AstroNova Reports Fiscal 2025 First Quarter Financial Results
AstroNova (Nasdaq: ALOT) reported its fiscal 2025 first quarter results, highlighting $33.0 million in revenue, $1.3 million in operating income, and $1.2 million in net income, with earnings per diluted share at $0.15 and adjusted EBITDA at $2.5 million. The company faced supplier shortages and order delays but expects these issues to be resolved in the current fiscal year. The transition to newer ToughWriter printers is progressing, anticipated to lower costs and improve efficiency. A $4.5 million order push-out impacted the Product Identification segment. The recent MTEX NS acquisition bolsters AstroNova's position in the color digital printing market. The company forecasts mid-single-digit organic revenue growth and adjusted EBITDA margins of 13%-14% for the full fiscal year 2025.
Financial highlights include a 7% YoY decrease in revenue and a 3% drop in gross profit. However, net income rose 39% to $1.2 million. Segment results show a decline in hardware revenue but an increase in service revenue. Backlog reduced to $31.6 million from $38.7 million YoY. Operating profit margins improved in the Product Identification segment but declined in the Test & Measurement segment. An earnings conference call is scheduled for discussion.
- Revenue of $33.0 million.
- Net income increased by 39% to $1.2 million.
- Earnings per diluted share rose 36% to $0.15.
- Adjusted EBITDA of $2.5 million.
- Gross margin improved by 130 basis points to 36.3%.
- Product Identification segment's operating profit margin increased by 290 basis points.
- MTEX NS acquisition expands market reach and product portfolio.
- Company expects to resolve supplier issues and order delays within the fiscal year.
- Forecasts mid-single-digit organic revenue growth and adjusted EBITDA margins of 13%-14%.
- Revenue declined by 7% year-over-year.
- Gross profit fell by 3% to $11.9 million.
- Adjusted EBITDA decreased by 19% to $2.5 million.
- Hardware revenue dropped by 24% year-over-year.
- Backlog decreased to $31.6 million from $38.7 million.
- Bookings reduced to $33.1 million from $38.4 million year-over-year.
- Supplier shortages and an order push-out negatively impacted the quarter.
- Test & Measurement segment's operating profit margin fell to 17.6% from 20.1%.
Insights
AstroNova's Q1 FY2025 financial results show both strengths and challenges. Revenue was initially down by
However, the net income increased significantly by
Potential retail investors should note the mixed signals. Despite short-term declines in revenue and bookings, the company has made strategic moves like the acquisition of MTEX NS and the transition to ToughWriter printers, which could drive future growth. Balancing these aspects is important when considering investment opportunities.
AstroNova's dual-segment business strategy offers unique perspectives. Within the Test & Measurement (T&M) segment, the shift towards more advanced ToughWriter printers represents a critical evolution. Although short-term revenue was impacted by supplier issues, the transition to newer technology should streamline manufacturing costs and enhance product offerings, beneficial for long-term performance.
For the Product Identification (PI) segment, the delay caused by customer-requested design enhancements in mail-handling equipment highlights the company's responsiveness and commitment to client needs. The long-term outlook is positive, especially considering the increased operating profit margin by
Investor interest should focus on the strategic foresight shown in product transitions and market expansion, balanced by the near-term financial bumps experienced.
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
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
“In our Product Identification segment, the year-over-year decrease in first-quarter revenue was partly the result of the push-out of a
Business Outlook
“Looking ahead, we are excited about the prospects for both segments of our business,” Woods said. “With our recent acquisition of
Q1 FY 2025 Financial Highlights
(in thousands, except per share data) |
Q1 FY 2025 |
Q1 FY 2024 |
YoY |
Revenue |
|
|
( |
Gross Profit |
11,972 |
12,385 |
( |
Gross Margin |
|
|
130 pts. |
Operating Expenses |
10,626 |
10,924 |
( |
Operating Income |
1,346 |
1,461 |
( |
Operating Margin |
|
|
-- |
Net Income |
|
|
|
Net Income per Common Share - Diluted |
|
|
|
Adjusted EBITDA |
|
|
( |
Revenue by Type
(in thousands) |
Q1 FY 2025 |
Q1 FY 2024 |
YoY |
Hardware |
|
|
( |
Supplies |
|
|
( |
Service/Other |
|
|
|
Bookings totaled
Backlog as of April 27, 2024 was
Segment Results
Product Identification
Product Identification (PI) segment revenue was
Test & Measurement
Test & Measurement (T&M) segment revenue was
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 (
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
Source: AstroNova
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