Company to Host Conference Call at 9:00 a.m.
ET Today
AstroNova, Inc. (Nasdaq: ALOT), a global leader in data
visualization technologies, today announced financial results for
the second quarter ended July 29, 2023.
Summary
- Second-quarter revenue of $35.5 million, up 10% YoY, driven by
Astro Machine acquisition and continued momentum in aerospace
industry
- Second-quarter GAAP results included pre-tax strategic
restructuring charges and related expenses totaling $3.5
million
- Second-quarter GAAP net loss per share was $0.22; non-GAAP
diluted earnings per share, which excludes the impact of
restructuring charges and retrofit costs, was $0.15
Q2 2024 Financial Highlights
GAAP
Non-GAAP (excluding impact of
restructuring and related expenses)
(in thousands, except per share data)
Q2 FY 2024
Q2 FY 2023
YoY
Q2 FY 2024
Q2 FY 2023
YoY
Revenue
$35,524
$32,259
10%
$35,524
$32,259
10%
Gross Profit
9,710
11,382
(15%)
12,658
11,382
11%
Gross Margin
27.3%
35.3%
(8.0 pts.)
35.6%
35.3%
0.3 pts.
Operating Expenses
10,908
10,147
7%
10,353
10,147
2%
Operating Income (Loss)
(1,198)
1,235
n/m*
2,305
1,235
87%
Operating Margin
(3.4%)
3.8%
n/m*
6.5%
3.8%
2.7 pts.
Net Income (Loss)
($1,617)
584
n/m*
$1,089
$584
86%
Net Income (Loss) per Common Share
($0.22)
$0.08
n/m*
$0.15
$0.08
83%
*Not meaningful See reconciliations between GAAP and non-GAAP
measures provided below.
CEO Commentary
“Our second-quarter financial results reflected the strategic
realignment of our Product Identification segment, an initiative
that allows us to further capitalize on the synergies of our 2022
acquisition of Astro Machine,” said Greg Woods, AstroNova’s
President and Chief Executive Officer. “The strategic realignment
enables us to concentrate the segment's resources on the
highest-return opportunities by consolidating our PI product line
and moving more PI manufacturing from Asia and West Warwick to our
Astro Machine plant in Illinois. Although the realignment had a
negative effect on our GAAP performance in the second quarter, we
believe that it puts us in a position to achieve an anticipated
annualized cost savings of $2.4 million, benefitting our results in
the quarters to come.
“Aside from the restructuring impact, we continued to make
operating efficiency improvements in Q2 and we posted double-digit
top-line growth highlighted by Astro Machine and ongoing momentum
in the aerospace market,” Woods said. “Additionally, we have
accelerated our new product development program and, this quarter,
we will introduce four new innovative PI products for labeling
applications as well as direct-to-package overprinting and
high-speed mailing and addressing. These and other new products are
among the solutions we will showcase in the coming weeks at major
industry events including PACK EXPO in Las Vegas, Labelexpo Europe
in Brussels, and PRINTING United Expo in Atlanta.
“In our Test & Measurement segment, robust airline passenger
traffic and increased aircraft deliveries are creating stronger
demand trends for our aerospace printers, supplies, and services.
We continue to focus on upgrading and transitioning aerospace
customers to our more advanced and feature-rich ToughWriter family
of printers, which will help us achieve greater economies of scale
as we move forward,” Woods concluded.
Second-Quarter Fiscal 2024 Financial Summary
Total revenue for the second quarter of fiscal 2024 was $35.5
million, up 10.1% from the year-earlier period. The growth
reflected higher revenue in the Product Identification segment as a
result of the acquisition of Astro Machine, as well as an increase
in Test & Measurement segment revenue associated with continued
strength in the aerospace market.
Hardware revenue was $11.3 million, a 30.5% increase from the
prior-year period. Supplies revenue was $19.7 million, 2.8% higher
than the same period in fiscal 2023. Revenue from Service/Other was
$4.6 million, up 2.2% from the comparable period last year.
Gross profit under generally accepted accounting principles
(GAAP) for the second quarter of fiscal 2024 was $9.7 million, or
27.3% of revenue, compared with gross profit of $11.4 million, or
35.3% of revenue, in the year-earlier period. In the 2024 period,
gross profit included $2.1 million in charges related to the
restructuring of the Company’s Product Identification segment and
$852,000 in costs associated with an ongoing program to retrofit
certain printers affected by quality and reliability issues from
one of the Company’s suppliers. Excluding those charges, gross
profit on a non-GAAP basis for the second quarter of fiscal 2024
was $12.7 million, or 35.6% of revenue.
GAAP operating expenses in the second quarter of fiscal 2024
totaled $10.9 million, an increase of 7.5% from the same period
last year. In the 2024 period, operating expenses included $555,000
in restructuring charges. Excluding those charges, operating
expenses on a non-GAAP basis were $10.4 million.
The Company reported a GAAP operating loss of $1.2 million for
the second quarter of fiscal 2024 versus operating income of $1.2
million a year earlier. Excluding the restructuring charges and
retrofit costs in the 2024 period, non-GAAP operating income was
$2.3 million.
GAAP net loss for the second quarter of fiscal 2024 was $1.6
million, or $0.22 per share, compared with net income of $584,000,
or $0.08 per diluted share, for the comparable period of fiscal
2023. The net loss for the 2024 period included $2.0 million in
after-tax restructuring charges and $658,000 in after-tax costs
related to the retrofit program. Net income on a non-GAAP basis was
$1.1 million, or $0.15 per diluted share.
Adjusted EBITDA, which the Company defines as earnings before
interest, taxes, depreciation, amortization and share-based
compensation, was $154,000 in the second quarter of fiscal 2024,
compared with $2.2 million in the same period of fiscal 2023.
Further adjusted to exclude restructuring charges and retrofit
costs, Adjusted EBITDA would have increased nearly 70%
year-over-year to $3.7 million in the second quarter of fiscal
2024.
Bookings for the second quarter of fiscal 2024 decreased 13.7%
to $30.1 million from $34.8 million in the second quarter of fiscal
2023.
Backlog as of July 29, 2023 increased 4.6% to $33.3 million from
$31.8 million as of July 30, 2022.
Second-Quarter Fiscal 2024 Operating Segment Results
Product Identification
Product Identification segment revenue was $25.8 million in the
second quarter of fiscal 2024, compared with $23.4 million in the
fiscal 2023 second quarter, driven by the acquisition of Astro
Machine. Segment operating loss impacted by the restructuring was
$461,000, or (1.8%) of revenue, compared with segment operating
profit of $1.6 million, or 7.0% of revenue, a year earlier.
Excluding the restructuring and retrofit costs in the 2024 period,
non-GAAP operating profit was $3.0 million, or 8.3% of revenue.
Test & Measurement
Test & Measurement segment revenue increased to $9.7 million
in the second quarter of fiscal 2024 from $8.9 million in the
second quarter of fiscal 2023. Segment operating profit was $1.9
million, or 19.7% of revenue, compared with segment operating
profit of $2.2 million, or 24.4% of revenue, a year earlier.
Earnings Conference Call
AstroNova will discuss its second-quarter fiscal 2024 financial
results in an investor conference call at 9:00 a.m. ET today. To
participate on the conference call, please dial (833) 470-1428
(U.S. and Canada) or (929) 526-1599 (International) approximately
10 minutes prior to the start time and enter access code 159098. 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 gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
operating income, non-GAAP operating margin, non-GAAP net income,
non-GAAP earnings per diluted share, and Adjusted EBITDA.
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 six months ended July 29, 2023
and July 30, 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 successfully execute or achieve the expected
benefits of our restructuring plan for our Product Identification
segment, (ii) the risk that we may not be able to realize the
expected synergies from our acquisition of Astro Machine, (iii) the
risk that apparent improvements in the Aerospace and Defense
sectors may not continue and (iv) 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 Six Months Ended
July 29, 2023 July 30, 2022
July 29, 2023 July 30,
2022 Net Revenue
$
35,524
$
32,259
$
70,943
$
63,269
Cost of Revenue
25,814
20,877
48,847
41,158
Gross Profit
9,710
11,382
22,096
22,111
Total Gross Profit Margin
27.3%
35.3%
31.1%
34.9%
Operating Expenses: Selling & Marketing
6,697
5,981
12,707
11,863
Research & Development
1,557
1,595
3,345
3,118
General & Administrative
2,654
2,571
5,780
5,131
Total Operating Expenses
10,908
10,147
21,832
20,112
Operating Income (Loss)
(1,198)
1,235
264
1,999
Total Operating Margin
-3.4%
3.8%
0.4%
3.2%
Other Expense, net
809
431
1,244
710
Income (Loss) Before Taxes
(2,007)
804
(980)
1,289
Income Tax Provision (Benefit)
(390)
220
(211)
280
Net Income (Loss)
$
(1,617)
$
584
$
(769)
$
1,009
Net Income (Loss) per Common Share - Basic
$
(0.22)
$
0.08
$
(0.10)
$
0.14
Net Income (Loss) per Common Share - Diluted
$
(0.22)
$
0.08
$
(0.10)
$
0.14
Weighted Average Number of Common Shares - Basic
7,420
7,310
7,396
7,287
Weighted Average Number of Common Shares - Diluted
7,420
7,348
7,396
7,355
ASTRONOVA, INC. Consolidated Balance Sheets
In Thousands (Unaudited) July 29, 2023
January 31, 2023 ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
4,530
$
3,946
Accounts Receivable, net
18,005
21,598
Inventories, net
49,081
51,324
Prepaid Expenses and Other Current Assets
2,914
2,894
Total Current Assets
74,530
79,762
PROPERTY, PLANT AND EQUIPMENT
55,934
55,394
Less Accumulated Depreciation
(42,043)
(41,106)
Property, Plant and Equipment, net
13,891
14,288
OTHER ASSETS Intangible Assets, net
20,033
21,232
Goodwill
14,760
14,658
Deferred Tax Assets
6,909
6,907
Right of Use Asset
735
794
Other Assets
1,692
1,566
TOTAL ASSETS
$
132,550
$
139,207
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
5,356
$
8,479
Accrued Compensation
2,668
2,750
Other Liabilities and Accrued Expenses
4,753
3,308
Revolving Line of Credit
13,900
15,900
Current Portion of Long-Term Debt
2,700
2,100
Current Portion of Royalty Obligation
1,600
1,725
Current Liability – Excess Royalty Payment Due
613
562
Income Taxes Payable
-
786
Deferred Revenue
1,858
1,888
Total Current Liabilities
33,448
37,498
NON-CURRENT LIABILITIES Long-Term Debt, net of current portion
10,709
12,040
Royalty Obligation, net of current portion
2,789
3,415
Lease Liability, net of current portion
530
555
Income Taxes Payable
491
491
Deferred Revenue
-
674
Deferred Tax Liabilities
182
167
TOTAL LIABILITIES
48,149
54,840
SHAREHOLDERS’ EQUITY Common Stock
540
534
Additional Paid-in Capital
62,004
61,131
Retained Earnings
58,406
59,175
Treasury Stock
(34,585)
(34,235)
Accumulated Other Comprehensive Loss, net of tax
(1,964)
(2,238)
TOTAL SHAREHOLDERS’ EQUITY
84,401
84,367
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
132,550
$
139,207
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 Six Months Ended Six Months Ended
July
29, 2023 July 30, 2022
July 29, 2023 July 30, 2022
July 29, 2023 July 30, 2022
July 29, 2023 July 30,
2022 Product Identification
$
25,777
$
23,382
$
(461)
$
1,644
$
50,872
$
45,106
$
2,055
$
3,058
Test & Measurement
9,747
8,877
1,917
2,162
20,071
18,163
3,989
4,072
Total
$
35,524
$
32,259
1,456
3,806
$
70,943
$
63,269
6,044
7,130
Corporate Expenses
2,654
2,571
5,780
5,131
Operating Income
(1,198)
1,235
264
1,999
Other Income (Expense), net
(809)
(431)
(1,244)
(710)
Income (Loss) Before Income Taxes
(2,007)
804
(980)
1,289
Income Tax Provision (Benefit)
(390)
220
(211)
280
Net Income (Loss)
$
(1,617)
$
584
$
(769)
$
1,009
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP
Results In Thousands Except for Per Share Data (Unaudited)
Three Months Ended Six Months Ended July 29, 2023 July 30,
2022
July 29, 2023 July 30, 2022 GAAP Revenues
$
35,524
$
32,259
$
70,943
$
63,269
Non-GAAP Revenues
$
35,524
$
32,259
$
70,943
$
63,269
GAAP Cost of Revenues
$
25,814
$
20,877
$
48,847
$
41,158
Restructuring Charges
2,096
-
2,096
-
Product Retrofit Costs
852
-
852
-
Non-GAAP Cost of Revenues
$
22,866
$
20,877
$
45,899
$
41,158
GAAP Gross Profit
$
9,710
$
11,382
$
22,096
$
22,111
Gross Profit Adjustments
2,948
-
2,948
-
Non-GAAP Gross Profit
$
12,658
$
11,382
$
25,044
$
22,111
GAAP Operating Expenses
$
10,908
$
10,147
$
21,832
$
20,112
Restructuring Charges
555
-
555
-
Non-GAAP Operating Expenses
$
10,353
$
10,147
$
21,277
$
20,112
GAAP Operating Income/(Loss)
$
(1,198)
$
1,235
$
264
$
1,999
Restructuring Charges
2,651
-
2,651
-
Product Retrofit Costs
852
-
852
-
Non-GAAP Operating Income/(Loss)
$
2,305
$
1,235
$
3,767
$
1,999
GAAP Other Income/(Expense)
$
(809)
$
(431)
$
(1,244)
$
(710)
Non-GAAP Other Income/(Expense)
$
(809)
$
(431)
$
(1,244)
$
(710)
GAAP Income Tax Expense/(Benefit)
$
(390)
$
220
$
(211)
$
280
Tax Adjustments of Non-GAAP Adjustments
(797)
-
(797)
-
Non-GAAP Income Tax Expense/(Benefit)
$
407
$
220
$
586
$
280
GAAP Net Income/(Expense)
$
(1,617)
$
584
$
(769)
$
1,009
Restructuring Charges
(2,048)
-
(2,048)
-
Product Retrofit Costs
(658)
-
(658)
-
Non-GAAP Net Income/(Expense)
$
1,089
$
584
$
1,937
$
1,009
GAAP Diluted Earnings/(Loss) Per Share
$
(0.22)
$
0.08
$
(0.10)
$
0.14
Restructuring Charges
(0.28)
-
(0.28)
-
Product Retrofit Costs
(0.09)
-
(0.09)
-
Non-GAAP Diluted Earnings/(Loss) Per Share
$
0.15
$
0.08
$
0.27
$
0.14
ASTRONOVA, INC.
Reconciliation of Net Income to EBITDA Amounts In Thousands
(Unaudited)
Three Months Ended
Six Months Ended July 29, 2023
July 30, 2022
July 29, 2023 July 30, 2022 GAAP Net
Income/(Loss)
$
(1,617)
$
584
$
(769)
$
1,009
Interest Expense
674
210
1,289
385
Income Tax Expense/(Benefit)
(390)
220
(211)
280
Depreciation/Amortization
1,089
908
2,144
1,820
EBITDA
$
(244)
$
1,922
$
2,453
$
3,494
Restructuring Charges
2,048
-
2,048
-
Product Retrofit Costs
658
-
658
-
Income Tax Expense/(Benefit) - Restructuring Charges
603
-
603
-
Income Tax Expense/(Benefit) - Product Retrofit Costs
194
-
194
-
EBITDA Less Restructuring & Retrofit Items
$
3,259
$
1,922
$
5,956
$
3,494
ASTRONOVA, INC. Reconciliation of Net
Income to Adjusted EBITDA Amounts In Thousands (Unaudited)
Three Months Ended Six Months Ended July 29, 2023 July 30,
2022
July 29, 2023 July 30, 2022 GAAP Net
Income/(Loss)
$
(1,617)
$
584
$
(769)
$
1,009
Interest Expense
674
210
1,289
385
Income Tax Expense/(Benefit)
(390)
220
(211)
280
Depreciation/Amortization
1,089
908
2,144
1,820
Share-Based Compensation
398
235
754
572
Adjusted EBITDA
$
154
$
2,157
$
3,207
$
4,066
Restructuring Charges
2,048
-
2,048
-
Product Retrofit Costs
658
-
658
-
Income Tax Expense/(Benefit) - Restructuring Charges
603
-
603
-
Income Tax Expense/(Benefit) - Product Retrofit Costs
194
-
194
-
Adjusted EBITDA Less Restructuring & Retrofit Items
$
3,657
$
2,157
$
6,710
$
4,066
ASTRONOVA, INC. Reconciliation of Segment GAAP to
Non-GAAP Operating Profit Amounts In Thousands (Unaudited)
Three Months Ended Six Months Ended July 29,
2023 July 30, 2022
July 29, 2023 July 30, 2022 ProductIdentification
Test& Measurement Total ProductIdentification
Test& Measurement Total
ProductIdentification
Test& Measurement Total ProductIdentification
Test& Measurement Total GAAP - Segment Operating
Profit/(Loss)
$
(461)
$
1,917
$
1,456
$
1,644
$
2,162
$
3,806
$
2,055
$
3,989
$
6,044
$
3,058
$
4,072
$
7,130
Restructuring Charges
2,568
-
2,568
-
-
-
2,568
-
2,568
-
-
-
Product Retrofit Costs
852
-
852
-
-
-
852
-
852
-
-
-
Non-GAAP - Segment Operating Profit/(Loss)
$
2,959
$
1,917
$
4,876
$
1,644
$
2,162
$
3,806
$
5,475
$
3,989
$
9,464
$
3,058
$
4,072
$
7,130
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230905022990/en/
Scott Solomon Senior Vice President Sharon Merrill Associates,
Inc. (857) 383-2409 ALOT@investorrelations.com
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