Board of Directors Declares Regular Quarterly Cash Dividend of $0.07
Per Share
First Quarter Fiscal 2019 Achievements (all comparisons with first
quarter fiscal 2018)
-
Revenue of $31.5 million, up 29 percent
-
Operating income of $1.3 million, up 79 percent
-
Diluted EPS of $0.12 per share, up 71 percent
-
Bookings of $33.3 million, up 29 percent
-
Backlog of $23.9 million, up 31 percent
WEST WARWICK, R.I.--(BUSINESS WIRE)--
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization
technologies, today announced financial results for the fiscal 2019
first quarter ended April 28, 2018.
“We continued the Company’s strong performance during the first quarter
of FY2019 driven by solid revenue growth contributions from both our
Test & Measurement (T&M) and Product Identification (PI) segments,” said
AstroNova President and CEO Greg Woods.
Revenue from the T&M segment was especially strong at $11.5 million, up
98 percent from the first quarter of fiscal 2018, with significant
contributions from the recently acquired Honeywell Aerospace printer
product line. In addition, the Company achieved double digit growth from
its line of data acquisition and recording systems.
The PI segment with its product line of QuickLabel branded digital color
label printers and related supplies along with the TrojanLabel product
line of digital color label presses and specialty printing systems
continued its year-over-year growth with a 7 percent increase.
AstroNova’s domestic and international channels showed strong growth in
the quarter with the international portion of the business expanding to
39 percent of revenue. Domestic revenues were $19.2 million representing
an increase of 23 percent from the first quarter of fiscal 2018, while
revenues through international channels were $12.3 million reflecting a
40 percent year-over-year growth rate.
First Quarter 2019 Operating Results
Total revenue was $31.5 million, a 29 percent increase over the prior
year.
Gross profit was $12.1 million, or 38.5 percent of revenue, as compared
with 38.0 percent of revenue for the prior year. The improvement is
traceable to revenue growth and product mix.
Operating expenses were $10.8 million compared with $8.6 million in the
prior year period, due primarily to costs associated with increased
selling and marketing initiatives and costs associated with the
integration of the Honeywell printer line into the West Warwick, Rhode
Island manufacturing facility.
Operating income was $1.3 million, a 4.0 percent margin, compared with
$707,000, a 2.9 percent margin in the prior year.
Net income was $814,000, or $0.12 per diluted share, compared with net
income of $512,000, or $0.07 per diluted share, in the prior year.
A change in accounting estimates for product costs and operating
expenses caused actual amounts billed and received to differ from
initial estimates under the Honeywell agreement which resulted in an
increase of $1.0 million in operating income ($0.8 million net of tax or
$0.12 per diluted share) in the first quarter. In addition, in the first
quarter a change in accounting estimates for revenue subject to customer
rebates under the Honeywell agreement increased operating income by $0.4
million ($0.3 million net of tax or $0.05 per diluted share).
Bookings increased 29 percent to $33.3 million from $25.8 million in the
first quarter of fiscal 2018.
Backlog at April 28, 2018 was $23.9 million, up 31 percent from $18.2
million at the end of the fiscal 2018 first quarter.
First Quarter 2019 Operating Segment Results
The Product Identification segment generated revenue of $20.0
million, a 7 percent increase compared with $18.6 million in the prior
year on higher sales of hardware, supplies and services. Segment
operating income was $1.7 million, or 8.3 percent of revenue, versus
$2.5 million, or 13.4 percent of revenue, in the prior year.
The Test & Measurement segment generated revenue of $11.5
million, a 98 percent increase from $5.8 million in the prior year,
primarily reflecting the impact of the Honeywell asset purchase and
licensing agreement. Segment operating income was $2.3 million, or 19.6
percent of revenue, versus $71,000, or 1.2 percent of revenue, in the
prior year.
Hardware revenue was $12.0 million, a 64 percent increase from $7.3
million in the prior year. Supplies revenue was $16.7 million, a 13
percent increase from $14.8 million in the same period of fiscal 2018.
Service/other revenue was $2.8 million, a 21 percent increase over the
prior year.
Board Declares Quarterly Dividend
On June 4, 2018, 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 June 29, 2018, to shareholders of record on June 15, 2018.
Recent Highlights
-
The Company received a Supplemental Type Certificate from the Federal
Aviation Administration for the retrofit installation of its
ToughWriter® 5 flight deck data printer on six models of the Boeing
737 Next Generation aircraft.
-
Yvonne Schlaeppi, a Managing Partner at international strategic
advisory firm Stratevise, was appointed to the Board of Directors as
the Company’s newest independent director.
Business Outlook
“We continue to be positive on our expectations for fiscal 2019 with
comparable sales and earnings in the second quarter and improving
performance in the second half of the year as we wind down the
Transition Services Agreement with Honeywell for our new Aerospace
printer line as well as increased revenue contributions from our new
TrojanLabel product lines,” Woods said.
First-Quarter Fiscal 2019 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) 263-0877
(U.S. and Canada) or (323) 794-2094 (International) approximately 10
minutes prior to the start time and enter confirmation code 6005380.
You can hear a replay of the conference call from 12:00 Noon ET Tuesday,
June 5 until 12:00 Noon ET Tuesday, June 12 by dialing (888) 203-1112
(U.S. and Canada) or (719) 457-0820 (International). The passcode is
6005380. 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. (NASDAQ: ALOT), a global leader in data visualization
technologies, 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™, a leader in the
light-production color label press and specialty printer markets. 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 Aerospace business unit, which makes printers,
networking hardware and related accessories. These products are used in
the aircraft flight deck to print flight plans, navigation information
and performance data and in the aircraft cabin to print maintenance
data, receipts and passenger manifests. AstroNova is a member of 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 expectations regarding the
integration of the Honeywell product line and its anticipated
performance in fiscal 2019, 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, 2018 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.
|
Consolidated Statements of Income
|
In Thousands Except for Per Share Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
April 28, 2018
|
|
|
April 29, 2017
|
Revenue
|
|
|
$31,487
|
|
|
$24,458
|
|
|
|
|
|
|
|
Cost of Revenue
|
|
|
19,377
|
|
|
15,152
|
Gross Profit
|
|
|
12,110
|
|
|
9,306
|
|
|
|
38.5%
|
|
|
38.0%
|
Operating Expenses:
|
|
|
|
|
|
|
Selling & Marketing
|
|
|
6,500
|
|
|
5,238
|
Research & Development
|
|
|
1,692
|
|
|
1,505
|
General & Administrative
|
|
|
2,653
|
|
|
1,856
|
|
|
|
10,845
|
|
|
8,599
|
|
|
|
|
|
|
|
Operating Income
|
|
|
1,265
|
|
|
707
|
|
|
|
4.0%
|
|
|
2.9%
|
|
|
|
|
|
|
|
Other Expense
|
|
|
(270)
|
|
|
(48)
|
Income Before Taxes
|
|
|
995
|
|
|
659
|
Income Tax Provision
|
|
|
181
|
|
|
147
|
|
|
|
|
|
|
|
Net Income
|
|
|
$814
|
|
|
$512
|
|
|
|
|
|
|
|
Net Income per Common Share - Basic
|
|
|
$0.12
|
|
|
$0.07
|
|
|
|
|
|
|
|
Net Income per Common Share - Diluted
|
|
|
$0.12
|
|
|
$0.07
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares - Basic
|
|
|
6,788
|
|
|
7,480
|
Weighted Average Number of Common Shares - Diluted
|
|
|
6,916
|
|
|
7,616
|
|
|
|
|
|
|
|
Dividends Declared Per Common Share
|
|
|
$0.07
|
|
|
$0.07
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheet Data
|
Amounts In Thousands
|
(Unaudited)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
April 28, 2018
|
|
January 31, 2018
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
|
$
|
6,838
|
|
|
$
|
10,177
|
Securities Available for Sale
|
|
|
|
|
-
|
|
|
|
1,511
|
Accounts Receivable, net
|
|
|
|
|
25,285
|
|
|
|
22,400
|
Inventory, net
|
|
|
|
|
27,697
|
|
|
|
27,609
|
Prepaid Expenses and Other Current Assets
|
1,229
|
|
|
|
1,251
|
Total Current Assets
|
|
|
|
|
61,049
|
|
|
|
62,948
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
43,341
|
|
|
|
42,877
|
Less Accumulated Depreciation
|
|
|
|
(33,580)
|
|
|
|
(33,125)
|
Property, Plant and Equipment, net
|
9,761
|
|
|
|
9,752
|
OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
Intangible Assets, net
|
|
|
|
|
32,927
|
|
|
|
33,633
|
Goodwill
|
|
|
|
|
12,786
|
|
|
|
13,004
|
Deferred Tax Assets
|
|
|
|
|
1,828
|
|
|
|
1,829
|
Other Assets
|
|
|
|
|
1,292
|
|
|
|
1,147
|
Total Other Assets
|
|
|
|
|
48,833
|
|
|
|
49,613
|
TOTAL ASSETS
|
|
|
|
$
|
119,643
|
|
|
$
|
122,313
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
|
$
|
9,945
|
|
|
$
|
11,808
|
Accrued Compensation
|
|
|
|
|
2,971
|
|
|
|
2,901
|
Other Liabilities and Accrued Expenses
|
|
|
|
2,802
|
|
|
|
2,414
|
Current Portion of Long-Term Debt
|
|
|
|
4,932
|
|
|
|
5,498
|
Current Liability - Royalty Obligation
|
|
|
|
1,500
|
|
|
|
1,625
|
Current Liability - Excess Royalty Payment Due
|
899
|
|
|
|
615
|
Income Taxes Payable
|
|
|
|
|
889
|
|
|
|
684
|
Deferred Revenue
|
|
|
|
|
301
|
|
|
|
367
|
Total Current Liabilities
|
|
|
|
24,239
|
|
|
|
25,912
|
NON CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Long-Term Debt, net of current portion
|
16,455
|
|
|
|
17,648
|
Royalty Obligation, net of current portion
|
11,393
|
|
|
|
11,760
|
Deferred Tax Liabilities
|
|
|
|
|
682
|
|
|
|
698
|
Other Liabilities
|
|
|
|
|
2,244
|
|
|
|
2,648
|
TOTAL LIABILITIES
|
|
|
|
|
55,013
|
|
|
|
58,666
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
|
|
504
|
|
|
|
500
|
Additional Paid-In Capital
|
|
|
|
|
50,952
|
|
|
|
50,016
|
Retained Earnings
|
|
|
|
|
46,034
|
|
|
|
45,700
|
Treasury Stock
|
|
|
|
|
(32,525)
|
|
|
|
(32,397)
|
Accumulated Other Comprehensive Income
|
(335)
|
|
|
|
(172)
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
|
64,630
|
|
|
|
63,647
|
TOTAL LIABILITY AND SHAREHOLDERS' EQUITY
|
|
|
$
|
119,643
|
|
|
$
|
122,313
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180605005879/en/
Sharon Merrill Associates, Inc.
Scott Solomon, 617-542-5300
Senior
Vice President
ALOT@investorrelations.com
Source: AstroNova, Inc.