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AstroNova Announces First Quarter Fiscal 2023 Financial Results

AstroNova Announces First Quarter Fiscal 2023 Financial Results

Company to Host Conference Call at 9:00 a.m. ET Today

First Quarter Fiscal 2023 Summary

  • Bookings of $28.4 million
  • Revenue of $31.0 million
  • Operating income of $0.8 million
  • Net income of $0.4 million, or $0.06 per diluted share
  • Adjusted EBITDA of $1.9 million

AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2023 first quarter ended April 30, 2022.

“We delivered 6.6 percent top-line growth in the first quarter, driven by the momentum of our Test & Measurement segment, as commercial aerospace OEMs continued to increase production and deliveries of their narrow-body aircraft,” said Gregory A. Woods, President and Chief Executive Officer. “The pace of production of aircraft families like the Airbus A320 and Boeing 737 is a key barometer for our Aerospace business, since those planes represent a significant portion of our aerospace product volume.

“Product innovation remains a key tenet of our growth strategy,” continued Woods. “In our Product Identification segment, we expect to release a new product later this month that will extend our QuickLabel lineup to provide our first offering in the entry level category of the market with the launch of the QL-E100, a low cost full-color tabletop label printer. The printer has unique features for this category including a seven-inch color touchscreen and internal image storage, making it extremely easy to use. It is an ideal solution for smaller businesses as well as larger enterprises that need to deploy multiple on-demand label printers at distributed locations throughout their facilities.

“Looking ahead, while the near-term macroeconomic environment remains challenging most notably due to supply chain issues, we are taking proactive steps to diminish those headwinds, which include price adjustments on many of our products. The underlying fundamentals of our business remain strong, and we are especially encouraged by the momentum we are seeing in Test & Measurement as the commercial aviation market continues its recovery,” concluded Woods.

First Quarter Fiscal 2023 Financial Summary

Revenue was $31.0 million, a 6.6 percent increase compared with the prior-year period, reflecting higher demand in the Test & Measurement segment, partly offset by lower revenue in the Product Identification segment that was impacted by shipment delays.

Hardware revenue was $9.3 million, a 21.6 percent increase from the prior-year period. Supplies revenue was $17.9 million, down 1.5 percent year-over-year. Revenue from Service/Other was $3.8 million, up 16.9 percent from the comparable quarter of fiscal 2022.

Gross profit was $10.7 million, or 34.6 percent of revenue, in the first quarter of fiscal 2023, compared with $10.9 million, or 37.4 percent of revenue, in the same period of fiscal 2022. The decrease reflected the impact of higher materials input costs across most of our supply chain and labor cost increases, which led to higher cost of goods in the 2023 period.

Operating expenses totaled $10.0 million, a 1.9 percent decrease from the fiscal first quarter of 2022. This result reflected lower Selling & Marketing and Research & Development expenses, partly offset by higher General & Administrative expenses.

Operating income was $0.8 million, compared with operating income of $0.7 million in the year-earlier period.

Net income was $0.4 million, or $0.06 per diluted share, compared with $0.6 million, or $0.08 per diluted share, in the same period of fiscal 2022.

Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization, and share-based compensation, was $1.9 million, compared with $2.5 million in the same period of fiscal 2022.

Bookings were $28.4 million, compared with $32.8 million in the first quarter of fiscal 2022.

Backlog as of April 30, 2022, was $25.2 million versus $24.8 million at the end of the fiscal 2022 first quarter.

First Quarter Fiscal 2023 Operating Segment Results

Product Identification segment revenue was $21.7 million, down 6.0 percent compared with the prior-year period. Operating profit in the Product Identification segment was $1.4 million, or 6.5 percent of revenue, compared with $2.7 million, or 11.8 percent of revenue, in the first quarter of fiscal 2022.

Test & Measurement segment revenue was $9.3 million, an increase of 55.3 percent compared with the prior-year period. Operating profit in the Test & Measurement segment was $1.9 million, or 20.6 percent of revenue, compared with $0.4 million, or 5.9 percent of revenue, in the first quarter of fiscal 2022.

Conference Call

AstroNova will discuss its first-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) 220-8451 (U.S. and Canada) or (773) 377-9070 (International) approximately 10 minutes prior to the start time and enter confirmation code 6015678.

You can hear a replay of the conference call from 12:00 p.m. ET Wednesday, June 8, 2022, until 12:00 p.m. ET on Wednesday, June 15, 2022, by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The confirmation code is 6015678.

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 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 (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, 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
 

April 30, 2022

 

May 1, 2021

Net Revenue  

$

31,010

 

$

29,078

 

Cost of Revenue  

 

20,281

 

 

18,190

 

Gross Profit  

 

10,729

 

 

10,888

 

Total Gross Profit Margin  

 

34.6%

 

 

37.4%

Operating Expenses:    
Selling & Marketing  

 

5,883

 

 

6,092

 

Research & Development  

 

1,522

 

 

1,717

 

General & Administrative  

 

2,560

 

 

2,344

 

Total Operating Expenses  

 

9,965

 

 

10,153

 

Operating Income  

 

764

 

 

735

 

Total Operating Margin  

 

2.5%

 

 

2.5%

Other Expense, net  

 

279

 

 

369

 

Income Before Taxes  

 

485

 

 

366

 

Income Tax Provision (Benefit)  

 

60

 

 

(227

)

Net Income  

$

425

 

$

593

 

Net Income per Common Share - Basic  

$

0.06

 

$

0.08

 

Net Income per Common Share - Diluted  

$

0.06

 

$

0.08

 

   
Weighted Average Number of Common Shares - Basic  

 

7,298

 

 

7,145

 

Weighted Average Number of Common Shares - Diluted  

 

7,396

 

 

7,265

 

ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)
     
  April 30, 2022   January 31, 2022
     
ASSETS    
CURRENT ASSETS    
Cash and Cash Equivalents  

$

5,754

 

 

$

5,276

 

Accounts Receivable, net  

 

18,444

 

 

 

17,124

 

Inventories, net  

 

36,859

 

 

 

34,609

 

Employee Retention Credit Receivable  

 

-

 

 

 

3,135

 

Prepaid Expenses and Other Current Assets  

 

4,333

 

 

 

3,634

 

Total Current Assets  

 

65,390

 

 

 

63,778

 

PROPERTY, PLANT AND EQUIPMENT  

 

50,732

 

 

 

50,821

 

Less Accumulated Depreciation  

 

(39,754

)

 

 

(39,380

)

Property, Plant and Equipment, net  

 

10,978

 

 

 

11,441

 

OTHER ASSETS    
Intangible Assets, net  

 

18,737

 

 

 

19,200

 

Goodwill  

 

11,719

 

 

 

12,156

 

Deferred Tax Assets  

 

5,585

 

 

 

5,591

 

Right of Use Asset  

 

976

 

 

 

1,094

 

Other Assets  

 

1,791

 

 

 

1,695

 

TOTAL ASSETS  

$

115,176

 

 

$

114,955

 

LIABILITIES AND SHAREHOLDERS’ EQUITY    
CURRENT LIABILITIES    
Accounts Payable  

$

6,952

 

 

$

8,590

 

Accrued Compensation  

 

2,665

 

 

 

3,512

 

Other Liabilities and Accrued Expenses  

 

3,613

 

 

 

4,113

 

Revolving Line of Credit  

 

3,000

 

 

 

-

 

Current Portion of Royalty Obligation  

 

2,000

 

 

 

2,000

 

Current Portion of Long-Term Debt  

 

1,000

 

 

 

1,000

 

Current Liability – Excess Royalty Payment Due  

 

311

 

 

 

235

 

Income Taxes Payable  

 

1,637

 

 

 

323

 

Deferred Revenue  

 

222

 

 

 

262

 

Total Current Liabilities  

 

21,400

 

 

 

20,035

 

NON-CURRENT LIABILITIES    
Long-Term Debt, net of current portion  

 

7,910

 

 

 

8,154

 

Royalty Obligation, net of current portion  

 

3,923

 

 

 

4,361

 

Lease Liability, net of current portion  

 

708

 

 

 

808

 

Other Long-Term Liabilities  

 

399

 

 

 

399

 

Deferred Tax Liabilities  

 

140

 

 

 

186

 

TOTAL LIABILITIES  

 

34,480

 

 

 

33,943

 

SHAREHOLDERS’ EQUITY    
Common Stock  

 

532

 

 

 

528

 

Additional Paid-in Capital  

 

60,113

 

 

 

59,692

 

Retained Earnings  

 

56,939

 

 

 

56,514

 

Treasury Stock  

 

(34,223

)

 

 

(33,974

)

Accumulated Other Comprehensive Loss, net of tax  

 

(2,665

)

 

 

(1,748

)

TOTAL SHAREHOLDERS’ EQUITY  

 

80,696

 

 

 

81,012

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  

$

115,176

 

 

$

114,955

 

ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)
   
  Revenue   Segment Operating Profit (Loss)
  Three Months Ended   Three Months Ended
 

April 30, 2022

 

May 1, 2021

 

April 30, 2022

 

May 1, 2021

Product Identification  

$

21,724

 

$

23,098

 

$

1,413

 

$

2,729

 

Test & Measurement  

 

9,286

 

 

5,980

 

 

1,911

 

 

350

 

Total  

$

31,010

 

$

29,078

 

 

3,324

 

 

3,079

 

Corporate Expenses      

 

2,560

 

 

2,344

 

Operating Income      

 

764

 

 

735

 

Other Expense, net      

 

279

 

 

369

 

Income Before Income Taxes      

 

485

 

 

366

 

Income Tax Provision (Benefit)      

 

60

 

 

(227

)

Net Income      

$

425

 

$

593

 

ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA
Amounts in Thousands
(Unaudited)
     
  Three Months Ended
 

April 30, 2022

  May 1, 2021
Net Income − GAAP  

$

425

 

$

593

 

Interest Expense  

 

175

 

 

218

 

Income Tax Provision (Benefit)  

 

60

 

 

(227

)

Share-Based Compensation  

 

337

 

 

478

 

Depreciation/Amortization  

 

912

 

 

1,425

 

Adjusted EBITDA  

$

1,909

 

$

2,487

 

 

Scott Solomon
Senior Vice President
Sharon Merrill Associates, Inc.
(857) 383-2409
ALOT@investorrelations.com

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