AstroNova, Inc. (NASDAQ:ALOT) Q3 2024 Earnings Call Transcript
AstroNova, Inc. (NASDAQ:ALOT) Q3 2024 Earnings Call Transcript December 6, 2023
Operator: Good morning, and welcome to the AstroNova Fiscal Third Quarter 2024 Financial Results Conference Call. Today's conference is being recorded. [Operator Instructions]. I would now like to turn the conference over to Scott Solomon of the company's Investor Relations firm, Sharon Merrill Advisors. Please go ahead, sir.
Scott Solomon : Thank you, Carla, and good morning, everyone. With me on this morning's call are Greg Woods, AstroNova's President and Chief Executive Officer; and David Smith, Vice President and Chief Financial Officer. Greg will discuss the company's segment operating highlights. David will take you through the financials at a high level. Greg will make some concluding comments, and then management will be happy to take your questions. If you've not received a copy of this morning's earnings release, please go to the Investors page of the AstroNova website, www.astronovainc.com. Statements made on today's call that are not statements of historical fact are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on a number of assumptions that could involve risks and uncertainties. Accordingly, actual results could differ materially, except as required by law. Any forward-looking statements speak only as of today, December 6, 2023. AstroNova undertakes no obligation to update these forward-looking statements. For other information regarding the forward-looking statements and the factors that may cause differences, please see the risk factors in AstroNova's annual report on Form 10-K and other filings the company makes with the Securities and Exchange Commission. On today's call, management will refer to non-GAAP financial measures. AstroNova believes that the inclusion of these financial measures helps investors gain a meaningful understanding of the changes in the company's core operating results.
and also helps investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. A reconciliation of the non-GAAP financial measures to their most directly comparable GAAP measures is available in today's earnings release. And with that, I'll turn the call over to Greg.
Greg Woods: Thank you, Scott, and good morning, everyone. We began the second half of fiscal 2024 with a significantly more profitable third quarter. Where operating income increased more than threefold to $4.6 million. Operating margin improved 890 basis points to 12.3% and adjusted EBITDA hit an all-time record up 81% to $5.7 million or 15% of revenue. This profit improvement is a testament to the great agility, hard work and execution by our teams around the world. The increased profit generation was achieved despite an 11% year-over-year revenue decline in our Product Identification segment. This was primarily from the supply side of the business, or the lingering negative impact of an ink quality issue from one of our suppliers has decreased in utilization on some of our printers.
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