Astronics names new CFO as Burney retires

EAST AURORA, N.Y. - Astronics (NASDAQ:ATRO) Corporation (NASDAQ:ATRO), a provider of advanced technologies for the aerospace, defense, and other mission-critical industries, has announced the appointment of Nancy L. Hedges as its new Vice President and Chief Financial Officer. Hedges will assume the role following the retirement of current CFO David C. Burney on January 3, 2025.

Nancy Hedges, a Certified Public Accountant, has been with Astronics since 2014, serving as Controller and Principal Accounting Officer. Her prior experience includes over twelve years at PricewaterhouseCoopers LLP and a role as Director of Accounting and External Reporting at Dayco, LLC. Hedges is a cum laude graduate of Canisius University with a B.S. in Accounting.

Peter J. Gundermann, Chairman, President, and CEO of Astronics, expressed confidence in Hedges' abilities, citing her comprehensive understanding of the company's financial operations and involvement in strategic financial planning. Gundermann anticipates a smooth transition, highlighting Hedges' potential to enhance the company's performance initiatives and financial health.

David C. Burney, who has been with Astronics for 29 years, has contributed significantly to the company's growth, supporting twelve acquisitions and overseeing a rise in sales from $33 million in 2003 to approximately $800 million today. Burney expressed his confidence in Hedges' leadership and the company's direction post-retirement.

Astronics has been delivering technology solutions for over 50 years and is relied upon by global airframe manufacturers, airlines, military branches, and Fortune 500 companies. The company's strategy focuses on developing technologies and capabilities that address the needs of its targeted markets.

This announcement is based on a press release statement from Astronics Corporation. The company cautions that forward-looking statements contained in the release are subject to risks and uncertainties that could affect actual future results. Factors that may influence the outcomes include global economic conditions, industry trends, customer preferences, and regulatory changes, among others.

In other recent news, Astronics Corporation reported a strong Q2 performance, with sales reaching a significant $198 million, returning to pre-pandemic levels. The Aerospace segment showed solid growth, while the Test segment is recovering after a restructuring phase. Additionally, Astronics completed a refinance in July, resulting in a lower interest rate, enhanced liquidity, and more favorable covenants. This is part of the company's recent developments.

Astronics aims for double-digit operating profit and expects the Test segment to near breakeven by the year's end. The company also projects mid-teens EBITDA margins and improved cash flow in the second half of the year. The Test segment's revenue is expected to increase in mid-2025, depending on the progress of the 4549T radio test contract.

Despite the strong performance, Astronics faced some challenges, including $1.3 million in restructuring and severance costs. Additionally, the company incurred an extra $3.5 million in estimated costs from mass transit test contracts. However, Astronics remains optimistic about resolving litigation matters by the end of 2025, potentially reducing future expenses.

InvestingPro Insights

As Astronics Corporation (NASDAQ:ATRO) prepares for this significant leadership transition, InvestingPro data provides additional context to the company's financial landscape. Despite the company not being profitable over the last twelve months, with a negative operating income of $0.35 million, there are signs of potential growth. The company's revenue for the last twelve months as of Q2 2023 stood at $741.4 million, with a notable revenue growth of 19.47% during this period.

InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This aligns with the company's strategic focus on developing technologies for targeted markets, as mentioned in the article. However, investors should note that the stock price movements are quite volatile, which could present both opportunities and risks.

The company's market capitalization of $705.69 million and its price-to-book ratio of 2.74 provide additional metrics for investors to consider. It's worth noting that Astronics does not currently pay a dividend to shareholders, which may be a factor for income-focused investors.

For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Astronics Corporation, providing a more comprehensive view of the company's financial health and market position.

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