Astronics Corporation (NASDAQ:ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, announced that it has closed on the sale of its facility in Ft. Lauderdale, Florida for total consideration of $9.1 million. Net proceeds were approximately $8.7 million in cash. The Company expects to record a gain in the fourth quarter of 2021 of approximately $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 $14.7 million. Astronics received the first installment of $7.3 million under the grant in September. The Company expects to receive a second installment in the range of $5 million to $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 $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.
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.”