AstroNova Reports Fiscal Fourth-Quarter and Full-Year 2022 Financial Results
AstroNova (NASDAQ: ALOT) reported mixed results for the fiscal fourth quarter and full year ended January 31, 2022. Fourth-quarter bookings reached $32.9 million with a backlog of $27.8 million. Revenue was $29.7 million, showing slight growth year-over-year. However, the company posted an operating loss of $0.2 million and a net loss of $0.8 million, or $0.10 per share. For the fiscal year, revenue was $117.5 million, with a net income of $6.4 million, or $0.88 per diluted share, boosted by CARES Act benefits. The company faces challenges from supply chain disruptions and rising costs.
- Bookings increased by 13% year-over-year to $32.9 million in Q4 2022.
- GAAP net income for FY 2022 was $6.4 million, or $0.88 per diluted share.
- Revenue from the Test & Measurement segment grew, benefiting from the recovery of the commercial aviation market.
- Operating loss of $0.2 million in Q4 2022 compared to operating income of $1.1 million in Q4 2021.
- Net loss of $0.8 million in Q4 2022, down from net income of $0.8 million in Q4 2021.
- Operating expenses rose by 1.5% to $10.0 million in Q4 2022 amid higher manufacturing costs.
Company to Host Conference Call at
Fiscal Fourth-Quarter 2022 Financial Summary
-
Bookings of
$32.9 million -
Backlog at quarter end of
$27.8 million -
Revenue of
$29.7 million -
Operating loss of
$0.2 million -
Net loss of
$0.8 million $0.10 -
Adjusted EBITDA of
$0.8 million 2.6% of revenue
Fiscal Full-Year 2022 Financial Summary
-
Bookings of
$128.6 million -
Revenue of
$117.5 million -
GAAP operating income of
$4.3 million -
Non-GAAP operating income of
$2.1 million -
GAAP net income of
$6.4 million $0.88 -
Non-GAAP net income of
$916,000 $0.12 -
Adjusted EBITDA of
$13.2 million 11.2% of revenue
CEO Commentary
“Our fourth-quarter results were mixed, as we continued to manage through a range of pandemic-induced global supply chain disruptions, including parts delays and shortages, supplier price increases and surcharges, and much higher transportation costs,” stated
“Our Test & Measurement segment posted revenue and operating margin growth in the quarter, helped by the continuing recovery of the commercial aviation market,” Woods continued. “While domestic passenger traffic has rebounded faster than other routes, the airline industry expects to see a steady ramp up to pre-pandemic levels over the next several quarters.
“In our Product Identification segment, revenue and operating margin declined in the fourth quarter, due to warranty charges, mix and the effect of higher manufacturing costs related to the macroeconomic environment,” Woods said. “Despite those short-term challenges, we are encouraged by the strong performance of our direct-to-package printing solutions such as the T3-OPX, which had a record year in fiscal 2022, its second full year of availability.”
CARES Act Benefits and ERP Write-Off Costs
On a Generally Accepted Accounting Principles (GAAP) basis, net income for the 12 months ended
Operating Segment Results
Product Identification segment revenue was
For fiscal full-year 2022, Product Identification revenue increased
Test & Measurement segment revenue was
For fiscal full-year 2022, Test & Measurement revenue was
Financial Results Summary
Revenue totaled
Hardware revenue in the fourth quarter of fiscal 2022 was
Gross profit was
Operating expenses totaled
Operating loss in the fourth quarter of fiscal 2022 was
Net loss was
Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was
Bookings in the fourth quarter of fiscal 2022 were
Backlog as of
Earnings Conference Call
You can hear a replay of the conference call from
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 excluding CARES Act benefits and ERP write-off costs, non-GAAP net income per diluted share excluding CARES Act benefits and ERP write-off costs, non-GAAP operating income excluding CARES Act benefits, non-GAAP gross profit excluding CARES Act benefits, non-GAAP operating expenses excluding CARES Act benefits, non-GAAP segment operating profit excluding CARES Act benefits, earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA excluding ERP write-off costs and CARES Act benefits, Adjusted EBITDA, and Adjusted EBITDA excluding ERP write-off costs and CARES Act benefits.
About
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
| Condensed Consolidated Statements of Income | ||||||||||||||||||
| In Thousands Except for Per Share Data | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| Revenue | $ |
29,700 |
|
$ |
29,438 |
|
$ |
117,480 |
|
$ |
116,033 |
|
||||||
| Cost of Revenue |
|
19,949 |
|
|
18,456 |
|
|
73,741 |
|
|
74,673 |
|
||||||
| Gross Profit |
|
9,751 |
|
|
10,982 |
|
|
43,739 |
|
|
41,360 |
|
||||||
| Total Gross Profit Margin |
|
32.8 |
% |
|
37.3 |
% |
|
37.2 |
% |
|
35.6 |
% |
||||||
| Operating Expenses: | ||||||||||||||||||
| Selling & Marketing |
|
6,247 |
|
|
6,267 |
|
|
23,177 |
|
|
23,301 |
|
||||||
| Research & Development |
|
1,549 |
|
|
1,361 |
|
|
6,753 |
|
|
6,206 |
|
||||||
| General & Administrative |
|
2,182 |
|
|
2,206 |
|
|
9,553 |
|
|
9,420 |
|
||||||
| Total Operating Expenses |
|
9,978 |
|
|
9,834 |
|
|
39,483 |
|
|
38,927 |
|
||||||
| Operating Income |
|
(227 |
) |
|
1,148 |
|
|
4,256 |
|
|
2,433 |
|
||||||
| Total Operating Margin |
|
-0.8 |
% |
|
3.9 |
% |
|
3.6 |
% |
|
2.1 |
% |
||||||
| Other Income (Expense), net: | ||||||||||||||||||
| Gain on Extinguishment of Debt - PPP Loan |
|
- |
|
|
- |
|
|
4,466 |
|
|
- |
|
||||||
| Loss on Disposal of Assets |
|
- |
|
|
- |
|
|
(696 |
) |
|
- |
|
||||||
| Interest Expense |
|
(150 |
) |
|
(255 |
) |
|
(677 |
) |
|
(955 |
) |
||||||
| Gain(Loss) on Foreign Currency Transactions |
|
(57 |
) |
|
276 |
|
|
(288 |
) |
|
590 |
|
||||||
| Other, net |
|
(17 |
) |
|
183 |
|
|
(27 |
) |
|
111 |
|
||||||
|
(224 |
) |
|
204 |
|
|
2,778 |
|
|
(254 |
) |
|||||||
| Income (Loss) Before Taxes |
|
(451 |
) |
|
1,352 |
|
|
7,034 |
|
|
2,179 |
|
||||||
| Income Tax Provision |
|
308 |
|
|
516 |
|
|
605 |
|
|
895 |
|
||||||
| Net Income (Loss) | $ |
(759 |
) |
$ |
836 |
|
$ |
6,429 |
|
$ |
1,284 |
|
||||||
| Net Income (Loss) per Common Share - Basic | $ |
(0.10 |
) |
$ |
0.12 |
|
$ |
0.89 |
|
$ |
0.18 |
|
||||||
| Net Income (Loss) per Common Share - Diluted | $ |
(0.10 |
) |
$ |
0.12 |
|
$ |
0.88 |
|
$ |
0.18 |
|
||||||
| Weighted Average Number of Common Shares - Basic |
|
7,237 |
|
|
7,124 |
|
|
7,207 |
|
|
7,104 |
|
||||||
| Weighted Average Number of Common Shares - Diluted |
|
7,237 |
|
|
7,261 |
|
|
7,339 |
|
|
7,166 |
|
||||||
| Balance Sheet | ||||||||
| In Thousands | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and Cash Equivalents | $ |
5,276 |
|
$ |
11,439 |
|
||
| Accounts Receivable, net |
|
17,124 |
|
|
17,415 |
|
||
| Inventories, net |
|
34,609 |
|
|
30,060 |
|
||
| Prepaid Expenses and Other Current Assets |
|
6,769 |
|
|
1,807 |
|
||
| Total Current Assets |
|
63,778 |
|
|
60,721 |
|
||
| PROPERTY, PLANT AND EQUIPMENT |
|
50,821 |
|
|
50,839 |
|
||
| Less Accumulated Depreciation |
|
(39,380 |
) |
|
(38,828 |
) |
||
| Property, Plant and Equipment, net |
|
11,441 |
|
|
12,011 |
|
||
| OTHER ASSETS | ||||||||
| Intangible Assets, net |
|
19,200 |
|
|
21,502 |
|
||
|
12,156 |
|
|
12,806 |
|
|||
| Deferred Tax Assets |
|
5,591 |
|
|
5,941 |
|
||
| Right of Use Asset |
|
1,094 |
|
|
1,389 |
|
||
| Other Assets |
|
1,695 |
|
|
1,103 |
|
||
| TOTAL ASSETS | $ |
114,955 |
|
$ |
115,473 |
|
||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts Payable | $ |
8,590 |
|
$ |
5,734 |
|
||
| Accrued Compensation |
|
3,512 |
|
|
2,917 |
|
||
| Other Liabilities and Accrued Expenses |
|
4,113 |
|
|
3,874 |
|
||
| Current Portion of Royalty Obligation |
|
2,000 |
|
|
2,000 |
|
||
| Current Portion of Long-Term Debt |
|
1,000 |
|
|
5,326 |
|
||
| Current Liability – Excess Royalty Payment Due |
|
235 |
|
|
177 |
|
||
| Income Taxes Payable |
|
323 |
|
|
655 |
|
||
| Deferred Revenue |
|
262 |
|
|
285 |
|
||
| Total Current Liabilities |
|
20,035 |
|
|
20,968 |
|
||
| NON-CURRENT LIABILITIES | ||||||||
| Long-Term Debt, net of current portion |
|
8,154 |
|
|
7,109 |
|
||
| Royalty Obligation, net of current portion |
|
4,361 |
|
|
6,161 |
|
||
| Long-Term Debt - PPP Loan |
|
- |
|
|
4,422 |
|
||
| Lease Liability, net of current portion |
|
808 |
|
|
1,065 |
|
||
| Other Long-Term Liabilities |
|
399 |
|
|
681 |
|
||
| Deferred Tax Liabilities |
|
186 |
|
|
384 |
|
||
| TOTAL LIABILITIES |
|
33,943 |
|
|
40,790 |
|
||
| SHAREHOLDERS’ EQUITY | ||||||||
| Common Stock |
|
528 |
|
|
521 |
|
||
|
59,692 |
|
|
58,049 |
|
|||
| Retained Earnings |
|
56,514 |
|
|
50,085 |
|
||
| Treasury Stock |
|
(33,974 |
) |
|
(33,588 |
) |
||
| Accumulated Other Comprehensive Loss, net of tax |
|
(1,748 |
) |
|
(384 |
) |
||
| TOTAL SHAREHOLDERS’ EQUITY |
|
81,012 |
|
|
74,683 |
|
||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ |
114,955 |
|
$ |
115,473 |
|
||
| 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 | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
| Product Identification | $ |
22,396 |
$ |
23,361 |
$ |
1,460 |
|
$ |
3,072 |
$ |
90,915 |
$ |
90,268 |
$ |
10,411 |
$ |
12,885 |
|
||||||||||||||
| Test & Measurement |
|
7,304 |
|
6,077 |
|
495 |
|
|
282 |
|
26,565 |
|
25,765 |
|
3,398 |
|
(1,032 |
) |
||||||||||||||
| Total | $ |
29,700 |
$ |
29,438 |
|
1,955 |
|
|
3,354 |
$ |
117,480 |
$ |
116,033 |
|
13,809 |
|
11,853 |
|
||||||||||||||
| Corporate Expenses |
|
2,182 |
|
|
2,206 |
|
9,553 |
|
9,420 |
|
||||||||||||||||||||||
| Operating Income |
|
(227 |
) |
|
1,148 |
|
4,256 |
|
2,433 |
|
||||||||||||||||||||||
| Other Income (Expense), net |
|
(224 |
) |
|
204 |
|
2,778 |
|
(254 |
) |
||||||||||||||||||||||
| Income (Loss) Before Income Taxes |
|
(451 |
) |
|
1,352 |
|
7,034 |
|
2,179 |
|
||||||||||||||||||||||
| Income Tax Provision |
|
308 |
|
|
516 |
|
605 |
|
895 |
|
||||||||||||||||||||||
| Net Income (Loss) | $ |
(759 |
) |
$ |
836 |
$ |
6,429 |
$ |
1,284 |
|
||||||||||||||||||||||
|
|||||||||||||||
| Reconciliation of GAAP to Non-GAAP - Gross Profit | |||||||||||||||
| Amounts in Thousands | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| Gross Profit − GAAP | $ |
9,751 |
$ |
10,982 |
$ |
43,739 |
|
$ |
41,360 |
||||||
| Employee Retention Credit, net |
|
- |
|
- |
|
(1,641 |
) |
|
- |
||||||
| Gross Profit − Non-GAAP | $ |
9,751 |
$ |
10,982 |
$ |
42,098 |
|
$ |
41,360 |
||||||
| Reconciliation of GAAP to Non-GAAP - Operating Expenses | ||||||||||||||
| Amounts in Thousands | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| Operating Expenses − GAAP | $ |
9,978 |
$ |
9,834 |
$ |
39,483 |
$ |
38,927 |
||||||
| Employee Retention Credit, net |
|
- |
|
- |
|
489 |
|
- |
||||||
| Operating Expenses − Non-GAAP | $ |
9,978 |
$ |
9,834 |
$ |
39,972 |
$ |
38,927 |
||||||
| Reconciliation of GAAP to Non-GAAP - Operating Income | ||||||||||||||||
| Amounts in Thousands | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Operating Income − GAAP | $ |
(227 |
) |
$ |
1,148 |
$ |
4,256 |
|
$ |
2,433 |
||||||
| Employee Retention Credit, net |
|
- |
|
|
- |
|
(2,130 |
) |
|
- |
||||||
| Operating Income − Non-GAAP | $ |
(227 |
) |
$ |
1,148 |
$ |
2,126 |
|
$ |
2,433 |
||||||
| Reconciliation of GAAP to Non-GAAP - Net Income (Loss) | ||||||||||||||||
| Amounts in Thousands | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Net Income (Loss) − GAAP | $ |
(759 |
) |
$ |
836 |
$ |
6,429 |
|
$ |
1,284 |
||||||
| Oracle EnterpriseOne ERP Write-off | $ |
- |
|
|
- |
$ |
528 |
|
|
- |
||||||
| Employee Retention Credit, net |
|
- |
|
|
- |
|
(1,615 |
) |
|
- |
||||||
| PPP Loan Forgiveness |
|
- |
|
|
- |
|
(4,426 |
) |
|
- |
||||||
| Net Income (Loss) − Non-GAAP | $ |
(759 |
) |
$ |
836 |
$ |
916 |
|
$ |
1,284 |
||||||
| Reconciliation of GAAP to Non-GAAP - Diluted Earnings Per Share | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Diluted Earnings Per Share − GAAP | $ |
(0.10 |
) |
$ |
0.12 |
$ |
0.88 |
|
$ |
0.18 |
||||||
| Oracle EnterpriseOne ERP Write-off |
|
- |
|
|
- |
|
0.07 |
|
|
- |
||||||
| Employee Retention Credit, net |
|
- |
|
|
- |
|
(0.22 |
) |
|
- |
||||||
| PPP Loan Forgiveness |
|
- |
|
|
- |
|
(0.60 |
) |
|
- |
||||||
| Diluted Earnings Per Share − Non-GAAP | $ |
(0.10 |
) |
$ |
0.12 |
$ |
0.12 |
|
$ |
0.18 |
||||||
| Reconciliation of Net Income to EBITDA | |||||||||||||||||
| Amounts in Thousands | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Net Income − GAAP | $ |
(759 |
) |
$ |
836 |
|
$ |
6,429 |
|
$ |
1,284 |
||||||
| Interest Expense |
|
150 |
|
|
286 |
|
|
675 |
|
|
776 |
||||||
| Income Tax Expense (Provision) |
|
308 |
|
|
(32 |
) |
|
605 |
|
|
379 |
||||||
| Depreciation/Amortization |
|
926 |
|
|
1,438 |
|
|
3,996 |
|
|
4,571 |
||||||
| EBITDA | $ |
625 |
|
$ |
2,528 |
|
$ |
11,705 |
|
$ |
7,010 |
||||||
| Net Income - Employee Retention Credit |
|
- |
|
|
- |
|
|
(1,615 |
) |
|
- |
||||||
| Net Income - PPP Loan Forgiveness |
|
- |
|
|
- |
|
|
(4,426 |
) |
|
- |
||||||
| Net Income - Oracle EnterpriseOne ERP Write-off |
|
- |
|
|
- |
|
|
528 |
|
- |
|||||||
| Income Tax Expense - Employee Retention Credit |
|
- |
|
|
- |
|
|
515 |
|
|
- |
||||||
| Income Tax Expense - PPP Loan Forgiveness |
|
- |
|
|
- |
|
|
40 |
|
|
- |
||||||
| Income Tax Expense - Oracle EnterpriseOne ERP Write-off |
|
- |
|
- |
|
(168 |
) |
- |
|||||||||
| EBITDA | $ |
625 |
|
$ |
2,528 |
|
$ |
6,579 |
|
$ |
7,010 |
||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||||||||
| Amounts in Thousands | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Net Income (Loss) − GAAP | $ |
(759 |
) |
$ |
836 |
|
$ |
6,429 |
|
$ |
1,284 |
||||||
| Interest Expense |
|
150 |
|
|
286 |
|
|
675 |
|
|
776 |
||||||
| Income Tax (Provision) Expense |
|
308 |
|
|
(32 |
) |
|
605 |
|
|
379 |
||||||
| Depreciation/Amortization |
|
926 |
|
|
1,438 |
|
|
3,996 |
|
|
4,571 |
||||||
| Share-Based Compensation |
|
148 |
|
|
591 |
|
|
1,493 |
|
|
1,687 |
||||||
| Adjusted EBITDA | $ |
773 |
|
$ |
3,119 |
|
$ |
13,198 |
|
$ |
8,697 |
||||||
| Net Income - Employee Retention Credit |
|
- |
|
|
- |
|
|
(1,615 |
) |
|
- |
||||||
| Net Income - PPP Loan Forgiveness |
|
- |
|
|
- |
|
|
(4,426 |
) |
|
- |
||||||
| Net Income - Oracle EnterpriseOne ERP Write-off |
|
- |
|
- |
|
528 |
|
- |
|||||||||
| Income Tax Expense - Employee Retention Credit |
|
- |
|
|
- |
|
|
515 |
|
|
- |
||||||
| Income Tax Expense - PPP Loan Forgiveness |
|
- |
|
|
- |
|
|
40 |
|
|
- |
||||||
| Income Tax Expense - Oracle EnterpriseOne ERP Write-off |
|
- |
|
- |
|
(168 |
) |
- |
|||||||||
| Adjusted EBITDA | $ |
773 |
|
$ |
3,119 |
|
$ |
8,072 |
|
$ |
8,697 |
||||||
| Reconciliation of Segment GAAP to Non-GAAP Operating Profit (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Amounts in Thousands | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Identification | Test & Measurement | Total | Product Identification | Test & Measurement | Total | Product Identification | Test & Measurement | Total | Product Identification | Test & Measurement | Total | ||||||||||||||||||||||||||||||||||||||||
| Segment Operating Profit (Loss) - GAAP | $ |
1,460 |
$ |
495 |
$ |
1,955 |
$ |
3,072 |
$ |
282 |
$ |
3,354 |
$ |
10,411 |
|
$ |
3,398 |
|
$ |
13,809 |
|
$ |
12,885 |
$ |
(1,032 |
) |
$ |
11,853 |
|||||||||||||||||||||||
| Employee Retention Credit, net |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(1,430 |
) |
|
(802 |
) |
|
(2,232 |
) |
|
- |
|
- |
|
|
- |
|||||||||||||||||||||||
| Segment Operating Profit - Non-GAAP | $ |
1,460 |
$ |
495 |
$ |
1,955 |
$ |
3,072 |
$ |
282 |
$ |
3,354 |
$ |
8,982 |
|
$ |
2,596 |
|
$ |
11,578 |
|
$ |
12,885 |
$ |
(1,032 |
) |
$ |
11,853 |
|||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220413006076/en/
Senior Vice President
(617) 320-8282
ALOT@investorrelations.com
Source:
FAQ
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