AstroNova, Inc. [ALOT] Filings

10-Q 1 alot-20230729.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 29, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to __________

Commission file number 0-13200

AstroNova, Inc.

(Exact name of registrant as specified in its charter)


Rhode Island	05-0318215
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

600 East Greenwich Avenue, West Warwick, Rhode Island	02893
(Address of principal executive offices)	(Zip Code)

(401) 828-4000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol

Name of each exchange
on which registered

Common Stock, $.05 Par Value

ALOT

NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The number of shares of the registrant’s common stock, $.05 par value per share, outstanding as of September 1, 2023 was 7,424,660.

ASTRONOVA, INC.

INDEX


			Page No.
Part I.		Financial Information
	Item 1.	Financial Statements
		Unaudited Condensed Consolidated Balance Sheets – July 29, 2023 and January 31, 2023	1
		Unaudited Condensed Consolidated Statements of Income (Loss) – Three and Six Months Ended July 29, 2023 and July 30, 2022	2
		Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) – Three and Six Months Ended July 29, 2023 and July 30, 2022	3
		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity – Three and Six Months Ended July 29, 2023 and July 30, 2022	4
		Unaudited Condensed Consolidated Statements of Cash Flows – Six Months Ended July 29, 2023 and July 30, 2022	5
		Notes to the Condensed Consolidated Financial Statements (unaudited)	6-20
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21-29
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
	Item 4.	Controls and Procedures	30
	Part II.	Other Information	31
	Item 1.	Legal Proceedings	31
	Item 1A.	Risk Factors	31
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
	Item 6.	Exhibits	32
		Signatures	33

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

ASTRONOVA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)


	July 29, 2023		January 31, 2023
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	4,530	$	3,946
Accounts Receivable, net		18,005		21,598
Inventories, net		49,081		51,324
Prepaid Expenses and Other Current Assets		2,914		2,894
Total Current Assets		74,530		79,762
Property, Plant and Equipment, net		13,891		14,288
Identifiable Intangibles, net		20,033		21,232
Goodwill		14,760		14,658
Deferred Tax Assets, net		6,909		6,907
Right of Use Asset		735		794
Other Assets		1,692		1,566
TOTAL ASSETS	$	132,550	$	139,207
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts Payable	$	5,356	$	8,479
Accrued Compensation		2,668		2,750
Other Accrued Expenses		4,753		3,308
Revolving Line of Credit		13,900		15,900
Current Portion of Long-Term Debt		2,700		2,100
Current Liability—Royalty Obligation		1,600		1,725
Current Liability—Excess Royalty Payment Due		613		562
Income Taxes Payable		—		786
Deferred Revenue		1,858		1,888
Total Current Liabilities		33,448		37,498
NON-CURRENT LIABILITIES
Long-Term Debt, net of current portion		10,709		12,040
Royalty Obligation, net of current portion		2,789		3,415
Lease Liabilities, net of current portion		530		555
Income Taxes Payable		491		491
Deferred Revenue		—		674
Deferred Tax Liabilities		182		167
TOTAL LIABILITIES		48,149		54,840
SHAREHOLDERS’ EQUITY
Preferred Stock, $10 Par Value, Authorized 100,000 shares, None Issued		—		—
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 10,792,879 and 10,676,851 shares at July 29, 2023 and January 31, 2023, respectively		540		534
Additional Paid-in Capital		62,004		61,131
Retained Earnings		58,406		59,175
Treasury Stock, at Cost, 3,368,219 and 3,342,032 shares at July 29, 2023 and January 31, 2023, respectively		(34,585)		(34,235)
Accumulated Other Comprehensive Loss, net of tax		(1,964)		(2,238)
TOTAL SHAREHOLDERS’ EQUITY		84,401		84,367
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	132,550	$	139,207

See Notes to condensed consolidated financial statements (unaudited).

ASTRONOVA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In Thousands, Except Per Share Data)

(Unaudited)


	Three Months Ended					Six Months Ended
	July 29, 2023		July 30, 2022			July 29, 2023		July 30, 2022
Revenue	$	35,524	$	32,259		$	70,943	$	63,269
Cost of Revenue		25,814		20,877			48,847		41,158
Gross Profit		9,710		11,382			22,096		22,111
Operating Expenses:
Selling and Marketing		6,697		5,981			12,707		11,863
Research and Development		1,557		1,595			3,345		3,118
General and Administrative		2,654		2,571			5,780		5,131
Operating Expenses		10,908		10,147			21,832		20,112
Operating Income (Loss)		(1,198)		1,235			264		1,999
Other Income (Expense), net:
Interest Expense		(674)		(210	)		(1,289)		(385)
Loss on Foreign Currency Transactions		(197)		(242)			(11)		(377)
Other, net		62		21			56		52
		(809)		(431)			(1,244)		(710)
Income (Loss) Before Income Taxes		(2,007)		804			(980)		1,289
Income Tax Provision (Benefit)		(390)		220			(211)		280
Net Income (Loss)	$	(1,617)	$	584		$	(769)	$	1,009
Net Income (Loss) per Common Share—Basic:	$	(0.22)	$	0.08		$	(0.10)	$	0.14
Net Income (Loss) per Common Share—Diluted:	$	(0.22)	$	0.08		$	(0.10)	$	0.14
Weighted Average Number of Common Shares Outstanding:
Basic		7,420		7,310			7,396		7,287
Diluted		7,420		7,348			7,396		7,355

See Notes to condensed consolidated financial statements (unaudited).

ASTRONOVA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In Thousands)

(Unaudited)


	Three Months Ended				Six Months Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net Income (Loss)	$	(1,617)	$	584	$	(769)	$	1,009
Other Comprehensive Income (Loss), Net of Taxes:
Foreign Currency Translation Adjustments		64		(435)		274		(1,368)
Loss from Cash Flow Hedges Reclassified to Income Statement		—		16		—		32
Other Comprehensive Income (Loss)		64		(419)		274		(1,336)
Comprehensive Income (Loss)	$	(1,553)	$	165	$	(495)	$	(327)

See Notes to condensed consolidated financial statements (unaudited).

ASTRONOVA, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

($ In Thousands, Except per Share Data)

(Unaudited)


	Common Stock				Additional Paid-in			Retained		Treasury			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Capital			Earnings		Stock			Income (Loss)			Equity
Balance January 31, 2022		10,566,404	$	528	$	59,692		$	56,514	$	(33,974	)	$	(1,748	)	$	81,012
Share-Based Compensation		—		—	337				—		—			—		337
Employee Option Exercises		11,164		1	87				—		—			—		88
Restricted Stock Awards Vested		61,513		3	(3		)		—	(249		)		—		(249		)
Net Income		—		—		—		425			—			—		425
Other Comprehensive Loss		—		—		—			—		—		(917		)	(917		)
Balance April 30, 2022		10,639,081	$	532	$	60,113		$	56,939	$	(34,223	)	$	(2,665	)	$	80,696
Share-Based Compensation		—		—	235				—		—			—		235
Restricted Stock Awards Vested		20,410		1		(1	)		—		—			—			—
Net Income		—		—		—		584			—			—			584
Other Comprehensive Loss		—		—		—			—		—		(419		)		(419	)
Balance July 30, 2022		10,659,491	$	533	$	60,347		$	57,523	$	(34,223	)	$	(3,084	)	$	81,096

Balance January 31, 2023		10,676,851	$	534	$	61,131		$	59,175	$	(34,235	)	$	(2,238	)	$	84,367
Share-Based Compensation		—		—	356				—		—			—		356
Employee Option Exercises		4,094		—	43				—		—			—		43
Restricted Stock Awards Vested		99,989		4		(4	)		—	(350		)		—		(350		)
Net Income

AstroNova, Inc. [ALOT] Filings
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10-Q	[2023-06-08]
10-K	[2023-04-17]
10-Q	[2022-12-07]
10-Q	[2022-09-08]
10-Q	[2022-06-08]
10-K	[2022-04-18]
10-Q	[2021-12-09]
10-Q	[2021-09-14]
10-Q	[2021-06-10]
10-K	[2021-04-13]
10-Q	[2020-12-09]
10-Q	[2020-09-09]
10-Q	[2020-06-26]
10-K	[2020-04-10]
10-Q	[2019-12-10]
10-Q	[2019-09-09]
10-Q	[2019-06-11]
10-K	[2019-04-10]
10-Q	[2018-12-04]
10-Q	[2018-09-05]
10-Q	[2018-06-06]
10-K	[2018-04-10]
10-Q	[2017-12-07]
10-Q	[2017-09-01]
10-Q	[2017-06-08]
10-K	[2017-04-07]
10-Q	[2016-12-13]
10-Q	[2016-09-13]
10-Q	[2016-06-06]
10-K	[2016-04-08]
10-Q	[2015-12-11]
10-Q	[2015-09-08]
10-Q	[2015-05-29]
10-K	[2015-04-08]
10-Q	[2014-12-10]
10-Q	[2014-09-09]
10-Q	[2014-06-04]
10-K	[2014-04-07]
10-Q	[2013-12-09]
10-Q	[2013-09-09]
10-Q	[2013-06-04]
10-K	[2013-04-08]
10-Q	[2012-12-05]
10-Q	[2012-08-31]
10-Q	[2012-05-25]
10-K	[2012-04-04]