AstroNova Announces Fiscal Second-Quarter 2024 Financial Results
- Q2 revenue up 10% YoY
- Anticipated annualized cost savings of $2.4 million
- Test & Measurement segment revenue increases
- Net loss per share of $0.22
- Bookings decrease by 13.7%
Company to Host Conference Call at 9:00 a.m. ET Today
Summary
-
Second-quarter revenue of
$35.5 million 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 $0.15
Q2 2024 Financial Highlights
|
GAAP |
|
Non-GAAP (excluding impact of
|
||||
(in thousands, except per share data) |
Q2 FY
|
Q2 FY
|
YoY |
|
Q2 FY
|
Q2 FY
|
YoY |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Gross Profit |
9,710 |
11,382 |
( |
|
12,658 |
11,382 |
|
Gross Margin |
|
|
(8.0 pts.) |
|
|
|
0.3 pts. |
Operating Expenses |
10,908 |
10,147 |
|
|
10,353 |
10,147 |
|
Operating Income (Loss) |
(1,198) |
1,235 |
n/m* |
|
2,305 |
1,235 |
|
Operating Margin |
( |
|
n/m* |
|
|
|
2.7 pts. |
Net Income (Loss) |
( |
584 |
n/m* |
|
|
|
|
Net Income (Loss) per Common Share |
( |
|
n/m* |
|
|
|
|
*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
“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
“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
Hardware revenue was
Gross profit under generally accepted accounting principles (GAAP) for the second quarter of fiscal 2024 was
GAAP operating expenses in the second quarter of fiscal 2024 totaled
The Company reported a GAAP operating loss of
GAAP net loss for the second quarter of fiscal 2024 was
Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was
Bookings for the second quarter of fiscal 2024 decreased
Backlog as of July 29, 2023 increased
Second-Quarter Fiscal 2024 Operating Segment Results
Product Identification
Product Identification segment revenue was
Test & Measurement
Test & Measurement segment revenue increased to
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 (
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 |
|
|
|
|
|
|
|
|
|||
| 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 |
|
- |
|
|
|
|
|
|
|||
| 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 | |||||||||||||||||||||||||||
| Product Identification |
Test & Measurement |
Total | Product Identification |
Test & Measurement |
Total | Product Identification |
Test & Measurement |
Total | Product Identification |
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
Source: AstroNova
