Board of Directors Declares Regular Quarterly
Cash Dividend of $0.07 Per Share
Second-Quarter Fiscal 2020 Summary
- Bookings of $29.1 million
- Revenue of $33.5 million
- Operating income of $1.2 million
- Earnings per diluted share of $0.13
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies, today announced financial results for
the fiscal 2020 second quarter ended August 3, 2019.
CEO Commentary
“While we continued to make good progress on our long-term
strategic objectives, our second-quarter results reflect a
confluence of what we anticipate are short-term headwinds affecting
both segments,” said Greg Woods, AstroNova’s President and CEO. “In
the Test & Measurement segment, the ripple effects of the 737
MAX grounding had a more pronounced impact on revenue and margin
mix in the quarter than we had anticipated. This was in part due to
new aircraft shipment reductions but also because several retrofit
printer upgrade orders for existing aircraft were deferred so that
those planes could be kept in service. Our Product Identification
segment was affected by some customer-specific weakness in Asia,
partly attributable to increased global economic uncertainty. These
temporary challenges do not affect our positive long-term view or
the strong underlying fundamentals of AstroNova’s business.
“We continue to invest in new products and technology to drive
high-quality, sustainable growth,” Woods said. “During the quarter
we introduced the QuickLabel® QL-120X, the first tabletop digital
color label printer with an industry-best two-year warranty. In
terms of quality, speed and cost efficiency, we believe that this
new product substantially enhances our competitiveness in the
on-demand digital color label printing market.”
Business Outlook
“We continue to have a positive long-term outlook for our
business and maintain our expectation for modest revenue growth in
fiscal 2020,” Woods said. “While the headwinds we experienced in Q2
are likely to temper our revenue and margin performance in the
near-term, we are confident in our growth strategy and the positive
secular trends supporting our business. This confidence is being
supported by ongoing investments in new products, talent
development and geographic expansion to drive high-quality,
sustainable growth.”
Operating Segment
Results
Product Identification segment revenue in the second
quarter of fiscal 2020 was $22.1 million, a 1.7% increase compared
with $21.8 million in the prior year, as higher sales of supplies
and services offset a decline in hardware sales. Segment operating
income was $2.2 million, or 10.0% of revenue, versus $2.2 million,
or 9.9% of revenue, in the prior year.
Test & Measurement segment revenue in the second
quarter of fiscal 2020 decreased 5.9% to $11.3 million from $12.0
million in the same period of fiscal 2019. Segment operating income
was $1.6 million, or 13.7% of revenue, for the second quarter of
fiscal 2020 compared with $2.8 million, or 23.4% of revenue, in the
comparable period of fiscal 2019.
Hardware revenue was $12.4 million, down 3.7% from $12.9 million
in the prior-year period. Supplies revenue was $18.1 million, up
1.1% from $17.9 million in the same period of fiscal 2019.
Service/other revenue was $3.0 million, consistent with the same
period a year earlier.
Second-Quarter Financial
Summary
Revenue totaled $33.5 million, a decrease of 1% from $33.8
million in the second quarter of fiscal 2019, reflecting lower
sales in the Test & Measurement segment, partly offset by
higher sales in the Product Identification segment.
Gross profit was $12.0 million, or 35.8% of revenue, compared
with $13.4 million, or 39.6% of revenue, for Q2 fiscal 2019. The
decrease in gross profit dollars and margin was attributable
primarily to lower revenue and less favorable sales mix.
Operating expenses were $10.8 million compared with $11.2
million in the same period of fiscal 2019.
Operating income was $1.2 million, or 3.5% of revenue, compared
with $2.2 million, or 6.4% of revenue, in the second quarter of
fiscal 2019.
Net income was $1.0 million, or $0.13 per diluted share, versus
net income of $1.2 million, or $0.17 per diluted share, in the
second quarter of fiscal 2019.
Bookings were $29.1 million compared with $35.8 million in the
second quarter of 2019.
Backlog at August 2, 2019 was $22.3 million, compared with $24.5
million at the end of the fiscal 2019 second quarter.
Board Declares Quarterly
Dividend
On August 26, 2019, the Company’s Board of Directors declared a
regular quarterly cash dividend of $0.07 per share. The dividend,
which represents a cash dividend of $0.28 per share on an
annualized basis, is payable on September 24, 2019, to shareholders
of record on September 16, 2019.
Second-Quarter Fiscal 2020 Conference
Call
AstroNova will conduct an investor conference call at 9:00 a.m.
ET today. To participate on the conference call, please dial (888)
599-8686 (U.S. and Canada) or +1 (323) 994-2093 (International)
approximately 10 minutes prior to the start time and enter
confirmation code 1668596.
You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, August 28 until 12:00 p.m. ET Wednesday, September 4 by
dialing (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820
(International). The passcode is 1668596.
A real-time and an archived audio webcast of the call will be
available through the “Investors” section of the AstroNova website,
https://investors.astronovainc.com.
About AstroNova
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies since 1969, designs, manufactures,
distributes and services a broad range of products that acquire,
store, analyze and present data in multiple formats. The Product
Identification segment offers a variety of hardware and software
products and associated supplies that allow customers to mark,
track and enhance the appearance of their products. The segment’s
two business units are QuickLabel®, the industry leader in tabletop
digital color label printing and TrojanLabel®, an innovative leader
for professional label presses and specialty printers. The Test and
Measurement segment includes the Test & Measurement business
unit, which offers a suite of products and services that acquire,
record and analyze electronic signal data from local and networked
sensors. The segment also includes the AstroNova Aerospace business
unit, which designs and manufactures avionics equipment and systems
that serve the world’s aerospace and defense industries with proven
advanced airborne technology solutions for both the cockpit and the
cabin. The key products include flight deck printers, networking
hardware and related accessories.
AstroNova is a member of the Russell 3000® Index, the Russell
2000® Index, the Russell Microcap® Index and the LD Micro Index
(INDEXNYSEGIS: LDMICRO). Additional information is available by
visiting www.astronovainc.com.
Forward-Looking Statements
Information included in this news release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not statements of historical fact, but rather
reflect our current expectations concerning future events and
results. These statements may include the use of the words
“believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,”
“continues,” “may,” “will,” and similar expressions to identify
forward-looking statements. Such forward-looking statements,
including those concerning the Company’s anticipated performance in
fiscal 2020 and the effect of the grounding of the 737 MAX, involve
risks, uncertainties and other factors, some of which are beyond
our control, which may cause our actual results, performance or
achievements to be materially different from those expressed or
implied by such forward-looking statements. These risks,
uncertainties and factors include, but are not limited to, those
factors set forth in the Company’s Annual Report on Form 10-K for
the fiscal year ended January 31, 2019 and subsequent filings
AstroNova makes with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The reader is cautioned not to unduly
rely on such forward-looking statements when evaluating the
information presented in this news release.
ASTRONOVA, INC. Condensed
Consolidated Statements of Income In Thousands Except for Per Share
Data (Unaudited)
Three Months Ended
Six Months Ended
August 3, 2019
July 28, 2018
August 3, 2019
July 28, 2018
Net Revenue
$33,468
$33,807
$69,649
$65,294
Cost of Revenue
21,491
20,408
43,433
39,784
Gross Profit
11,977
13,399
26,216
25,510
35.8%
39.6%
37.6%
39.1%
Operating Expenses: Selling & Marketing
6,413
6,397
13,178
12,898
Research & Development
1,785
2,029
3,792
3,721
General & Administrative
2,616
2,808
5,615
5,462
10,814
11,234
22,585
22,081
Operating Income
1,163
2,165
3,631
3,429
3.5%
6.4%
5.2%
5.3%
Other Income, Net
(183)
(512)
(550)
(782)
Income Before Taxes
980
1,653
3,081
2,647
Income Tax Provision
29
459
429
639
Net Income
$951
$1,194
$2,652
$2,008
Net Income per Common Share - Basic
$0.14
$0.17
$0.38
$0.29
Net Income per Common Share - Diluted
$0.13
$0.17
$0.36
$0.29
Weighted Average Number of Common Shares - Basic
7,021
6,860
6,996
6,825
Weighted Average Number of Common Shares - Diluted
7,371
7,083
7,310
6,999
ASTRONOVA, INC. Balance Sheet In Thousands
(Unaudited) August 3,
2019 January 31, 2019 ASSETS
CURRENT ASSETS Cash and Cash Equivalents
$
4,523
$
7,534
Accounts Receivable, net
20,605
23,486
Inventories, net
36,854
30,161
Prepaid Expenses and Other Current Assets
3,059
1,427
Total Current Assets
65,041
62,608
OTHER ASSETS Property, Plant and Equipment, net
10,910
10,380
Intangible Assets, net
27,493
29,674
Goodwill
12,075
12,329
Deferred Tax Assets
3,480
2,928
Right of Use Asset
1,760
-
Other Assets
921
1,064
TOTAL ASSETS
$
121,680
$
118,983
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
9,403
$
5,956
Accrued Compensation
2,700
5,023
Other Liabilities and Accrued Expenses
3,285
2,911
Current Portion of Long-Term Debt
5,024
5,208
Revolving Credit Facility
3,500
1,500
Current Portion of Royalty Obligation
2,000
1,875
Current Liability – Excess Royalty Payment Due
647
1,265
Deferred Revenue
321
373
Income Taxes Payable
-
554
Total Current Liabilities
26,880
24,665
NON CURRENT LIABILITIES Long-Term Debt, net of current portion
10,295
12,870
Royalty Obligation, net of current portion
8,964
9,916
Lease Liability, net of current portion
1,364
-
Deferred Tax Liabilities
504
40
Other Long-Term Liabilities
1,585
1,717
TOTAL LIABILITIES
49,592
49,208
SHAREHOLDERS’ EQUITY Common Stock
516
511
Additional Paid-in Capital
55,121
53,568
Retained Earnings
51,180
49,511
Treasury Stock
(33,454
)
(32,997
)
Accumulated Other Comprehensive Loss, net of tax
(1,275
)
(818
)
TOTAL SHAREHOLDERS’ EQUITY
72,088
69,775
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
121,680
$
118,983
ASTRONOVA, INC. Revenue and Segment Operating Profit
In Thousands (Unaudited) Three Months Ended
Six Months Ended
Revenue Segment Operating Profit
Revenue Segment Operating Profit August 3, 2019 July
28, 2018 August 3, 2019 July 28, 2018 August 3, 2019 July 28, 2018
August 3, 2019 July 28, 2018 Product Identification
$
22,144
$
21,769
$
2,224
$
2,159
$
45,735
$
41,722
$
5,110
$
3,820
T&M
11,324
12,038
1,555
2,814
23,914
23,572
4,136
5,071
Total
$
33,468
$
33,807
3,779
4,973
$
69,649
$
65,294
9,246
8,891
Corporate Expenses
2,616
2,808
5,615
5,462
Operating Income
1,163
2,165
3,631
3,429
Other Expense-Net
(183
)
(512
)
(550
)
(782
)
Income Before Income Taxes
980
1,653
3,081
2,647
Income Tax Provision
29
459
429
639
Net Income
$
951
$
1,194
$
2,652
$
2,008
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190828005357/en/
Scott Solomon Senior Vice President Sharon Merrill Associates
(617) 542-5300 ALOT@investorrelations.com
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