Astronics (ATRO)

Debbie Pawlowski Investor Relations
Peter Gundermann Chairman, President and Chief Executive Officer
David Burney Chief Financial Officer
Austin Moeller Canaccord Genuity
Doug Ryan Colliers
Jon Tanwanteng CJS Securities
Call transcript
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Greetings. Welcome to the Astronics Corporation Fourth Quarter Fiscal Year 2020 Financial Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I would now turn the conference over to your host, Debbie Pawlowski, Investor Relations for Astronics Corporation.

You may begin.

Debbie Pawlowski

morning good and Shamali everyone. Thanks, your We in and interest today certainly appreciate Astronics. your time

on Peter Financial Joining President call the me are and Burney, and Gundermann, David our Chief Officer. CEO Chairman, our

copy of results can financial released find You should on was have the quarter website year that not, and If morning. our fourth this them XXXX full you astronics.com. a at

as apply stated and discussion on make to and materially are earnings as subject our and documents provided Commission. what that is actual mention that risks statements forward-looking well filed me sec.gov. These the session. are some These events could These we Q&A future found other other the with may statements here with as that differ Exchange can documents to well Securities uncertainties this as Let during factors website uncertainties as and cause the formal be other to in during at risks results from well as or today. release factors

some in we believe be will During today’s these that also useful We measures. non-GAAP our will financial performance. evaluating call, discuss

results should accordance the not this for of information with isolation You or substitute a GAAP. presentation in as additional consider in

of Peter? reconciliations We have Pete turn me in release. GAAP comparable With let begin. tables measures measures provided non-GAAP that with the that, today’s to accompany it to over

Peter Gundermann

you tuning in. for Thank everybody. morning good and Debbie Thanks,

XXXX XXXX agenda summarize review. today of fourth and in rough Our will to be quarter our

shoots and seeing major year heavily kind the And why this workplace. they of time the They here I our a start of We a and we recovery XXXX is to goals line and And time going behind green that and as And have job. have brief is unexpected outlook Q&A employees A now. of a a are the safety bit affected want chosen being status, are for well course, are as our pandemic, this premise will we this through protection and our will goes this done end. being and established talking we difficult progress early premise we good our for our with spend that very to are the of about we we’re under are for of talk our company. the is way are in review first things call solid our our days being increasingly through and about attention though. lot are to quite our are, of of of the done aware of that everybody us. of financial the COVID sight in turn credit opinion really the period including remind let and worked our at almost first, increasingly who arrangements. that our but of what confident on And by bank foremost, the a very is company still as we worst working me a phenomenal pandemic we But made, circumstances. markets to employees we

And for second in have circumstances, important Our at They some trusted us. memory distant with point us is we the pandemic, keep to placed have up speed some is those past. Because which our difficult this future requirements important stay hope beyond expectations. to they on pretty are objective is that the a our our objective customers to programs. with in meeting even the

our million end, And at during having in the to year importantly, success pandemic of at reported third position $XXX afterwards. million. that just that financial income as or for we such, So for best definitely our a more are success looking not realize requirement is optimized statement, the we company this $XXX to, can, goal as we revenue and, and survival

of recovery and the at but have we to larger a will million company, as comes grow are our $XXX us. our expectation We surviving infrastructure revenue is base that

that our very is sit important we from the perspective is as monitor. of XXXX, That’s thing demand, in we today February about to say are what all all and watch, So, to important looking that it to thing that’s the here at that’s closely.

see more that we happening horizon the stretch, the discussion woods in quite many good first worst time bad. first of my cautiously we’re talk demand. out what’s behind perspective part to is of about news on again, the a with is bit So optimistic many, the here, months are we not want any by I than And us. though for our And for the

rich flying been The vaccines take the and through our a stepping transport reminder, see of is the see. world, introduced pandemic good at what which XXXX Airbus observation, us I primarily suppose, the And increase XX% successful, for But came since as that the in volume again, a number in this last there airlines commercial somewhat is obvious Boeing the industry that talked, it’s need especially news of everybody up vaccines really And core we our but of second high an in market expectation setting as people should again. we industry. be and, an terms future. to the have is And those markets, efficacy we market. the fly the good airplanes. that’s traffic, in very and half safe of for market and So our for the for before company hold, that COVID in obvious, point. here And to from

an to Boeing The to our last this it up XXX XXXX, Astronics. configured, follows per pandemic, the and, and burn be an are on of The our anybody that they year into Boeing And production their production expect who is to to down much piece to our – or is it’s not industry, of in a recertified. half built. on aircraft production before as important impact good our the program about the in are rates from XXXX that $XXX,XXX are is first talked, that that, expect a off accumulated And to a impact planning in again, single half the we the is production financials. news that that the second do is meaningful XX% when ago. building largest going since the if volume entire pandemic so. we across program programs to minimum hits our We increased increase anticipated company, Back most low should $XX,XXX again at has news for XXXX, inventory was before year rate rather have MAX – one But how which pretty production a MAX across it been that general of of recertification second in we here will substantially jet aircraft going can market obvious from larger planning the of start company. Switching our total OEMs provide XXX aviation shut depending XXXX. rates was the the OEMs that major at almost business

in saying heels So, are in of production they line fit. again our XXXX. the Most in of increase And the most rates GA rates pandemic are most market business publicly the cut going to on is XXXX.

to are rates important really us. production So

is military for of third the government The test of part our includes our us, area, our and of was almost market and core final business. defense about which, volume pre-pandemic. aircraft That XX% and all

a to obviously going those We been prospects XXXX. short be changes to in expect lot defense of We this in DC. our expect Washington affect term. strong area in There the through do that and spending realm has will government changes in continue the not

us bookings? and QX $XXX So QX million, that’s were XX% how over over bookings is was in all up out this playing QX XX% up Our QX. current for

from right in QX again, So of the the $XXX in $XX But $XXX $XXX where QX or million woods, $XX Aerospace a out is million, at we average pre-pandemic the going of million is look of million, certainly million XXXX. million, bookings at trend of direction. again, when $XXX the patterns, in cry were were not you the through announced through over transit customer, Rapid QX on will Atlanta for that’s be XX%. of our a year a heels That Rail, years. of a the XXX% the over executing Test quarter, a the Authority up Stadler bookings test $XX which million couple program had about previously up fourth we Transit quarter next ago. great was far program,

of little the on So, days earlier well-publicized line the two-thirds is a we primarily rates, focus commercial X relatively easy in fit, to because I But watching transports. being keep is The what last and terms fit Line qualitatively, is get and production bit handle to in tab XX%, the or is these months. volume are. over airline real Boeing our I about that that for And a aftermarket. noticed that is aftermarket. again XX% of on about are a increase of one-third of we tell can at talked harder aftermarket you are general X significant today the activity a plans Airbus. what have published

can that that picked rather observers In went to aftermarket. Europe more exist necessarily potential with narrow-body travel. is pandemic by lot rather wide-body exhibiting months, We We because in from has And So with industry encouraged a of quarantine not lags more than domestic aircraft up U.S. perspective are also airline than associated activity, requirements simply more today. the shell translating more pickup be and the the yet. aircraft in industry of throughout is we seem into while travel concur that, more and and and with There program agree but the that the significantly. travel restrictions travel the and there, activity China correlated activity with hold terms that’s activity closely airlines international Europe recent and quoting the activity took collapsed. our health, orders most closely as into basically a from can

our in at XX% QX to QX. million, not QX now, through to results So, we talked fourth expense, X%, pandemic. Shipments, revenue took quarter those again the on significantly $XX of million from but large $X.X a in pandemics tax operations Cash or negative my Adjusted let us down EBITDA quarter X.X%. to allowed GAAP net year-over-year, income will in down just briefly, depressed, have moments in feel X% situation XX% income about bottomed trends We very to sequentially. reductions out in QX. friend, on have early was financials, I fourth minute. is the our switching little a income reasonable up Dave, booking explain go have to over and which I’m QX of million. rebounded but of going statement. I $X.X know to significant in ago bit, least the QX a million for again, cost or just very given them we $XXX due a from the

business, in positive which down years spending couple $XXX did down segment, $XXX the in For of our continued from down million, a excluding and income board. of XXXX. XXXX year, down of the XX% sales $XXX sales was our would loss in small some was the across strength net and transit up held negative market was was from XXXX, was benefiting me, GAAP $XX plus million test On XXXX. of for government of million the do again, $XX.X from from $XXX XXXX. million, Tests, million, again, $XXX $XX operations even down over million XXXX the XX% down $XX $XX.X – significantly Aerospace more that significantly we from from from million, in EBITDA we million, million. sold drop a was excuse Adjusted ago, in thought we we our million cash $XX X entire semiconductor XXXX and The year, in in which acquisitions million

best riddance. the can summary XXXX, thing brief about good with is I that So say

I We to will turn to on. status over are and happy arrangements. Dave? our Dave banking now the to talk it be balance about sheet with our moving

David Burney

Thanks, Pete.

full and Just bit a I tax expense want to the little it. you the is look quarter if at fourth crazy explanation year say of a quick

required was tax quarter we’re allowance company to a valuation driver company’s tax $XX forecast. deferred Well, than more assets. be was interpretation on GAAP, to to of be given to tax into of past results for deferred is the tax last historical X-year X a million GAAP a The profit valuation years, and non-cash any in realizability are looks the rather when net the to we weighted realizability allowance tax calls guidance key loss If question The future a loss more to assets. $XX.X And by of against the Our that sheet. typically consideration against typically deferred it our assets million, comes the are those abide balance placed cumulative the for loss that requires the has may deferred assessing heavily. future cumulative expectations. record required the assets, sitting

cash be But cash record company X-year a a because on taxes. deferred see has otherwise return the this profitable tax the that some minimal, there than to rate I now net tax on forecasting it’s say we of no X to future limited important that effective primarily years, So we’ll carry-back cumulative NOL past cash impact a to would this the will over required offset we XXXX may lower as assets. its state a asset a expect no to regarding cumulative This expected be reserve Once deferred future. impact taxes reversed. against income, loss Again, what generally refunds. thing reserve. in that is gets in be tax reserve tax the is by or some them for

involved in Now caused Then by of has And sales having lot late year painful quick quarter $XXX the entering be where, $XXX extremely expecting the a our and just the question. for budget commended. $XXX global difficult quarter went X just action million hit We over in of we to unfortunately from a were million the should from sales. XXXX our and change pandemic, no We the best could adjust sacrifice and took wall aerospace quarter months, a as run-rate our third sudden to moves there is went quarterly XXXX in of from first to companies. been in employees, world. fourth in This most these they in million Astronics XXXX.

headcount. While savings our our of cost had we’re reducing structure, to able to much come lower by the cost unfortunately,

freezing other contributions adjustments, Additional cost plans eliminating retirement reductions of to company were result pay cutbacks. eliminating a bonuses, spending and

we’re million estimated be to is operating, As breakeven $XXX currently point our quarterly sales. around GAAP in

spending Additionally, critical all stock are our first CapEx by These to the halted discretionary weathering we’re we through cutting back the programs in and that going reduced buyback storm now. quarter.

with important work this The piece through to us required bank very group. our second puzzle

and we have supportive our expect to Because debt of the more support banks replace of We’re facility our of these amend to covenants. work ratio team with maximum remain able temporarily our very appropriate with our it compliant and circumstances. to suspend our to leverage credit given moves and the with covenants, banks, been

For million had And of the which reduce fourth about our million, the good of finally quarters able flow first note, quarter, positive inventory with cash were the year from to the $XX.X positive of positive on operations we year. change $X.X a flow operations from several $X.X quarter and ended during a by million. a from is the we cash

to is It covenant recap that a first, was We there and amended to the February we to waived are, as. The of EBITDA, begins adjusted amended in the suspension backs thereafter. And note as are maximum it add then until a early Xx matures key in $XX.X third the of typically ultimately press acquirer due were it’s fourth financial Just they period the further defined in expenses our in and X.Xx the business revolving of our the XXXX, quarter declining we EBITDA we this credit XXXX at about cash X.Xx starting non-cash facility. X.Xx $XXX to notified X.XXx to refer phasing XXXX, allows May. recently Also, then credit in facility. quarter, us that it for as agreement on the adjusted million decreasing note, covenants then calculated in leverage shown that flows. as important statement items should semiconductor release, to million. It’s agreement, credit an of as in defined mentioned that earn-out to have – non-cash QX of I it’s in of that by the

share period, confirm earn-out restriction except plus the will to defined coverage the temporary record in to the interest the adjusted cash during liquidity Xx. third are roughly after receive maintain $XXX minimum include of balance million. expense, purposes. covenant quarter calculations the of to first our the liquidity X.XXx dividends. first XX/XX/XX, for XX/XX/XX, $XX this agreement XXXX, is ratio suspension covenants revolver. coverage of our likely the the covenants on we we Through coverage for Liquidity is million EBITDA as count undrawn had of quarter. of toward reviewing two a expect XXXX, and At interest cash million the X.Xx. and we The minimum We’re calculation required under acquisitions, on a cushion. a we $XXX of required the Other or Through interest minimum the a are key quarter ratio. are There quarter XXXX, financial we interest repurchases only At an was liquidity ratio which and second maintain

our debt with LIBOR basis X.XX%. floor points. our Regarding the basis at pricing is LIBOR The is formula current leverage, XXX at a grid, plus priced points of XXX current it’s

covenants of Our outstanding the from $XXX.X year-end third end million up is end which but quarter at $XX million $XX.X net $XXX $XXX.X debt was was what from the of basis, with On compared million. XXXX. a at down net debt of slightly million balance consider, debt XXXX, our million, on a revolver decrease the the

you. to with we to to As In I to $X.X that’s on compared $XX bit have me, CapEx And it $XX.X million XXXX. previously, well. in $XX in and million million CapEx for spend spending spent slowdown as the we mentioned a plan Pete. million business XXXX, we XXXX, cut over in a Back response CapEx for

Peter Gundermann


to We $XXX unfortunately light provide the of anything general, around timed XXXX up, the expect kind than and a half are first orders million. the we half to This QX half any especially implies wrap second a to it’s year. how we lot half just unable in quality more of look wise the stronger with of in revenues guidance, our to QX look half we observation of for the But to second looking obviously that the nature of at XXXX. the like of XXXX, release the else. So XXXX second are like be said likely ahead are still first demand substantially expect to

Dave is issue drive that for real the what and the wrinkle the earn-out The in shipments second total half will of comes which back a about half other reviewing back it again will we value, $XX.X the demand first second are and to and potential the be in talked the year Bookings first million for in bookings. half today half. to comes

is So, we a of by to hold likely what very we paying we report which grip is should the company. shaking out May, are to a the close how and first on is us again, currently. for half And half second the should be the beginning happening what time attention have good as

I that remarks. ends think our prepared

want we So line, up question entertain open now. [indiscernible], you will the those to if


Sure. our first with Beach proceed with Capital. Point [indiscernible] from is your [Operator question. Instructions] Please And question

Unidentified Analyst

Hi, guys. Congrats on well the quarter. Definitely holding there. in

little portion sales aerospace of Just are in least? wondering, commercial any seeing you and talk of what can that was whether there activity at about pre-COVID retrofit, a you bit increased terms

Peter Gundermann

in a airline – Boeing, the entertainment some to as ship the know it’s we in customers, both. in-flight of little to know retrofit, say but hard provide opposed we with to world the our especially number certainty. biggest We have The obviously what Sure.

their retrofit. We Panasonic it to Airbus or line amount of of we for Panasonic. out. plays but has that fit line of know use A goes fair for also So aircraft, of fit, that rule don’t always to one-third commercial aftermarket. And Boeing ours. two-thirds thumb we to a very is the business panel large traditionally been general, the split say MROs customer But goes our went to that in traditional product of how was roughly XX% that and ship was

data is electrical XX% either access entertainment significant of related, or points that. most like loaders and things our for of wireless total, connectivity which equipment are or passengers aftermarket our approximately sales power or So, in-flight

or IFE, aftermarket are it’s the crawls entertainment, in-flight lot be So, closely the for which passengers, as companies, the our passengers. to the the linked related pandemic. an is place of interesting airlines the offer initiatives to the airlines flight of kind or number dependent of not their amenity or number really on of want upgrading say, of of number even Unlike flying to what out their service hours to passengers. industry of landings number a flights It’s

necessarily the balance along are of reasonable mind likely ago the answer of of second so We kind questions is this after of in know. airlines been last over industry and industry one sales half. or it’s maybe don’t time to as the – with that shock XX the say sheets? It’s but let’s experiment we an people’s when haven’t kind it you their was running the recovers is we Are repair And here. in thing happened a ahead years probably And almost or really the it on that this see about aftermarket it is X increase months. through asked, went

an pull airlines the when has that buy trials for X get comfortable forth airline And last triggers participate been with new – in and they and of and in that in to you the And narrow-body alternatives programs. a what position increased airline. running are options by we It’s by the is side. even are those typically and increased tried over which of gives back traffic, different significant get at increase activity do So configurations equipment, are an X during on they it. a we we give wants – and to monologue, There to lot guidance attention. a months, I is of order an experiment and don’t domestically, all the the anticipating the of definitely least my surprised which I typically terms can which And is on reason best are that us aftermarket to here. forth lot or order the kind believe back noticing flight before in

question. you asked short a So

I long a got You I answered most answer. of hope it.

Unidentified Analyst

Great. Thanks.


Moeller question next from proceed with Austin Genuity. with Please our Canaccord And is your question.

Austin Moeller

is This Ken. Austin on Pete. Hi, for

Peter Gundermann


Austin Moeller


start, can build of grow And you So expect for XXX the you rate second half currently in comment at where year? the on you’re just of that to now to what MAX? the sort to

Peter Gundermann

down zero. a been while. shut We’ve approximately at for We’re

we easy Boeing an ships And one. that’s say, ago couple for They again, us were I running production. a to year delivering, So want XX a more shut down when months. plus kept month a

that are that inventory small, they number they course – XX, So some to shipsets. our year. don’t very the over they the is building of and maybe I plan are – through up XX know expectation ships, year. are XX, at middle now. the accumulated And know I of they we what they near don’t know they ramp will what starting choose the And of specifically accumulated

running say So we’ll the they for to around the but delivering the exact want they the know XX at start month schedule, be beginning don’t of of ships of year And in the I middle the second a at half year. XXXX.

So get they that our is it. there and demand hope supports that

Austin Moeller

great. Okay, Yes.

you any contract? what on jet like to on uptake business switch Astronics’ here. Can updates gears the Collins Just work? the looks And provide

Peter Gundermann

most business is jet Well, line GA our business fit. of Sure. or

customer Textron Dassault, that ours. of ours, a manufacturers. at much best the to at everybody. at Bombardier, the is both predict production a Gulfstream, a to of mean, pretty big I So Honda customer is Cessna of customer, obviously and Bell. is way major kind expectations Pilatus is look

something for little point. with rates, business at antenna see expect business you our satellite working what this can system. and few And – you those the over if more we’re an a few larger The and a jet been collectively, aftermarket provide So program it last This at to line had is bit work. connectivity to is look unique. Collins out program fit at connectivity is That’s jets. we of providing an swings years, happen we’ve

we’re really an new product sales Our And We contribution is – it’s in to system. Collins or offering. big Collins that field is can’t service not a Collins involved initiative. providing antenna relatively

the So get it. it’s to that. for and estimate there hard think very the market for a is product But that being we feedback us they received, well is that right is

order are did But for it announce time. that, to going relatively or hunches in So what exactly the that out demand consumed some our sales we prospects stretch period we be could of be Collins is indications could demand relatively quickly and depending are. Again, don’t that quickly. know consumed our on

optimistic stragglers. Those we’re whom before in about company we good old it. about three pretty following So of the our talked know days, the that pandemic have

Our stragglers. We thought We in coming lot did it. to working antenna good out. behold, one company fix of XXXX was restructuring were and really of the it’s lo a shape we into and

So pretty are we excited about that.

Austin Moeller

in the antenna looks If definitely to very for and the Well, XXXX? significant XXXX the of either Great. that’s about Stingray contract jet business good was optimistic revenues side MQ-XX or and business. we think defense how now,

Peter Gundermann

franchise me of in call smaller not cryptic. a a for be And But electrical I on for and a bit to but – we I’m say power program, itself have aircraft. been It’s going working critical critical a flight let this. little it

and announcing with program Cessna been intelligent aircraft. very the FLRAA have a developing very really think system that the Denali, we we’re Pilatus build PC-XX. is – for programs, has FARA small the And various Bell, customers capable, that significant We advantages

our emerging jets, whole not the and conventional is you’re While asking aircraft turbo only and one around also turning world in bunch this it’s emerging And be we settings. flying the in aircraft, – pilotless that of it’s one to. might franchise very, effort aircraft, people very electric is an in industry, well commuter potentially certainly, the like aircraft, helicopters also perhaps it’s small think sense, unmanned it’s of different adapted about, things, some into but the a

So step direction. that in MQ-XX a is It’s that an example.

can future, exciting that although But making areas of on. we big-blue to XXXX it’s of the We’re out, indication necessarily not like that. or and it’s at we that value it’s or content go, about anything an shipset this allowed are we But year. where an of not for progress focus every could kind ocean talk point business think we really one look when

Austin Moeller

either Awesome. air definitely interesting unmanned or mobility opportunity systems up a urban coming there. very Yes, for

rate question X Just in what now of you for the the level shipping and expect do month are the last at stay you at to XXX a me the XXXX? through

Peter Gundermann


We’re – I the about most our we got to don’t – think this. – XXX on product of

little a of but it tail Boeing, of for most the those various of have that is goes most majority bit and specific companies direct through product to companies, We other numbers. that or goes

and So ship production we’re that faster planned going to it’s Boeing’s basically reasonable not not to rate think slower. at

per So rate, the there to their stated with and month be or goal time frame is to we be X somewhere expect them. in

Austin Moeller

so Okay, it. the great. Appreciate Thanks much color. for

Peter Gundermann

you. Thank

Debbie Pawlowski



I Doug next our from Please from Ryan sorry. am Colliers. question. question with your is proceed And

Doug Ryan

Thank you.

So, you bit wins delivery talk – and belt, York Atlanta. couple a on got a can I good mean, I of under the the mean What New about your talk maybe side? Pete, little you’ve those transit contracts.

look have So door pipeline two opened opportunity? the other And the like? for these some what does

Peter Gundermann

significant the look potential the cities exciting just you – country, the wins so our but as new. ocean, not RXXX And us. world our MARTA only our from It’s compared ago, test fit Sure. are we to has at think – you York is integrated. really, more that’s about Trains is of years the won think before. the becoming now, And here. from technologies is – relatively a world, this the of for state that the around perspective. all really transit know Those demonstrate potential are initiative market some systems. what something – they is that of you and we And City the for basically, think This program. run of our blue X.X New increasingly to recently we universe the transit And the it’s speak. we an I major the program called another digital increasingly industry good and And applicability do perspective,

in So is our train to major only we various various – ones maybe get with There world. manufacturers. involved programs the strategy with X are

And and we’re Our kind by the companies. quickly we it fast the in that may Stadler. obviously, may it lost to New municipalities How of the major a of them won are We’re companies, rate pursuing others, we with be a it up of when got sign get that in hope How opportunities our in one. but won encouraged And to establishing Kawasaki far, by will current global work which others one we’re so job go making now, our on up is here, relationships there MARTA think with haven’t basis. York will we’re hopefully with along is X those in win City as a will able there? other we’ve Japan, And get? is train we be programs on with be other major job XXXX. couple at year big but

ocean a potential. So, again, part part of smaller business, business, newer a blue of a for but our our

hopeful. we So are

Doug Ryan

Okay, thanks.

nicely under the it kind of you Obviously, So a about scaled an about sounds Telefonix provide and Armstrong, – would VVIP like now, VVIP? in the Armstrong how back positioned the assume update? companies. it mentioned the But is how the antennas, of straggler you been kind but Can good has I position. looks

Peter Gundermann

X.X way Actually, it Yes, all that, been companies three internally, like the all on kind years. number the got run going And report the those Telefonix. things over resources. able facility And background the that we’ve including organization, you of doing we’re year, of through that, we We companies some a X was – last to share have what restructuring some of of now call in consolidations got those CSC. of by and right.

project be significantly. able move the to competency, to and one to other. helped people are from our helped We – structure It’s our able frankly, effort and cost

antenna company So company, the improved the simultaneously organization, also competency but Collins. track with guess, on our program good old former We’ve, a downsized AeroSat, with significantly. or of is the I antenna our

I a used And exactly, it’s Armstrong better. substantially. were have guess, VVIP up don’t this while two have also. drain you but two course Zurich. better about CSC. into has And talk our those facilities is absorbed as near part operation year. out how see they similar little our Lake with to to almost been want that a them And We of market that were we is to aspirations over me XXXX. that and which say Revenues MAX and of opening I as the big I been Armstrong, And and the in doing bit. part XXXX, nowhere be. in it’s it’s we’re expecting be it that double in has up getting front Waukegan in in So of as XXX Chicago. a kind that play what into bigger and recertified have those going get of of Waukegan to the hopes Chicago, still we’ll physically story operation And absorbed

about three XXXX about much talking last have those got if the the we part kind so there of So a pandemic. talking situation maybe the weren’t that the was more stemmed three pandemic buried in with It of we kind plan of of we been moved critical rubble it. our quarters, past how would and over

Doug Ryan

you. Great. Thank

Peter Gundermann

you. Thank


Peter And closing the turn session. reached Gundermann over I remarks. we have of the will the question-and-answer call end for now to

Peter Gundermann

look everybody’s Well, to real No forward attention. much. another... thank remarks. you you in appreciate closing We to I talking

Debbie Pawlowski

yes, looks to did – like it question? looks have Jon, Jon it Pete, Tanwanteng sorry Jon a Tanwanteng like interrupt, on. got you but


Give me proceed please with your one question. second. Jon,

Jon Tanwanteng

Hi, Deb. me Thank squeezing in. you

– flat my they seen said in know mostly think trended or it I activity, to you’ve if all before. relative tell when might are so far? what I pickup seen you you’ve lot of could and through necessarily you I it they other or QX? aerospace just orders did us not translation. was wondering quoting register how didn’t just February a January did Pete, have if I but at and with –

Peter Gundermann

towards you more on I that, aerospace. in Well, I and course, guess But we’re bookings, growth tell and expect we track of would overall it’s it’s to early, do weighting Jon.

showing quarter-to-date yes, aerospace first quarter in So the demand. another step-up bookings are

it first little if Test quarter lumpier. So around, Test be good that know. should can a pretty hold you a sure. aerospace as bumps we rate, for perspective, an is from

we sometimes. a test quarter know. trend our never really first quarter, hard to It’s the the sure. were And but quarter, quarter predict in that the again So for for do fourth have first you potential fourth bookings better on in substantial. But to than aerospace is

through. So as that we we’ll hope get

We’re about halfway through.

lot can and happen now So a then. between

Jon Tanwanteng

And to earn-out that semiconductor That include that clear. that. was in revenue, be $XXX Dave does just that for million talking Thanks expecting, Great. about?

Peter Gundermann

will income, be other believe, Dave? recorded in That No. I right,

David Burney


Jon Tanwanteng

the of through perhaps or out And just XXXX, is will, incident then but plane, it any impact the so XXX are the that days planes an I that anything quick there from think read one, appreciated. ago? happened it. there a I couple Okay, a or any would fallout to don’t older be if got know was it

Peter Gundermann

Yes, Jon. that engine. nothing a That’s we’re aware pretty of, proven

So XXX. on little the perspective. from blip our apparently it’s a it’s bit of And common a a not engine

to not if So a worst-case from has affect in guess that it’s is going scenario, fleet because And a of perspective, for happen bad time now a is extra not inspect. an lot XXXs the to I it much. there industry to it around happen, floating to

the going don’t I point. expect don’t at at I this either all So would travel XXXX international to it at all. And affect think it’s affect

Jon Tanwanteng

Okay, great. Thank you much, guys. very

Peter Gundermann

Sure. Deb? Anymore,

Debbie Pawlowski

it. that’s No,

Peter Gundermann

have after to tuning for look the you again day. forward first everybody thanks We a talking in. to quarter Well, and Okay. good


your you and you And Thank for lines your may this disconnect concludes at today’s this participation. conference, time.