AstroNova Reports Fiscal Fourth-Quarter and Full-Year 2021 Financial Results

AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal fourth quarter and full year ended January 31, 2021.

“Our Product Identification segment performed extremely well in fiscal 2021, which marked the segment’s eighth consecutive year of revenue growth,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “In the fourth quarter Product Identification achieved 13.2 percent top-line growth compared to the same quarter last year and posted a record segment operating profit margin for the full year of 14.3 percent. Also in the quarter, we posted the highest number of color printer shipments in more than two years, boosted by a growing response to our enhanced digital marketing initiatives and a strong uptake of new products such as our T3-OPX overprinting solution. Consistent with our recurring revenue model, hardware demand is a leading indicator of demand for our supplies and services.

“In our Test & Measurement segment, our fourth-quarter results continued to be hampered by the effects of the COVID-19 pandemic and the 737 MAX grounding on the aerospace industry,” Woods said. “But with the MAX’s recent return to service and positive news on the vaccine front, we are hopeful that the sequential revenue improvement we saw in our Test & Measurement segment in the fourth quarter marks the early signs of a recovery for the aerospace industry.

“From a geographic standpoint, international revenue grew to 44 percent of total revenue in the fourth quarter from 37 percent in the same period a year earlier,” Woods said. “We saw particular strength in EMEA, where we recently enhanced our marketing team. In addition, we are expanding our presence in China with the opening of a second location, in the southern port city of Guangzhou, complementing our location in Shanghai’s Pilot Free Trade Zone.

“We navigated a challenging fiscal 2021 by focusing on the things within our control. Our first priority was protecting our team by deploying comprehensive global COVID-19 safety measures. Additionally, we moved quickly to realign our workforce, reduce costs and increase liquidity to ensure that we continued to make progress on our long-term strategic growth initiatives, including our innovation investments. As a result, we had no serious COVID-19-related illnesses among our global team; all our facilities remained open and operational; and—despite a $17.4 million aerospace-driven decline in revenue—we posted a full-year operating profit equal to fiscal 2020 and increased Adjusted EBITDA. We remain on pace to launch at least one major product each year, coupled with a range of technology innovations and ancillary products,” Woods concluded.

AstroNova Signs New Credit Agreement

On March 24, 2021, the Company entered into an amendment to the credit agreement with its current lender that provides for a term loan of $10 million and a revolving credit facility of $22.5 million, both expiring on September 30, 2025. In addition, the agreement provides, subject to satisfying certain lender conditions, for an uncommitted accordion provision of up to $10 million. At the closing of the agreement, AstroNova lowered its outstanding bank term loan debt to $10 million, a reduction of $2.6 million from January 31, 2021, with no amounts outstanding under the revolving credit facility.

“The terms of our new credit agreement, including material increases in available credit, extended tenor, improved covenant and pricing terms, and reduced amortization requirements, reflect the operating performance improvements we have achieved in response to the recent market headwinds,” said David Smith, AstroNova’s Chief Financial Officer. “The new agreement supports both our near-to-medium term liquidity requirements and growth objectives.”

Fiscal Q4 2021 Operating Segment Results

Product Identification segment revenue was $23.4 million, compared with $20.6 million in the prior-year period. Segment operating income was $3.1 million, or 13.2% of revenue, compared with $0.5 million, or 2.5% of revenue, in the prior year, reflecting higher revenue, increased efficiencies and reductions in operating costs.

Test & Measurement segment revenue was $6.1 million, compared with $9.8 million in the same period of fiscal 2020, due to the continued grounding of the Boeing 737 MAX and demand falloff in the aerospace industry related to COVID-19. The Test & Measurement segment recorded an operating profit of $0.3 million, or 4.6% of revenue, compared with segment operating income of $0.7 million, or 7.6% of revenue, in the comparable period of fiscal 2020, a direct result of declines in aerospace printer sales and adverse mix, despite lower manufacturing and operating costs.

Hardware revenue was $9.1 million, compared with $11.4 million in the prior-year period, reflecting the weakness in the Test & Measurement segment. Supplies revenue was $17.5 million versus $16.4 million in the same period of fiscal 2020. Service/other revenue was $2.8 million, compared with $2.7 million a year e