10-Q 1 form10_q.htm FORM 10-Q Form 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

[X]   Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  For the quarterly period ended October 2, 2004
 

or

[  ]   Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  For the transition period from__________ to__________

Commission File Number  0-7087

ASTRONICS CORPORATION
(Exact name of registrant as specified in its charter)

     

New York
(State or other jurisdiction of
incorporation or organization)

 

16-0959303
(IRS Employer
Identification Number)

     

130 Commerce Way East Aurora, New York
(Address of principal executive offices)

 

14052
(Zip code)

     

(716) 805-1599
(Registrant's telephone number, including area code)

NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(g) of the Act:
$.01 par value Common Stock, $.01 par value Class B Stock
(Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes  [X]

No  [  ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).

Yes  [ ]

No  [X]

As of October 2, 2004 7,761,512 shares of common stock were outstanding consisting of 5,898,173 shares of common stock ($.01 par value) and 1,863,339 shares of Class B common stock ($.01 par value).

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ASTRONICS CORPORATION
Consolidated Balance Sheet
October 2, 2004
With Comparative Figures for December 31, 2003

      (Dollars in Thousands)
      October 2, 2004   December 31, 
      (Unaudited)   2003
Current Assets:                
Cash   $ 11,383     $ 11,808  
Accounts Receivable     5,677       4,383  
Inventories     6,607       5,707  
Prepaid Expenses     1,047       1,378  
  Total Current Assets     24,714       23,276  
                   
Property, Plant and Equipment, at cost     25,063       24,335  
Less Accumulated Depreciation and Amortization     10,008       9,216  
  Net Property, Plant and Equipment     15,055       15,119  
                   
Deferred Income Taxes     1,124       1,165  
Goodwill     2,518       2,444  
Other Assets     3,403       3,470  
  Total Assets   $ 46,814     $ 45,474  
               
               
Current Liabilities:                
Current Maturities of Long-term Debt   $ 901     $ 896  
Net Current Liabilities of Discontinued Operations     494       155  
Accounts Payable     2,896       1,617  
Accrued Payroll and Employee Benefits     1,340       1,278  
Other Accrued Expenses     545       563  
  Total current liabilities     6,176       4,509  
                   
Long-term Debt     12,027       12,482  
Supplemental Retirement Plan     4,988       4,718  
Net Long-term Liabilities of Discontinued Operations     -       397  
Other liabilities     550       428  
                   
Common Shareholders' Equity:                
Common Stock, $.01 par value                
  Authorized 20,000,000 shares, issued                
  6,558,809 in 2004, 6,483,128 in 2003     66       65  
Class B Common Stock, $.01 par value                
  Authorized 5,000,000 shares, issued                
  1,986,953 in 2004, 2,042,926 in 2003     19       20  
Additional Paid-in Capital     3,303       3,269  
Accumulated Other Comprehensive Income      540       365  
Retained Earnings     22,864       22,940  
        26,792       26,659  
Less Treasury Stock: 784,250 shares in 2004                
  and 2003     3,719       3,719  
  Total Shareholders' Equity     23,073       22,940  
                   
      $ 46,814     $ 45,474  
                   
See notes to financial statements.

 

ASTRONICS CORPORATION

Consolidated Statement of Income and Retained Earnings
Period Ended October 2, 2004
With Comparative Figures for 2003

(Dollars in Thousands)
(Unaudited)
Nine-Months Ended Three-Months Ended
  October 2, 2004   September 27, 2003   October 2, 2004   September 27, 2003
Net Sales $   26,358  $    24,855  $      8,449  $      7,607
Costs and Expenses:
Cost of products sold   22,241   19,935     7,469     6,505
  Selling, general and           4,381         1,363         1,488
  administrative expenses     3,895
  Interest expenses, net of              143              61              50
  interest income of $72 in
  2004 and $140 in 2003        203
Total costs and expenses   26,339   24,459     8,893     8,043
Income (loss) from Continuing 
Operations Before Income Taxes          19        396      (444)      (436)
Provision for Income Taxes          95        156        (85)      (156)
Income (loss) from Continuing Operations        (76)        240      (359)      (280)
Income (loss) from discontinued Operations   -         312  -         (17)
Net Income (loss) $        (76)  $         552  $       (359)  $       (297)
             
Retained Earnings:
Beginning of period $   22,940  $    42,831
Spin off of MOD-PAC CORP.  -  (21,003)
End of period $  22,864   $   22,380 
               
Earnings (loss) per share:
Basic Earnings (loss) per share:
Continuing operations $ (.01) $ .03 $ (.05) $ (.04)
Discontinued operations - .04 - -
Net Income (loss) $ (.01) $ .07 $ (.05) $ (.04)
Diluted Earnings (loss) per share:      
Continuing operations $ (.01) $ .03 $ (.05) $ (.04)
Discontinued operations - .04 - -
Net Income (loss) $ (.01) $ .07 $ (.05) $ (.04)
     
See notes to financial statements.

ASTRONICS CORPORATION

Consolidated Statement of Cash Flows
Nine-Months Ended October 2, 2004
With Comparative Figures for 2003

(Dollars in Thousands)
(Unaudited)
          October 2, 2004     September 27, 2003
Cash Flows from Operating Activities:
Income (loss) From Continuing Operations $ (76) $ 240
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 995 911
Other 387 320
    Cash flows from changes in operating assets and liabilities, excluding effects of acquisitions:            
Accounts Receivable (1,231) (111)
Inventories (841) 356
Prepaid Expenses (13) (348)
Accounts Payable 1,259 307
Income Taxes 386 (433)
Accrued Expenses 191 (289)
Net Cash provided by Operating Activities 1,057 953
Cash Flows from Investing Activities:
Additions to Other Assets (204) (147)
Capital Expenditures (682) (286)
Net Cash used in Investing Activities (886) (433)
Cash Flows from Financing Activities:
  Principal Payments on Long-term Debt and Capital Lease 
Obligations (507) (493)
Due from MOD-PAC CORP. - 4,751
Proceeds from Issuance of Stock 4 24
Purchase of Treasury Stock - (1,104)
Net Cash (used in) provided by Financing Activities (503) 3,178
Effect of Exchange Rate Change on Cash (35) 23
Cash (used in) provided by Continuing Operations (367) 3,721
Cash (used in) Discontinued Operations (58) (269)
Net increase (decrease) in Cash and Cash Equivalents (425) 3,452
Cash and Cash Equivalents at Beginning of Period 11,808 7,722
Cash and Cash Equivalents at End of Period $ 11,383 $ 11,174
   
Cash payments for:
Interest $ 290 $ 290
Income taxes  56 1,009
See notes to financial statements.

 

ASTRONICS CORPORATION

Notes to Financial Statements


October 2, 2004

1)

Basis of Presentation

The accompanying unaudited statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. Operating results for the nine-month period ended October 2, 2004 are not necessarily indicative of the results that may be expected for the year ended December 31, 2004.

   
 

The balance sheet at December 31, 2003 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

   
 

For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation's (the "Company") 2003 annual report to shareholders.

   
Stock Based Compensation - The Company accounts for its stock-based awards using the intrinsic value method in accordance with Accounting Principles Board Opinion No. 25 and its related interpretations.  The measurement prescribed by APB Opinion No. 25 does not recognize compensation expense if the exercise price of the stock option equals the market price of the underlying stock on the date of grant.  Accordingly, no compensation expense related to stock options has been recorded in the financial statements.

For purposes of pro forma disclosures, the estimated fair value of the Company's stock options at the date of grant is amortized to expense over the options' vesting period.  The Company's pro forma information for the 2004 and 2003 first nine-months and third quarters are presented in the table below:

(Dollars in Thousands)
  (Unaudited)
  Nine-Months Ended   Three-Months Ended
    October 2, 2004     September 27, 2003     October 2, 2004     September 27, 2003
                       
Income (loss) from Continuing Operations as reported   $ (76)   $ 240   $ (359)   $ (280)
                       
Adjustments to record compensation expense for stock option awards under the fair value method of accounting   $ (268)   $ (375)   $ (79)   $ (98)
Pro Forma Income (loss) from Continuing Operations   $ (344)   $ (135)   $ (438)   $ (378)
                       
Net Income (loss) as reported   $ (76)   $ 552   $ (359)   $ (297)
Adjustments to record compensation expense for stock option awards under the fair value method of accounting   $ (268)   $ (162)   $ (79)   $ (98)
Pro Forma Net Income (loss)   $ (344)   $ 390   $ (438)   $ (395)
Pro Forma Basic Earnings (loss) Per                        
Share:                        
Continuing Operations   $ (.04)   $ (.02)   $ (.06)   $ (.05)
Net Income   $ (.04)   $ .05   $ (.06)   $ (.05)
Pro Forma Diluted Earnings (loss) Per                        
Share:                        
Continuing Operations   $ (.04)   $ (.02)   $ (.06)   $ (.05)
Net Income   $ (.04)   $ .05   $ (.06)   $ (.05)

   
2)

 

 

 

 

Discontinued Operations

On September 26, 2002, the Company announced the spin-off of its wholly owned subsidiary MOD-PAC CORP., which operated the Printing and Packaging business segment. That spin-off was completed on March 14, 2003. As such the net assets and equity of MOD-PAC CORP. were removed from the balance sheet of the Company on March 14, 2003 resulting in a reduction of the Company's retained earnings and related net assets of $21.0 million. In December of 2002 the Company announced the discontinuance of the Electroluminescent Lamp Business Group, whose business involved sales of microencapsulated electroluminescent lamps to customers in the consumer electronics industry. The operations of the printing and packaging business segment through the spin-off date of March 14, 2003 and the results of operations of the Electroluminescent Lamp Business Group have been reported as discontinued operations in the financial statements of the Company.

   
3) Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method. Inventories are as follows:
(in thousands)          
    October 2, 2004     December 31, 2003
    (Unaudited)      
           
Finished Goods $ 655   $ 501
Work in Progress   1,077     1,166
Raw Material   4,875     4,040
  $ 6,607   $ 5,707

4)

Comprehensive Income

Comprehensive income (loss) consists of net income (loss), foreign currency translation adjustments and mark to market adjustments for derivatives. Total comprehensive income (loss) was $(165) and $(247) for the third quarter of 2004 and 2003 respectively and $99 and $1,104 for 2004 and 2003 year to date.

5)

Earnings Per Share            
               
  The following table sets forth the computation of earnings (loss) per share:
               
 

Nine-Months Ended

Three-Months Ended

(in thousands, except for per share data)
  October 2,
2004
    September 27,
2003
    October 2,
2004
    September 27,
2003
Income (loss) from continuing operations $             (76)    $             240    $            (359)    $            (280)
Income (loss) from discontinued operations    -     
           312
     -                  (17)
Net Income (loss) $             (76)    $             552    $            (359)    $            (297)
Basic earnings (loss) per Share weighted average shares           7,758             7,768             7,762             7,736
Net effect of dilutive stock options    -                   56      -       - 
Diluted earnings per share weighted average shares           7,758             7,824             7,762             7,736
                       
Basic earnings (loss) per share:                      
Continuing operations $          (0.01)    $            0.03    $           (0.05)    $           (0.04)
Discontinued operation    -                0.04      -       - 
Net Income (loss) $          (0.01)    $            0.07    $           (0.05)    $           (0.04)
                       
Diluted earnings (loss) per share:                      
Continuing operations $          (0.01)    $            0.03    $           (0.05)    $           (0.04)
Discontinued operation    -                0.04      -       - 
Net Income (loss) $          (0.01)    $            0.07    $           (0.05)    $           (0.04)
               
6) Supplemental Retirement Plan and Related Post Retirement Benefits        
             
  The Company has a non- qualified supplemental retirement defined benefit plan for certain executives. The following table sets forth information regarding the net periodic pension cost for the plan.
                       
                       
     

Nine-Months Ended

Three-Months Ended

 

(in thousands)

 

October 2, 2004

   

September 27, 2003

 

October 2, 2004

   

September 27, 2003

                       
  Service cost

$

18

 

$

21

$

6

 

$

7

  Interest cost  

234

   

263

 

78

   

88

  Amortization of prior service cost  

82

   

81

 

27

   

27

  Amortization of net actuarial losses  

-

   

24

 

-

   

8

             Net periodic cost

$

334

 

$

389

$

111

  $

130

             
  Participants in the non-qualified supplemental retirement plan are entitled to paid medical, dental and long-term care insurance benefits upon retirement under the plan. The following table sets forth information regarding the net periodic pension cost recognized for those benefits.
                       
     

Nine-Months Ended

Three-Months Ended

 

(in thousands)

 

October 2, 2004

   

September 27, 2003

 

October 2, 2004

   

September 27, 2003

                       
  Service cost

$

3

 

$

3

$

1

 

$

1

  Interest cost  

13

   

15

 

3

   

5

  Amortization of prior service cost  

13

   

13

 

5

   

5

  Amortization of net actuarial losses  

-

   

2

 

-

   

(1)

             Net periodic cost

$

29

 

$

33

$

9

  $

10

 

ASTRONICS CORPORATION

Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations

(The following should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Company's Form 10-K for the year ended December 31, 2003.)

The following table sets forth income statement data as a percent of net sales:
             
       

Percent of Net Sales

 

Percent of Net Sales

       

Nine-Months Ended

 

Three-Months Ended

       

October 2, 2004

 

September 27, 2003

 

October 2, 2004

 

September 27, 2003

                             
Net Sales  

100.0

%  

100.0

%  

100.0

%  

100.0

%

                         
Cost of products sold  

84.4

   

80.2

   

88.4

   

85.5

 
Selling, general and                        
  administrative and interest expense  

15.5

   

18.2

   

16.9

   

20.2

 
       

99.9

%  

98.4

%  

105.3

%  

105.7

%

                             
Income (loss) from Continuing Operations Before Income Taxes

0.1

%

1.6

%

(5.3)

%

(5.7)

%

                         

 

 

NET SALES Net sales for the third quarter of 2004 increased 11% to $8.4 million compared with $7.6 million for the same period last year. As compared to the 2003 third quarter sales increased to all three of the aerospace markets served. Sales to the business jet market increased $0.4 million or 22% to $2.4 million during the third quarter of 2004. Sales to the business jet market for the third quarter of 2003 totaled $2.0 million. Military sales in the third quarter of 2004 were $4.3 million, up 10.3%, or $0.4 million from $3.9 million in the third quarter of 2003. Sales to the commercial transport market in the third quarter of 2004 were $1.5 million compared with $1.3 million in the third quarter of 2003, an increase of $0.2 million or 15%.

For the nine-month period ended October 2, 2004, Astronics had net sales of $26.4 million, a 6 % increase over the first nine-months of last year. This increase was the result of a $1.5 million increase in business jet market sales to $7.6 million in 2004 from $6.2 million in 2003 and $0.3 million in higher sales to the commercial transport market as compared to the prior year. Sales to the commercial transport market were $5.0 million for the first nine-months in 2004 and $4.7 million for the same period of 2003. These increases more than offset the $0.4 million decline in sales to the military. Excluding $0.7 million in sales for the original U.S. F-16 NVIS program completed in the first half of last year, sales to the military for this year's first nine-months were up $0.3 million.

These increases as compared to 2003 for both the third quarter and year to date are primarily a result of improvements in the overall aerospace market generating increased demand for our products.

   
EXPENSES AND MARGINS Cost of products sold as a percentage of net sales increased 2.9 percentage points to 88.4% for the third quarter of 2004 compared to 85.5% for the same period last year. The increase is primarily the result of increased engineering and development costs related to new products that are in the design and development stages. These increases are a result of an increase in engineering personnel as well as increased costs for goods and services supplied by vendors such as qualification testing and out sourced design work as compared to last year's third quarter. As compared to last years third quarter the company's spending net of nonrecurring engineering revenue for these efforts increased by approximately $0.4 million to $1.2 million. Excluding the effect of the increased spending on engineering and developmental costs gross margins would have improved slightly as compared with last year. For the first Nine-months cost of products sold as a percentage of net sales increased 4.2 percentage points to 84.4% in 2004 from 80.2% for the same period of 2003. The increase is primarily a result of a $1.3 million increase in net engineering and development spending as compared to the same period last year. We expect this spending to continue into next year as we continue to have opportunities to design new products for next generation aircraft.

Selling, general and administrative and interest cost as a percent of sales was 16.9% for the third quarter of 2004 compared with 20.2% for the same period of 2003. The decrease is primarily attributable to a reduction in personnel related costs as compared with the same period last year and to a lesser extent an overall reduction in general spending activity for the period. During the third quarter of 2004 the Company recorded a charge of $0.15 million to bad debt expense relating to the write down of a note held by the company. The note was entered into in 2001 when the Company sold a former production facility and relocated to its current operation in East Aurora New York. The face value of the note is $0.6 million and is being carried at $0.3 million as of October 2, 2004. The issuer of the note has missed the last three quarterly interest payments and is not in compliance with covenants in the agreement. The Company is actively pursuing collection of the note. Offsetting this charge was the reversal of approximately $0.1 million of accrued variable compensation that had been recorded during the first and second quarters of 2004. Year to date Selling, general and administrative and interest costs as a percent of sales decreased to 15.5% in 2004 compared with 18.2% in 2003. The decrease is primarily attributable to a reduction in personnel related costs as compared with the same period last year and to a lesser extent an overall reduction in general spending activity for the period and an increase in Sales.

   
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES

The Company incurred a loss from continuing operations before taxes for the third quarter of 2004 of $0.44 million or 5.3% of sales compared with a loss of $0.44 million or 5.7% of sales or the same period of 2003. While Sales increased $0.84 million this was offset by the increased engineering and development costs offset partially by the decrease in selling, general and administrative expenses that were previously discussed. On a year-to-date basis income from continuing operations before taxes declined from $0.40 million in 2003 to $0.02 million in 2004. This decrease is also a result of the increased engineering and development costs offset partially by the decrease in selling, general and administrative expenses.

   

TAXES

Our effective income tax rate or benefit recorded as a result of the loss during the third quarter of 2004 was 19.1 % compared to 35.8 % for the same period last year. The increase of the effective rate, or reduced benefit, during this period is a result of the portion of our tax that is based on capital rather than on income representing a greater portion of our income tax expense for the period as well as profits taxed at the state level not being offset by losses incurred in other operations. On a year to date basis our effective rate for 2004 is greater than our pre tax income for the reasons discussed previously. Our effective tax rate for the first nine- months of 2003 was 39.4%.

   
   
EARNINGS PER
SHARE FROM CONTINUING OPERATIONS

Diluted Earnings (loss) per share from continuing operations was $( .05) for the third quarter of 2004 and $(.04) for the third quarter of 2003. Year to date diluted earnings (loss) per share from continuing operations were $(.01) and $.03 for 2004 and 2003 respectively. Changes in the number of shares outstanding did not impact the calculation significantly.

   
INCOME FROM
DISCONTINUED
OPERATIONS

Income from discontinued operations during the third quarter of 2004 was $ 0 as compared with a loss of $0.02 million for the same period in 2003. The third quarter of 2003 included activities of the discontinued Electroluminescent Lamp Group. Year to date income from discontinued operations was $0 and $0.31 million for 2004 and 2003 respectively. 2003 discontinued operations included activities through March 14, 2003 for it's former subsidiary, MOD-PAC CORP.. MOD-PAC CORP. was spun off effective March 14, 2003. Also included in this period was the activities for the Electroluminescent Lamp Group that wound down it's operations during 2003. No future impact on income is expected from these discontinued operations.

   
NET INCOME
AND EARNINGS
PER SHARE

Net income (loss) totaled $(0.36) million or $(0.05) per diluted share for the third quarter of 2004 compared to $(0.30) million or $(0.04) per diluted share for the third quarter of 2003. The decreases in net income and earnings per share are primarily a result in the reduction of income from continuing operations and discontinued operations as discussed under those headings. Changes in the number of shares outstanding did not impact the earnings per share calculation significantly. Year to date net income (loss) for 2004 was $(0.08) million or $(0.01) per share compared to 2003 year to date Net income of $.55 million or $0.07 per share.

   

LIQUIDITY

Cash provided by operating activities was $1.1 million during the first nine-months of 2004, as a result of a net loss being offset by depreciation and amortization and changes in working capital components.

The Company's capital expenditures for the first half of 2004 totaled $.68 million. Capital expenditures for the balance of 2004 are expected to be, in the range of $200 thousand to $300 thousand and are expected to be financed from cash on hand and cash flows from operations.

   
  The Company has an $8,000,000 line of credit facility available. As of October 2, 2004 the Company had not borrowed against the line of credit. The line is subject to annual review and is payable on demand. The line of credit, among other requirements, imposes certain financial performance covenants with which the Company maintains compliance.

The Company has a cash balance of slightly over $11 million at October 2, 2004.

The Company believes that cash balances and cash flow from operations will be adequate to meet the Company's operational and capital expenditure requirements for 2004.

   
BACKLOG

The Company's backlog at October 2, 2004 was $25.6 million compared with $17.0 million at the end of the third quarter of 2003 and $18.7 million at December 31, 2003.

   
CONTRACTUAL OBLIGATIONS AND COMMITMENTS

The Company's contractual obligations and commercial commitments have not changed materially from disclosures in the Company's Form 10-K for the year ended December 31, 2003.

   

MARKET RISK

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2003 for a complete discussion of the Company's market risk. There have been no material changes in the current year regarding this market risk information.

   
CRITICAL ACCOUNTING POLICIES Refer to the Company's annual report on Form 10-K for the year ended December 31, 2003 for a complete discussion of the Company's critical accounting policies. There have been no material changes in the current year regarding these critical accounting policies.

   
NEW ACCOUNTING
PRONOUNCE-MENTS

On October 13, 2004, the Financial Accounting Standards Board reached a conclusion on Statement 123R, Share-Based Payment. The Statement requires all public companies to measure compensation cost for all share-based payments (including employee stock options) at fair value. The Statement would eliminate the ability to account for share-based compensation transactions using APB Opinion No. 25, Accounting for Stock Issued to Employees. The Statement becomes effective for interim or annual periods beginning after June 15, 2005. The Company will be required to apply Statement 123R beginning July 1, 2005. Retroactive application of the requirements of SFAS No. 123 to the beginning of the fiscal year that includes the effective date is permitted but not required. At the present time, the Company has not yet determined which method it will use nor has it determined the financial statement impact.

   
FORWARD-LOOKING
STATEMENTS

This Quarterly Report contains "forward-looking statements". Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed or implied by such statements, including general economic and business conditions affecting our customers and suppliers, competitors' responses to our products and services, particularly with respect to pricing, the overall market acceptance of such products and services. We use words like "will," "may," "should," "plan," "believe," "expect," "anticipate," "intend," "future" and other similar expressions to identify forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of their respective dates. These forward-looking statements are based on our current expectations and are subject to number of risks and uncertainties. Our actual operating results could differ materially from those predicted in these forward-looking statements, and any other events anticipated in the forward-looking statements may not actually occur.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Market Risk in Item 2, above.

Item 4.

Controls and Procedures

The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures as of October 2, 2004. Based on that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of October 2, 2004. There were no material changes in the Company's internal control over financial reporting during the third quarter of 2004.

 

 

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.
   
  None.
   
Item 2. Unregistered sales of Equity Securities and Use of Proceeds
  ( c)The following table summarizes the Company's purchases of it common stock for the quarter ended October 2, 2004.
  Period

(a) Total number of shares Purchased

(b) Average Price Paid per Share

(c) total number of shares Purchased as part of Publicly Announced Plans or Programs

(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs

 

Period (a) Total number of shares Purchased (b) Average Price Paid per Share (c) total number of shares Purchased as part of Publicly Announced Plans or Programs (d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 3 - July 31, 2004

-

-

-

432,956

August 1 - August 28, 2004

-

-

-

432,956

August 29 - October 2, 2004

-

-

-

432,956

Total

-

-

-

432,956

 

   
Item 3. Defaults Upon Senior Securities.
   
  None.
   
Item 4. Submission of Matters to a Vote of Securities Holders.
   
 

None

   
Item 5. Other Information.
   
 

None.

   

Item 6.

Exhibits

 

(a) Exhibits

 

Exhibit 31.1 Section 302 Certification - Chief Executive Officer
Exhibit 31.2 Section 302 Certification - Chief Financial Officer
Exhibit 32. Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

   

ASTRONICS CORPORATION

   

(Registrant)

 
Date: November 12, 2004   By: /s/ David C. Burney
David C. Burney
Vice President-Finance and Treasurer
(Principal Financial Officer)