AstroNova(US:ALOT)2022-12-06 16:00Revenue and Profitability - Revenue for the three months ended October 29, 2022, was $39,405,000, representing a 37% increase from $28,857,000 for the same period in 2021[13] - Gross profit for the nine months ended October 29, 2022, was $34,594,000, compared to $33,988,000 for the same period in 2021, indicating a slight increase of 1.8%[13] - Net income for the three months ended October 29, 2022, was $289,000, compared to a net loss of $425,000 for the same period in 2021[13] - Operating income for the nine months ended October 29, 2022, was $3,346,000, down from $4,482,000 for the same period in 2021, a decrease of 25.3%[13] - Net income for the nine months ended October 29, 2022, was $1,298,000, a decrease of 82.0% compared to $7,187,000 for the same period in 2021[22] - The company reported a comprehensive loss of $192,000 for the three months ended October 29, 2022, compared to a comprehensive loss of $819,000 for the same period in 2021[15] Assets and Liabilities - Total current assets increased to $81,089,000 as of October 29, 2022, up from $63,778,000 as of January 31, 2022, reflecting a growth of 27%[10] - Total liabilities increased to $58,501,000 as of October 29, 2022, compared to $33,943,000 as of January 31, 2022, marking a rise of 72.5%[10] - Cash and cash equivalents decreased to $4,496,000 as of October 29, 2022, from $5,276,000 as of January 31, 2022, a decline of 14.8%[10] - Total shareholders' equity increased to $81,328,000 as of October 29, 2022, from $81,012,000 as of January 31, 2022, a growth of 0.4%[10] - Current liabilities increased to $41,443,000 as of October 29, 2022, from $20,035,000 on January 31, 2022, marking a rise of approximately 106.5%[10] Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended October 29, 2022, was $(7,455,000), compared to cash provided of $3,848,000 for the same period in 2021[22] - The company reported a net cash decrease of $(780,000) for the nine months ended October 29, 2022, compared to $(2,712,000) for the same period in 2021[22] - Cash and cash equivalents at the end of the period on October 29, 2022, were $4,496,000, down from $8,727,000 at the end of the same period in 2021[22] Acquisitions and Investments - The company completed the acquisition of Astro Machine for $17.1 million on August 4, 2022, which is now part of the Product Identification segment[24] - The preliminary allocation of the purchase price includes $3.867 million for Property, Plant and Equipment and $6.567 million recorded as goodwill[37] - The acquisition of Astro Machine is expected to enhance the company's product identification segment and contribute to future revenue growth[35] Segment Performance - Revenue from hardware sales for the nine months ended October 29, 2022, was $29.885 million, up 29% from $23.147 million in the prior year[41] - The Product Identification segment generated $29.9 million in revenue for the three months ended October 29, 2022, compared to $21.9 million in the same period last year, reflecting a 36.4% increase[106] - The Test & Measurement segment reported revenue of $9.5 million for the three months ended October 29, 2022, up from $6.9 million in the prior year, marking a 37.5% increase[106] Debt and Financing - The company entered into a new term loan of $6.0 million and increased the revolving credit facility from $22.5 million to $25.0 million as part of the Second Amendment to the Amended Credit Agreement[55] - The weighted average interest rate on the outstanding revolving line of credit was 7.32% for the three months ended October 29, 2022, and 5.74% for the nine months ended October 29, 2022[63] - Long-term debt as of October 29, 2022, was $14.625 million, with a maturity date of August 4, 2027[65] Tax and Credits - The effective tax rate for the nine months ended October 29, 2022, was 22.8%, a significant decrease from 4.0% in the same period of the previous year[101] - The company recorded a refundable tax credit of $3.1 million under the Employee Retention Credit (ERC) for wages paid between December 31, 2020, and June 30, 2021, resulting in a reduction of expenses totaling $1.7 million in cost of revenue and $0.8 million in selling and marketing[78] Stock and Compensation - The company has 128,262 unvested restricted stock units (RSUs) and 128,793 unvested performance-based restricted stock units (PSUs) as of October 29, 2022, under the 2018 Equity Incentive Plan[90] - The total outstanding stock options as of October 29, 2022, were 554,099, with a weighted average exercise price of $15.10[97] - Share-based compensation for the nine months ended October 29, 2022, was $977,000, down from $1,345,000 in the same period of 2021[22] Inventory and Supplies - Total inventories increased to $49,992,000 as of October 29, 2022, from $34,609,000 as of January 31, 2022, representing a growth of approximately 44.4%[52] - The inventory reserve increased to $10,116,000 as of October 29, 2022, from $9,307,000 as of January 31, 2022, indicating a rise of approximately 8.7%[52] Other Financial Metrics - The company recognized interest expense of $266,000 and $384,000 for the three and nine months ended October 29, 2022, respectively, compared to $50,000 and $230,000 for the same periods in 2021[65] - The company recorded a total lease payment obligation of $910,000, with maturities scheduled over the next five fiscal years[85] - The company has a total accumulated other comprehensive loss of $(3,565,000) as of October 29, 2022, reflecting foreign currency translation adjustments and cash flow hedges[89]