AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today reported financial results for the fiscal 2024 fourth quarter and full year ended January 31, 2024.

CEO Commentary

“We capped a year of solid growth in fiscal 2024 with a strong fourth quarter that highlighted our strategic focus on enhancing margins and maintaining disciplined cost management, while continuing to invest for the future,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “Our fourth-quarter operating income of $3.9 million joined our third quarter as the two best quarters in our history, and reflected contributions from both our Product Identification (PI) and Test & Measurement (T&M) segments.

“T&M generated a 28% segment operating profit for the quarter on 10% top-line growth, driven primarily by the continued momentum of our Aerospace product line. The rebound in airline passenger traffic toward pre-pandemic levels, the increasing number of daily flights and favorable commercial aircraft order and delivery trends provide a favorable growth runway for our business. The data acquisition product line within our T&M segment also performed well in the quarter.

“Our PI segment delivered strong year-over-year margin improvement in the quarter. Segment operating profit increased a healthy 560 basis points from the fourth quarter of fiscal 2023, in part reflecting the success of the strategic realignment announced last summer,” Woods said. “Additionally, at the end of the quarter we completed the previously discussed retrofit program of certain PI printers affected by faulty ink provided by one of our larger suppliers. On the innovation front, our PI development teams recently launched new digital printers and accessories under both our flagship QuickLabel and TrojanLabel brands.

“Looking ahead, we see several growth opportunities for our business,” Woods said. “We are focused on applying the tools of the AstroNova Operating System to drive sustained product innovation, operating efficiencies and margin improvement. Our fiscal 2025 financial targets and outlook, which we are introducing today, reflect both confidence in the dynamics that are driving demand across our end markets and our commitment to continuing the margin improvement programs that we kicked off in FY24.”

FY 2025 Financial Targets and Outlook

For fiscal 2025, AstroNova expects to achieve full-year organic revenue percentage growth in the mid-single digits. Additionally, as AstroNova continues to drive operational improvements throughout the business, the Company expects its full-year adjusted EBITDA margin to be 13% to 14% this year and further improve by 100 basis points per year over the following two fiscal years.

Q4 FY 2024 Financial Results

 

GAAP

 

Non-GAAP

($ in thousands, except per share data)

Q4 FY 2024

Q4 FY 2023

YoY

Q4 FY 2024

Q4 FY 2023

YoY

 

 

 

 

 

 

 

 

Revenue

$39,594

$39,853

(1%)

 

 

 

 

Gross Profit

$14,746

$13,562

9%

 

$14,504

$13,562

9%

Gross Margin

37.2%

34.0%

320 pts.

 

36.6%

34.0%

260 pts.

Operating Expenses

$10,831

$11,465

(6%)

 

$10,874

$11,465

(5%)

Operating Income

$3,915

$2,097

87%

 

$3,630

$2,097

73%

Operating Margin

9.9%

5.3%

460 pts.

 

9.2%

5.3%

390 pts.

Net Income

$2,711

$1,363

99%

 

$2,491

$1,363

83%

Net Income per Common Share

$0.36

$0.18

100%

 

$0.33

$0.18

83%

Adjusted EBITDA

 

 

 

 

$5,521

$3,930

40%

Adjusted EBITDA Less Restructuring & Retrofit-Related Items

 

 

 

 

$5,236

$3,930

33%

Full reconciliations between GAAP and Non-GAAP items are provided below.

FY 2024 Financial Results

 

GAAP

 

Non-GAAP

($ in thousands, except per share data)

FY 2024

FY 2023

YoY

FY 2024

FY 2023

YoY

 

 

 

 

 

 

 

 

Revenue

$148,086

$142,527

4%

 

 

 

 

Gross Profit

$51,621

$48,156

7%

 

$54,327

$48,156

13%

Gross Margin

34.9%

33.8%

330 pts.

 

36.7%

33.8%

290 pts.

Operating Expenses

$42,825

$42,713

0%

 

$42,313

$41,996

1%

Operating Income

$8,796

$5,443

62%

 

$12,014

$6,160

95%

Operating Margin

5.9%

3.8%

210 pts.

 

8.1%

4.3%

380 pts.

Net Income

$4,694

$2,661

76%

 

$7,180

$3,201

124%

Net Income per Common Share

$0.63

$0.36

75%

 

$0.97

$0.43

126%

Adjusted EBITDA

 

 

 

 

$14,383

$10,294

40%

Adjusted EBITDA Less Restructuring & Retrofit-Related Items

 

 

 

 

$17,601

$11,010

60%

Full reconciliations between GAAP and Non-GAAP items are provided below.

Revenue by Type

($ in thousands)

 

Q4 FY 2024

Q4 FY 2023

YoY

 

FY 2024

FY 2023

YoY

Hardware

 

$13,640

$12,561

9%

 

$49,440

$42,445

17%

Supplies

 

$20,507

$22,016

(7%)

 

$79,252

$82,072

(3%)

Service/Other

 

$5,446

$5,277

3%

 

$19,394

$18,010

8%

Adjusted EBITDA was $5.5 million in the fourth quarter of fiscal 2024 versus $3.9 million in the year earlier period. Further adjusted to exclude restructuring and retrofit-related items, Adjusted EBITDA was $5.2 million in the 2024 period. For the full year, Adjusted EBITDA was $14.4 million compared with $10.3 million in the comparable period of fiscal 2023. Further adjusted to exclude restructuring and retrofit-related items, Adjusted EBITDA was $17.6 million in fiscal 2024 compared with $11.0 million in fiscal 2023.

Bookings in the fourth quarter of fiscal 2024 were $39.8 million, compared with $36.3 million in the fourth quarter of fiscal 2023, reflecting an increase in orders for both segments. Bookings were $143.7 million in fiscal 2024, compared with $138.6 million in fiscal 2023.

Backlog as of January 31, 2024 was $31.4 million versus $35.8 million at the end of fiscal 2023.

Segment Results

Product Identification

Product Identification (PI) segment revenue was $26.6 million in the fourth quarter of fiscal 2024, compared with $28.1 million in the fiscal 2023 fourth quarter. Segment operating profit was $3.2 million, or 12.2% of segment revenue, compared with segment operating profit of $1.9 million, or 6.6% of segment revenue, in the fourth quarter of fiscal 2023, reflecting more favorable mix in the 2024 period.

For fiscal full-year 2024, Product Identification revenue increased to $104.0 million from $103.1 million for fiscal full-year 2023. Segment operating profit was $10.1 million, or 9.7% of segment revenue, in fiscal 2024 compared with segment operating profit of $7.9 million, or 7.7% of segment revenue, in fiscal 2023.

Test & Measurement

Test & Measurement (T&M) segment revenue increased to $13.0 million in the fourth quarter of fiscal 2024 from $11.7 million in the fourth quarter of fiscal 2023, primarily as a result of favorable pricing actions and the continued recovery of the commercial aviation market. Segment operating profit was $3.7 million, or 28.2% of segment revenue, compared with segment operating profit of $3.2 million, or 27.3% of segment revenue, in the fourth quarter of fiscal 2023, reflecting higher revenues, increased manufacturing efficiencies and favorable pricing actions.

For fiscal full-year 2024, Test & Measurement revenue was $44.0 million, compared with $39.4 million in fiscal full-year 2023. Segment operating profit was $10.2 million, or 23.2% of segment revenue, in fiscal 2024, compared with $9.0 million, or 22.8% of segment revenue, in fiscal 2023.

Earnings Conference Call Information

AstroNova will discuss its fourth-quarter and full-year fiscal 2024 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 966245. 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 Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per common share.

We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation and acquisition-related costs. We define non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per common share, as the respective GAAP measure, excluding the impact of acquisition-related costs and restructuring and retrofit-related items.

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 tables included in this news release for a reconciliation of GAAP measures to the most directly comparable non-GAAP measures for the three and 12 months ended January 31, 2024 and January 31, 2023.

AstroNova has not reconciled the forward-looking Adjusted EBITDA growth percentage included in its 2025 financial targets and outlook to the most directly comparable forward-looking GAAP measure because this cannot be done without unreasonable effort due to the lack of predictability regarding cost of sales, operating expenses, depreciation and amortization, and stock-based compensation. The impact of any of these items, individually or in the aggregate, may be significant.

About AstroNova

AstroNova (Nasdaq: ALOT), a global leader in data visualization technologies since 1969, designs, manufactures, distributes, and services a broad range of products that acquire, store, analyze, and present data in multiple formats.

The Product Identification segment provides a wide array of digital, end-to-end product marking and identification solutions, including hardware, software, and supplies for OEMs, commercial printers, and brand owners. The Test and Measurement segment provides products designed for airborne printing solutions, avionics, and data acquisition. Our aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. Our data acquisition systems are used in research and development, flight testing, missile and rocket telemetry production monitoring, power, and maintenance applications.

AstroNova is a member of the Russell Microcap® Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting https://astronovainc.com/.

Forward-Looking Statements

Information included in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning the Company’s anticipated performance, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, (i) the risk that we may not be able to realize the expected synergies from our acquisition of Astro Machine, (ii) the risk that apparent improvements in the Aerospace and Defense sectors may not continue and (iii) those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 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.
Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data
(Unaudited)
 
Three Months Ended Twelve Months
January 31,
2024		January 31,
2023		January 31,
2024		January 31,
2023
Net Revenue

$

39,594

 

$

39,853

 

$

148,086

 

$

142,527

 

Cost of Revenue

 

24,848

 

 

26,291

 

 

96,465

 

 

94,371

 

Gross Profit

 

14,746

 

 

13,562

 

 

51,621

 

 

48,156

 

Total Gross Profit Margin

 

37.2

%

 

34.0

%

 

34.9

%

 

33.8

%

Operating Expenses:
Selling & Marketing

 

5,977

 

 

6,686

 

 

24,428

 

 

24,456

 

Research & Development

 

1,878

 

 

1,801

 

 

6,906

 

 

6,822

 

General & Administrative

 

2,976

 

 

2,978

 

 

11,491

 

 

11,435

 

Total Operating Expenses

 

10,831

 

 

11,465

 

 

42,825

 

 

42,713

 

Operating Income

 

3,915

 

 

2,097

 

 

8,796

 

 

5,443

 

Total Operating Margin

 

9.9

%

 

5.3

%

 

5.9

%

 

3.8

%

Other Expense, net

 

563

 

 

367

 

 

2,723

 

 

2,033

 

Income Before Taxes

 

3,352

 

 

1,730

 

 

6,073

 

 

3,410

 

Income Tax Provision

 

641

 

 

367

 

 

1,379

 

 

749

 

Net Income

$

2,711

 

$

1,363

 

$

4,694

 

$

2,661

 

Net Income per Common Share - Basic

$

0.36

 

$

0.19

 

$

0.63

 

$

0.36

 

Net Income per Common Share - Diluted

$

0.36

 

$

0.18

 

$

0.63

 

$

0.36

 

 
Weighted Average Number of Common Shares - Basic

 

7,438

 

 

7,330

 

 

7,415

 

 

7,307

 

Weighted Average Number of Common Shares - Diluted

 

7,550

 

 

7,406

 

 

7,496

 

 

7,374

 

ASTRONOVA, INC.
Consolidated Balance Sheets
In Thousands
(Unaudited)
 
January 31,
2024		January 31,
2023
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents

$

4,527

 

$

3,946

 

Accounts Receivable, net

 

23,056

 

 

21,598

 

Inventories, net

 

46,371

 

 

51,324

 

Prepaid Expenses and Other Current Assets

 

2,606

 

 

2,894

 

Total Current Assets

 

76,560

 

 

79,762

 

PROPERTY, PLANT AND EQUIPMENT

 

57,046

 

 

55,394

 

Less Accumulated Depreciation

 

(42,861

)

 

(41,106

)

Property, Plant and Equipment, net

 

14,185

 

 

14,288

 

OTHER ASSETS
Intangible Assets, net

 

18,836

 

 

21,232

 

Goodwill

 

14,633

 

 

14,658

 

Deferred Tax Assets

 

6,882

 

 

6,907

 

Right of Use Asset

 

603

 

 

794

 

Other Assets

 

1,438

 

 

1,566

 

TOTAL ASSETS

$

133,137

 

$

139,207

 

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts Payable

$

8,068

 

$

8,479

 

Accrued Compensation

 

2,923

 

 

2,750

 

Other Liabilities and Accrued Expenses

 

2,706

 

 

3,308

 

Revolving Line of Credit

 

8,900

 

 

15,900

 

Current Portion of Long-Term Debt

 

2,842

 

 

2,100

 

Current Portion of Royalty Obligation

 

1,700

 

 

1,725

 

Current Liability – Excess Royalty Payment Due

 

935

 

 

562

 

Income Taxes Payable

 

235

 

 

786

 

Deferred Revenue

 

1,338

 

 

1,888

 

Total Current Liabilities

 

29,647

 

 

37,498

 

NON-CURRENT LIABILITIES
Long-Term Debt, net of current portion

 

10,050

 

 

12,040

 

Royalty Obligation, net of current portion

 

2,093

 

 

3,415

 

Lease Liability, net of current portion

 

415

 

 

555

 

Income Tax Payables

 

551

 

 

491

 

Deferred Revenue

 

-

 

 

674

 

Deferred Tax Liabilities

 

99

 

 

167

 

TOTAL LIABILITIES

 

42,855

 

 

54,840

 

SHAREHOLDERS’ EQUITY
Common Stock

 

541

 

 

534

 

Additional Paid-in Capital

 

62,684

 

 

61,131

 

Retained Earnings

 

63,868

 

 

59,175

 

Treasury Stock

 

(34,592

)

 

(34,235

)

Accumulated Other Comprehensive Loss, net of tax

 

(2,219

)

 

(2,238

)

TOTAL SHAREHOLDERS’ EQUITY

 

90,282

 

 

84,367

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

133,137

 

$

139,207

 

ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)
 
RevenueSegment Operating ProfitRevenueSegment Operating Profit
Three Months EndedThree Months EndedTwelve Months EndedTwelve Months Ended
January 31,
2024		January 31,
2023		January 31,
2024		January 31,
2023		January 31,
2024		January 31,
2023		January 31,
2024		January 31,
2023
Product Identification

$

26,626

$

28,105

$

3,239

 

$

1,869

 

$

104,041

$

103,089

$

10,087

 

$

7,889

 

Test & Measurement

 

12,968

 

11,748

 

3,652

 

 

3,206

 

 

44,045

 

39,438

 

10,200

 

 

8,989

 

Total

$

39,594

$

39,853

 

6,891

 

 

5,075

 

$

148,086

$

142,527

 

20,287

 

 

16,878

 

Corporate Expenses

 

2,976

 

 

2,978

 

 

11,491

 

 

11,435

 

Operating Income

 

3,915

 

 

2,097

 

 

8,796

 

 

5,443

 

Other Income (Expense), net

 

(563

)

 

(367

)

 

(2,723

)

 

(2,033

)

Income Before Income Taxes

 

3,352

 

 

1,730

 

 

6,073

 

 

3,410

 

Income Tax Provision

 

641

 

 

367

 

 

1,379

 

 

749

 

Net Income

$

2,711

 

$

1,363

 

$

4,694

 

$

2,661

 

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Results
In Thousands Except for Per Share Data
(Unaudited)
     
Three Months Ended  Twelve Months Ended  
January 31,
2024		January 31,
2023		  January 31,
2024		January 31,
2023		  
     
GAAP Revenues

$

39,594

 

$

39,853

 

$

148,086

 

$

142,527

 

Non-GAAP Revenues

$

39,594

 

$

39,853

 

$

148,086

 

$

142,527

 

    
GAAP Cost of Revenues

$

24,848

 

$

26,291

 

$

96,465

 

$

94,371

 

Restructuring Charges, net

 

(32

)

 

-

 

 

2,064

 

 

-

 

Product Retrofit Costs, net

 

(410

)

 

-

 

 

642

 

 

-

 

Non-GAAP Cost of Revenues

$

25,290

 

$

26,291

 

$

93,759

 

$

94,371

 

    
GAAP Gross Profit

$

14,746

 

$

13,562

 

$

51,621

 

$

48,156

 

Restructuring Charges, net

 

(32

)

 

-

 

 

2,064

 

 

-

 

Product Retrofit Costs, net

 

(210

)

-

 

642

 

 -

Non-GAAP Gross Profit

$

14,504

 

$

13,562

 

$

54,327

 

$

48,156

 

    
GAAP Operating Expenses

$

10,831

 

$

11,465

 

$

42,825

 

$

42,713

 

Transaction Costs

 

-

 

 

-

 

 

-

 

 

(717

)

Restructuring Charges, net

 

43

 

 

-

 

 

(512

)

 

-

 

Non-GAAP Operating Expenses

$

10,874

 

$

11,465

 

$

42,313

 

$

41,996

 

    
GAAP Operating Income

$

3,915

 

$

2,097

 

$

8,796

 

$

5,443

 

Transaction Costs

 

-

 

 

-

 

 

-

 

 

717

 

Restructuring Charges, net

 

(75

)

 

-

 

 

2,576

 

 

-

 

Product Retrofit Costs, net

 

(210

)

 

-

 

 

642

 

 

-

 

Non-GAAP Operating Income

$

3,630

 

$

2,097

 

$

12,014

 

$

6,160

 

    
GAAP Other Income/(Expense)

$

(563

)

$

(367

)

$

(2,723

)

$

(2,033

)

Non-GAAP Other Income/(Expense)

$

(563

)

$

(367

)

$

(2,723

)

$

(2,033

)

    
GAAP Income Tax Expense

$

641

 

$

367

 

$

1,379

 

$

749

 

Tax Adjustments of Non-GAAP Adjustments

 

(65

)

 

-

 

 

732

 

 

177

 

Non-GAAP Income Tax Expense

$

576

 

$

367

 

$

2,111

 

$

926

 

    
GAAP Net Income

$

2,711

 

$

1,363

 

$

4,694

 

$

2,661

 

Transaction Costs

 

-

 

 

-

 

 

-

 

 

540

 

Restructuring Charges, net

 

(58

)

 

-

 

 

1,990

 

 

-

 

Product Retrofit Costs, net

 

(162

)

 

-

 

 

496

 

 

-

 

Non-GAAP Net Income

$

2,491

 

$

1,363

 

$

7,180

 

$

3,201

 

    
GAAP Diluted Earnings Per Share

$

0.36

 

$

0.18

 

$

0.63

 

$

0.36

 

Transaction Costs

 

-

 

 

-

 

 

-

 

 

0.07

 

Restructuring Charges, net

 

(0.01

)

 

-

 

 

0.27

 

 

-

 

Product Retrofit Costs, net

 

(0.02

)

 

-

 

 

0.07

 

 

-

 

Non-GAAP Diluted Earnings Per Share

$

0.33

 

$

0.18

 

$

0.97

 

$

0.43

 

ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA
Amounts In Thousands
(Unaudited)
 
Three Months EndedTwelve Months Ended
January 31,
2024		January 31,
2023		January 31,
2024		January 31,
2023
GAAP Net Income

$

2,711

 

$

1,363

$

4,694

$

2,661

Interest Expense

 

779

 

 

592

 

2,697

 

1,678

Income Tax Expense

 

641

 

 

367

 

1,379

 

749

Depreciation/Amortization

 

1,108

 

 

1,295

 

4,266

 

3,916

Share-Based Compensation

 

282

 

 

313

 

1,347

 

1,290

Adjusted EBITDA

$

5,521

 

$

3,930

$

14,383

$

10,294

Transaction Costs

 

-

 

 

-

 

-

 

540

Restructuring Charges, net

 

(58

)

 

-

 

1,990

 

-

Product Retrofit Costs, net

 

(162

)

 

-

 

496

 

-

Income Tax Expense - Transaction Costs

 

-

 

 

-

 

-

 

176

Income Tax Expense - Restructuring Charges, net

 

(17

)

 

-

 

586

 

-

Income Tax Expense - Product Retrofit Costs, net

 

(48

)

 

-

 

146

 

-

Adjusted EBITDA Less Restructuring & Retrofit Items

$

5,236

 

$

3,930

$

17,601

$

11,010

ASTRONOVA, INC.
Reconciliation of Segment GAAP to Non-GAAP Operating Income
Amounts In Thousands
(Unaudited)
 
Three Months EndedTwelve Months Ended
January 31, 2024January 31, 2023January 31, 2024January 31, 2023
Product
Identification		Test &
Measurement		TotalProduct
Identification		Test &
Measurement		TotalProduct
Identification		Test &
Measurement		TotalProduct
Identification		Test &
Measurement		Total
 
GAAP - Segment Operating Profit

$

3,239

 

$

3,652

$

6,891

 

$

1,869

$

3,206

$

5,075

$

10,087

$

10,200

$

20,287

$

7,889

$

8,989

$

16,878

 
Restructuring Charges, net

 

(75

)

 

-

 

(75

)

 

-

 

-

 

-

 

2,494

-

 

2,494

 

-

 

-

 

-

 
Product Retrofit Costs, net

 

(210

)

 

-

 

(210

)

 

-

 

-

 

-

 

642

-

 

642

 

-

 

-

 

-

 
Non-GAAP - Segment Operating Profit

$

2,954

 

$

3,652

$

6,606

 

$

1,869

$

3,206

$

5,075

$

13,223

$

10,200

$

23,423

$

7,889

$

8,989

$

16,878