8-K
AstroNova, Inc. (ALOT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 12, 2024
ASTRONOVA, INC.
(Exact name of registrant as specified in its charter)
| Rhode Island | 0-13200 | 05-0318215 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
600 East Greenwich Avenue
West Warwick, RI 02893
(Address of principal executive offices) (Zip Code)
(401) 828-4000
Registrant’s telephone number, including area code
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading<br>Symbol(s) | Name of Each Exchange<br>on which Registered |
|---|---|---|
| Common Stock, $0.05 Par Value | ALOT | NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On December 12, 2024, we issued a press release reporting the financial results for our fiscal third quarter ended November 2, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in Item 2.02 of this report and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statement and Exhibits. |
|---|---|
| (d) | Exhibits |
| --- | --- |
| Exhibit<br>No. | Exhibit |
| --- | --- |
| 99.1 | Press Release dated December 12, 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ASTRONOVA, INC. | ||
|---|---|---|
| Dated: December 12, 2024 | By: | /s/ Thomas D. DeByle |
| Thomas D. DeByle | ||
| Vice President, Chief Financial Officer and Treasurer |
EX-99.1
Exhibit 99.1
AstroNova Reports Third Quarter Fiscal Year 2025 Financial Results
Company to host earnings conference call at 9:00 a.m. ET today
WEST WARWICK, R.I., December 12, 2024 – AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2025 third quarter ended November 2, 2024.
Third Quarter FY 2025 Summary
| • | Net revenue of $40.4 million |
|---|---|
| • | GAAP gross margin of 33.9%; non-GAAP gross margin of 34.0%<br> |
| --- | --- |
| • | GAAP operating margin of 3.1%; non-GAAP operating margin of 4.0%<br> |
| --- | --- |
| • | GAAP net income of $0.03 per diluted share; non-GAAP net income of $0.06<br>per diluted share |
| --- | --- |
| • | GAAP net income of $0.2 million; Adjusted EBITDA of $3.2 million |
| --- | --- |
CEO Commentary
“Overall, our third-quarter performance was disappointing, reflecting a significant decrease in consolidated margins and increased operating expenses year-over-year,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “Our results were primarily impacted by the ongoing integration of MTEX NS (MTEX) in our Product Identification segment, as well as a key customer’s delayed launch from the third quarter to the fourth quarter of a large order we received for hundreds of inkjet printers that just began shipping this month. The MTEX integration is proving far more time-consuming and resource-intensive than we anticipated when we completed the acquisition in May. MTEX had an operating loss of $1.1 million in the third quarter with revenue of $1.7 million. While its revenue is substantially higher on a sequential basis, MTEX’s initial sales volume, revenue and margin contributions are well short of our targets, and we are working diligently to get the acquisition on track to deliver improved results as rapidly as possible.
“As part of this process, we recently completed a total realignment of MTEX’s organizational reporting structure. All of MTEX’s key functions, including Sales and Marketing, Manufacturing, Technology, Finance, and Human Resources, now report directly to the AstroNova leadership team,” Woods said. “Among its goals, this effort aims to accelerate the implementation of consistent best practices within the MTEX sales process, ensuring alignment with the established standards and practices of our Product Identification segment and our organization as a whole. In conjunction with the integration, we have also launched an AstroNova-wide cost reduction and product line rationalization initiative. These measures have already delivered initial successes, including the closure of some large new orders. However, the full integration process is anticipated to continue through mid-calendar year 2025, with additional work required to complete the transition.
“While the integration has been challenging, we remain confident in MTEX’s game-changing inkjet printing technology, as well as their manufacturing capabilities and unique, real-time, printer monitoring and management software,” Woods said. “In the quarters ahead, in conjunction with our product rationalization program, we plan to
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incorporate the MTEX technology and software into most of our products and even retrofit it into several models of our large global installed base, which we expect will provide our customers with improved performance and lower total cost of ownership.
“Despite the challenges in the PI segment in the third quarter, our consolidated net revenue increased nearly 8% year-over-year, driven by the continued momentum of the Aerospace product line within our Test & Measurement (T&M) segment,” Woods said. “The performance of the T&M segment would have been even stronger had it not been for the nearly two-month Boeing strike, which delayed shipments. With the strike now resolved, shipments to Boeing are ramping back up, and we expect sales volume in that product line to improve as we close out fiscal 2025. In our PI segment, revenue from the previously delayed inkjet printer order is expected to contribute several million dollars to the top line over the next several quarters.”
Business Outlook
Given the extended integration timeline for MTEX, AstroNova is no longer providing financial guidance for fiscal 2025 and 2026. As part of the integration process, the Company is conducting a comprehensive cost-reduction and product-line rationalization initiative. This effort is aimed at reducing expenses and further enhancing AstroNova’s product portfolio. AstroNova plans to discuss the results of this initiative, and provide long-term financial targets, on its full-year fiscal 2025 earnings call in March.
“Although it will take time to realize the full benefits of the MTEX acquisition, we are encouraged about the strategic opportunities created by the acquisition, which we expect to improve our competitiveness and expand our offerings to meet a broader range of customer needs,” Woods said. “We are confident that the steps we are taking now will yield meaningful competitive advantages, ultimately driving shareholder value.”
Q3 FY 2025 Financial Summary
| GAAP | Non-GAAP | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except per share data) | Q3 FY25 | Q3 FY24 | YoY | Q3 FY25 | Q3 FY24 | YoY | ||||||
| Net Revenue | $ | 40,422 | $ | 37,549 | 7.7% | — | — | — | ||||
| Gross Profit | $ | 13,714 | $ | 14,779 | (7.2%) | $ | 13,748 | $ | 14,779 | (7.0%) | ||
| Gross Margin | 33.9% | 39.4% | (550 bps) | 34.0% | 39.4% | (540 bps) | ||||||
| Operating Margin | 3.1% | 12.3% | (920 bps) | 4.0% | 12.3% | (830 bps) | ||||||
| Net Income | $ | 240 | $ | 2,752 | (91.3%) | $ | 513 | $ | 2,752 | (81.4%) | ||
| Net Income per Common Share - Diluted | $ | 0.03 | $ | 0.37 | (91.9%) | $ | 0.06 | $ | 0.37 | (83.8%) |
See reconciliation tables for GAAP to non-GAAP reconciliations
Adjusted EBITDA was $3.2 million for the third quarter of fiscal 2025, compared with $5.7 million in the comparable period of fiscal 2024. Adjusted EBITDA for the fiscal 2025 period excludes the impact of $0.4 million in MTEX-related acquisition expenses and inventory-step-up costs.
Bookings for the third quarter of fiscal 2025 were $37.6 million, compared with $35.5 million in the third quarter of fiscal 2024.
Backlog as of November 2, 2024, was $27.1 million, compared with $31.2 million at the end of the third quarter of fiscal 2024.
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Q3 FY 2025 Operating Segment Results
Product Identification
Product Identification (PI) segment revenue was $26.3 million in the third quarter of fiscal 2025, compared with $26.5 million in the third quarter of fiscal 2024. The decrease was primarily related to the delayed release of a new inkjet printer, to accommodate a key customer’s request to add additional functionality, as well as lower PI sales volume in Europe, partly offset by revenue from the acquisition of MTEX NS. PI segment operating income was $1.9 million, or 7.1% of revenue, in the third quarter of fiscal 2025, compared with segment operating income of $4.8 million, or 18.1% of revenue, in the third quarter of fiscal 2024. The decrease was driven by higher costs during the 2025 period, partially linked to the MTEX NS acquisition, an unfavorable product mix, reduced sales volume in Europe, and the delayed launch of a new product originally scheduled for the third quarter of fiscal 2025 but deferred to the fourth quarter of fiscal 2025 and early fiscal 2026.
Test & Measurement
Test & Measurement (T&M) segment revenue was $14.1 million in the third quarter of fiscal 2025, compared with $11.0 million in the third quarter of fiscal 2024. The increase was driven by higher sales volume in the Company’s Aerospace product line, partly offset by lower sales volume in the Test & Measurement product line. T&M segment operating income was $3.3 million, or 23.0% of revenue, in the third quarter of fiscal 2025, compared with segment operating income of $2.6 million, or 23.2% of revenue, in the same period of fiscal 2024.
Earnings Conference Call Information
AstroNova will discuss its third quarter fiscal 2025 financial results in an investor conference call at 9:00 a.m. ET today. To access the conference call, please dial (833) 470-1428 (U.S. and Canada) or (404) 975-4839 (International) approximately 10 minutes prior to the start time and enter access code 891769. A real-time and 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 Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measures non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP segment operating profit, and Adjusted EBITDA. AstroNova believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of changes in the Company’s core operating results and 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 financial 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. Please refer to the financial reconciliation table included in this news release for a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures for the three and nine months ended November 2, 2024, and October 28, 2023.
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About AstroNova
AstroNova (Nasdaq: 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 provides a wide array of digital, end-to-end product marking and identification solutions, including hardware, software, and supplies for OEMs, commercial printers, and brand owners. The Test and Measurement segment provides products designed for airborne printing solutions, avionics, and data acquisition. Our aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. Our data acquisition systems are used in research and development, flight testing, missile and rocket telemetry production monitoring, power, and maintenance applications.
AstroNova is a member of the Russell Microcap^®^ Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting https://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, 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, (i) the risk that we may not be able to realize the expected benefits from our acquisition of MTEX; (ii) the risk that our cost-reduction and product line rationalization initiative may not provide the expected benefits; (iii) that the volume of orders in our Aerospace product line may not improve on the schedule we anticipate or at all; (iv) the risk that we may be unable to recognize revenue from previously delayed orders in future periods in the amounts or the timeline that we expect; and (v) those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024 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.
Contact:
Scott Solomon
Senior Vice President
Sharon Merrill Advisors
(857) 383-2409
ALOT@investorrelations.com
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ASTRONOVA, INC.
Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| November 2,2024 | October 28,2023 | |||||
| Net Revenue | $ | 40,422 | **** | $ | 37,549 | |
| Cost of Revenue | **** | 26,708 | **** | 22,770 | ||
| Gross Profit | **** | 13,714 | **** | 14,779 | ||
| Total Gross Profit Margin | 33.9 | % | 39.4 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 6,752 | **** | 5,744 | ||
| Research & Development | **** | 1,843 | **** | 1,683 | ||
| General & Administrative | **** | 3,855 | **** | 2,734 | ||
| Total Operating Expenses | **** | 12,450 | **** | 10,161 | ||
| Operating Income | **** | 1,264 | **** | 4,618 | ||
| Total Operating Margin | 3.1 | % | 12.3 | % | ||
| Interest Expense | **** | 944 | **** | 630 | ||
| Other (Income)/Expense, net | **** | 46 | **** | 287 | ||
| Income Before Taxes | **** | 274 | **** | 3,701 | ||
| Income Tax Provision | **** | 34 | **** | 949 | ||
| Net Income | $ | 240 | **** | $ | 2,752 | |
| Net Income per Common Share - Basic | $ | 0.03 | **** | $ | 0.37 | |
| Net Income per Common Share - Diluted | $ | 0.03 | **** | $ | 0.37 | |
| Weighted Average Number of Common Shares - Basic | **** | 7,524 | **** | 7,428 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,580 | **** | 7,485 | ||
| Nine Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| November 2,2024 | October 28,2023 | |||||
| Net Revenue | $ | 113,922 | $ | 108,493 | ||
| Cost of Revenue | **** | 73,909 | **** | 71,618 | ||
| Gross Profit | **** | 40,013 | **** | 36,875 | ||
| Total Gross Profit Margin | 35.1 | % | 34.0 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 19,140 | **** | 18,451 | ||
| Research & Development | **** | 4,859 | **** | 5,028 | ||
| General & Administrative | **** | 12,343 | **** | 8,514 | ||
| Total Operating Expenses | **** | 36,342 | **** | 31,993 | ||
| Operating Income | **** | 3,671 | **** | 4,882 | ||
| Total Operating Margin | 3.2 | % | 4.5 | % | ||
| Interest Expense | **** | 2,363 | **** | 1,919 | ||
| Other (Income)/Expense, net | **** | 337 | **** | 242 | ||
| Income Before Taxes | **** | 971 | **** | 2,721 | ||
| Income Tax Provision (Benefit) | **** | (139 | ) | 738 | ||
| Net Income | $ | 1,110 | **** | $ | 1,983 | |
| Net Income per Common Share - Basic | $ | 0.15 | **** | $ | 0.27 | |
| Net Income per Common Share - Diluted | $ | 0.15 | **** | $ | 0.27 | |
| Weighted Average Number of Common Shares - Basic | **** | 7,501 | **** | 7,407 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,605 | **** | 7,477 |
ASTRONOVA, INC.
Consolidated Balance Sheets
In Thousands
(Unaudited)
| November 2,2024 | January 31,<br>2024 | |||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and Cash Equivalents | $ | 4,432 | **** | $ | 4,527 | |
| Accounts Receivable, net | **** | 25,156 | **** | 23,056 | ||
| Inventories, net | **** | 48,560 | **** | 46,371 | ||
| Prepaid Expenses and Other Current Assets | **** | 5,239 | **** | 2,720 | ||
| Total Current Assets | **** | 83,387 | **** | 76,674 | ||
| PROPERTY, PLANT AND EQUIPMENT | **** | 69,300 | **** | 57,046 | ||
| Less Accumulated Depreciation | **** | (50,934 | ) | (42,861 | ) | |
| Property, Plant and Equipment, net | **** | 18,366 | **** | 14,185 | ||
| OTHER ASSETS | ||||||
| Intangible Assets, net | **** | 24,514 | **** | 18,836 | ||
| Goodwill | **** | 25,337 | **** | 14,633 | ||
| Deferred Tax Assets | **** | 11,187 | **** | 6,882 | ||
| Right of Use Asset | **** | 1,946 | **** | 603 | ||
| Other Assets | **** | 1,725 | **** | 1,438 | ||
| TOTAL ASSETS | $ | 166,462 | **** | $ | 133,251 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts Payable | $ | 7,933 | **** | $ | 8,068 | |
| Accrued Compensation | **** | 3,304 | **** | 2,923 | ||
| Other Liabilities and Accrued Expenses | **** | 3,676 | **** | 2,706 | ||
| Revolving Line of Credit | **** | 20,215 | **** | 8,900 | ||
| Current Portion of Long-Term Debt | **** | 6,328 | **** | 2,842 | ||
| Short-Term Debt | **** | 1,334 | **** | — | ||
| Current Portion of Royalty Obligation | **** | 1,450 | **** | 1,700 | ||
| Current Liability – Excess Royalty Payment Due | **** | 864 | **** | 935 | ||
| Income Taxes Payable | — | 349 | ||||
| Deferred Revenue | **** | 378 | **** | 1,338 | ||
| Total Current Liabilities | **** | 45,482 | **** | 29,761 | ||
| NON-CURRENT LIABILITIES | ||||||
| Long-Term Debt, net of current portion | **** | 21,072 | **** | 10,050 | ||
| Royalty Obligation, net of current portion | **** | 1,511 | **** | 2,093 | ||
| Lease Liability, net of current portion | **** | 1,681 | **** | 415 | ||
| Grant Deferred Revenue | **** | 1,412 | **** | — | ||
| Income Tax Payables | **** | 551 | **** | 551 | ||
| Deferred Tax Liabilities | **** | 2,580 | **** | 99 | ||
| TOTAL LIABILITIES | **** | 74,289 | **** | 42,969 | ||
| SHAREHOLDERS’ EQUITY | ||||||
| Common Stock | **** | 546 | **** | 541 | ||
| Additional Paid-in Capital | **** | 63,949 | **** | 62,684 | ||
| Retained Earnings | **** | 64,979 | **** | 63,869 | ||
| Treasury Stock | **** | (35,025 | ) | (34,593 | ) | |
| Accumulated Other Comprehensive Loss, net of tax | **** | (2,276 | ) | (2,219 | ) | |
| TOTAL SHAREHOLDERS’ EQUITY | **** | 92,173 | **** | 90,282 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 166,462 | **** | $ | 133,251 |
ASTRONOVA, INC.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
| Nine Months Ended | ||||||
|---|---|---|---|---|---|---|
| November 2, 2024 | October 28, 2023 | |||||
| Cash Flows from Operating Activities: | ||||||
| Net Income | **** | 1,110 | **** | 1,983 | ||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||
| Depreciation and Amortization | **** | 3,514 | **** | 3,158 | ||
| Amortization of Debt Issuance Costs | **** | 22 | **** | 17 | ||
| Share-Based Compensation | **** | 1,159 | **** | 1,065 | ||
| Restructuring - non-cash | — | 2,040 | ||||
| Changes in Assets and Liabilities, net of impact of acquisition: | ||||||
| Accounts Receivable | **** | 1,619 | **** | (563 | ) | |
| Inventories | **** | 1,380 | **** | 2,111 | ||
| Income Taxes | **** | (1,534 | ) | (531 | ) | |
| Accounts Payable and Accrued Expenses | **** | (2,371 | ) | (2,036 | ) | |
| Deferred Revenue | **** | (1,080 | ) | (1,121 | ) | |
| Other | **** | (1,495 | ) | (221 | ) | |
| Net Cash Provided by Operating Activities | **** | 2,324 | **** | 5,902 | ||
| Cash Flows from Investing Activities: | ||||||
| Purchases of Property, Plant and Equipment | **** | (1,086 | ) | (1,279 | ) | |
| Cash Paid for MTEX Acquisition, net of cash acquired | **** | (19,109 | ) | — | ||
| Net Cash Provided (Used) for Investing Activities | **** | (20,195 | ) | (1,279 | ) | |
| Cash Flows from Financing Activities: | ||||||
| Net Cash Proceeds from Employee Stock Option Plans | **** | 13 | **** | 71 | ||
| Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan | **** | 98 | **** | 79 | ||
| Net Cash Used for Payment of Taxes Related to Vested Restricted Stock | **** | (432 | ) | (353 | ) | |
| Borrowings under Revolving Credit Facility, net | **** | 10,774 | **** | — | ||
| Repayment under Revolving Credit Facility | **** | — | **** | (1,000 | ) | |
| Proceeds from Long-Term Debt Borrowings | **** | 15,078 | **** | — | ||
| Payment of Minimum Guarantee Royalty Obligation | **** | (1,247 | ) | (1,350 | ) | |
| Principal Payments of Long-Term Debt | **** | (6,706 | ) | (1,425 | ) | |
| Payments of Debt Issuance Costs | **** | (37 | ) | — | ||
| Net Cash Provided (Used) for Financing Activities | **** | 17,541 | **** | (3,978 | ) | |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | **** | 235 | **** | 236 | ||
| Net Increase in Cash and Cash Equivalents | **** | (95 | ) | 881 | ||
| Cash and Cash Equivalents, Beginning of Period | **** | 4,527 | **** | 3,946 | ||
| Cash and Cash Equivalents, End of Period | **** | 4,432 | **** | 4,827 | ||
| Supplemental Disclosures of Cash Flow Information: | ||||||
| Cash Paid During the Period for: | ||||||
| Cash Paid During the Period for Interest | **** | 1,891 | **** | 1,695 | ||
| Cash Paid During the Period for Income Taxes, net of refunds | **** | 1,503 | **** | 1,285 | ||
| Non-Cash Transactions: | ||||||
| Capital Lease Obtained in Exchange for Capital Lease Liabilities | **** | 1,581 | **** | — |
ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)
| Revenue | Segment Operating Profit | |||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Three Months Ended | |||||||
| November 2,2024 | October 28,<br>2023 | November 2,2024 | October 28,<br>2023 | |||||
| Product Identification | $ | 26,317 | $ | 26,543 | $ | 1,868 | $ | 4,794 |
| Test & Measurement | **** | 14,105 | 11,006 | **** | 3,251 | 2,558 | ||
| Total | $ | 40,422 | $ | 37,549 | **** | 5,119 | 7,352 | |
| General & Administrative Expenses | **** | 3,855 | 2,734 | |||||
| Operating Income | **** | 1,264 | 4,618 | |||||
| Interest Expense | **** | 944 | 630 | |||||
| Other (Income)/Expense, net | **** | 46 | 287 | |||||
| Income Before Income Taxes | **** | 274 | 3,701 | |||||
| Income Tax Provision | **** | 34 | 949 | |||||
| Net Income | $ | 240 | $ | 2,752 | ||||
| Revenue | Segment Operating Profit | |||||||
| Nine Months Ended | Nine Months Ended | |||||||
| November 2,2024 | October 28,<br>2023 | November 2,2024 | October 28,<br>2023 | |||||
| Product Identification | $ | 76,667 | $ | 77,416 | $ | 7,208 | $ | 6,848 |
| Test & Measurement | **** | 37,255 | 31,077 | **** | 8,806 | 6,548 | ||
| Total | $ | 113,922 | $ | 108,493 | **** | 16,014 | 13,396 | |
| General & Administrative Expenses | **** | 12,343 | 8,514 | |||||
| Operating Income | **** | 3,671 | 4,882 | |||||
| Interest Expense | **** | 2,363 | 1,919 | |||||
| Other (Income)/Expense, net | **** | 337 | 242 | |||||
| Income Before Income Taxes | **** | 971 | 2,721 | |||||
| Income Tax Provision (Benefit) | **** | (139) | 738 | |||||
| Net Income | $ | 1,110 | $ | 1,983 |
Note: Segment Operating Profit excludes General & Administrative Expenses
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items
In Thousands Except for Per Share Data
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| November 2,2024 | October 28,<br>2023 | |||||
| Gross Profit | $ | 13,714 | $ | 14,779 | ||
| Inventory Step-Up | 34 | — | ||||
| Non-GAAP Gross Profit | $ | 13,748 | $ | 14,779 | ||
| Operating Expenses | $ | 12,450 | $ | 10,161 | ||
| MTEX-related Acquisition Expenses | (325 | ) | — | |||
| Non-GAAP Operating Expenses | $ | 12,125 | $ | 10,161 | ||
| Operating Income | $ | 1,264 | $ | 4,618 | ||
| MTEX-related Acquisition Expenses | 325 | — | ||||
| Inventory Step-Up | 34 | — | ||||
| Non-GAAP Operating Income | $ | 1,623 | $ | 4,618 | ||
| Net Income | $ | 240 | $ | 2,752 | ||
| MTEX-related Acquisition Expenses, net | 247 | — | ||||
| Inventory Step-Up, net | 26 | — | ||||
| Non-GAAP Net Income | $ | 513 | $ | 2,752 | ||
| Diluted Earnings Per Share | $ | 0.03 | $ | 0.37 | ||
| MTEX-related Acquisition Expenses | 0.03 | — | ||||
| Inventory Step-Up | — | — | ||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.06 | $ | 0.37 | ||
| Nine Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| November 2,2024 | October 28,<br>2023 | |||||
| Gross Profit | $ | 40,013 | $ | 36,875 | ||
| Inventory Step-Up | 154 | — | ||||
| Restructuring Charges | — | 2,096 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Gross Profit | $ | 40,167 | $ | 39,823 | ||
| Operating Expense | $ | 36,342 | $ | 31,993 | ||
| MTEX-related Acquisition Expenses | (950 | ) | — | |||
| CFO Transition Costs | (432 | ) | — | |||
| Restructuring Charges | — | (555 | ) | |||
| Non-GAAP Operating Expense | $ | 34,960 | $ | 31,438 | ||
| Operating Income | $ | 3,671 | $ | 4,882 | ||
| MTEX-related Acquisition Expenses | 950 | — | ||||
| CFO Transition Costs | 432 | — | ||||
| Inventory Step-Up | 154 | — | ||||
| Restructuring Charges | — | 2,651 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Operating Income | $ | 5,207 | $ | 8,385 | ||
| Net Income | $ | 1,110 | $ | 1,983 | ||
| MTEX-related Acquisition Expenses, net | 716 | — | ||||
| CFO Transition Costs, net | 328 | — | ||||
| Inventory Step-Up, net | 111 | — | ||||
| Restructuring Charges, net | — | 2,048 | ||||
| Product Retrofit Costs, net | — | 658 | ||||
| Non-GAAP Net Income | $ | 2,265 | $ | 4,689 | ||
| Diluted Earnings Per Share | $ | 0.15 | $ | 0.27 | ||
| MTEX-related Acquisition Expenses | 0.09 | — | ||||
| CFO Transition Costs | 0.05 | — | ||||
| Inventory Step-Up | 0.01 | — | ||||
| Restructuring Charges | — | 0.28 | ||||
| Product Retrofit Costs | — | 0.09 | ||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.30 | $ | 0.63 |
ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA
Amounts In Thousands
(Unaudited)
| Three Months Ended | |||||
|---|---|---|---|---|---|
| November 2, 2024 | October 28, 2023 | ||||
| Net Income | $ | 240 | **** | $ | 2,752 |
| Interest Expense | **** | 944 | **** | 630 | |
| Income Tax Expense | **** | 34 | **** | 949 | |
| Depreciation & Amortization | **** | 1,298 | **** | 1,014 | |
| EBITDA | $ | 2,516 | **** | $ | 5,345 |
| Share-Based Compensation | **** | 353 | **** | 311 | |
| MTEX-related Acquisition Expenses | **** | 325 | **** | — | |
| Inventory Step-Up | **** | 34 | **** | — | |
| Adjusted EBITDA | $ | 3,228 | **** | $ | 5,656 |
| Nine Months Ended | |||||
| November 2, 2024 | October 28, 2023 | ||||
| Net Income | $ | 1,110 | **** | $ | 1,983 |
| Interest Expense | **** | 2,363 | **** | 1,919 | |
| Income Tax Expense (Benefit) | **** | (139 | ) | 738 | |
| Depreciation & Amortization | **** | 3,514 | **** | 3,158 | |
| EBITDA | $ | 6,848 | **** | $ | 7,798 |
| Share-Based Compensation | **** | 1,159 | **** | 1,065 | |
| MTEX-related Acquisition Expenses | **** | 950 | **** | — | |
| CFO Transition Costs | **** | 432 | **** | — | |
| Inventory Step-Up | **** | 154 | **** | — | |
| Restructuring Charges | **** | — | **** | 2,651 | |
| Product Retrofit Costs | **** | — | **** | 852 | |
| Adjusted EBITDA | $ | 9,543 | **** | $ | 12,366 |
ASTRONOVA, INC.
Reconciliation of Segment Operating Income to Non-GAAP Operating Income
Amounts In Thousands
(Unaudited)
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ProductIdentification | November 2, 2024<br>Test &Measurement | Total | Product<br>Identification | October 28, 2023<br>Test &<br>Measurement | Total | |||||||
| Segment Operating Profit | $ | 1,868 | $ | 3,251 | $ | 5,119 | $ | 4,794 | $ | 2,558 | $ | 7,352 |
| Inventory Step-Up | **** | 34 | **** | — | **** | 34 | — | — | — | |||
| Non-GAAP - Segment Operating Profit | $ | 1,902 | $ | 3,251 | $ | 5,153 | $ | 4,794 | $ | 2,558 | $ | 7,352 |
| Nine Months Ended | ||||||||||||
| ProductIdentification | November 2, 2024<br>Test &Measurement | Total | Product<br>Identification | October 28, 2023<br>Test &<br>Measurement | Total | |||||||
| Segment Operating Profit | $ | 7,208 | $ | 8,806 | $ | 16,014 | $ | 6,848 | $ | 6,548 | $ | 13,396 |
| Inventory Step-Up | **** | 154 | **** | — | **** | 154 | — | — | — | |||
| Restructuring Charges | **** | — | **** | — | **** | — | 2,568 | — | 2,568 | |||
| Product Retrofit Costs | **** | — | **** | — | **** | — | 852 | — | 852 | |||
| Non-GAAP - Segment Operating Profit | $ | 7,362 | $ | 8,806 | $ | 16,168 | $ | 10,268 | $ | 6,548 | $ | 16,816 |
Note: Segment Operating Profit excludes General & Administrative Expenses
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items for PI Segment
Amounts In Thousands
(Unaudited)
| Three Months Ended November 2, 2024 | Three Months Ended October 28, 2023 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total PISegment asReported | MTEX asReported | InventoryStep-Up | Adj MTEX(Non-GAAP) | PIExcludingMTEX(Non-GAAP) | Total PISegment asReported | RestructuringCharges | ProductRetrofitCosts | PI(Non-GAAP) | |||||||||||||||
| Net Revenue | $ | 26,317 | $ | 1,738 | $ | 1,738 | $ | 24,579 | $ | 26,543 | $ | 26,543 | |||||||||||
| Cost of Revenue | 17,910 | 1,504 | (34 | ) | 1,470 | 16,440 | 16,024 | 16,024 | |||||||||||||||
| Gross Profit | 8,407 | 234 | 34 | 268 | 8,139 | 10,519 | — | — | 10,519 | ||||||||||||||
| Selling & Marketing | 5,644 | 839 | 839 | 4,805 | 4,711 | 4,711 | |||||||||||||||||
| Research & Development | 895 | 209 | 209 | 686 | 1,014 | 1,014 | |||||||||||||||||
| Operating Expenses | 6,539 | 1,048 | — | 1,048 | 5,491 | 5,725 | — | — | 5,725 | ||||||||||||||
| Segment Operating Profit (Loss) | $ | 1,868 | $ | (814 | ) | $ | 34 | $ | (780 | ) | $ | 2,648 | $ | 4,794 | $ | — | $ | — | $ | 4,794 | |||
| Nine Months Ended November 2, 2024 | Nine Months Ended October 28, 2023 | ||||||||||||||||||||||
| Total PISegment asReported | MTEX asReported | InventoryStep-Up | Adj MTEX(Non-GAAP) | PIExcludingMTEX(Non-GAAP) | Total PISegment asReported | RestructuringCharges | ProductRetrofitCosts | PI(Non-GAAP) | |||||||||||||||
| Net Revenue | $ | 76,667 | $ | 2,506 | $ | 2,506 | $ | 74,161 | $ | 77,416 | $ | 77,416 | |||||||||||
| Cost of Revenue | 51,313 | 2,340 | (154 | ) | 2,186 | 49,127 | 51,851 | (2,096 | ) | (852 | ) | 48,903 | |||||||||||
| Gross Profit | 25,354 | 166 | 154 | 320 | 25,034 | 25,565 | 2,096 | 852 | 28,513 | ||||||||||||||
| Selling & Marketing | 15,946 | 1,755 | 1,755 | 14,191 | 15,480 | (443 | ) | 15,037 | |||||||||||||||
| Research & Development | 2,200 | 111 | 111 | 2,089 | 3,237 | (29 | ) | 3,208 | |||||||||||||||
| Operating Expenses | 18,146 | 1,866 | — | 1,866 | 16,280 | 18,717 | (472 | ) | — | 18,245 | |||||||||||||
| Segment Operating Profit (Loss) | $ | 7,208 | $ | (1,700 | ) | $ | 154 | $ | (1,546 | ) | $ | 8,754 | $ | 6,848 | $ | 2,568 | $ | 852 | $ | 10,268 |
Note: Segment Operating Profit excludes General & Administrative Expenses. MTEX General & Administrative Expenses of $273,000 for the three months ended November 2, 2024 and $783,000 for the nine months ended November 2, 2024 results in an MTEX Operating Loss of $(1,087,000) for the three months ended November 2, 2024 and $(2,483,000) for the nine months ended November 2, 2024.