Astronics Corporation (NASDAQ:ATRO) stock fell 8.99% (As on November 16, 11:07:18 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Aerospace sales were up $16.4 million, or 17.1%, while Test System sales increased $3.2 million. Consolidated net loss was $14.9 million, compared with net loss of $7.2 million in the prior year. Consolidated adjusted EBITDA decreased to a loss of $0.8 million, or 0.6% of consolidated sales, compared with adjusted EBITDA of $2.8 million, or 2.5% of consolidated sales, in the prior-year period. Bookings were $184.2 million in the quarter resulting in a book-to-bill ratio of 1.40:1. Backlog at the end of the quarter reached another record of $547.1 million for the fourth consecutive quarter. Cash on hand at the end of the quarter was $2.6 million and capital expenditures in the quarter were $1.8 million. Net debt was up to $156.4 million, compared with $133.2 million at the end of 2021. As of November 11, 2022, the Company had approximately $8.0 million in cash and $25.0 million of total liquidity.

ATRO in the third quarter of FY 22 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 18 percent to $131.44 million in the third quarter of FY 22, beating the analysts’ estimates for revenue by 0.17%. Consolidated operating loss was $14.3 million, compared with operating loss of $4.5 million in the prior-year period. Higher operating loss was the result of material and labor inflation, addressing supply chain constraints to meet customer requirements and the lag in price increases implemented where possible to offset higher costs and product mix. Third quarter 2022 operating loss also reflects $4.6 million related to the settlement of a litigation claim, a customer accommodation dispute, and a lease termination settlement. The Company expects to be indemnified by other parties for approximately $1.5 million related to the settlement of the litigation claim and will record the gain as an offset to SG&A when received, likely in the fourth quarter of 2022. The prior-year period benefited by a $1.1 million offset to cost of products sold from the Aviation Manufacturing Jobs Protection (“AMJP”) Program grant.

The company is expecting sales to be in the range of $140 million to $150 million in the fourth quarter of 2022, an increase of 10%, or $14 million. Planned capital expenditures for 2022 are expected to be approximately $9 million to $10 million.