AstroNova Reports Fiscal First-Quarter 2022 Financial Results

06/10/2021

Product Identification bookings hit all time high

First-Quarter Fiscal 2022 Summary

  • Bookings of $32.8 million
  • Backlog at quarter end of $24.8 million
  • Revenue of $29.1 million
  • Operating income of $0.7 million
  • Net income of $0.6 million, or $0.08 per diluted share
  • Adjusted EBITDA of $2.5 million, or 8.6% of revenue

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

AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2022 first quarter ended May 1, 2021.

“Revenue was generally in line with our expectations in the first quarter compared with last year, as top-line growth in the Product Identification segment partly offset Aerospace industry-related weakness in the Test & Measurement segment due to the effects of the COVID-19 pandemic and continued weakness in 737 MAX-related shipments,” said Gregory A. Woods, President and Chief Executive Officer of AstroNova. “Bookings came in ahead of last year’s level, with Product Identification posting a new record and our Aerospace bookings increasing 45% sequentially to mark the first positive book-to-bill ratio since fiscal 2020. We continued to carefully manage expenses in the quarter, which allowed us to maintain profitability and improve overall margins despite lower revenue.

“Q1 marked another strong quarter for the T3-OPX, our wide-format durable direct-to-package printing system, which continues to exceed expectations,” Woods said. “Our Product Identification segment had solid results, particularly in Europe, reflecting our recent sales reorganization in the EMEA region.”

Q1 FY 2022 Operating Segment Results

Product Identification segment revenue was $23.1 million, compared with $22.4 million in the prior-year period. Segment operating income was $2.7 million, or 11.8% of revenue, compared with $3.1 million, or 14.1% of revenue, in the prior year, primarily due to higher operating costs.

Test & Measurement segment revenue was $6.0 million, compared with $8.5 million in the same period of fiscal 2021. The decrease reflected lower aerospace printer sales associated with COVID-19 and the 737 MAX impact. The Test & Measurement segment recorded an operating profit of $0.4 million, or 5.9% of revenue, compared with segment operating loss of $0.2 million, or negative 1.8% of revenue, in the comparable period of fiscal 2021, reflecting lower manufacturing costs and operating expense.

Hardware revenue was $7.6 million in the fiscal 2022 first quarter, compared with $8.9 million in the prior-year period, as lower Aerospace shipments in the Test & Measurement segment more than offset growth in Product Identification. Supplies revenue was $18.2 million versus $19.1 million in the same period of fiscal 2021. In fiscal 2021, demand for Aerospace supplies was strong in early Q1, while Product Identification supplies picked up later in the quarter as customers added to their stocks of the Company’s inks, labels and other materials because of concerns about the pandemic. Service/other revenue was $3.2 million, compared with $2.9 million a year earlier.

Q1 FY 2022 Results Summary

Revenue totaled $29.1 million in the first quarter of fiscal 2022, compared with $30.9 million in the year-earlier period, with a decline in Test & Measurement revenue partly offset by higher revenue in the Product Identification segment.

Gross profit was $10.9 million, or 37.4% of revenue in the first quarter of fiscal 2022, compared with $10.9 million, or 35.1% of revenue, in the same period of fiscal 2021.

Operating expenses totaled $10.2 million in the first quarters of fiscal 2022 and 2021, and operating income was $0.7 million in both periods.

Net income was $0.6 million, or $0.08 per diluted share, in the first quarter of fiscal 2022 compared with net income of $0.4 million, or $0.06 per diluted share, in the first quarter of fiscal 2021.

Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was $2.5 million for the first quarter of fiscal 2022, or 8.6% of revenue, compared with $2.6 million, or 8.3% of revenue in the first quarter of fiscal 2021. Adjusted EBITDA is a non-GAAP financial measure explained in greater detail below under “Use of Non-GAAP Financial Measure.” Please refer to the financial reconciliation table included in this news release for a reconciliation of net income to Adjusted EBITDA for the three months ended May 1, 2021 and May 2, 2020.

Bookings in the first quarter of fiscal 2022 were $32.8 million, compared with $31.2 million in the first quarter of fiscal 2021.

Backlog as of May 1, 2022 was $24.8 million versus $25.9 million at the end of the fiscal 2021 first quarter.

Earnings Conference Call

AstroNova will discuss its fiscal first-quarter 2022 financial results in 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 8107119.

You can hear a replay of the conference call from 12:00 p.m. ET Thursday, June 10, 2021 until 12:00 p.m. ET on Thursday, June 17, 2021 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 8107119. 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.

Use of Non-GAAP Financial Measure

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measure Adjusted EBITDA, which AstroNova defines as earnings before interest, taxes, depreciation, amortization and share-based compensation. AstroNova believes that the inclusion of this non-GAAP financial measure helps investors 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 Adjusted EBITDA, 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. Adjusted EBITDA also is used by the Company’s management to assist with their financial and operating decision-making.

About AstroNova

AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies since 1969, is focused on designing, manufacturing, distributing and servicing a broad range of products that acquire, store, analyze and present data in multiple formats. The Company's Product Identification segment offers a complete line-up of label and direct-to-package printing hardware and supplies, allowing customers to mark, track and enhance their products' appearance. Supported by AstroNova's customer application experts and technology leadership in printing, material science and high-speed data processing, customers benefit from an optimized, "total solution" approach. The Test and Measurement segment includes the AstroNova Aerospace business unit. This segment designs and manufactures flight deck printers, networking hardware and related accessories serving the world's aerospace and defense industries with proven advanced airborne technology solutions for the cockpit, the cabin and so much more. 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 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, 2021 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

 

 

May 1, 2021

 

May 2, 2020

Net Revenue

 

$

29,078

 

 

$

30,919

 

Cost of Revenue

 

 

18,190

 

 

 

20,064

 

Gross Profit

 

 

10,888

 

 

 

10,855

 

Total Gross Profit Margin

 

 

37.4

%

 

 

35.1

%

Operating Expenses:

 

 

 

 

Selling & Marketing

 

 

6,092

 

 

 

5,925

 

Research & Development

 

 

1,717

 

 

 

1,940

 

General & Administrative

 

 

2,344

 

 

 

2,327

 

Total Operating Expenses

 

 

10,153

 

 

 

10,192

 

Operating Income

 

 

735

 

 

 

663

 

Total Operating Margin

 

 

2.5

%

 

 

2.1

%

Other Expense, net

 

 

369

 

 

 

349

 

Income Before Taxes

 

 

366

 

 

 

314

 

Income Tax Benefit

 

 

(227

)

 

 

(118

)

Net Income

 

$

593

 

 

$

432

 

Net Income per Common Share - Basic

 

$

0.08

 

 

$

0.06

 

Net Income per Common Share - Diluted

 

$

0.08

 

 

$

0.06

 

 

   

Weighted Average Number of Common Shares - Basic

 

 

7,145

 

 

 

7,073

 

Weighted Average Number of Common Shares - Diluted

 

 

7,265

 

 

 

7,105

 

ASTRONOVA, INC.

Balance Sheet

In Thousands

(Unaudited)

 

 

 

 

 

 

 

May 1, 2021

 

January 31, 2021

 

 

 

 

 

ASSETS

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash and Cash Equivalents

 

$

11,414

 

 

$

11,439

 

Accounts Receivable, net

 

 

15,249

 

 

 

17,415

 

Inventories, net

 

 

29,474

 

 

 

30,060

 

Prepaid Expenses and Other Current Assets

 

 

2,072

 

 

 

1,807

 

Total Current Assets

 

 

58,209

 

 

 

60,721

 

PROPERTY, PLANT AND EQUIPMENT

 

 

51,384

 

 

 

50,839

 

Less Accumulated Depreciation

 

 

(39,260

)

 

 

(38,828

)

Property, Plant and Equipment, net

 

 

12,124

 

 

 

12,011

 

OTHER ASSETS

 

 

 

 

Intangible Assets, net

 

 

20,496

 

 

 

21,502

 

Goodwill

 

 

12,730

 

 

 

12,806

 

Deferred Tax Assets

 

 

5,944

 

 

 

5,941

 

Right of Use Asset

 

 

1,302

 

 

 

1,389

 

Other Assets

 

 

1,251

 

 

 

1,103

 

TOTAL ASSETS

 

$

112,056

 

 

$

115,473

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Accounts Payable

 

$

5,639

 

 

$

5,734

 

Accrued Compensation

 

 

2,951

 

 

 

2,852

 

Other Liabilities and Accrued Expenses

 

 

3,448

 

 

 

3,939

 

Current Portion of Long-Term Debt

 

 

813

 

 

 

5,326

 

Current Portion of Royalty Obligation

 

 

2,000

 

 

 

2,000

 

Current Liability – Excess Royalty Payment Due

 

 

-

 

 

 

177

 

Deferred Revenue

 

 

330

 

 

 

285

 

Income Taxes Payable

 

 

260

 

 

 

655

 

Total Current Liabilities

 

 

15,441

 

 

 

20,968

 

NON-CURRENT LIABILITIES

 

 

 

 

Long-Term Debt, net of current portion

 

 

8,884

 

 

 

7,109

 

Royalty Obligation, net of current portion

 

 

5,711

 

 

 

6,161

 

Long-Term Debt - PPP Loan

 

 

4,422

 

 

 

4,422

 

Lease Liability, net of current portion

 

 

983

 

 

 

1,065

 

Other Long-Term Liabilities

 

 

680

 

 

 

681

 

Deferred Tax Liabilities

 

 

402

 

 

 

384

 

TOTAL LIABILITIES

 

 

36,523

 

 

 

40,790

 

SHAREHOLDERS’ EQUITY

 

 

 

 

Common Stock

 

 

524

 

 

 

521

 

Additional Paid-in Capital

 

 

58,576

 

 

 

58,049

 

Retained Earnings

 

 

50,678

 

 

 

50,085

 

Treasury Stock

 

 

(33,796

)

 

 

(33,588

)

Accumulated Other Comprehensive Loss, net of tax

 

 

(449

)

 

 

(384

)

TOTAL SHAREHOLDERS’ EQUITY

 

 

75,533

 

 

 

74,683

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

112,056

 

 

$

115,473

 

ASTRONOVA, INC.

Revenue and Segment Operating Profit

In Thousands

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

Segment Operating Profit (Loss)

 

 

Three Months Ended

 

Three Months Ended

 

 

May 1, 2021

 

May 2, 2020

 

May 1, 2021

 

May 2, 2020

Product Identification

 

$

23,098

 

$

22,380

 

$

2,729

 

 

$

3,146

 

Test & Measurement

 

 

5,980

 

 

8,539

 

 

350

 

 

 

(156

)

Total

 

$

29,078

 

$

30,919

 

 

3,079

 

 

 

2,990

 

Corporate Expenses

 

 

 

 

 

 

2,344

 

 

 

2,327

 

Operating Income

 

 

 

 

 

 

735

 

 

 

663

 

Other Expense, net

 

 

 

 

 

 

369

 

 

 

349

 

Income Before Income Taxes

 

 

 

 

 

 

366

 

 

 

314

 

Income Tax Benefit

 

 

 

 

 

 

(227

)

 

 

(118

)

Net Income

 

 

 

 

 

$

593

 

 

$

432

 

ASTRONOVA, INC.

Reconciliation of Net Income to Adjusted EBITDA

Amounts in Thousands

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

May 1, 2021

 

May 2, 2020

Net Income − GAAP

 

$

593

 

 

$

432

 

Interest Expense

 

 

218

 

 

 

196

 

Income Tax Benefit

 

 

(227

)

 

 

(118

)

Share-Based Compensation

 

 

478

 

 

 

495

 

Depreciation/Amortization

 

 

1,425

 

 

 

1,568

 

Adjusted EBITDA

 

$

2,487

 

 

$

2,573

 

 

Scott Solomon
Senior Vice President
Sharon Merrill Associates
(857) 383-2409
ALOT@investorrelations.com

Source: AstroNova, Inc.

IR Contact

AstroNova, Inc.
Investor Relations Department
600 East Greenwich Avenue
West Warwick, RI 02893
Scott Solomon
Senior Vice President Sharon Merrill
Phone: (617) 542-5300
Email: ALOT@investorrelations.com

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