Company to Host Conference Call at 9:00 a.m. ET
Today
Third-Quarter Fiscal 2024 Financial Highlights
- Revenue of $37.5 million, down 4.7% year over year (YoY)
- Gross margin of 39.4%, up 770 basis points YoY
- Operating margin of 12.3%, up 890 basis points YoY
- Diluted EPS of $0.37, up 825% YoY
- Record quarterly Adjusted EBITDA of $5.7 million, or 15% of
revenue, up 135% YoY
AstroNova, Inc. (Nasdaq: ALOT), a global leader in data
visualization technologies, today reported financial results for
the fiscal 2024 third quarter ended October 28, 2023. GAAP diluted
earnings per share were $0.37 compared with $0.04 per diluted share
in the year-earlier period. Last year’s third-quarter GAAP results
included transaction costs of $0.07 per diluted share associated
with the acquisition of Astro Machine, Inc. at the beginning of
that quarter. This is the first quarter in which Astro Machine’s
results are included in all comparisons with the prior-year
periods.
Commentary from Greg Woods, President and Chief Executive
Officer
“We delivered significantly improved earnings performance in the
third quarter despite an 11% YoY revenue decline in our Product
Identification (PI) segment. This decline was largely driven by
sidelined printers that were affected by the previously discussed
ink quality issues from one of our suppliers and, to a lesser
degree, the exit of some low margin printers last quarter from our
portfolio. As our retrofitting program continues, the supplies
revenue from these printers is expected to recover over the coming
quarters.
“Our strong profit and cash flow improvement was fueled by a
combination of favorable product mix in both segments, continued
focus on expense control and the benefits of the PI segment
realignment last quarter.
“Our PI segment generated a 62% increase in third-quarter
operating profit as we focus on more profitable products,
transition more printer manufacturing from Asia and West Warwick to
the Astro Machine plant in Illinois, exit low margin or low volume
label printer models, consolidate international sales and
distribution facilities, and streamline our global channel partner
network.
“Our Test and Measurement segment maintained its strong
performance in the third quarter, bolstered by the ongoing
post-pandemic rebound of the commercial aviation market. Segment
revenue increased 16%, while segment operating profit was up
50%.
“The recently completed strategic restructuring has
significantly improved the cost structure and margin profile of the
business and we expect both segments to perform in line with these
results again in the fourth quarter.”
Third-Quarter Fiscal 2024 Income Statement Summary
($ in thousands, except per share
data)
Q3 2024
Q3 2023
YoY
Revenue
$37,549
$39,405
(5%)
Gross Profit
$14,779
$12,482
18%
Gross Margin
39.4%
31.7%
770 bps
Operating Expenses
$10,161
$11,136
(9%)
Operating Income
$4,618
$1,346
243%
Operating Margin
12.3%
3.4%
890 bps
Net Income
$2,752
$289
870%
Net Income Per Diluted
Share
$0.37
$0.04
825%
Third-Quarter Fiscal 2024 Financial Summary
Total revenue was $37.5 million, down 4.7% from the year-earlier
period. The decrease reflected lower revenue in the PI segment, due
primarily to lower supplies revenue from printers impacted by the
defective ink from one of our larger suppliers and, in part, to the
Company’s product rationalization initiatives. The decline in PI
was partly offset by higher revenue from the Test & Measurement
segment.
Hardware revenue was $12.9 million, a 7.7% increase from the
prior-year period. Supplies revenue was $20.0 million, down 13%
from the same period in fiscal 2023. Revenue from Service/Other was
$4.7 million, up 4.4% from the comparable period last year.
Gross profit totaled $14.8 million, or 39.4% of revenue,
compared with gross profit of $12.5 million, or 31.7% of revenue,
in the year-earlier period. The increase was attributable primarily
to favorable product mix, lower manufacturing variances and reduced
period costs and the Company’s strategic realignment of its PI
segment.
Operating expenses were $10.2 million, a decrease of 8.8% from
$11.1 million in the same period last year, driven primarily by
lower general and administrative expenses.
Operating income increased to $4.6 million, or 12.3% of revenue,
from $1.3 million, or 3.4% of revenue, in the same period of fiscal
2023.
The Company reported net income of $2.8 million, or $0.37 per
diluted share, compared with $289,000, or $0.04 per diluted share,
a year earlier. Net income under Generally Accepted Accounting
Principles (GAAP) for the third quarter of fiscal 2023 included
transaction costs of $540,000, or $0.07 per diluted share,
associated with the August 2022 acquisition of Astro Machine. On a
non-GAAP basis, net income for the third quarter of fiscal 2023 was
$829,000, or $0.11 per diluted share.
Earnings before interest, taxes, depreciation, and amortization
(EBITDA) was $5.3 million for the third quarter of fiscal 2024,
compared with $2.0 million for the same period in fiscal 2023.
Excluding the Astro Machine transaction costs, EBITDA for the third
quarter of fiscal 2023 was $2.7 million.
Adjusted EBITDA, which the Company defines as earnings before
interest, taxes, depreciation, amortization and share-based
compensation, was $5.7 million, or 15% of revenue, in the third
quarter of fiscal 2024, compared with $2.4 million, or 6% of
revenue, in the same period of fiscal 2023. Excluding transaction
costs, Adjusted EBITDA for the third quarter of fiscal 2023 was
$3.1 million.
Bookings for the third quarter of fiscal 2024 increased 1% to
$35.5 million from $35.0 million in the third quarter of fiscal
2023.
Backlog as of October 28, 2023 decreased 20% to $31.2 million
from $39.3 million as of October 29, 2022.
Third-Quarter Fiscal 2024 Operating Segment Results
Product Identification
PI segment revenue was $26.5 million in the third quarter of
fiscal 2024, down 11.2% from $29.9 million in the same period a
year earlier. Segment operating profit was $4.8 million, or 18.1%
of revenue, compared with $3.0 million, or 9.9% of revenue, in the
same period of fiscal 2023.
Test & Measurement
Test & Measurement segment revenue increased 15.5% to $11.0
million in the third quarter of fiscal 2024 from $9.5 million in
the same period last year. Segment operating profit was $2.6
million, or 23.2% of revenue, compared with $1.7 million, or 18.0%
of revenue, a year earlier.
Earnings Conference Call Information
AstroNova will discuss the third-quarter fiscal 2024 financial
results in an investor conference call at 9:00 a.m. ET today. To
access the conference call, please dial (833) 470-1428 (U.S. and
Canada) or (404) 975-4839 (International) approximately 10 minutes
prior to the start time and enter access code 519743. 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.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this news release
contains the non-GAAP financial measures EBITDA, Adjusted EBITDA,
non-GAAP net income and non-GAAP net income per diluted share.
AstroNova believes that the inclusion of these non-GAAP
financial measures helps investors gain a meaningful understanding
of changes in the Company’s core operating results and can help
investors who wish to make comparisons between AstroNova and other
companies on both a GAAP and a non-GAAP basis. AstroNova’s
management uses these non-GAAP financial measures, in addition to
GAAP financial measures, as the basis for measuring its core
operating performance and comparing such performance to that of
prior periods and to the performance of its competitors. These
measures are also used by the Company’s management to assist with
their financial and operating decision-making. Please refer to the
financial reconciliation tables included in this news release for a
reconciliation of GAAP measures to the most directly comparable
non-GAAP measures for the three and nine months ended October 28,
2023 and October 29, 2022.
About AstroNova
AstroNova (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 provides a wide array of
digital, end-to-end product marking and identification solutions,
including hardware, software, and supplies for OEMs, commercial
printers, and brand owners. The Test and Measurement segment
provides products designed for airborne printing solutions,
avionics, and data acquisition. Our aerospace products include
flight deck printing solutions, networking hardware, and
specialized aerospace-grade supplies. Our data acquisition systems
are used in research and development, flight testing, missile and
rocket telemetry production monitoring, power, and maintenance
applications.
AstroNova is a member of the Russell Microcap® Index and the LD
Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is
available by visiting https://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,
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, (i) the
risk that we may not be able to realize the expected synergies from
our acquisition of Astro Machine, (ii) the risk that apparent
improvements in the Aerospace and Defense sectors may not continue
and (iii) those factors set forth in the Company’s Annual Report on
Form 10-K for the fiscal year ended January 31, 2023 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 (Loss)
In Thousands Except for Per
Share Data
(Unaudited)
Three Months Ended
Nine Months Ended
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
Net Revenue
$
37,549
$
39,405
$
108,493
$
102,674
Cost of Revenue
22,770
26,923
71,618
68,080
Gross Profit
14,779
12,482
36,875
34,594
Total Gross Profit Margin
39.4%
31.7%
34.0%
33.7%
Operating Expenses: Selling & Marketing
5,744
5,908
18,451
17,771
Research & Development
1,683
1,903
5,028
5,021
General & Administrative
2,734
3,325
8,514
8,456
Total Operating Expenses
10,161
11,136
31,993
31,248
Operating Income
4,618
1,346
4,882
3,346
Total Operating Margin
12.3%
3.4%
4.5%
3.3%
Other Expense, net
917
955
2,161
1,665
Income Before Taxes
3,701
391
2,721
1,681
Income Tax Provision
949
102
738
383
Net Income
$
2,752
$
289
$
1,983
$
1,298
Net Income per Common Share - Basic
$
0.37
$
0.04
$
0.27
$
0.18
Net Income per Common Share - Diluted
$
0.37
$
0.04
$
0.27
$
0.18
Weighted Average Number of Common Shares - Basic
7,428
7,324
7,407
7,299
Weighted Average Number of Common Shares - Diluted
7,485
7,485
7,477
7,363
ASTRONOVA, INC.
Consolidated Balance
Sheets
In Thousands
(Unaudited)
October 28, 2023
January 31, 2023
ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
4,827
$
3,946
Accounts Receivable, net
21,999
21,598
Inventories, net
47,005
51,324
Prepaid Expenses and Other Current Assets
3,056
2,894
Total Current Assets
76,887
79,762
PROPERTY, PLANT AND EQUIPMENT
56,572
55,394
Less Accumulated Depreciation
(42,320
)
(41,106
)
Property, Plant and Equipment, net
14,252
14,288
OTHER ASSETS Intangible Assets, net
19,420
21,232
Goodwill
14,440
14,658
Deferred Tax Assets
6,903
6,907
Right of Use Asset
650
794
Other Assets
1,651
1,566
TOTAL ASSETS
$
134,203
$
139,207
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
4,893
$
8,479
Accrued Compensation
3,256
2,750
Other Liabilities and Accrued Expenses
4,410
3,308
Revolving Line of Credit
14,900
15,900
Current Portion of Long-Term Debt
2,700
2,100
Current Portion of Royalty Obligation
1,500
1,725
Current Liability – Excess Royalty Payment Due
542
562
Income Taxes Payable
56
786
Deferred Revenue
1,441
1,888
Total Current Liabilities
33,698
37,498
NON-CURRENT LIABILITIES Long-Term Debt, net of current portion
10,039
12,040
Royalty Obligation, net of current portion
2,476
3,415
Lease Liability, net of current portion
459
555
Income Taxes Payable
491
491
Deferred Revenue
-
674
Deferred Tax Liabilities
152
167
TOTAL LIABILITIES
47,315
54,840
SHAREHOLDERS’ EQUITY Common Stock
540
534
Additional Paid-in Capital
62,340
61,131
Retained Earnings
61,158
59,175
Treasury Stock
(34,588
)
(34,235
)
Accumulated Other Comprehensive Loss, net of tax
(2,562
)
(2,238
)
TOTAL SHAREHOLDERS’ EQUITY
86,888
84,367
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
134,203
$
139,207
ASTRONOVA, INC.
Revenue and Segment Operating
Profit
In Thousands
(Unaudited)
Revenue
Segment Operating
Profit
Revenue
Segment Operating
Profit
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
Product Identification
$
26,543
$
29,879
$
4,794
$
2,960
$
77,416
$
74,985
$
6,848
$
6,019
Test & Measurement
11,006
9,526
2,558
1,711
31,077
27,689
6,548
5,783
Total
$
37,549
$
39,405
7,352
4,671
$
108,493
$
102,674
13,396
11,802
Corporate Expenses
2,734
3,325
8,514
8,456
Operating Income
4,618
1,346
4,882
3,346
Other Income (Expense), net
(917
)
(955
)
(2,161
)
(1,665
)
Income Before Income Taxes
3,701
391
2,721
1,681
Income Tax Provision
949
102
738
383
Net Income
$
2,752
$
289
$
1,983
$
1,298
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP Results
In Thousands Except for Per Share
Data
(Unaudited)
Three
Months Ended
Nine Months
Ended
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
GAAP Revenues
$
37,549
$
39,405
$
108,493
$
102,674
Non-GAAP Revenues
$
37,549
$
39,405
$
108,493
$
102,674
GAAP Cost of Revenues
$
22,770
$
26,923
$
71,618
$
68,080
Restructuring Charges
-
-
2,096
-
Product Retrofit Costs
-
-
852
-
Non-GAAP Cost of Revenues
$
22,770
$
26,923
$
68,670
$
68,080
GAAP Gross Profit
$
14,779
$
12,482
$
36,875
$
34,594
Restructuring Charges
-
-
2,096
-
Product Retrofit Costs
-
-
852
-
Non-GAAP Gross Profit
$
14,779
$
12,482
$
39,823
$
34,594
GAAP Operating Expenses
$
10,161
$
11,136
$
31,993
$
31,248
Transaction Costs
-
(717
)
-
(717
)
Restructuring Charges
-
-
(555
)
-
Non-GAAP Operating Expenses
$
10,161
$
10,419
$
31,438
$
30,531
GAAP Operating Income
$
4,618
$
1,346
$
4,882
$
3,346
Transaction Costs
-
717
-
717
Restructuring Charges
-
-
2,651
-
Product Retrofit Costs
-
-
852
-
Non-GAAP Operating Income
$
4,618
$
2,063
$
8,385
$
4,063
GAAP Other Income/(Expense)
$
(917
)
$
(955
)
$
(2,161
)
$
(1,665
)
Non-GAAP Other Income/(Expense)
$
(917
)
$
(955
)
$
(2,161
)
$
(1,665
)
GAAP Income Tax Expense
$
949
$
102
$
738
$
383
Tax Adjustments of Non-GAAP Adjustments
-
177
797
177
Non-GAAP Income Tax Expense
$
949
$
279
$
1,535
$
560
GAAP Net Income
$
2,752
$
289
$
1,983
$
1,298
Transaction Costs
-
540
-
540
Restructuring Charges
-
-
2,048
-
Product Retrofit Costs
-
-
658
-
Non-GAAP Net Income
$
2,752
$
829
$
4,689
$
1,838
GAAP Diluted Earnings Per Share
$
0.37
$
0.04
$
0.27
$
0.18
Transaction Costs
-
-
-
0.07
Restructuring Charges
-
-
0.28
-
Product Retrofit Costs
-
-
0.09
-
Non-GAAP Diluted Earnings Per Share
$
0.37
$
0.04
$
0.63
$
0.25
ASTRONOVA, INC.
Reconciliation of Net Income
to EBITDA
Amounts In Thousands
(Unaudited)
Three Months Ended Nine Months Ended October 28, 2023 October
29, 2022
October 28, 2023 October 29, 2022
GAAP Net Income
$
2,752
$
289
$
1,983
$
1,298
Interest Expense
630
701
1,919
1,086
Income Tax Expense
949
102
738
383
Depreciation/Amortization
1,014
915
3,158
2,737
EBITDA
$
5,345
$
2,007
$
7,798
$
5,504
Transaction Costs
-
540
-
540
Restructuring Charges
-
-
2,048
-
Product Retrofit Costs
-
-
658
-
Income Tax Expense - Transaction
Costs
-
176
-
176
Income Tax Expense -
Restructuring Charges
-
-
603
-
Income Tax Expense - Product
Retrofit Costs
-
-
194
-
EBITDA Less Restructuring &
Retrofit Items
$
5,345
$
2,723
$
11,301
$
6,220
ASTRONOVA, INC.
Reconciliation of Net Income
to Adjusted EBITDA
Amounts In Thousands
(Unaudited)
Three
Months Ended
Nine Months
Ended
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
GAAP Net Income
$
2,752
$
289
$
1,983
$
1,298
Interest Expense
630
701
1,919
1,086
Income Tax Expense
949
102
738
383
Depreciation/Amortization
1,014
915
3,158
2,737
Share-Based Compensation
311
405
1,065
977
Adjusted EBITDA
$
5,656
$
2,412
$
8,863
$
6,481
Transaction Costs
-
540
-
540
Restructuring Charges
-
-
2,048
-
Product Retrofit Costs
-
-
658
-
Income Tax Expense - Transaction Costs
-
176
-
176
Income Tax Expense - Restructuring Charges
-
-
603
-
Income Tax Expense - Product Retrofit Costs
-
-
194
-
Adjusted EBITDA Less Restructuring & Retrofit Items
$
5,656
$
3,128
$
12,366
$
7,197
ASTRONOVA, INC.
Reconciliation of Segment GAAP
to Non-GAAP Operating Income
Amounts In Thousands
(Unaudited)
Three
Months Ended
Nine Months
Ended
October
28, 2023
October 29,
2022
October
28, 2023
October 29,
2022
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
GAAP - Segment Operating
Profit
$
4,794
$
2,558
$
7,352
$
2,960
$
1,711
$
4,671
$
6,848
$
6,548
$
13,396
$
6,019
$
5,783
$
11,802
Restructuring Charges
-
-
-
-
-
-
2,568
-
2,568
-
-
-
Product Retrofit Costs
-
-
-
-
-
-
852
-
852
-
-
-
Non-GAAP - Segment Operating
Profit
$
4,794
$
2,558
$
7,352
$
2,960
$
1,711
$
4,671
$
10,268
$
6,548
$
16,816
$
6,019
$
5,783
$
11,802
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231205741891/en/
Scott Solomon Senior Vice President Sharon Merrill Advisors
(857) 383-2409 ALOT@investorrelations.com
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