Continued Recovery of Commercial Air Travel
Drives 35% YoY Increase in Test & Measurement Revenue
Third-Quarter Fiscal 2022 Summary
- Bookings of $32.3 million, up 16% year-over-year
- Revenue of $28.9 million, up 3% year-over-year
- Backlog of $26.8 million, up 16% year-over-year
- GAAP operating income of $0.3 million
- GAAP net loss of $0.4 million, or $0.06 per share, which
includes costs associated with the write-off of the Company’s
legacy enterprise resource planning (ERP) system
- Non-GAAP net income of $0.1 million, or $0.01 per diluted
share, excluding ERP write-off costs
- Adjusted EBITDA of $1.1 million excluding ERP write-off costs,
or 3.8% of revenue
- Company expects sequential and year-over-year top-line growth
in the fourth quarter of FY 2022
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies, today announced financial results for
the fiscal 2022 third quarter ended October 30, 2021.
CEO Commentary
Gregory A. Woods, AstroNova’s President and Chief Executive
Officer, stated, “Orders were strong again this quarter, as demand
for our products continued to expand. Although sales were somewhat
hampered by supply chain challenges affecting both segments of our
business, total revenue nevertheless increased 3% year-over-year,
as the ongoing recovery of the commercial aviation market helped
drive double-digit growth in our Test & Measurement segment. In
the Product Identification segment, in-person tradeshow activity
continued to pick up in the quarter, as we demonstrated our latest
printing and labeling products at major industry events including
PACK EXPO in the U.S. and FACHPACK, the European trade fair for
packaging, technology and processing.
Business Outlook
“Third-quarter bookings increased 16% to $32.3 million,
highlighting strong demand trends heading into the final quarter of
the year,” Woods continued. “Based on these trends and our
expanding backlog, we believe we are well positioned for sequential
and year-over-year growth in the fourth quarter of fiscal
2022.”
Q3 FY 2022 Operating Segment
Results
Product Identification segment revenue in the third
quarter of fiscal 2022 was $21.9 million compared with $22.9
million in the same period of fiscal 2021. Segment operating income
was $1.8 million, or 8.3% of revenue, compared with $3.5 million,
or 15.4% of revenue, in the prior year.
Test & Measurement segment revenue in the third
quarter of fiscal 2022 increased 35.4% to $6.9 million from $5.1
million in the same period of fiscal 2021. The Test &
Measurement segment recorded operating income of $0.8 million, or
12.2% of revenue, compared with a segment operating loss of $0.8
million, or a loss of 14.7% of revenue, in the comparable period of
fiscal 2021.
Q3 FY 2022 Results
Summary
Revenue for the third quarter of fiscal 2022 totaled $28.9
million, up 3.0% compared with $28.0 million in the year-earlier
period.
Gross profit for the third quarter of fiscal 2022 was $10.4
million, or 36.0% of revenue, compared with $9.7 million, or 34.7%
of revenue, in the same period of fiscal 2021. The increase
compared with the same quarter last year reflects higher revenue
and the impact of favorable product mix.
Operating expenses for the third quarter of fiscal 2022 totaled
$10.1 million, compared with $9.3 million in the third quarter
fiscal 2021, primarily reflecting investments in Research &
Development and marketing expenses to support the business.
On a GAAP basis, AstroNova reported a net loss of $425,000, or
$0.06 per share, which includes costs of $0.5 million (after-tax)
associated with the write-off of the Company’s legacy enterprise
resource planning (ERP) system. During the quarter, AstroNova
completed the initial transition to a new global ERP system. On a
non-GAAP basis, excluding the ERP write-off, net income was $0.1
million, or $0.01 per diluted share, in the third quarter of fiscal
2022. Net income for the third quarter of fiscal 2021 was $12,000,
or $0.00 per share.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) was $0.3 million for the third quarter of fiscal 2022,
compared with $1.7 million for the same period in fiscal 2021.
Third-quarter fiscal 2022 EBITDA, excluding ERP write-off costs,
was $0.7 million, or 2.4% of revenue.
Adjusted EBITDA, which is EBITDA further adjusted for
share-based compensation, was $0.7 million, or 2.5% of revenue, and
$1.1 million, or 3.8% of revenue, excluding ERP write-off costs.
This compares with Adjusted EBITDA of $2.3 million, or 8.2% of
revenue, in the same period of the prior year.
Non-GAAP net income, non-GAAP earnings per diluted share,
EBITDA, EBITDA excluding ERP write-off costs, EBITDA excluding ERP
write-off costs and CARES Act benefits, Adjusted EBITDA, Adjusted
EBITDA excluding ERP write-off costs, and Adjusted EBITDA excluding
ERP write-off costs and CARES Act benefits are non-GAAP financial
measures explained in greater detail below under “Use of Non-GAAP
Financial Measures.” Please refer to the financial reconciliation
table included in this news release for a reconciliation of
non-GAAP measures to the closest comparable GAAP measures for the
fiscal third quarter and nine months ended October 30, 2021 and
October 31, 2020.
Bookings for the third quarter of fiscal 2022 were $32.3
million, compared with $27.9 million in the third quarter of fiscal
2021.
Backlog at October 30, 2021 was $26.8 million versus $23.2
million as of October 31, 2020.
Third-Quarter Fiscal 2022 Conference
Call
AstroNova will discuss its third-quarter fiscal 2022 financial
results in an investor conference call at 9:00 a.m. ET today. To
participate on the conference call, please dial (800) 430-8332
(U.S. and Canada) or (773) 341-1662 (International) approximately
10 minutes prior to the start time and enter confirmation code
3080960.
You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, December 8, 2021 until 12:00 p.m. ET Wednesday, December
15, 2021 by dialing (888) 203-1112 (U.S. and Canada) or (719)
457-0820 (International). The passcode is 3080960. 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: non-GAAP net income,
non-GAAP net income per diluted share, non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP segment operating income,
earnings before interest, taxes, depreciation and amortization
(EBITDA), EBITDA excluding ERP write-off costs and CARES Act
benefits, Adjusted EBITDA, and Adjusted EBITDA excluding ERP
write-off costs and CARES Act benefits. 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 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 also are used by the Company’s management to assist
with their financial and operating decision-making.
About AstroNova
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data
visualization technologies since 1969, is focused on designing,
manufacturing, distributing and servicing a broad range of products
that acquire, store, analyze and present data in multiple formats.
The Company's Product Identification segment offers a complete
line-up of label and direct-to-package printing hardware and
supplies, allowing customers to mark, track and enhance their
products' appearance. 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. This segment
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, the cabin and so much more. 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,
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, 2021 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
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Revenue
$
28,857
$
28,017
$
87,780
$
86,595
Cost of Revenue
18,472
18,282
53,792
56,218
Gross Profit
10,385
9,735
33,988
30,377
Total Gross Profit Margin
36.0
%
34.7
%
38.7
%
35.1
%
Operating Expenses: Selling & Marketing
5,777
5,553
16,931
17,033
Research & Development
1,948
1,412
5,203
4,845
General & Administrative
2,364
2,353
7,372
7,214
Total Operating Expenses
10,089
9,318
29,506
29,092
Operating Income
296
417
4,482
1,285
Total Operating Margin
1.0
%
1.5
%
5.1
%
1.5
%
Other Income (Expense), net: Extinguishment of Debt - PPP Loan
-
-
4,466
-
Loss on Disposal of Assets
(696
)
-
(696
)
-
Interest Expense
(135
)
(286
)
(526
)
(776
)
Gain (Loss) on Foreign Currency Transactions
(117
)
(85
)
(231
)
314
Other, net
53
(66
)
(11
)
3
(895
)
(437
)
3,002
(459
)
Income (Loss) Before Taxes
(599
)
(20
)
7,484
826
Income Tax (Benefit) Provision
(174
)
(32
)
297
379
Net Income (Loss)
$
(425
)
$
12
$
7,187
$
447
Net Income (Loss) per Common Share - Basic
$
(0.06
)
$
0.00
$
1.00
$
0.06
Net Income (Loss) per Common Share - Diluted
$
(0.06
)
$
0.00
$
0.98
$
0.06
Weighted Average Number of Common Shares - Basic
7,234
7,120
7,196
7,100
Weighted Average Number of Common Shares - Diluted
7,234
7,185
7,325
7,137
ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)
October 30, 2021
January 31, 2021
ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
8,727
$
11,439
Accounts Receivable, net
16,351
17,415
Inventories, net
31,661
30,060
Prepaid Expenses and Other Current Assets
6,451
1,807
Total Current Assets
63,190
60,721
PROPERTY, PLANT AND EQUIPMENT
50,624
50,839
Less Accumulated Depreciation
(38,950)
(38,828)
Property, Plant and Equipment, net
11,674
12,011
OTHER ASSETS Intangible Assets, net
19,637
21,502
Goodwill
12,415
12,806
Deferred Tax Assets
5,942
5,941
Right of Use Asset
1,106
1,389
Other Assets
1,658
1,103
TOTAL ASSETS
$
115,622
$
115,473
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
6,866
$
5,734
Accrued Compensation
4,370
2,852
Other Liabilities and Accrued Expenses
3,835
3,939
Current Portion of Royalty Obligation
2,000
2,000
Current Portion of Long-Term Debt
938
5,326
Current Liability – Excess Royalty Payment Due
220
177
Deferred Revenue
284
285
Income Taxes Payable
-
655
Total Current Liabilities
18,513
20,968
NON-CURRENT LIABILITIES Long-Term Debt, net of current portion
8,397
7,109
Royalty Obligation, net of current portion
4,811
6,161
Long-Term Debt - PPP Loan
-
4,422
Lease Liability, net of current portion
826
1,065
Other Long-Term Liabilities
557
681
Deferred Tax Liabilities
336
384
TOTAL LIABILITIES
33,440
40,790
SHAREHOLDERS’ EQUITY Common Stock
528
521
Additional Paid-in Capital
59,502
58,049
Retained Earnings
57,272
50,085
Treasury Stock
(33,944)
(33,588)
Accumulated Other Comprehensive Loss, net of tax
(1,176)
(384)
TOTAL SHAREHOLDERS’ EQUITY
82,182
74,683
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
115,622
$
115,473
ASTRONOVA, INC.
Revenue and Segment Operating
Profit (Loss)
In Thousands
(Unaudited)
Revenue
Segment Operating Profit
(Loss)
Revenue
Segment Operating Profit
(Loss)
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Product Identification
$
21,928
$
22,898
$
1,818
$
3,521
$
68,519
$
66,907
$
8,952
$
9,813
Test & Measurement
6,929
5,119
842
(751
)
19,261
19,688
2,902
(1,314
)
Total
$
28,857
$
28,017
2,660
2,770
$
87,780
$
86,595
11,854
8,499
Corporate Expenses
2,364
2,353
7,372
7,214
Operating Income
296
417
4,482
1,285
Other Income (Expense), net
(895
)
(437
)
3,002
(459
)
Income (Loss) Before Income Taxes
(599
)
(20
)
7,484
826
Income Tax (Benefit) Provision
(174
)
(32
)
297
379
Net Income (Loss)
$
(425
)
$
12
$
7,187
$
447
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP - Gross Profit
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Gross Profit − GAAP
$
10,385
$
9,735
$
33,988
$
30,377
Employee Retention Credit, net
-
-
(1,641
)
-
Gross Profit − Non-GAAP
$
10,385
$
9,735
$
32,347
$
30,377
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP - Operating Expenses
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Operating Expenses − GAAP
$
10,089
$
9,318
$
29,506
$
29,092
Employee Retention Credit, net
-
-
489
-
Operating Expenses − Non-GAAP
$
10,089
$
9,318
$
29,995
$
29,092
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP - Operating Income
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Operating Income − GAAP
$
296
$
417
$
4,482
$
1,285
Employee Retention Credit, net
-
-
(2,130
)
-
Operating Income − Non-GAAP
$
296
$
417
$
2,352
$
1,285
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP - Net Income (Loss)
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Net Income (Loss) − GAAP
$
(425
)
$
12
$
7,187
$
447
Oracle EnterpriseOne ERP Write-off
$
528
-
$
528
-
Employee Retention Credit, net
-
-
(1,615
)
-
PPP Loan Forgiveness
-
-
(4,426
)
-
Net Income (Loss) − Non-GAAP
$
103
$
12
$
1,674
$
447
ASTRONOVA, INC.
Reconciliation of GAAP to
Non-GAAP - Diluted Earnings Per Share
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Diluted Earnings Per Share − GAAP
$
(0.06
)
$
0.00
$
0.98
$
0.06
Oracle EnterpriseOne ERP Write-off
0.07
-
0.07
-
Employee Retention Credit, net
-
-
(0.22
)
-
PPP Loan Forgiveness
-
-
(0.60
)
-
Diluted Earnings Per Share − Non-GAAP
$
0.01
$
0.00
$
0.23
$
0.06
ASTRONOVA, INC.
Reconciliation of Net Income
to EBITDA
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Net Income − GAAP
$
(425
)
$
12
$
7,187
$
447
Interest Expense
135
286
526
776
Income Tax Expense (Provision)
(174
)
(32
)
297
379
Depreciation/Amortization
796
1,438
3,070
4,571
EBITDA
$
332
$
1,704
$
11,080
$
6,173
Net Income - Employee Retention Credit
-
-
(1,615
)
-
Net Income - PPP Loan Forgiveness
-
-
(4,426
)
-
Net Income - Oracle EnterpriseOne ERP Write-off
528
-
528
-
Income Tax Expense - Employee Retention Credit
-
-
515
-
Income Tax Expense - PPP Loan Forgiveness
-
-
40
-
Income Tax Expense - Oracle EnterpriseOne ERP Write-off
(168
)
-
(168
)
-
EBITDA Excluding ERP Write-off and CARES Act Benefits
$
692
$
1,704
$
5,954
$
6,173
ASTRONOVA, INC.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
Amounts in Thousands
(Unaudited)
Three Months Ended
Nine Months Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Net Income (Loss) − GAAP
$
(425
)
$
12
$
7,187
$
447
Interest Expense
135
286
526
776
Income Tax (Provision) Expense
(174
)
(32
)
297
379
Depreciation/Amortization
796
1,438
3,070
4,571
Share-Based Compensation
398
591
1,345
1,687
Adjusted EBITDA
$
730
$
2,295
$
12,425
$
7,860
Net Income - Employee Retention Credit
-
-
(1,615
)
-
Net Income - PPP Loan Forgiveness
-
-
(4,426
)
-
Net Income - Oracle EnterpriseOne ERP Write-off
528
-
528
-
Income Tax Expense - Employee Retention Credit
-
-
515
-
Income Tax Expense - PPP Loan Forgiveness
-
-
40
-
Income Tax Expense - Oracle EnterpriseOne ERP Write-off
(168
)
-
(168
)
-
Adjusted EBITDA Excluding ERP Write-off and CARES Act Benefits
$
1,090
$
2,295
$
7,299
$
7,860
ASTRONOVA, INC.
Reconciliation of Segment GAAP
to Non-GAAP Operating Income (Loss)
Amounts in Thousands
(Unaudited)
Three
Months Ended
Nine Months
Ended
October 30, 2021
October 31, 2020
October 30, 2021
October 31, 2020
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
Product
Identification
Test &
Measurement
Total
Segment Operating Profit (Loss) - GAAP
$
1,818
$
842
$
2,660
$
3,521
$
(751
)
$
2,770
$
8,952
$
2,902
$
11,854
$
9,813
$
(1,314
)
$
8,499
Employee Retention Credit, net
-
-
-
-
-
-
(1,430
)
(802
)
(2,232
)
-
-
-
Segment Operating Profit - Non-GAAP
$
1,818
$
842
$
2,660
$
3,521
$
(751
)
$
2,770
$
7,523
$
2,100
$
9,623
$
9,813
$
(1,314
)
$
8,499
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211208005368/en/
Scott Solomon Senior Vice President Sharon Merrill Associates
(617) 542-5300 ALOT@investorrelations.com
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