Board of Directors Declares Regular Quarterly
Cash Dividend of $0.07 Per Share
First-Quarter Fiscal 2020 Achievements (all comparisons
with first-quarter fiscal 2019)
- Bookings of $38.5 million, up 16%
- Revenue of $36.2 million, up 15%
- Operating income of $2.5 million, up
95%
- Earnings per diluted share of $0.23, up
92%
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies, today announced financial results for
the fiscal 2020 first quarter ended May 4, 2019.
CEO Commentary
“We executed well in the first quarter, generating strong
year-over-year gains in revenue, operating income and earnings per
share,” said President and CEO Greg Woods. “Our financial and
operational performance reflects the strategic investments we are
making in new product development, technology enhancements and
geographic expansion, all driven by our AstroNova Operating System
(AOS). Through the AOS standard set of tools and processes, we are
realizing increased efficiencies, enhancing operating leverage and
driving growth to the bottom line.
“Both segments contributed to our positive results in Q1,” Woods
said. “In Product Identification, key business drivers included
demand for our new, five-color QL-300 tabletop printer, which
allows commercial printers and other customers to expand their
capability to produce high-quality, short-run specialty labels
across a range of industries. In the Test & Measurement
segment, our results reflected solid momentum in our key end
markets.”
Business Outlook
“For fiscal 2020 we continue to expect modest revenue growth and
increased operating leverage for the full year as we expand the
application of the AstroNova Operating System across our business,”
Woods said. “However while so far we have been largely unaffected
by the grounding of the Boeing 737 MAX, we expect that the
prolonged situation may result in a slight impact on our
second-quarter operating margin. Whether or not this impact
continues beyond the second quarter is dependent on when the
aircraft is returned to service.”
Operating Segment
Results
Product Identification segment revenue in the first
quarter of fiscal 2020 was $23.6 million, an 18.2% increase
compared with $20.0 million in the prior year, on higher sales of
hardware, supplies and services. Segment operating income was $2.9
million, or 12.2% of revenue, versus $1.7 million, or 8.3% of
revenue, in the prior year, primarily reflecting higher revenue and
improved operating leverage.
Test & Measurement segment revenue in the first
quarter of fiscal 2020 increased 9.2% to $12.6 million from $11.5
million in the same period of fiscal 2019. Segment operating income
was $2.6 million, or 20.5% of revenue, for the first quarter of
fiscal 2020 compared with $2.3 million, or 19.6% of revenue, in the
comparable period of fiscal 2019.
Financial Summary
Revenue in the first quarter totaled $36.2 million, an increase
of 14.9% from $31.5 million in the first quarter of fiscal 2019,
reflecting higher sales in both the Product Identification and Test
& Measurement segments.
Gross profit in the first quarter was $14.2 million, or 39.4% of
revenue, compared with $12.1 million, or 38.5% of revenue, for Q1
fiscal 2019. The increase in gross profit dollars and margin
reflected higher revenue in the 2020 period.
Operating expenses for the first quarter were $11.8 million
compared with $10.8 million in the same period of fiscal 2019.
Operating income for the first quarter was $2.5 million, or 6.8%
of revenue, compared with $1.3 million, or 4.0% of revenue, in the
first quarter of fiscal 2019.
Net income for the first quarter was $1.7 million, or $0.23 per
diluted share, versus $814,000, or $0.12 per diluted share, in the
first quarter of fiscal 2019.
First-quarter 2020 bookings increased 16% to $38.5 million from
$33.3 million in the first quarter of 2019, with increases in both
the Product Identification and Test & Measurement segments.
Backlog at May 4, 2019 increased to a record $27.0 million, up
13% from $23.9 million at the end of the fiscal 2019 first
quarter.
Board Declares Quarterly
Dividend
On June 4, 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 June 26, 2019, to shareholders of
record on June 19, 2019.
First-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 (877)
260-1479 (U.S. and Canada) or (334) 323-0522 (International)
approximately 10 minutes prior to the start time and enter
confirmation code 7303253
You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, June 5 until 12:00 p.m. ET Wednesday, June 12 by dialing
(888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International).
The passcode is 7303253. 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 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
May 4, 2019 April 28, 2018 Net Revenue $ 36,181 $
31,487 Cost of Revenue 21,942 19,377 Gross Profit 14,239
12,110 39.4% 38.5% Operating Expenses: Selling & Marketing
6,765 6,500 Research & Development 2,007 1,692 General &
Administrative 2,999 2,653 11,771 10,845
Operating Income 2,468 1,265 6.8% 4.0% Other Income, Net
(368) (270) Income Before Taxes 2,100 995 Income Tax
Provision 400 181 Net Income $ 1,700 $ 814
Net Income per Common Share - Basic $ 0.24 $ 0.12 Net
Income per Common Share - Diluted $ 0.23 $ 0.12 Weighted
Average Number of Common Shares - Basic 6,971 6,788 Weighted
Average Number of Common Shares - Diluted 7,248 6,916
ASTRONOVA, INC. Balance Sheet In Thousands
(Unaudited)
May 4,
2019
January 31,
2019
ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
5,769
$
7,534
Accounts Receivable, net 21,970 23,486 Inventories, net 32,043
30,161 Prepaid Expenses and Other Current Assets 1,198
1,427 Total Current Assets 60,980 62,608 PROPERTY,
PLANT AND EQUIPMENT 45,850 45,327 Less Accumulated Depreciation
(35,388) (34,947) Property, Plant and Equipment, net
10,462 10,380 OTHER ASSETS Intangible Assets, net 28,561 29,674
Goodwill 12,136 12,329 Deferred Tax Assets 2,927 2,928 Right of Use
Asset 1,826 - Other Assets 1,047 1,064 TOTAL ASSETS
$
117,939
$
118,983
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
5,818
$
5,956
Accrued Compensation 2,767 5,023 Other Liabilities and Accrued
Expenses 2,848 2,911 Current Portion of Long-Term Debt 4,932 5,208
Current Portion of Royalty Obligation 2,000 1,875 Revolving Credit
Facility 1,500 1,500 Current Liability – Excess Royalty Payment Due
1,301 1,265 Income Taxes Payable 810 554 Deferred Revenue
350 373 Total Current Liabilities 22,326 24,665 NON CURRENT
LIABILITIES Long-Term Debt, net of current portion 11,583 12,870
Royalty Obligation, net of current portion 9,440 9,916 Lease
Liability 1,472 - Deferred Tax Liabilities 15 40
Other Long-Term Liabilities
1,489 1,717 TOTAL LIABILITIES 46,325 49,208
SHAREHOLDERS’ EQUITY Common Stock 513 511 Additional Paid-in
Capital 54,474 53,568 Retained Earnings 50,722 49,511 Treasury
Stock (33,077) (32,997) Accumulated Other Comprehensive Loss, net
of tax (1,018) (818) TOTAL SHAREHOLDERS’ EQUITY
71,614 69,775 TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
117,939
$
118,983
ASTRONOVA, INC. Revenue and Segment
Operating Profit In Thousands (Unaudited)
Three Months Ended
Revenue Segment
Operating Profit May 4, 2019 April 28,
2018 May 4, 2019 April 28, 2018 Product
Identification $ 23,591 $ 19,953 $ 2,886 $ 1,661 T&M
12,590 11,534 2,581 2,257
Total $ 36,181 $ 31,487 5,467 3,918 Corporate
Expenses 2,999 2,653 Operating Income 2,468
1,265 Other Expense-Net (368) (270) Income
Before Income Taxes 2,100 995 Income Tax Provision 400
181 Net Income $ 1,700 $ 814
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190605005491/en/
Scott SolomonSenior Vice PresidentSharon Merrill Associates(617)
542-5300ALOT@investorrelations.com
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