Fourth Quarter Fiscal 2018 Achievements
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Record bookings of $34.8 million, up 32% from prior year fourth quarter
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Record revenue of $32.7 million, up 27% from prior year fourth quarter
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Operating income of $2.1 million, up 85% from prior year fourth quarter
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GAAP diluted EPS of $0.09, down 10% year-over-year; Non-GAAP diluted
EPS of $0.25, up 150% from the prior fourth quarter excluding impact
of Tax Cuts and Jobs Act
Full Year Fiscal 2018 Achievements
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Record bookings of $120 million, up 22% from prior year
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Record revenue of $113 million, up 15% from prior year
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Record backlog of $21.4 million, up 22% from prior year
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GAAP diluted EPS of $0.47, down 16% year-over-year; Non-GAAP diluted
EPS of $0.63, up 13% from prior year excluding impact of Tax Cuts and
Jobs Act
WEST WARWICK, R.I.--(BUSINESS WIRE)--
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization
technologies, today reported financial results for the fiscal 2018
fourth quarter and year ended January 31, 2018.
“We concluded a solid year with a strong performance in the fourth
quarter, generating record revenue and bookings,” said AstroNova
President and CEO Greg Woods. “Product Identification revenue was up 16%
for the fourth quarter, as the QuickLabel organic business continues to
grow and the new products we introduced last year begin to ramp. We also
are making excellent progress with the TrojanLabel product line, as we
continue to add dealers and brand awareness. Our newest TrojanLabel
products, the T4 and T2C, began shipping at the end of the fourth
quarter, and we expect these products to contribute nicely to our
results in the coming quarters.
“Test & Measurement revenue was up 58% from the fiscal 2017 fourth
quarter, as we began to see revenue contribution from the Honeywell
agreement,” Woods said. “Our fourth-quarter results included costs
related to the integration of the acquired product line, and those costs
are expected to continue for the next couple of quarters as we migrate
the manufacturing of the narrow-format printers to West Warwick. The
integration process should be completed by the end of the first half of
this fiscal year. During the fourth quarter, we also introduced an
upgraded TMX data acquisition system featuring enhanced security with
Windows 10 and a high-speed oscilloscope function.
“The success of our efforts during the past two years to expand
international sales is evident, as international revenue was up 72% in
the fourth quarter from the same period in fiscal 2017 and up 52% in
fiscal 2018 compared with the prior year,” Woods said. “Our $43.6
million of international revenue for fiscal 2018 was another record for
the Company. We are now winning larger contracts from global
organizations due to our new worldwide presence that would not have been
possible a short time ago.”
Recent Highlights
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The Board of Directors declared a quarterly cash dividend of $0.07 per
share payable March 30, 2018 to shareholders of record as of March 22,
2018
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David S. Smith was named Vice President, Treasurer and Chief Financial
Officer
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Dick Warzala, Chairman and CEO of Allied Motion Technologies, was
appointed to the Board of Directors
Financial Summary
Revenue in the fourth quarter totaled $32.7 million, an increase of 27%
from $25.7 million in the fourth quarter of fiscal 2017, reflecting
higher sales in both of the Company's segments – Product Identification
and Test & Measurement. For the full year, revenue increased 15.2% to a
record $113.4 million from $98.4 million in fiscal 2017.
Gross profit for the fourth quarter was $12.6 million, or 38.7% of
revenue, compared with $10.1 million, or 39.3% of revenue, for the
fourth quarter of fiscal 2017. The increase in gross profit dollars
reflected higher revenue in the 2018 period, while the decrease in gross
margin percentage was due to expenses associated with the Company's
asset purchase and licensing agreement with Honeywell International's
Aerospace division in September 2017.
Fiscal 2018 gross profit was $44.0 million, or 38.8% of revenue,
compared with $39.5 million, or 40.1% of revenue, in fiscal 2017. Lower
gross margin percentage in fiscal 2018 reflected the Honeywell
transaction as well as expenses associated with the Company's February
2017 acquisition of Trojanlabel ApS.
Operating expenses for the fourth quarter were $10.5 million compared
with $8.9 million in the same period of fiscal 2017. The increase was
due primarily to higher selling and marketing and R&D expenses
associated with the introduction of new products in Product
Identification and Test & Measurement. Fiscal 2018 operating expenses
increased to $38.6 million from $33.2 million a year earlier.
Operating income for the fourth quarter was $2.1 million, or 6.5% of
revenue, compared with $1.2 million, or 4.5% of revenue, in the fourth
quarter of fiscal 2017, reflecting higher revenue in the 2018 period.
Operating income for fiscal 2018 was $5.4 million, or 4.8% of revenue,
compared with $6.3 million, or 6.4% of revenue, in fiscal 2017,
primarily reflecting the effect of integration expenses in the 2018
period.
GAAP net income for the fourth quarter was $628,000, or $0.09 per
diluted share, down from $766,000, or $0.10 per diluted share, in the
fourth quarter of fiscal 2017. GAAP net income for fiscal 2018 was $3.3
million, or $0.47 per diluted share, compared with $4.2 million, or
$0.56 per diluted share, in fiscal 2017. Results for both the
fourth-quarter and full-year periods of 2018 were negatively impacted by
$1.1 million, or $0.16 per share, in taxes due to the enactment of the
Tax Cuts and Jobs Act. Of this total, $1.0 million was related to
revaluation of deferred tax assets at the new lower corporate tax rate
and $104,000 was related to the Transition Tax on un-repatriated
earnings of foreign subsidiaries. On a non-GAAP basis, excluding this
impact, net income for the fourth quarter of fiscal 2018 was $1.7
million, or $0.25 per diluted share, while net income for full-year
fiscal 2018 was $4.4 million, or $0.63 per diluted share.
Fourth-quarter 2018 bookings increased 32% to $34.8 million from $26.4
million in the fourth quarter of fiscal 2017, with increases in both the
Product Identification and Test & Measurement segments.
Backlog at January 31, 2018 was $21.4 million, up 22% from $17.6 million
the end of the fiscal 2017 fourth quarter.
Business Outlook
“As we begin fiscal 2019, we are optimistic about the year ahead and the
long-term future of AstroNova,” continued Woods. “We are capitalizing on
many product and business development initiatives, and we continue to
see excellent growth opportunities from our TrojanLabel acquisition and
our asset purchase and licensing agreement with Honeywell
International's Aerospace division. In addition, as we seek to leverage
our top-line growth into enhanced profitability, we see many ongoing
operational excellence opportunities from the Honeywell and TrojanLabel
integrations as well as through continued process improvements and
automation that will enable us to further drive economies of scale.”
Fourth-Quarter Fiscal 2018 Conference Call
AstroNova will conduct an investor conference call at 9:00 a.m. ET
today. Investors can participate in the conference call by dialing (800)
289-0438 (U.S. and Canada) or (323) 994-2083 (International)
approximately 10 minutes prior to the start time and entering
confirmation code 2355093. A live webcast of the call also will be
available by accessing the Investors section of AstroNova’s website, www.astronovainc.com.
Please join the call at least five minutes prior to the start time.
Following the live broadcast, an audio replay of the call will be
available at www.astronovainc.com.
A telephone replay of the conference call will be available for seven
days by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820
(International). The passcode is 2355093.
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, 2017 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.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), this press release contains the
non-GAAP financial measures non-GAAP net income and non-GAAP net income
per share. The Company believes that these non-GAAP financial measures
help investors to gain a meaningful understanding of changes in the
Company's core operating results, and also can help investors who wish
to make comparisons between AstroNova and other companies on both a GAAP
and a non-GAAP basis. AstroNova’s management uses these non-GAAP
measures, in addition to GAAP financial measures, as the basis for
measuring its core operating performance and comparing such performance
to that of prior periods and to the performance of its competitors.
These measures are also used by the Company’s management to assist with
their financial and operating decision-making. Non-GAAP financial
measures are not a substitute for GAAP financial measures and may not be
comparable to similarly titled measures of other companies.
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ASTRONOVA, INC.
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Consolidated Statements of Income
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In Thousands Except for Per Share Data
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(Unaudited)
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Three Months Ended
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Twelve Months Ended
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January 31, 2018
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January 31, 2017
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January 31, 2018
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January 31, 2017
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Net Sales
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$32,699
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$25,657
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$113,401
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$98,448
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Cost of Goods Sold
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20,057
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15,586
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69,399
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58,959
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Gross Profit
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12,642
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10,071
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44,002
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39,489
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38.7%
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39.3%
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38.8%
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40.1%
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Operating Expenses:
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Selling & Marketing
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6,277
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4,770
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22,234
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18,955
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Research & Development
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2,112
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1,776
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7,453
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6,314
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General & Administrative
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2,123
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2,373
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8,903
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7,939
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10,512
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8,919
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38,590
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33,208
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Operating Income
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2,130
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1,152
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5,412
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6,281
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6.5%
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4.5%
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4.8%
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6.4%
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Other (Expense) Income, Net
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(210)
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396
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(255)
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324
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Income Before Taxes
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1,920
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1,548
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5,157
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6,605
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Income Tax Provision
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1,292
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782
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1,871
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2,377
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Net Income
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$628
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$766
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$3,286
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$4,228
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Net Income per Common Share - Basic
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$0.09
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$0.10
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$0.48
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$0.57
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Net Income per Common Share - Diluted
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$0.09
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$0.10
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$0.47
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$0.56
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Weighted Average Number of Common Shares - Basic
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6,748
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7,463
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6,911
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7,421
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Weighted Average Number of Common Shares - Diluted
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6,847
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7,586
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7,015
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7,572
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Dividends Declared Per Common Share
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$0.07
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$0.07
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$0.28
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$0.28
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Selected Consolidated Balance Sheet Data
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Amounts In Thousands
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(Unaudited)
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January 31, 2018
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January 31, 2017
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Cash & Marketable Securities
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$11,688
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$24,821
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Current Assets
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$63,780
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$61,423
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Total Assets
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$122,313
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$83,665
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Current Liabilities
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$25,907
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$11,985
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Long-Term Debt
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$17,684
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$--
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Royalty Obligation
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$11,760
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$--
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Shareholders’ Equity
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$63,652
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$70,537
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Net Income and Diluted Earnings per Share GAAP to Non GAAP
Reconciliation
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Amounts In Thousands
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(Unaudited)
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Three Months Ended
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Twelve Months Ended
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January 31, 2018
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January 31, 2017
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January 31, 2018
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January 31, 2017
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Net Income - GAAP
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$628
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$766
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$3,286
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$4,228
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Tax Act Impact:
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Revaluation of Deferred Tax Assets
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1,010
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-
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1,010
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-
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Transition Tax
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104
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-
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104
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-
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Adjusted Net Income - Non-GAAP
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$ 1,742
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$ 766
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$ 4,400
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$ 4,228
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Three Months Ended
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Twelve Months Ended
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January 31, 2018
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January 31, 2017
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January 31, 2018
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January 31, 2017
|
Net Income per Common Share - Diluted - GAAP
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$0.09
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$0.10
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$0.47
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$0.56
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Tax Act Impact:
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Revaluation of Deferred Tax Assets
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0.15
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-
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0.14
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-
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Transition Tax
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0.01
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-
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0.02
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-
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Adjusted Net Income per Common Share - Diluted - Non-GAAP
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$ 0.25
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$ 0.10
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$ 0.63
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$ 0.56
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View source version on businesswire.com:
http://www.businesswire.com/news/home/20180314005440/en/
Sharon Merrill Associates, Inc.
Scott Solomon, 617-542-5300
Senior
Vice President
ALOT@investorrelations.com
Source: AstroNova, Inc.