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): September 16, 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> <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> <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 September 16, 2024, we issued a press release reporting the financial results for our fiscal second quarter ended August 3, 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 September 16, 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: September 16, 2024 | By: | /s/ Thomas D. DeByle |
| Thomas D. DeByle | ||
| Vice President, Chief Financial Officer and Treasurer |
EX-99.1
Exhibit 99.1
| News Release |
|---|
AstroNova Reports Fiscal 2025 Second Quarter Financial Results
Company to host conference call at 9:30 a.m. ET today
| • | Revenue of $40.5 million, up 14.1% year over year |
|---|---|
| • | Gross margin of 35.3%, up 800 basis points year over year; non-GAAP gross<br>margin of 35.6%, unchanged year over year |
| --- | --- |
| • | Operating income of $1.1 million; non-GAAP operating income of<br>$2.2 million |
| --- | --- |
| • | Net loss per share of $(0.04) vs. $(0.22) in the second quarter of fiscal year 2024; non-GAAP diluted earnings per share of $0.08 vs. $0.15 in the second quarter of fiscal 2024 |
| --- | --- |
| • | Adjusted EBITDA of $3.9 million, up 5.3% year over year |
| --- | --- |
West Warwick, R.I., September 16, 2024 – AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2025 second quarter ended August 3, 2024.
CEO Commentary
“We demonstrated the resilience of our Product Identification (PI) and Test & Measurement (T&M) segments during a second quarter in which we began shipping a previously delayed order and benefited from the resolution of supply chain shortages,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “In PI, total revenue increased more than 5% year-over-year and more than 17% sequentially, driven primarily by organic growth. T&M revenue grew 37% sequentially and year-over-year, reflecting continued momentum from our Aerospace product line.
“During the quarter we began the process of integrating our May acquisition of MTEX NS. Because MTEX was an entrepreneurial, private company, the integration got off to a slow start in the quarter, generating revenue of only $0.8 million and an operating loss of $1.4 million. We expect it to take through the remainder of fiscal 2025 to transition MTEX’s systems, processes and business tools to those of the AstroNova Operating System,” Woods said. “We remain excited about MTEX’s core strengths, including its engineering and manufacturing capabilities and especially its game-changing ink and printhead technologies. In the coming months we will be devoting additional resources to integrating that technology into more of our Product Identification products. Buoyed by several large tradeshows since the acquisition, MTEX has built a strong product backlog that we expect to begin shipping in the third and fourth quarters, which will enable the business to meet our target revenue contribution of $8 million to $10 million for full-year fiscal 2025.”
Business Outlook
“Looking ahead, we are optimistic about our growth prospects,” Woods continued. “We are well-positioned to continue driving organic growth, supported by our commitment to delivering innovative, high-margin products while maintaining strong cost controls. We anticipate achieving our fiscal year targets for revenue growth. As a result of the MTEX integration, we have reduced our consolidated FY 2025 Adjusted EBITDA margin estimate to a range of 9% to 10% and expect to be within the range of 13% to 14% in fiscal 2026.”
Q2 FY 2025 Financial Results
| GAAP | Non-GAAP | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands except per share data) | Q2 FY25 | Q2 FY24 | YoY | Q2 FY25 | Q2 FY24 | YoY | ||||||||||||
| Revenue | $ | 40,539 | $ | 35,524 | 14.1 | % | ||||||||||||
| Gross Profit | $ | 14,326 | $ | 9,710 | 47.5 | % | $ | 14,446 | $ | 12,659 | 14.1 | % | ||||||
| Gross Margin | 35.3 | % | 27.3 | % | 800 pts | 35.6 | % | 35.6 | % | — | ||||||||
| Operating Margin | 2.6 | % | (3.4 | %) | 600 pts | 5.5 | % | 6.5 | % | (100 pts | ) | |||||||
| Net (Loss) Income | $ | (311 | ) | $ | (1,617 | ) | — | $ | 572 | $ | 1,089 | (47.5 | %) | |||||
| Net (Loss) Income Per Common Share | $ | (0.04 | ) | $ | (0.22 | ) | — | $ | 0.08 | $ | 0.15 | (46.7 | %) |
See reconciliation tables GAAP to Non-GAAP reconciliations.
Adjusted EBITDA was $3.9 million for the second quarter of fiscal 2025, compared with $3.7 million in the comparable period of fiscal 2024. Adjusted EBITDA for the fiscal 2025 period excludes the impact of $1.7 million in costs related to stock-based compensation, CFO transition and MTEX acquisition-related expenses. Adjusted EBITDA for the fiscal 2024 period excludes the impact of stock-based compensation, retrofit and restructuring costs of $3.9 million.
Bookings for the second quarter of fiscal 2025 were $35.8 million compared with $30.1 million in the second quarter of fiscal 2024. Bookings were primarily higher in the Test and Measurement segment.
Backlog as of August 3, 2024, was $29.9 million, compared with $31.6 million at the end of the first quarter of fiscal 2025, as some shipments delayed in the first quarter were shipped in the second quarter.
Q2 FY 2025 Operating Segment Results
ProductIdentification
PI segment revenue was $27.2 million in the second quarter of fiscal 2025, compared with $25.8 million in the second quarter of 2024, reflecting organic growth and the addition of MTEX NS. Segment operating profit was $2.3 million, or 8.6% of revenue, compared with a segment operating loss of $461,000, or (1.8%) of revenue, in the same period last year. Excluding the results of MTEX in fiscal 2025 and certain expenses in both periods (see reconciliation tables below for GAAP reconciliation), non-GAAP operating profit was $3.6 million, or 13.7% of revenue in the fiscal 2025 period, compared with non-GAAP operating profit of $3.0 million, or 11.5% of revenue, in the same period of fiscal 2024.
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Test & Measurement
Test & Measurement (T&M) segment revenue was $13.4 million in the second quarter of fiscal 2025, compared with $9.7 million in the same period of fiscal 2024, representing a 37.2% increase. Segment operating profit was $3.8 million, or 28.7% of revenue, in the second quarter of fiscal 2025 compared with $1.9 million, or 19.7% of revenue, in the second quarter of fiscal 2024. This improvement reflected higher revenue and $1.3 million in revenue and $1.0 million in operating profit related to non-recurring items.
Earnings Conference Call Information
AstroNova will discuss its fiscal 2025 second quarter financial results in an investor conference call at 9:30 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 381674. 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 FinancialMeasures
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 income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income (loss) per common share 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 months ended August 3, 2024, and July 29, 2023.
AstroNova has not reconciled the forward-looking Adjusted EBITDA growth percentage included in its 2025 financial targets and outlook to the most directly comparable forward-looking GAAP measure because this cannot be done without unreasonable effort due to the lack of predictability regarding cost of sales, operating expenses, depreciation and amortization, and stock-based compensation. The impact of any of these items, individually or in the aggregate, may be significant.
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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 synergies from our acquisition of MTEX NS, (ii) the risk that apparent improvements in the Aerospace sector may not continue, (iii) the risk that supply chain issues may persist longer than we expect, (iv) the risk that we may not be able to incorporate customer-requested design enhancements into our products on the timeframe that we expect or at all, (v) the risk that we may not be able to ship delayed hardware items on the timeline we expect or at all ,and (vi) 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 | ||||||
|---|---|---|---|---|---|---|
| August 3,2024 | July 29,<br>2023 | |||||
| Net Revenue | $ | 40,539 | **** | $ | 35,524 | |
| Cost of Revenue | **** | 26,213 | **** | 25,814 | ||
| Gross Profit | **** | 14,326 | **** | 9,710 | ||
| Total Gross Profit Margin | 35.3 | % | 27.3 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 6,732 | **** | 6,697 | ||
| Research & Development | **** | 1,412 | **** | 1,557 | ||
| General & Administrative | **** | 5,121 | **** | 2,654 | ||
| Total Operating Expenses | **** | 13,265 | **** | 10,908 | ||
| Operating Income (Loss) | **** | 1,061 | **** | (1,198 | ) | |
| Total Operating Margin | 2.6 | % | (3.4 | )% | ||
| Other Expense, net | **** | 1,111 | **** | 809 | ||
| Income (Loss) Before Taxes | **** | (50 | ) | (2,007 | ) | |
| Income Tax Provision (Benefit) | **** | 261 | **** | (390 | ) | |
| Net Income (Loss) | $ | (311 | ) | $ | (1,617 | ) |
| Net Income (Loss) per Common Share - Basic | $ | (0.04 | ) | $ | (0.22 | ) |
| Net Income (Loss) per Common Share - Diluted | $ | (0.04 | ) | $ | (0.22 | ) |
| Weighted Average Number of Common Shares - Basic | **** | 7,516 | **** | 7,420 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,516 | **** | 7,420 | ||
| Six Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| August 3,2024 | July 29,<br>2023 | |||||
| Net Revenue | $ | 73,500 | **** | $ | 70,943 | |
| Cost of Revenue | **** | 47,202 | **** | 48,847 | ||
| Gross Profit | **** | 26,298 | **** | 22,096 | ||
| Total Gross Profit Margin | 35.8 | % | 31.1 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 12,388 | **** | 12,707 | ||
| Research & Development | **** | 3,015 | **** | 3,345 | ||
| General & Administrative | **** | 8,488 | **** | 5,780 | ||
| Total Operating Expenses | **** | 23,891 | **** | 21,832 | ||
| Operating Income | **** | 2,407 | **** | 264 | ||
| Total Operating Margin | 3.3 | % | 0.4 | % | ||
| Other Expense, net | **** | 1,711 | **** | 1,244 | ||
| Income (Loss) Before Taxes | **** | 696 | **** | (980 | ) | |
| Income Tax Provision (Benefit) | **** | (173 | ) | (211 | ) | |
| Net Income (Loss) | $ | 869 | **** | $ | (769 | ) |
| Net Income (Loss) per Common Share - Basic | $ | 0.12 | **** | $ | (0.10 | ) |
| Net Income (Loss) per Common Share - Diluted | $ | 0.11 | **** | $ | (0.10 | ) |
| Weighted Average Number of Common Shares - Basic | **** | 7,489 | **** | 7,396 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,617 | **** | 7,396 |
ASTRONOVA, INC.
Consolidated Balance Sheets
In Thousands
(Unaudited)
| August 3,2024 | January 31,<br>2024 | |||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and Cash Equivalents | $ | 4,824 | **** | $ | 4,527 | |
| Accounts Receivable, net | **** | 23,450 | **** | 23,056 | ||
| Inventories, net | **** | 50,569 | **** | 46,371 | ||
| Prepaid Expenses and Other Current Assets | **** | 4,218 | **** | 2,720 | ||
| Total Current Assets | **** | 83,061 | **** | 76,674 | ||
| PROPERTY, PLANT AND EQUIPMENT | **** | 69,215 | **** | 57,046 | ||
| Less Accumulated Depreciation | **** | (50,465 | ) | (42,861 | ) | |
| Property, Plant and Equipment, net | **** | 18,750 | **** | 14,185 | ||
| OTHER ASSETS | ||||||
| Intangible Assets, net | **** | 27,314 | **** | 18,836 | ||
| Goodwill | **** | 25,368 | **** | 14,633 | ||
| Deferred Tax Assets | **** | 10,854 | **** | 6,882 | ||
| Right of Use Asset | **** | 1,920 | **** | 603 | ||
| Other Assets | **** | 1,750 | **** | 1,438 | ||
| TOTAL ASSETS | $ | 169,017 | **** | $ | 133,251 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts Payable | $ | 10,456 | **** | $ | 8,068 | |
| Accrued Compensation | **** | 3,577 | **** | 2,923 | ||
| Other Liabilities and Accrued Expenses | **** | 4,369 | **** | 2,706 | ||
| Revolving Line of Credit | **** | 13,354 | **** | 8,900 | ||
| Current Portion of Long-Term Debt | **** | 6,513 | **** | 2,842 | ||
| Short-Term Debt | **** | 3,092 | **** | — | ||
| Current Portion of Royalty Obligation | **** | 1,575 | **** | 1,700 | ||
| Current Liability – Excess Royalty Payment Due | **** | 798 | **** | 935 | ||
| Income Taxes Payable | — | 349 | ||||
| Deferred Revenue | **** | 785 | **** | 1,338 | ||
| Total Current Liabilities | **** | 44,519 | **** | 29,761 | ||
| NON-CURRENT LIABILITIES | ||||||
| Long-Term Debt, net of current portion | **** | 22,675 | **** | 10,050 | ||
| Royalty Obligation, net of current portion | **** | 1,663 | **** | 2,093 | ||
| Lease Liability, net of current portion | **** | 1,633 | **** | 415 | ||
| Grant Deferred Revenue | **** | 1,476 | **** | — | ||
| Contingent Liability Earn Out | **** | 1,629 | **** | — | ||
| Income Tax Payables | **** | 551 | **** | 551 | ||
| Deferred Tax Liabilities | **** | 3,121 | **** | 99 | ||
| TOTAL LIABILITIES | **** | 77,267 | **** | 42,969 | ||
| SHAREHOLDERS’ EQUITY | ||||||
| Common Stock | **** | 546 | **** | 541 | ||
| Additional Paid-in Capital | **** | 63,563 | **** | 62,684 | ||
| Retained Earnings | **** | 64,739 | **** | 63,869 | ||
| Treasury Stock | **** | (35,025 | ) | (34,593 | ) | |
| Accumulated Other Comprehensive Loss, net of tax | **** | (2,073 | ) | (2,219 | ) | |
| TOTAL SHAREHOLDERS’ EQUITY | **** | 91,750 | **** | 90,282 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 169,017 | **** | $ | 133,251 |
ASTRONOVA, INC.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
| Six Months Ended | ||||||
|---|---|---|---|---|---|---|
| August 3, 2024 | July 29, 2023 | |||||
| Cash Flows from Operating Activities: | ||||||
| Net Income (Loss) | $ | 869 | **** | $ | (769 | ) |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||
| Depreciation and Amortization | **** | 2,216 | **** | 2,144 | ||
| Amortization of Debt Issuance Costs | **** | 14 | **** | 11 | ||
| Share-Based Compensation | **** | 806 | **** | 754 | ||
| Restructuring - non-cash | — | 2,040 | ||||
| Changes in Assets and Liabilities, net of impact of acquisition: | ||||||
| Accounts Receivable | **** | 3,612 | **** | 3,612 | ||
| Inventories | **** | (384 | ) | 283 | ||
| Income Taxes | **** | (721 | ) | (1,461 | ) | |
| Accounts Payable and Accrued Expenses | **** | 2,409 | **** | (2,267 | ) | |
| Deferred Revenue | **** | (619 | ) | — | ||
| Other | **** | (1,136 | ) | 371 | ||
| Net Cash Provided by Operating Activities | **** | 7,066 | **** | 4,718 | ||
| Cash Flows from Investing Activities: | ||||||
| Purchases of Property, Plant and Equipment | **** | (830 | ) | (494 | ) | |
| Cash Paid for MTEX Acquisition, net of cash acquired | **** | (20,729 | ) | — | ||
| Net Cash Provided (Used) for Investing Activities | **** | (21,559 | ) | (494 | ) | |
| 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 | **** | 65 | **** | 54 | ||
| Net Cash Used for Payment of Taxes Related to Vested Restricted Stock | **** | (432 | ) | (350 | ) | |
| Borrowings under Revolving Credit Facility | **** | 3,912 | **** | — | ||
| Repayment under Revolving Credit Facility | **** | — | **** | (2,000 | ) | |
| Proceeds from Long-Term Debt Borrowings | **** | 15,078 | **** | — | ||
| Payment of Minimum Guarantee Royalty Obligation | **** | (750 | ) | (875 | ) | |
| Principal Payments of Long-Term Debt | **** | (3,274 | ) | (750 | ) | |
| Payments of Debt Issuance Costs | **** | (35 | ) | — | ||
| Net Cash Provided (Used) for Financing Activities | **** | 14,577 | **** | (3,850 | ) | |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | **** | 213 | **** | 210 | ||
| Net Increase in Cash and Cash Equivalents | **** | 297 | **** | 584 | ||
| Cash and Cash Equivalents, Beginning of Period | **** | 4,527 | **** | 3,946 | ||
| Cash and Cash Equivalents, End of Period | $ | 4,824 | **** | $ | 4,530 | |
| Supplemental Disclosures of Cash Flow Information: | ||||||
| Cash Paid During the Period for: | ||||||
| Cash Paid During the Period for Interest | $ | 1,008 | **** | $ | 1,184 | |
| Cash Paid During the Period for Income Taxes, net of refunds | $ | 540 | **** | $ | 1,264 | |
| Non-Cash Transactions: | ||||||
| Capital Lease Obtained in Exchange for Capital Lease Liabilities | $ | 1,455 | **** | $ | — |
ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)
| Revenue | Segment Operating Profit | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Three Months Ended | |||||||||
| August 3,2024 | July 29,<br>2023 | August 3,2024 | July 29,<br>2023 | |||||||
| Product Identification | $ | 27,165 | $ | 25,777 | $ | 2,348 | **** | $ | (461 | ) |
| Test & Measurement | **** | 13,374 | 9,747 | **** | 3,834 | **** | 1,917 | |||
| Total | $ | 40,539 | $ | 35,524 | **** | 6,182 | **** | 1,456 | ||
| Corporate Expenses | **** | 5,121 | **** | 2,654 | ||||||
| Operating Income (Loss) | **** | 1,061 | **** | (1,198 | ) | |||||
| Other Expense, net | **** | 1,111 | **** | 809 | ||||||
| Income (Loss) Before Income Taxes | **** | (50 | ) | (2,007 | ) | |||||
| Income Tax Provision (Benefit) | **** | 261 | **** | (390 | ) | |||||
| Net Income (Loss) | $ | (311 | ) | $ | (1,617 | ) | ||||
| Revenue | Segment Operating Profit | |||||||||
| Six Months Ended | Six Months Ended | |||||||||
| August 3,2024 | July 29,<br>2023 | August 3,2024 | July 29,<br>2023 | |||||||
| Product Identification | $ | 50,350 | $ | 50,872 | $ | 5,340 | **** | $ | 2,055 | |
| Test & Measurement | **** | 23,150 | 20,071 | **** | 5,555 | **** | 3,989 | |||
| Total | $ | 73,500 | $ | 70,943 | **** | 10,895 | **** | 6,044 | ||
| Corporate Expenses | **** | 8,488 | **** | 5,780 | ||||||
| Operating Income | **** | 2,407 | **** | 264 | ||||||
| Other Expense, net | **** | 1,711 | **** | 1,244 | ||||||
| Income (Loss) Before Income Taxes | **** | 696 | **** | (980 | ) | |||||
| Income Tax Provision (Benefit) | **** | (173 | ) | (211 | ) | |||||
| Net Income (Loss) | $ | 869 | **** | $ | (769 | ) |
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items
In Thousands Except for Per Share Data
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| August 3,2024 | July 29,<br>2023 | |||||
| Gross Profit | $ | 14,326 | $ | 9,710 | ||
| Inventory Step-Up | 120 | — | ||||
| Restructuring Charges | — | 2,096 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Gross Profit | $ | 14,446 | $ | 12,658 | ||
| Operating Expenses | $ | 13,265 | $ | 10,908 | ||
| MTEX-related Acquisition Expenses | (625 | ) | — | |||
| CFO Transition Costs | (432 | ) | — | |||
| Restructuring Charges | — | (555 | ) | |||
| Non-GAAP Operating Expenses | $ | 12,208 | $ | 10,353 | ||
| Operating Income (Loss) | $ | 1,061 | $ | (1,198 | ) | |
| MTEX-related Acquisition Expenses | 625 | — | ||||
| CFO Transition Costs | 432 | — | ||||
| Inventory Step-Up | 120 | — | ||||
| Restructuring Charges | — | 2,651 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Operating Income | $ | 2,238 | $ | 2,305 | ||
| Net Income (Loss) | $ | (311 | ) | $ | (1,617 | ) |
| MTEX-related Acquisition Expenses, net | 470 | — | ||||
| CFO Transition Costs, net | 328 | — | ||||
| Inventory Step-Up, net | 85 | — | ||||
| Restructuring Charges, net | — | 2,048 | ||||
| Product Retrofit Costs, net | — | 658 | ||||
| Non-GAAP Net Income | $ | 572 | $ | 1,089 | ||
| Diluted Earnings (Loss) Per Share | $ | (0.04 | ) | $ | (0.22 | ) |
| MTEX-related Acquisition Expenses | 0.06 | — | ||||
| CFO Transition Costs | 0.05 | — | ||||
| Inventory Step-Up | 0.01 | — | ||||
| Restructuring Charges | — | 0.28 | ||||
| Product Retrofit Costs | — | 0.09 | ||||
| Non-GAAP Diluted Earnings (Loss) Per Share | $ | 0.08 | $ | 0.15 | ||
| Six Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| August 3,2024 | July 29,<br>2023 | |||||
| Gross Profit | $ | 26,298 | $ | 22,096 | ||
| Inventory Step-Up | 120 | — | ||||
| Restructuring Charges | — | 2,096 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Gross Profit | $ | 26,418 | $ | 25,044 | ||
| Operating Expenses | $ | 23,891 | $ | 21,832 | ||
| MTEX-related Acquisition Expenses | (625 | ) | — | |||
| CFO Transition Costs | (432 | ) | — | |||
| Restructuring Charges | — | (555 | ) | |||
| Non-GAAP Operating Expenses | $ | 22,834 | $ | 21,277 | ||
| Operating Income | $ | 2,407 | $ | 264 | ||
| MTEX-related Acquisition Expenses | 625 | — | ||||
| CFO Transition Costs | 432 | — | ||||
| Inventory Step-Up | 120 | — | ||||
| Restructuring Charges | — | 2,651 | ||||
| Product Retrofit Costs | — | 852 | ||||
| Non-GAAP Operating Income | $ | 3,584 | $ | 3,767 | ||
| Net Income (Loss) | $ | 869 | $ | (769 | ) | |
| MTEX-related Acquisition Expenses, net | 470 | — | ||||
| CFO Transition Costs, net | 328 | — | ||||
| Inventory Step-Up, net | 85 | — | ||||
| Restructuring Charges, net | — | 2,048 | ||||
| Product Retrofit Costs, net | — | 658 | ||||
| Non-GAAP Net Income | $ | 1,752 | $ | 1,937 | ||
| Diluted Earnings (Loss) Per Share | $ | 0.11 | $ | (0.10 | ) | |
| MTEX-related Acquisition Expenses | 0.06 | — | ||||
| 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 | $ | 0.23 | $ | 0.27 |
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items for PI Segment
Amounts in Thousands
(Unaudited)
| Q2 FY25 | Q2 FY24 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total PISegment asReported | MTEX AsReported | InventoryStep Up | Adj MTEX(Non Gaap) | PIExcludingMTEX(Non Gaap) | Total PISegment asReported | Restructuringand ProductRetrofitAdjustments | Total PISegment(Non Gaap) | ||||||||||||||
| Sales | $ | 27,165 | $ | 768 | $ | — | $ | 768 | $ | 26,397 | $ | 25,777 | $ | — | $ | 25,777 | |||||
| Cost of Revenue | 18,544 | 836 | (120 | ) | 716 | 17,828 | 19,487 | (2,948 | ) | 16,539 | |||||||||||
| Gross Profit | 8,621 | (68 | ) | 120 | 52 | 8,569 | 6,290 | 2,948 | 9,238 | ||||||||||||
| Operating Expenses | 6,273 | 1,328 | — | 1,328 | 4,945 | 6,751 | (472 | ) | 6,279 | ||||||||||||
| Segment Operating Profit | $ | 2,348 | $ | (1,396 | ) | $ | 120 | $ | (1,276 | ) | $ | 3,624 | $ | (461 | ) | $ | 3,420 | $ | 2,959 |
ASTRONOVA, INC.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
Amounts In Thousands
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| August 3, 2024 | July 29, 2023 | |||||
| Net Income (Loss) | $ | (311 | ) | $ | (1,617 | ) |
| Interest Expense | **** | 938 | **** | 674 | ||
| Income Tax Expense (Benefit) | **** | 261 | **** | (390 | ) | |
| Depreciation & Amortization | **** | 1,305 | **** | 1,089 | ||
| EBITDA | $ | 2,193 | **** | $ | (244 | ) |
| Share-Based Compensation | **** | 481 | **** | 398 | ||
| MTEX-related Acquisition Expenses | **** | 625 | **** | — | ||
| CFO Transition Costs | **** | 432 | **** | — | ||
| Inventory Step-Up | **** | 120 | **** | — | ||
| Restructuring Charges | **** | — | **** | 2,651 | ||
| Product Retrofit Costs | **** | — | **** | 852 | ||
| Adjusted EBITDA | $ | 3,851 | **** | $ | 3,657 | |
| Six Months Ended | ||||||
| August 3, 2024 | July 29, 2023 | |||||
| Net Income (Loss) | $ | 869 | **** | $ | (769 | ) |
| Interest Expense | **** | 1,419 | **** | 1,289 | ||
| Income Tax Expense (Benefit) | **** | (173 | ) | (211 | ) | |
| Depreciation & Amortization | **** | 2,216 | **** | 2,144 | ||
| EBITDA | $ | 4,331 | **** | $ | 2,453 | |
| Share-Based Compensation | **** | 806 | **** | 754 | ||
| MTEX-related Acquisition Expenses | **** | 625 | **** | — | ||
| CFO Transition Costs | **** | 432 | **** | — | ||
| Inventory Step-Up | **** | 120 | **** | — | ||
| Restructuring Charges | **** | — | **** | 2,651 | ||
| Product Retrofit Costs | **** | — | **** | 852 | ||
| Adjusted EBITDA | $ | 6,314 | **** | $ | 6,710 |
ASTRONOVA, INC.
Reconciliation of Segment Operating Income (Loss) to Non-GAAP Operating Income
Amounts In Thousands
(Unaudited)
| Three Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ProductIdentification | August 3, 2024<br>Test &Measurement | Total | Product<br>Identification | July 29, 2023<br>Test &<br>Measurement | Total | ||||||||
| Segment Operating Profit (Loss) | $ | 2,348 | $ | 3,834 | $ | 6,182 | $ | (461 | ) | $ | 1,917 | $ | 1,456 |
| Inventory Step-Up | **** | 120 | **** | — | **** | 120 | — | — | — | ||||
| Restructuring Charges | **** | — | **** | — | **** | — | 2,568 | — | 2,568 | ||||
| Product Retrofit Costs | **** | — | **** | — | **** | — | 852 | — | 852 | ||||
| Non-GAAP - Segment Operating Profit | $ | 2,468 | $ | 3,834 | $ | 6,302 | $ | 2,959 | $ | 1,917 | $ | 4,876 | |
| Six Months Ended | |||||||||||||
| ProductIdentification | August 3, 2024<br>Test &Measurement | Total | Product<br>Identification | July 29, 2023<br>Test &<br>Measurement | Total | ||||||||
| Segment Operating Profit | $ | 5,340 | $ | 5,555 | $ | 10,895 | $ | 2,055 | $ | 3,989 | $ | 6,044 | |
| Inventory Step-Up | **** | 120 | **** | — | **** | 120 | — | — | — | ||||
| Restructuring Charges | **** | — | **** | — | **** | — | 2,568 | — | 2,568 | ||||
| Product Retrofit Costs | **** | — | **** | — | **** | — | 852 | — | 852 | ||||
| Non-GAAP - Segment Operating Profit | $ | 5,460 | $ | 5,555 | $ | 11,015 | $ | 5,475 | $ | 3,989 | $ | 9,464 |