Andrews Annual Report

Dear Andrews Investor,
The fiscal year 2022 was another banner year for Andrews. Benefiting
from our high customer awareness and accessibility, as well as low
labor costs from earlier investments in automation, we delivered
revenue of $261 million and earnings per share of $20.31. Resulting
cash from operations was $55.9 million of which we returned $31.8
million to our stockholders to the form of dividends. These results
were achieved through an acute focus on our product differentiation
strategy. Andrews enters 2023 with leadership positions in two
important product segments--high-end and performance products. As
detailed above, these segments generated significant financial results
in 2022, indicated by high level of profits, strong cash generation, and
a healthy balance sheet.
Our innovation focus is all about speeding up the R&D process to
come out with revised products in the performance, size, and high end
segments yearly. We intend to invest more money into TQM in order
to reduce costs, speed up R&D, while maintaining a high degree of
automation. As a shareholder, you can look to Andrews to continue to
roll out revised high end products every year. This pace sets us apart
from our competitors and keeps us on the leading edge of consumer
demand criteria.
We believe we have great opportunities ahead of us. Andrews has
leading products and technologies for growing markets, strong
automated processes, and a commitment to customer needs. We
have sharpened our product focus and are accelerating the pace of
our innovation to expand our company and offerings giving Andrews
great confidence about our future.
Paul Crane
Chief Executive Officer

ANDREWS CORPORATION
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
INDEX
PART I
Item 1 Business - Overview and Strategy 1
PART II
Item 2 Stock Performance 4
Item 3 Selected Financial Data 5
Item 4 Management Discussion and Analysis 6
Item 5 Financial Statements and Supplementary Data 14
Item 6 Outlook on Company Future 21
PART III
Item 7 Lessons Learned 22
Item 8 Executive Management Team 23

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1
PART I
ITEM 1. BUSINESS
Company Overview
Andrews operates in the electronic sensor manufacturing industry, making sensors for sale and distribution to
other manufacturers. We are in the business-to-business sensor market versus the direct-to-consumer market.
Our sensors are incorporated into products our customers sell to the final consumer. Electronic sensors are found
in everything around us. They are used in cell phones to interpret touch or sound, in radar guns to determine the
speed of cars, and around doors to determine when to open for someone walking through.
Company Strategy
Our goal is to be the leading edge company in the sensor industry via diversification through sharing activities.
What this means for the company going forward, is that we will aim to increase our competitive advantage by
raising differentiation and creating synergy across our business units. In an effort to accomplish this, our business
units will share activities such as marketing, sales force, and manufacturing automation innovation. Through the
use of a shared activities strategy, the firm is better positioned to offer multiple products in differing segments. By
doing so, Andrews creates a diverse offering of products that when packaged together, give the company a
competitive edge over our industry competitors offering products in only one or two market segments.
Business Strategy
Ever since our company began in 2015, our company has built and maintained a strong differentiation strategy.
We gear our products toward a broad target market, with an emphasis on uniqueness as a source for competitive
advantage. Our products are aimed to deliver high customer satisfaction in a constantly evolving market and we
intend to be at the forefront of innovation and thus we price our products to reflect that. It is not our goal to provide
the most affordable product, but rather to provide superior quality products in each market segment. In line with a
strong differentiation strategy, we have held an aggressive stance in sales and marketing, which has allowed
Andrews to become the market share leader in the sensor industry. Operationally we keep our costs minimal
through high levels of automation. By coupling the differentiation strategy and an aggressive sales and marketing
approach, we have made leaps and bounds over the past 8 years in product innovation, sales, market share, and
automation.
Mission
To create and develop electronic products that are on the leading edge of technology. This mission is achieved by
pushing the boundaries of innovation and promoting an undying focus on customer's current and future needs.

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2
Products
The table below lists our current products:
High End
Aubie and Awsum are marketed to the high-end segment of
the industry. These two product offerings allowed the
company to gain an overall segment market share of 37%,
more than any other company in the industry. Unlike the
traditional and low-end segments, the high-end customers
are primarily concerned with their product size, performance,
and age, while least concerned with price. Although one of
our primary goals was to gain market share, we were also
significantly concerned with our customers’ desires. We
listened to their requirements, made adjustments to our
products to align with these requirements, and made these
products easily accessible through our sales force. As a
result, the Aubie and Awsum products are situated at the top
of this market segment in terms of market share and rank as
the top two in the segment.
Traditional
Able and Adam are two products currently offered in the
Traditional market segment. Customers in the traditional
market segment are concerned with the age and price of our
product versus reliability. For the past year we maintained a
23% market share. Adam has been the market share leader
of the two positioned in this segment at 14% (ranked 3
rd
industry wide) and Able has taken 9% of the market share.
Although positioned similarly, Adam had a slight competitive
advantage over Able in this past year due to its recent
revision in performance, size, and age. These attributes
allowed for Adam to maintain a higher market share over
Able, and remain in the top 3 industry-wide for the traditional
segment.
Segment Product Performance Size MTBF
Traditional Able 9.7 10.3 15000
Traditional Adam 10.7 9.3 15000
Low End Acre 4.8 15.2 12500
High End Aubie 16.1 3.9 24500
High End Awsum 15.9 4.1 24500
Performance Aft 17.4 10.4 27000
Performance Alpha 17.4 10.4 27000
Size Agape 9.5 2.7 19000

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Low End
Our low-end market product is represented by Acre. Acre dominated the low-end market segment this year with an
outstanding market-share of 18%, leading the segment. Our low-end market segment customers are primarily
concerned with price and age. In an effort to appeal to this market, Acre is offered at the lowest industry price in
the low-end segment ($17.00). With a 100% customer awareness and 90% customer accessibility rating attained
through our sales and marketing strategy, Acre maintained a strong presence in the low-end segment in 2022.
Performance
Aft and Alpha are positioned for the performance segment, and combined currently hold 32% of the total market
share for this segment and were the top two selling products within the segment. The performance customers are
interested in products that are reliable and have an ideal performance and size. To meet customer demands, we
created two nearly identical products with the customer’s size and performance requirements directly on spot at
17.4 and size of 10.4 with the highest desired reliability rating at 27000 MTBF.
Size
The size segment is represented with our Agape product. Size segment customers are interested in a product with
ideal size, as well as performance and age, while least concerned with price. Agape held an 18% market share
along with the #2 and #3 segment-leaders, and this was likely due to a stock-out of this product. Had we
increased production slightly, we may have seen this product jump to the number 1 spot in the size segment.
Percentage of Revenue by Major Operating Segment
Competition
We continue to position ourselves as a leader in the sensor industry, having achieved high market share
throughout the industry, most notably in the high end and performance segments. We introduced multiple products
in industry segments, but we must continue to expand with new products in other segments to continue to thrive.
As our competitors expand into new markets we lose market share, which has been demonstrated over the past
two years in the low and size industry segments. By maintaining two products in our high, performance, and
traditional segments, we have maintained over a 20% market share in each. We plan on investing and introducing
new products in the low and size segments to regain market share to drive future growth.

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PART II
ITEM 2. STOCK PERFORMANCE GRAPH
Comparison of Five-Year Cumulative Return for Andrews Corp and the S&P 500 Index
* Return assumes dividends are reinvested at value of stock price on Dec 31 each year
+ S&P 500 Index data shown is for hypothetical purposes of this report and is not historically accurate
As of December 31
st
, 2022 Andrews’ stock price closed at $181.03, an increase of $29.36, or 19.4%, over the
$151.67 closing price on December 31
st
, 2021.
$50
$100
$150
$200
$250
$300
$350
$400
2017 2018 2019 2020 2021 2022
S&P 500 Andrews
2017 2018 2019 2020 2021 2022
Andrews*
100$ 147$ 199$ 244$ 288$ 358$
S&P 500 Index+
100$ 113$ 102$ 104$ 124$ 145$
Historical Stock Price
$58.74
$85.17
$112.57
$133.16
$151.67
$181.03
Fiscal year ended December 31, 2017

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ITEM 3. FINANCIAL HIGHLIGHTS
Selected financial data is provided for each period is provided below:
Selected financial data from the consolidated balance sheet for each period is provided below:
(Dollars in Thousands Except Per Share Amounts) 2022 2021 2020 2019 2018
Revenue 260,919$ 250,747$ 260,489$ 268,178$ 252,027$
Gross margin 120,174 118,870 119,268 114,230 107,688
Margin 46.1% 47.4% 45.8% 42.6% 42.7%
Research and development 5,831 5,636 6,309 4,756 7,339
Sales and marketing 25,800 26,800 29,800 29,800 26,000
General and administrative 1,682 2,382 2,693 2,530 3,082
Depreciation 16,333 18,693 18,507 17,293 16,240
Operating income 70,527 65,359 61,959 59,851 55,027
Net income available to shareholders 43,106$ 35,200$ 30,488$ 27,956$ 21,758$
Earnings per common share 20.31$ 16.59$ 13.65$ 12.51$ 9.74$
Shares Outstanding 2,122 2,122 2,234 2,234 2,234
Dividends per common share 15.00$ 10.00$ 8.00$ 5.00$ 2.00$
Net cash provided by operating activities 55,920$ 52,840$ 48,435$ 41,216$ 36,834$
Additions to property, plant and equipment 21,820$ 2,800$ 18,200$ 4,800$ 42,600$
Retirement of long term debt 27,000$ 17,316$ 20,850$ -$ -$
Repurchase of common stock -$ 14,874$ -$ -$ 6,906$
Payments of dividends to stockholders 31,835$ 21,223$ 17,872$ 11,170$ 4,468$
(Dollars in Thous ands ) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash 35,620$ 16,714$ 39,699$ 33,575$ 37,229$
Property, plant and equipment, net 109,113 140,493 156,387 156,693 169,187
Total A ssets 168,659 185,062 223,295 218,211 229,205
Long-Term Debt 26,067 54,000 71,000 91,850 91,850
Stockholders' Equity 131,440$ 120,169$ 119,909$ 108,452$ 91,666$

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6
Selected financial ratios are provided for each period below:
We continue to be very attractive despite the slow in world economies three years ago. Return on equity extends
beyond 30%, exceeding the industry average of 18.2% in 2022. Gross margin has remained steady, achieving
46.1% in 2022, which is above the industry average of 40.5%. We have also maintained high liquidity levels and
higher levels of asset and debt ratios due to the large amount of cash from operations and paying down debt over
the past three years. We believe Andrews will continue to offer great value to the shareholders as we invest in the
future, as evident with the growth in our net profit margin and return on equity over the past several years.
Profitability Ratios 2022 2021 2020
Gross Margin 46.1% 47.4% 45.8%
Net Profit Margin 16.5% 14.0% 11.7%
Return on Assets 25.6% 19.0% 13.7%
ROE 32.8% 29.3% 25.4%
Asset and Debt Ratios 2022 2021 2020
Debt - Equity 0.28 0.54 0.86
Equity Ratio 0.78 0.65 0.54
Liquidity Ratios 2022 2021 2020
Current Ratio 5.34 4.09 2.10
Quick Ratio 5.12 3.43 1.93
Market Value Ratios 2022 2021 2020
Price - Earnings 8.91 9.14 9.76
Market to Book 14.88 12.47 10.11

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ITEM 4. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Overview
Revenue for 2022 grew 4.1% from 2021, largely due to unit sales increasing by 5.9% to 9.8 million units. Revenue
from our Acre product in the low end segment fell 10% due to competitive pricing strategies, but was offset by
growth in our products in the high end and performance segments by 18.0% and 14.2% respectively.
In response to the current business environment and to better utilize resources, management approved several
restructuring actions including reducing capacity in several products.
The cash generation from our business remained strong with cash from operations of $55.9 million. Due to excess
cash, we repaid $27.0 million in debt and our board of directors declared a $15.00 dividend to shareholders.
Looking ahead to 2023 we expect revenues to grow 10% and gross margin to remain flat. We will continue to
invest in TQM strategies that will reduce labor & material costs to improve margins in the long-term.
Dollars in Thousands Ex cept Per Share A mounts 2022 2021 Change
Revenue 260,919$ 250,747$ 10,172$
Gross margin 120,174 118,870 1,304
Gross margin percentage 46.1% 47.4% (1.3%)
O perating income 70,527 65,359 5,168
Net income available to shareholders 43,106$ 35,200$ 7,906$
Earnings per common share 20.31$ 16.59$ 3.73$

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Results of Operations
Certain consolidated statements of income data as a percentage of revenue for each period were as follows:
Our overall revenue for 2022 increased by $10.2 million, or 4.1%, compared to 2021. Unit sales increased by 5.9%
to 9.8 million units sold. Revenue from our Acre product in the low end segment fell 10% due to competitive pricing
strategies, but was offset by growth in our products in the high end and performance segments by 18.5% and
16.9% respectively.
Our overall gross margin dollars for 2022 increased by $1.3 million, or 1.1%, compared to 2021. The increase was
due to the increase in revenue from more units being sold. To a lesser extent, investments in TQM have
contributed to reduced labor and material costs.
Our overall gross margin percentage decreased to 46.1% in 2022 from 47.4% in 2021. The decrease was primarily
due to the gross margin percentage decrease in our Acre product, where we lowered our price 11% to remain
competitive in the low-end segment.
Dollars in Thousands Except Per Share Amounts Dollars
% of
Revenue Dollars
% of
Revenue Dollars
% of
Revenue
Revenue 260,919$ 100.0% 250,747$ 100.0% 260,489$ 100.0%
Cost of sales 140,745 53.9% 131,877 52.6% 141,221 54.2%
Gross margin 120,174 46.1% 118,870 47.4% 119,268 45.8%
Research and development 5,831 2.2% 5,636 2.2% 6,309 2.4%
Sales and Marketing 25,800 9.9% 26,800 10.7% 29,800 11.4%
General and administrative 1,682 0.6% 2,382 0.9% 2,693 1.0%
Depreciation 16,333 6.3% 18,693 7.5% 18,507 7.1%
Operating expenses 49,647 19.0% 53,511 21.3% 57,309 22.0%
Operating income 70,527 27.0% 65,359 26.1% 61,959 23.8%
Interest and other, net 2,719 1.0% 9,988 4.0% 14,049 5.4%
Income before taxes 67,809 26.0% 55,372 22.1% 47,910 18.4%
Provision for taxes 23,733 9.1% 19,380 7.7% 16,768 6.4%
Net income before profit sharing 44,076 16.9% 35,992 14.4% 31,142 12.0%
Profit sharing 970 0.4% 792 0.3% 654 0.3%
Net income available to shareholders 43,106$ 16.5% 35,200$ 14.0% 30,488$ 11.7%
2022 2021 2020

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Performance Segment
The revenue and operating income for each product of the Performance segment for each period were as follows:
Aft
Alpha
The performance segment, which included both the Aft and Alpha products, consistently produced the lowest
margin of all segments due to higher material costs. Revenue and operating income were both below average
compared to all other segments. For the segment, revenue in 2022 grew $6.0 million or 14.2% compared to 2021.
Both Aft and Alpha had similar growth rates, with Alpha growing to $23.7 million in 2022 compared to $20.5 million
in 2021 and Alpha growing to $24.4 million in 2022 compared to $21.5 million in 2021. Operating income continues
to be a low performer compared to our other business segments and this can be attributed to higher material costs,
as well as similar sales and marketing spend as other segments, despite fewer unit sales. Both of our products
lead the segment in market share, but this is a small market.
Low Segment
The revenue and operating income for the Low segment for each period were as follows:
Acre
The low segment, which included the Acre product, was the second highest revenue producer in 2022 for the firm.
Acre continues to have the highest margins of all of the products we offer due to the high degree of automation.
Revenue was $47.5 million in 2022, which decreased by $5.4 million compared to 2021 due to lowering our price
to $17 in 2022, compared to $19 in 2021. We lowered our price in 2022 due to the product being not as well
positioned as our competitors’. The product is set for revision in Q2 2023.
(In Thousands) 2022 2021 2020
Revenue 23,660$ 20,496$ 21,913$
Gross margin 8,308$ 7,392$ 6,949$
Gross margin percentage 35.1% 36.1% 31.7%
Operating income 3,304$ 2,094$ 1,300$
(In Thousands) 2022 2021 2020
Revenue 24,631$ 21,542$ 21,278$
Gross margin 8,759$ 7,723$ 6,591$
Operating income 3,656$ 2,332$ 421$
(In Thousands) 2022 2021 2020
Revenue 47,523$ 52,929$ 66,573$
Gross margin 30,601$ 34,850$ 42,853$

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Traditional Segment
The revenue and operating income for each product of the Traditional segment for each period were as follows:
Able
Adam
The traditional segment, which included both the Able and Adam products, continue to be our second leading
segment for revenue. Even though Adam produced higher revenue at $40.9 million in 2022, Able has higher
margins at 53.7% due to the higher degree of automation. We plan on investing in higher automation levels for
Adam in 2023 to increase our operating income. Able had a decrease in revenue by $7.7 million compared to
2021, which is attributed to the longer R&D periods to revise the product. Able will be revised in Q1 2023 and we
expect it to produce sales similar to that of Adam in 2022 and be the industry-segment leader for the year and is
where we expect much of our expected revenue growth for 2023 to occur.
Size Segment
The revenue and operating income for the Size segment for each period were as follows:
Agape
The size segment, which included our Agape product, contributed the least to overall revenue, earning $26.7
million in 2022, a decrease of 1.9% compared to 2021. Despite the decrease in revenue, operating income
increased by $1.1 million compared to 2021 due to less sales and depreciation expense.
(In Thousands) 2022 2021 2020
Revenue 24,833$ 32,555$ 35,014$
Gross margin 13,324 16,435 17,502
(In Thousands) 2022 2021 2020
Revenue 40,962$ 34,459$ 25,441$
Gross margin 16,497$ 14,421$ 9,493$
(In Thousands) 2022 2021 2020
Revenue 26,723$ 27,238$ 31,989$
Gross margin 11,759 11,851 13,812

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High Segment
The revenue and operating income for each product of the High segment for each period were as follows:
Awsum
Aubie
The high segment, which included both the Awsum and Aubie products, continue to be industry-segment leaders,
having generated $35.4 million and $37.4 million of revenue respectively. Margin was below average for the firm
due to the higher material costs, but is competitive for the segment. The high end segment had revenues increase
by $11 .1 million, or 18% compared to 2021. This increase was due equally to both products in the segment.
Awsum and Aubie consistently performed well and generated similar results.
Operating Expenses
Research and Development. R&D spending increased by $0.2 million, or 3.5%, in 2022 compared to 2021. The
increase can be attributed to the investment in our Acre product as it has been 4 years since its last revision. We
continue to invest in all of our other products to be revised on an annual basis to meet customer demands.
Sales and Marketing. Sales and marketing spending decreased by $1.0 million, or 3.7%, in 2022 compared to
2021. The decrease can be attributed to a reduction in sales within our Acre and Agape products as the two
products had reached significant customer accessibility and it was not beneficial to continue spending at levels in
previous years.
General and Administrative. G&A spending decreased by $0.7 million, or 29.4%, in 2022 compared to 2021. The
decrease can be attributed to cost savings from investments in TQM.
(In Thousands) 2022 2021 2020
Revenue 35,412$ 30,741$ 27,173$
Gross margin 15,439$ 13,457$ 11,089$
(In Thousands) 2022 2021 2020
Revenue 37,174$ 30,787$ 31,108$
Gross margin 15,486$ 12,741$ 10,980$
Dollars in Thousands Dollars
% of
Revenue Dollars
% of
Revenue Dollars
% of
Revenue
Research and development 5,831 1.2% 5,636 2.2% 6,309 2.4%
Sales and marketing 25,800 9.8% 26,800 10.7% 29,800 11.4%
General and administrative 1,682 0.6% 2,382 0.9% 2,693 1.0%
2022 2021 2020

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Gains (Losses) on Equity Investments and Interest and Other
In response to business conditions where competitors have introduced new products in various business
segments, management approved the reduction in capacity across multiple products. Capacity was reduced for all
products except Adam and Aubie. Gain on the sale of capacity was $6.8 million.
In 2022 we invested $6.5 million in TQM, an increase of $4.3 million compared to 2021. The 188% increase in
TQM was due in large part to the effort of reducing R&D cycle time as we continue to aim for a fully automated
production process. Our goal of being fully automated across all existing products is planned for 2025.
Due to excess cash reserves, management approved to repurchase $27.9 million of long-term debt at a price of
$27 million. The buyback did earn a gain of $0.933 million as most of the bonds purchased were priced at a
discount.
Interest paid in 2022 was $3.5 million, a decrease of $6.5 million compared to 2021. The decrease was due to the
repurchase of $27.9 million of long-term bonds.
Provision for Taxes
Our provision for taxes in 2022 was $23.7 million, an increase of $4.3 million compared to 2021. The increase can
be attributed to increased net income. Our tax rate remained at 35.0%.
Liquidity and Capital Resources
As a result of repurchasing long-term debt, our debt as a percentage of stockholders’ equity has fallen to 19.8% as
of December 31, 2022, compared to 44.9% as of December 31, 2021.
Three Years Ended December 31, 2022 (In Thousands) 2022 2021 2020
Gain /(Loss) and other (800)$ 3,049$ 5,189$
Interest 3,519$ 6,939$ 8,860$
(in T housands) 2022 2021 2020
Income before taxes 67,809$ 55,372$ 47,910$
Provision for taxes 23,733$ 19,380$ 16,768$
Effective tax rate 35.0% 35.0% 35.0%
(in T housands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents 35,620$ 16,714$ 40,938$
Short-term and long-term debt 26,067$ 54,000$ 91,850$
Debt as a percentage of stockholders' equity 19.8% 44.9% 75.9%

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13
Cash Flows
Operating Activities
Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and
liabilities.
For 2022 compared to 2021, the $3.1 million increase in cash provided by operating activities was largely due to
changes in working capital by $5.6 million offset by a reduction in depreciation of $2.4 million.
Changes in assets and liabilities as of December 31
st
2022, compared to December 31
st
2021, can be attributed in
large part to a reduction in inventories by $4.8 million. The reductions in inventories are a result of better-than-
expected sales.
Investing Activities
Investing cash flows consist primarily of capital expenditures and the sale of investments.
The increase in cash used for investing activities in 2022 compared to 2021 was primarily due to selling capacity
across multiple products. Capacities for these products were sold for $25.2 million. The sale of these capacities
was offset by investing $3.4 million in new capacity for the Aubie product in our high end segment.
Financing Activities
Financing cash flows consist primarily of issuance and repurchases of common stock, payment of dividends to
stockholders, and issuance and repayment of long-term debt.
The increase in cash used for financing activities in 2022 compared to 2021 was primarily due to repurchasing
$14.9 million in common stock in 2021.
During the year ended December 31
st
2022, we made repayments of long-term debt totaling $27.0 million. We
have paid a cash dividend in each of the past 5 years. The board of directors declared a cash dividend of $15.00
per common share for 2022, and increase from $10.00 in 2021. Total dividends paid for the year in 2022 were
$31.8 million and increase from $21.2 million in 2021.
Due to a large amount of cash provided by operating activities in each of the past three years, we have made it an
effort to repay long-term debt earlier than our contractual obligations totaling $44.9 million.
Contractual Obligations
The following table summarizes our significant contractual obligations as of December 31
st
, 2022:
(in T housands) 2022 2021 2020
Net cash provided by operating activities 55,920$ 52,840$ 48,435$
Net cash used for investing activities 21,820 (2,800) (18,200)
Net cash used for financing activities (58,835) (74,263) (22,872)
Net increase (decrease) in cash and cash equivalents 18,905$ (24,223)$ 7,363$
Series Number Face Value Maturity Date Coupon Rate
13.5S2028 26,067$ 1/1/2028 13.5%

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14
ITEM 5. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Statements of Income 15
Consolidated Balance Sheets 16
Consolidated Statements of Cash Flows 17
Consolidated Statements of Stockholders' Equity 18
Notes to Consolidated Financial Statements 19

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15
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Years Ended December 31, 2022
(In Thousands, Except Per Share Amounts) 2022 2021 2020
Revenue 260,919$ 250,747$ 260,489$
Cost of sales 140,745 131,877 141,221
Gross margin 120,174 118,870 119,268
Margin 46.1% 47.4% 45.8%
Research and development 5,831 5,636 6,309
Sales and marketing 25,800 26,800 29,800
General and administrative 1,682 2,382 2,693
Depreciation 16,333 18,693 18,507
Operating expenses 49,647 53,511 57,309
Operating income 70,527 65,359 61,959
Gain / (loss) and other (800) 3,049 5,189
Interest 3,519 6,939 8,860
Income before taxes 67,809 55,372 47,910
Provision for taxes 23,733 19,380 16,768
Net income before profit sharing 44,076 35,992 31,142
Profit sharing 970 792 654
Net income available to shareholders 43,106$ 35,200$ 30,488$
Common shares outstanding 2,122 2,122 2,234
See accompanying notes

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16
ANDREWS CORPORATION
CONSOLIDATED BALANCE SHEET
(In Thousands) 2022 2021 2020
ASSETS
Current assets:
Cash and cash equivalents 35,620$ 16,714$ 40,938$
Accounts receivable, net 21,445 20,609 21,410
Inventories 2,481 7,245 5,718
Total Current Assets 59,546 44,568 68,066
Property, plant and equipment, net 109,113 140,493 156,387
Total Assets 168,659$ 185,062$ 224,452$
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable 11,152$ 10,893$ 11,536$
Current debt maturing in 12 months - - 5,000
Current portion of long-term debt - - 15,850
Total current liabilities 11,152 10,893 32,386
Long term debt less current portion 26,067 54,000 71,000
Total Liabilities 37,219 64,893 103,386
Stockholders' equity:
Common stock, 2,122 shares outstanding 25,821 25,821 29,438
Retained earnings 105,619 94,348 91,629
Total stockholders' equity 131,440 120,169 121,067
Total Liabilities and Equity 168,659$ 185,062$ 224,452$

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17
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands) 2022 2021 2020
Cash flows provided by (used for) operating activities:
Net Income 43,106$ 35,200$ 30,488$
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 16,333 18,693 18,507
(Gains) losses on sales of assets / writeoffs (7,705) 316 -
Changes in assets and liabilities:
Accounts receivable (836) 801 632
Inventories 4,764 (1,527) 183
Accounts payable 259 (643) (1,374)
Total adjustments 12,815 17,640 17,947
Net cash provided by operating activities 55,920 52,840 48,435
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment (3,400) (2,800) (18,200)
Cash from proceeds for disposal of assets 25,220 - -
Net cash used for investing activities 21,820 (2,800) (18,200)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net - - 15,850
Repayment of debt (27,000) (38,166) (20,850)
Repurchase of common stock - (14,874) -
Payment of dividends to stockholders (31,835) (21,223) (17,872)
Net cash used for financing activities (58,835) (74,263) (22,872)
Net increase (decrease) in cash and cash equivalents 18,905 (24,223) 7,363
Cash and cash equivalents at beginning of year 16,714 40,938 33,575
Cash and cash equivalents at end of year 35,620$ 16,714$ 40,938$

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18
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In Thousands, Except Per Share Amounts)
Number of
shares Amount
Retained
Earnings
Balance as of December 31, 2019 2,234 29,438$ 79,014$
Components of comprehensive income, net of tax:
Net income - - 30,488
Cash dividends declared ($8.00 per common share) - - (17,872)
Balance as of December 31, 2020 2,234 29,438 91,629
Net income 35,200
Repurchase of common stock (112) (3,617) (11,257)
Balance as of December 31, 2021 2,122 25,821 94,348
Net income - - 43,106
Balance as of December 31, 2022 2,122 25,821$ 105,619$

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19
ANDREWS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
Our fiscal calendar is based on the calendar year of January 1 to December 31.
Note 2: Accounting Policies
The preparation of consolidated financial statements are in conformity with U.S. generally accepted accounting
principles.
Note 3: Property Plant and Equipment
We compute depreciation for financial reporting purposes using the straight-line method. Substantially all of our
depreciable property, plant and equipment assets are depreciated over the estimated useful life of 15 years.
Note 4: Borrowings
Our long-term debt at the end of each period was as follows:
In 2015 we began issuing bonds with 10 years to maturity. Over the past three years we have begun repurchasing
those bonds. In 2021 we repurchased $17 million and in 2022 we repurchased an additional $27.9 million, leaving
$26.1 million of long-term debt remaining.
(In Thousands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Property, plant and equipment, gross 245,000$ 280,400$ 277,600$
Property, plant and equipment, accumulated depreciation (135,887) (139,907) (121,213)
Property, plant and equipment, net 109,113$ 140,493$ 156,387$
(In Thousands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
2015 Senior notes due 2025 at 11.3% -$ -$ 17,000$
2016 Senior notes due 2026 at 12.2% - 27,000 27,000
2018 Senior notes due 2028 at 13.5% 26,067 27,000 27,000
Total long-term debt 26,067$ 54,000$ 71,000$

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20
Note 5: Operating Segments
Our net revenue and operating income by operating segment is provided below:
Note 6: Gains (Losses) on Equity Investments, Net
In 2022 we repurchase $27.9 million of long-term debt at a price of $27 million. Below is the breakdown of the
bonds we repurchased:
As a result of selling capacity, we also incurred a gain from those sales. The gain on those sales was $6.8 million.
(In Thousands) 2022 2021 2020
Net revenue:
High End Segment 72,586$ 61,528$ 58,281$
Low End Segment 47,523 52,929 66,573
Traditional Segment 65,796 67,014 60,455
Performance Segment 48,291 42,038 43,191
Size Segment 26,723 27,238 31,989
Total net revenue 260,919$ 250,747$ 260,489$
Operating income (loss):
High End Segment 19,693$ 14,512$ 9,270$
Low End Segment 21,102 24,734 32,551
Traditional Segment 17,129 17,152 12,031
Performance Segment 6,960 4,426 1,721
Size Segment 5,643 4,535 6,386
Total operating income 70,527$ 65,359$ 61,959$
(in Thousands)
Series Number Face Value Purchase Price Gain / (Loss)
12.2S2026 27,000$ 26,055$ 945$
13.5S2028 933$ 945$ (12)$
27,933$ 27,000$ 933$

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21
ITEM 6. OUTLOOK
Over the past several years, Andrews is in a position where we can make any and all investments we would like
without financial restrictions and we are able to do this because we have substantial cash generated from
operations year over year. We generated this cash by investing early on in automation to reduce labor costs and
drive higher margins. For the future we will use the company’s cash from operations to expand and should not
need to generate cash from taking on additional debt or issuing new stock. This will in turn offset the future price
decreases that are expected in the market to keep margins as high as they are.
Andrews has a two-pronged approach to future innovation and growth. The first includes immediate investment in
a new product in both the low and size segments. This will expand Andrew’s market share in these two product
segments and increase revenues. The second includes a continuation of yearly revisions in the high end segments
(high-end, performance, and size). To stay on the cutting-edge of technology and anticipate consumer needs,
annual revisions are needed in the size, high-end, and performance segments. Because we are highly automated,
the R&D cycle was taking longer and longer for new revisions to come online. In order to shorten that cycle we will
invest in TQM strategies to shorten that R&D cycle time. By investing in TQM, we can also keep investing in
automation as we plan to become fully automated across all products by 2025. These investments will ensure
future high margins and offset the annual decrease in prices.
Due to our focus on innovation, as well as our product strategy above, we estimate revenue growth in 2023 of
10%, while gross margin is expected to remain flat. Overall earnings per share will continue to increase; however,
it will be less than previous years as we forecast a 3-4% increase to an estimated $21.00 per share. We look
forward to becoming the market leader in the size segment and maintaining that position in the high end and
performance segments next year. We are able to make such bold predictions due to strong cash investments, high
margins, and new products coming on board in 2023.

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22
PART III
ITEM 7. LESSONS LEARNED
Over the course of this simulation the Andrews team learned many valuable lessons which will be discussed in the
following paragraphs. One of the primary goals for our team in this simulation was to learn how business strategy
affects actual results, and how adjusting our strategy affected actual results, which we believe, was fully
accomplished in the Capstone Simulation.
In one of our first group meetings, we brainstormed what type of strategy approach to the simulation we should
take. After a lengthy discussion, we were all in agreement that the differentiation strategy seemed like the most
appealing for our team. Ultimately, we wanted to create a business and product that would allow us to become the
market share leader in the industry and appeal to every market segment at the same time. We discussed and
attempted different combinations in the simulation to attempt just that.
Our first go at the “test” rounds proved we needed to alter our attempts made towards our goals because we
ended up with an emergency loan, most importantly focusing on our forecasting techniques and monitoring our
competitors’ actions. After a few alterations to spending and automation, we developed a valuable combination of
automation, sales and marketing, and product innovation. We had to apply the foundation of a differentiation
strategy and put it into “play” within the game. In order to do this, we had to create unique products for each
segment, and take into account our customer requirements at the same time. What was important to the customer
was important in our decisions when making adjustments in research and development. Furthermore, we created
an aggressive and extensive sales and marketing strategy. To accomplish the goal of maximizing shareholder
wealth, we set out to dominate market share, by increasing our sales and marketing campaigns. Because we were
creating products in each segment that met and sometimes exceeded customer demands, with the extensive sales
and marketing campaign, it was a perfect combination.
Keeping products innovative and maintaining an aggressive marketing and sales strategy is, however, expensive.
As a result, we decided early on that we must cut costs for this strategy to work in the long run. To do this, our
team had to determine where cost savings could occur, and we ultimately decided automation was a key
determinant to that success. By automating our products early, we learned our manufacturing costs remained
significantly low in the long-run allowing our differentiation and aggressive sales and marketing strategy to grow.
While this required taking on a large amount of debt in the early rounds, it paid off as our combination of attaining a
large market share with high margins lead us to become a “cash cow.”
It was interesting to see how to implement a differentiation strategy, but more importantly I think it was important
for all members of the team to stick to our strategy despite low returns in the early rounds. Some members of our
team were getting anxious because of the heavy investment early on and being a highly leverage firm with
extremely low returns. Once round three came and our stock price began to climb and the returns increased
significantly, the team was much more at ease and happy to have not abandoned our strategy.
Lastly, one of the most valuable lessons that from this specific project was learning to work in a group of diverse
individuals across geographic regions and bring sometimes differing ideas together to ultimately accomplish
outstanding results we can all be proud of. We believe we have accomplished this goal above and beyond our
initial expectations. It is not always easy, but it is worth it in the end. We sincerely appreciate this opportunity to
work together, especially with geographic distance as a barrier as is a realistic preparation for the real-world.

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23
ITEM 8. EXECUTIVE OFFICERS
Executive Officers of the Registrant
The following sets forth certain information with regard to our executive officers as of February 17, 2023:
Paul Crane
Chief Executive Officer
Sarah Breon
President
Missy Miller
Executive VP, GM, Technology and Manufacturing Group
Scott Barker
Executive VP, Sales & Marketing
Dylan Davison
Executive VP, Chief Financial Officer

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