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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
of incorporation)
  (Commission
File Number)
  (I.R.S. Employer
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
Symbol(s)

 

Name of Each Exchange
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
No.

  

Exhibit

99.1    Press Release dated December 12, 2024
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2


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 2 d901239dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO    

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%

 

   

GAAP operating margin of 3.1%; non-GAAP operating margin of 4.0%

 

   

GAAP net income of $0.03 per diluted share; non-GAAP net income of $0.06 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 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.

 

1


“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.

 

2


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.

 

3


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

 

4


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,
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,
2023
     November 2,
2024
     October 28,
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,
2023
     November 2,
2024
     October 28,
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,
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,
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  
     Product
Identification
     November 2, 2024
Test &
Measurement
     Total      Product
Identification
     October 28, 2023
Test &
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  
     Product
Identification
     November 2, 2024
Test &
Measurement
     Total      Product
Identification
     October 28, 2023
Test &
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 PI
Segment as
Reported
     MTEX as
Reported
    Inventory
Step-Up
    Adj MTEX
(Non-GAAP)
    PI
Excluding
MTEX
(Non-GAAP)
          Total PI
Segment as
Reported
     Restructuring
Charges
    Product
Retrofit
Costs
    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 PI
Segment as
Reported
     MTEX as
Reported
    Inventory
Step-Up
    Adj MTEX
(Non-GAAP)
    PI
Excluding
MTEX
(Non-GAAP)
          Total PI
Segment as
Reported
     Restructuring
Charges
    Product
Retrofit
Costs
    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.