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 4, 2019

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 December 4, 2019, we issued a press release reporting the financial results for our fiscal third quarter ended November 2, 2019. A copy of the press release relating to that announcement, dated December 4, 2019, 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 STATEMENTS AND EXHIBITS.	
 
(d)	Exhibits	

	Exhibit No.	  		Exhibit	
			
99.1	  	Press Release dated December 4, 2019		
 
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 4, 2019	 		 	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 the
Third Quarter of Fiscal 2020
Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share
Third-Quarter Fiscal 2020 Summary
 
 	•	 	Bookings of $32.6 million	
 
 	•	 	Revenue of $33.3 million	
 
 	•	 	Operating income of $0.4 million	
 
 	•	 	Earnings per diluted share of $0.06	
West Warwick, R.I. - December 4, 2019 - AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2020 third quarter ended November 2, 2019.
CEO Commentary
“Our Test & Measurement segment faced continued headwinds in the third quarter related to the ongoing grounding of the 737 MAX,” said AstroNova President and CEO Greg Woods. “In Product Identification, similar to the second quarter, we experienced some softness primarily as a result of weaker demand from a few customers in Asia. In spite of these short-term challenges, we believe that the underlying fundamentals in both businesses remain strong. We continue to invest in product innovation, strengthen our global marketing organization, and enhance our Aerospace service capabilities to drive and support future growth.
“During the quarter, we launched and showcased several new Product Identification solutions, including the QuickLabel® QL-850, the TrojanLabel® T3-OPX and the TrojanLabel® T2-L, which expand our addressable market, creating new opportunities in the areas of digitally printed labels and flexible packaging,” Woods said. “We’re also particularly excited about the new TrojanLabel® T5, all-in-one digital print and finish in-line labeling solution designed for professional printers and large brand owners.”

AstroNova Reports Q3 FY 2020 Financial Results/ 2
 
Business Outlook
“Our overall outlook remains positive, and we continue to expect modest revenue growth in fiscal 2020,” Woods said. “While the combination of industry headwinds and the investments we are making in future growth are likely to impact near-term results, we are confident in our long-term growth prospects and are well positioned to address favorable secular growth trends across our business.”
Operating Segment Results
Product Identification segment revenue in the third quarter of fiscal 2020 was $21.7 million, consistent with the prior-year period. Segment operating income was $1.9 million, or 8.6% of revenue, versus $2.0 million, or 9.3% of revenue, in the prior year.
Test & Measurement segment revenue in the third quarter of fiscal 2020 was $11.6 million compared with $12.5 million in the same period of fiscal 2019. Segment operating income was $1.4 million, or 12.1% of revenue, for the third quarter of fiscal 2020 compared with $3.2 million, or 25.4% of revenue, in the comparable period of fiscal 2019.
Hardware revenue was $12.2 million, compared with $13.1 million in the prior-year period. Supplies revenue was $17.7 million, down 2.5% from $18.1 million in the same period of fiscal 2019. Service/other revenue was $3.5 million, up 17.1% from same period a year earlier.
Third-Quarter Financial Summary
Revenue totaled $33.3 million versus $34.2 million in the third quarter of fiscal 2019, reflecting lower sales in the Test & Measurement segment.
Gross profit was $12.3 million, or 36.9% of revenue, compared with $13.9 million, or 40.7% of revenue, for Q3 fiscal 2019. The decrease in gross profit dollars and margin was attributable primarily to lower revenue and less favorable sales mix.    
Operating expenses were $11.9 million compared with $11.5 million in the same period of fiscal 2019.
Operating income was $0.4 million, or 1.3% of revenue, compared with $2.4 million, or 6.9% of revenue, in the third quarter of fiscal 2019.
Net income was $0.5 million, or $0.06 per diluted share, versus net income of $1.4 million, or $0.20 per diluted share, in the third quarter of fiscal 2019.
Bookings were $32.6 million compared with $34.2 million in the third quarter of 2019.
Backlog at November 2, 2019 was $20.8 million, compared with $24.5 million at the end of the fiscal 2019 third quarter.

 

600 East Greenwich Avenue	  	NASDAQ: ALOT	  		
West Warwick, RI 02893	  	www.astronovainc.com	  	Page | 2	
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AstroNova Reports Q3 FY 2020 Financial Results/ 3
 
Board Declares Quarterly Dividend
On December 3, 2019, 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 December 26, 2019, to shareholders of record on December 19, 2019.
Third-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 5119055.
You can hear a replay of the conference call from 12:00 p.m. ET Wednesday, December 4 until 12:00 p.m. ET Wednesday, December 11 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 5119055.
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 variety of hardware and software products and associated supplies that allow customers to mark, track and enhance the appearance of their products. The segment’s two business units are QuickLabel®, the industry leader in tabletop digital color label printing and TrojanLabel®, an innovative leader for professional label presses and specialty printers. The Test and Measurement segment includes the Test & Measurement business unit, which offers a suite of products and services that acquire, record and analyze electronic signal data from local and networked sensors. The segment also includes the AstroNova Aerospace business unit, which designs and manufactures avionics equipment and systems that serve the world’s aerospace and defense industries with proven advanced airborne technology solutions for both the cockpit and the cabin. The key products include flight deck printers, networking hardware and related accessories.
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.

 

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

AstroNova Reports Q3 FY 2020 Financial Results/ 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 in fiscal 2020 and the effect of the grounding of the 737 MAX, 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, 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	  	NASDAQ: ALOT	  		
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AstroNova Reports Q3 FY 2020 Financial Results/ 5
 
ASTRONOVA, INC.
Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data
(Unaudited)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	November 2,
2019	 	 	October 27,
2018	 	 	November 2,
2019	 	 	October 27,
2018	 	
Net Revenue	  	$	33,318	 	 	$	34,196	 	 	$	102,967	 	 	$	99,490	 	
Cost of Revenue	  	 	21,021	 	 	 	20,288	 	 	 	64,454	 	 	 	60,073	 	
Gross Profit	  	 	12,297	 	 	 	13,908	 	 	 	38,513	 	 	 	39,417	 	
	  	 	36.9	% 	 	 	40.7	% 	 	 	37.4	% 	 	 	39.6	% 	
Operating Expenses:	  				 				 				 				
Selling & Marketing	  	 	6,944	 	 	 	6,587	 	 	 	20,122	 	 	 	19,484	 	
Research & Development	  	 	2,076	 	 	 	2,123	 	 	 	5,868	 	 	 	5,844	 	
General & Administrative	  	 	2,830	 	 	 	2,836	 	 	 	8,445	 	 	 	8,298	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	11,850	 	 	 	11,546	 	 	 	34,435	 	 	 	33,626	 	
Operating Income	  	 	447	 	 	 	2,362	 	 	 	4,078	 	 	 	5,791	 	
	  	 	1.3	% 	 	 	6.9	% 	 	 	4.0	% 	 	 	5.8	% 	
Other Income, Net	  	 	(238	) 	 	 	(538	) 	 	 	(788	) 	 	 	(1,320	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Before Taxes	  	 	209	 	 	 	1,824	 	 	 	3,290	 	 	 	4,471	 	
Income Tax (Benefit) Provision	  	 	(247	) 	 	 	407	 	 	 	182	 	 	 	1,046	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	456	 	 	$	1,417	 	 	$	3,108	 	 	$	3,425	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Basic	  	$	0.06	 	 	$	0.21	 	 	$	0.44	 	 	$	0.50	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Diluted	  	$	0.06	 	 	$	0.20	 	 	$	0.43	 	 	$	0.49	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	  	 	7,047	 	 	 	6,925	 	 	 	7,016	 	 	 	6,858	 	
Weighted Average Number of Common Shares - Diluted	  	 	7,199	 	 	 	7,167	 	 	 	7,272	 	 	 	7,056	 	

 

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AstroNova Reports Q3 FY 2020 Financial Results/ 6
 
ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)

 	  	November 2, 2019	 	 	January 31, 2019	 	
ASSETS	  				 				
CURRENT ASSETS	  				 				
Cash and Cash Equivalents	  	$	4,468	 	 	$	7,534	 	
Accounts Receivable, net	  	 	22,094	 	 	 	23,486	 	
Inventories, net	  	 	35,594	 	 	 	30,161	 	
Prepaid Expenses and Other Current Assets	  	 	3,059	 	 	 	1,427	 	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	65,215	 	 	 	62,608	 	
Property, Plant and Equipment, net	  	 	11,323	 	 	 	10,380	 	
OTHER ASSETS	  				 				
Intangible Assets, net	  	 	26,454	 	 	 	29,674	 	
Goodwill	  	 	12,110	 	 	 	12,329	 	
Deferred Tax Assets	  	 	3,482	 	 	 	2,928	 	
Right of Use Asset	  	 	1,767	 	 	 	—  	 	
Other Assets	  	 	1,014	 	 	 	1,064	 	
	  	 	 	 	 	 	 	 	
TOTAL ASSETS	  	$	 121,365	 	 	$	 118,983	 	
	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 				
CURRENT LIABILITIES	  				 				
Accounts Payable	  	 	6,674	 	 	 	5,956	 	
Accrued Compensation	  	 	2,968	 	 	 	5,023	 	
Other Liabilities and Accrued Expenses	  	 	3,789	 	 	 	2,911	 	
Current Portion of Long-Term Debt	  	 	5,116	 	 	 	5,208	 	
Revolving Credit Facility	  	 	6,500	 	 	 	1,500	 	
Current Portion of Royalty Obligation	  	 	2,000	 	 	 	1,875	 	
Current Liability - Excess Royalty Payment Due	  	 	419	 	 	 	1,265	 	
Deferred Revenue	  	 	387	 	 	 	373	 	
Income Taxes Payable	  	 	—  	 	 	 	554	 	
	  	 	 	 	 	 	 	 	
Total Current Liabilities	  	 	27,853	 	 	 	24,665	 	
NON CURRENT LIABILITIES	  				 				
Long-Term Debt, net of current portion	  	 	9,004	 	 	 	12,870	 	
Royalty Obligation, net of current portion	  	 	8,488	 	 	 	9,916	 	
Lease Liability, net of current portion	  	 	1,350	 	 	 	—  	 	
Deferred Tax Liabilities	  	 	539	 	 	 	40	 	
Other Long Term Liabilities	  	 	1,178	 	 	 	1,717	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES	  	 	48,412	 	 	 	49,208	 	
SHAREHOLDERS’ EQUITY	  				 				
Common Stock	  	 	518	 	 	 	511	 	
Additional Paid-in Capital	  	 	55,870	 	 	 	53,568	 	
Retained Earnings	  	 	51,142	 	 	 	49,511	 	
Treasury Stock	  	 	(33,454	) 	 	 	(32,997	) 	
Accumulated Other Comprehensive Loss, net of tax	  	 	(1,123	) 	 	 	(818	) 	
	  	 	 	 	 	 	 	 	
TOTAL SHAREHOLDERS’ EQUITY	  	 	72,953	 	 	 	69,775	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	  	$	121,365	 	 	$	118,983	 	

 

					
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AstroNova Reports Q3 FY 2020 Financial Results/ 7
 
ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	Revenue	 	  	Segment Operating Profit	 	 	Revenue	 	  	Segment Operating Profit	 	
 	  	November 2,
2019	 	  	October 27,
2018	 	  	November 2,
2019	 	 	October 27,
2018	 	 	November 2,
2019	 	  	October 27,
2018	 	  	November 2,
2019	 	 	October 27,
2018	 	
Product Identification	  	$	 21,749	 	  	$	 21,684	 	  	$	 1,880	 	 	$	 2,014	 	 	$	67,484	 	  	$	 63,407	 	  	$	6,990	 	 	$	5,833	 	
T&M	  	 	11,569	 	  	 	12,512	 	  	 	1,397	 	 	 	3,184	 	 	 	35,483	 	  	 	36,083	 	  	 	5,533	 	 	 	8,256	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total	  	$	33,318	 	  	$	34,196	 	  	 	3,277	 	 	 	5,198	 	 	$	 102,967	 	  	$	99,490	 	  	 	12,523	 	 	 	14,089	 	
	  	 	 	 	  	 	 	 	  				 				 	 	 	 	  	 	 	 	  				 				
Corporate Expenses	  				  				  	 	2,830	 	 	 	2,836	 	 				  				  	 	8,445	 	 	 	8,298	 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Operating Income	  				  				  	 	447	 	 	 	2,362	 	 				  				  	 	4,078	 	 	 	5,791	 	
Other Expense-Net	  				  				  	 	(238	) 	 	 	(538	) 	 				  				  	 	(788	) 	 	 	(1,320	) 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Income Before Income Taxes	  				  				  	 	209	 	 	 	1,824	 	 				  				  	 	3,290	 	 	 	4,471	 	
Income Tax (Benefit) Provision	  				  				  	 	(247	) 	 	 	407	 	 				  				  	 	182	 	 	 	1,046	 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Net Income	  				  				  	$	456	 	 	$	1,417	 	 				  				  	$	3,108	 	 	$	3,425	 	

 

					
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