Company to Host Conference Call at 9:00 a.m. ET
Today
Second-Quarter Fiscal 2023
Summary
- Bookings of $34.8 million
- Revenue of $32.3 million
- Operating income of $1.2 million
- GAAP net income of $0.6 million, or $0.08 per diluted
share
- Adjusted EBITDA of $2.2 million
AstroNova, Inc. (Nasdaq: ALOT), a global leader in data
visualization technologies, today announced financial results for
its fiscal 2023 second quarter ended July 30, 2022.
“The strong secular trends of our business, such as increasing
air travel and the growth of digital print for packaging, continue
to drive demand for our products and services,” said Greg Woods,
AstroNova President and CEO. “We achieved solid orders growth in
the quarter, with bookings up over the prior quarter, as well as
the prior year. For the first half of fiscal 2023, total bookings
nearly set a record, just missing the previous high set in fiscal
2020 by a mere half percent.
“Revenue was also up nicely in the quarter, however, less than
expected as certain areas of our business continued to be affected
by supply chain disruptions, higher component costs, and increased
freight expenses. We have taken several actions, including
selective implementation of price increases, to lessen the impact
of those challenges,” Woods said.
“Reflecting our demand drivers, we generated 8% top-line growth
in the second quarter, while bookings increased 14% year-over-year
and 7% from the first quarter of fiscal 2023,” Woods said. “These
increases were primarily driven by our Test & Measurement
segment, with the continued production ramp of the Boeing 737 MAX,
an increase in military-related orders, and higher demand for our
repair and parts services associated with the rebound of commercial
air travel.
“As we move into the second half of the year, we are very
excited about our recent acquisition of Astro Machine, which
expands our label business and adds new market adjacencies for us
in areas such as custom-branded packaging, promotional inserts, and
other e-commerce solutions. The acquisition also significantly
enhances our material handling and automation capabilities and
creates what we expect will be meaningful cross-selling
opportunities.”
CARES Act Benefits in Q2 FY
2022
During the second quarter of fiscal 2022, the principal and
interest were forgiven on the Paycheck Protection Program (PPP)
loan AstroNova received in fiscal 2021. In addition, the Company
became eligible for an Employee Retention Credit (ERC) authorized
under the Coronavirus Aid, Relief, and Economic Security (CARES)
Act. In total, for the fiscal 2022 second quarter, these two items
(the CARES Act benefits) benefited net income by $6.0 million, or
$0.83 per diluted share. There were no similar adjustments in the
second quarter of fiscal 2023.
Q2 FY 2023 Operating Segment
Results
Product Identification segment revenue in the second
quarter of fiscal 2023 was $23.4 million, down 0.5% from $23.5
million in the prior-year period. GAAP segment operating income was
$1.6 million, or 7.0% of revenue, compared with $4.4 million, or
18.8% of revenue, a year earlier, reflecting less favorable mix and
higher costs in the 2023 period. On a non-GAAP basis, excluding the
CARES Act benefits, segment income in the second quarter of fiscal
2022 was $3.0 million, or 12.7% of revenue.
Test & Measurement segment revenue in the second
quarter of fiscal 2023 increased 39.7% to $8.9 million from $6.4
million in the same period of fiscal 2022. GAAP segment operating
income was $2.2 million, or 24.4% of revenue, compared with
operating income of $1.7 million, or 26.9% of revenue, in the
second quarter of fiscal 2022. On a non-GAAP basis, excluding the
CARES Act benefits, segment income in the second quarter of fiscal
2022 was $0.9 million, or 14.3% of revenue.
Q2 FY 2023 Results
Summary
Revenue for the second quarter of fiscal 2023 totaled $32.3
million, up 8.1% from $29.8 million in the year-earlier period,
which was attributable to higher revenue in the Test &
Measurement segment.
Hardware revenue was $8.6 million, a 9.6% increase from the
prior-year period. Supplies revenue was $19.2 million, up 2.6%.
Revenue from Service/Other was $4.5 million, up 35.5% from the
comparable quarter of fiscal 2022.
GAAP gross profit for the second quarter of fiscal 2023 was
$11.4 million, or 35.3% of revenue, compared with $12.7 million, or
42.6% of revenue, in the same period of fiscal 2022. On a non-GAAP
basis, excluding the CARES Act benefits, gross profit for the
second quarter of fiscal 2022 was $11.1 million, or 37.1% of
revenue.
GAAP operating expenses for the second quarter of fiscal 2023
totaled $10.1 million, up 9.5% compared with $9.3 million in the
second quarter of fiscal 2022, primarily reflecting higher selling
and marketing expenses in the 2023 period. On a non-GAAP basis,
excluding the CARES Act benefits, operating expenses for the second
quarter of fiscal 2022 were $9.8 million.
GAAP operating income for the second quarter of fiscal 2023 was
$1.2 million, or 3.8% of revenue, compared with $3.5 million, or
11.6% of revenue, in the same period of fiscal 2022. On a non-GAAP
basis, excluding the CARES Act benefits, operating income for the
second quarter of fiscal 2022 was $1.3 million, or 4.4% of
revenue.
GAAP net income for the second quarter of fiscal 2023 was $0.6
million, or $0.08 per diluted share, compared with $7.0 million, or
$0.96 per diluted share, in the second quarter of fiscal 2022. On a
non-GAAP basis, excluding the CARES Act benefits, net income for
the second quarter of fiscal 2022 was $1 million, or $0.13 per
diluted share.
Adjusted earnings before interest, taxes, depreciation, and
amortization (Adjusted EBITDA) was $2.2 million, or 6.7% of
revenue, for the second quarter of fiscal 2023, compared with $9.2
million, or 30.8% of revenue, in the comparable period of fiscal
2022. Excluding the effect of the CARES Act benefits, Adjusted
EBITDA was $2.6 million, or 8.7% of revenue, in the second quarter
of fiscal 2022.
Non-GAAP net income, non-GAAP earnings per diluted share,
non-GAAP gross profit, non-GAAP operating expenses, non-GAAP
segment operating income, Adjusted EBITDA, and Adjusted EBITDA
excluding the 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 in
this news release for a reconciliation of non-GAAP measures to the
closest comparable GAAP measures for the three and six months ended
July 30, 2022, and July 31, 2021.
Bookings for the second quarter of fiscal 2023 increased 14.0%
to $34.8 million from $30.6 million in the second quarter of fiscal
2022.
Backlog as of July 30, 2022 increased 30.6% to $31.8 million
from $24.4 million on July 31, 2021.
Q2 FY 2023 Conference Call
Details
AstroNova will discuss its second-quarter fiscal 2023 results in
an investor conference call at 9:00 a.m. ET today. To participate
in the conference call, please dial (888) 882-4478 (U.S. and
Canada) or (773) 377-9070 (International) approximately 10 minutes
prior to the start time and enter confirmation code 8162612.
You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, September 7, 2022, until 12:00 p.m. ET Wednesday,
September 14, 2022, by dialing (888) 203-1112 (U.S. and Canada) or
(719) 457-0820 (International). The confirmation code is
8162612.
A real-time and 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 earnings per diluted share, non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP segment operating income,
EBITDA, EBITDA excluding CARES Act items, Adjusted EBITDA, which
AstroNova defines as earnings before interest, taxes, depreciation,
amortization, and share-based compensation, and Adjusted EBITDA
excluding CARES Act items. 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 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 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.
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 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,
and the benefits expected to be realized from the acquisition of
Astro Machine, 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, 2022, 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 Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Revenue
$
32,259
$
29,845
$
63,269
$
58,923
Cost of Revenue
20,877
17,129
41,158
35,320
Gross Profit
11,382
12,716
22,111
23,603
Total Gross Profit Margin
35.3
%
42.6
%
34.9
%
40.1
%
Operating Expenses: Selling & Marketing
5,981
5,061
11,863
11,154
Research & Development
1,595
1,539
3,118
3,255
General & Administrative
2,571
2,664
5,131
5,008
Total Operating Expenses
10,147
9,264
20,112
19,417
Operating Income
1,235
3,452
1,999
4,186
Total Operating Margin
3.8
%
11.6
%
3.2
%
7.1
%
Other Income (Expense), net: Extinguishment of Debt - PPP Loan
-
4,466
-
4,466
Interest Expense
(210
)
(171
)
(385
)
(392
)
Gain (Loss) on Foreign Currency Transactions
(241
)
50
(377
)
(114
)
Other, net
20
(79
)
52
(63
)
(431
)
4,266
(710
)
3,897
Income Before Taxes
804
7,718
1,289
8,083
Income Tax (Benefit) Provision
220
699
280
471
Net Income
$
584
$
7,019
$
1,009
$
7,612
Net Income per Common Share - Basic
$
0.08
$
0.97
$
0.14
$
1.06
Net Income per Common Share - Diluted
$
0.08
$
0.96
$
0.14
$
1.04
Weighted Average Number of Common Shares - Basic
7,310
7,209
7,287
7,177
Weighted Average Number of Common Shares - Diluted
7,348
7,329
7,355
7,297
ASTRONOVA, INC. Balance Sheet In Thousands
(Unaudited)
July 30, 2022
January 31, 2022
ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
4,285
$
5,276
Accounts Receivable, net
17,382
17,124
Inventories, net
41,727
34,609
Employee Retention Credit Receivable
0
3,135
Prepaid Expenses and Other Current Assets
4,268
3,634
Total Current Assets
67,662
63,778
PROPERTY, PLANT AND EQUIPMENT
50,764
50,821
Less Accumulated Depreciation
(40,187
)
(39,380
)
Property, Plant and Equipment, net
10,577
11,441
OTHER ASSETS Intangible Assets, net
18,314
19,200
Goodwill
11,501
12,156
Deferred Tax Assets
5,582
5,591
Right of Use Asset
887
1,094
Other Assets
1,775
1,695
TOTAL ASSETS
$
116,298
$
114,955
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
7,624
$
8,590
Accrued Compensation
2,437
3,512
Other Liabilities and Accrued Expenses
3,334
4,113
Revolving Line of Credit
4,500
-
Current Portion of Royalty Obligation
1,875
2,000
Current Portion of Long-Term Debt
1,000
1,000
Current Liability – Excess Royalty Payment Due
301
235
Income Taxes Payable
1,169
323
Deferred Revenue
281
262
Total Current Liabilities
22,521
20,035
NON-CURRENT LIABILITIES Long-Term Debt, net of current portion
7,917
8,154
Royalty Obligation, net of current portion
3,611
4,361
Lease Liability, net of current portion
627
808
Income Taxes Payable
399
399
Deferred Tax Liabilities
127
186
TOTAL LIABILITIES
35,202
33,943
SHAREHOLDERS’ EQUITY Common Stock
533
528
Additional Paid-in Capital
60,347
59,692
Retained Earnings
57,523
56,514
Treasury Stock
(34,223
)
(33,974
)
Accumulated Other Comprehensive Loss, net of tax
(3,084
)
(1,748
)
TOTAL SHAREHOLDERS’ EQUITY
81,096
81,012
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
116,298
$
114,955
ASTRONOVA, INC. Revenue and Segment Operating Profit
In Thousands (Unaudited) Revenue
Segment Operating Profit Revenue Segment Operating
Profit Three Months Ended Three Months Ended
Six Months Ended
Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Product Identification
$
23,382
$
23,492
$
1,644
$
4,406
$
45,106
$
46,590
$
3,058
$
7,134
Test & Measurement
8,877
6,353
2,162
1,710
18,163
12,333
4,072
2,060
Total
$
32,259
$
29,845
3,806
6,116
$
63,269
$
58,923
7,130
9,194
Corporate Expenses
2,571
2,664
5,131
5,008
Operating Income
1,235
3,452
1,999
4,186
Other Income (Expense), net
(431
)
4,266
(710
)
3,897
Income Before Income Taxes
804
7,718
1,289
8,083
Income Tax Provision
220
699
280
471
Net Income
$
584
$
7,019
$
1,009
$
7,612
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP -
Gross Profit Amounts in Thousands (Unaudited)
Three Months Ended Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022 July 31, 2021 Gross Profit −
GAAP
$
11,382
$
12,716
$
22,111
$
23,603
Employee Retention Credit, net
$
-
$
(1,641
)
$
-
$
(1,641
)
Gross Profit − Non-GAAP
$
11,382
$
11,075
$
22,111
$
21,962
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP -
Operating Expenses Amounts in Thousands
(Unaudited) Three Months Ended Six Months Ended
July 30, 2022 July 31, 2021
July 30, 2022 July 31,
2021 Operating Expenses − GAAP
$
10,147
$
9,264
$
20,112
$
19,417
Employee Retention Credit, net
$
-
$
489
$
-
$
489
Operating Expenses − Non-GAAP
$
10,147
$
9,753
$
20,112
$
19,906
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP -
Operating Income Amounts in Thousands (Unaudited)
Three Months Ended Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022 July 31, 2021 Operating Income −
GAAP
$
1,235
$
3,452
$
1,999
$
4,186
Employee Retention Credit, net
$
-
$
(2,130
)
$
-
$
(2,130
)
Operating Income − Non-GAAP
$
1,235
$
1,322
$
1,999
$
2,056
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP - Net
Income Amounts in Thousands (Unaudited)
Three Months Ended Six Months Ended
July 30, 2022 July 31,
2021
July 30, 2022 July 31, 2021 Net Income − GAAP
$
584
$
7,019
$
1,009
$
7,612
Employee Retention Credit, net
$
-
$
(1,615
)
$
-
$
(1,615
)
PPP Loan Forgiveness
$
-
$
(4,426
)
$
-
$
(4,426
)
Net Income − Non-GAAP
$
584
$
978
$
1,009
$
1,571
ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP -
Diluted Earnings Per Share (Unaudited) Three
Months Ended Six Months Ended
July 30, 2022 July 31, 2021
July 30, 2022 July 31, 2021 Diluted Earnings Per Share −
GAAP
$
0.08
$
0.96
$
0.14
$
1.04
Employee Retention Credit, net
$
-
$
(0.22
)
$
-
$
(0.22
)
PPP Loan Forgiveness
$
-
$
(0.60
)
$
-
$
(0.60
)
Diluted Earnings Per Share − Non-GAAP
$
0.08
$
0.13
$
0.14
$
0.22
ASTRONOVA, INC. Reconciliation of Net Income to
EBITDA Amounts in Thousands (Unaudited)
Three Months Ended Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Net Income − GAAP
$
584
$
7,019
$
1,009
$
7,612
Interest Expense
210
171
385
392
Income Tax Expense
220
699
280
471
Depreciation/Amortization
908
849
1,820
2,276
EBITDA
$
1,922
$
8,738
$
3,494
$
10,751
Employee Retention Credit
-
(1,615
)
-
(1,615
)
PPP Loan Forgiveness
-
(4,426
)
-
(4,426
)
Income Tax Expense - Employee Retention Credit
-
(515
)
-
(515
)
Income Tax Expense - PPP Loan Forgiveness
-
(40
)
-
(40
)
EBITDA - Less CARES Act Items
$
1,922
$
2,142
$
3,494
$
4,155
ASTRONOVA, INC. Reconciliation of Net Income to Adjusted
EBITDA Amounts in Thousands (Unaudited)
Three Months Ended Six Months Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Net Income − GAAP
$
584
$
7,019
$
1,009
$
7,612
Interest Expense
210
171
385
392
Income Tax Expense
220
699
280
471
Depreciation/Amortization
908
849
1,820
2,276
Share-Based Compensation
235
469
572
947
Adjusted EBITDA
$
2,157
$
9,207
$
4,066
$
11,698
Net Income - Employee Retention Credit
-
(1,615
)
-
(1,615
)
Net Income - PPP Loan Forgiveness
-
(4,426
)
-
(4,426
)
Income Tax Expense - Employee Retention Credit
-
(515
)
-
(515
)
Income Tax Expense - PPP Loan Forgiveness
-
(40
)
-
(40
)
Adjusted EBITDA - Less CARES Act Items
$
2,157
$
2,611
$
4,066
$
5,102
ASTRONOVA, INC. Reconciliation of Segment GAAP to
Non-GAAP Operating Income Amounts in Thousands
(Unaudited) Three Months
Ended Six Months Ended July
30, 2022 July 31, 2021
July 30, 2022 July 31, 2021
Product Identification Test & Measurement
Total Product Identification Test & Measurement Total
Product Identification Test & Measurement
Total Product Identification Test & Measurement Total
Segment Operating Profit - GAAP
$
1,644
$
2,162
$
3,806
$
4,406
$
1,710
$
6,116
$
3,058
$
4,072
$
7,130
$
7,134
$
2,060
$
9,194
Employee Retention Credit, net
$
-
$
-
$
-
$
(1,430
)
$
(802
)
$
(2,232
)
$
-
$
-
$
-
$
(1,430
)
$
(802
)
$
(2,232
)
Segment Operating Profit - Non-GAAP
$
1,644
$
2,162
$
3,806
$
2,976
$
908
$
3,884
$
3,058
$
4,072
$
7,130
$
5,705
$
1,258
$
6,963
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220906006077/en/
Scott Solomon Senior Vice President Sharon Merrill Associates,
Inc. (857) 383-2409 ALOT@investorrelations.com
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