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): March 10, 2020

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))	
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).

Title of Each Class	 	Trading
Symbol(s)	 	Name of Each Exchange
on which Registered	
Common Stock, $0.05 Par Value	 	ALOT	 	NASDAQ Global Market	
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 March 12, 2020, we issued a press release reporting the financial results for our fiscal fourth quarter and year ended January 31, 2020. A copy of the press release relating to that announcement, dated March 12, 2020, 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 8.01	OTHER ITEMS.	
On March 10, 2020, our Board of Directors fixed June 2, 2020 as the date of our 2020 annual meeting of shareholders (the “Annual Meeting”). The record date for the Annual Meeting will be April 3, 2020. Further details regarding the Annual Meeting will appear in our 2020 proxy statement.
 
ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS.	
 
(d)	Exhibits	

Exhibit No.	  		Exhibit	
			
99.1	  	Press Release Dated March 12, 2020		
 
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: March 12, 2020	 		 	By:	 	/s/ David S. Smith	
	 		 		 	David S. Smith	
	 		 		 	Vice President, Treasurer and Chief Financial Officer	
 
3

Exhibit 99.1

	  	News Release	
Contact:
Scott Solomon
Senior Vice President
Sharon Merrill Associates
(617) 542-5300
ALOT@investorrelations.com
AstroNova Announces Financial Results for
Fourth-Quarter and Full-Year Fiscal 2020
Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share
Fourth-Quarter Fiscal 2020 Summary
 
 	•	 	Bookings of $36.0 million	
 
 	•	 	Backlog of $25.2 million	
 
 	•	 	Revenue of $30.5 million	
 
 	•	 	Operating loss of $1.6 million	
 
 	•	 	Loss per diluted share of $0.19	
Full-Year Fiscal 2020 Summary
 
 	•	 	Bookings of $136.3 million	
 
 	•	 	Revenue of $133.4 million	
 
 	•	 	Operating income of $2.4 million	
 
 	•	 	Earnings per diluted share of $0.24	
West Warwick, R.I. – March 12, 2020 – AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2020 fourth quarter and full year ended January 31, 2020.

AstroNova Reports Q4 FY 2020 Financial Results/2
 
CEO Commentary
“The impact of the grounding of the 737 MAX and the unexpected production halt announcement in December on our Test and Measurement segment, combined with ongoing relative weakness for the Product Identification segment in Asia, continued to affect our revenue and margins in the fourth quarter,” said President and CEO Greg Woods. “However, demand growth in regions outside of Asia drove positive fourth-quarter bookings in our Product Identification segment. We saw an enthusiastic response to our new products at several trade shows in the fall, and we are seeing indications of that customer interest translating into bookings momentum.    
“As a result of the near-term industry dynamics, most notably the Boeing 737 MAX production halt, we have taken actions to bring our costs in line with the current market environment,” continued Woods. “We implemented a 5% headcount reduction and other initiatives that we expect to result in an annualized expense savings of $1.5 million to $2.0 million. At the same time however, we continue to invest in those strategic initiatives that we believe will drive growth and profitability for AstroNova.”
Business Outlook
“In addition to the favorable customer reception to our new Product Identification offerings and the resulting solid bookings in the fourth quarter, we have made some additional changes to our sales management structure that we expect will result in more efficient and effective global sales processes,” added Woods. “In the meantime, we believe our cost-cutting measures position us for a return to profitability as we move forward in fiscal 2021. Longer term, we are bullish about the opportunities made possible by secular trends in both segments of our business, but the additional delays in the 737 MAX return to service will negatively impact nearer term results. We also are closely monitoring the COVID-19 viral outbreak for potential impacts on customer demand and our supply chain. Locally, we have taken actions to further enhance the health and safety of our people as part of the state of emergency that has been declared in Rhode Island.”
Operating Segment Results
Product Identification segment revenue in the fourth quarter of fiscal 2020 was $20.6 million, compared with $23.4 million in the prior-year period. Segment operating profit was $0.5 million, or 2.5% of revenue, versus segment operating profit of $2.1 million, or 8.9% of revenue, in the prior year.
Test & Measurement segment revenue in the fourth quarter of fiscal 2020 was $9.8 million compared with $13.8 million in the same period of fiscal 2019. Segment operating profit was $0.7 million, or 7.6% of revenue, for the fourth quarter of fiscal 2020 compared with segment operating profit of $3.7 million, or 26.7% of revenue, in the comparable period of fiscal 2019.
Hardware revenue was $11.4 million, compared with $15.2 million in the prior-year period. Supplies revenue was $16.4 million compared with $18.5 million in the same period of fiscal 2019. Service/other revenue was $2.7 million compared with $3.5 million in the same period a year earlier.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 2	

AstroNova Reports Q4 FY 2020 Financial Results/3
 
Financial Summary
Revenue totaled $30.5 million in the fourth quarter of fiscal 2020, versus $37.2 million in the same period of fiscal 2019, reflecting lower sales in the Test & Measurement and Product Identification segments. Full-year fiscal 2020 revenue was $133.4 million compared with $136.7 million in fiscal 2019.
Gross profit was $10.2 million in the fourth quarter of fiscal 2020, or 33.6% of revenue, compared with $14.6 million, or 39.2% of revenue, for the fourth quarter of fiscal 2019. The decrease in gross profit dollars and margin was attributable primarily to lower revenue and less favorable sales mix. Full-year gross profit was $48.8 million for fiscal 2020 compared with $54.0 million in the prior year.
Operating expenses were $11.9 million in the fourth quarter of fiscal 2020 compared with $11.7 million in the same period of fiscal 2019.
Operating loss was $1.6 million compared with operating income of $2.9 million, or 7.9% of revenue, in the fourth quarter of fiscal 2019.
For full-year fiscal 2020, operating expenses were $46.3 million compared with $45.3 million in fiscal 2019. Operating income for the full fiscal year 2020 was $2.4 million compared with $8.7 million a year ago.
Net loss was $1.3 million, or $0.19 per share, in the fourth quarter of fiscal 2020 versus net income of $2.3 million, or $0.32 per diluted share, in the fourth quarter of fiscal 2019. For full-year fiscal 2020, net income was $1.8 million, or $0.24 per diluted share, compared with net income of $5.7 million, or $0.81 per diluted share, in fiscal 2019.
Bookings were $36.0 million in the fourth quarter of fiscal 2020 compared with $38.6 million in the fourth quarter of fiscal 2019. Fiscal 2020 bookings decreased 4.0% to $136.3 million from $141.9 million in fiscal 2019.
Backlog at January 31, 2020 was $25.2 million, as compared to $25.6 million at the end of the fiscal 2019 fourth quarter.
Board Declares Quarterly Dividend
On March 10, 2020, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on April 2, 2020, to shareholders of record on March 26, 2020.
Fourth-Quarter Fiscal 2020 Conference Call
AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (800) 367-2403 (U.S. and Canada) or (334) 777-6978 (International) approximately 10 minutes prior to the start time and enter confirmation code 5018357.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 3	

AstroNova Reports Q4 FY 2020 Financial Results/4
 
You can hear a replay of the conference call from 12:00 p.m. ET Thursday, March 12 until 12:00 p.m. ET Thursday, March 19 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 5018357.
A real-time and an archived audio webcast of the call will be available through the “Investors” section of the AstroNova website, https://investors.astronovainc.com.
About AstroNova
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies since 1969, designs, manufactures, distributes, and services a broad range of products that acquire, store, analyze, and present data in multiple formats.
The Product Identification segment offers a complete line-up of labeling hardware and supplies allowing customers to mark, track, and enhance the appearance of their products. The segment is comprised of three business units: QuickLabel®, the industry leader in tabletop digital color label printing; TrojanLabel®, an innovative leader for professional label presses; and GetLabels™, the premier supplier of label materials, inks, toners, ribbons, and adhesives, all compatible with the major printer brands. 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, which 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 and the cabin; and the Test and Measurement business unit, which offers a suite of products and services that acquire, record, and analyze electronic signal data from local and networked sensors.
AstroNova is a member of the Russell 3000® Index, the Russell 2000® Index, the Russell Microcap® Index, and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting www.astronovainc.com.
Forward-Looking Statements
Information included in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning the Company’s anticipated performance in fiscal 2021, the effect of the grounding of the 737 MAX, and the impact of the COVID-19 outbreak, 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

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 4	

AstroNova Reports Q4 FY 2020 Financial Results/5
 
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, 2019 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.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 5	

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

 	  	Three-Months Ended	 	 	Twelve-Months Ended	 	
 	  	January 31,
2020	 	 	January 31,
2019	 	 	January 31,
2020	 	 	January 31,
2019	 	
Net Revenue	  	$	30,479	 	 	$	37,167	 	 	$	133,446	 	 	$	136,657	 	
Cost of Revenue	  	 	20,234	 	 	 	22,585	 	 	 	84,688	 	 	 	82,658	 	
Gross Profit	  	 	10,245	 	 	 	14,582	 	 	 	48,758	 	 	 	53,999	 	
	  	 	33.6	% 	 	 	39.2	% 	 	 	36.5	% 	 	 	39.5	% 	
Operating Expenses:	  				 				 				 				
Selling & Marketing	  	 	6,762	 	 	 	6,858	 	 	 	26,884	 	 	 	26,343	 	
Research & Development	  	 	2,216	 	 	 	1,969	 	 	 	8,084	 	 	 	7,813	 	
General & Administrative	  	 	2,912	 	 	 	2,825	 	 	 	11,357	 	 	 	11,123	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	11,890	 	 	 	11,652	 	 	 	46,325	 	 	 	45,279	 	
Operating Income	  	 	(1,645	) 	 	 	2,930	 	 	 	2,433	 	 	 	8,720	 	
	  	 	-5.4	% 	 	 	7.9	% 	 	 	1.8	% 	 	 	6.4	% 	
Other Income, Net	  	 	(274	) 	 	 	(93	) 	 	 	(1,063	) 	 	 	(1,412	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Before Taxes	  	 	(1,919	) 	 	 	2,837	 	 	 	1,370	 	 	 	7,308	 	
Income Tax (Benefit) Provision	  	 	(571	) 	 	 	532	 	 	 	(389	) 	 	 	1,578	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	 	(1,348	) 	 	 	2,305	 	 	 	1,759	 	 	 	5,730	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Basic	  	 	(0.19	) 	 	 	0.33	 	 	 	0.25	 	 	 	0.83	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Diluted	  	 	(0.19	) 	 	 	0.32	 	 	 	0.24	 	 	 	0.81	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	  	 	7,057	 	 	 	6,945	 	 	 	7,024	 	 	 	6,881	 	
Weighted Average Number of Common Shares - Diluted	  	 	7,136	 	 	 	7,163	 	 	 	7,238	 	 	 	7,084	 	

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 6	

ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)

 	  	January 31, 2020	 	 	January 31, 2019	 	
ASSETS	  				 				
CURRENT ASSETS	  				 				
Cash and Cash Equivalents	  	$	4,249	 	 	$	7,534	 	
Accounts Receivable, net	  	 	19,784	 	 	 	23,486	 	
Inventories, net	  	 	33,925	 	 	 	30,161	 	
Prepaid Expenses and Other Current Assets	  	 	2,193	 	 	 	1,427	 	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	60,151	 	 	 	62,608	 	
Property, Plant and Equipment, net	  	 	11,268	 	 	 	10,380	 	
OTHER ASSETS	  				 				
Intangible Assets, net	  	 	25,383	 	 	 	29,674	 	
Goodwill	  	 	12,034	 	 	 	12,329	 	
Deferred Tax Assets	  	 	5,079	 	 	 	2,928	 	
Right of Use Asset	  	 	1,661	 	 	 	—  	 	
Other Assets	  	 	1,088	 	 	 	1,064	 	
	  	 	 	 	 	 	 	 	
TOTAL ASSETS	  	$	116,664	 	 	$	118,983	 	
	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  				 				
CURRENT LIABILITIES	  				 				
Accounts Payable	  	 	4,409	 	 	$	5,956	 	
Accrued Compensation	  	 	2,940	 	 	 	5,023	 	
Other Liabilities and Accrued Expenses	  	 	4,471	 	 	 	2,911	 	
Revolving Credit Facility	  	 	6,500	 	 	 	1,500	 	
Current Portion of Long-Term Debt	  	 	5,208	 	 	 	5,208	 	
Current Portion of Royalty Obligation	  	 	2,000	 	 	 	1,875	 	
Current Liability – Excess Royalty Payment Due	  	 	773	 	 	 	1,265	 	
Deferred Revenue	  	 	466	 	 	 	373	 	
Income Taxes Payable	  	 	—  	 	 	 	554	 	
	  	 	 	 	 	 	 	 	
Total Current Liabilities	  	 	26,767	 	 	 	24,665	 	
NON CURRENT LIABILITIES	  				 				
Long-Term Debt, net of current portion	  	 	7,715	 	 	 	12,870	 	
Royalty Obligation, net of current portion	  	 	8,012	 	 	 	9,916	 	
Lease Liability, net of current portion	  	 	1,279	 	 	 	—  	 	
Deferred Tax Liabilities	  	 	435	 	 	 	40	 	
Other Long Term Liabilities	  	 	1,081	 	 	 	1,717	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES	  	 	45,289	 	 	 	49,208	 	
SHAREHOLDERS’ EQUITY	  				 				
Common Stock	  	 	517	 	 	 	511	 	
Additional Paid-in Capital	  	 	56,130	 	 	 	53,568	 	
Retained Earnings	  	 	49,298	 	 	 	49,511	 	
Treasury Stock	  	 	(33,477	) 	 	 	(32,997	) 	
Accumulated Other Comprehensive Loss, net of tax	  	 	(1,093	) 	 	 	(818	) 	
	  	 	 	 	 	 	 	 	
TOTAL SHAREHOLDERS’ EQUITY	  	 	71,375	 	 	 	69,775	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	  	$	116,664	 	 	$	118,983	 	

					
 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 7	

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

 	 	Three Months Ended	 	 	Twelve Months Ended	 	
 	 	Revenue	 	 	Segment Operating Profit	 	 	Revenue	 	 	Segment Operating Profit	 	
 	 	January 31,
2020	 	 	January 31,
2019	 	 	January 31,
2020	 	 	January 31,
2019	 	 	January 31,
2020	 	 	January 31,
2019	 	 	January 31,
2020	 	 	January 31,
2019	 	
Product Identification	 	$	20,632	 	 	$	23,379	 	 	$	519	 	 	$	2,078	 	 	$	88,116	 	 	$	86,786	 	 	$	7,509	 	 	$	7,910	 	
T&M	 	 	9,847	 	 	 	13,788	 	 	 	748	 	 	 	3,677	 	 	 	45,330	 	 	 	49,871	 	 	 	6,281	 	 	 	11,933	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	$	30,479	 	 	$	37,167	 	 	 	1,267	 	 	 	5,755	 	 	$	133,446	 	 	$	136,657	 	 	 	13,790	 	 	 	19,843	 	
	 	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	 				 				
Corporate Expenses	 				 				 	 	2,912	 	 	 	2,825	 	 				 				 	 	11,357	 	 	 	11,123	 	
	 				 				 	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	
Operating Income	 				 				 	 	(1,645	) 	 	 	2,930	 	 				 				 	 	2,433	 	 	 	8,720	 	
Other Expense-Net	 				 				 	 	(275	) 	 	 	(93	) 	 				 				 	 	(1,063	) 	 	 	(1,412	) 	
	 				 				 	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	 				 				 	 	(1,920	) 	 	 	2,837	 	 				 				 	 	1,370	 	 	 	7,308	 	
Income Tax (Benefit) Provision	 				 				 	 	(572	) 	 	 	532	 	 				 				 	 	(389	) 	 	 	1,578	 	
	 				 				 	 	 	 	 	 	 	 	 				 				 	 	 	 	 	 	 	 	
Net Income	 				 				 	$	(1,348	) 	 	$	2,305	 	 				 				 	$	1,759	 	 	$	5,730	 	

					
 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	 
Page | 8