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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

View source version on businesswire.com: https://www.businesswire.com/news/home/20191204005203/en/