First-Quarter Fiscal 2021 Summary
- Bookings of $31.2 million
- Backlog of $25.9 million
- Revenue of $30.9 million
- Operating income of $0.7 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 2021 first quarter ended May 2, 2020.
CEO Commentary
“Our performance improved from the fourth quarter of fiscal 2020
due to actions taken that reduced costs and realigned priorities.
However, the broad economic disruption caused by the COVID-19
pandemic added additional constraints and weighed on our
first-quarter financial performance,” said Greg Woods, AstroNova’s
President and Chief Executive Officer. “The pandemic impact has
been particularly acute in the Aerospace portion of our Test &
Measurement segment. Despite the challenging conditions, our global
team is doing an outstanding job supporting our customers
throughout this pandemic. At AstroNova facilities around the world,
we have maintained production while keeping the health and safety
of our employees, customers, suppliers and communities at the
forefront of our attention. The early actions we took to shift a
significant number of our global team to working remotely while
enhancing our cleaning and protection procedures at our production
facilities have proven to be successful.
“In our Product Identification segment, which relies heavily on
tradeshow participation, in-person sales calls and product demos,
we’ve had to adapt, at least temporarily, to a new normal,” Woods
said. “Our marketing team has done a good job on that front,
enhancing our e-commerce and virtual demo initiatives with the
creation of the recently launched new Product Identification
website.
“In the first quarter, the Product Identification supplies
portion of our business performed well and accounted for
approximately 62% of total revenue compared with approximately 55%
in the prior-year period,” Woods said. “In certain end markets,
such as cleaning and sanitation, as well as chemical and medical
supplies, demand was particularly strong from both new and existing
customers. We expect a gradual improvement in printer sales
beginning in the second half of the fiscal year as more businesses
reopen and our sales teams can resume onsite customer visits.
“In our Test and Measurement segment, our Aerospace business
remains heavily impacted by the 737 MAX production halt and the
COVID-19 crisis, which has dramatically reduced air travel,” Woods
said. “While airline travel appears to have bottomed, the pace and
timing of recovery remains uncertain. One recent positive sign is
the restart of the 737 MAX assembly line at the end of May. This
bodes well for the longer-term and we still expect the 737 MAX to
be highly successful, but current production plans call for what
will likely be a prolonged recovery.
Business Outlook
“As disclosed last month, in order to better position the
Company in these unprecedented times, we applied for and received a
$4.4 million Payroll Protection Program loan and suspended the
Company’s dividend. In addition, we continue to take steps to
mitigate the financial impact of COVID-19 on our business while
preserving liquidity,” Woods said. “These include ongoing
cost-reduction measures in response to lower demand forecasts,
especially in aerospace markets. Based on the current environment,
we expect our results in the second quarter of FY 2021 to be weaker
than the first quarter. However, we see early evidence of improving
business investment and travel trends that could lead to better
results in the second half of the year.”
Q1 FY 2021 Operating Segment
Results
Product Identification segment revenue in the first
quarter of fiscal 2021 was $22.4 million, compared with $23.6
million in the prior-year period. Segment operating income improved
to $3.1 million, or 14.1% of revenue, from $2.9 million, or 12.2%
of revenue, in the prior year, primarily reflecting a higher
percentage of supplies revenue in the fiscal 2021 period.
Test & Measurement segment revenue in the first
quarter of fiscal 2021 was $8.5 million, compared with $12.6
million in the same period of fiscal 2020, primarily due to the
continued grounding of the Boeing 737 MAX and demand weakness in
the Aerospace industry related to COVID-19. The Test &
Measurement segment recorded an operating loss of $0.2 million, or
negative 1.8% of revenue, compared with segment operating income of
$2.6 million, or 20.5% of revenue, in the comparable period of
fiscal 2020.
Q1 FY 2021 Results
Summary
Revenue totaled $30.9 million in the first quarter of fiscal
2021, compared with $36.2 million in the year-earlier period.
Gross profit in the first quarter of fiscal 2021 was $10.9
million, or 35.1% of revenue, compared with $14.2 million, or 39.4%
of revenue, in the same period of fiscal 2020. The decrease
reflected lower revenue and less favorable product mix in the 2021
period, primarily in the Test & Measurement segment.
Operating expenses for the fiscal 2021 first quarter totaled
$10.2 million, down approximately 13% compared with $11.8 million
in the first quarter fiscal 2020.
Net income for the first quarter was $432,000, or $0.06 per
diluted share, compared with net income of $1.7 million, or $0.23
per diluted share, for the first quarter of fiscal 2020.
First-quarter fiscal 2021 bookings were $31.2 million compared
with $38.5 million in the first quarter of fiscal 2020.
Backlog at May 2, 2020 was $25.9 million versus $27.0 million at
the end of the fiscal 2020 first quarter.
First-Quarter Fiscal 2021 Conference
Call
AstroNova will discuss its first-quarter fiscal 2021 financial
results in an investor conference call at 9:00 a.m. ET today. To
participate on the conference call, please dial (800) 353-6461
(U.S. and Canada) or (334) 323-0501 (International) approximately
10 minutes prior to the start time and enter confirmation code
3865003.
You can hear a replay of the conference call from 12:00 p.m. ET
Thursday, June 11, 2020 until 12:00 p.m. ET on Thursday, June 18,
2020 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820
(International). The passcode is 3865003. 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 complete line-up of
labeling hardware and supplies allowing customers to mark, track,
and enhance the appearance of their products. The segment is
comprised of three business units: QuickLabel®, the industry leader
in tabletop digital color label printing; TrojanLabel®, an
innovative leader for professional label presses; and GetLabels™,
the premier supplier of label materials, inks, toners, ribbons, and
adhesives, all compatible with the major printer brands. Supported
by AstroNova’s customer application experts and technology
leadership in printing, material science, and high-speed data
processing, customers benefit from an optimized, “total solution”
approach.
The Test and Measurement segment includes the AstroNova
Aerospace business unit, which designs and manufactures flight deck
printers, networking hardware, and related accessories serving the
world’s aerospace and defense industries with proven advanced
airborne technology solutions for the cockpit and the cabin; and
the Test and Measurement business unit, which offers a suite of
products and services that acquire, record, and analyze electronic
signal data from local and networked sensors.
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,
the effect of the grounding of the 737 MAX, and the impact of the
COVID-19 outbreak, 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, 2020 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 2, 2020
May 4, 2019
Net Revenue
$
30,919
$
36,181
Cost of Revenue
20,064
21,942
Gross Profit
10,855
14,239
35.1%
39.4%
Operating Expenses: Selling & Marketing
5,925
6,765
Research & Development
1,940
2,007
General & Administrative
2,327
2,999
10,192
11,771
Operating Income
663
2,468
2.1%
6.8%
Other Income, Net
(349)
(368)
Income Before Taxes
314
2,100
Income Tax Provision
(118)
400
Net Income
$
432
$
1,700
Net Income per Common Share - Basic
$
0.06
$
0.24
Net Income per Common Share - Diluted
$
0.06
$
0.23
Weighted Average Number of Common Shares - Basic
7,073
6,971
Weighted Average Number of Common Shares - Diluted
7,105
7,248
ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)
May 2,
2020
January 31,
2020
ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
11,091
$
4,249
Accounts Receivable, net
18,473
19,784
Inventories, net
32,557
33,925
Prepaid Expenses and Other Current Assets
2,489
2,193
Total Current Assets
64,610
60,151
PROPERTY, PLANT AND EQUIPMENT
48,621
48,046
Less Accumulated Depreciation
(37,244
)
(36,778
)
Property, Plant and Equipment, net
11,377
11,268
OTHER ASSETS Intangible Assets, net
24,328
25,383
Goodwill
11,988
12,034
Deferred Tax Assets
5,073
5,079
Right of Use Asset
1,553
1,661
Other Assets
1,071
1,088
TOTAL ASSETS
$
120,000
$
116,664
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
4,282
$
4,409
Accrued Compensation
2,893
2,700
Other Liabilities and Accrued Expenses
3,697
4,711
Revolving Credit Facility
11,500
6,500
Current Portion of Long-Term Debt
6,602
5,208
Current Portion of Royalty Obligation
2,000
2,000
Current Liability – Excess Royalty Payment Due
586
773
Deferred Revenue
375
466
Total Current Liabilities
31,935
26,767
NON CURRENT LIABILITIES Long-Term Debt, net of current portion
6,334
7,715
Royalty Obligation, net of current portion
7,550
8,012
Lease Liability, net of current portion
1,199
1,279
Deferred Tax Liabilities
378
435
Other Long Term Liabilities
1,042
1,081
TOTAL LIABILITIES
48,438
45,289
SHAREHOLDERS’ EQUITY Common Stock
518
517
Additional Paid-in Capital
56,656
56,130
Retained Earnings
49,233
49,298
Treasury Stock
(33,531
)
(33,477
)
Accumulated Other Comprehensive Loss, net of tax
(1,314
)
(1,093
)
TOTAL SHAREHOLDERS’ EQUITY
71,562
71,375
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
120,000
$
116,664
ASTRONOVA, INC.
Revenue and Segment Operating
Profit
In Thousands
(Unaudited)
Three Months Ended
Revenue
Segment Operating
Profit
May 2, 2020
May 4, 2019
May 2, 2020
May 4, 2019
Product Identification
$
22,380
$
23,591
$
3,146
$
2,886
T&M
8,539
12,590
(156
)
2,581
Total
$
30,919
$
36,181
2,990
5,467
Corporate Expenses
2,327
2,999
Operating Income
663
2,468
Other Expense-Net
(349
)
(368
)
Income Before Income Taxes
314
2,100
Income Tax Provision
(118
)
400
Net Income
$
432
$
1,700
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200611005156/en/
Scott Solomon Senior Vice President Sharon Merrill Associates
(617) 542-5300 ALOT@investorrelations.com
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