Test Systems Segment Review (refer to sales by market and segment data in accompanying tables)
Sales in the 2013 second quarter decreased to $2.2 million when compared with $2.6 million for the same period in 2012. Year-to-date sales in 2013 decreased to $4.5 million when compared with $5.7 million for the same period in 2012.
Test Systems operating loss for the second quarter of 2013 was $0.6 million compared with a loss of $1.3 million in the same period last year. The year-to-date operating loss was $2.1 million compared with a loss of $2.4 million in the same period last year.
Bookings during the second quarter and year-to-date periods were $0.6 million and $3.7 million, respectively. Backlog at the end of the second quarter was $2.8 million.
Capital expenditures during the second quarter and first half of 2013 were $1.8 million and $3.7 million, respectively, compared with $2.8 million and $4.5 million for the same periods in 2012, respectively. The Company expects capital spending in 2013 to be approximately $5 million to
In July, the Company amended its credit facility to fund the acquisition of Peco and pay off the drawn balances on its line of credit, Senior term note and Canadian note payable. The amendment included a new $190 million term note with principal payments due quarterly through 2018. Scheduled principal payments on this term note due in each of the next five calendar years is: $4.8 million, $9.5 million, $11.9 million, $16.6 million, $19.0 million and $128.2 million in each year from 2013 through 2018, respectively. The Company expects initially its interest expense will increase to about $1.9 million per quarter due to the higher debt level and increased interest rates.
On June 29, 2013, Astronics backlog was $114.5 million, excluding Peco. Peco, acquired in July 2013, had backlog at the acquisition date of approximately $40.0 million. Including Peco, approximately $116.6 million of this backlog is expected to ship by the end of 2013 and $136.6 million is expected to ship over the next four quarters.
The Company expects 2013 revenue to be in the range of $325 million to $340 million. Astronics anticipates that approximately $315 million to $330 million of forecasted 2013 revenue will be from its Aerospace segment, while approximately $10 million of the forecasted revenue will be from its Test Systems segment.
Mr. Gundermann concluded, "We anticipate a strong second half of the year such that our base business will finish 2013 with revenue of $290 to $300 million, and we expect Peco to contribute an additional $35 to $40 million. Peco's impact to our bottom line in the coming quarters is hard to predict as we have not yet completed the required purchase accounting, but we expect the business to produce margins, excluding amortization expense, similar to our existing aerospace business."