AstroNova Announces Financial Results for the Third Quarter of Fiscal 2019
Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share
Third-Quarter Fiscal 2019 Achievements (all comparisons with third-quarter fiscal 2018)
- Revenue of $34.2 million, up 18.9 percent
- Operating income of $2.4 million, up 44.7 percent
- Operating margin of 6.9 percent, up 120 basis points
- Diluted EPS of $0.20 per share, down 4.8 percent
- Bookings of $34.2 million, up 9.7 percent
- Backlog of $24.5 million at October 27, 2018, up 15.1 percent
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the
fiscal 2019 third quarter ended October 27, 2018.
“Record revenue in the quarter with continued double-digit increases in revenue and operating income highlighted a solid third
quarter of financial results for AstroNova,” said President and CEO Greg Woods. “We are encouraged with the continuous growth in
both our segments with the Test & Measurement segment posting 51 percent revenue growth year-over-year reflecting the growth of
our new data acquisition products and accelerated performance in our Aerospace business from the acquired Honeywell printer line in
last year’s third quarter.
“The Product Identification segment reported growth year-over-year with new products such as the QuickLabel QL-120 and the
TrojanLabel T2-C generating strong momentum,” Woods said. “As evidenced by the strong lead-generation and on-site sales we
experienced during the recent Labelexpo Americas 2018 and PACK EXPO International trade shows, our new QuickLabel and TrojanLabel
products are attracting brand owners as well as commercial printer customers across a wide range of industries.”
Revenue through domestic channels for the third quarter of fiscal 2019 was $21.5 million, an increase of 18.9 percent compared
with the same period in fiscal 2018. International revenue was $12.7 million in the third quarter, up 18.9 percent
year-over-year.
Recent Highlights
- AstroNova on Tuesday announced the appointment of Jean A. Bua, Executive Vice President and Chief
Financial Officer of NETSCOUT SYSTEMS, INC., to its Board of Directors as a new independent director, effective immediately. A
financial expert, Ms. Bua brings significant experience to the Board in the areas of accounting policy, internal controls and
risk management.
- AstroNova demonstrated innovative new tabletop and specialty printing solutions at Labelexpo
Americas. Featured products included the Kiaro! QL-120 color label printer and the Trojan T4, a compact digital label press and
finishing system that is ideal for small- to mid-sized commercial printers.
- The Company introduced a new solution at PACK EXPO International that enables its TrojanLabel presses
to digitally print food friendly, heat sealable, flexible packaging materials. The solution features novel ink and lamination
that allows users to seal in both horizontal and vertical form fill and seal machines using low temperatures for high speed
sealing.
Business Outlook
“We begin the fourth quarter of fiscal 2019 with good momentum,” Woods said. “We continue to expect the second half of the
fiscal year to outperform the first half, with gains in both Product Identification and Test & Measurement.”
Third-Quarter 2019 Operating Results
Total revenue was $34.2 million, an 18.9 percent increase over the prior year.
Gross profit was $13.9 million, or 40.7 percent of revenue, compared with $11.8 million, or 41.0 percent of revenue for the
prior year.
Operating expenses were $11.5 million compared with $10.2 million in the prior-year period, primarily reflecting the Honeywell
intangible amortization, costs associated with increased selling and marketing initiatives, and costs associated with the
integration of the Honeywell printer line into the West Warwick, Rhode Island manufacturing facility. As a percentage of revenue,
operating expenses decreased 150 basis points from the same period last year.
Operating income was $2.4 million, a 6.9 percent margin, compared with $1.6 million, a 5.7 percent margin, in the prior
year.
Net income was $1.4 million, or $0.20 per diluted share, compared with net income of $1.4 million, or $0.21 per diluted share,
in the prior year.
Bookings increased 9.7 percent to $34.2 million from $31.2 million in the third quarter of fiscal 2018.
Backlog at October 27, 2018 was $25.4 million, up 15.1 percent from $21.3 million at the end of the fiscal 2018 third
quarter.
Third-Quarter 2019 Operating Segment Results
The Product Identification segment generated revenue of $21.7 million, a 6.0 percent increase compared with $20.5 million
in the prior year, on higher sales of hardware and supplies. Segment operating income was $2.0 million, or 9.3 percent of revenue,
versus $2.7 million, or 13.0 percent of revenue, in the prior year, due primarily to higher costs associated with new product
development.
The Test & Measurement segment generated revenue of $12.5 million, a 50.7 percent increase from $8.3 million in the
prior year, primarily reflecting the impact of the Honeywell asset purchase and licensing agreement. Segment operating income was
$3.2 million, or 25.4 percent of revenue, versus $1.6 million, or 18.9 percent of revenue, in the prior year.
Hardware revenue was $13.1 million, a 39.4 percent increase from $9.4 million in the prior year. Supplies revenue was $18.1
million, a 9.0 percent increase from $16.6 million in the same period of fiscal 2018. Service/other revenue was $3.0 million, up
8.5 percent from the prior year.
Board Declares Quarterly Dividend
On November 19, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The
dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on December 21, 2018, to
shareholders of record on December 14, 2018.
Third-Quarter Fiscal 2019 Conference Call
AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial
(877) 260-1479 (U.S. and Canada) or (334) 323-0522 (International) approximately 10 minutes prior to the start time and enter
confirmation code 6597585.
You can hear a replay of the conference call from 12:00 Noon ET Wednesday, November 21 until 12:00 p.m. ET Wednesday, November
28 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 6597585. 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.
About AstroNova
AstroNova, Inc. (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 offers a variety of hardware and software products and associated supplies that allow customers to mark,
track and enhance the appearance of their products. The segment’s two business units are QuickLabel®, the industry leader in
tabletop digital color label printing and TrojanLabel®, an innovative leader for professional label presses and specialty printers.
The Test and Measurement segment includes the Test & Measurement business unit, which offers a suite of products and services
that acquire, record and analyze electronic signal data from local and networked sensors. The segment also includes the AstroNova
Aerospace business unit, which designs and manufactures avionics equipment and systems that serve the world’s aerospace and defense
industries with proven advanced airborne technology solutions for both the cockpit and the cabin. The key products include flight
deck printers, networking hardware and related accessories. AstroNova is a member of the Russell Microcap® Index and the LD Micro
Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting
www.astronovainc.com.
Forward-Looking Statements
Information included in this news release may contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current
expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,”
“intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions to identify forward-looking
statements. Such forward-looking statements, including those concerning the Company’s anticipated performance in the second half of
fiscal 2019, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual
results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.
These risks, uncertainties and factors include, but are not limited to, those factors set forth in the Company’s Annual Report on
Form 10-K for the fiscal year ended January 31, 2018 and subsequent filings AstroNova makes with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. The reader is cautioned not to unduly rely on such forward-looking statements when
evaluating the information presented in this news release.
|
|
|
|
|
|
|
|
|
| ASTRONOVA, INC. |
| Consolidated Statements of Income |
| In Thousands Except for Per Share Data |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
October 27, 2018 |
|
October 28, 2017 |
|
|
October 27, 2018 |
|
October 28, 2017 |
| Revenue |
|
$ |
34,196 |
|
|
$ |
28,760 |
|
|
|
$ |
99,490 |
|
|
$ |
80,701 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of Goods Sold |
|
|
20,288 |
|
|
|
16,966 |
|
|
|
|
60,073 |
|
|
|
49,342 |
|
| Gross Profit |
|
|
13,908 |
|
|
|
11,794 |
|
|
|
|
39,417 |
|
|
|
31,359 |
|
|
|
|
40.7 |
% |
|
|
41.0 |
% |
|
|
|
39.6 |
% |
|
|
38.9 |
% |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
| Selling & Marketing |
|
|
6,587 |
|
|
|
5,532 |
|
|
|
|
19,484 |
|
|
|
15,958 |
|
| Research & Development |
|
|
2,123 |
|
|
|
2,033 |
|
|
|
|
5,844 |
|
|
|
5,340 |
|
| General & Administrative |
|
|
2,836 |
|
|
|
2,597 |
|
|
|
|
8,298 |
|
|
|
6,780 |
|
|
|
|
11,546 |
|
|
|
10,162 |
|
|
|
|
33,626 |
|
|
|
28,078 |
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
|
|
2,362 |
|
|
|
1,632 |
|
|
|
|
5,791 |
|
|
|
3,281 |
|
|
|
|
6.9 |
% |
|
|
5.7 |
% |
|
|
|
5.8 |
% |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense), Net |
|
|
(538 |
) |
|
|
(12 |
) |
|
|
|
(1,320 |
) |
|
|
(45 |
) |
| Income Before Taxes |
|
|
1,824 |
|
|
|
1,620 |
|
|
|
|
4,471 |
|
|
|
3,236 |
|
| Income Tax Provision |
|
|
407 |
|
|
|
201 |
|
|
|
|
1,046 |
|
|
|
579 |
|
|
|
|
|
|
|
|
|
|
|
| Net Income |
|
$ |
1,417 |
|
|
$ |
1,419 |
|
|
|
$ |
3,425 |
|
|
$ |
2,657 |
|
|
|
|
|
|
|
|
|
|
|
| Net Income per Common Share - Basic |
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
$ |
0.50 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
| Net Income per Common Share - Diluted |
|
$ |
0.20 |
|
|
$ |
0.21 |
|
|
|
$ |
0.49 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Number of Common Shares - Basic |
|
|
6,925 |
|
|
|
6,725 |
|
|
|
|
6,858 |
|
|
|
6,968 |
|
| Weighted Average Number of Common Shares - Diluted |
|
|
7,167 |
|
|
|
6,821 |
|
|
|
|
7,056 |
|
|
|
7,078 |
|
|
|
|
|
|
|
|
|
|
|
| Dividends Declared Per Common Share |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Balance Sheet Data |
| Amounts In Thousands |
| (Unaudited) |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
October 27, 2018 |
|
|
January 31, 2018 |
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
| CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
| Cash and Cash Equivalents |
|
|
$ |
|
7,816 |
|
|
$ |
|
10,177 |
|
|
|
| Securities Available for Sale |
|
|
|
|
- |
|
|
|
|
1,511 |
|
|
|
| Accounts Receivable, net |
|
|
|
|
21,717 |
|
|
|
|
22,400 |
|
|
|
| Inventory, net |
|
|
|
|
28,330 |
|
|
|
|
27,609 |
|
|
|
| Prepaid Expenses and Other Current Assets |
|
|
|
|
2,014 |
|
|
|
|
1,251 |
|
|
|
| Total Current Assets |
|
|
|
|
59,877 |
|
|
|
|
62,948 |
|
|
|
| PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
44,568 |
|
|
|
|
42,877 |
|
|
|
| Less Accumulated Depreciation |
|
|
|
|
(34,459 |
) |
|
|
|
(33,125 |
) |
|
|
| Property, Plant and Equipment, net |
|
|
|
|
10,109 |
|
|
|
|
9,752 |
|
|
|
| OTHER ASSETS |
|
|
|
|
|
|
|
|
|
| Intangible Assets, net |
|
|
|
|
30,685 |
|
|
|
|
33,633 |
|
|
|
| Goodwill |
|
|
|
|
12,283 |
|
|
|
|
13,004 |
|
|
|
| Deferred Tax Assets |
|
|
|
|
1,827 |
|
|
|
|
1,829 |
|
|
|
| Other Assets |
|
|
|
|
1,275 |
|
|
|
|
1,147 |
|
|
|
| Total Other Assets |
|
|
|
|
46,070 |
|
|
|
|
49,613 |
|
|
|
| TOTAL ASSETS |
|
|
$ |
|
116,056 |
|
|
$ |
|
122,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
$ |
|
5,355 |
|
|
$ |
|
11,808 |
|
|
|
| Accrued Compensation |
|
|
|
|
3,853 |
|
|
|
|
2,901 |
|
|
|
| Other Liabilities and Accrued Expenses |
|
|
|
|
2,697 |
|
|
|
|
2,414 |
|
|
|
| Current Portion of Long-Term Debt |
|
|
|
|
5,116 |
|
|
|
|
5,498 |
|
|
|
|
Current Liability - Royalty Obligation
|
|
|
|
|
1,750 |
|
|
|
|
1,625 |
|
|
|
| Line of Credit |
|
|
|
|
1,500 |
|
|
|
|
- |
|
|
|
|
Current Liability - Excess Royalty Payment Due
|
|
|
|
|
1,246 |
|
|
|
|
615 |
|
|
|
| Income Taxes Payable |
|
|
|
|
- |
|
|
|
|
684 |
|
|
|
| Deferred Revenue |
|
|
|
|
374 |
|
|
|
|
367 |
|
|
|
|
Total Current Liabilities
|
|
|
|
|
21,891 |
|
|
|
|
25,912 |
|
|
|
| NON CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
| Long-Term Debt, net of current portion |
|
|
|
|
14,068 |
|
|
|
|
17,648 |
|
|
|
| Royalty Obligation, net of current portion |
|
|
|
|
10,408 |
|
|
|
|
11,760 |
|
|
|
| Deferred Tax Liabilities |
|
|
|
|
614 |
|
|
|
|
698 |
|
|
|
| Other Liabilities |
|
|
|
|
1,667 |
|
|
|
|
2,648 |
|
|
|
| TOTAL LIABILITIES |
|
|
|
|
48,648 |
|
|
|
|
58,666 |
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
|
|
510 |
|
|
|
|
500 |
|
|
|
| Additional Paid-In Capital |
|
|
|
|
52,949 |
|
|
|
|
50,016 |
|
|
|
| Retained Earnings |
|
|
|
|
47,692 |
|
|
|
|
45,700 |
|
|
|
| Treasury Stock |
|
|
|
|
(32,960 |
) |
|
|
|
(32,397 |
) |
|
|
| Accumulated Other Comprehensive Income |
|
|
|
|
(783 |
) |
|
|
|
(172 |
) |
|
|
| TOTAL SHAREHOLDERS' EQUITY |
|
|
|
|
67,408 |
|
|
|
|
63,647 |
|
|
|
| TOTAL LIABILITY AND SHAREHOLDERS' EQUITY |
|
|
$ |
|
116,056 |
|
|
$ |
|
122,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASTRONOVA, INC. |
| Revenue and Segment Operating Profit |
| In Thousands |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Revenue |
|
Segment Operating Profit |
|
Revenue |
|
Segment Operating Profit |
| |
|
October 27, 2018 |
|
October 28, 2017 |
|
October 27, 2018 |
|
October 28, 2017 |
|
October 27, 2018 |
|
October 28, 2017 |
|
October 27, 2018 |
|
October 28, 2017 |
| Product Identification |
|
$ |
21,684 |
|
$ |
20,458 |
|
$ |
2,014 |
|
|
$ |
2,657 |
|
|
$ |
63,407 |
|
$ |
59,945 |
|
$ |
5,833 |
|
|
$ |
7,761 |
|
| T&M |
|
|
12,512 |
|
|
8,302 |
|
|
3,184 |
|
|
|
1,572 |
|
|
|
36,083 |
|
|
20,756 |
|
|
8,256 |
|
|
|
2,300 |
|
| Total |
|
$ |
34,196 |
|
$ |
28,760 |
|
|
5,198 |
|
|
|
4,229 |
|
|
$ |
99,490 |
|
$ |
80,701 |
|
|
14,089 |
|
|
|
10,061 |
|
| Corporate Expenses |
|
|
|
|
|
|
2,836 |
|
|
|
2,597 |
|
|
|
|
|
|
|
8,298 |
|
|
|
6,780 |
|
| Operating Income |
|
|
|
|
|
|
2,362 |
|
|
|
1,632 |
|
|
|
|
|
|
|
5,791 |
|
|
|
3,281 |
|
| Other Expense-Net |
|
|
|
|
|
|
(538 |
) |
|
|
(12 |
) |
|
|
|
|
|
|
(1,320 |
) |
|
|
(45 |
) |
| Income Before Income Taxes |
|
|
|
|
|
|
1,824 |
|
|
|
1,620 |
|
|
|
|
|
|
|
4,471 |
|
|
|
3,236 |
|
| Income Tax Provision |
|
|
|
|
|
|
407 |
|
|
|
201 |
|
|
|
|
|
|
|
1,046 |
|
|
|
579 |
|
| Net Income |
|
|
|
|
|
$ |
1,417 |
|
|
$ |
1,419 |
|
|
|
|
|
|
$ |
3,425 |
|
|
$ |
2,657 |
|
Scott Solomon
Senior Vice President
Sharon Merrill Associates
(617) 542-5300
ALOT@investorrelations.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20181121005259/en/