Fourth-Quarter Fiscal 2019 Achievements (all comparisons
with fourth-quarter fiscal 2018)
- Record bookings of $38.6 million, up
11%
- Record revenue of $37.2 million, up
14%
- Record operating income of $2.9
million, up 37%
- Earnings per diluted share of $0.32, up
256%
Full-Year Fiscal 2019 Achievements (all comparisons with
full-year fiscal 2018)
- Record bookings of $141.9 million, up
19%
- Record revenue of $136.7 million, up
21%
- Record operating income of $8.7
million, up 61%
- Record backlog of $25.6 million, up
20%
- Earnings per diluted share of $0.81, up
72%
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies, today announced financial results for
the fiscal 2019 fourth quarter and full year ended January 31,
2019.
CEO Commentary
“We achieved strong operating and financial results in both the
fourth quarter and fiscal year,” said President and CEO Greg Woods.
“Our 2019 performance was fundamentally about good strategic
execution. New product initiatives, pricing and geographic
expansion helped grow our top line, while increased operating
efficiencies and cost improvements drove a larger percentage of
that growth through to the bottom line. Our team of more than 375
people around the world work hard to support our commitment to
quality and customer service, and I am exceptionally proud of those
efforts during the past year.
“The Test & Measurement segment accounted for a significant
share of the Company’s 21% top-line growth in fiscal 2019,” Woods
said. “This primarily reflected a full year of revenue associated
with the flight deck printer line we acquired in September 2017
from Honeywell International and growing demand for our ToughWriter
640 printer. The quarter also benefited from a large aerospace
customer order received late in January that we were able to
manufacture and ship in record time.
“Our Product Identification segment grew 6% for the year,
highlighted by strong demand for our Trojan® T2-C and Trojan® T4
presses as well as the continued momentum of our supplies
business,” Woods said. “In January, we continued to broaden our
market opportunity in this segment with the launch of the QL-300.
It is the industry’s first 5-color toner-based tabletop printer
designed specifically for production label printing.”
Business Outlook
“Looking ahead, we anticipate another strong year in fiscal 2020
with modest revenue growth and increasing operating margins as we
rigorously apply the principles of the AstroNova Operating System,
focus on working capital utilization, and continue to improve the
leveraging of our operating expenses,” Woods said. “We believe
this, coupled with our on-going commitment to product innovation,
will further strengthen our fundamental competitiveness.”
Operating Segment
Results
Product Identification segment revenue in the fourth
quarter of fiscal 2019 was $23.4 million, a 7.6% increase compared
with $21.7 million in the prior year, on higher sales of hardware,
supplies and service revenue. Segment operating income was $2.1
million, or 8.9% of revenue, versus $2.8 million, or 12.9% of
revenue, in the prior year, due primarily to higher costs
associated with selling and marketing initiatives.
Product Identification revenue in fiscal 2019 was $86.8 million,
6.3% higher than $81.7 million in the same period of fiscal 2018.
Segment operating income was $7.9 million, or 9.1% of segment
revenue, compared with $10.6 million, or 12.9% of segment revenue,
in fiscal 2018.
Test & Measurement segment revenue in the fourth
quarter of fiscal 2019 increased 25.8% to $13.8 million from $11.0
million in the same period of fiscal 2018. Segment operating income
was $3.7 million, or 26.7% of revenue, for the fiscal 2019 fourth
quarter compared with $1.5 million, or 13.3% of revenue, in the
comparable period of fiscal 2018.
Test & Measurement revenue in fiscal 2019 was $49.9 million,
up 57.2% from $31.7 million in fiscal 2018, reflecting a full year
of revenue associated with the narrow format flight deck printer
line the Company acquired from Honeywell International in September
2017. Test & Measurement operating income in fiscal 2019 was
$11.9 million, or 23.9% of segment revenue, compared with $3.8
million, or 11.8% of segment revenue, in fiscal 2018.
Financial Summary
Revenue in the fourth quarter totaled $37.2 million, an increase
of 13.7% from $32.7 million in the fourth quarter of fiscal 2018,
reflecting higher sales in both the Product Identification and Test
& Measurement segments. For the full year, revenue increased to
a record $136.7 million from $113.4 million in fiscal 2018.
Gross profit in the fourth quarter was $14.6 million, or 39.2%
of revenue, compared with $12.6 million, or 38.7% of revenue, for
Q4 fiscal 2018. The increase in gross profit dollars and margin
reflected higher revenue in the 2019 period. Fiscal 2019 gross
profit was $54.0 million, or 39.5% of revenue, compared with $44.0
million, or 38.8% of revenue, in fiscal 2018.
Operating expenses for the fourth quarter were $11.7 million
compared with $10.5 million in the same period of fiscal 2018.
Fiscal 2019 operating expenses increased to $45.3 million from
$38.6 million a year earlier.
Operating income for the fourth quarter was $2.9 million, or
7.9% of revenue, compared with $2.1 million, or 6.5% of revenue, in
the fourth quarter of fiscal 2018. Operating income for fiscal 2019
was $8.7 million, or 6.4% of revenue, compared with $5.4 million,
or 4.8% of revenue in fiscal 2018.
Net income for the fourth quarter was $2.3 million, or $0.32 per
diluted share, versus $628,000, or $0.09 per diluted share, in the
fourth quarter of fiscal 2018. GAAP net income for fiscal 2019 was
$5.7 million, or $0.81 per diluted share, compared with $3.3
million, or $0.47 per diluted share, in fiscal 2018. Results for
both the fourth-quarter and full-year periods of fiscal 2019 were
negatively impacted by $65 thousand or $0.01 per share and in the
comparable periods of 2018 negatively impacted by $1.1 million, or
$0.16 per share, in taxes due to the enactment of the Tax Cuts and
Jobs Act, as shown in the GAAP to non-GAAP reconciliation table for
the fiscal year 2019 and 2018 included herewith.
Fourth-quarter 2019 bookings increased 11% to $38.6 million from
$34.8 million in the fourth quarter of 2018, with increases in both
the Product Identification and Test & Measurement segments.
Fiscal 2019 bookings increased 19% to $141.9 million from $119.6
million in fiscal 2018.
Backlog at January 31, 2019 was $25.6 million, up 20% from $21.4
million at the end of the fiscal 2018 fourth quarter.
Fourth-Quarter Fiscal 2019 Conference
Call
AstroNova will conduct an investor conference call at 9:00 a.m.
ET today. To participate on the conference call, please dial (877)
260-1479 (U.S. and Canada) or (334) 323-0522 (International)
approximately 10 minutes prior to the start time and enter
confirmation code 1392572.
You can hear a replay of the conference call from 12:00 Noon ET
Thursday, March 14 until 12:00 p.m. ET Thursday, March 21 by
dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820
(International). The passcode is 1392572. 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 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, 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, 2018 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.Consolidated Statements of
IncomeIn Thousands Except for Per Share
Data(Unaudited)
Three Months Ended
Twelve Months Ended
January 31,2019
January 31,2018
January 31,2019
January 31,2018
Net Revenue $ 37,167 $ 32,699 $ 136,657 $ 113,401 Cost of
Revenue 22,585 20,057 82,658 69,399 Gross Profit 14,582 12,642
53,999 44,002 39.2 % 38.7 % 39.5 % 38.8 % Operating Expenses:
Selling & Marketing 6,858 6,277 26,343 22,234 Research &
Development 1,969 2,112 7,813 7,453 General & Administrative
2,825 2,123 11,123
8,903 11,652 10,512 45,279 38,590 Operating Income
2,930 2,130 8,720 5,412 7.9 % 6.5 % 6.4 % 4.8 % Other
Income, Net (92 ) (210 ) (1,412 ) (255
) Income Before Taxes 2,838 1,920 7,308 5,157 Income Tax Provision
532 1,292 1,578
1,871 Net Income $ 2,306 $ 628 $ 5,730
$ 3,286 Net Income per Common Share - Basic $
0.33 $ 0.09 $ 0.83 $ 0.48 Net
Income per Common Share - Diluted $ 0.32 $ 0.09 $
0.81 $ 0.47 Weighted Average Number of Common
Shares - Basic 6,945 6,748 6,881 6,911 Weighted Average Number of
Common Shares - Diluted 7,163 6,847 7,084 7,015 Dividends
Declared Per Common Share $ 0.07 $ 0.07 $ 0.28 $ 0.28
ASTRONOVA, INC.Balance SheetIn
Thousands(Unaudited)
January 31, 2019 January 31, 2018 ASSETS CURRENT ASSETS Cash
and Cash Equivalents 7,534 10,177 Securities Available for Sale -
1,511 Accounts Receivable, net 23,486 22,400 Inventories, net
30,161 27,609 Prepaid Expenses and Other Current Assets 1,427
2,083 Total Current Assets 62,608 63,780 PROPERTY,
PLANT AND EQUIPMENT 45,327 42,877 Less Accumulated Depreciation
(34,947 ) (33,125 ) Property, Plant and Equipment, net 10,380 9,752
OTHER ASSETS Intangible Assets, net 29,674 33,633 Goodwill 12,329
13,004 Deferred Tax Assets 2,928 1,829 Other Assets 1,064
315 Total Other Assets 45,995 48,781 TOTAL
ASSETS 118,983 122,313 LIABILITIES AND SHAREHOLDERS’
EQUITY CURRENT LIABILITIES Accounts Payable 5,956 11,808 Accrued
Compensation 5,023 2,901 Other Liabilities and Accrued Expenses
2,911 2,414 Current Portion of Long-Term Debt 5,208 5,498 Current
Portion of Royalty Obligation 1,875 1,625 Revolving Credit Facility
1,500 - Current Liability – Excess Royalty Payment Due 1,265 615
Income Taxes Payable 554 684 Deferred Revenue 373 367
Total Current Liabilities 24,665 25,912 NON CURRENT LIABILITIES
Long-Term Debt, net of current portion 12,870 17,648 Royalty
Obligation, net of current portion 9,916 11,760 Deferred Tax
Liabilities 40 698 Other Liabilities 1,717 2,648
TOTAL LIABILITIES 49,208 58,666 SHAREHOLDERS’ EQUITY Common Stock
511 500 Additional Paid-in Capital 53,568 50,016 Retained Earnings
49,511 45,700 Treasury Stock (32,997 ) (32,397 ) Accumulated Other
Comprehensive Loss, net of tax (818 ) (172 ) TOTAL SHAREHOLDERS’
EQUITY 69,774 63,647 TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 118,982 122,313
ASTRONOVA, INC.Revenue and
Segment Operating ProfitIn
Thousands(Unaudited)
Three Months Ended Twelve
Months Ended
Revenue Segment Operating
Profit Revenue Segment Operating
Profit
January 31, 2019
January 31, 2018 January 31, 2019
January 31, 2018 January 31, 2019
January 31, 2018 January 31, 2019
January 31, 2018 Product Identification $ 23,379 $
21,735 $ 2,078 $ 2,799 $ 86,786
$ 81,681 $ 7,910 $ 10,561
T&M 13,788 10,964
3,677 1,454 49,871
31,720 11,933
3,754 Total $ 37,167 $
32,699 5,755 4,253 $ 136,657 $ 113,401
19,843 14,315 Corporate Expenses 2,825
2,123 11,123
8,903 Operating Income 2,930 2,130 8,720 5,412
Other Expense-Net (92 ) (210 )
(1,412 ) (255 ) Income Before Income Taxes
2,838 1,920 7,308 5,157 Income Tax Provision 532
1,292 1,578
1,871 Net Income $ 2,306 $ 628
$ 5,730 $ 3,286
ASTRONOVA, INC.Net Income and
Diluted Earning per Share GAAP to Non GAAP
ReconciliationAmounts In Thousands(Unaudited)
Three Months Ended
Twelve Months Ended
January 31, 2019 January 31, 2018
January 31, 2019 January 31, 2018 Net Income - GAAP $
2,306 $ 628 $ 5,730 $ 3,286 Tax Act Impact: Revaluation of
Deferred Tax Assets 51 1,010 51 1,010 Transition Tax 14
104 14 104 Adjusted Net Income - Non-GAAP $
2,371 $ 1,742 $ 5,795 $ 4,400
Three Months Ended
Twelve Months Ended
January 31, 2019 January 31, 2018
January 31, 2019 January 31, 2018 Net
Income per Common Share - Diluted - GAAP $ 0.32 $ 0.09 $ 0.81 $
0.47 Tax Act Impact: Revaluation of Deferred Tax Assets 0.01
0.15 0.01 0.14 Transition Tax 0.00 0.02
0.00 0.01 Adjusted Net Income per
Common Share - Diluted - Non-GAAP $ 0.33 $ 0.26 $
0.82 $ 0.62
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version on businesswire.com: https://www.businesswire.com/news/home/20190314005365/en/
Scott SolomonSenior Vice PresidentSharon Merrill Associates(617)
542-5300ALOT@investorrelations.com
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