Astronics Corporation 10-K Summary
Business Context and Reporting Period
This Annual Report on Form 10-K covers the fiscal year ended December 31, 2002. Astronics Corporation is a provider of advanced complex lighting and electronic systems for the global aerospace industry, serving major aircraft manufacturers, avionics companies, and aircraft operators. As of December 31, 2002, the company employed approximately 412 people. The company operates manufacturing and office facilities in Buffalo, New York (owned), Lebanon, New Hampshire (owned), and Montreal, Quebec (leased).
Key Financial Metrics
The provided filing text incorporates the primary financial statements, revenue, profit, cash flow, and liquidity data by reference to the 2002 Annual Report to Shareholders. Consequently, specific values for revenue, net income, operating margins, and cash flow are not present in this text. However, the following financial data points are explicitly disclosed:
- Allowance for Doubtful Accounts: The balance increased from $177,000 at the beginning of 2002 to $397,000 at year-end, with $246,000 charged to costs and expenses.
- Debt/Credit Facilities: An unsecured credit agreement of $8,000,000 with HSBC Bank USA was dated February 20, 2003 (post-fiscal year end).
- Equity: As of March 7, 2003, there were 7,751,178 shares outstanding (5,730,055 Common Stock and 2,021,123 Class B Stock). The aggregate market value of shares held by non-affiliates was approximately $44,383,614.
- Dividends: The company has not paid cash dividends in the three-year period ended December 31, 2002, and plans to retain earnings to finance growth.
Material Changes and Operational Highlights
Specific quantitative changes versus the prior period are not detailed in this text as the "Selected Financial Data" and "Management's Discussion and Analysis" are incorporated by reference. Notable operational and structural changes include:
- Corporate Separation: The company executed a Separation and Distribution Agreement with MOD-PAC CORP. dated December 7, 2002, along with related interim services, tax sharing, and employee benefits agreements.
- Leadership Change: David C. Burney assumed the role of Vice President-Finance, Treasurer, and Chief Financial Officer in 2003.
- Competition: The company faces considerable competition from larger entities with greater resources, relying on product innovation and cost management to compete.
Guidance, Risks, and Contingencies
Forward-looking guidance and detailed risk analysis are incorporated by reference to the Annual Report to Shareholders. Based on the text provided:
- Legal Proceedings: There are no material pending legal proceedings other than routine litigation incidental to the business.
- Internal Controls: Management concluded that disclosure controls and procedures were effective as of the evaluation date. No significant changes or material weaknesses were identified subsequent to the evaluation.
- Market Risk: Disclosures regarding market risk are incorporated by reference and not detailed in this text.
- Patents: While the company holds patents related to electroluminescence and instrument panels, it does not consider the successful conduct of any material part of its business dependent on patent protection alone.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in the 2002 Annual Report to Shareholders, as these are incorporated by reference and not listed in this 10-K text.
- Review the Separation and Distribution Agreement with MOD-PAC CORP. to understand the financial and operational impact of the December 2002 separation.
- Confirm the utilization and terms of the $8,000,000 credit facility with HSBC Bank USA established in February 2003.
- Examine the Allowance for Doubtful Accounts increase to $397,000 to assess potential credit risk exposure in the aerospace sector.
- Check the Backlog data referenced on page 22 of the Annual Shareholders' Report to gauge future revenue visibility.