AstroNova, Inc. (NASDAQ:ALOT) Q3 2022 Earnings Conference Call December 8, 2021 9:00 AM ET Company Participants Greg Woods – President and CEO Scott Solomon – Investor Relations David Smith – Chief Financial Officer Conference Call Participants Dick Ryan – Colliers Operator Good day and welcome to AstroNova's Third Quarter, Fiscal 2022, Financial Results Conference Call. Today's conference is being recorded. I would now like to turn the conference over to Scott Solomon of the Company's Investor Relations fi ...

Revenue Performance - Revenue for the current quarter was $28.9 million, representing a 3.0% increase compared to the prior year third quarter revenue of $28.0 million[137]. - International revenue for the third quarter of the current year was $11.6 million, reflecting a 3.1% increase from the previous year third quarter[137]. - Revenue for the first nine months of the current year was $87.8 million, representing a 1.4% increase compared to the previous year's first nine months revenue[148]. - International revenue for the first nine months of the current year was $36.6 million, a 13.9% increase from the previous year[148]. - Revenue from the Product Identification segment decreased 4.2% to $21.9 million in Q3 2021, down from $22.9 million in Q3 2020, primarily due to a decrease in hardware and supplies sales[158]. - Revenue from the T&M segment increased 35.4% to $6.9 million in Q3 2021, up from $5.1 million in Q3 2020, driven by increased hardware and supplies sales in the aerospace product group[161]. - Revenue from the Product Identification segment increased 2.4% to $68.5 million for the first nine months of 2021, up from $66.9 million in the same period of 2020[160]. - T&M segment revenue for the first nine months of 2021 was $19.3 million, a 2.2% decrease from $19.7 million in the same period of 2020[162]. Profitability and Expenses - Gross profit for the current year third quarter was $10.4 million, a 6.7% increase compared to prior year third quarter gross profit of $9.7 million[141]. - Operating expenses for the current quarter were $10.1 million, an 8.3% increase compared to the prior year third quarter[142]. - R&D expenses were $1.9 million in the current quarter, a 38.0% increase compared to the third quarter of the prior year[142]. - The company reported a net loss of $0.4 million or $0.06 per basic share for the third quarter of the current year[145]. - The company reported net income of $7.2 million, or $1.00 per diluted share, for the first nine months of the current year[155]. Debt and Financial Health - The company recorded a $4.5 million gain on extinguishment of debt after the SBA approved the forgiveness of a $4.4 million PPP Loan[133]. - The company implemented expense reduction and cash preservation initiatives in response to the COVID-19 pandemic, including the suspension of quarterly cash dividends[168]. - The term loan under the Amended Credit Agreement requires quarterly installments, with the entire remaining principal balance due on September 30, 2025[169]. - The net cash position decreased to $8.7 million at October 30, 2021, from $11.4 million at year-end, impacted by cash outflows for debt refinancing and capital expenditures[180]. Inventory and Cash Flow - The company has increased its inventory investments to mitigate potential shortages due to supply chain disruptions[123]. - Accounts receivable decreased to $16.4 million at the end of the third quarter, down from $17.4 million at year-end, with days sales outstanding improving to 47 days from 51 days[179]. - Inventory balance increased to $31.7 million at the end of the third quarter, compared to $30.1 million at year-end, with inventory days on hand rising to 154 days from 147 days[180]. - Net cash provided by operating activities decreased to $3.8 million for the first nine months of fiscal 2022, down from $11.7 million in the same period of the previous year, primarily due to a decrease in cash provided by working capital[178]. Market Conditions and Challenges - The company experienced a revenue reduction of approximately $1.5 million in Q3 FY2022 due to supply shortages caused by the COVID-19 pandemic[123]. - The Test and Measurement segment's sales of flight deck printers for Boeing 737 aircraft have been severely impacted, with production halts leading to low order levels[128]. - The company anticipates that the recovery in demand for aerospace products will be slow, tied to the pace of Boeing's manufacturing and delivery schedules[130]. - The Product Identification segment has been negatively impacted by travel restrictions, affecting sales efforts and in-person demonstrations[125]. - The financial health of airlines and airframe manufacturers remains stressed, impacting the demand for the company's products in the aerospace sector[131]. - The diversified nature of the company's end markets is expected to provide stability to the Product Identification segment in the near and longer term[127]. - The company faces risks including declining demand in the test and measurement markets and challenges in developing new products[184].

Financial Data and Key Metrics Changes - Overall revenue for Q2 2022 was $29.8 million, an increase of 8% year-over-year and 3% sequentially from Q1 2022 [7][17] - Gross profit reached $11.1 million, up 13% from the previous year, with a gross margin of 37.1%, an increase of 170 basis points [17] - Net income was $978,000, or $0.13 per diluted share, compared to essentially break-even last year [17] - EBITDA was reported at $2.1 million, representing 7.2% of revenue, while adjusted EBITDA was $2.6 million, or 8.6% of revenue [17] Business Line Data and Key Metrics Changes - Product Identification revenue increased by 9% to $23.1 million, with strong contributions from hardware, supply, and service categories [9] - Test & Measurement segment revenue rose by 5% year-over-year and 6% sequentially, with notable sales increases in printers, supplies, parts, and repairs [11] - Operating income for the Product Identification segment was $188,000, down from the prior year, while Test & Measurement segment operating profit was $907,000, up from a loss last year [18] Market Data and Key Metrics Changes - Domestic revenue accounted for 57.7% of total revenue, while international revenue made up 42.3% [19] - The aerospace market showed signs of recovery, particularly in the U.S., Europe, and China, although international travel remains below pre-pandemic levels [11] Company Strategy and Development Direction - The company is focusing on increasing inventory levels as a precaution against ongoing supply chain issues [8] - Continued investment in digital marketing and product development is emphasized, with plans to attend major trade shows to enhance customer engagement [10] - The company is positioned to capitalize on growth opportunities in both the Product Identification and Test & Measurement segments [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain challenges but noted they did not significantly impact revenue [20] - The company anticipates a positive revenue trajectory for the Test & Measurement segment in the second half of the year [12] - Management expressed confidence in the recovery of the aerospace market and the demand for their products [11] Other Important Information - The company recorded benefits from the CARES Act, including loan forgiveness and employee retention credits, which positively impacted financial results [14][15] - Cash equivalents at the end of the quarter were $11.4 million, with debt reduced to $9.5 million [21] Q&A Session Summary Question: How much of revenue was impacted by supply chain issues? - Management indicated that while supply chain issues did have some effect, it was not significant and they were able to fulfill most demand [24][25] Question: What is the recurring revenue aspect for Q2? - Supplies revenue for the quarter was $18.7 million, up 9% from the prior year [31] Question: What is the outlook for the A&D side? - Management highlighted a new multiyear government program in the Test & Measurement segment, indicating strong future benefits from this initiative [30] Question: Will both segments see growth in the second half? - Management confirmed that both segments are expected to perform well in the second half of the year [33]

AstroNova, Inc. (NASDAQ:ALOT) Q1 2022 Earnings Conference Call June 10, 2021 9:00 AM ET Company Participants David Calusdian - IR-Sharon Merrill Associates Greg Woods - President and CEO David Smith - CFO Conference Call Participants Dick Ryan - Colliers Operator Good day and welcome to the AstroNova's First Fourth Quarter Fiscal 2022 Financial Results Conference Call. Today's conference is being recorded. I would now like to turn the conference over to David Calusdian of the company's Investor Relations fi ...

AstroNova, Inc. (NASDAQ:ALOT) Q4 2021 Earnings Conference Call March 25, 2021 9:00 AM ET Company Participants David Calusdian – Investor Relations-Sharon Merrill Associates Greg Woods – President and Chief Executive Officer David Smith – Chief Financial Officer Conference Call Participants Samir Patel – Askeladden Capital Dick Ryan – Colliers George Melas – MKH Management Operator Good day, and welcome to the AstroNova's Fiscal Fourth Quarter and Full Year 2021 Financial Results Conference Call. Today's con ...

Table of Contents Emerging growth company ☐ 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 October 31, 2020 OR ☐ 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 I ...

AstroNova, Inc. (NASDAQ:ALOT) Q3 2021 Results Conference Call December 7, 2020 9:00 AM ET Company Participants David Calusdian - Investor Relations, Sharon Merrill Associates Greg Woods - President and Chief Executive Officer David Smith - Chief Financial Officer Conference Call Participants Dick Ryan - Colliers Operator Good day and welcome to the AstroNova's Third Quarter Fiscal 2021 Financial Results Conference Call. Today's conference is being recorded. I would now like to turn the call over to David Ca ...