AstroNova, Inc. (ALOT) SEC Filing 10-Q Quarterly report for the period ending Saturday, October 27, 2018

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Exhibit 99.1

 

LOGO    News Release

Contact:

Scott Solomon

Senior Vice President

Sharon Merrill Associates

(617) 542-5300

ALOT@investorrelations.com

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

West Warwick, R.I. – November 21, 2018 – 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.

 

 

     

600 East Greenwich Avenue

West Warwick, RI 02893

+1 (401) 828-4000

  

NASDAQ: ALOT

www.astronovainc.com

  

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The following information was filed by AstroNova, Inc. on Wednesday, November 21, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • 18418659_81
    Financial - Earnings
    The increase in segment operating profit and related margin were due to higher sales revenue and favorable product mix.
  • 18418659_49
    Financial - Earnings
    The higher gross profit and related margin for the current year compared to the prior year is primarily due to higher sales and favorable product mix.
  • 18418659_85
    Financial - Earnings
    The higher segment operating profit and related profit margin for the current year is due to higher revenue and product mix.
  • 18418659_48
    Financial - Earnings
    The Company?s current year gross profit margin of 39.6% reflects an increase from the prior year?s first nine months gross profit margin of 38.9%.
  • 18418659_23
    Financial - Earnings
    The Company?s current quarter gross profit margin of 40.7% reflects a 0.3 percentage point decrease from the prior year third quarter gross profit margin of 41.0%.
  • 18418659_21
    Revenue - Product
    Service and other revenues of $3.0 million in the current quarter increased 7.1% from prior year third quarter service and other revenues of $2.8 million, primarily due to an increase in customer demand for repair services in the Test & Measurement segment during the third quarter of the current year due to a larger installed customer base as a result of the Honeywell Agreement.
  • 18418659_76
    Financial - Earnings
    Product Identification current year segment operating profit of $5.8 million and profit margin of 9.2% declined from the prior year segment operating profit of $7.8 million and related profit margin of 12.9%.
  • 18418659_105
    Other - Other
    In connection with the Credit Agreement, AstroNova and ANI ApS entered into certain hedging arrangements with the Lender to manage the variable interest rate risk and currency risk associated with its payments in respect of the term loans.
  • 18418659_35
    Financial - Income
    This compares to the prior year?s third quarter tax provision on income of $0.2 million which was impacted by $0.3 million of prior period tax benefits recognized upon the completion of an R&D; study, partially offset by tax increases from the mix of forecasted pre-tax earnings to higher taxing jurisdictions and reflected an effective tax rate of 12.4%.
  • 18418659_52
    Financial - Expense
    G&A; expenses increased to $8.3 million in the first nine months of the current year compared to prior year?s first nine months G&A; expenses of $6.8 million, primarily due to an increase in employee compensation.
  • 18418659_118
    Other - Other
    The combination of these factors on working capital decreased cash by $7.2 million in the first nine months of fiscal 2019, compared to a decrease of $2.4 million for the same period in fiscal 2018.
  • 18418659_51
    Financial - Expense
    Selling and marketing expenses for the current year of $19.5 million increased 22.1% compared to the previous year?s first nine months due primarily to the amortization of the Company?s identifiable intangibles purchased in connection with the Honeywell Agreement, as well as increases in employee compensation.
  • 18418659_29
    Financial - Expense
    R&D; expenses were $2.1 million in the current quarter, compared to $2.0 million in the prior year third quarter with the increase attributable primarily to increased employee benefits.
  • 18418659_63
    Revenue - Product
    In addition, during the first quarter of fiscal 2019, a change in accounting estimate for revenue subject to customer rebates under the Honeywell Agreement increased net income by $0.3 million or $0.05 per diluted share.
  • 18418659_50
    Financial - Expense
    Operating expenses for the first nine months of the fiscal year were $33.6 million, a 19.8% increase compared to prior year?s first nine months operating expenses of $28.1 million.
  • 18418659_67
    Revenue - Product
    Summarized below are the Revenue and Segment Operating Profit for each reporting segment: Product Identification Revenue from the Product Identification segment increased 6.0% in the third quarter of the current year, with revenue of $21.7 million compared to $20.5 million in the same period of the prior year.
  • 18418659_69
    Revenue - Product
    The current year third quarter also received a solid contribution from the supplies product line revenue, which increased 5.6% from the same period in the prior year.
  • 18418659_46
    Revenue - Product
    Service and other revenues were $8.8 million in the first nine months of the current year, a 14.7% increase compared to the prior year?s first nine months service and other revenues of $7.7 million, primarily due to an increase in demand for parts and repair services in the Test & Measurement segment related to the Honeywell Agreement entered into at the end of the third quarter of the prior year.
  • 18418659_16
    Revenue - Product
    Current year third quarter international revenue includes an unfavorable foreign exchange rate impact of $0.2 million.
  • 18418659_70
    Revenue - Product
    The current quarter increase in supplies revenue is due to the continued increase in demand for label and tag supplies, which have increased 9.7% in the current year third quarter compared to the same period in the prior year.
  • 18418659_25
    Financial - Expense
    Operating expenses for the current quarter were $11.5 million, a 13.6% increase compared to prior year third quarter operating expenses of $10.2 million.
  • 18418659_61
    Financial - Earnings
    The 17.9% effective tax rate for the nine months ended October 28, 2017 was impacted by $0.3 million of prior period tax benefits recognized upon the completion of an R&D; study, partially offset by tax increases from the mix of forecasted pre-tax earnings to higher taxing jurisdictions.
  • 18418659_109
    Other - Other
    Outstanding borrowings under the revolving credit line during fiscal 2019 bear interest at an annual rate of 5.5% and the Company has accrued $38 thousand on the outstanding obligation for the nine months ended October 27, 2018.
  • 18418659_19
    Revenue - Product
    24 Supplies revenue in the current quarter was $18.1 million, a 9.0% increase over the prior year?s third quarter supplies revenue of $16.6 million.
  • 18418659_34
    Revenue - Geography
    The provision for federal, state and foreign income taxes for the third quarter of the current year was $0.4 million, which includes a $0.1 million benefit related to windfall tax benefits related to the Company?s stock and reflects an effective tax rate of 22.3%.
  • 18418659_101
    Other - Other
    The principal amount of the revolving credit facility which had been temporarily increased to $15.0 million was reduced to $10.0 million effective upon closing of the Second Amendment and the maturity date was extended to November 30, 2022.
  • 18418659_27
    Financial - Expense
    G&A; expenses increased in the third quarter to $2.8 million compared to $2.6 million in the prior year third quarter.
  • 18418659_26
    Financial - Expense
    Specifically, selling and marketing expenses for the current quarter increased to $6.6 million compared to $5.5 million in the third quarter of the prior year due primarily to the amortization of the Company?s identifiable intangibles purchased in connection with the Honeywell Agreement, as well as an increase in employee bonuses.
  • 18418659_17
    Revenue - Product
    Hardware revenue in the current quarter was $13.1 million, a 39.4% increase compared to the prior year?s third quarter revenue of $9.4 million.
  • 18418659_68
    Revenue - Product
    Hardware revenue increased 14.4% compared to prior year primarily due to an increase in demand for the new TrojanLabel printer products.
  • 18418659_14
    Revenue - Product
    Revenue through domestic channels for the current year third quarter was $21.5 million, an increase of 18.9% over the prior year?s third quarter.
  • 18418659_15
    Revenue - Product
    International revenue for the third quarter of the current year was $12.7 million, also an 18.9% increase over the previous year?s third quarter and represents 37% of AstroNova?s third quarter revenue.
  • 18418659_44
    Revenue - Product
    Supplies revenue in the first nine months of the current year was $52.7 million, representing a 10.4% increase over the prior year?s first nine months revenue of $47.7 million.
  • 18418659_43
    Revenue - Product
    Also contributing to the increase in hardware sales for the current year was growth in sales of both ink jet and Trojan Label printers.
  • 18418659_41
    Revenue - Product
    The current year?s first nine months international revenue included a favorable foreign exchange rate impact of $0.9 million.
  • 18418659_18
    Revenue - Product
    The increase was primarily due to Test & Measurement hardware sales of aerospace printers related to the Honeywell Agreement entered into at the end of the third quarter of the prior year.
  • 18418659_13
    Revenue - Product
    Revenue by segment and current quarter percentage change over prior year for the three months ended October 27, 2018 and October 28, 2017 were: Revenue for the third quarter of the current year was $34.2 million, representing an 18.9% increase compared to the previous year third quarter revenue of $28.8 million.
  • 18418659_38
    Revenue - Product
    Revenue by product group and current quarter percentage change over prior year for the nine months ended October 27, 2018 and October 28, 2017 were: Revenue for the first nine months of the current year was $99.5 million, representing a 23.3% increase compared to the previous year?s first nine months of revenue of $80.7 million.
  • 18418659_45
    Revenue - Product
    The current year increase in supplies revenue is related primarily to increases in digital color printer supplies product revenue, and label and tag revenue in the Product Identification segment.
  • 18418659_75
    Revenue - Product
    The increase in current year revenue was also due to a contribution from increased sales of TrojanLabel printers, which experienced double-digit growth rates in the current year.
  • 18418659_79
    Revenue - Product
    The increase is due primarily to the increase in revenue from aerospace printer hardware and supplies as a result of the Honeywell Agreement entered into at the end of the third quarter of the prior year as well as a contribution from increased sales of data acquisition products for the current year.
  • 18418659_83
    Revenue - Product
    The increase is due primarily to the increase in revenue from aerospace printer hardware and supplies as a result of the Honeywell Agreement entered into at the end of the third quarter of the prior year as well as a contribution from increased sales of data acquisition products for the current year.
  • 18418659_22
    Financial - Earnings
    Current year third quarter gross profit was $13.9 million, a 17.9% increase compared to prior year third quarter gross profit of $11.8 million.
  • 18418659_78
    Revenue - Product
    Test & Measurement-T&M; Revenue from the T&M; segment was $12.5 million for the third quarter of the current fiscal year, representing a 50.7% increase compared to revenue of $8.3 million for the same period in the prior year.
  • 18418659_82
    Revenue - Product
    Revenue from the T&M; segment was $36.1 million for the first nine months of the current fiscal year, a 73.8% increase compared to sales of $20.8 million for the same period in the prior year.
  • 18418659_39
    Revenue - Product
    Revenue through domestic channels for the first nine months of the current year was $60.8 million, an increase of 19.2% from the prior year.
  • 18418659_40
    Revenue - Product
    International revenue for the first nine months of the current year was $38.7 million, a 30.3% increase from the previous year.
  • 18418659_42
    Revenue - Product
    25 Hardware revenue in the first nine months of the current year was $38.0 million, a 50.2% increase compared to the prior year?s first nine months of revenue of $25.3 million primarily due to the increase in Test & Measurement hardware sales of aerospace printers related to the Honeywell Agreement entered into at the end of the third quarter of the prior year.

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001564590-18-030485
  • Submitted to the SEC: Tuesday, December 4, 2018 4:19:43 PM EST
  • Accepted by the SEC: Tuesday, December 4, 2018
  • Period ending: October 2018
  • Industry: Computer Peripheral Equipment