Astronics to receive US$24 million in cash from combination of AMJP and asset sale

Astronics Corporation has closed on the sale of its facility in Ft. Lauderdale, Florida for total consideration of US$9.1 million. Net proceeds were approximately US$8.7 million in cash. The company expects to record a gain in the fourth quarter of 2021 of approximately US$5.0 million. The sale was a result of the consolidation of the DME lighting and safety operations into its East Aurora, NY operations.

The company also confirmed that it entered into an agreement with the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection Program, or AMJP, for a grant of up to US$14.7 million. Astronics received the first installment of US$7.3 million under the grant in September. The company expects to receive a second installment in the range of US$5 million to US$6 million during the fourth quarter of 2021 and a final installment in the second or third quarter of 2022 upon final confirmation of meeting its grant commitments.

Astronics was required to make several commitments to qualify for the program, including a commitment not to furlough or lay off a defined group of employees during the period of performance. The grant benefit will be recognized ratably over a six-month performance period as an offset to cost of goods sold. The contribution to gross profit by quarter is expected to be US$1.1 million in the third quarter of 2021, US$7.3 million in the fourth quarter of 2021 and US$6.2 million in the first quarter of 2022.

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