Company Reiterates Fiscal 2025 Full-Year
Outlook
- Bookings of $33.1 million
- Revenue of $33.0 million
- Operating income of $1.3 million
- Net income of $1.2 million
- Earnings per diluted share of $0.15
- Adjusted EBITDA of $2.5 million
- Earnings 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
its fiscal 2025 first quarter ended April 27, 2024.
CEO Commentary “Our first-quarter results were hampered
by supplier shortages and an order push-out by one customer, both
of which we expect to be remedied this fiscal year,” said Greg
Woods, President and Chief Executive Officer of AstroNova. “In our
Test and Measurement segment, shipments of certain legacy aerospace
printers were delayed due to the inability of suppliers to provide
components on time. We are working closely with those suppliers and
expect to have the shortages resolved in the third quarter of this
year. Longer-term, we are on track with our plans to replace the
majority of our legacy aerospace printers with our newer, more
advanced ToughWriter-branded printers. Today, ToughWriter printers
account for approximately 36% of our total aerospace printer
shipments. Completing the transition will result in a more
efficient supply chain, lower manufacturing costs and a streamlined
parts and services experience for our OEM and airline
customers.
“In our Product Identification segment, the year-over-year
decrease in first-quarter revenue was partly the result of the
push-out of a $4.5 million order for next-generation mail-handling
equipment introduced last fall at the PRINTING United Expo,” Woods
said. “We are in the process of adding a customer-requested design
enhancement; we expect to complete that enhancement and begin
volume shipments on that order in the second quarter of this year.
Despite the lower top line, the Product Identification segment’s
operating profit margin increased 290 basis points during the
quarter. This result reflected efficiencies gained from our
strategic realignment of the segment in mid-2023, which included
the exit from certain older, lower-margin or low-volume
products."
Business Outlook “Looking ahead, we are excited about the
prospects for both segments of our business,” Woods said. “With our
recent acquisition of Portugal-based MTEX NS, we have significantly
strengthened our position in the color digital printing market. In
addition to expanding our color labeling business, we now have a
much larger footprint in both the durable and flexible packaging
market segments. This greatly expanded range of AstroNova products
was showcased over the past 10 days in Germany at drupa 2024, the
world’s preeminent printing trade fair. Our sales team met with a
record number of current and prospective customers, and many have
already placed orders. Within our T&M segment, we continue to
win key defense programs for our data acquisition recorders and
gain traction with the ToughWriter transition. We are on track to
meet our fiscal full-year 2025 expectations for organic revenue
growth in the mid-single digits and Adjusted EBITDA margins of 13%
to 14%.”
Q1 FY 2025 Financial Highlights
(in thousands, except per share data)
Q1 FY 2025
Q1 FY 2024
YoY
Revenue
$32,961
$35,419
(7%)
Gross Profit
11,972
12,385
(3%)
Gross Margin
36.3%
35.0%
130 pts.
Operating Expenses
10,626
10,924
(3%)
Operating Income
1,346
1,461
(8%)
Operating Margin
4.1%
4.1%
--
Net Income
$1,181
$848
39%
Net Income per Common Share - Diluted
$0.15
$0.11
36%
Adjusted EBITDA
$2,465
$3,053
(19%)
Revenue by Type
(in thousands)
Q1 FY 2025
Q1 FY 2024
YoY
Hardware
$8,875
$11,667
(24%)
Supplies
$18,633
$19,070
(2%)
Service/Other
$5,453
$4,682
17%
Bookings totaled $33.1 million in the first quarter of fiscal
2025 compared with $38.4 million in the same period of fiscal
2024.
Backlog as of April 27, 2024 was $31.6 million versus $38.7
million at the end of the fiscal 2024 first quarter.
Segment Results
Product Identification Product
Identification (PI) segment revenue was $23.2 million in the first
quarter of fiscal 2025, compared with $25.1 million in the same
period of fiscal 2024. Segment operating profit was $3.0 million,
or 12.9% of segment revenue, compared with segment operating profit
of $2.5 million, or 10.0% of segment revenue, in the first quarter
of fiscal 2024, reflecting a more favorable mix in the 2025
period.
Test & Measurement Test &
Measurement (T&M) segment revenue was $9.8 million in the first
quarter of fiscal 2025, compared with $10.3 million in the first
quarter of fiscal 2024, primarily as a result of lower hardware
revenue. Segment operating profit was $1.7 million, or 17.6% of
segment revenue, compared with segment operating profit of $2.1
million, or 20.1% of segment revenue, in the first quarter of
fiscal 2024.
Earnings Conference Call Information AstroNova will
discuss its fiscal 2025 first quarter financial results in an
investor conference call at 9:00 a.m. ET today. To access the
conference call, please dial (833) 470-1428 (U.S. and Canada) or
(404) 975-4839 (International) approximately 10 minutes prior to
the start time and enter access code 832846. 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 measure Adjusted EBITDA, which we define as
earnings before interest, taxes, depreciation and amortization,
stock-based compensation and acquisition-related costs.
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 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 this
non-GAAP financial measure, 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. This measure is also used by the
Company’s management to assist with their financial and operating
decision-making. Please refer to the financial reconciliation table
included in this news release for a reconciliation of this non-GAAP
measure to the most directly comparable GAAP measure for the three
months ended April 27, 2024 and April 29, 2023.
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 be able to realize the expected
synergies from our acquisition of MTEX NS, (ii) the risk that
apparent improvements in the Aerospace and Defense sectors may not
continue, (iii) the risk that supply chain issues may persist
longer than we expect, (iv) the risk that we may not be able to
incorporate customer-requested design enhancements into our
products on the timeframe that we expect or at all, and (v) those
factors set forth in the Company’s Annual Report on Form 10-K for
the fiscal year ended January 31, 2024 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
April 27,2024
April 29,2023 Net Revenue
$
32,961
$
35,419
Cost of Revenue
20,989
23,034
Gross Profit
11,972
12,385
Total Gross Profit Margin
36.3
%
35.0
%
Operating Expenses: Selling & Marketing
5,656
6,010
Research & Development
1,603
1,788
General & Administrative
3,367
3,126
Total Operating Expenses
10,626
10,924
Operating Income
1,346
1,461
Total Operating Margin
4.1
%
4.1
%
Other Expense, net
599
434
Income Before Taxes
747
1,027
Income Tax Provision (Benefit)
(434
)
179
Net Income
$
1,181
$
848
Net Income per Common Share - Basic
$
0.16
$
0.12
Net Income per Common Share - Diluted
$
0.15
$
0.11
Weighted Average Number of Common Shares - Basic
7,459
7,370
Weighted Average Number of Common Shares - Diluted
7,628
7,450
ASTRONOVA, INC. Consolidated Balance Sheets In
Thousands (Unaudited) April 27,2024
January 31,2024 ASSETS CURRENT ASSETS Cash and Cash Equivalents
$
3,990
$
4,527
Accounts Receivable, net
17,863
23,056
Inventories, net
45,177
46,371
Prepaid Expenses and Other Current Assets
3,242
2,720
Total Current Assets
70,272
76,674
PROPERTY, PLANT AND EQUIPMENT
57,441
57,046
Less Accumulated Depreciation
(43,235
)
(42,861
)
Property, Plant and Equipment, net
14,206
14,185
OTHER ASSETS Identifiable Intangibles, net
18,402
18,836
Goodwill
14,536
14,633
Deferred Tax Assets, net
6,880
6,882
Right of Use Asset
894
603
Other Assets
1,411
1,438
TOTAL ASSETS
$
126,601
$
133,251
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts
Payable
$
7,012
$
8,068
Accrued Compensation
2,934
2,923
Other Accrued Expenses
2,787
2,706
Revolving Line of Credit
3,400
8,900
Current Portion of Long-Term Debt
2,844
2,842
Current Liability – Royalty Obligation
1,700
1,700
Current Liability – Excess Royalty Payment Due
572
935
Income Taxes Payable
512
349
Deferred Revenue
1,151
1,338
Total Current Liabilities
22,912
29,761
NON-CURRENT LIABILITIES Long-Term Debt, net of current portion
9,343
10,050
Royalty Obligation, net of current portion
1,816
2,093
Lease Liabilities, net of current portion
680
415
Income Tax Payables
551
551
Deferred Tax Liabilities
92
99
TOTAL LIABILITIES
35,394
42,969
SHAREHOLDERS’ EQUITY Common Stock
545
541
Additional Paid-in Capital
63,053
62,684
Retained Earnings
65,050
63,869
Treasury Stock
(35,025
)
(34,593
)
Accumulated Other Comprehensive Loss, net of tax
(2,416
)
(2,219
)
TOTAL SHAREHOLDERS’ EQUITY
91,207
90,282
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
126,601
$
133,251
ASTRONOVA, INC.
Revenue and Segment Operating Profit In Thousands
(Unaudited) Revenue Segment Operating
Profit Three Months Ended Three Months Ended
April
27,2024 April 29,2023
April 27,2024 April 29,2023
Product Identification
$
23,185
$
25,095
$
2,991
$
2,515
Test & Measurement
9,776
10,324
1,722
2,072
Total
$
32,961
$
35,419
4,713
4,587
Corporate Expenses
3,367
3,126
Operating Income
1,346
1,461
Other Expense, net
599
434
Income Before Income Taxes
747
1,027
Income Tax Provision (Benefit)
(434
)
179
Net Income
$
1,181
$
848
ASTRONOVA, INC. Reconciliation of Net Income to
Adjusted EBITDA Amounts In Thousands (Unaudited) Three
Months Ended
April 27,2024 April 29,2023 GAAP Net Income
$
1,181
$
848
Interest Expense
482
615
Income Tax Expense (Benefit)
(434
)
179
Depreciation/Amortization
911
1,055
Share-Based Compensation
325
356
Adjusted EBITDA
$
2,465
$
3,053
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240605959386/en/
Scott Solomon Senior Vice President Sharon Merrill Advisors
(857) 383-2409 ALOT@investorrelations.com
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