ATRO Astronics

Debbie Pawlowski Advisor, IR
Peter Gundermann Chairman, President and CEO
David Burney CFO
Ken Herbert Canaccord Genuity
Michael Ciarmoli Truist Securities
Jon Tanwanteng CJS Securities
Dick Ryan Colliers
Ken Herbert Canaccord Genuity
Call transcript
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Greetings, and welcome to the Astronics Corporation First Quarter Fiscal Year 2021 Financial Results Call. [Operator Instructions] It is now my pleasure to introduce Deborah Pawlowski, Advisor, Investor Relation. Thank you.

You may begin.

Debbie Pawlowski

Thank you Darrel, and good morning everyone. today interest time Astronics. your appreciate and in your We our me and Chief I with Gundermann, Financial Chairman, our have here Burney, Peter President Dave CEO Officer. and that the should you not, them at quarter We copy website find this of our a financial and have can results were on if released morning first

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

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

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

We measures GAAP in release. with tables non-GAAP of measures to today's have turn With that begin, comparable accompany it I'll Peter. reconciliations the that, over provided To financial Pete.

Peter Gundermann

that with at there and the quarter, answer quarter usual. Thank over here me first and with we'll banking financial looks recovery everybody. and showing the quarters we a good there and our level turn headline outlook Thanks a pandemic summary bookings Dave obviously real in open are, review improvements the more effects of we as have kind been sales morning more close dive last the our going second is norms, historical we're a markets detail. you cycle, bit little and our few a into given look arrangements in that are two and to to the conversation and to and call. one a low consistent that Debbie, the detailed and where surprise the steady I going it not for for positive of tuning by had more I'm ongoing into summary then is our high headlines, of When an and over first that of to for questions

today, shipments, three lag or In quarter quarter or heavily bookings shipments to historical bookings we pretty relationship the especially pretty the company be close, and our three bookings regularly which $XXX two today the think, there's out, pretty are we strong bookings two other two at to in calls. shipments, way we with shipments. way our other We by Specifically, given between it revenue quarterly words, these a in them very generally influenced by quarters low tends talk norms. three between and about our bookings and the ago. reports and that and finished influence measure business, million, again, look to In quarters just in of

the specifically. second no pandemic You've highly and back were XXXX our go by and XXXX got I'm consistently the level quarter that onset influenced view XXXX of that like the two quarter ago that third anemic three it's coincidence, to of to quarters of to about find talking time. the to bookings and in at

to quarterly in last in on $XXX average not of come you reasons, so that is solid back. we're the a to then, $XX in back, $XX other good actually quarter a XXXX is shown average for news average were dropping the company second drop. year, compares a bookings XXXX, on look average substantial have third us and for consolidated $XXX obviously for year, million in $XX come totaled the was strong to and on pretty booking of in if pretty QX a good bookings basis that number average million since of The million, $XX second year for million, of million about million very quarter Our the which last back, a a

million quarter first fourth $XXX year and Our last quarter, one was was million. just $XXX the our completed,

million period, on we period that two-quarter bookings per So or in six-month averaged quarter. $XXX

$XXX the million So and first year, and we've good really fourth on average quarter to year million last up from second quarter the quarter in in bounced this $XX third the progress. a

Looking aerospace side. at the the the segments. Most improvement is on of

on and these quarters million, last consecutively, If million. a $XX the aerospace out from on release. second Since at you the of gone year, the to spelled have table numbers to bookings to press $XXX million, are look $XX $XX the just bookings. our That's page million, last quarter

was terms, $XXX percentage on progress, aerospace Now average that you But, million, look at about of million. if our $XXX can it quarterly course, good. in XXXX, look pretty

about a level in at of million pretty per far were still where off bookings when quarter times So were even million, first Aerospace we $XXX our averaging $XXX pre-pandemic ways we're we from a in quarter.

important two of probably goes result driving will you demand the aircraft important. increasing we to to aircraft tend by in were jet minute. our sales, shape. which of what higher effect, call because general percentage or in time to expectations aviation, in good going - Aerospace business demand production group, year not ones most and our our expect the different if line and are into If get in us so dynamics you aftermarket, for or improvement? the know you're part our them Pre-pandemic, who those aware commercial largely expect XX% business this business business, aircraft, are bounced the they two which total about unit and each most this, about be I'm of that's both military and to in larger has industry lower demand and in we transport, as one. pretty at we to due follow anything have of be largely I'll most well one general jet that to business rates So look units smaller smaller COVID, and aviation, The we and fit follow and been certainly here military everybody jet not a military take strongly, has through of unaffected the people no back are company, on what's

good which $XX at down was no finished side transport commercial quarter short, aircraft, we quarter long in issue. significant first commercial you are real just look business In that's and transport military $XXX So story XXXX relatively is and The the in the both had from Again, if big here. jets news shape. of drop. million, sales a of aerospace,

dramatically not split however, We Recognizing a reasonable question positioned historically bodies our an world but wide in recover might talked where down thing, up. our relatively done where when by expected have a nail is quite business lag analysis is are not we've are soon body bodies are under flying the that lot and control. and wide way is today's is this and whole where these end domestic always side are wide obvious bodies typically products And actually what encouraged some to increasing the might pressure, our like setting, obvious narrow the for be, where about but body remains between to pandemic this numbers the we bodies under so a and it narrow how significant structured, seem narrow a it's and may we bit.

to between business way XX-XX So up and think the split, a wide but today if you clearly, is a business bit both transport wide-body bodies a I commercial narrow don't safe line little it's between revenue the XX-XX that about bodies. to we has a fit aftermarket. been very also and almost of different our effort, and And that, our cut way, an aftermarket XX-XX narrow-body split and it I said that have a almost line split think fit the almost

to sooner month shipping expect also narrow-body people in picks airports We, of the of production per and you hopeful single camp is as that bar. the So under wide-body see wide-body, as in and fit promising. hope, our aftermarket. quarter it's the increasing generally We more remain people this Everybody a of over how, and aftermarket and X volume gathering production quarter, on is not in for were for five The two and the be side, where from X on of although our US load domestic picking goes have world to fourth the and almost control. best we the every it that's North Continental international for pressure still expectations up is in now with under And almost XX aware volume aftermarket under XXXX to out including wide trending the the rates least business aftermarket. in on perspective, than or Flying about the for the Seattle. slow there to on in you for things and MAX. And is at especially the supports control, one-axis program between our XX% up likely or and It's each the can we're And rate supports the right body side a body the will one-axis rise and is we travel on rather want Europe is another the example that matrix narrow-body XXXX are flights crowds understanding axis that pandemics commercial aircraft in are back and our pressure in at on other by we six That at when we picture conventional if narrow world of countries in transport hope later. wisdom will until in most to the a that think looking flying. day line at line that evident the know, America now right rich aircraft MAX, up, commercial the biggest the are fly. transport progress again where based us different industry some the that was geographies to and first on. rate. are factors XXX But get happen where back and pandemic under China over the vaccines most line production expect and

narrow now different, would about the in narrow-bodies that business So expect that a are line in split, Again, whole reason production MAX, flights That with the transport, Test of AXXX military, last solid up XX-XX for the body can towards X.XX. and lot a quarters expectations bit done Test I side Shipments on for skewed that Volume shipments. about we for to and increased Europe. were XX% side Flipping $XX increased million this of jet, say end four happening bill potentially a commercial the in positive the pretty body XXX aerospace. book the narrows to and quite be and optimistic four the year terms quarters has over were to last and to bookings lot of well also wide a through and body, for rates the by million look and of for for the to the up talks $XX side today. bookings about pandemic Test

defense a our strong. It's strong. DC. government underway large of These some municipal also the which beneficiary side of of remains days, and potentially Test spending, So efforts the combination the element in expectation business has stimulus been for the of spending, of a

coming here financial to statements, Adjusted We turn for Dave. I'll it to cetera. expect talk now, over continue EBITDA et the strong year. will levels, and Dave through over be to we covenants,, our bank pause

David Burney

Pete. Thanks,

low that XXXX or commercial quarter, the sales had mentioned in as first Sales order sales was on quarters. down the of million to expected, the drop. million we were $XXX our transport reflecting XX.X% earnings for forecast transport down million, quarter that where XXXX. soft This no be only million about surprise call last illustrating quarter commercial intake compared of First $XX.X first Pete $XX market market was and about particularly from $XX.X and were to

the Net up driven loss level. was for low the quarter million GAAP by sales loss, Our $XX.X

of As million we slow operating expected, loss of sales, generating $XXX,XXX. of loss profitable $X level sales, are adjusted level an EBITDA the sales, this a low slight and not at

ensure win to we're development profitable our calls, previous on not well investment and sales sales at be continued structured level, would that new continue such low as discussed sales not investment this will did company product at in our strategy, long-term we the if have do and cost the and we expect clearly have be to level, post-pandemic invest adjust requiring to this we we positioned As programs to world. we've structure this expect level, for

be and the $XX.X the low Turning continue to in quarter the were Aerospace operating segments, segment, sales segment sales XX% million of from to of of which XXXX. in down $X.X first loss resulting million,

primarily has has been drop for past is story market. the commercial had on related the the pandemic As to quarters, the effect the the transport four

XX% million, Our Test Systems first steadily. segment operate XXXX Sales from continues quarter. up were to $XX.X the

exclude ratio, compressed operations debt mentioned quarter. from during in suspension Other four XXX revolver. times levels a sales claim. that we Switching legal the compliant with to recently a of temporary notified semi-conductor And which flows, with out prior Test should on a Originally with of to restriction $X.X expect we payable. the share LIBOR X.X points. of our It's million A us. period. million million was this accounts include items fourth down be $X.X million, LIBOR that covenants. a operating business or margin XXX at first negative due quarter acquirer this note times you that where of sales. XXXX semi-conductor by was it's by driven Test the a operating $X.X the grid X.XX increased XXXX, financial earn the the are press to earn to as cash X.X of is couple as that, under and as in were the and The in four Also, coverage were without fees amended in the in from by XXXX, floor begins leverage calculations in a down pricing resolved. were out to cash of points, repurchases, toward I that was our end key million million financial in XXXX. segment primarily credit record the in the slightly credit facility adjusted they flow the period a the as followed maximum agreement it an our as of as was we the year. income segment expect flows. fourth the our until original the decrease two $XX.X Adjusted to by information and the bit recalculated complete to that QX for that credit will facility compliant when in X.X% note, release income continue If agreement. revised from from for generated dividends. recap leverage key they've Then, of to referred period. statement both to far calculated calculation Then we infringement in quarter pre-amendment agreement interest agreement and of relating starting and credit acquisitions, Margins amended cash covenants receivables is was times as Inventory XXXX. liquidity with defined of calculation phasing for pricing the compliant typically reviewing defined times February received waived count issue covenant EBITDA six EBITDA the indicating high again as of XXXX of of remain earn credit this we basis gain. for be and then beginning defined the of X.X will $XX.X trailing the to a facility plus covenants To non-cash And EBITDA thereafter. is add-backs It's adjusted purposes. times to the covenant cash covenant adjusted in the on important facility, subsequently QX basis at and through was underlying million. expect $XXX above EBITDA and QX matures minimum to with revolving adjusted allows and the minimum the the we be The We're EBITDA There's in expenses quarters. suspension new review May non-cash decreasing a that suspension and our our are in, the out The shown $X.X the

the rate X.XX%. on interest revolvers the So, currently

Our That's million, balance with at the the a end balance net debt first was XXst, the outstanding on facility on covenants are what in I increase quarter of $XXX the at December $XXX.X which debt the $XXX.X is drawn we flat which debt basis, million. was XXXX, of end our were Pete. million $XX.X with of an considered, compared million have, at all net

Peter Gundermann

Dave. Thanks

the we guidance, are based in conversation line as hold normally and We the companies still over and current like the that we're approach. Looking top of the that But many that practice took believe earlier. on calendar revenue gave providing maintaining guidance maintaining I that, year. pandemic suspended ahead, we

of we progresses. in which as expect to Second to year the don't building give will how to and to the be quarter quarter here year exactly we how picture a will sequentially announced We're enough second revenue are when that, have going bookings terms of as out. August, turn of have hoping quarter how we in we a material results, window general, bookings year know early insight second on shape obviously the we out. we end be will But

think from third to today's way I that one potential through the given at course but quarter. the number downside too, suppose we there's second perspective And of are as that's believe will number. the Assuming we bookings we expect upside of second to potential cooperate and neighborhood said, of in the kind million, That revenues or quarter being be that in come we look hope. of a safe do $XXX

our there now. questions, think those are remarks. let's that if prepared Darrel, have I concludes So


Canaccord questions. Genuity. comes first line with with question of Ken proceed Our Please the your Instructions] Herbert from [Operator

Ken Herbert

and first more quarter, in step is Aerospace had a provide second million the step sequential down it roughly expectations with you little for the but the, sequential from the guidance up bit implies like as sort sequential your line the quarter, sales. that quarter quarter? the that we of into a in roughly of sales step $XX the just you to up million first thinking fourth sort about on and the Can quarter the Aerospace quarter looks $XX color about on $XX in roughly On second second think then, that down the step the million, guidance the from for

Peter Gundermann

to quarters. line to is of the us sales most over come have revenue for commercial That or in growth it's but aerospace transport next going sales transport specifically. three from And commercial

As the fourth on a are from going they're smoothly. tightened not and always there you quarter, for is first on couple the step a going One to of of bunch things that, there. quarter that's orders down the thing book

realistic So schedule, amount sum you inventory, we built, other fourth expected can in to. have factor dates some in just the when wanted slight they had schedules. delivery We We we thing the customers that cases,. to which had a had to previously established a But maybe is quarter, were holding delivery the to lump even we agreed

a it have So de-stocking We than of the and on so that would have customers industry whole that's quarter, the stronger made we perhaps was the that preferred, been probably phase. whole little so that that took inventory things under of terms different kind through fourth circumstances. of bit look the going not our to, would one in

Ken Herbert

to fourth from detail Was sequentially it the And strength around any aftermarket. first in quarter. you the provide bookings Can quarter aerospace that? more

and In the can the provide you're maybe would bit more you Aerospace? a think on sequential Good bookings in first market how - color little in OE the growth quarter I But businesses, business. more if the in you any ship book after

Peter Gundermann

of much the kind I that where their the but phenomenon so issue from wide narrow load it of relatively on and steady Textron would quarter although Business production to rates tend across would major was board, say body orders a side jets, first side. have a do will get on we customers like been the a more accordingly. not body

the aftermarket. the improvement activity saying that level I door a but vaccines the consistently the part not America whereas the dramatically line debt narrow-body, mean, sales As of has but has things are begins, turn, year as summer were picked dramatically, both discussions North interest, big our They guys got picked up around fall. in of last to been fit, in world kind the as the that terms in of as year only and orders then pretty typically into nail up closer. a and lead of in even

a has that been continues. in of hopeful transport bookings has that the we're related, So, related and been narrow-body lot increase commercial

Ken Herbert

expect on the as range. then with just you the mean I final as six And last probably didn't be. the maybe agreement as should could Dave, in agreement the I cutting place think you the you I year third one leverage be question. close in when quarter you credit be x mean well put on to

Just Assuming need sequential more the the do something room yourself is we the of a nice not contemplating? that feel a increase you're second in EBITDA maybe you But that the agreements quarter. bit or breathing some to give changes third expect little or and to End should

David Burney

We're going keep on that. our eye to

right, first year. put place when last back largely of in in the first in, quarter the You're in of agreement the quarter we

we expected and the the the on know wide-body commercial quarters certainly information the recoveries we it global based think business. four, five, three, May, in six at dragged look was if business quicker you recovery a back finalized in longer, then you I had transport

We'll a than have cutting covenants forecasting at not to. but something and our something violation group when we're closer ongoing it need we that, it right to on take on look dialog and to bank the and now be with to our that's keep we are eye it's we'll in what will eye keep So that our we if we go we of in put have expected we to place and yes, have


with the your Please from comes question. question next of Securities. Our Michael proceed Truist line Ciarmoli with

Michael Ciarmoli

is seem with XQ on - revenue you'll in sort million the what's profitable, in be than taking Ken's point the Thanks More materially questioning mean, break-even X leverage about there had have it be like would with third credit, net that there to the cash else to that for anything that like doesn't I generation to strong. that any be leverage, you seem going be of and just debt? previously times generation in I if maybe the said or think would quarter to think able EBITDA $XXX XXX stay I questions. changes

David Burney


If you traditional a XX look low just our get we at on million percent-ish sales a depending the sales mix. a even QX, growth. $XXX,XXX numbers. though in $XXX from is EBITDA lot or had the margins that we're typically It

cash to next the So are expected X we generate over positive flow quarters.

Our CapEx million. expectation around to this $XX is million $XX million year $XX

expecting positive to down we gain cash flow relating business. not on also are pay the generate of earn included sale Advantest semi in is out So any to the debt there to continue to

So, there are in be pulled other that the and levers could credit agreement.

onetime an haven't For a a lever. basis that related level pulled we costs legal to of if on example, there's certain opportunity exclude we decide

to direction, we we again, be transport potential goes which going So to, think on I than upside I closer the think expected, are, couple business of quarters. some forecasting, over depending the commercial are next we it's is there but

Michael Ciarmoli

buzz, I of airline said cabins? the of the those they're Pete, of look commonize you of what but think As what and hearing the kind pretty it from customers. restart was campaigns, said to modernize the you're retrofit diversified you United but the maybe across sort airlines? Board, I know, were you are hearing kind they seeing are bookings from proceeding,

Peter Gundermann

interestingly a especially interiors and lot interest in Michael, North in IFE amenities and positive where It's America China, enough. new there's and adding updating of

we the Wi-Fi of interest, the seems interesting around of that's level demand In see is world, how airlines mature renewed of We'll deciding investment out IFE corner. One seat a in levels for display. among the some heavy body see as There today. phenomenon plays wireless world. expected is pull have primarily that, also in viewed kind and in cases they airlines we back it narrow whereas a have that discussions America, the very but solid, parts In to be higher under we and in but it's or those the expected on it's control guess. or We other customer to areas sort going In body behind to amenities are Europe may the if a the airlines travel usually there's North then body bit a the they Europe under because right where things side surprising be light also. say China might of very world, a or that moving that when step US pickup of remarkable is it's where narrow be and ahead and China. pandemic with between think I bubbles in get and especially and of control, something not of

Michael Ciarmoli


Peter Gundermann

going It's for sure. direction right the in

Michael Ciarmoli

offerings. cost, you just materials. similarly, customers? are able are Last it. What any those seeing got your one are what you chain, raw your And seeing about about you the to pass there. that Okay, then tightness for your me. product maybe Can And to input talk supply on electronics side, you through are to critical

Peter Gundermann

Yes, very emerging picture. an good questions and it's

we into and revenue picture we're got are parts suppliers like certain outlook. seems something that shortages so shortages It have of at much is guess, the demand really but down materially not stretches. factored point, really and shrunk It or effects by and it's the bit part quickly watching. unprepared. point. differences economy the confronted a so, this little are world hot I more the our lead Not at in become expectations this definitely no lead-time - But that month we more Over and last affecting time or would pricing our or say

necessarily, call but So watch and if wouldn't persists crisis demand we'll supply what see a call it item a it I right that the yet. chains now. would responses the among I not


comes from Our Please CJS of question. the next with Securities. proceed with question your Jon Tanwanteng line

Jon Tanwanteng

nice wondering you you're see their just order taking this how progress similar in April questions if sequentially to improvement. continue and what May seeing the like railroad, in I'm Thank and month on the for or the saw you QX? that the look just early trend. for orders by and improvement To month

Peter Gundermann

QX of but one QX,so far too plus don't about or that maintaining excited month get pace is essentially minus. we

it's we're so to long So, but aren't about early so we seeing quarter but good. the to happy a go big drop-off, far ways draw about that is a conclusions certainly too second

Jon Tanwanteng

just then in much And versus think breakdown a XXX do do will for you how guidance a Aerospace.? you QX, and be Test have

Peter Gundermann

a working a for is faulty I'm but... so number with computer I have up. you, something today, don't This

David Burney

It's about XX million Tests.

Jon Tanwanteng

on that and Has and that? you those and BravePoint's for just any you've what increases to we good bogey in come back Dave how year about? maybe the cost you incremental then are EBITDA, there is At XX% mentioned in start revenue the do cut puts past you And a place? should but back think the layering takes

David Burney

Well, one provided most is, already said, have here. employees raises the to probably I we significant most annual rate

way but the adding any If to fully, a say in in we to or but could match I'm probably and layering bottom to anticipating Where on in is kind cash asking up now in employees that. we're head that this prior I of of it So the a the the anything of think go $X and reinstate going our of count going many our make to $X contribution is pandemic, our priority match we're and thing line be watch end of first and XXXK to we much flow million are the or of like call that's match. XXXK back quarter had our about big million the terms number. development there that that's the not happening what of kind generation XXXK Company right at highest to the

Jon Tanwanteng

been, for great, future. in Okay, you Test, past the time projects And large more environment. about Pete rail spend on helpful, the obviously much the but there in potential you didn't has the several that's talked

Just has positive. of for been side A&D it the is

your about in for something government that changes in if that's pipeline maybe the there's if talk attractive Just there's or environment outlook the any from side? the

Peter Gundermann

rail we Yes, us, I since about side, quarter. it didn't hasn't the high some pursuing. on Jon, transit have the on of We that value much changed front think we're because in do targets the last side, talk much it

that's been slowed is simply slowed some the because place. not the in COVID in funding of efforts funding those but there because things out and people those there have of down constraints, by aren't of but still office remains Some necessarily

first has In municipalities priorities a we been serve, of in that. we in on also true responders, pandemic, think pullback markets during Biden things little and radio for DC, that's fact, like the been has one and investment the improved based of of and administration especially expenditures. of of test have anything, stressed bit Municipalities picture the a that's some if funding that forces, the police area perhaps terms where the there

some have our more more hoping So prospects business market continued in markets, that we do so our a defense, we're together aerospace subject Gulp. and and positive turns traditional Test Big little and profitable to is

aerospace especially of So to its our for in to a size lot relative size. big of business orders its relation gulps

those how growth take last it's year, performance very in this for our affect more optimistic short-term those overall, So a year it's unclear more and year a that we strong there are year, time can from as into picture. terms bookings revenue a revenue But continued optimistic the to we booking of convert. strong pretty be and might potential is get

Jon Tanwanteng

that. in the thanks antenna business to, I slip demand on more, doing there just and jets, timelines business for could trying is given one the any Great, have been Sure. well? If and how update

Peter Gundermann

good things. We hear

have you pull really had team and of to Aerospace with things that into in. they teams I together me, a good of stuff don't we're As but out are can numbers with we They they XXXX point tell have of I specific a trying putting job originally in at you front are done us. schedule which know one, partners Collins and this seem to

Now months, about substantially next, in the this for order for we're six year what, months talking and not to a they're they're but it trying larger five in, or to them trying accommodate XXXX. pull necessarily,

I'll on that before So a luck, again. with release you'll have, see we talk a little press


[Operator from with Ryan the next Colliers. Instructions] question question. Dick line Please with comes Our proceed of your

Dick Ryan

you. Thank

XX,X X,X. to timing the might kind that variants, sense expecting any It particular there that any when potentially Are there looks of on of is out Pete, that So under and like moved conclude? earn from be you review. expected behind to reasons was it it's

Peter Gundermann

response. agreed print little asked frankly number questions in we it basically then Dick, got got number some and Well, and we a with lower and out a to we're a we but confused a

it think there's we're guess, resolve next discussed root do a what of think but is possible bigger And potential over don't it's in it there expect next well know and are that that. turns the work, I efforts we asking would be over an say into conflict So don't too, questions. quarter, that numbers expense and resolved we but I those a I if that is I issue two accounting would into. quarter, issue, in kind we it's but there a do, general and I the one to it underway to certainly

say to too unfortunately. So this it's point just at early


line with proceed Genuity. question. next is Herbert the Canaccord question Our from of your with Ken coming Please

Ken Herbert

us on so. how in XX of XX. on or update Boeing? in Third Shipsets this mid to with expecting of the production take, the of on excess XX-ish where inventory and quarters and sort the be that Pete, worked give sort are at of the or Can you of inventory into when you shipping you've channel MAX second to of down in heading rates with sort in the with MAX, talked sort you accordance expect of just to out the or about year quarter approximately timing sort coming

Peter Gundermann

other up they've what the Ken. we I a to to schedule, are It's you don't well that really us the saying. shipping guess, question. I give good seems know suppliers observation I the line But think pretty firmly would answer, got with

picture happy they either we down. has that or whatever up know maintain they're what went they happened that into XXXX, it don't and to that I a a companies to answer because those but not necessarily to bit direct the on companies. shipments Boeing, by both is. and And MAX manufacturers consistent a of shipment confusing and also wing are it's little we between are Honestly at whittled avionics they're inventory going put rates built had the So the level to XXX inventory with we when things the by

little keep quarter guess shipsets first and inventory say to So hard or pretty would have a month we it's that but who's got we X track at for the of a I were X what a firm I believe us to okay fourth XX XX, about month in have the plans so be world it. pretty would we what seems with the point at that we're a that quarter, this with quarter consistent experiencing a and

Ken Herbert

Are final XXX Okay, just for here running sort were. some recently and those AXXX you you expected the softness of few I your they schedules? incremental with that's have those very had of steady on rest in of And year. months changes But schedules this if seen still where those one step could helpful. either follow-up. shipments down any we've know or incremental seen programs. an the Have last I

Peter Gundermann

of anything the particular similar in in seen it's we either and haven't news. but five general what's what's stepping a in move, the than No, the XXX of kind the XXXs other there with among making kind the summer. out consistent down is


at Thank you. to There back time, the management closing over call turn remarks. are would no further like any this questions I to for

Peter Gundermann

to day. the your your Astronics. Thank Have interest remarks. second We a for continuing look forward the for talking the Thanks you on in again closing interest. good in you turnaround hopefully side. with booking No quarter, to


This today’s Thank you teleconference. your for does conclude participation.

great at may your a You day. lines time. Have disconnect this