Company to Host Conference Call at 9:00 a.m. ET Today

Third-Quarter Fiscal 2024 Financial Highlights

Revenue of $37.5 million, down 4.7% year over year (YoY)
Gross margin of 39.4%, up 770 basis points YoY
Operating margin of 12.3%, up 890 basis points YoY
Diluted EPS of $0.37, up 825% YoY
Record quarterly Adjusted EBITDA of $5.7 million, or 15% of revenue, up 135% YoY

AstroNova, Inc. (NASDAQ:ALOT), a global leader in data visualization technologies, today reported financial results for the fiscal 2024 third quarter ended October 28, 2023. GAAP diluted earnings per share were $0.37 compared with $0.04 per diluted share in the year-earlier period. Last year's third-quarter GAAP results included transaction costs of $0.07 per diluted share associated with the acquisition of Astro Machine, Inc. at the beginning of that quarter. This is the first quarter in which Astro Machine's results are included in all comparisons with the prior-year periods.

Commentary from Greg Woods, President and Chief Executive Officer

"We delivered significantly improved earnings performance in the third quarter despite an 11% YoY revenue decline in our Product Identification (PI) segment. This decline was largely driven by sidelined printers that were affected by the previously discussed ink quality issues from one of our suppliers and, to a lesser degree, the exit of some low margin printers last quarter from our portfolio. As our retrofitting program continues, the supplies revenue from these printers is expected to recover over the coming quarters.

"Our strong profit and cash flow improvement was fueled by a combination of favorable product mix in both segments, continued focus on expense control and the benefits of the PI segment realignment last quarter.

"Our PI segment generated a 62% increase in third-quarter operating profit as we focus on more profitable products, transition more printer manufacturing from Asia and West Warwick to the Astro Machine plant in Illinois, exit low margin or low volume label printer models, consolidate international sales and distribution facilities, and streamline our global channel partner network.

"Our Test and Measurement segment maintained its strong performance in the third quarter, bolstered by the ongoing post-pandemic rebound of the commercial aviation market. Segment revenue increased 16%, while segment operating profit was up 50%.

"The recently completed strategic restructuring has significantly improved the cost structure and margin profile of the business and we expect both segments to perform in line with these results again in the fourth quarter."

Third-Quarter Fiscal 2024 Income Statement Summary

($ in thousands, except per share data)	Q3 2024	Q3 2023	YoY
Revenue	$37,549	$39,405	(5%)
Gross Profit	$14,779	$12,482	18%
Gross Margin	39.4%	31.7%	770 bps
Operating Expenses	$10,161	$11,136	(9%)
Operating Income	$4,618	$1,346	243%
Operating Margin	12.3%	3.4%	890 bps
Net Income	$2,752	$289	870%
Net Income Per Diluted Share	$0.37	$0.04	825%

Third-Quarter Fiscal 2024 Financial Summary

Total revenue was $37.5 million, down 4.7% from the year-earlier period. The decrease reflected lower revenue in the PI segment, due primarily to lower supplies revenue from printers impacted by the defective ink from one of our larger suppliers and, in part, to the Company's product rationalization initiatives. The decline in PI was partly offset by higher revenue from the Test & Measurement segment.

Hardware revenue was $12.9 million, a 7.7% increase from the prior-year period. Supplies revenue was $20.0 million, down 13% from the same period in fiscal 2023. Revenue from Service/Other was $4.7 million, up 4.4% from the comparable period last year.

Gross profit totaled $14.8 million, or 39.4% of revenue, compared with gross profit of $12.5 million, or 31.7% of revenue, in the year-earlier period. The increase was attributable primarily to favorable product mix, lower manufacturing variances and reduced period costs and the Company's strategic realignment of its PI segment.

Operating expenses were $10.2 million, a decrease of 8.8% from $11.1 million in the same period last year, driven primarily by lower general and administrative expenses.

Operating income increased to $4.6 million, or 12.3% of revenue, from $1.3 million, or 3.4% of revenue, in the same period of fiscal 2023.

The Company reported net income of $2.8 million, or $0.37 per diluted share, compared with $289,000, or $0.04 per diluted share, a year earlier. Net income under Generally Accepted Accounting Principles (GAAP) for the third quarter of fiscal 2023 included transaction costs of $540,000, or $0.07 per diluted share, associated with the August 2022 acquisition of Astro Machine. On a non-GAAP basis, net income for the third quarter of fiscal 2023 was $829,000, or $0.11 per diluted share.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $5.3 million for the third quarter of fiscal 2024, compared with $2.0 million for the same period in fiscal 2023. Excluding the Astro Machine transaction costs, EBITDA for the third quarter of fiscal 2023 was $2.7 million.

Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was $5.7 million, or 15% of revenue, in the third quarter of fiscal 2024, compared with $2.4 million, or 6% of revenue, in the same period of fiscal 2023. Excluding transaction costs, Adjusted EBITDA for the third quarter of fiscal 2023 was $3.1 million.

Bookings for the third quarter of fiscal 2024 increased 1% to $35.5 million from $35.0 million in the third quarter of fiscal 2023.

Backlog as of October 28, 2023 decreased 20% to $31.2 million from $39.3 million as of October 29, 2022.

Third-Quarter Fiscal 2024 Operating Segment Results

Product Identification

PI segment revenue was $26.5 million in the third quarter of fiscal 2024, down 11.2% from $29.9 million in the same period a year earlier. Segment operating profit was $4.8 million, or 18.1% of revenue, compared with $3.0 million, or 9.9% of revenue, in the same period of fiscal 2023.

Test & Measurement

Test & Measurement segment revenue increased 15.5% to $11.0 million in the third quarter of fiscal 2024 from $9.5 million in the same period last year. Segment operating profit was $2.6 million, or 23.2% of revenue, compared with $1.7 million, or 18.0% of revenue, a year earlier.

Earnings Conference Call Information

AstroNova will discuss the third-quarter fiscal 2024 financial results in an investor conference call at 9:00 a.m. ET today. To access the conference call, please dial (833) 470-1428 (U.S. and Canada) or (404) 975-4839 (International) approximately 10 minutes prior to the start time and enter access code 519743. A real-time and an archived audio webcast of the call will be available through the "Investors" section of the AstroNova website, https://investors.astronovainc.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measures EBITDA, Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share.

AstroNova believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of changes in the Company's core operating results and can help investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. AstroNova's management uses these non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring its core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. These measures are also used by the Company's management to assist with their financial and operating decision-making. Please refer to the financial reconciliation tables included in this news release for a reconciliation of GAAP measures to the most directly comparable non-GAAP measures for the three and nine months ended October 28, 2023 and October 29, 2022.

About AstroNova

AstroNova (NASDAQ:ALOT), a global leader in data visualization technologies since 1969, designs, manufactures, distributes, and services a broad range of products that acquire, store, analyze, and present data in multiple formats.

The Product Identification segment provides a wide array of digital, end-to-end product marking and identification solutions, including hardware, software, and supplies for OEMs, commercial printers, and brand owners. The Test and Measurement segment provides products designed for airborne printing solutions, avionics, and data acquisition. Our aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. Our data acquisition systems are used in research and development, flight testing, missile and rocket telemetry production monitoring, power, and maintenance applications.

AstroNova is a member of the Russell Microcap® Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting https://astronovainc.com/.

Forward-Looking Statements

Information included in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words "believes," "expects," "intends," "plans," "anticipates," "likely," "continues," "may," "will," and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning the Company's anticipated performance, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, (i) the risk that we may not be able to realize the expected synergies from our acquisition of Astro Machine, (ii) the risk that apparent improvements in the Aerospace and Defense sectors may not continue and (iii) those factors set forth in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2023 and subsequent filings AstroNova makes with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this news release.

ASTRONOVA, INC.

Condensed Consolidated Statements of Income (Loss)

In Thousands Except for Per Share Data

(Unaudited)

Three Months Ended

Nine Months Ended

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Net Revenue

37,549

39,405

108,493

102,674

Cost of Revenue

22,770

26,923

71,618

68,080

Gross Profit

14,779

12,482

36,875

34,594

Total Gross Profit Margin

39.4%

31.7%

34.0%

33.7%

Operating Expenses:

Selling & Marketing

5,744

5,908

18,451

17,771

Research & Development

1,683

1,903

5,028

5,021

General & Administrative

2,734

3,325

8,514

8,456

Total Operating Expenses

10,161

11,136

31,993

31,248

Operating Income

4,618

1,346

4,882

3,346

Total Operating Margin

12.3%

3.4%

4.5%

3.3%

Other Expense, net

917

955

2,161

1,665

Income Before Taxes

3,701

391

2,721

1,681

Income Tax Provision

949

102

738

383

Net Income

2,752

289

1,983

1,298

Net Income per Common Share - Basic

0.37

0.04

0.27

0.18

Net Income per Common Share - Diluted

0.37

0.04

0.27

0.18

Weighted Average Number of Common Shares - Basic

7,428

7,324

7,407

7,299

Weighted Average Number of Common Shares - Diluted

7,485

7,485

7,477

7,363

ASTRONOVA, INC.
Consolidated Balance Sheets
In Thousands
(Unaudited)

	October 28, 2023			January 31, 2023
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	4,827		$	3,946
Accounts Receivable, net		21,999			21,598
Inventories, net		47,005			51,324
Prepaid Expenses and Other Current Assets		3,056			2,894
Total Current Assets		76,887			79,762
PROPERTY, PLANT AND EQUIPMENT		56,572			55,394
Less Accumulated Depreciation		(42,320	)		(41,106	)
Property, Plant and Equipment, net		14,252			14,288
OTHER ASSETS
Intangible Assets, net		19,420			21,232
Goodwill		14,440			14,658
Deferred Tax Assets		6,903			6,907
Right of Use Asset		650			794
Other Assets		1,651			1,566
TOTAL ASSETS	$	134,203		$	139,207
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable	$	4,893		$	8,479
Accrued Compensation		3,256			2,750
Other Liabilities and Accrued Expenses		4,410			3,308
Revolving Line of Credit		14,900			15,900
Current Portion of Long-Term Debt		2,700			2,100
Current Portion of Royalty Obligation		1,500			1,725
Current Liability – Excess Royalty Payment Due		542			562
Income Taxes Payable		56			786
Deferred Revenue		1,441			1,888
Total Current Liabilities		33,698			37,498
NON-CURRENT LIABILITIES
Long-Term Debt, net of current portion		10,039			12,040
Royalty Obligation, net of current portion		2,476			3,415
Lease Liability, net of current portion		459			555
Income Taxes Payable		491			491
Deferred Revenue		-			674
Deferred Tax Liabilities		152			167
TOTAL LIABILITIES		47,315			54,840
SHAREHOLDERS' EQUITY
Common Stock		540			534
Additional Paid-in Capital		62,340			61,131
Retained Earnings		61,158			59,175
Treasury Stock		(34,588	)		(34,235	)
Accumulated Other Comprehensive Loss, net of tax		(2,562	)		(2,238	)
TOTAL SHAREHOLDERS' EQUITY		86,888			84,367
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	134,203		$	139,207

ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)

	Revenue				Segment Operating Profit						Revenue				Segment Operating Profit
	Three Months Ended				Three Months Ended						Nine Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023			October 29, 2022			October 28, 2023		October 29, 2022		October 28, 2023			October 29, 2022
Product Identification	$	26,543	$	29,879	$	4,794		$	2,960		$	77,416	$	74,985	$	6,848		$	6,019
Test & Measurement		11,006		9,526		2,558			1,711			31,077		27,689		6,548			5,783
Total	$	37,549	$	39,405		7,352			4,671		$	108,493	$	102,674		13,396			11,802
Corporate Expenses						2,734			3,325							8,514			8,456
Operating Income						4,618			1,346							4,882			3,346
Other Income (Expense), net						(917	)		(955	)						(2,161	)		(1,665	)
Income Before Income Taxes						3,701			391							2,721			1,681
Income Tax Provision						949			102							738			383
Net Income					$	2,752		$	289						$	1,983		$	1,298

ASTRONOVA, INC.
Reconciliation of GAAP to Non-GAAP Results
In Thousands Except for Per Share Data
(Unaudited)

		Three Months Ended						Nine Months Ended
		October 28, 2023			October 29, 2022			October 28, 2023			October 29, 2022

GAAP Revenues		$	37,549		$	39,405		$	108,493		$	102,674
Non-GAAP Revenues		$	37,549		$	39,405		$	108,493		$	102,674

GAAP Cost of Revenues		$	22,770		$	26,923		$	71,618		$	68,080
	Restructuring Charges		-			-			2,096			-
	Product Retrofit Costs		-			-			852			-
Non-GAAP Cost of Revenues		$	22,770		$	26,923		$	68,670		$	68,080

GAAP Gross Profit		$	14,779		$	12,482		$	36,875		$	34,594
	Restructuring Charges		-			-			2,096			-
	Product Retrofit Costs	-			-				852		-
Non-GAAP Gross Profit		$	14,779		$	12,482		$	39,823		$	34,594

GAAP Operating Expenses		$	10,161		$	11,136		$	31,993		$	31,248
	Transaction Costs		-			(717	)		-			(717	)
	Restructuring Charges		-			-			(555	)		-
Non-GAAP Operating Expenses		$	10,161		$	10,419		$	31,438		$	30,531

GAAP Operating Income		$	4,618		$	1,346		$	4,882		$	3,346
	Transaction Costs		-			717			-			717
	Restructuring Charges		-			-			2,651			-
	Product Retrofit Costs		-			-			852			-
Non-GAAP Operating Income		$	4,618		$	2,063		$	8,385		$	4,063

GAAP Other Income/(Expense)		$	(917	)	$	(955	)	$	(2,161	)	$	(1,665	)
Non-GAAP Other Income/(Expense)		$	(917	)	$	(955	)	$	(2,161	)	$	(1,665	)

GAAP Income Tax Expense		$	949		$	102		$	738		$	383
	Tax Adjustments of Non-GAAP Adjustments		-			177			797			177
Non-GAAP Income Tax Expense		$	949		$	279		$	1,535		$	560

GAAP Net Income		$	2,752		$	289		$	1,983		$	1,298
	Transaction Costs		-			540			-			540
	Restructuring Charges		-			-			2,048			-
	Product Retrofit Costs		-			-			658			-
Non-GAAP Net Income		$	2,752		$	829		$	4,689		$	1,838

GAAP Diluted Earnings Per Share		$	0.37		$	0.04		$	0.27		$	0.18
	Transaction Costs		-			-			-			0.07
	Restructuring Charges		-			-			0.28			-
	Product Retrofit Costs		-			-			0.09			-
Non-GAAP Diluted Earnings Per Share		$	0.37		$	0.04		$	0.63		$	0.25

ASTRONOVA, INC.
Reconciliation of Net Income to EBITDA
Amounts In Thousands
(Unaudited)

	Three Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022

GAAP Net Income	$	2,752	$	289	$	1,983	$	1,298
Interest Expense		630		701		1,919		1,086
Income Tax Expense		949		102		738		383
Depreciation/Amortization		1,014		915		3,158		2,737
EBITDA	$	5,345	$	2,007	$	7,798	$	5,504
Transaction Costs		-		540		-		540
Restructuring Charges		-		-		2,048		-
Product Retrofit Costs		-		-		658		-
Income Tax Expense - Transaction Costs		-		176		-		176
Income Tax Expense - Restructuring Charges		-		-		603		-
Income Tax Expense - Product Retrofit Costs		-		-		194		-
EBITDA Less Restructuring & Retrofit Items	$	5,345	$	2,723	$	11,301	$	6,220

ASTRONOVA, INC.
Reconciliation of Net Income to Adjusted EBITDA
Amounts In Thousands
(Unaudited)

	Three Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022

GAAP Net Income	$	2,752	$	289	$	1,983	$	1,298
Interest Expense		630		701		1,919		1,086
Income Tax Expense		949		102		738		383
Depreciation/Amortization		1,014		915		3,158		2,737
Share-Based Compensation		311		405		1,065		977
Adjusted EBITDA	$	5,656	$	2,412	$	8,863	$	6,481
Transaction Costs		-		540		-		540
Restructuring Charges		-		-		2,048		-
Product Retrofit Costs		-		-		658		-
Income Tax Expense - Transaction Costs	-			176		-		176
Income Tax Expense - Restructuring Charges	-			-		603		-
Income Tax Expense - Product Retrofit Costs	-			-		194		-
Adjusted EBITDA Less Restructuring & Retrofit Items	$	5,656	$	3,128	$	12,366	$	7,197

ASTRONOVA, INC.
Reconciliation of Segment GAAP to Non-GAAP Operating Income
Amounts In Thousands
(Unaudited)

	Three Months Ended												Nine Months Ended
	October 28, 2023						October 29, 2022						October 28, 2023						October 29, 2022
	Product Identification		Test & Measurement		Total		Product Identification		Test & Measurement		Total		Product Identification		Test & Measurement		Total		Product Identification		Test & Measurement		Total

GAAP - Segment Operating Profit	$	4,794	$	2,558	$	7,352	$	2,960	$	1,711	$	4,671	$	6,848	$	6,548	$	13,396	$	6,019	$	5,783	$	11,802

Restructuring Charges		-		-		-		-		-		-		2,568		-		2,568		-		-		-

Product Retrofit Costs		-		-		-		-		-		-		852		-		852		-		-		-

Non-GAAP - Segment Operating Profit	$	4,794	$	2,558	$	7,352	$	2,960	$	1,711	$	4,671	$	10,268	$	6,548	$	16,816	$	6,019	$	5,783	$	11,802

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AstroNova Reports Fiscal 2024 Third-Quarter Financial Results