Leading Independent Proxy Advisory ISS Supports Compelling Case for Change to AstroNova Board of Directors and Recommends Vote on the GOLD Askeladden Card
Leading proxy advisory firm ISS has endorsed the case for change at AstroNova (NASDAQ:ALOT), recommending shareholders vote for Askeladden nominees Jeff Sands and Samir Patel on the GOLD proxy card. ISS highlighted significant concerns about AstroNova, including a 50% TSR decline over 12 months and the value-destructive MTEX acquisition that resulted in a $13.4M impairment charge on an $18.6M transaction.
ISS criticized the board's independence and oversight, noting persistent execution issues, failed restructuring attempts, and concerning professional ties between directors. The firm specifically recommended voting WITHHOLD for incumbent directors Richard Warzala and Mitchell Quain, citing their responsibility for governance concerns.
La principale società di consulenza proxy ISS ha sostenuto la necessità di cambiamento in AstroNova (NASDAQ:ALOT), consigliando agli azionisti di votare per i candidati di Askeladden, Jeff Sands e Samir Patel, sulla scheda proxy GOLD. ISS ha evidenziato preoccupazioni significative riguardo AstroNova, tra cui un calo del TSR del 50% in 12 mesi e l'acquisizione MTEX, dannosa per il valore, che ha comportato una rettifica di valore di 13,4 milioni di dollari su una transazione da 18,6 milioni di dollari.
ISS ha criticato l'indipendenza e il controllo del consiglio di amministrazione, sottolineando problemi di esecuzione persistenti, tentativi falliti di ristrutturazione e preoccupanti legami professionali tra i direttori. La società ha raccomandato in particolare di VOTARE CONTRO i direttori uscenti Richard Warzala e Mitchell Quain, ritenuti responsabili delle problematiche di governance.
La principal firma asesora de proxies ISS ha respaldado la necesidad de cambio en AstroNova (NASDAQ:ALOT), recomendando a los accionistas votar a favor de los nominados de Askeladden, Jeff Sands y Samir Patel, en la tarjeta proxy GOLD. ISS destacó preocupaciones significativas sobre AstroNova, incluyendo una caída del 50% en el TSR durante 12 meses y la adquisición de MTEX que destruyó valor, resultando en un cargo por deterioro de 13,4 millones de dólares en una transacción de 18,6 millones de dólares.
ISS criticó la independencia y supervisión de la junta, señalando problemas persistentes en la ejecución, intentos fallidos de reestructuración y preocupantes vínculos profesionales entre los directores. La firma recomendó específicamente votar EN CONTRA de los directores actuales Richard Warzala y Mitchell Quain, citando su responsabilidad en los problemas de gobernanza.
주요 의결권 자문 회사 ISS는 AstroNova (NASDAQ:ALOT)의 변화 필요성을 지지하며, 주주들에게 GOLD 의결권 카드에서 Askeladden 후보인 Jeff Sands와 Samir Patel에게 투표할 것을 권고했습니다. ISS는 지난 12개월간 총주주수익률(TSR)이 50% 감소했고, 가치 훼손을 초래한 MTEX 인수1340만 달러의 손상차손이 발생한 점을 강조했습니다.
ISS는 이사회의 독립성과 감독 기능에 문제를 지적하며, 지속적인 실행 문제, 실패한 구조조정 시도, 이사들 간의 우려스러운 직업적 연계를 언급했습니다. 특히 현직 이사 Richard Warzala와 Mitchell Quain에 대해 거버넌스 문제에 책임이 있다고 보고 투표 보류(반대)를 권고했습니다.
La principale société de conseil en vote par procuration ISS a soutenu la nécessité de changement chez AstroNova (NASDAQ:ALOT), recommandant aux actionnaires de voter pour les candidats d'Askeladden, Jeff Sands et Samir Patel, sur la carte proxy GOLD. ISS a souligné des préoccupations importantes concernant AstroNova, notamment une baisse de 50% du TSR sur 12 mois et l'acquisition MTEX destructrice de valeur qui a entraîné une charge de dépréciation de 13,4 millions de dollars sur une transaction de 18,6 millions de dollars.
ISS a critiqué l'indépendance et la supervision du conseil d'administration, notant des problèmes d'exécution persistants, des tentatives de restructuration ratées et des liens professionnels préoccupants entre les administrateurs. La société a spécifiquement recommandé de VOTER CONTRE les administrateurs en place Richard Warzala et Mitchell Quain, les tenant responsables des problèmes de gouvernance.
Die führende Proxy-Beratungsgesellschaft ISS hat den Wandel bei AstroNova (NASDAQ:ALOT) befürwortet und den Aktionären empfohlen, für die von Askeladden nominierten Jeff Sands und Samir Patel auf der GOLD-Proxy-Karte zu stimmen. ISS hob erhebliche Bedenken hinsichtlich AstroNova hervor, darunter einen 50%igen TSR-Rückgang innerhalb von 12 Monaten und die wertvernichtende MTEX-Übernahme, die zu einer 13,4 Mio. USD Wertminderung bei einer Transaktion von 18,6 Mio. USD führte.
ISS kritisierte die Unabhängigkeit und Aufsicht des Vorstands, verwies auf anhaltende Ausführungsprobleme, gescheiterte Restrukturierungsversuche und besorgniserregende berufliche Verbindungen zwischen den Direktoren. Das Unternehmen empfahl ausdrücklich, bei den amtierenden Direktoren Richard Warzala und Mitchell Quain die Stimme ZURÜCKZUBEHALTEN, da diese für Governance-Probleme verantwortlich seien.
- ISS endorsement provides credibility to Askeladden's campaign for board change
- Recommended nominees bring needed independence and turnaround expertise
- Largest shareholder Samir Patel demonstrates thorough business understanding according to ISS
- 50% shareholder value destruction over 12 months
- Failed MTEX acquisition with $13.4M impairment on $18.6M deal
- Persistent execution issues and failed restructuring attempts
- Lack of board independence with concerning professional ties
- Questions about management credibility and ability to execute
ISS finds “change at the Board level is warranted to improve independence and oversight”
ISS observes “pattern […] in which outside forces regularly affect results” and “questions about the management's credibility and ability to execute”
ISS on Board's recent claim that MTEX was a minor setback: “it is difficult to reconcile this sentiment with reality”
ISS states “it was evident that [Samir Patel] has built a thorough understanding of the business”
Askeladden encourages shareholders to vote for all five of our nominees on the GOLD proxy card
FORT WORTH, TX / ACCESS Newswire / June 27, 2025 / Dear AstroNova shareholders:
We are pleased to announce that leading independent proxy advisory firm Institutional Shareholder Services Inc. ("ISS") has concluded that there is a compelling case for change at AstroNova. Contrary to AstroNova's repeated and misleading ad-hominem attacks, ISS highlighted Askeladden's "thorough understanding of the business." In its report, ISS made the following observations*:
On AstroNova's shareholder value destruction:
"[Total shareholder return] is disappointing in both an absolute and a relative sense over all measurement periods. Importantly, TSR declined by over 50 percent over the 12 months through the unaffected date […] The extent of the value destruction demonstrates just how damaging the [MTEX] transaction has been to ALOT."
On AstroNova's persistent execution issues:
"a pattern has emerged in which outside forces regularly affect results. The company promises to fix these quickly, but generally fails to do so. […] The value-destructive acquisition, combined with the execution issues, as well as two announced restructuring programs announced less than two years apart, raise questions about the management's credibility and ability to execute."
On the lack of Board independence and refreshment:
"Four out of the six directors have been on the board between seven and 14 years, and have overseen ongoing execution issues since the pandemic, two restructurings, and the MTEX acquisition […] there are clear concerns with independence and the board's ability to effectively oversee management […] the board appears to have been hesitant to proactively self-refresh, and has at least three directors with prior professional ties to each other or the CEO."
On the MTEX acquisition (emphasis ours):
"The board positions the acquisition as a minor setback, and has argued in its publicly released materials that acquisitions do not always go as planned. It is difficult to reconcile this sentiment with reality, as a
On Askeladden nominees Jeff Sands and Samir Patel, for whom ISS recommends voting FOR:
"Samir Patel is the company's largest shareholder. During engagement with ISS, it was evident that he has built a thorough understanding of the business over several years of investment. He would provide a shareholder's perspective and independence."
"The most important challenge for the company will be turning around its PI segment, which was set back by the failed acquisition of MTEX. Among the dissident nominees, Jeff Sands appears best suited to enhance oversight of the restructuring given his background as a turnaround professional and other experience with multiple small companies. Importantly, like Patel, he also offers much-needed independence."
On incumbent directors Richard Warzala and Mitchell Quain, for whom ISS recommends voting WITHHOLD:
"Quain and Warzala are the incumbent directors most responsible for the concerns underpinning the case for change. Quain is the longest tenured director, and he serves on all key committees. Similarly, Warzala has been the lead independent director since 2020, and he has prior ties to the CEO, which further undermines his independence."
Conclusion
As validated by ISS's analysis and recommendation, Askeladden has outlined a clear case for meaningful change at AstroNova. We encourage fellow shareholders and interested parties to visit askeladdencapital.com/astronova for additional information including Askeladden's published analysis, presentation, and definitive proxy materials.
We urge shareholders to vote to elect directors who truly care about rapidly maximizing shareholder value. If you need assistance in voting the GOLD proxy card, please contact InvestorCom at (877) 972-0090. If you would like to speak to me or any of our candidates, please don't hesitate to contact me directly.
Sincerely,
Samir Patel
samir@askeladdencapital.com
(682) 553-8302
This filing, and future filings, will also be made available to shareholders after dissemination on EDGAR via our website: https://www.askeladdencapital.com/astronova/ These documents will also be available at no cost at www.sec.gov.
*Permission to use quotations from the ISS report was neither sought nor obtained.
Additional Information
Samir Patel, Askeladden Capital Management LLC, Jeff Sands, Shawn Kravetz, Ryan Oviatt and Boyd Roberts (collectively the "Participants") filed a definitive proxy statement and accompanying proxy card with the SEC on May 20, 2025, as amended on May 21, 2025, to be used in soliciting proxies in connection with the 2025 annual meeting of shareholders (the "Annual Meeting") of AstroNova, Inc. (the "Company"). All shareholders of the Company are advised to read the Proxy Statement and other documents related to the solicitation of proxies, each in connection with the Annual Meeting, by the Participants, as they contain important information, including additional information related to the Participants, including a description of their direct or indirect interests by security holdings or otherwise. The Proxy Statement and an accompanying GOLD proxy card will be furnished to some or all of the Company's stockholders and is, along with other relevant documents, available at no charge on the SEC website at http://www.sec.gov, or by contacting Samir Patel at 1452 Hughes Road, Suite 200 #582, Grapevine, TX, 76051.
SOURCE: Askeladden Capital Management LLC
View the original press release on ACCESS Newswire
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