UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each classTrading Symbol Name of each exchange on which registered Common Stock, $.05 Par Value ALOT NASDAQ Global Market Securities registered pursuant to Section 12(g) of the Act: None FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tr ...

AstroNova, Inc. (NASDAQ:ALOT) Q4 2023 Earnings Conference Call March 23, 2023 9:00 AM ET Company Participants Scott Solomon - IR, Sharon Merrill Associates Gregory Woods - President and Chief Executive Officer David Smith - Vice President, Treasurer and Chief Financial Officer Conference Call Participants Peter Sidoti - Sidoti & Company George Melas-Kyriazi - MKH Management Operator Good day and welcome to the AstroNova's Fiscal Fourth Quarter and Full Year 2023 Financial Results Conference Call. Today's co ...

Financial Data and Key Metrics Changes - The company reported record revenue of $39.4 million for Q3 2023, representing a year-over-year increase of 37% [7] - Non-GAAP operating income grew to $2.1 million, or 5.2% of revenue, compared to $300,000, or 1% of revenue, in the same period last year [15] - Non-GAAP net income for the quarter was $830,000, or $0.11 per diluted share, compared to $103,000, or $0.01 per share, in the year-ago period [16] Business Line Data and Key Metrics Changes - Product Identification revenue grew 36% to $29 million, largely due to the acquisition of Astro Machine [8] - Test & Measurement segment revenue increased about 38% year-over-year to $9.5 million, with supply shortages impacting potential growth [11] - Hardware sales increased 57% for the quarter to $11.9 million, while supplies revenue was up 27% to $23 million [13] Market Data and Key Metrics Changes - Year-to-date, the US accounted for $65.5 million in revenue, or 63.8% of total sales, with international revenue at $37.2 million, or 36.2% [14] - Bookings in Q3 increased more than 8% year-over-year to $35 million, marking the highest quarterly total since Q1 of fiscal 2020 [17] - Backlog at the end of the quarter increased 46.6% to $39.3 million from $26.8 million in the same period last year [17] Company Strategy and Development Direction - The integration of Astro Machine is on track, with management expressing excitement about future potential from this transaction [19] - The company is focused on new product innovation, including the launch of the QL-E100 full-color tabletop label printer [10] - Management highlighted the importance of expanding distribution channels and cross-selling opportunities following the acquisition [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as inflation, supply chain shortages, and geopolitical volatility but expressed pride in the team's ability to navigate these issues [7] - The company is well-positioned to continue executing its growth strategy, supported by a record backlog and healthy order demand [19] - Management remains optimistic about the underlying fundamentals and secular trends shaping the business [19] Other Important Information - The company incurred $217 million in acquisition-related expenses during the quarter [14] - Inventory levels have grown due to supply chain challenges, and the company is taking measures to reduce inventory [18] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [20]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents AstroNova, Inc.'s unaudited condensed consolidated financial statements for the quarter ended July 30, 2022, along with detailed explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%93%20July%2030%2C%202022%20and%20January%2031%2C%202022) Total assets increased slightly to **$116.3 million** as of July 30, 2022, driven by higher inventories, with stable liabilities and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 30, 2022 | January 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $67,662 | $63,778 | | Inventories, net | $41,727 | $34,609 | | **Total Assets** | **$116,298** | **$114,955** | | **Total Current Liabilities** | $22,521 | $20,035 | | Revolving Line of Credit | $4,500 | $— | | **Total Liabilities** | **$35,202** | **$33,943** | | **Total Shareholders' Equity** | **$81,096** | **$81,012** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20%E2%80%94%20Three%20and%20Six%20Months%20Ended%20July%2030%2C%202022%20and%20July%2031%2C%202021) Q2 FY2023 revenue grew 8.1% to **$32.3 million**, but net income significantly declined to **$0.6 million** compared to the prior year's PPP loan benefit Statement of Income Summary (in thousands, except per share data) | Metric | Q2 2022 (3 Months) | Q2 2021 (3 Months) | H1 2022 (6 Months) | H1 2021 (6 Months) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $32,259 | $29,845 | $63,269 | $58,923 | | Gross Profit | $11,382 | $12,716 | $22,111 | $23,603 | | Operating Income | $1,235 | $3,452 | $1,999 | $4,186 | | Extinguishment of Debt – PPP Loan | $— | $4,466 | $— | $4,466 | | Net Income | $584 | $7,019 | $1,009 | $7,612 | | Diluted EPS | $0.08 | $0.96 | $0.14 | $1.04 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%94%20Six%20Months%20Ended%20July%2030%2C%202022%20and%20July%2031%2C%202021) Net cash used in operating activities was **$3.8 million** for the six months ended July 30, 2022, primarily due to increased inventories Cash Flow Summary (Six Months Ended, in thousands) | Cash Flow Activity | July 30, 2022 | July 31, 2021 | | :--- | :--- | :--- | | Net Cash (Used) Provided by Operating Activities | $(3,819) | $5,493 | | Net Cash Used for Investing Activities | $(163) | $(1,162) | | Net Cash Provided (Used) for Financing Activities | $3,089 | $(4,218) | | **Net Decrease in Cash** | **$(991)** | **$(50)** | | **Cash and Cash Equivalents, End of Period** | **$4,285** | **$11,389** | - The primary use of cash from operations was a **$7.5 million** increase in inventories and a **$2.3 million** increase in accounts payable and accrued expenses, partially offset by a **$3.1 million** Employee Retention Credit receipt[23](index=23&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes detail the company's business segments, accounting policies, debt, and significant events, including the Astro Machine LLC acquisition - The company operates in two segments: Product Identification (PI), including specialty printing systems, and Test & Measurement (T&M), including aerospace and data acquisition products[27](index=27&type=chunk) - On August 4, 2022, the company acquired Astro Machine LLC for **$17.1 million**, financed by a new **$6.0 million** term loan and an increased revolving credit facility[106](index=106&type=chunk) - In the prior fiscal year (FY2022), the company benefited from the forgiveness of a **$4.4 million** PPP loan and recognized a **$3.1 million** Employee Retention Credit, significantly impacting year-over-year comparisons[64](index=64&type=chunk)[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 FY2023 financial performance, highlighting strong T&M revenue growth, lower profitability due to prior-year benefits, and liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 FY2023 revenue increased 8.1% to **$32.3 million** driven by T&M growth, but gross margin and net income significantly declined Q2 FY2023 vs Q2 FY2022 Revenue by Segment (in thousands) | Segment | Q2 FY2023 Revenue | Q2 FY2022 Revenue | % Change | | :--- | :--- | :--- | :--- | | Product Identification | $23,382 | $23,492 | (0.5)% | | T&M | $8,877 | $6,353 | 39.7% | | **Total** | **$32,259** | **$29,845** | **8.1%** | - Q2 gross profit margin decreased to **35.3%** from **42.6%** year-over-year, primarily due to increased manufacturing costs and the absence of a **$1.7 million** Employee Retention Credit benefit in the prior-year quarter[124](index=124&type=chunk) - Q2 net income was **$0.6 million**, or **$0.08** per diluted share, compared to **$7.0 million**, or **$0.96** per diluted share, in the prior year, which included a **$4.5 million** PPP loan forgiveness gain and a **$3.1 million** Employee Retention Credit benefit[128](index=128&type=chunk) [Segment Analysis](index=29&type=section&id=Segment%20Analysis) PI segment revenue was flat with declining operating profit, while T&M revenue surged 39.7% due to aerospace recovery - Product Identification's Q2 operating profit declined to **$1.6 million** from **$4.4 million** year-over-year, attributed to the absence of a **$1.4 million** Employee Retention Credit benefit, unfavorable sales mix, and higher costs[139](index=139&type=chunk) - Test & Measurement's Q2 revenue grew **39.7%** due to a rebound in air travel, leading to higher volume of aerospace repairs, parts, and cockpit printer revenue, with operating profit increasing to **$2.2 million** despite higher component costs[141](index=141&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=30&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Liquidity is supported by operations and a revolving credit facility, with cash used for inventory increases and a subsequent credit agreement amendment for acquisition financing - Net cash used by operating activities was **$3.8 million** for the first half of the year, compared to **$5.5 million** provided in the prior year, mainly due to a significant increase in working capital, particularly inventory[163](index=163&type=chunk) - Inventory increased by **$7.1 million** to **$41.7 million** at quarter-end, a strategic move to create buffer stock against supply chain difficulties and long lead times for components[165](index=165&type=chunk) - Subsequent to the quarter, the company amended its credit agreement, adding a new **$6.0 million** term loan and increasing its revolving credit facility from **$22.5 million** to **$25.0 million** to fund the Astro Machine acquisition[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk disclosures since the Annual Report on Form 10-K for the fiscal year ended January 31, 2022 - There were no material changes to the company's market risk disclosures during the six months ended July 30, 2022[170](index=170&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 30, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the reporting period, the company's disclosure controls and procedures are effective[171](index=171&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[172](index=172&type=chunk) [Part II. Other Information](index=35&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) There are no material pending or threatened legal proceedings against the company - There are no material pending or threatened legal proceedings against the company[173](index=173&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material updates have been made to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2022 - No material updates have been made to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2022[175](index=175&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during the second quarter of fiscal 2023 - The company did not repurchase any shares of its common stock during the second quarter of fiscal 2023[176](index=176&type=chunk)[177](index=177&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements for the Astro Machine LLC acquisition and required CEO/CFO certifications - Exhibits filed include the Equity Interest Purchase Agreement for Astro Machine LLC and the Second Amendment to the Amended and Restated Credit Agreement with Bank of America, N.A., both dated August 4, 2022[178](index=178&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[178](index=178&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report is duly signed on September 8, 2022, by the President and CEO, and the VP, CFO, and Treasurer

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2023 increased by 8% year-over-year, with total bookings reaching $67.3 million, just shy of the previous first half high in fiscal 2020 [6][12] - Revenue for the first half of fiscal 2023 was up approximately 7.4% to $63.3 million, driven by growth in the Test & Measurement (T&M) segment [12] - Operating income for the first half was $2.0 million, representing 3.5% of revenue, compared to $2.1 million or 3.5% of revenue in the same period last year [14] Business Line Data and Key Metrics Changes - The T&M segment saw a revenue increase of 47% to $18.2 million in the first half of fiscal 2023, primarily due to the ramp-up of the Boeing 737 MAX and the recovery of commercial air travel [12] - Service and other revenue in Q2 was up 36% year-over-year to $4.5 million, marking a quarterly record for the company [7] - Product Identification (PI) segment revenue was essentially flat year-over-year but increased nearly 8% from Q1 of fiscal 2023 [8] Market Data and Key Metrics Changes - U.S. revenue accounted for 61% of total business, with international revenue making up the remainder [14] - The company noted strong demand driven by increasing air travel and the growth of digital print for packaging [6] Company Strategy and Development Direction - The company is focused on leveraging favorable secular trends to drive growth and has confidence in its long-term strategy, including M&A and new product development [17] - The acquisition of Astro Machine is expected to enhance expertise in automation and material handling, expand color label printer offerings, and create cross-selling opportunities [10][17] Management Comments on Operating Environment and Future Outlook - Management highlighted that supply chain disruptions, higher component costs, and increased freight expenses continue to impact certain areas of the business [6] - The company is optimistic about returning to normal lead times in the PI segment as production rates improve [8] - Management expects the Astro Machine acquisition to be accretive to earnings in the second half of the year [16] Other Important Information - The company has implemented selective price increases to mitigate the impact of supply chain challenges [6] - Inventory has grown significantly, with a notable increase in T&M segment inventory to support higher demand and build buffer stocks [15][16] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any additional inquiries [18][20]

AstroNova, Inc. (NASDAQ:ALOT) Q1 2023 Earnings Conference Call June 8, 2022 9:00 AM ET Company Participants David Calusdian - Investor Relations, Sharon Merrill Associates Greg Woods - President and Chief Executive Officer David Smith - Vice President and Chief Financial Officer Conference Call Participants Tom Spiro - Spiro Capital George Milos - MKH Management Operator Good day, ladies and gentlemen, and welcome to AstroNova's First Quarter Fiscal 2023 Financial Results Conference Call. Today's conference ...

AstroNova, Inc. (NASDAQ:ALOT) Q4 2022 Earnings Conference Call April 14, 2022 9:00 AM ET Company Participants Scott Solomon - SVP, Sharon Merrill Associates, IR Gregory Woods - President and CEO David Smith - VP, Treasurer and CFO Conference Call Participants Samir Patel - Askeladden Capital John Deysher - Pinnacle Tom Spiro - Spiro Capital Operator Good day, and welcome to AstroNova’s Fiscal Fourth Quarter and Full Year 2022 Financial Results Conference Call. Today’s conference is being recorded [Operator ...

Revenue Performance - Total revenue for fiscal 2022 was $117.5 million, a 1.2% increase from $116.0 million in fiscal 2021[83]. - Revenue from the Product Identification segment was $90.9 million, accounting for 77.4% of total revenue, with a 0.7% increase from the previous year[84]. - Test and Measurement segment revenue was $26.6 million, representing 22.6% of total revenue, with a 3.1% increase compared to fiscal 2021[84]. - Domestic revenue decreased by 3.8% to $68.2 million, while international revenue increased by 9.2% to $49.3 million[84]. - Hardware revenue decreased by $2.6 million or 7.7% to $31.5 million, primarily due to a 10.1% decline in the T&M segment[84]. - Supplies revenue increased by 2.1% to $73.2 million, driven by higher demand for Trojan Label product supplies[84]. - Service and other revenue rose by 25.6% to $12.7 million, attributed to increased repair and parts revenue in both segments[84]. - Revenue from the PI segment increased by 0.7% to $90.9 million, while the T&M segment revenue rose by 3.1% to $26.6 million[89][90]. Profitability - Gross profit for fiscal 2022 was $43.7 million, a 5.8% increase from $41.4 million in fiscal 2021, with a gross profit margin of 37.2%, up 2.4 percentage points from 35.6%[85]. - The PI segment operating profit was $10.4 million with a profit margin of 11.5%, down from 14.3% in the prior year[89]. - The T&M segment achieved an operating profit of $3.4 million, a significant improvement from an operating loss of $1.0 million in the prior year, with a profit margin of 12.8%[90]. - Net income for fiscal 2022 was $6.4 million, or $0.88 per diluted share, compared to $1.3 million, or $0.18 per diluted share in the prior year[85]. Expenses and Investments - Operating expenses increased by 1.4% to $39.5 million in fiscal 2022, with selling and marketing expenses decreasing by 0.5% to $23.2 million[85]. - Research & development costs rose by 8.8% to $6.8 million, representing 5.7% of net revenue compared to 5.3% in the prior year[85]. - The company invested $6.8 million in research and development in fiscal 2022, up from $6.2 million in fiscal 2021[75]. Cash Flow and Debt - Net cash provided by operating activities decreased to $1.4 million in fiscal 2022 from $15.5 million in the previous year, primarily due to a decrease in cash provided by working capital of $11.3 million[96]. - The company recorded a $4.5 million gain on extinguishment of debt following the forgiveness of a $4.4 million PPP Loan[80]. - The effective tax rate for fiscal 2022 was 8.6%, a decrease from 41.1% in fiscal 2021, primarily due to PPP loan forgiveness tax-exempt income[85]. - The principal amount of quarterly installments for the term loan will increase from $187,500 to $500,000 over the fiscal years ending January 31, 2022, to January 31, 2025, with the entire remaining principal balance due by September 30, 2025[92]. - Total indebtedness included $9.25 million of term loan variable-rate debt as of January 31, 2022[108]. - The interest rate on variable-rate debt ranged from 2.35% to 4.65% during fiscal 2022[108]. Accounts and Inventory - The accounts receivable balance decreased slightly to $17.1 million at January 31, 2022, with days sales outstanding dropping to 45 days from 51 days in the previous year[96]. - Year-end inventory increased to $34.6 million at January 31, 2022, with days inventory on hand rising to 156 days compared to 147 days at the end of fiscal 2021[96]. Commitments and Obligations - The company had contractual obligations totaling $1.1 million in fixed lease payment obligations as of January 31, 2022, with $0.3 million due within 12 months[98]. - Purchase commitments totaled $37.5 million as of January 31, 2022, with $35.4 million due within 12 months, most of which are non-cancelable[99]. - The company is subject to a guaranteed minimum royalty payment obligation of $6.4 million, with $2.0 million due within 12 months[99]. Risk Management - The company actively monitors credit risk through credit approvals and limits, presenting accounts receivable net of reserves for doubtful accounts[101]. - Bad debt expense was less than 1% of net sales for both fiscal 2022 and 2021[101]. - Warranty costs are recorded as cost of revenue, and the reserve balance is recorded as an accrued expense, influenced by product failure rates[101]. - The company establishes a reserve for estimated warranty costs at the time product revenue is recognized, based on historical data[101]. Foreign Exchange - A hypothetical 10% change in foreign currency translation rates would result in a $0.2 million increase or decrease in consolidated net income for the year ended January 31, 2022[106]. - Foreign exchange losses from transactional exposure amounted to $0.3 million for the year ended January 31, 2022[107].