Astronics (ATRO) 11 Aug 222022 Q2 Earnings call transcript

Greetings and welcome to Astronics Second Quarter 2022 Financial Results Call. At this time, all participants are on the listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

As a reminder, this conference is being recorded. to with conference Investor like host, to now Mychajluk Craig Relations. would turn over a your I Thank you.

You may begin.

Yes. Thank us joining appreciate We you. Good here morning, today. everyone. you

and Peter On If Should Officer. not, this a results, a second find our the which me our have Burney, release are you of website XXXX call Chairman, Chief can with you at President on morning. quarter CEO; copy Financial we Dave our earlier astronics.com. Gundermann, our financial released

is some make Q may statements we These aware, risk likely are as as factors well Commission. today. events and documents the stated you and uncertainties formal other with provided and well the during statements Securities are risk and here future Exchange to well as to and that factors forward-looking discussion, cause what are a As during session. actual These other subject could the with the other results that uncertainties apply as as at A release in filed as from differ materially

find documents website our the on or sec.gov. at can You

We call, measures. some this not GAAP. the information substitute the of we’ll discuss or will for evaluating isolation, these performance, is non-GAAP in also accordance consider presentation useful financial prepared results should in additional today’s our be During in believe with

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

everybody. morning good And Craig. Thanks,

little the and concerning or things some first today we’ll good do quarter, maybe topics, and about talk a are afterwards. most bit things or in watch to and specifics As there in a forward. items answers questions we’ll good go for today going comments or then And that items think the are few quarters, and on things then second more second. the some my organized bad are I’ve watch things good to some that happened things about there

second be continues the for couple look stand things, our me. demand and for So that really strong the to I quarter, out to things a pretty there products. that positive at when our business are is One

were of record off the but bill all-time us That’s bookings pace with X.XX, to was quarter the of of quarters, year. leaving a high. still $XXX $XXX million, book trend another Second the recent continues backlog This over an last slightly million.

in the last of against $XXX XXX. of bill we a to quarters, bookings book strong had sales Over our four That’s of X.XX, million experience. very

of to over the take in part, Max a to life. for going deliveries Again, the to their second to obviously, the quarter, did before, more book XXX It’s or we’ve a power really or which released important numbers. wins, but groundswell the aviation groundswell of future, awards recognize of industry transport or again, three bill in-seat in that’s are major across the of of more few news near one last those world’s be most program turn year going aircraft, has power one used run much really that of prominent and driving a in-seat company. being business quite for we bunch year. in That the about industry, case, inflated announce real bookings will And is the as business contribute we of it’s bookings the they’re a those that about that our that bookings X.XX they Maxes year. meaningfully business, next experienced specifically over Southwest involve the think which for across no fourth a our important for two. volume quarter. big back current and date second in the in of They blockbuster our the never did some Airlines, now the bookings the The not into product comes kind quarter particular most the next beginning thing we that airlines are to commercial particularly There quarter the of to the

describe applicable magnitude we over be a a two team, it years industry’s going announced Safran, running as progress for we’re which hot but primarily which and aircraft, aware the think to to that that system SATCOM of the our the is And as second a that rush we’re towards electric expertise take very bunch aircraft. and around for with And acronyms differ is heavy on of on to be major a originally distribution meaningfully also do there’s world around they so again first meaningful kind other were that of work half, of award announcement. for takeoff going role it, next and happens year going We the are can awarded to but bookings. our in how we of And be continue but class with design the most play vertical did a expect a that contributor and certification. Lilium world. of hardware the this recognizing quarter timing and we’ll aircraft, to but contribute EVTOL discussed a going on people eVTOL developing is prominent off, the electric that aircraft. will bit aircraft, is are number that to to We There and companies pleased is finally, system this electrical not extended one electrical to we’ve Airbus our Lilium reasonable to be also, landing. you of before

starting the strong, that has a And be show to drive sales continues in been signs volume. So strong, ramp strong, was demand to second and to beginning is ramp quarter. it’s in

forward the we in become force fourth quarter in more results and XXXX. We expect close to and a quarter, of it step our third driving as out

where $XXX from really step-up we revenue quarter were the when averaged of quarters Second four a for million. is previous $XXX we million

is up stepping think of we million, an we’re $XXX where important indicator XXX, to going. So

million. fourth The we midpoint little of half weigh the as little The quarterly quarter volume second to will in guidance year the in in we of fourth the heavier, bit third second towards be fourth the quarter, and our volume I second but being said, second half the took the of there that’s implies $XXX was current million. quarter full quarter. a And a year, our are pandemic of average accelerate the going actually since expect lighter, quarter, revenue revised million quarter being $XXX our thinking the be We average to It’s first in ramp year. half the hold to XXXX. what highest the a $XXX the little quarter to

previous when second we we’re four XXX So second in half you quarter, XXX and for about quarters, averaged sequentially, we’re at the in the here. million going the to thinking look it XXX average

if we million a us gets successful were distance also, the where range. ramp. routinely quite in spitting it’s It of to before $XXX So million $XXX struck were we’re we within pandemic when the

a in nothing we So industry our we’ll the close can and missed where to items macroeconomic unique control of There but out near chain if XXX and more think around be they a situation that significant business, within also, and in that’s of in negative Supply average, were year are some have in other course, sight things think we things with the with a playing million items sign up to our of last We of but being I as described shipments. you of pre-pandemic. many or continues struggle, particular world. companies line were or under past game at especially a electronics, whackamole you delays kind also. calls minute of bit the it, where causes pop on

kinds to quarter. the in pressures of see those second continue We

down in for our a and in up the we up expect press. world people trickle now little a quarter In continue it’s fourth million the range. to supply the like out, second shipments reason our Particularly we major are tune deferring quarter. where we get. we about not are and about which the There some for seem dropping as bit lines We a And range, shipments of chain we reason of a up delaying more of to relaxes some and reliability to electronics, also. operations that up- a type worse. that million we line the little we’re in what over million for electronic the player, with about for terms things We stabilized compared the of till been began. use hope up thought that’ll of sectors for reading to bit course little We But some bit The might might getting business or quarter. going of our ended to XXX or X a were Most from end is struggles to reason high are X revenue where in little started optimism. lot at revised in components million report harder XXX. the cases things our least better. expect guidance. niche at to top quarter getting XXX about be are business, quarter, if We other revenue XXX talking also of give demand, demand for They’ve shooting ended third have general the

high the end taking of that We’re range. off XX million

We’re keeping end. the low

XXX to XXX. That growth XXX. if will represent And that were XX% we’re about is So be would to midpoint, our range if XXXX. that, hit revised successful, we over

going again, think that So step strong the a be would right direction in we forward.

is item how we resignation Second these side to still that exist. people refer on the not shortages, And great typically. it immune pressures. from kind negative labor are that’s of The is

and forward. terms people news to People a think lessening bringing deliveries. before them we’re the of attracting that our have The of to think, are pressure a will the does be in is finding do troubles board. other pandemic. be bigger factor so a lot here chain little than struggle, today turnover year. have we seem of expect going easier experiencing not experienced not bit, at We’re We this an good be companies turnover, had people that more time like on rest through Supply least limiting we

the a inflationary Finally, labor. inputs again, to face on call, but and anybody we macroeconomic material both some shouldn’t news in to business, our do major pressure issue, the be

straighten margins, to or and labor. with premiums spot have time. some some can reverse to you material their example, around for There inflation, working some year decline the of But to that to or which to we and of expectations. year. bit out important up regardless, secondary will of with but costs and to these we decline best also both so, lot of sense deliveries for it’s next when hurts over contracts. to we of general months as our think are as expenses, we more six tied We our to higher We over we make prices the is a customers the in little get buys where term on go happen experience with is will parts normal a revert do to think commodity pass can. business world, course, special back keep long shipping expect material, up something pay we A Some by sources a expect

a lower we more those more pricing as From term incrementally, already slower we typically flexibility aggressively issue we’re in recovery, in margin we It’s business near think up our increased have lot that in we parts are so in and but can. going a discussed. is volume areas velocity doing can to perspective, there. orders higher and of but All be limited biggest my the We’re of as this results at I’ve the our correct as other volumes, pressure. getting

in we we structure that’s that going of had statement. We on think We income now. to them change justify proceeds recognize recognize need to year, carry to Sequentially, across have as don’t that ours back customers lot been input We we that. with look the programs intentionally puts we in across business cost to the a have first forward. of of that that we’re have shape And through good here. capability entrusted recognize pressure be don’t maintaining volume But our we last also execute on increase, elevated We our to to of work cost. or a us. and this our need organizational We to the you business to the that the quarter year to quarter fourth area, but want the deal major going AMJP rest you’ll focus if done. we course,

from now. quarters a in We out or had both couple company years right also We a did have sale ago. that income line we don’t earn that those product a

which needed something deal. So the with for the think coming should look own that the allow be did seems quarter the time A Dave that but in We close these last and while is to working couple you’d we another new watch accordingly. Like than detail do longer happen. more on extend to today and able first months. months. it our our their this banks, extension And to little talk on new weeks, a quarter to three an we’ve to item, days, to for allow been us of close we take stand compared to this results little think. we’re facility about pretty work get to everything to thin up momentarily, second quarter, a fourth a deal kind the will announced we We bank

think what closes remarks. why Dave, in you’d my add that don’t I like? prepared you So

Well, Sure. thanks.

our sales last quarter said, year’s are pressure first improve, experienced in so putting quarter the driven from decline. year The consolidated XXX and transport commercial strength in on margins. quarter, Pete million XX% As XX% operating the downward by in while we’ve margin top first experienced from to market. Despite we continue revenue of million up was $XX the sequentially our headwinds the the up to an ago line quarter, compared continued increase

in about quarter. million But actually we profit. the of X.X that? we loss that million is $XX that mentioned of ago. million to headwinds we’d loss to quarter expect quarter didn’t increase the for were year’s X margin previous So sales a compared why on from saw our loss And operating a increase to increase quarter see X million. that. drop We were XX% saw Historically, sales this some Pete to the operations about of the the So the to of X.X to headwinds million from a comparing year of for

from in comparability consideration SG&A our a we effecting year had contingent reducing quarter impact last quarter, cost the the prior in million. Eliminating of the eliminated year. by a XXXX second acquisition relating an second First, to liability $X.X liability this the on

$X It’s are companies Second well. or what year million and million from wage inflation amounted different benefit base That’s a than top XX% around more $X to increase a to to wage the ago. somewhere there. not of as on other close seeing

Third, somewhere in materials and up of X% of XX% range is the sub raw cost to the assemblies typically.

margins buys million that, a to million some ago. to Together, traditional development addition find we’ve can when operating close be $X year the of have our had chain. outside $X In are we to of cost programs, at compared then where of been supply components spot estimated that to And the we making to programs breakeven. the about lower on a we were couple these

on earnings but quarter. totally from they consistent those, not not sales, to which it’s quarter contributed but uncommon, no So is

pay margins AMJP this that of income the most not into quarter. the annual that of first most the year, have the of for pay on did much adjustments rather, to And cost XXXX, grant for most first the was had or XXXX this $X first And an operating comparing the quarter second quarter, and happened million. quarter, first impact quarter our offsetting when part- Additionally end of preceding toward first part the sales. as quarter adjustments

contingent for margin. business the we first in consideration income income below $XX.X quarter, million. That’s of recognized the the statement on out earn on sale totaling semi shown Additionally, the operating

a balance million the we it $XX.X quarter as wise, strong sheet, flow operations. for not Going cash to used was

been cash quarter. as increase increase look the to inventory inventory. degree increase the degree, the see can of to cash If expected working related supply what our statement in the terms fact levels chain our as and sales the clearly difficult Part our And customer high Most a for supply It’s inefficient best increase lesser ramping and some customer-centric organization, and to a of as third to side delivery when inventory of of inconsistent given on-time part fourth investment as the quarter. keep which our extremely base. in times. on out flows, the to is the driven that driven to is to receivables, with chain to you do a the is capital in jumps you conservative lead we’ve sales up erring the in possible optimize we’re at for take

bank long arrangement the credit provide more by group, of we the The expiration credit credit to Turning revolving time term of extension our our a the update, with August, cooperation in end months three to to facility will get facility of the XXXX. place. extended

that three or they by targeting process were have as And three this You recall we slower a we moved ago. than has little expected may the we months reported now. four mentioned, ago bit months done Pete

in into and expect that a we’re not we’re multi-year yet, While shortly. finished working lenders stretch place we’ll the new final in agreement have with our

inventory $XXX $XXX million in total Pete, by availability. facility prepared ends expecting credit will likely being involve provide and million fee. pricing expect a and a sufficient facility tiers, Some that there’s was basis the an two relating mid-September in The to have and my financing to operations spread of terms down we’re working to receivables. XXX completed XXX extension in term at to note SOFR XXX all in strategy reduced mid-October. revolver is the on and this the based fund pieces basis dropping remark. to to increased the liquidity facility of to and XXX the be from then and supported further we’re by pieces, our of select changes the points million a amendment somewhere This million million the primarily quarter And to point will XX million, range hundred asset

Okay.

questions up we’ll now. think for open I it

time, and conducting Our Instructions] Tanwanteng [Operator this question Securities. Jon we’ll proceed comes your with question. with first At you. a be answer Thank CJS from question session. Please

taking questions. morning for guys. you Hey, my Thank good

one out is, reducing what that did pieces component that’s of top supply giving call the is? Pete, you end? or the First you that’s chain a you have difficulty been specific Could

I don’t certain observing foods supply it. these and specific at work down trend go we’re but regular general do beyond components to We even and the- our if you know have caused snap certainly more you I It’s us. have to chain have a just rate. try range, the you ratio have original that that bring that consistent a

Revised halfway about pretty we’re year given And involves the realistic much range is so a that. electronic thinking more now. quite components make that it. But and bit of we’re everything through we

it’s lighting most We the our that raw electronic limited a trouble, so components it’s don’t use products have business, but just are really- primarily I the on not like hardware, it’s effort. side causing paints, some to whackamole that. much, plastics mean, us of said, but the it’s that I basic

I mean pretty good it. but think it, doesn’t that we’re dealing getting overcoming that at we’re with

We’re just surviving with it.

be I lot whole feel operations saying said, So it’s of bit nobody’s little better, things a some of report a others worse. getting getting way, but might that don’t like our that

that’s where So been actually good news quarters. compared previous to in we’ve

talk talk two? the contracts year you scale one interesting. the sounds of projects more the you each coming one pretty Got three that about about or bit with that these these in and it. signed? The And just then, associated Can Southwest little can be revenues a might or you these especially

of little them. a actually a all on question Timing’s bit Sure. three of mark,

me transport, world. is airlines a pandemic bad this. though, the The horrific. to been say the were, a grounds be commercial statement when concentrated opening around on place like and Obviously, we being let focused aircraft, pandemic’s As

other diversification So a defense that were military did. just much lot that’s concentrated. or We more of obvious. We companies diversification the have don’t

there’s were coming that said, and the approach later we industry’s now have, think kind the how And The this of it’s our of for obviously look narrow fleet, I ship, power product airplane. think positioned, demonstrate that changes we pandemic specifically two to Narrow that. programs, other out to the Southwest like with continued in that the back a body world. with to three the lot new lines a out being the Max to our only of per it’s until came implementing or strategy excited. was it’s I is to We’ve as corner but architecture of lightweight were I in-seat of relationships operators in It’s one, that way good kind So we them the been talking at We the our typically pretty range that body to interested a look any extent. happy at A, these and moment USB back, and and up customer launch years. pretty struck. very system situated not out a around the positively we’ve enthusiasm large a a feel across about the coming major line with to body the we’re type product And C somewhere world And market. have. industry. And a architecture. new way $XXX,XXX years something We the Southwest they’re we we’re come got And narrow in type going customers. for the a we really play

more years was think had be are become penetration that and more is And lower installations three on the much our Narrow power on a narrow in going ubiquitous, they’re as going feeling more way. pandemic, and later, today. aircraft more as widebody they be going as Before body still a later, sooner to to feel common We demand. in-seat or that bodies to aircraft common- rate. we are

Max positive only Southwest. for at fleet So the that’s a program. It’s

of and NGs of but while, Max plan they for bunch think a as of And extend only for as runs the also they aircraft. they program a will is, might, to to today, operate NGs. this it’s you we some them them, might question Southwest those ask a

capability for- going in airplane to fit. initial goes a change off trade to that Safran it an a inclined. on take be bit positive. eye or approach at airlines a aircraft, where works. and content change line aircraft to The of one And unclear Airbus from provider retrofit built the so operate on, with airlines be something is the Safran I choice how if program offerable going that within satellite any broadly different in to feel another, generically very constellation. that hardware communication line as the to a specific moved they that little that’s announced other fit That’s networks. here it’s kind what is can going was to other one move on. types from being we show opportunities, about. is typically and It’s it antenna use in to airplanes, they to antenna bit one suite of is on the be. the also the that hardware but major that and provider or we’re little time they second rate’s and The And really keep more idea can a with here they’re idea that and goal, to on make make multiple were bit, to constellation, pick provider put reaction show industry as Typically, that airlines get Germany content It’s system little This the networks it’s at a separate with from going to time, to doesn’t with aftermarket a have work an is an over to June, network our who another start it’ll talked like

could third is then with forever. that. pretty talk the one one the we’re excited about this Lilium. So about And eVTOL I

space. the we a may in I design that it’s hardware, exciting. series I our I those whole to always not pretty should going who are that of interested at very mean, electric Lilium, demand announcements. our system we’re capability space, think do it is think in but expect we exciting. much the And have in I have find like

I be aircraft bunch so. over think next going flying of the we’re to a year or on

And so tuned. stay

Again, will differ. those announce as We people we reasonable can can.

space and of really significant near something it’s the noise. people pessimistic the are travel. Some real becoming urban electric for possibility to greener Other much in strong And people a about think very congestion a way it’s term. solution the

very some there So are lofty out there. predictions volume

but to they necessarily not exist. committed those, do We’re

So necessary architecture. the are that’s development way we’re system our we approaching for funding this work is the industry

product control we our So stay capabilities in match. we mix and of can and

aircraft. or whole aircraft We’re for wouldn’t capabilities do developing unique applicable aircraft we we project for suite specific that our list. efforts except expecting pay these that being to of it to are their development where are on But are a to customers their

little architecture have point, of it’s incurred going our cost. a that the shared funded. basic be the will costs So most are bit At to of and been Lilium, this with a effort forward largely already

not We’re from this at that drain margins point, major is three. be going shouldn’t what describe to a allowed our forward. this those think point it on but And I that’s on enough

your from question. Truist Please Securities. with comes question Michael next Our Instructions] proceed with Ciarmoli [Operator

good it’s Pete, to space maybe going to stay on It just you’re other when certainly not potential development, should taking the we probably questions. like the operators mean, tied guess to of to you’re this like or Lilium, some I maybe Thanks Eclipse. this but port some ? other a a us remember fun crowded but for expect system in morning guys. I there. out Hey, Lilium to see very right specifically revenue can doing any you now. of sounds to ramp-up question,

jump in not, how knows differences are these in going there hard whole nobody involved. to that to get late lot to these underway you losers. if winners, are are of and is to is safe going too just of develop. what once to kind to I it’s trying to win And to said, we be point, it’s to architecture going in It’s be who’s efforts are aircraft tell. too it’s say is unclear the some involved, again, the to a It’s out. development in. real the terms well think be time who’s think this There thing’s be that like certification of do to later to going going companies be if and want different and the if But now be contenders going At that to you’ve think I shake early everybody’s proceeding.

aircraft electrical endeavoring with So some development may But are in requirements may what the program funded we stay role that internally specific desire. our be over do of terms other may want we various reasonable technology. play of play don’t and and like in investing product too we our also systems into get control so our skis a customers to is far have that come to funded development in our lighting again, or to require lines of that we in the or

going the in ourselves they be that means largely next balance nailed for and down developed for customization over that’s at XXXX, and are years where think half, position to a pay preparing two systems we’re a are XXXX We as the So we certifications the for going basic and of we timeframe. year are most. the architecture That these to seeking and pay gearing sometime going take, have for. the And reasonable, system most forward, that’s companies and balanced to what to development.

think in can- positive? do guidance, the sequentially, second you now, you back guess, at half? looking think can can flow you at right the just guys half, the cash you then you with I higher be income And Okay. second to generate costs think do looking the mean, do step-up I operating And you

for Yeah, Mike. Sorry, sure.

million XXX right quarter to sales. million point per breakeven Our XXX GAAP in around is

EBITDA in about release, you XXX million the sales, press we’re So at in, in an at calculation right point our adjusted here. if adjusted breakeven EBITDA at look

quarter, for I X that in bit where CapEx requirements, we’re but they we million, million that’s come at while are estimating now. lower XX than may estimating Our think the them a or

XXX quarter in up per positive So think when the I XXX our earlier, as we north million cash to to working the of generate And I we assuming million, there. get mentioned supply check. flow, sales, challenge can in is chain start we capital keep

until a you on all order shelf that you a stuff need Our you dollars in component receivables get you an stuff you and have ship the that good $XX the are deliver piece But sitting on shape. last buy and missing worth of million don’t you’re in. to

managing again, So working inventory at terms that growth in sales we’re the in to it, ramp-up but we’re challenge better that’s and expecting. part getting the doing inventory, of of of relates part capital but there

you not second our in expecting saw at growing the We’re the quarter. inventory to continue level

million last then might depending the on facility? when you the should I the on based could mean, we on in credit I interest higher. are facility? what just, going expense? moving the paying elaborate be annual of annual term, the I out spread it be maybe market the interest right figure asset the increase X.X I for facilities, running for What and get term this, close you but even one, thinking kind in new the against mean, And clearly and to Okay. maybe can asset credit you you’re else based guess probably think I now. mean,

Yeah.

point we but finalized are to pieces So both details don’t going that based. be have the to SOFR yet,

over there’ll the maybe on spread. and and that, three then get We’re to months. the half, expecting SOFR And between next six a be top of to three up

on on type be So most leverage. working based that. then details yet, Still going of not it the term note, I to spread this measurement of the that how experience based can’t spread’s the over because SOFR And a it’ll of through the some be increase you to has on- an much interest it’ll determined give there. ABL, likely be what on determined been our be details be and but year. [indiscernible] there we’re will

last Okay. one. And then just the

XX-month your with trailing kind EBITDA, leverage I the defining only XX lenders, using adjusted we the look what’s at number just months. reported million trailing are if X about Because, now? are of on guys a you guys mean, As you

your of currently what sitting leverage guys at ratio you of facility- sort today for are kind So

the revolving Yes. the end and on Based agreement, the quarter. over little credit calculation the second of we’re at a four

to projecting drop. We’re that

right. All Thanks Perfect. Okay. guys.

your Our from Securities. question Please question. proceed is Tanwanteng Jon CJS with next with

what’s All for right. the on FLRAA FARA the the and follow-up. Thanks Pete, programs? update

On that are you what the FARA program? asking? Is

Yes.

delayed a little , Well, has bit. Okay. program the been FLRAA

is the in a months think award the saying army now which two expected before. from late-October I timeframe, slide what of mid-October, was about is

we Bell As for if on changer are very the and team, us. Bell, team, will be significant that to reminder, it a goes game heavily a Textron award, very the

or team. less the much involved on are Lockheed Sikorsky We

for program although The So for if that subsequent some be don’t you it FARA exactly. direction, date there us, we more substantially, thing would would negative I and to play has goes a been out off award. opportunities a that have pushed that have

that’s think I been and pushed a another off year year or like half.

So it’s select. probably in the XXXX-XXXX down timeframe for

big talk is that’ll again, hopefully probably, decided. the before FLRAA So we deal, be and

the this at Bell in point. camp firmly We’re

for be that company. good So our would

the that there the in on of kind going programs What’s Pete. expected business? your Thanks are test outlook it. and [indiscernible]? What’s you Got

or rate test in thought. shipments, That’s our we’re The one be to June, been going to sore kind test understand. will been yet with be thought we we was of programs, we that government at couple calendar what And the of think seeing thought in we end year October the up beginning for the we’ve the order kind of going into next been bit substantial a this of that are we There to keeping awarded June operating one slow, thought radio slid. a was have be one was has a that of those is business We And the year. of happen that both so. the not That’s going awarded the latest growth spot. awarded slide of but from That’s going one to month. the told.

that’s moved are those date And also seems generally a our have transit test the like lost major little business, the So we but these pursuits subway our of theme programs, award those business. days. along other bit. sliding. It the the And test train keeps and haven’t lines

general process. pressures but COVID long I that down and think work slowed have budget We in situational, and still from target somewhat have a very it’s list. home

list. we little nothing’s less thought bit the now just that fact, It’s off a things In that midyear to definite. come target awarded get going are were

see continuing obviously We get some to there bookings XXXX. in to push in we’re need growth it. that business to So

in hopefully this and second still year, term, have delays. of adjust we’ll what push we’re half bookings we can doing optimistic as we’re but term always, the seeing So to long to just not, short they come pretty If in.

Thanks, it. Got Pete.

Please question with proceed is Securities. with from Ciarmoli question. Our next your Truist Michael

taking Thanks Hey follow-up. guys. the for

of second the XXX pieces of chain the slower I ramp around the getting issues. of components, supply restart? are guess and looking Just the of driver, at here challenges some sort obviously impacting you you are into chain the kind what’s into on these down? your more to sensitive Have top a the end your, of half, the how was kind and the understand those with the biggest rate AXXX, supply to Max, guidance or kind trying ramp moving that really with taking Just of of rates production factored deliveries? the

it’s it getting when backlog fell, No, bill commodities puts deal big the rate we strong the year, on can Book way our big calendar with we is out, fell on ramp months. those went lead XXXX. accordingly chain, the and half support material many, disproportionately have is Michael. programs, there’s some And second to Yeah, And real orders products. to the for great. last is and just started way that and of something when times for takes of had we is is really schedule some get the many question supply but anticipated over When lot to a customers great that the we want major orders?

to the guided was into to an So XXX. we year went range the that above we with internal that XXX well plan

as of chain going programs. supply in unique expectation respond? struggles, all those moved position macroeconomic we’ve are We’re to a to we’ve of an about troubles kind reduction a a probability As it down major the ramp of through not kind rates chains It’s tough a in Those demand forward lessening It’s to weighted experienced really a in direction. of continue. right supply issue not how really going major going any on going how customers. kind It’s comes from year of really are in the is environments. our and

went So perspective that be quarter there into $XXX That We somewhere thinking are in could at wrong, that that internally into we was the going ended think go million second I range. should and up we I XXX. our mentioned the things quarter.

down come XXX you over to the months, If six numbers you responsibly XXX end. run from high those on

not So reduction that’s demand a in was. what our Certainly, customers. thinking it’s from

it. Got

Thanks Okay. guys.

reached question-and-answer for the now back have over call closing turn like to I’d to We of a end session. management comments. the

your today. Thank you for time

have a up exciting to half second XXXX, We’re of well us interesting Thanks your in good and will set an day. for for which looking interest forward and XXXX. we hope Astronics

today’s conference. This concludes

you participation. your You your lines for we thank time, may this disconnect at and