• Sales for the quarter were $177.0 million
  • Consolidated orders for the quarter were $176.6 million
  • Backlog at the end of the quarter was $379.4 million
  • Initiates 2020 sales guidance in the range of $770 million to $820 million
  • Announces restructuring plan for antenna business

East Aurora, NY | November 5, 2019–Astronics Corporation (Nasdaq: ATRO), a leading supplier of advanced technologies and products to the global aerospace, defense and other mission critical industries, today reported financial results for the three and nine months ended
September 28, 2019. Financial results include the divestiture of the Test Systems’ semiconductor business on February 13, 2019.

Peter J. Gundermann, President and Chief Executive Officer, commented, “As expected, third quarter revenue was light, due in part to the continued grounding of the 737 MAX and the resulting capacity challenge affecting the global airline industry. Beyond this, we faced some headwinds that impacted our bottom line significantly. The headwinds included continued losses from the three struggling businesses discussed in previous quarters, higher tariff costs, a non-cash loss on the sale of the airfield lighting product line, and an increased reserve for a legal proceeding in Europe. In total, the detrimental impact of these issues on the quarter’s results was $15.4 million.”

He added, “We are implementing a number of strategic initiatives to alleviate several headwinds and to set up for a successful 2020. We are consolidating operations, rearranging supply chains and pushing development programs to completion. We expect our actions will begin to show positively in the first quarter, and become even more evident as the year progresses.”

For comparability purposes, in addition to reporting consolidated and segment results of operations on a basis consistent with U.S. generally accepted accounting principles (“GAAP”), this press release also contains certain financial information regarding consolidated sales, operating income and net income, as well as Test Systems segment sales and operating profit, adjusted to remove the sales and direct expenses of the divested semiconductor business from all periods presented. Management believes these non-GAAP measures are useful to investors in understanding the performance of the ongoing business. The reconciliation of GAAP measures to non-GAAP measures is contained in the section labeled “Reconciliation to Non-GAAP Performance Measures”.

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  • Order intake: €7.0 billion, up 10% (-1% on an organic basis )
  • Sales: €8.2 billion, up 9.9% (-0.5% on an organic basis)
  • EBIT : €820 million, up 8% (+4% on an organic basis)
  • Adjusted net income, Group share: €574 million, up 7%
  • Consolidated net income, Group share: €557 million, up 22%
  • Free operating cash flow: -€332 million
  • All 2019 financial objectives confirmed, with organic sales growth at the lower end of the previous guidance (3% to 4%)

France | September 3, 2019–Thales’s Board of Directors (Euronext Paris: HO) met on 3 September 2019 to review the financial statements for the first half of 2019.

“In the first half of 2019, Thales posted a solid performance, once again demonstrating the resilience of its business model. In spite of the slowdown in the commercial space market as well as a high basis of comparison in the Transport and Defence & Security segments, sales remained stable at constant scope and currency. The commercial momentum remained solid, with the booking of 7 large orders with a unit value of more than €100 million. Operating margin grew organically, led by a very good performance in the Defence & Security segment. The results achieved by Gemalto, consolidated since 1 April 2019, were in line with our expectations. This positive momentum allows us to confirm our 2019 financial objectives.
All Group teams remain focused on the implementation of the second phase of Ambition 10, our strategic plan, and on Gemalto’s integration.”
 Patrice Caine, Chairman & Chief Executive Officer

Increases 2019 Adjusted EBITDA Guidance to $105 Million to $115 Million

Chicago, IL | August 8, 2019–Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, today announced its financial results for the quarter ended June 30, 2019.

Highlights for Q2 2019

  • Consolidated service revenue of more than $173 million, up more than 9% from Q2 2018
  • Net loss of $84 million, which includes a $58 million loss on extinguishment of debt due to the $925 million debt refinancing
  • Adjusted EBITDA(1) of $37.8 million, up from $18.9 million in Q2 2018
  • Combined segment profit from CA-NA and CA-ROW of $6.9 million, up from a combined segment loss of $17 million in Q2 2018
  • Total Aircraft Online for Commercial Aviation of 3,134, up 81 from Q1 2019
  • Cash Flow from Operating Activities of $11.7 million; Unlevered Free Cash Flow(1) of positive $36 million, up $73 million from negative $37 million in Q2 2018
  • Renewal of our 2Ku agreement with American Airlines and our commercial relationship with T-Mobile
  • In May, Delta Airlines conducted a two-week trial of free Wi-Fi on 55 domestic 2Ku daily flights as part of Delta’s evaluation of offering free Wi-Fi to passengers

Second Quarter 2019 Consolidated Results

  • Gogo completed a $925 million debt refinancing to lower borrowing costs and extend debt maturities, including the repurchase of $159 million of the Company’s 3.75% convertible senior notes due 2020.
  • Consolidated revenue totaled $213.7 million.
  • Service revenue grew in all three segments to a consolidated $173.7 million, an increase of more than 9% from Q2 2018.
  • After excluding the $58 million loss on extinguishment of debt, net loss of $84 million would have been $26 million, an improvement of 30% year-over-year.
  • Adjusted EBITDA was $37.8 million as compared with $18.9 millionin Q2 2018, driven primarily by strong service revenue growth and lower operating expenses.
  • Free Cash Flow(1) in Q2 2019 was negative $3 million, an improvement from negative $35 million in the prior-year period. In the first half of 2019, Free Cash Flow was negative $37 million, an improvement from negative $144 million in the prior-year period.
  • Cash and cash equivalents were $182 million as of June 30, 2019 as compared with $189 million as of March 31, 2019, and reflects $40 million of interest payments made in Q2 2019.
  • 2Ku aircraft online reached 1,216 as of June 30, 2019, an increase of 109 aircraft in Q2 2019. Gogo had a 2Ku backlog of approximately 900 aircraft as of June 30, 2019.(2)

“Gogo delivered a solid second quarter, driven by strong underlying service revenue, operational execution and successful implementation of cost controls, including lower than expected satcom expense,” said Oakleigh Thorne, Gogo’s President and CEO.  “Following our excellent second quarter financial performance, we are again raising our 2019 Adjusted EBITDA guidance.”

“We continue to strengthen our balance sheet and expect to improve Free Cash Flow by at least $100 million in 2019,” said Barry Rowan, Gogo’s Executive Vice President and CFO.  “Looking ahead, we are on track to drive Gogo to meaningfully positive annual Free Cash Flow in 2021.”

Second Quarter 2019 Business Segment Results

Commercial Aviation – North America (CA-NA)

  • Service revenue increased to $96.4 million, up 1% from the prior-year period, due to increased take rates offset by the 555 de-installations from American Airlines aircraft that began in early 2018 and were completed in Q2 2019.
  • Aircraft online increased sequentially to 2,443 from 2,412 as of March 31, 2019.
  • Equipment revenue decreased to $9.3 million as compared with $23.9 million for the prior-year period, due to lower 2Ku installations and a shift in mix from airline-directed to turnkey installations.
  • Total revenue decreased to $105.7 million, down 12% from Q2 2018, due to the decline in equipment revenue.
  • Segment profit increased to $24.2 million from $7 million in Q2 2018, due primarily to stronger service revenue and lower operations costs.
  • Take rates increased to 12.7% in Q2 2019, up from 11.2% in the prior-year period, an improvement of more than 13%.

Commercial Aviation – Rest of World (CA-ROW)

  • Service revenue increased to $22.6 million, up 49% from Q2 2018, driven by an increase in aircraft online.
  • Aircraft online increased to 691, up more than 50% from 459 as of June 30, 2018.
  • Equipment revenue decreased to $14.1 million, down from $18.5 million in Q2 2018. While there were more total Q2 2019 installations in CA-ROW than in Q2 2018, fewer installations under the airline-directed model resulted in lower equipment revenue.
  • Total revenue increased to $36.7 million, up 9% from Q2 2018.
  • Segment loss of $17.3 million improved 29% compared with Q2 2018, as we benefited from continuing improvement in satcom utilization.
  • Take rates increased to 13.4% in Q2 2019, up from 13.2% in the prior-year period.
  • Net annualized ARPA of $135,000 in Q2 2019 was essentially flat from Q1 2019 and declined 8% from $147,000 in Q2 2018, reflecting dilution from the significant growth in new aircraft fleets online, which typically generate initially lower net annualized ARPA.

Business Aviation (BA)          

  • Service revenue increased to $54.8 million, up 14% from Q2 2018, driven primarily by an 11% increase in ATG units online to 5,462.
  • Equipment revenue decreased to $16.5 million, down 37% from Q2 2018, largely attributable to timing delays in the aftermarket channel due to the FAA-mandated December 31, 2019 deadline for installation of ADS-B safety systems.
  • Total revenue decreased to $71.2 million, down 4% from Q2 2018, due to lower ATG equipment shipments.
  • Segment profit decreased to $31.3 million, down 15% from Q2 2018, due to the decline in equipment shipments, increased network costs resulting from higher bandwidth usage, and investments in the development of Gogo 5G and other new products and services.

Business Outlook

The Company reaffirms or updates its 2019 financial guidance as follows:

  • Total consolidated revenue of $800 million to $850 million (no change from prior guidance).
    • CA-NA revenue at the high-end of the previously-guided range of $355 million to $380 million with approximately 5% from equipment revenue (no change in guidance for the percentage of revenue from equipment).
    • CA-ROW revenue at the high end of the previously-guided range of $135 million to $150 million with approximately 40% from equipment revenue (versus prior guidance of approximately 30%).
    • BA revenue of $290 to $300 million versus prior guidance of $310 to $320 million.
  • Adjusted EBITDA of $105 million to $115 million, representing 55% year-over-year growth at the mid-point of guidance (increased from prior guidance of $90 million to $105 million).
  • Free Cash Flow improvement of at least $100 million versus 2018 (no change from prior guidance).
  • Increase of 400 to 475 in 2Ku aircraft online (no change from prior guidance).

EAST AURORA, USA | November 5, 2018 – Astronics Corporation (Nasdaq: ATRO), a leading supplier of advanced technologies and products to the global aerospace, defense, and semiconductor industries, today reported financial results for the three and nine months ended September 29, 2018. Results for the quarter and the first nine months of 2018 include the results of Telefonix PDT, which was acquired on December 1, 2017 and Custom Control Concepts (“CCC”), which was acquired on April 3, 2017. Earnings per share for all periods are adjusted for the 3 for 20 (15%) distribution of Class B Stock for shareholders of record on October 12, 2018.

Read the full release here.