Table of Contents Common Stock, $.05 Par Value ALOT NASDAQ Global Market 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 November 2, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------------------------------------------- ...

AstroNova Inc. (NASDAQ:ALOT) Q3 2020 Earnings Conference Call December 6, 2019 9:00 AM ET Company Participants Greg Woods - President, Chief Executive Officer David Smith - Vice President, Chief Financial Officer Scott Solomon - Sharon Merrill Associates Conference Call Participants Dick Ryan - Dougherty & Co. Operator Good day and welcome to the AstroNova third quarter 2020 financial results conference call. Today’s conference is being recorded. At this time, I would like to turn the call over to Scott Sol ...

Table of Contents Title of each classTrading SymbolName of each exchange on which registered Common Stock, $.05 Par Value ALOT NASDAQ Global Market 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 August 3, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transit ...

AstroNova, Inc. (NASDAQ:ALOT) Q2 2019 Earnings Conference Call August 28, 2019 9:00 AM ET Company Participants Scott Solomon - VP, Sharon Merrill Associates Greg Woods - President and CEO David Smith - VP, Treasurer and CFO Conference Call Participants Dick Ryan - Dougherty Operator Good day, and welcome to the AstroNova's Second Quarter Fiscal 2020 Results Conference Call. Today's conference call is being recorded. At this time, I would like to turn the call over to Mr. Scott Solomon from the company's Inv ...

Table of Contents Common Stock, $.05 Par Value ALOT NASDAQ Global Market 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 May 4, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------------------------------- ...

AstroNova, Inc. (NASDAQ:ALOT) Q1 2020 Results Earnings Conference Call June 1, 2019 9:00 AM ET Company Participants David Calusdian - IR, Sharon Merrill Associates Greg Woods - President, Chief Executive Officer David Smith - Vice President, Treasurer, Chief Financial Officer Conference Call Participants Dick Ryan - Dougherty Operator Ladies and gentlemen, good day and welcome to the AstroNova's fiscal 2020 first quarter results conference call. Today's conference is being recorded. At this time, I would li ...

PART I [Business](index=3&type=section&id=Item%201.%20Business) AstroNova, Inc. designs, develops, and manufactures specialty printers and data acquisition systems through its Product Identification and Test & Measurement segments, with growth supported by strategic acquisitions - The company's business is structured into two main segments: Product Identification (PI) and Test & Measurement (T&M)[6](index=6&type=chunk) - The Product Identification (PI) segment includes specialty printing systems sold under the QuickLabel®, TrojanLabel®, and GetLabels™ brands, targeting markets like food and beverage, chemicals, and pharmaceuticals for in-house label printing[6](index=6&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - The Test & Measurement (T&M) segment provides data acquisition systems and a line of aerospace flight deck printers used in military, commercial, and business aircraft from manufacturers like Airbus, Boeing, and Gulfstream[6](index=6&type=chunk)[10](index=10&type=chunk) - Recent strategic growth includes the acquisition of TrojanLabel, a European manufacturer of digital color label presses, and an exclusive license from Honeywell International, Inc. for its narrow-format flight deck printers[6](index=6&type=chunk) Order Backlog Trend | Fiscal Year End | Backlog (in millions USD) | | :--- | :--- | | Jan 31, 2019 | $25.6 | | Jan 31, 2018 | $21.4 | | Jan 31, 2017 | $17.6 | [Risk Factors](index=6&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including market dependency, innovation needs, supplier reliance, intense competition, international operation exposures, and potential liabilities - AstroNova's performance is sensitive to economic conditions, as declines in customer markets could reduce demand for its capital equipment and consumable products[20](index=20&type=chunk) - Future revenue growth is dependent on the ability to develop and introduce new products in markets with rapidly changing technologies[21](index=21&type=chunk) - The company relies on single or limited source suppliers for certain components and subcontractors for manufacturing, posing risks of supply chain interruption[22](index=22&type=chunk)[24](index=24&type=chunk) - International sales accounted for **39% of total revenue in fiscal 2019**, exposing the company to risks such as currency fluctuations, trade protection measures, and geopolitical turmoil[29](index=29&type=chunk) - The company may not fully realize the anticipated benefits of past acquisitions (Honeywell, TrojanLabel) due to potential integration challenges, which could divert management attention and incur unexpected costs[36](index=36&type=chunk) - The planned exit of the United Kingdom from the European Union ("Brexit") could negatively impact operations and financial results due to potential trade restrictions, regulatory complexity, and currency volatility[53](index=53&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) AstroNova's principal owned property is its 135,500 square foot corporate headquarters in West Warwick, Rhode Island, supplemented by international owned and leased properties Principal Owned and Leased Properties | Location | Approx. Square Footage | Principal Use | | :--- | :--- | :--- | | West Warwick, RI, USA | 135,500 | Corporate HQ, R&D, Manufacturing, Sales & Service | | Dietzenbach, Germany | 18,630 | Manufacturing, Sales & Service | | Brossard, Quebec, Canada | 4,500 | Manufacturing, Sales & Service | | Elancourt, France | 4,150 | Sales & Service | | Copenhagen, Denmark | 4,800 | R&D | [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no pending or threatened legal proceedings believed to be material to its financial position or results of operations - There are no material pending or threatened legal proceedings against the Company[59](index=59&type=chunk) PART II [Market for Common Stock, Stockholder Matters and Issuer Purchases](index=17&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Stock%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AstroNova's common stock trades on NASDAQ under 'ALOT', with a consistent quarterly dividend policy and an ongoing share repurchase program - The company's common stock trades on the NASDAQ Global Market under the symbol **'ALOT'**[59](index=59&type=chunk) - AstroNova has paid a quarterly cash dividend for **110 consecutive quarters**, with the dividend set at **$0.07 per share** in each quarter of fiscal years 2019, 2018, and 2017[60](index=60&type=chunk) - The company is authorized to repurchase up to **390,000 shares** of its common stock, with no expiration date for the authorization[61](index=61&type=chunk) [Selected Financial Data](index=18&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of AstroNova's historical financial performance, showing consistent revenue growth and increased net income in fiscal 2019 Historical Financial Summary (FY2015-2019) | (In thousands, except per share data) | 2019 (USD) | 2018 (USD) | 2017 (USD) | 2016 (USD) | 2015 (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $136,657 | $113,401 | $98,448 | $94,658 | $88,347 | | **Operating Income** | $8,720 | $5,412 | $6,281 | $5,934 | $7,231 | | **Net Income** | $5,730 | $3,286 | $4,228 | $4,525 | $4,662 | | **Net Income per Share—Diluted** | $0.81 | $0.47 | $0.56 | $0.61 | $0.60 | | **Total Assets** | $118,983 | $122,313 | $83,665 | $77,963 | $74,330 | | **Shareholders' Equity** | $69,775 | $63,647 | $70,537 | $67,373 | $63,511 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) AstroNova's fiscal 2019 revenue grew 20.5% to $136.7 million, driven by the Honeywell acquisition, with improved gross margin and significantly increased net income [Results of Operations](index=19&type=section&id=Results%20of%20Operations) For fiscal 2019, total revenue increased 20.5% to $136.7 million, led by the T&M segment, resulting in a significant rise in net income to $5.7 million Revenue by Segment (FY2019 vs. FY2018) | Segment | FY2019 Revenue (Thousands USD) | FY2018 Revenue (Thousands USD) | % Change | | :--- | :--- | :--- | :--- | | Product Identification | $86,786 | $81,681 | 6.2% | | T&M | $49,871 | $31,720 | 57.2% | | **Total** | **$136,657** | **$113,401** | **20.5%** | Revenue by Type (FY2019 vs. FY2018) | Revenue Type | FY2019 Revenue (Millions USD) | FY2018 Revenue (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Hardware | $53.2M | $37.5M | 41.9% | | Supplies | $71.2M | $65.3M | 9.0% | | Service and other | $12.3M | $10.6M | 16.0% | - Net income for fiscal 2019 was **$5.7 million**, or **$0.81 per diluted share**, a significant increase from **$3.3 million**, or **$0.47 per diluted share**, in fiscal 2018[68](index=68&type=chunk) - For fiscal 2018 compared to 2017, revenue increased **15.2% to $113.4 million**, driven by the Honeywell and TrojanLabel acquisitions, but net income decreased from **$4.2 million to $3.3 million** due to a **$1.1 million tax expense** related to the 2017 Tax Act[71](index=71&type=chunk)[72](index=72&type=chunk) [Segment Analysis](index=22&type=section&id=Segment%20Analysis) In fiscal 2019, PI segment revenue grew 6.2% with a margin decline due to investments, while T&M segment revenue surged 57.2% with a doubled margin driven by the Honeywell product line Segment Operating Profit and Margin | Segment | FY2019 Operating Profit (Thousands USD) | FY2019 Margin (%) | FY2018 Operating Profit (Thousands USD) | FY2018 Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Product Identification | $7,910 | 9.1% | $10,561 | 12.9% | | T&M | $11,933 | 23.9% | $3,754 | 11.8% | - The decrease in the PI segment's operating margin was attributed to significant investments in new product development, sales, and marketing[75](index=75&type=chunk) - The T&M segment's significant increase in revenue and operating margin was primarily due to the first full year of contribution from the acquired Honeywell product line[76](index=76&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and a credit facility, with $7.5 million in cash and $18.2 million in debt as of January 31, 2019, despite a slight decrease in operating cash flow - As of January 31, 2019, the company had **$7.5 million in cash and cash equivalents** and **$8.5 million available** under its revolving credit facility[78](index=78&type=chunk) - Total debt, consisting of two term loans, was **$18.2 million** as of January 31, 2019[79](index=79&type=chunk)[80](index=80&type=chunk)[160](index=160&type=chunk) - Net cash provided by operating activities decreased to **$3.4 million in FY2019** from **$3.7 million in FY2018**, primarily due to payments to Honeywell under the TSA and an increase in inventory to support the production transition[81](index=81&type=chunk) Contractual Obligations (as of Jan 31, 2019) | (In thousands USD) | Total (Thousands USD) | Less than 1 Year (Thousands USD) | 1-3 Years (Thousands USD) | 3-5 Years (Thousands USD) | More than 5 Years (Thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Purchase Commitments | $30,617 | $30,146 | $471 | $— | $— | | Debt | $18,242 | $5,208 | $10,784 | $2,250 | $— | | Royalty Obligation | $11,791 | $1,779 | $3,651 | $3,152 | $3,209 | | Operating Lease Obligations | $2,616 | $574 | $907 | $567 | $568 | [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, inventory valuation, income taxes, intangible asset impairment, and share-based compensation - The company adopted the new revenue recognition standard (Topic 606) on February 1, 2018, using the modified retrospective method, which did not have a material impact on revenue recognition[85](index=85&type=chunk) - Goodwill is tested for impairment annually at the reporting unit level, with a qualitative assessment in fiscal 2019 indicating no impairment[86](index=86&type=chunk) - The 2017 Tax Cuts and Jobs Act required the company to remeasure its U.S. deferred tax assets and liabilities and account for a one-time transition tax on foreign earnings[86](index=86&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) AstroNova is exposed to financial market risks, primarily from foreign currency exchange rates and interest rates, which it manages through hedging strategies - The company's primary foreign currency translation exposure is related to its subsidiaries with functional currencies denominated in the Euro[89](index=89&type=chunk) - Realized and unrealized foreign exchange losses from transactional exposure amounted to **$0.7 million** for the year ended January 31, 2019[90](index=90&type=chunk) - The company utilizes interest rate swaps to hedge the interest rate exposure related to its variable-rate long-term debt[91](index=91&type=chunk) [Changes in and Disagreements with Accountants](index=32&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with its accountants regarding accounting and financial disclosure - None reported[92](index=92&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of January 31, 2019, with no material changes - Management concluded that disclosure controls and procedures were effective as of January 31, 2019[93](index=93&type=chunk) - Management assessed internal control over financial reporting as effective as of January 31, 2019, based on the COSO framework[94](index=94&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=33&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section, largely incorporated by reference from the 2019 proxy statement, details executive officers and confirms the adoption of a Code of Conduct - Most information required by this item is incorporated by reference from the company's definitive proxy statement[96](index=96&type=chunk) - The company has adopted a Code of Conduct that applies to all directors, officers, and employees, and is available on its website[97](index=97&type=chunk) [Executive Compensation](index=34&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for the 2019 Annual Meeting of Shareholders - All information required by this item is incorporated by reference from the Company's definitive Proxy Statement[98](index=98&type=chunk) [Security Ownership and Related Stockholder Matters](index=34&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholders%20Matters) Details on security ownership are incorporated by reference from the 2019 Proxy Statement, including securities to be issued upon option exercise and those available for future issuance Equity Compensation Plan Information (as of Jan 31, 2019) | Plan Category | Securities to be Issued Upon Exercise (Number) | Weighted-Average Exercise Price (USD) | Securities Remaining for Future Issuance (Number) | | :--- | :--- | :--- | :--- | | Approved by Shareholders | 901,664 | $14.30 | 290,593 | [Certain Relationships, Related Transactions and Director Independence](index=34&type=section&id=Item%2013.%20Certain%20Relationships%2C%20Related%20Transactions%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement - All information required by this item is incorporated by reference from the Company's definitive Proxy Statement[100](index=100&type=chunk) [Principal Accountant Fees and Services](index=34&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for the 2019 Annual Meeting of Shareholders - All information required by this item is incorporated by reference from the Company's definitive Proxy Statement[101](index=101&type=chunk) PART IV [Exhibits and Financial Statement Schedule](index=35&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedule) This section provides an index of all financial statements, schedules, and exhibits filed as part of the Form 10-K, including key agreements and financial reports - This item provides an index of all financial statements, schedules, and exhibits included in the Form 10-K filing[101](index=101&type=chunk) - Key exhibits filed include the Credit Agreement with Bank of America, the Asset Purchase and License Agreement with Honeywell, and details of the company's various equity incentive plans[103](index=103&type=chunk)[104](index=104&type=chunk)

Financial Data and Key Metrics Changes - The company reported record fourth quarter revenue of $37.2 million, an increase of approximately 14% year-on-year, and full year revenue increased 21% to $136.7 million [5][17] - Operating profit for Q4 increased 37% to $2.9 million, resulting in an operating margin of 7.9%, with the full year operating margin improving by 160 basis points to 6.4% [6][8] - GAAP EPS in Q4 rose 256% to $0.32, while full year GAAP EPS increased 72% to $0.81 [8][17] Segment Performance Changes - Test & Measurement segment revenues increased over 57% year-on-year, primarily driven by the Aerospace product line, including the Honeywell business [9][19] - Product Identification segment revenue grew 6% in fiscal 2019, with notable performance from the TrojanLabel products [13][19] Market Data and Key Metrics Changes - Domestic revenue for Q4 was $22.9 million, up 22%, representing 61.7% of total revenue, while international revenue was $14.3 million, up 2% year-on-year [18] - For the full year, domestic revenue was $83.7 million (61.2%) and international revenue was $53 million (38.8%) [18] Company Strategy and Industry Competition - The company is focused on product innovation, operational efficiency, and working capital improvement to strengthen competitiveness [26] - The launch of the QL-300 printer is expected to enhance revenue contribution and operational efficiencies [30][31] Management's Comments on Operating Environment and Future Outlook - Management anticipates another strong year for fiscal 2020, with modest revenue growth and a greater percentage of revenue flowing to the bottom line [26] - The integration of the Honeywell Aerospace printer line is expected to be completed by the end of Q2 [11] Other Important Information - The company continues to reduce debt, exiting Q4 with approximately $18.1 million in debt and $7.5 million in cash [23] - A new ERP system is being implemented, expected to be completed midyear, which is anticipated to drive operational improvements [24] Q&A Session Summary Question: Feedback on QL-300 launch and dealer expansion - Management reported strong excitement from both end users and commercial printers regarding the QL-300, particularly due to its unique white toner feature [29] Question: Contribution of new products to revenue margin - Management expects the QL-300 to contribute positively to revenue margins and operational efficiencies in fiscal 2020 [30] Question: Operational improvements and ERP system upgrade - Management highlighted ongoing operational improvements and the expected benefits from the ERP system, although it may initially create extra work [31] Question: Cash EPS and future cash utilization - Management plans to continue paying down debt and will keep cash on the balance sheet until an appropriate use is identified [32] Question: Transition to direct shipping mode - Management confirmed progress in transitioning to direct shipping, with expectations to complete this by midyear [36] Question: Revenue growth estimates for 2020 - Management did not provide specific guidance but noted that the previous year's growth was aided by the Honeywell acquisition [38] Question: Food-safe printing materials - Management clarified that while they do not manufacture food-safe materials in-house, they have agreements with suppliers to ensure compatibility with their printers [39] Question: Impact of 737 MAX issues on shipments - Management does not expect any immediate impact from the 737 MAX issues, as production continues at full speed [43] Question: Long-term margin improvement targets - Management indicated that margin improvements are an ongoing process, with expectations for year-over-year improvements [47] Question: Percentage of sales from consumables and supplies - Management stated that consumables and supplies typically account for around 50% of sales, with expectations to maintain this range [49]

Financial Performance - AstroNova's Q3 FY2019 revenue reached $34.2 million, a 19% year-over-year increase[8] - The company's operating income for Q3 FY2019 was $2.4 million, up 45% year-over-year[8] - AstroNova's Q3 FY2019 operating margin increased by 120 basis points year-over-year to 6.9%[8] - Bookings for Q3 FY2019 were $34.2 million, reflecting a 10% year-over-year increase[8] - Backlog increased by 15% year-over-year to $24.5 million[8] Market and Product Strategy - AstroNova's products convert analog and digital data into text, graphics, and digital signals, focusing on high recurring revenue streams and proprietary consumables[5] - The company launched the Kiaro!® QL-120, a professional tabletop digital label printer, in January 2019[38] - AstroNova acquired TrojanLabel in February 2017, a European manufacturer of digital color label presses and specialty printing systems[45] - The company acquired Honeywell Aerospace product line, which is expected to be accretive in the first full year of ownership[57] Growth and Future Targets - AstroNova is targeting $250 million in revenue by FY2021, compared to $113.4 million in FY2018[72] - The company is aiming for a 17% 5-year CAGR and a 15% operating margin by FY2021[72]