Astronics Corporation has entered into an agreement with the US 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 instalment of $7.3 million under the grant in September. The Company expects to receive a second instalment in the range of $5 million to $6 million during the fourth quarter of 2021 and a final instalment 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 recognised 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 $1.1 million in the third quarter of 2021, $7.3 million in the fourth quarter of 2021 and $6.2 million in the first quarter of 2022.
The company has also sold its Fort Lauderdale, Florida facility for $9.1 million.
David C. Burney, Chief Financial Officer of Astronics noted: “While we have been confident in our ability to stay in compliance with our lending covenants, the incremental cash and income from the sale of the building and the AMJP grant enhances our financial position and provides a larger cushion for the immediate future.”