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): April 14, 2025
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) | (IRS Employer<br>Identification No.) |
| 600 East Greenwich Avenue<br> <br>West Warwick, Rhode Island | 02893 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (401) 828-4000
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:
| ☐ | 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 April 14, 2025, we issued a press release reporting the financial results for our fiscal fourth quarter and full year ended January 31, 2025. 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 Statements and Exhibits. |
|---|---|
| (d) | Exhibits |
| --- | --- |
| Exhibit<br>No. | Exhibit |
| --- | --- |
| 99.1 | Press Release dated April 14, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: April 14, 2025 | 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 Fourth-Quarter and Full-Year Financial Results;
Advancing Restructuring, Operational Realignment and
Product Simplification Plans to Drive Improved Earnings Power
| • | Fourth quarter revenue of $37.4 million in line with preliminary expectations; fiscal 2025revenue of $151.3 million comprised of 71% recurring revenue |
|---|---|
| • | Restructuring plan expected to deliver $3 million in annualized savings with 40% to berealized in fiscal 2026 |
| --- | --- |
| • | Simplifying product portfolio; focused on higher growth higher margin products |
| --- | --- |
| • | Aerospace Test & Measurement segment ToughWriter printer transition 40% complete;drives operational efficiency and reduced working capital requirements while eliminating legacy royalties |
| --- | --- |
West Warwick, R.I.,April 14, 2025 – AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2025 fourth quarter and full-year ended January 31, 2025. Results include the May 6, 2024 acquisition of MTEX NS.
Greg Woods, President and Chief Executive Officer of AstroNova, stated, “Fiscal 2025 was a challenging year as we addressed the difficult integration of MTEX, absorbed the impact of the Boeing strike and addressed the timing associated with large defense industry orders. Nonetheless, we aggressively implemented the AstroNova Operating System at MTEX, improved the leadership team, upgraded talent within the organization, and significantly improved the accounting and finance system and human resources processes. We are instilling accountability and discipline into the organization, streamlining the structure and eliminating waste. We have also identified how to best leverage MTEX’s operations in Portugal to create an AstroNova Center of Manufacturing Excellence in Europe. In fact, we are taking action throughout AstroNova to create a business that can deliver stronger earnings power.”
“Importantly, we are leveraging the innovative foundation of MTEX technologies to create more competitive solutions that address an expanded range of applications and provide our customers with higher quality and reliability. This will also enable us to gain greater control over our supply chain in order to reduce costs and expand margins. We plan to launch new products incorporating our next-generation technology in the first quarter of fiscal 2026 and will be rolling out more products throughout the year.”
Fiscal 2026 Outlook Reaffirmed
For fiscal 2026, AstroNova continues to expect net revenue in the range of $160 million to $165 million which is a 7% increase over fiscal 2025 at the mid-point of the range. Adjusted EBITDA margin is expected to be in the range of 8.5% to 9.5%, a 60-basis point expansion over the prior year at the mid-point.
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Mr. Woods added, “We are focused on innovative solutions to gain market share and expand our market reach. Our strategic priorities in fiscal 2026 are to drive our print engine technology initiatives, capture greater ownership of the supply chain for our consumables, and drive the conversion to our ToughWriter family of printers with our Aerospace customers. In addition to offering a better solution for our customers, this conversion and other product simplification initiatives will reduce inventory, improve working capital and drive profitability.”
Fourth Quarter Fiscal 2025 Overview
Net revenue for the fourth quarter of fiscal 2025 was $37.4 million compared with net revenue of $39.6 million for the fourth quarter of fiscal 2024, a decrease of 5.6% or $2.2 million, reflecting lower sales in both Product Identification (PI) and Test & Measurement (T&M) segments.
PI revenue was $25.7 million for the fourth quarter of fiscal 2025 compared with $26.6 million for the fourth quarter of fiscal 2024, a decrease of 3.6% or $0.9 million. The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024.
On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $11.2 million for the fourth quarter of fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.1 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $3.2 million, or 12.2% of segment revenue, for the fourth quarter of fiscal 2024, which includes $0.3 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $2.3 million, or 8.9% of segment revenue in the fourth quarter of fiscal 2025, compared with segment operating profit of $3.0 million, or 11.1% of segment revenue, for the fourth quarter of fiscal 2024.
T&M segment revenue was $11.7 million for the fourth quarter of fiscal 2025 compared with $13.0 million for the fourth quarter of fiscal 2024, a decrease of 9.9% or $1.3 million. The decrease was due primarily to a delayed defense order and, to a lesser extent, deferred deliveries associated with the Boeing strike.
T&M segment operating profit was $2.3 million, or 20.0% of segment revenue, for the fourth quarter of fiscal 2025 compared with segment operating profit of $3.7 million, or 28.2% of segment revenue, for the fourth quarter of fiscal 2024.
GAAP gross profit was $12.7 million for the fourth quarter of fiscal 2025, resulting in a gross margin of 34.1%, compared with gross profit of $14.7 million and a gross profit of 37.2% for the same period in fiscal 2024, primarily reflecting lower revenue and less favorable product mix in the 2025 period.
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GAAP operating loss for the fourth quarter of fiscal 2025 was $12.3 million, compared with GAAP operating income of $3.9 million for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $1.4 million, compared with $3.6 million in the fourth quarter of fiscal 2024.
Net loss on a GAAP basis was $15.6 million, or $2.07 per share, for the fourth quarter of fiscal 2025 compared with net income of $2.7 million, or $0.36 per diluted share, for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $0.4 million, or $0.06 per diluted share, for the fourth quarter of fiscal 2025 compared with net income of $2.5 million, or $0.33 per diluted share, in the fourth quarter of fiscal 2024.
Adjusted EBITDA was $2.8 million for the fourth quarter of fiscal 2025 compared with Adjusted EBITDA $5.2 million for the fourth quarter of fiscal 2024.
The Company’s order backlog was $28.3 million as of January 31, 2025 compared with $31.4 million at the end of fiscal 2024.
Full-Year Fiscal 2025 Overview
Net revenue for fiscal 2025 was $151.3 million compared with net revenue of $148.1 million for fiscal 2024, an increase of 2.2% or $3.2 million, reflecting higher sales in the T&M segment, partially offset by lower sales in the PI segment.
PI revenue was $102.3 million for fiscal 2025 compared with $104.0 million for fiscal 2024, a decrease of 1.6% or $1.7 million. The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024.
On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $4.0 million for fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.2 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $10.1 million, or 9.7% of segment revenue, for fiscal 2024, which includes $3.2 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $9.7 million, or 9.4% of segment revenue, for fiscal 2025, compared with segment operating profit of $13.2 million, or 12.7% of segment revenue, for fiscal 2024.
T&M segment revenue was $48.9 million for fiscal 2025 compared with $44.0 million fiscal 2024, an increase of 11.1% or $4.9 million. The increase primarily reflected higher revenue from supplies and service/other in the 2025 period, partly offset by lower hardware sales.
T&M segment operating profit was $11.1 million, or 22.8% of segment revenue, fiscal 2025 compared with segment operating profit of $10.2 million, or 23.2% of segment revenue, for fiscal 2024.
GAAP gross profit was $52.7 million for fiscal 2025, resulting in a gross margin of 34.9%, compared with gross profit of $51.6 million and a gross profit of 34.9% for fiscal 2024.
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GAAP operating loss for fiscal 2025 was $8.6 million, compared with GAAP operating income of $8.8 million for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $6.6 million for fiscal 2025, compared with $12.0 million for fiscal 2024, primarily related to higher operating expenses in the 2025 period.
Net loss on a GAAP basis was $14.5 million, or $1.93 per share, for fiscal 2025 compared with net income of $4.7 million, or $0.63 per diluted share, for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $2.7 million, or $0.33 per diluted share, in fiscal 2025 compared with net income of $7.2 million, or $0.97 per diluted share, in fiscal 2024.
Adjusted EBITDA was $12.3 million for fiscal 2025 compared with Adjusted EBITDA $17.6 million for fiscal 2024.
Amendment and Waiver of Credit Agreement
As previously disclosed, AstroNova obtained an amendment and waiver with regard to its credit agreement with Bank of America. Among other changes to the credit agreement, the amendment waives certain covered covenants as of the end of its fiscal quarter ended January 31, 2025, provides for relaxed financial covenant ratios during fiscal 2026, and provides for reduced payments of one of its term loans during fiscal 2026 as the Company implements its restructuring efforts, after which the payments of such term loan increase. The amended credit agreement provides for up to $2 million in add-backs to the Company’s Consolidated EBITDA (as defined in the credit agreement) for Company cash restructuring charges in fiscal 2026.
Earnings Conference Call Information
AstroNova will discuss its fiscal fourth-quarter and full-year fiscal 2025 financial results and business outlook 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 957215.
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 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 12 months ended January 31, 2025 and 2024.
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AstroNova has not reconciled the forward-looking Adjusted EBITDA growth percentage included in its fiscal 2026 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.
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 our organizational improvements at MTEX may not result in the benefits that we expect; (ii) the risk that our cost-reduction and product line rationalization initiative may not provide the expected benefits; (iii) the risk that our Aerospace customers may not convert to our ToughWriter line in the volumes or on the schedule that we expect; (iv) the risk that we may not realize the anticipated benefits of our next-generation print engine technology;
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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.
Contacts:
Tom DeByle
Vice President, Chief Financial Officer & Treasurer
AstroNova, Inc.
(401) 828-4000
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 | ||||||
|---|---|---|---|---|---|---|
| January 31,2025 | January 31,<br>2024 | |||||
| Net Revenue | $ | 37,361 | **** | $ | 39,594 | |
| Cost of Revenue | **** | 24,624 | **** | 24,848 | ||
| Gross Profit | **** | 12,737 | **** | 14,746 | ||
| Total Gross Profit Margin | 34.1 | % | 37.2 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 6,421 | **** | 5,977 | ||
| Research & Development | **** | 1,751 | **** | 1,878 | ||
| General & Administrative | **** | 3,473 | **** | 2,976 | ||
| Goodwill Impairment | **** | 13,403 | **** | — | ||
| Total Operating Expenses | **** | 25,048 | **** | 10,831 | ||
| Operating Income (Loss) | **** | (12,311 | ) | 3,915 | ||
| Total Operating Margin | (33.0 | )% | 9.9 | % | ||
| Interest Expense | **** | 847 | **** | 779 | ||
| Other (Income)/Expense, net | **** | 100 | **** | (216 | ) | |
| Income (Loss) Before Taxes | **** | (13,258 | ) | 3,352 | ||
| Income Tax Provision | **** | 2,342 | **** | 641 | ||
| Net Income (Loss) | $ | (15,600 | ) | $ | 2,711 | |
| Net Income (Loss) per Common Share - Basic | $ | (2.07 | ) | $ | 0.36 | |
| Net Income (Loss) per Common Share - Diluted | $ | (2.07 | ) | $ | 0.36 | |
| Weighted Average Number of Common Shares - Basic | **** | 7,534 | **** | 7,438 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,534 | **** | 7,550 | ||
| Twelve Months Ended | ||||||
| January 31,2025 | January 31,<br>2024 | |||||
| Net Revenue | $ | 151,283 | **** | $ | 148,086 | |
| Cost of Revenue | **** | 98,534 | **** | 96,465 | ||
| Gross Profit | **** | 52,749 | **** | 51,621 | ||
| Total Gross Profit Margin | 34.9 | % | 34.9 | % | ||
| Operating Expenses: | ||||||
| Selling & Marketing | **** | 25,560 | **** | 24,428 | ||
| Research & Development | **** | 6,610 | **** | 6,906 | ||
| General & Administrative | **** | 15,816 | **** | 11,491 | ||
| Goodwill Impairment | **** | 13,403 | **** | — | ||
| Total Operating Expenses | **** | 61,389 | **** | 42,825 | ||
| Operating Income (Loss) | **** | (8,640 | ) | 8,796 | ||
| Total Operating Margin | (5.7 | )% | 5.9 | % | ||
| Interest Expense | **** | 3,210 | **** | 2,697 | ||
| Other (Income)/Expense, net | **** | 437 | **** | 26 | ||
| Income (Loss) Before Taxes | **** | (12,287 | ) | 6,073 | ||
| Income Tax Provision | **** | 2,202 | **** | 1,379 | ||
| Net Income (Loss) | $ | (14,489 | ) | $ | 4,694 | |
| Net Income (Loss) per Common Share - Basic | $ | (1.93 | ) | $ | 0.63 | |
| Net Income (Loss) per Common Share - Diluted | $ | (1.93 | ) | $ | 0.63 | |
| Weighted Average Number of Common Shares - Basic | **** | 7,509 | **** | 7,415 | ||
| Weighted Average Number of Common Shares - Diluted | **** | 7,509 | **** | 7,496 |
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ASTRONOVA, INC.
Consolidated Balance Sheets
In Thousands
(Unaudited)
| January 31,2025 | January 31,<br>2024 | |||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and Cash Equivalents | $ | 5,050 | **** | $ | 4,527 | |
| Accounts Receivable, net | **** | 21,218 | **** | 23,056 | ||
| Inventories, net | **** | 47,894 | **** | 46,371 | ||
| Prepaid Expenses and Other Current Assets | **** | 3,855 | **** | 2,720 | ||
| Total Current Assets | **** | 78,017 | **** | 76,674 | ||
| PROPERTY, PLANT AND EQUIPMENT | **** | 62,361 | **** | 57,046 | ||
| Less Accumulated Depreciation | **** | (44,722 | ) | (42,861 | ) | |
| Property, Plant and Equipment, net | **** | 17,639 | **** | 14,185 | ||
| OTHER ASSETS | ||||||
| Intangible Assets, net | **** | 23,519 | **** | 18,836 | ||
| Goodwill | **** | 14,515 | **** | 14,633 | ||
| Deferred Tax Assets | **** | 8,431 | **** | 6,882 | ||
| Right of Use Asset | **** | 1,781 | **** | 603 | ||
| Other Assets | **** | 1,694 | **** | 1,438 | ||
| TOTAL ASSETS | $ | 145,595 | **** | $ | 133,251 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts Payable | $ | 7,928 | **** | $ | 8,068 | |
| Accrued Compensation | **** | 3,745 | **** | 2,923 | ||
| Other Liabilities and Accrued Expenses | **** | 4,461 | **** | 2,706 | ||
| Revolving Line of Credit | **** | 20,929 | **** | 8,900 | ||
| Current Portion of Long-Term Debt | **** | 6,110 | **** | 2,842 | ||
| Short-Term Debt | **** | 581 | **** | — | ||
| Current Portion of Royalty Obligation | **** | 1,358 | **** | 1,700 | ||
| Current Liability – Excess Royalty Payment Due | **** | 691 | **** | 935 | ||
| Income Taxes Payable | **** | (0 | ) | 349 | ||
| Deferred Revenue | **** | 543 | **** | 1,338 | ||
| Total Current Liabilities | **** | 46,346 | **** | 29,761 | ||
| NON-CURRENT LIABILITIES | ||||||
| Long-Term Debt, net of current portion | **** | 19,044 | **** | 10,050 | ||
| Royalty Obligation, net of current portion | **** | 1,106 | **** | 2,093 | ||
| Lease Liability, net of current portion | **** | 1,535 | **** | 415 | ||
| Grant Deferred Revenue | **** | 1,090 | **** | — | ||
| Income Tax Payables | **** | 684 | **** | 551 | ||
| Deferred Tax Liabilities | **** | 40 | **** | 99 | ||
| TOTAL LIABILITIES | **** | 69,845 | **** | 42,969 | ||
| SHAREHOLDERS’ EQUITY | ||||||
| Common Stock | **** | 547 | **** | 541 | ||
| Additional Paid-in Capital | **** | 64,215 | **** | 62,684 | ||
| Retained Earnings | **** | 49,380 | **** | 63,869 | ||
| Treasury Stock | **** | (35,043 | ) | (34,593 | ) | |
| Accumulated Other Comprehensive Loss, net of tax | **** | (3,349 | ) | (2,219 | ) | |
| TOTAL SHAREHOLDERS’ EQUITY | **** | 75,750 | **** | 90,282 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 145,595 | **** | $ | 133,251 |
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ASTRONOVA, INC.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
| Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|
| January 31, 2025 | January 31, 2024 | |||||
| Cash Flows from Operating Activities: | ||||||
| Net Income (Loss) | **** | (14,489 | ) | 4,694 | ||
| Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||||
| Depreciation and Amortization | **** | 4,780 | **** | 4,266 | ||
| Grant Income charged to Depreciation | **** | 159 | **** | — | ||
| Goodwill Impairment | **** | 13,403 | **** | — | ||
| Amortization of Debt Issuance Costs | **** | 30 | **** | 23 | ||
| Restructuring Cost | **** | — | **** | 2,040 | ||
| Share-Based Compensation | **** | 1,378 | **** | 1,347 | ||
| Deferred Income Tax provision (Benefit) | **** | 9 | **** | (78 | ) | |
| Changes in Assets and Liabilities, net of impact of acquisition: | ||||||
| Accounts Receivable | **** | 2,859 | **** | (1,486 | ) | |
| Inventories | **** | 1,616 | **** | 2,910 | ||
| Accounts Payable and Accrued Expenses | **** | (2,379 | ) | (46 | ) | |
| Deferred Revenue | **** | (1,520 | ) | — | ||
| Income Taxes | **** | (904 | ) | (343 | ) | |
| Other | **** | (94 | ) | (973 | ) | |
| Net Cash Provided by Operating Activities | **** | 4,848 | **** | 12,354 | ||
| Cash Flows from Investing Activities: | ||||||
| Purchases of Property, Plant and Equipment | **** | (1,165 | ) | (875 | ) | |
| Cash Paid for MTEX Acquisition, net of cash acquired | **** | (19,109 | ) | — | ||
| Net Cash Provided (Used) for Investing Activities | **** | (20,274 | ) | (875 | ) | |
| Cash Flows from Financing Activities: | ||||||
| Net Cash Proceeds from Employee Stock Option Plans | **** | 13 | **** | 105 | ||
| Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan | **** | 146 | **** | 107 | ||
| Net Cash Used for Payment of Taxes Related to Vested Restricted Stock | **** | (450 | ) | (358 | ) | |
| Net Borrowings under Revolving Credit Facility | **** | 11,508 | **** | (7,000 | ) | |
| Proceeds from Long-Term Debt Borrowings | **** | 15,078 | **** | — | ||
| Payment of Minimum Guarantee Royalty Obligation | **** | (1,902 | ) | (1,725 | ) | |
| Principal Payments of Long-Term Debt | **** | (8,980 | ) | (2,100 | ) | |
| Payments of Debt Issuance Costs | **** | (35 | ) | — | ||
| Net Cash Provided (Used) for Financing Activities | **** | 15,378 | **** | (10,971 | ) | |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | **** | 571 | **** | 73 | ||
| Net Increase in Cash and Cash Equivalents | **** | 523 | **** | 581 | ||
| Cash and Cash Equivalents, Beginning of Period | **** | 4,527 | **** | 3,946 | ||
| Cash and Cash Equivalents, End of Period | **** | 5,050 | **** | 4,527 | ||
| Supplemental Disclosures of Cash Flow Information: | ||||||
| Cash Paid During the Period for: | ||||||
| Cash Paid During the Period for Interest | 2,701 | 2,343 | ||||
| Cash Paid During the Period for Income Taxes, net of refunds | 2,210 | 1,694 | ||||
| Non-Cash Transactions: | ||||||
| Financed Equipment Purchase | — | 822 | ||||
| Capital Lease Obtained in Exchange for Capital Lease Liabilities | 1,581 | — |
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ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)
| Revenue | Segment OperatingProfit | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Three Months Ended | |||||||||
| January 31,2025 | January 31,<br>2024 | January 31,2025 | January 31,<br>2024 | |||||||
| Product Identification | $ | 25,679 | $ | 26,626 | $ | (11,174 | ) | $ | 3,239 | |
| Test & Measurement | **** | 11,683 | 12,968 | **** | 2,337 | **** | 3,652 | |||
| Total | $ | 37,361 | $ | 39,594 | **** | (8,837 | ) | 6,891 | ||
| General & Administrative Expenses | **** | 3,473 | **** | 2,976 | ||||||
| Operating Income (Loss) | **** | (12,311 | ) | 3,915 | ||||||
| Interest Expense | **** | 847 | **** | 779 | ||||||
| Other (Income)/Expense, net | **** | 100 | **** | (216 | ) | |||||
| Income (Loss) Before Income Taxes | **** | (13,258 | ) | 3,352 | ||||||
| Income Tax Provision | **** | 2,342 | **** | 641 | ||||||
| Net Income (Loss) | $ | (15,600 | ) | $ | 2,711 | |||||
| Revenue | Segment OperatingProfit | |||||||||
| Twelve Months Ended | Twelve Months Ended | |||||||||
| January 31,2025 | January 31,<br>2024 | January 31,2025 | January 31,<br>2024 | |||||||
| Product Identification | $ | 102,345 | $ | 104,041 | $ | (3,967 | ) | $ | 10,087 | |
| Test & Measurement | **** | 48,938 | 44,045 | **** | 11,143 | **** | 10,200 | |||
| Total | $ | 151,283 | $ | 148,086 | **** | 7,176 | **** | 20,287 | ||
| General & Administrative Expenses | **** | 15,816 | **** | 11,491 | ||||||
| Operating Income (Loss) | **** | (8,640 | ) | 8,796 | ||||||
| Interest Expense | **** | 3,210 | **** | 2,697 | ||||||
| Other (Income)/Expense, net | **** | 437 | **** | 26 | ||||||
| Income (Loss) Before Income Taxes | **** | (12,287 | ) | 6,073 | ||||||
| Income Tax Provision | **** | 2,202 | **** | 1,379 | ||||||
| Net Income (Loss) | $ | (14,489 | ) | $ | 4,694 |
Note: Segment Operating Profit excludes General & Administrative Expenses
10
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items
In Thousands Except for Per Share Data
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| January 31,2025 | January 31,<br>2024 | |||||
| Gross Profit | $ | 12,737 | $ | 14,746 | ||
| Inventory Step-Up | 62 | **** | — | **** | ||
| Restructuring Charges, net | — | (32 | ) | |||
| Product Retrofit Costs, net | — | (210 | ) | |||
| Non-GAAP Gross Profit | $ | 12,799 | $ | 14,504 | ||
| Operating Expenses | $ | 25,048 | $ | 10,831 | ||
| MTEX-related Acquisition Expenses | (254 | ) | 0 | |||
| Restructuring Charges, net | — | 43 | ||||
| Goodwill Impairment | (13,403 | ) | **** | — | **** | |
| Non-GAAP Operating Expenses | $ | 11,392 | $ | 10,874 | ||
| Operating Income (Loss) | $ | (12,311 | ) | $ | 3,915 | |
| MTEX-related Acquisition Expenses | 254 | (0 | ) | |||
| Inventory Step-Up | 62 | — | ||||
| Restructuring Charges, net | — | (75 | ) | |||
| Product Retrofit Costs, net | — | (210 | ) | |||
| Goodwill Impairment | 13,403 | — | ||||
| Non-GAAP Operating Income | $ | 1,408 | $ | 3,630 | ||
| Net Income (Loss) | $ | (15,600 | ) | $ | 2,711 | |
| MTEX-related Acquisition Expenses, net | 197 | (0 | ) | |||
| CFO Transition Costs, net | (4 | ) | ||||
| Inventory Step-Up, net | 50 | — | ||||
| Restructuring Charges, net | — | (58 | ) | |||
| Product Retrofit Costs, net | — | (162 | ) | |||
| Goodwill Impairment | 13,403 | — | ||||
| Tax Provision Valuation Allowance | 2,373 | |||||
| Non-GAAP Net Income | $ | 419 | $ | 2,491 | ||
| Diluted Earnings Per Share | $ | (2.07 | ) | $ | 0.36 | |
| MTEX-related Acquisition Expenses | 0.03 | (0.00 | ) | |||
| CFO Transition Costs, net | (0.00 | ) | — | |||
| Inventory Step-Up | 0.01 | — | ||||
| Restructuring Charges, net | — | (0.01 | ) | |||
| Product Retrofit Costs, net | — | (0.02 | ) | |||
| Goodwill Impairment | 1.78 | — | ||||
| Tax Provision Valuation Allowance | 0.31 | — | ||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.06 | $ | 0.33 | ||
| Twelve Months Ended | ||||||
| January 31,2025 | January 31,<br>2024 | |||||
| Gross Profit | $ | 52,749 | $ | 51,621 | ||
| Inventory Step-Up | 216 | — | ||||
| Restructuring Charges | — | 2,064 | ||||
| Product Retrofit Costs | — | 642 | ||||
| Non-GAAP Gross Profit | $ | 52,966 | $ | 54,327 | ||
| Operating Expenses | $ | 61,389 | $ | 42,825 | ||
| MTEX-related Acquisition Expenses | (1,204 | ) | 0 | |||
| CFO Transition Costs | (432 | ) | ||||
| Restructuring Charges | — | (512 | ) | |||
| Goodwill Impairment | (13,403 | ) | — | |||
| Non-GAAP Operating Expenses | $ | 46,350 | $ | 42,313 | ||
| Operating Income (Loss) | $ | (8,640 | ) | $ | 8,796 | |
| MTEX-related Acquisition Expenses | 1,204 | (0 | ) | |||
| CFO Transition Costs | 432 | |||||
| Inventory Step-Up | 216 | — | ||||
| Restructuring Charges | — | 2,576 | ||||
| Product Retrofit Costs | — | 642 | ||||
| Goodwill Impairment | 13,403 | — | ||||
| Non-GAAP Operating Income | $ | 6,615 | $ | 12,014 | ||
| Net Income (Loss) | $ | (14,489 | ) | $ | 4,694 | |
| MTEX-related Acquisition Expenses, net | 910 | (0 | ) | |||
| CFO Transition Costs, net | 328 | — | ||||
| Inventory Step-Up, net | 161 | — | ||||
| Restructuring Charges, net | — | 1,990 | ||||
| Product Retrofit Costs, net | — | 496 | ||||
| Goodwill Impairment | 13,403 | — | ||||
| Tax Provision | 2,373 | |||||
| Non-GAAP Net Income | $ | 2,686 | $ | 7,180 | ||
| Diluted Earnings Per Share | $ | (1.93 | ) | $ | 0.63 | |
| MTEX-related Acquisition Expenses | 0.12 | (0.00 | ) | |||
| CFO Transition Costs | 0.04 | — | ||||
| Inventory Step-Up | 0.02 | — | ||||
| Restructuring Charges | — | 0.27 | ||||
| Product Retrofit Costs | — | 0.07 | ||||
| Goodwill Impairment | 1.76 | — | ||||
| Tax Provision Valuation Allowance | 0.31 | — | ||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.33 | $ | 0.97 |
11
ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA
Amounts In Thousands
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| January 31, 2025 | January 31, 2024 | |||||
| Net Income (Loss) | $ | (15,600 | ) | $ | 2,711 | |
| Interest Expense | **** | 847 | **** | 779 | ||
| Income Tax Expense | **** | 2,342 | **** | 641 | ||
| Depreciation & Amortization | **** | 1,266 | **** | 1,108 | ||
| EBITDA | $ | (11,146 | ) | $ | 5,239 | |
| Share-Based Compensation | **** | 219 | **** | 282 | ||
| MTEX-related Acquisition Expenses | **** | 259 | **** | — | ||
| CFO Transition Costs | **** | (5 | ) | — | ||
| Inventory Step-Up | **** | 62 | **** | — | ||
| Goodwill Impairment | **** | 13,403 | **** | — | ||
| Restructuring Charges | **** | — | **** | (75 | ) | |
| Product Retrofit Costs | **** | — | **** | (210 | ) | |
| Adjusted EBITDA | $ | 2,793 | **** | $ | 5,236 | |
| Twelve Months Ended | ||||||
| January 31, 2025 | January 31, 2024 | |||||
| Net Income (Loss) | $ | (14,489 | ) | $ | 4,694 | |
| Interest Expense | **** | 3,210 | **** | 2,697 | ||
| Income Tax Expense (Benefit) | **** | 2,202 | **** | 1,379 | ||
| Depreciation & Amortization | **** | 4,780 | **** | 4,266 | ||
| EBITDA | $ | (4,297 | ) | $ | 13,036 | |
| Share-Based Compensation | **** | 1,378 | **** | 1,347 | ||
| MTEX-related Acquisition Expenses | **** | 1,204 | **** | — | ||
| CFO Transition Costs | **** | 432 | **** | — | ||
| Inventory Step-Up | **** | 216 | **** | — | ||
| Goodwill Impairment | **** | 13,403 | **** | — | ||
| Restructuring Charges | **** | — | **** | 2,576 | ||
| Product Retrofit Costs | **** | — | **** | 642 | ||
| Adjusted EBITDA | $ | 12,336 | **** | $ | 17,601 |
12
ASTRONOVA, INC.
Reconciliation of Segment Operating Income to Non-GAAP Segment Operating Income
Amounts In Thousands
(Unaudited)
| Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| January 31, 2025 | January 31, 2024 | |||||||||||||||
| ProductIdentification | Test &Measurement | Total | Product<br>Identification | Test &<br>Measurement | Total | |||||||||||
| Segment Operating Profit (Loss) | $ | (11,174 | ) | $ | 2,337 | $ | (8,837 | ) | $ | 3,239 | $ | 3,652 | $ | 6,891 | ||
| Inventory Step-Up | **** | 62 | **** | **** | — | **** | 62 | **** | — | — | — | |||||
| Restructuring Charges | **** | — | **** | **** | — | **** | — | **** | (75 | ) | — | (75 | ) | |||
| Product Retrofit Costs | **** | — | **** | **** | — | **** | — | **** | (210 | ) | — | (210 | ) | |||
| Goodwill Impairment | **** | 13,403 | **** | **** | — | **** | 13,403 | **** | — | — | — | |||||
| Non-GAAP - Segment Operating Profit | $ | 2,291 | **** | $ | 2,337 | $ | 4,628 | **** | $ | 2,954 | $ | 3,652 | $ | 6,606 | ||
| Twelve Months Ended | ||||||||||||||||
| January 31, 2025 | January 31, 2024 | |||||||||||||||
| ProductIdentification | Test &Measurement | Total | Product<br>Identification | Test &<br>Measurement | Total | |||||||||||
| Segment Operating Profit (Loss) | $ | (3,967 | ) | $ | 11,143 | $ | 7,176 | **** | $ | 10,087 | $ | 10,200 | $ | 20,287 | ||
| Inventory Step-Up | **** | 216 | **** | **** | — | **** | 216 | **** | — | — | — | |||||
| Restructuring Charges | **** | — | **** | **** | — | **** | — | **** | 2,494 | — | 2,494 | |||||
| Product Retrofit Costs | **** | — | **** | **** | — | **** | — | **** | 642 | — | 642 | |||||
| Goodwill Impairment | **** | 13,403 | **** | **** | — | **** | 13,403 | **** | — | — | — | |||||
| Non-GAAP - Segment Operating Profit | $ | 9,652 | **** | $ | 11,143 | $ | 20,795 | **** | $ | 13,223 | $ | 10,200 | $ | 23,423 |
Note: Segment Operating Profit excludes General & Administrative Expenses
13
ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Items for PI Segment
Amounts In Thousands
(Unaudited)
| Three Months Ended January 31, 2025 | Three Months Ended January 31, 2024 | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total PI<br>Segment as<br>Reported | MTEX as<br>Reported | Inventory<br>Step-Up | Goodwill<br>Impairment | Adj MTEX<br>(Non-GAAP) | PI Excluding MTEX<br>(Non-GAAP) | Total PI<br>Segment as<br>Reported | Restructuring<br>Charges | Product<br>Retrofit<br>Costs | PI<br>(Non-GAAP) | ||||||||||||||||||
| Net Revenue | $ | 25,679 | $ | 1,657 | $ | 1,657 | $ | 24,022 | $ | 26,626 | $ | 26,626 | |||||||||||||||
| Cost of Revenue | 17,108 | 1,313 | (62 | ) | 1,251 | 15,857 | 17,215 | 75 | 210 | 17,500 | |||||||||||||||||
| Gross Profit | 8,571 | 344 | 62 | — | 406 | 8,165 | 9,411 | (75 | ) | (210 | ) | 9,126 | |||||||||||||||
| Selling & Marketing | 5,439 | 653 | 653 | 4,785 | 5,121 | 5,121 | |||||||||||||||||||||
| Research & Development | 904 | 198 | 198 | 706 | 1,051 | 1,051 | |||||||||||||||||||||
| Goodwill Impairment | 13,403 | 13,403 | (13,403 | ) | — | — | — | — | |||||||||||||||||||
| Operating Expenses | 19,746 | 14,254 | — | (13,403 | ) | 851 | 5,491 | 6,172 | — | — | 6,172 | ||||||||||||||||
| Segment Operating Profit (Loss) | $ | (11,175 | ) | $ | (13,910 | ) | $ | 62 | $ | 13,403 | $ | (445 | ) | $ | 2,674 | $ | 3,239 | $ | (75 | ) | $ | (210 | ) | $ | 2,954 | ||
| Twelve Months Ended January 31, 2025 | Twelve Months Ended January 31, 2024 | ||||||||||||||||||||||||||
| Total PI<br>Segment as<br>Reported | MTEX as<br>Reported | Inventory<br>Step-Up | Goodwill<br>Impairment | Adj MTEX<br>(Non-GAAP) | PI Excluding MTEX<br>(Non-GAAP) | Total PI<br>Segment as<br>Reported | Restructuring<br>Charges | Product<br>Retrofit<br>Costs | PI<br>(Non-GAAP) | ||||||||||||||||||
| Net Revenue | $ | 102,345 | $ | 4,163 | $ | 4,163 | $ | 98,182 | $ | 104,041 | $ | 104,041 | |||||||||||||||
| Cost of Revenue | 68,420 | 3,652 | (216 | ) | 3,436 | 64,984 | 69,064 | (2,494 | ) | (642 | ) | 65,928 | |||||||||||||||
| Gross Profit | 33,925 | 511 | 216 | — | 727 | 33,198 | 34,977 | 2,494 | 642 | 38,113 | |||||||||||||||||
| Selling & Marketing | 21,386 | 2,485 | 2,485 | 18,901 | 20,601 | — | 20,601 | ||||||||||||||||||||
| Research & Development | 3,104 | 309 | 309 | 2,795 | 4,289 | — | 4,289 | ||||||||||||||||||||
| Goodwill Impairment | 13,403 | 13,403 | (13,403 | ) | — | — | 0 | — | 0 | ||||||||||||||||||
| Operating Expenses | 37,892 | 16,197 | — | (13,403 | ) | 2,794 | 21,696 | 24,890 | — | — | 24,890 | ||||||||||||||||
| Segment Operating Profit (Loss) | $ | (3,967 | ) | $ | (15,686 | ) | $ | 216 | $ | 13,403 | $ | (2,067 | ) | $ | 11,502 | $ | 10,087 | $ | 2,494 | $ | 642 | $ | 13,223 |
Note: Segment Operating Profit excludes General & Administrative Expenses. MTEX General & Administrative Expenses of $411,000 for the three months ended January 31, 2025 and $1,194,000 for the twelve months ended January 31, 2025 results in an MTEX Operating Profit (net of $13,403,000 Goodwill Impairment) of $995,000 for the three months ended January 31, 2025 and $3,478,000 for the twelve months ended January 31, 2025.
14