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AstroNova Announces Financial Results for the Third Quarter of Fiscal 2020

WEST WARWICK, R.I.--(BUSINESS WIRE)--

Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share

Third-Quarter Fiscal 2020 Summary

  • Bookings of $32.6 million
  • Revenue of $33.3 million
  • Operating income of $0.4 million
  • Earnings per diluted share of $0.06

AstroNova, Inc. (ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2020 third quarter ended November 2, 2019.

CEO Commentary

“Our Test & Measurement segment faced continued headwinds in the third quarter related to the ongoing grounding of the 737 MAX,” said AstroNova President and CEO Greg Woods. “In Product Identification, similar to the second quarter, we experienced some softness primarily as a result of weaker demand from a few customers in Asia. In spite of these short-term challenges, we believe that the underlying fundamentals in both businesses remain strong. We continue to invest in product innovation, strengthen our global marketing organization, and enhance our Aerospace service capabilities to drive and support future growth.

“During the quarter, we launched and showcased several new Product Identification solutions, including the QuickLabel® QL-850, the TrojanLabel® T3-OPX and the TrojanLabel® T2-L, which expand our addressable market, creating new opportunities in the areas of digitally printed labels and flexible packaging,” Woods said. “We’re also particularly excited about the new TrojanLabel® T5, all-in-one digital print and finish in-line labeling solution designed for professional printers and large brand owners.”

Business Outlook

“Our overall outlook remains positive, and we continue to expect modest revenue growth in fiscal 2020,” Woods said. “While the combination of industry headwinds and the investments we are making in future growth are likely to impact near-term results, we are confident in our long-term growth prospects and are well positioned to address favorable secular growth trends across our business.”

Operating Segment Results

Product Identification segment revenue in the third quarter of fiscal 2020 was $21.7 million, consistent with the prior-year period. Segment operating income was $1.9 million, or 8.6% of revenue, versus $2.0 million, or 9.3% of revenue, in the prior year.

Test & Measurement segment revenue in the third quarter of fiscal 2020 was $11.6 million compared with $12.5 million in the same period of fiscal 2019. Segment operating income was $1.4 million, or 12.1% of revenue, for the third quarter of fiscal 2020 compared with $3.2 million, or 25.4% of revenue, in the comparable period of fiscal 2019.

Hardware revenue was $12.2 million, compared with $13.1 million in the prior-year period. Supplies revenue was $17.7 million, down 2.5% from $18.1 million in the same period of fiscal 2019. Service/other revenue was $3.5 million, up 17.1% from same period a year earlier.

Third-Quarter Financial Summary

Revenue totaled $33.3 million versus $34.2 million in the third quarter of fiscal 2019, reflecting lower sales in the Test & Measurement segment.

Gross profit was $12.3 million, or 36.9% of revenue, compared with $13.9 million, or 40.7% of revenue, for Q3 fiscal 2019. The decrease in gross profit dollars and margin was attributable primarily to lower revenue and less favorable sales mix.

Operating expenses were $11.9 million compared with $11.5 million in the same period of fiscal 2019.

Operating income was $0.4 million, or 1.3% of revenue, compared with $2.4 million, or 6.9% of revenue, in the third quarter of fiscal 2019.

Net income was $0.5 million, or $0.06 per diluted share, versus net income of $1.4 million, or $0.20 per diluted share, in the third quarter of fiscal 2019.

Bookings were $32.6 million compared with $34.2 million in the third quarter of 2019.

Backlog at November 2, 2019 was $20.8 million, compared with $24.5 million at the end of the fiscal 2019 third quarter.

Board Declares Quarterly Dividend

On December 3, 2019, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on December 26, 2019, to shareholders of record on December 19, 2019.

Third-Quarter Fiscal 2020 Conference Call

AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (800) 367-2403 (U.S. and Canada) or (334) 777-6978 (International) approximately 10 minutes prior to the start time and enter confirmation code 5119055.

You can hear a replay of the conference call from 12:00 p.m. ET Wednesday, December 4 until 12:00 p.m. ET Wednesday, December 11 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 5119055.

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.

About AstroNova

AstroNova, Inc. (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 offers a variety of hardware and software products and associated supplies that allow customers to mark, track and enhance the appearance of their products. The segment’s two business units are QuickLabel®, the industry leader in tabletop digital color label printing and TrojanLabel®, an innovative leader for professional label presses and specialty printers. The Test and Measurement segment includes the Test & Measurement business unit, which offers a suite of products and services that acquire, record and analyze electronic signal data from local and networked sensors. The segment also includes the AstroNova Aerospace business unit, which designs and manufactures avionics equipment and systems that serve the world’s aerospace and defense industries with proven advanced airborne technology solutions for both the cockpit and the cabin. The key products include flight deck printers, networking hardware and related accessories.

AstroNova is a member of the Russell 3000® Index, the Russell 2000® Index, 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 in fiscal 2020 and the effect of the grounding of the 737 MAX, 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, 2019 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 Nine Months Ended
November 2,
2019
October 27,
2018
November 2,
2019
October 27,
2018
Net Revenue

$

33,318

 

$

34,196

 

$

102,967

 

$

99,490

 

 
Cost of Revenue

 

21,021

 

 

20,288

 

 

64,454

 

 

60,073

 

Gross Profit

 

12,297

 

 

13,908

 

 

38,513

 

 

39,417

 

 

36.9

%

 

40.7

%

 

37.4

%

 

39.6

%

Operating Expenses:
Selling & Marketing

 

6,944

 

 

6,587

 

 

20,122

 

 

19,484

 

Research & Development

 

2,076

 

 

2,123

 

 

5,868

 

 

5,844

 

General & Administrative

 

2,830

 

 

2,836

 

 

8,445

 

 

8,298

 

 

11,850

 

 

11,546

 

 

34,435

 

 

33,626

 

 
Operating Income

 

447

 

 

2,362

 

 

4,078

 

 

5,791

 

 

1.3

%

 

6.9

%

 

4.0

%

 

5.8

%

 
Other Income, Net

 

(238

)

 

(538

)

 

(788

)

 

(1,320

)

Income Before Taxes

 

209

 

 

1,824

 

 

3,290

 

 

4,471

 

Income Tax (Benefit) Provision

 

(247

)

 

407

 

 

182

 

 

1,046

 

 
Net Income

$

456

 

$

1,417

 

$

3,108

 

$

3,425

 

 
Net Income per Common Share - Basic

$

0.06

 

$

0.21

 

$

0.44

 

$

0.50

 

 
Net Income per Common Share - Diluted

$

0.06

 

$

0.20

 

$

0.43

 

$

0.49

 

 
Weighted Average Number of Common Shares - Basic

 

7,047

 

 

6,925

 

 

7,016

 

 

6,858

 

Weighted Average Number of Common Shares - Diluted

 

7,199

 

 

7,167

 

 

7,272

 

 

7,056

 

 
ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)
 
November 2, 2019 January 31, 2019
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents

$

4,468

 

$

7,534

 

Accounts Receivable, net

 

22,094

 

 

23,486

 

Inventories, net

 

35,594

 

 

30,161

 

Prepaid Expenses and Other Current Assets

 

3,059

 

 

1,427

 

Total Current Assets

 

65,215

 

 

62,608

 

 
Property, Plant and Equipment, net

 

11,323

 

 

10,380

 

OTHER ASSETS
Intangible Assets, net

 

26,454

 

 

29,674

 

Goodwill

 

12,110

 

 

12,329

 

Deferred Tax Assets

 

3,482

 

 

2,928

 

Right of Use Asset

 

1,767

 

 

-

 

Other Assets

 

1,014

 

 

1,064

 

TOTAL ASSETS

$

121,365

 

$

118,983

 

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts Payable

 

6,674

 

$

5,956

 

Accrued Compensation

 

2,968

 

 

5,023

 

Other Liabilities and Accrued Expenses

 

3,789

 

 

2,911

 

Current Portion of Long-Term Debt

 

5,116

 

 

5,208

 

Revolving Credit Facility

 

6,500

 

 

1,500

 

Current Portion of Royalty Obligation

 

2,000

 

 

1,875

 

Current Liability – Excess Royalty Payment Due

 

419

 

 

1,265

 

Deferred Revenue

 

387

 

 

373

 

Income Taxes Payable

 

-

 

 

554

 

Total Current Liabilities

 

27,853

 

 

24,665

 

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

 

9,004

 

 

12,870

 

Royalty Obligation, net of current portion

 

8,488

 

 

9,916

 

Lease Liability, net of current portion

 

1,350

 

 

-

 

Deferred Tax Liabilities

 

539

 

 

40

 

Other Long Term Liabilities

 

1,178

 

 

1,717

 

TOTAL LIABILITIES

 

48,412

 

 

49,208

 

SHAREHOLDERS’ EQUITY
Common Stock

 

518

 

 

511

 

Additional Paid-in Capital

 

55,870

 

 

53,568

 

Retained Earnings

 

51,142

 

 

49,511

 

Treasury Stock

 

(33,454

)

 

(32,997

)

Accumulated Other Comprehensive Loss, net of tax

 

(1,123

)

 

(818

)

TOTAL SHAREHOLDERS’ EQUITY

 

72,953

 

 

69,775

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

121,365

 

$

118,983

 

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

Revenue

Segment Operating Profit

Revenue Segment Operating Profit
November 2,
2019
October 27,
2018
November 2,
2019
October 27,
2018
November 2,
2019
October 27,
2018
November 2,
2019
October 27,
2018
Product Identification

$

21,749

$

21,684

$

1,880

 

$

2,014

 

$

67,484

$

63,407

$

6,990

 

$

5,833

 

T&M

 

11,569

 

12,512

 

1,397

 

 

3,184

 

 

35,483

 

36,083

 

5,533

 

 

8,256

 

Total

$

33,318

$

34,196

 

3,277

 

 

5,198

 

$

102,967

$

99,490

 

12,523

 

 

14,089

 

Corporate Expenses

 

2,830

 

 

2,836

 

 

8,445

 

 

8,298

 

Operating Income

 

447

 

 

2,362

 

 

4,078

 

 

5,791

 

Other Expense-Net

 

(238

)

 

(538

)

 

(788

)

 

(1,320

)

Income Before Income Taxes

 

209

 

 

1,824

 

 

3,290

 

 

4,471

 

Income Tax (Benefit) Provision

 

(247

)

 

407

 

 

182

 

 

1,046

 

Net Income

$

456

 

$

1,417

 

$

3,108

 

$

3,425

 

 

 

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