore, it does not
have programmers writing code internally.
During 1998 and 1997, the Company installed
upgrades to some of its systems that are Year
2000 compliant and switched software for
other functions that are Year 2000 compliant.
All operating systems are now Year 2000
compliant, except for the Human Resources
system and a voice mail system. The Company
is currently switching to a new Payroll/Human
Resources system, which should be operational
by the end of the Third Quarter. The software
for the voice mail system is in house,
waiting to be installed.
The Company has tested various systems and
will continue to test applications it runs,
as well as those it interfaces with including
customers, vendors, and other outside
sources. The Company believes it is ready for
Year 2000 except for the above-mentioned
programs. The total invested for software
upgrades to date is approximately $150,000
and the Company's budget for additional
upgrades and new software in 1999 is
approximately $40,000.
The Company has interfaced with the suppliers
of production, engineering and administrative
equipment that have embedded chips in their
products. The Company is seeking full
assurances that these are either Year 2000
compliant, have no date sensitivity, or that
necessary upgrades will be available by
September 30, 1999.
The major risk that the Company faces is in
its suppliers of utilities, mainly electric,
natural gas, and telecommunication. These
vendors have stated that they have tested
their systems and that they are compliant.
They have stated that they do not anticipate
any problems. Another area of risk is that
several key pieces of manufacturing equipment
are made in Europe, where companies
reportedly are slowly addressing the Year
2000 issues. The Company plans to have
assurance from these suppliers that they have
adequate parts in U.S.A. warehouses with Year
2000 compliant delivery systems. If
assurances are not adequate, the Company will
increase its inventory of vital spare parts.
The Company has no other specific contingency
plans.
- 15 -
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Securities Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
Exhibit 11. Computation of Per Share Earnings.
- 16 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
DATED: August 16, 1999
ASTRONICS CORPORATION
____________________________________
/S/ John M. Yessa
____________________________________
(Signature)
John M. Yessa
Vice President-Finance and Treasurer
- 17 -
<PAGE>
EXHIBIT 11
COMPUTATION OF PER SHARE EARNINGS
(in thousands, except for
per share data)
Quarter Ended July 3
1999 1998
____ ____
Net income $ 1,829 $ 1,566
====== ======
Basic earnings per share weighted
average shares 5,572 5,532
Net effect of dilutive stock options 386 383
______ ______
Diluted earnings per share weighted
average shares 5,958 5,915
====== ======
Basic earnings per share $ .33 $ .28
====== ======
Diluted earnings per share $ .31 $ .26
====== ======
- 18 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUL-03-1999
<CASH> 686
<SECURITIES> 0
<RECEIVABLES> 6,028
<ALLOWANCES> 180
<INVENTORY> 6,657
<CURRENT-ASSETS> 13,380
<PP&E> 53,677
<DEPRECIATION> 20,647
<TOTAL-ASSETS> 48,960
<CURRENT-LIABILITIES> 8,999
<BONDS> 0
0
0
<COMMON> 59
<OTHER-SE> 24,509
<TOTAL-LIABILITY-AND-EQUITY> 48,960
<SALES> 23,458
<TOTAL-REVENUES> 23,458
<CGS> 16,560
<TOTAL-COSTS> 20,688
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 88
<INCOME-PRETAX> 2,770
<INCOME-TAX> 941
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,829
<EPS-BASIC> .33
<EPS-DILUTED> .31
</TABLE>
