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): September 14, 2021

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 September 14, 2021, we issued a press release reporting the financial results for our fiscal second quarter ended July 31, 2021. 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 September 14, 2021		
			
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: September 14, 2021	 		 	By:	 	/s/ David S. Smith	
	 		 		 	David S. Smith	
	 		 		 	Vice President, Chief Financial Officer and Treasurer	

Exhibit 99.1

	 	News Release	
Contact:
Scott Solomon
Senior Vice President
Sharon Merrill Associates
(617) 542-5300
ALOT@investorrelations.com
AstroNova Reports Strong Financial Results for the
Second Quarter of Fiscal 2022
Commercial Air Travel’s Continued Recovery and the Product Identification Segment’s Solid Performance Drive Sequential and Year-Over-Year Growth
Second-Quarter Fiscal 2022 Summary
 
 	•	 	Bookings of $30.6 million, up 18% year-over-year	
 
 	•	 	Revenue of $29.8 million, up 8% year-over-year	
 
 	•	 	Backlog of $24.3 million	
 
 	•	 	GAAP operating income of $3.5 million	
 
 	•	 	Non-GAAP operating income of $1.3 million	
 
 	•	 	GAAP net income of $7.0 million, or $0.96 per diluted share, including $0.83 per diluted share in CARES Act benefits	
 
 	•	 	Non-GAAP net income of $978,000, or $0.13 per diluted share, compared with break-even results in the prior year’s second quarter	
 
 	•	 	Adjusted EBITDA of $9.2 million, or 30.8% of revenue	
 
 	•	 	Excluding CARES Act benefits, Adjusted EBITDA of $2.6 million or 8.7% or revenue	
 
 	•	 	Company anticipates sequential and year-over-year top-line growth in the second half of fiscal 2022	
West Warwick, R.I. – September 14, 2021 – AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2022 second quarter ended July 31, 2021.
CEO Commentary
“We reported year-over-year and sequential revenue growth in the second quarter in both the Test & Measurement and Product Identification segments, as we capitalized on an improved demand picture across the business,” said Gregory A. Woods, President and Chief Executive Officer of AstroNova. “In the Test & Measurement segment, revenue from hardware, supplies, and parts and repairs all increased as air passenger traffic continued to rebound. We also saw solid contributions across the Product Identification product line, with another strong quarter from the T3-OPX wide-format durable direct-to-package printing system. We performed particularly well given the ongoing global supply chain constraints and continuing COVID-19 headwinds.”

Business Outlook
“We expect to report year-over-year and sequential top-line growth for the second half of fiscal 2022,” continued Woods. “The aerospace market is recovering a bit more quickly than we had anticipated, and we expect continued improved demand in the Product Identification segment. At the same time, we recognize the uncertainty caused by supply chain constraints and the continuing pandemic. Looking further ahead, we believe that we are well positioned to capitalize on many growth opportunities across both our Test & Measurement and Product Identification segments when markets fully recover.”
CARES Act Benefits
During the second quarter of this fiscal year, the principal and interest were forgiven on the Paycheck Protection Program (PPP) loan AstroNova received last year. In addition, the Company became eligible for an Employee Retention Credit (ERC) authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In total for the second quarter, these two items (the CARES Act benefits) benefited net income by $6.0 million and earnings per diluted share by $0.83.
Q2 FY 2022 Operating Segment Results
Product Identification segment revenue in the second quarter of fiscal 2022 increased 8.6% to $23.5 million, with gains in both hardware and supplies, versus $21.6 million in the prior-year period. GAAP segment operating income was $4.4 million, or 18.8% of revenue, compared with $3.1 million, or 14.5% of revenue, in the prior year. On a non-GAAP basis, excluding the CARES Act benefits, segment operating income in the second quarter of fiscal 2022 was $3.0 million, or 12.7% of revenue.
Test & Measurement segment revenue in the second quarter of fiscal 2022 was $6.4 million, compared with $6.0 million in the same period of fiscal 2021. The Test & Measurement segment recorded GAAP operating income of $1.7 million, or 26.9% of revenue, compared with a segment operating loss of $0.4 million, or negative 6.8% of revenue, in the comparable period of fiscal 2021. Non-GAAP segment operating income in the second quarter of fiscal 2022, excluding the CARES Act benefits, was $908,000, or 14.3% of sales, helped by lower manufacturing costs and operating expenses versus the year-earlier period, as well as a change in amortization for aerospace-related intangibles that resulted in an additional $587,000 in operating profit. This is the best result since the second half of fiscal 2020, when revenue was significantly higher.
 
2

Q2 FY 2022 Results Summary
Revenue for the second quarter of fiscal 2022 totaled $29.8 million, up 8% compared with $27.7 million in the year-earlier period.
GAAP gross profit for the second quarter of fiscal 2022 was $12.7 million, or 42.6% of revenue, compared with $9.8 million, or 35.4% of revenue, in the same period of fiscal 2021. Non-GAAP gross profit in the second quarter of fiscal 2022, excluding the CARES Act benefits, was $11.1 million, or 37.1% of revenue, up 170 basis points from the gross profit in the same period of the prior year. The increase compared with the same quarter last year reflects higher revenue and the impact of favorable product mix.
GAAP operating expenses for the second quarter of fiscal 2022 totaled $9.3 million, down approximately 3.3% compared with $9.6 million in the second quarter fiscal 2021. On a non-GAAP basis, excluding the CARES Act benefits, operating expenses for the second quarter of fiscal 2022 were $9.8 million, primarily due to higher wages and benefits compared with the prior-year second quarter, when COVID-related furloughs and work-share programs were in effect.
Other income of $4.3 million included a $4.5 million gain, related to the forgiveness indebtedness income related to the PPP loan.
GAAP net income for the second quarter of fiscal 2022 was $7.0 million, or $0.96 per diluted share, compared with net income of $3,000, or $0.00 per diluted share, in the second quarter of fiscal 2021. On a non-GAAP basis, excluding the CARES Act benefits, net income for the second quarter of fiscal 2022 was $978,000, or $0.13 per diluted share.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $8.7 million, compared with $2.4 million in the second quarter of fiscal 2021. Second-quarter fiscal 2022 EBITDA, excluding the CARES Act benefits, was $2.1 million, or 7.2% of revenue. Adjusted EBITDA was $9.2 million, or 30.8% of revenue, and $2.6 million, or 8.7% of revenue, excluding the effect of the CARES Act benefits. This compares with Adjusted EBITDA of $3.0 million, or 10.7% of revenue, for the comparable period of fiscal 2021.
Non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP segment operating income, EBITDA, EBITDA excluding the effect of the CARES Act benefits, Adjusted EBITDA and Adjusted EBITDA excluding the CARES Act benefits are non-GAAP financial measures explained in greater detail below under “Use of Non-GAAP Financial Measures.” Please refer to the financial reconciliation table included in this news release for a reconciliation of non-GAAP measures to the closest comparable GAAP measures for the fiscal second quarters ended July 31, 2021 and August 1, 2020.
Bookings for the second quarter of fiscal 2022 were $30.6 million, compared with $25.3 million in the second quarter of fiscal 2021.
Backlog at July 31, 2021 was $24.4 million versus $23.7 million on August 1, 2020.
 
3

Second-Quarter Fiscal 2022 Conference Call
AstroNova will discuss its second-quarter fiscal 2022 financial results in an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (800) 437-2398 (U.S. and Canada) or (929) 477-0577 (International) approximately 10 minutes prior to the start time and enter confirmation code 1881865.
You can hear a replay of the conference call from 12:00 p.m. ET Tuesday, September 14, 2021 until 12:00 p.m. ET on Tuesday, September 21, 2021 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 1881865. 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 net income, non-GAAP net income per diluted share, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP segment operating income, earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA excluding the CARES Act benefits, and Adjusted EBITDA and Adjusted EBITDA excluding the CARES Act benefits. 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 also 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 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 also are used by the Company’s management to assist with their financial and operating decision-making.
About AstroNova
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies since 1969, is focused on designing, manufacturing, distributing and servicing a broad range of products that acquire, store, analyze and present data in multiple formats. The Company’s Product Identification segment offers a complete line-up of label and direct-to-package printing hardware and supplies, allowing customers to mark, track and enhance their products’ appearance. Supported by AstroNova’s customer application experts and technology leadership in printing, material science and high-speed data processing, customers benefit from an optimized, “total solution” approach. The Test and Measurement segment includes the AstroNova Aerospace business unit. This segment designs and manufactures flight deck printers, networking hardware and related accessories serving the world’s aerospace and defense industries with proven advanced airborne technology solutions for the cockpit, the cabin and so much more. 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.    
 
4

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, those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021 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.
 
5

ASTRONOVA, INC.
Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data
(Unaudited)

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	 	July 31, 2021	 	 	August 1, 2020	 	
Revenue	  	$	29,845	 	 	$	27,658	 	 	$	58,923	 	 	$	58,578	 	
Cost of Revenue	  	 	17,129	 	 	 	17,871	 	 	 	35,320	 	 	 	37,935	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Profit	  	 	12,716	 	 	 	9,787	 	 	 	23,603	 	 	 	20,643	 	
Total Gross Profit Margin	  	 	42.6	% 	 	 	35.4	% 	 	 	40.1	% 	 	 	35.2	% 	
Operating Expenses:	  				 				 				 				
Selling & Marketing	  	 	5,061	 	 	 	5,555	 	 	 	11,154	 	 	 	11,481	 	
Research & Development	  	 	1,539	 	 	 	1,493	 	 	 	3,255	 	 	 	3,433	 	
General & Administrative	  	 	2,664	 	 	 	2,535	 	 	 	5,008	 	 	 	4,861	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Expenses	  	 	9,264	 	 	 	9,583	 	 	 	19,417	 	 	 	19,775	 	
Operating Income	  	 	3,452	 	 	 	204	 	 	 	4,186	 	 	 	868	 	
Total Operating Margin	  	 	11.6	% 	 	 	0.7	% 	 	 	7.1	% 	 	 	1.5	% 	
Other Income (Expense), net:	  				 				 				 				
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Extinguishment of Debt - PPP Loan	  	 	4,466	 	 	 	—  	 	 	 	4,466	 	 	 	—  	 	
Interest Expense	  	 	(171	) 	 	 	(259	) 	 	 	(392	) 	 	 	(490	) 	
Gain (Loss) on Foreign Currency Transactions	  	 	50	 	 	 	553	 	 	 	(114	) 	 	 	399	 	
Other, net	  	 	(79	) 	 	 	34	 	 	 	(63	) 	 	 	68	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	4,266	 	 	 	328	 	 	 	3,897	 	 	 	(23	) 	
Income Before Taxes	  	 	7,718	 	 	 	532	 	 	 	8,083	 	 	 	845	 	
Income Tax (Benefit) Provision	  	 	699	 	 	 	529	 	 	 	471	 	 	 	411	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	7,019	 	 	$	3	 	 	$	7,612	 	 	$	434	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Basic	  	$	0.97	 	 	$	0.00	 	 	$	1.06	 	 	$	0.06	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Diluted	  	$	0.96	 	 	$	0.00	 	 	$	1.04	 	 	$	0.06	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	  	 	7,209	 	 	 	7,105	 	 	 	7,177	 	 	 	7,089	 	
Weighted Average Number of Common Shares - Diluted	  	 	7,329	 	 	 	7,123	 	 	 	7,297	 	 	 	7,114	 	

ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)

 	  	July 31, 2021	 	 	January 31, 2021	 	
ASSETS	  				 				
CURRENT ASSETS	  				 				
Cash and Cash Equivalents	  	$	11,389	 	 	$	11,439	 	
Accounts Receivable, net	  	 	15,603	 	 	 	17,415	 	
Inventories, net	  	 	29,090	 	 	 	30,060	 	
Prepaid Expenses and Other Current Assets	  	 	5,317	 	 	 	1,807	 	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	61,399	 	 	 	60,721	 	
PROPERTY, PLANT AND EQUIPMENT	  	 	51,963	 	 	 	50,839	 	
Less Accumulated Depreciation	  	 	(39,656	) 	 	 	(38,828	) 	
	  	 	 	 	 	 	 	 	
Property, Plant and Equipment, net	  	 	12,307	 	 	 	12,011	 	
OTHER ASSETS	  				 				
Intangible Assets, net	  	 	20,074	 	 	 	21,502	 	
Goodwill	  	 	12,623	 	 	 	12,806	 	
Deferred Tax Assets	  	 	5,942	 	 	 	5,941	 	
Right of Use Asset	  	 	1,209	 	 	 	1,389	 	
Other Assets	  	 	1,680	 	 	 	1,103	 	
	  	 	 	 	 	 	 	 	
TOTAL ASSETS	  	$	115,234	 	 	$	115,473	 	
	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  				 				
CURRENT LIABILITIES	  				 				
Accounts Payable	  	$	6,131	 	 	$	5,734	 	
Accrued Compensation	  	 	3,917	 	 	 	2,852	 	
Other Liabilities and Accrued Expenses	  	 	3,666	 	 	 	3,939	 	
Current Portion of Long-Term Debt	  	 	875	 	 	 	5,326	 	
Current Portion of Royalty Obligation	  	 	2,000	 	 	 	2,000	 	
Current Liability – Excess Royalty Payment Due	  	 	24	 	 	 	177	 	
Deferred Revenue	  	 	324	 	 	 	285	 	
Income Taxes Payable	  	 	—  	 	 	 	655	 	
	  	 	 	 	 	 	 	 	
Total Current Liabilities	  	 	16,937	 	 	 	20,968	 	
NON-CURRENT LIABILITIES	  				 				
Long-Term Debt, net of current portion	  	 	8,641	 	 	 	7,109	 	
Royalty Obligation, net of current portion	  	 	5,261	 	 	 	6,161	 	
Long-Term Debt - PPP Loan	  	 	—  	 	 	 	4,422	 	
Lease Liability, net of current portion	  	 	907	 	 	 	1,065	 	
Other Long-Term Liabilities	  	 	557	 	 	 	681	 	
Deferred Tax Liabilities	  	 	354	 	 	 	384	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES	  	 	32,657	 	 	 	40,790	 	
SHAREHOLDERS’ EQUITY	  				 				
Common Stock	  	 	526	 	 	 	521	 	
Additional Paid-in Capital	  	 	59,078	 	 	 	58,049	 	
Retained Earnings	  	 	57,697	 	 	 	50,085	 	
Treasury Stock	  	 	(33,942	) 	 	 	(33,588	) 	
Accumulated Other Comprehensive Loss, net of tax	  	 	(782	) 	 	 	(384	) 	
	  	 	 	 	 	 	 	 	
TOTAL SHAREHOLDERS’ EQUITY	  	 	82,577	 	 	 	74,683	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	  	$	115,234	 	 	$	115,473	 	

ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)

 	  	Revenue	 	  	Segment Operating Profit (Loss)	 	 	Revenue	 	  	Segment Operating Profit (Loss)	 	
 	  	Three Months Ended	 	  	Three Months Ended	 	 	Six Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	  	August 1, 2020	 	  	July 31, 2021	 	  	August 1, 2020	 	 	July 31, 2021	 	  	August 1, 2020	 	  	July 31, 2021	 	  	August 1, 2020	 	
Product Identification	  	$	23,492	 	  	$	21,629	 	  	$	4,406	 	  	$	3,146	 	 	$	46,590	 	  	$	44,009	 	  	$	7,134	 	  	$	6,292	 	
Test & Measurement	  	 	6,353	 	  	 	6,029	 	  	 	1,710	 	  	 	(407	) 	 	 	12,333	 	  	 	14,569	 	  	 	2,060	 	  	 	(563	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	29,845	 	  	$	27,658	 	  	 	6,116	 	  	 	2,739	 	 	$	58,923	 	  	$	58,578	 	  	 	9,194	 	  	 	5,729	 	
	  	 	 	 	  	 	 	 	  				  				 	 	 	 	  	 	 	 	  				  				
Corporate Expenses	  				  				  	 	2,664	 	  	 	2,535	 	 				  				  	 	5,008	 	  	 	4,861	 	
	  				  				  	 	 	 	  	 	 	 	 				  				  	 	 	 	  	 	 	 	
Operating Income	  				  				  	 	3,452	 	  	 	204	 	 				  				  	 	4,186	 	  	 	868	 	
Other Income (Expense), net	  				  				  	 	4,266	 	  	 	328	 	 				  				  	 	3,897	 	  	 	(23	) 	
	  				  				  	 	 	 	  	 	 	 	 				  				  	 	 	 	  	 	 	 	
Income Before Income Taxes	  				  				  	 	7,718	 	  	 	532	 	 				  				  	 	8,083	 	  	 	845	 	
Income Tax Provision	  				  				  	 	699	 	  	 	529	 	 				  				  	 	471	 	  	 	411	 	
	  				  				  	 	 	 	  	 	 	 	 				  				  	 	 	 	  	 	 	 	
Net Income	  				  				  	$	7,019	 	  	$	3	 	 				  				  	$	7,612	 	  	$	434	 	

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Gross Profit
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Gross Profit – GAAP	  	$	12,716	 	 	$	9,787	 	  	$	23,603	 	 	$	20,643	 	
Employee Retention Credit	  	$	(1,641	) 	 	$	—  	 	  	$	(1,641	) 	 	$	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Gross Profit – Non-GAAP	  	$	11,075	 	 	$	9,787	 	  	$	21,962	 	 	$	20,643	 	

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Operating Expenses
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	  	August 1, 2020	 	  	July 31, 2021	 	  	August 1, 2020	 	
Operating Expenses – GAAP	  	$	9,264	 	  	$	9,583	 	  	$	19,417	 	  	$	19,775	 	
Employee Retention Credit	  	$	489	 	  	$	—  	 	  	$	489	 	  	$	—  	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating Expenses – Non-GAAP	  	$	9,753	 	  	$	9,583	 	  	$	19,906	 	  	$	19,775	 	

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Operating Income
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Operating Income – GAAP	  	$	3,452	 	 	$	204	 	  	$	4,186	 	 	$	868	 	
Employee Retention Credit	  	$	(2,130	) 	 	$	 —  	 	  	$	(2,130	) 	 	$	 —  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Operating Income – Non-GAAP	  	$	1,322	 	 	$	204	 	  	$	2,056	 	 	$	868	 	

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Net Income
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Net Income – GAAP	  	$	7,019	 	 	$	3	 	  	$	7,612	 	 	$	434	 	
Employee Retention Credit	  	$	(1,615	) 	 	$	—  	 	  	$	(1,615	) 	 	$	—  	 	
PPP Loan Forgiveness	  	$	(4,426	) 	 	$	—  	 	  	$	(4,426	) 	 	$	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Net Income – Non-GAAP	  	$	978	 	 	$	3	 	  	$	1,571	 	 	$	434	 	

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Diluted Earnings Per Share
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Diluted Earnings Per Share - GAAP	  	$	0.96	 	 	$	 —  	 	  	$	1.04	 	 	$	0.06	 	
Employee Retention Credit	  	$	(0.22	) 	 	$	—  	 	  	$	(0.22	) 	 	$	—  	 	
PPP Loan Forgiveness	  	$	(0.60	) 	 	$	—  	 	  	$	(0.60	) 	 	$	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Diluted Earnings Per Share - Non-GAAP	  	$	0.13	 	 	$	—  	 	  	$	0.22	 	 	$	0.06	 	

ASTRONOVA, INC.
Reconciliation of Net Income to EBITDA and EBITDA Excluding the CARES Act Benefits
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Net Income – GAAP	  	$	7,019	 	 	$	3	 	  	$	7,612	 	 	$	434	 	
Interest Expense	  	 	171	 	 	 	259	 	  	 	392	 	 	 	490	 	
Income Tax Expense	  	 	699	 	 	 	529	 	  	 	471	 	 	 	411	 	
Depreciation/Amortization	  	 	849	 	 	 	1,565	 	  	 	2,276	 	 	 	3,133	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
EBITDA	  	$	8,738	 	 	$	2,356	 	  	$	10,751	 	 	$	4,468	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Net Income - Employee Retention Credit	  	 	(1,615	) 	 	 	—  	 	  	 	(1,615	) 	 	 	—  	 	
Net Income - PPP Loan Forgiveness	  	 	(4,426	) 	 	 	—  	 	  	 	(4,426	) 	 	 	—  	 	
Income Tax Expense - Employee Retention Credit	  	 	(515	) 	 	 	—  	 	  	 	(515	) 	 	 	—  	 	
Income Tax Expense - PPP Loan Forgiveness	  	 	(40	) 	 	 	—  	 	  	 	(40	) 	 	 	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
EBITDA Excluding the CARES Act Benefits	  	$	2,142	 	 	$	2,356	 	  	$	4,155	 	 	$	4,468	 	

ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Excluding the CARES Act Benefits
Amounts in Thousands
(Unaudited)

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	July 31, 2021	 	 	August 1, 2020	 	  	July 31, 2021	 	 	August 1, 2020	 	
Net Income – GAAP	  	$	7,019	 	 	$	3	 	  	$	7,612	 	 	$	434	 	
Interest Expense	  	 	171	 	 	 	259	 	  	 	392	 	 	 	490	 	
Income Tax Expense	  	 	699	 	 	 	529	 	  	 	471	 	 	 	411	 	
Depreciation/Amortization	  	 	849	 	 	 	1,565	 	  	 	2,276	 	 	 	3,133	 	
Share-Based Compensation	  	 	469	 	 	 	601	 	  	 	947	 	 	 	1,096	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	9,207	 	 	$	2,957	 	  	$	11,698	 	 	$	5,564	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Net Income - Employee Retention Credit	  	 	(1,615	) 	 	 	—  	 	  	 	(1,615	) 	 	 	—  	 	
Net Income - PPP Loan Forgiveness	  	 	(4,426	) 	 	 	—  	 	  	 	(4,426	) 	 	 	—  	 	
Income Tax Expense - Employee Retention Credit	  	 	(515	) 	 	 	—  	 	  	 	(515	) 	 	 	—  	 	
Income Tax Expense - PPP Loan Forgiveness	  	 	(40	) 	 	 	—  	 	  	 	(40	) 	 	 	—  	 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EBITDA Excluding the CARES Act Benefits	  	$	2,611	 	 	$	2,957	 	  	$	5,102	 	 	$	5,564	 	

ASTRONOVA, INC.
Reconciliation of GAAP Segment Operating Profit to Non-GAAP Segment Operating Profit
Amounts in Thousands
(Unaudited)

 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	July 31, 2021	 	 	August 1, 2020	 	 	July 31, 2021	 	 	August 1, 2020	 	
 	 	Product
Identification	 	 	Test &
Measurement	 	 	Total	 	 	Product
Identification	 	 	Test &
Measurement	 	 	Total	 	 	Product
Identification	 	 	Test &
Measurement	 	 	Total	 	 	Product
Identification	 	 	Test &
Measurement	 	 	Total	 	
Segment Operating Profit - GAAP	 	$	4,406	 	 	$	1,710	 	 	$	6,116	 	 	$	3,146	 	 	$	(407	) 	 	$	2,739	 	 	$	7,134	 	 	$	2,060	 	 	$	9,194	 	 	$	6,292	 	 	$	(563	) 	 	$	5,729	 	
Employee Retention Credit	 	$	(1,430	) 	 	$	(802	) 	 	$	(2,232	) 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	(1,430	) 	 	$	(802	) 	 	$	(2,232	) 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment Operating Profit - Non-GAAP	 	$	2,976	 	 	$	908	 	 	$	3,884	 	 	$	3,146	 	 	$	(407	) 	 	$	2,739	 	 	$	5,705	 	 	$	1,258	 	 	$	6,963	 	 	$	6,292	 	 	$	(563	) 	 	$	5,729