Board of
Directors Declares Regular Quarterly Cash Dividend of $0.07 Per
Share
Third-Quarter Fiscal 2020 Summary
- Bookings of $32.6 million
- Revenue of $33.3 million
- Operating income of $0.4 million
- Earnings per diluted share of $0.06
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies, today announced financial results for
the fiscal 2020 third quarter ended November 2, 2019.
CEO Commentary
“Our Test & Measurement segment faced continued headwinds in
the third quarter related to the ongoing grounding of the 737 MAX,”
said AstroNova President and CEO Greg Woods. “In Product
Identification, similar to the second quarter, we experienced some
softness primarily as a result of weaker demand from a few
customers in Asia. In spite of these short-term challenges, we
believe that the underlying fundamentals in both businesses remain
strong. We continue to invest in product innovation, strengthen our
global marketing organization, and enhance our Aerospace service
capabilities to drive and support future growth.
“During the quarter, we launched and showcased several new
Product Identification solutions, including the QuickLabel® QL-850,
the TrojanLabel® T3-OPX and the TrojanLabel® T2-L, which expand our
addressable market, creating new opportunities in the areas of
digitally printed labels and flexible packaging,” Woods said.
“We’re also particularly excited about the new TrojanLabel® T5,
all-in-one digital print and finish in-line labeling solution
designed for professional printers and large brand owners.”
Business Outlook
“Our overall outlook remains positive, and we continue to expect
modest revenue growth in fiscal 2020,” Woods said. “While the
combination of industry headwinds and the investments we are making
in future growth are likely to impact near-term results, we are
confident in our long-term growth prospects and are well positioned
to address favorable secular growth trends across our
business.”
Operating Segment
Results
Product Identification segment revenue in the third
quarter of fiscal 2020 was $21.7 million, consistent with the
prior-year period. Segment operating income was $1.9 million, or
8.6% of revenue, versus $2.0 million, or 9.3% of revenue, in the
prior year.
Test & Measurement segment revenue in the third
quarter of fiscal 2020 was $11.6 million compared with $12.5
million in the same period of fiscal 2019. Segment operating income
was $1.4 million, or 12.1% of revenue, for the third quarter of
fiscal 2020 compared with $3.2 million, or 25.4% of revenue, in the
comparable period of fiscal 2019.
Hardware revenue was $12.2 million, compared with $13.1 million
in the prior-year period. Supplies revenue was $17.7 million, down
2.5% from $18.1 million in the same period of fiscal 2019.
Service/other revenue was $3.5 million, up 17.1% from same period a
year earlier.
Third-Quarter Financial
Summary
Revenue totaled $33.3 million versus $34.2 million in the third
quarter of fiscal 2019, reflecting lower sales in the Test &
Measurement segment.
Gross profit was $12.3 million, or 36.9% of revenue, compared
with $13.9 million, or 40.7% of revenue, for Q3 fiscal 2019. The
decrease in gross profit dollars and margin was attributable
primarily to lower revenue and less favorable sales mix.
Operating expenses were $11.9 million compared with $11.5
million in the same period of fiscal 2019.
Operating income was $0.4 million, or 1.3% of revenue, compared
with $2.4 million, or 6.9% of revenue, in the third quarter of
fiscal 2019.
Net income was $0.5 million, or $0.06 per diluted share, versus
net income of $1.4 million, or $0.20 per diluted share, in the
third quarter of fiscal 2019.
Bookings were $32.6 million compared with $34.2 million in the
third quarter of 2019.
Backlog at November 2, 2019 was $20.8 million, compared with
$24.5 million at the end of the fiscal 2019 third quarter.
Board Declares Quarterly
Dividend
On December 3, 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 December 26, 2019, to shareholders
of record on December 19, 2019.
Third-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 (800)
367-2403 (U.S. and Canada) or (334) 777-6978 (International)
approximately 10 minutes prior to the start time and enter
confirmation code 5119055.
You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, December 4 until 12:00 p.m. ET Wednesday, December 11 by
dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820
(International). The passcode is 5119055.
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 Nine Months
Ended November 2,2019 October 27,2018 November
2,2019 October 27,2018 Net Revenue
$
33,318
$
34,196
$
102,967
$
99,490
Cost of Revenue
21,021
20,288
64,454
60,073
Gross Profit
12,297
13,908
38,513
39,417
36.9
%
40.7
%
37.4
%
39.6
%
Operating Expenses: Selling & Marketing
6,944
6,587
20,122
19,484
Research & Development
2,076
2,123
5,868
5,844
General & Administrative
2,830
2,836
8,445
8,298
11,850
11,546
34,435
33,626
Operating Income
447
2,362
4,078
5,791
1.3
%
6.9
%
4.0
%
5.8
%
Other Income, Net
(238
)
(538
)
(788
)
(1,320
)
Income Before Taxes
209
1,824
3,290
4,471
Income Tax (Benefit) Provision
(247
)
407
182
1,046
Net Income
$
456
$
1,417
$
3,108
$
3,425
Net Income per Common Share - Basic
$
0.06
$
0.21
$
0.44
$
0.50
Net Income per Common Share - Diluted
$
0.06
$
0.20
$
0.43
$
0.49
Weighted Average Number of Common Shares - Basic
7,047
6,925
7,016
6,858
Weighted Average Number of Common Shares - Diluted
7,199
7,167
7,272
7,056
ASTRONOVA, INC. Balance Sheet In
Thousands (Unaudited) November 2, 2019 January 31,
2019 ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
4,468
$
7,534
Accounts Receivable, net
22,094
23,486
Inventories, net
35,594
30,161
Prepaid Expenses and Other Current Assets
3,059
1,427
Total Current Assets
65,215
62,608
Property, Plant and Equipment, net
11,323
10,380
OTHER ASSETS Intangible Assets, net
26,454
29,674
Goodwill
12,110
12,329
Deferred Tax Assets
3,482
2,928
Right of Use Asset
1,767
-
Other Assets
1,014
1,064
TOTAL ASSETS
$
121,365
$
118,983
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
6,674
$
5,956
Accrued Compensation
2,968
5,023
Other Liabilities and Accrued Expenses
3,789
2,911
Current Portion of Long-Term Debt
5,116
5,208
Revolving Credit Facility
6,500
1,500
Current Portion of Royalty Obligation
2,000
1,875
Current Liability – Excess Royalty Payment Due
419
1,265
Deferred Revenue
387
373
Income Taxes Payable
-
554
Total Current Liabilities
27,853
24,665
NON CURRENT LIABILITIES Long-Term Debt, net of current portion
9,004
12,870
Royalty Obligation, net of current portion
8,488
9,916
Lease Liability, net of current portion
1,350
-
Deferred Tax Liabilities
539
40
Other Long Term Liabilities
1,178
1,717
TOTAL LIABILITIES
48,412
49,208
SHAREHOLDERS’ EQUITY Common Stock
518
511
Additional Paid-in Capital
55,870
53,568
Retained Earnings
51,142
49,511
Treasury Stock
(33,454
)
(32,997
)
Accumulated Other Comprehensive Loss, net of tax
(1,123
)
(818
)
TOTAL SHAREHOLDERS’ EQUITY
72,953
69,775
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
121,365
$
118,983
ASTRONOVA, INC. Revenue and Segment
Operating Profit In Thousands (Unaudited)
Three Months Ended Nine Months Ended
Revenue
Segment Operating
Profit
Revenue Segment Operating Profit November 2,2019
October 27,2018 November 2,2019 October 27,2018 November 2,2019
October 27,2018 November 2,2019 October 27,2018 Product
Identification
$
21,749
$
21,684
$
1,880
$
2,014
$
67,484
$
63,407
$
6,990
$
5,833
T&M
11,569
12,512
1,397
3,184
35,483
36,083
5,533
8,256
Total
$
33,318
$
34,196
3,277
5,198
$
102,967
$
99,490
12,523
14,089
Corporate Expenses
2,830
2,836
8,445
8,298
Operating Income
447
2,362
4,078
5,791
Other Expense-Net
(238
)
(538
)
(788
)
(1,320
)
Income Before Income Taxes
209
1,824
3,290
4,471
Income Tax (Benefit) Provision
(247
)
407
182
1,046
Net Income
$
456
$
1,417
$
3,108
$
3,425
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191204005203/en/
Scott Solomon Senior Vice President Sharon Merrill Associates
(617) 542-5300 ALOT@investorrelations.com
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