Attached files

file filename
8-K - 8-K - AstroNova, Inc.d175932d8k.htm

Exhibit 99.1

 

LOGO

AstroNova Reports Fiscal First-Quarter 2022 Financial Results

Product Identification bookings hit all time high

First-Quarter Fiscal 2022 Summary

 

   

Bookings of $32.8 million

 

   

Backlog at quarter end of $24.8 million

 

   

Revenue of $29.1 million

 

   

Operating income of $0.7 million

 

   

Net income of $0.6 million, or $0.08 per diluted share

 

   

Adjusted EBITDA of $2.5 million, or 8.6% of revenue

WEST WARWICK, R.I. — June 10, 2021 — AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2022 first quarter ended May 1, 2021.

“Revenue was generally in line with our expectations in the first quarter compared with last year, as top-line growth in the Product Identification segment partly offset Aerospace industry-related weakness in the Test & Measurement segment due to the effects of the COVID-19 pandemic and continued weakness in 737 MAX-related shipments,” said Gregory A. Woods, President and Chief Executive Officer of AstroNova. “Bookings came in ahead of last year’s level, with Product Identification posting a new record and our Aerospace bookings increasing 45% sequentially to mark the first positive book-to-bill ratio since fiscal 2020. We continued to carefully manage expenses in the quarter, which allowed us to maintain profitability and improve overall margins despite lower revenue.

“Q1 marked another strong quarter for the T3-OPX, our wide-format durable direct-to-package printing system, which continues to exceed expectations,” Woods said. “Our Product Identification segment had solid results, particularly in Europe, reflecting our recent sales reorganization in the EMEA region.”

Q1 FY 2022 Operating Segment Results

Product Identification segment revenue was $23.1 million, compared with $22.4 million in the prior-year period. Segment operating income was $2.7 million, or 11.8% of revenue, compared with $3.1 million, or 14.1% of revenue, in the prior year, primarily due to higher operating costs.

Test & Measurement segment revenue was $6.0 million, compared with $8.5 million in the same period of fiscal 2021. The decrease reflected lower aerospace printer sales associated with COVID-19 and the 737 MAX impact. The Test & Measurement segment recorded an operating profit of $0.4 million, or 5.9% of revenue, compared with segment operating loss of $0.2 million, or negative 1.8% of revenue, in the comparable period of fiscal 2021, reflecting lower manufacturing costs and operating expense.

 

1


Hardware revenue was $7.6 million in the fiscal 2022 first quarter, compared with $8.9 million in the prior-year period, as lower Aerospace shipments in the Test & Measurement segment more than offset growth in Product Identification. Supplies revenue was $18.2 million versus $19.1 million in the same period of fiscal 2021. In fiscal 2021, demand for Aerospace supplies was strong in early Q1, while Product Identification supplies picked up later in the quarter as customers added to their stocks of the Company’s inks, labels and other materials because of concerns about the pandemic. Service/other revenue was $3.2 million, compared with $2.9 million a year earlier.

Q1 FY 2022 Results Summary

Revenue totaled $29.1 million in the first quarter of fiscal 2022, compared with $30.9 million in the year-earlier period, with a decline in Test & Measurement revenue partly offset by higher revenue in the Product Identification segment.

Gross profit was $10.9 million, or 37.4% of revenue in the first quarter of fiscal 2022, compared with $10.9 million, or 35.1% of revenue, in the same period of fiscal 2021.

Operating expenses totaled $10.2 million in the first quarters of fiscal 2022 and 2021, and operating income was $0.7 million in both periods.

Net income was $0.6 million, or $0.08 per diluted share, in the first quarter of fiscal 2022 compared with net income of $0.4 million, or $0.06 per diluted share, in the first quarter of fiscal 2021.

Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was $2.5 million for the first quarter of fiscal 2022, or 8.6% of revenue, compared with $2.6 million, or 8.3% of revenue, in the first quarter of fiscal 2021. Adjusted EBITDA is a non-GAAP financial measure explained in greater detail below under “Use of Non-GAAP Financial Measure.” Please refer to the financial reconciliation table included in this news release for a reconciliation of net income to Adjusted EBITDA for the three months ended May 1, 2021 and May 2, 2020.

Bookings in the first quarter of fiscal 2022 were $32.8 million, compared with $31.2 million in the first quarter of fiscal 2021.

Backlog as of May 1, 2022 was $24.8 million versus $25.9 million at the end of the fiscal 2021 first quarter.

Earnings Conference Call

AstroNova will discuss its fiscal first-quarter 2022 financial results in an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (800) 367-2403 (U.S. and Canada) or (334) 777-6978 (International) approximately 10 minutes prior to the start time and enter confirmation code 8107119.

You can hear a replay of the conference call from 12:00 p.m. ET Thursday, June 10, 2021 until 12:00 p.m. ET on Thursday, June 17, 2021 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 8107119. 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.

 

2


Use of Non-GAAP Financial Measure

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measure Adjusted EBITDA, which AstroNova defines as earnings before interest, taxes, depreciation, amortization and share-based compensation. AstroNova believes that the inclusion of this non-GAAP financial measure helps investors gain a meaningful understanding of changes in the Company’s core operating results, and also 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 Adjusted EBITDA, 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. Adjusted EBITDA also is 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 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.

 

3


ASTRONOVA, INC.

Condensed Consolidated Statements of Income

In Thousands Except for Per Share Data

(Unaudited)

 

     Three Months Ended  
     May 1, 2021     May 2, 2020  

Net Revenue

   $ 29,078     $ 30,919  

Cost of Revenue

     18,190       20,064  

Gross Profit

     10,888       10,855  

Total Gross Profit Margin

     37.4 %      35.1

Operating Expenses:

    

Selling & Marketing

     6,092       5,925  

Research & Development

     1,717       1,940  

General & Administrative

     2,344       2,327  
  

 

 

   

 

 

 

Total Operating Expenses

     10,153       10,192  

Operating Income

     735       663  

Total Operating Margin

     2.5     2.1

Other Expense, net

     369       349  
  

 

 

   

 

 

 

Income Before Taxes

     366       314  

Income Tax Benefit

     (227     (118
  

 

 

   

 

 

 

Net Income

   $ 593     $ 432  
  

 

 

   

 

 

 

Net Income per Common Share - Basic

   $ 0.08     $ 0.06  
  

 

 

   

 

 

 

Net Income per Common Share - Diluted

   $ 0.08     $ 0.06  
  

 

 

   

 

 

 

Weighted Average Number of Common Shares - Basic

     7,145       7,073  

Weighted Average Number of Common Shares - Diluted

     7,265       7,105  

 

4


ASTRONOVA, INC.

Balance Sheet

In Thousands

(Unaudited)

 

 
     May 1, 2021     January 31, 2021  

ASSETS

    

CURRENT ASSETS

    

Cash and Cash Equivalents

   $ 11,414     $ 11,439  

Accounts Receivable, net

     15,249       17,415  

Inventories, net

     29,474       30,060  

Prepaid Expenses and Other Current Assets

     2,072       1,807  
  

 

 

   

 

 

 

Total Current Assets

     58,209       60,721  

PROPERTY, PLANT AND EQUIPMENT

     51,384       50,839  

Less Accumulated Depreciation

     (39,260     (38,828
  

 

 

   

 

 

 

Property, Plant and Equipment, net

     12,124       12,011  

OTHER ASSETS

    

Intangible Assets, net

     20,496       21,502  

Goodwill

     12,730       12,806  

Deferred Tax Assets

     5,944       5,941  

Right of Use Asset

     1,302       1,389  

Other Assets

     1,251       1,103  
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 112,056     $ 115,473  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Accounts Payable

   $ 5,639     $ 5,734  

Accrued Compensation

     2,951       2,852  

Other Liabilities and Accrued Expenses

     3,448       3,939  

Current Portion of Long-Term Debt

     813       5,326  

Current Portion of Royalty Obligation

     2,000       2,000  

Current Liability – Excess Royalty Payment Due

     —         177  

Deferred Revenue

     330       285  

Income Taxes Payable

     260       655  
  

 

 

   

 

 

 

Total Current Liabilities

     15,441       20,968  

NON-CURRENT LIABILITIES

    

Long-Term Debt, net of current portion

     8,884       7,109  

Royalty Obligation, net of current portion

     5,711       6,161  

Long-Term Debt - PPP Loan

     4,422       4,422  

Lease Liability, net of current portion

     983       1,065  

Other Long-Term Liabilities

     680       681  

Deferred Tax Liabilities

     402       384  
  

 

 

   

 

 

 

TOTAL LIABILITIES

     36,523       40,790  

SHAREHOLDERS’ EQUITY

    

Common Stock

     524       521  

Additional Paid-in Capital

     58,576       58,049  

Retained Earnings

     50,678       50,085  

Treasury Stock

     (33,796     (33,588

Accumulated Other Comprehensive Loss, net of tax

     (449     (384
  

 

 

   

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

     75,533       74,683  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 112,056     $ 115,473  
  

 

 

   

 

 

 

 

5


ASTRONOVA, INC.

Revenue and Segment Operating Profit

In Thousands

(Unaudited)

 

   
     Revenue      Segment Operating Profit (Loss)  
     Three Months Ended      Three Months Ended  
     May 1, 2021        May 2, 2020        May 1, 2021       May 2, 2020  
  

 

 

    

 

 

    

 

 

   

 

 

 

Product Identification

   $ 23,098      $ 22,380      $ 2,729     $ 3,146  

Test & Measurement

     5,980        8,539        350       (156
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 29,078      $ 30,919        3,079       2,990  
  

 

 

    

 

 

      

Corporate Expenses

           2,344       2,327  
        

 

 

   

 

 

 

Operating Income

           735       663  

Other Expense, net

           369       349  
        

 

 

   

 

 

 

Income Before Income Taxes

           366       314  

Income Tax Benefit

           (227     (118
        

 

 

   

 

 

 

Net Income

         $ 593     $ 432  
        

 

 

   

 

 

 

ASTRONOVA, INC.

Reconciliation of Net Income to Adjusted EBITDA

Amounts in Thousands

(Unaudited)

 

     Three Months Ended  
     May 1, 2021        May 2, 2020  
  

 

 

    

 

 

 

Net Income – GAAP

   $ 593      $ 432  

Interest Expense

     218        196  

Income Tax Benefit

     (227      (118

Share-Based Compensation

     478        495  

Depreciation/Amortization

     1,425        1,568  
  

 

 

    

 

 

 

Adjusted EBITDA

   $ 2,487      $ 2,573  
  

 

 

    

 

 

 

Contact:

Scott Solomon

Senior Vice President

Sharon Merrill Associates

(857) 383-2409

ALOT@investorrelations.com

 

6