2021 ☐ ☐ ☐☒ 2020:=¨☐ :=¨☐ No ☒:=¨☐ No ☒:=¨ (§:=¨Large accelerated filer ☐ Accelerated filer ☒☐ Non-accelerated filer ☐☒ Smaller reporting company ☒ :=¨August 2, 2019July 31, 2020 was approximately $158,496,000$47,045,000 based on the closing price on the Nasdaq Global Market on that date.3, 2020,7,097,0007,212,977 shares of Common Stock (par value $0.05 per share) of the registrant outstanding.20202021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form
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| PART I | ||||
| Item 1. | 3-7 | |||
| Item 1A. | ||||
| Item 1B. | ||||
| Item 2. | ||||
| Item 3. | ||||
| Item 4. | ||||
| PART II | ||||
| Item 5. | ||||
| Item 6. | ||||
| Item 7. | ||||
| Item 7A. | ||||
| Item 8. | ||||
| Item 9. | ||||
| Item 9A. | ||||
| Item 9B. | ||||
| PART III | ||||
| Item 10. | ||||
| Item 11. | ||||
| Item 12. | ||||
| Item 13. | ||||
| Item 14. | ||||
| PART IV | ||||
| Item 15. | ||||
| Item 16. | ||||
AstroNova designs, develops, manufactures
The Company’s
AstroNova leverages its
AstroNova’s
substrates arematerial, all specifically designed and constructed for a wide variety of labeling applications. Each labelLabel material and substrate issubstrates are carefully qualified and tested in ouron-site Rhode Island Materials Research Laboratory to ensure durability and compatibility with our QuickLabel and TrojanLabel branded products, along with a variety of third-party printers.
airworthiness design.
technology and brand name.names. We consider our intellectual property to be importantcritical to the operation of our business. In particular, we believe that the loss of the trademarks QuickLabel, TrojanLabel, ToughWriter or ToughSwitch
The Company competes
Our management
The Company’s
We continue Until vaccine availability and inoculation rates reach the point where public health authorities determine that the quarantines, travel restrictions, business closures, cancellations of public gatherings and other measures that national, state and local governments have implemented as a result of the pandemic are no longer necessary, we expect our business to be negatively impacted.
However, theCOVID-19 outbreak has caused the Company to experience a number of adverse impacts, including reductions in demand for its products, delays and cancellations of orders for its products,other adaptations undertaken during the pandemic.
While it is not possible at thistransit time, as freight carriers are now experiencing significant delays in overseas shipments. We are addressing these issues through long range planning and supplementing inventories as needed. We are also monitoring the extended lead times on active electronic components and utilizing several strategies, including blanket orders,
Disruptions insupply chain a priority going forward. We are not able to predict what the capital markets as a resultfull impact of theCOVID-19 outbreak may also adversely affect current supply chain difficulties, as it depends on how the Company if thesecourse of thecontinue for a prolonged period andon the Company needs additional liquidity.
The aerospace industry, which we serve through our aerospace product line, has also been significantly disrupted by the outbreak,impact of the decline in air travel has had and will likelycontinue to have a material adverse impact on the Company’sour financial results, the ultimate scope of which we cannot be estimatedestimate at this time. Should one ofor more of our airplane OEM manufacturing customers or a significant number of airline customers fail to continue business as a going concern, or declare bankruptcy, or otherwise permanently reduce the demand for our products as a result of the impact of the crisis, it would have a material adverse impact on our business operations and financial results.
AstroNova’s
AstroNova’s
AstroNova is
AstroNova faces
currently serve and to expand into additional market segments. Additionally, current competitors or new market entrants may develop new products or services with features that could adversely affect the competitive position of our products. To remain competitive, we must develop new products, services and applications and periodically enhance our existing offerings. If we are unable to compete successfully, our customers could seek alternative solutions from our competitors and we could lose market share, which could materially and adversely affect our business, results of operations and financial position.
AstroNova’s
structure
AstroNova’s
AstroNova has
Economic, political and other risks associated with international sales and operations could adversely affect AstroNova’s results of operations and financial position.
Because we sell our products worldwide, our business is subject to risks associated with doing business internationally. Revenue from international operations, which includes both direct and indirect sales to customers
outside the U.S., accounted for 37% of our total revenue for fiscal year 2020, and we anticipate that international sales will continue to account for a significant portion of our revenue. In addition, we have employees, suppliers, contractors and facilities located outside the U.S. Accordingly, our business, operating results and financial condition could be harmed by a variety of factors, including:
Interruption to transportation flows for delivery of parts to us and finished goods to our customers;
Customer and vendor financial stability;
Fluctuations in foreign currency exchange rates;
Changes in a specific country’s or region’s environment including political, economic, monetary, regulatory or other conditions;
Trade protection measures and import or export licensing requirements;
Negative consequences from changes in tax laws;
Difficulty in managing and overseeing operations that are distant and remote from corporate headquarters;
Difficulty in obtaining and maintaining adequate staffing;
Differing labor regulations;
Differing protection of intellectual property;
Unexpected changes in regulatory requirements; and
Geopolitical turmoil, including terrorism, war and public health disruptions, such as that caused by the currentCOVID-19 outbreak.
Brexit
The U.K. formally left the E.U. on January 31, 2020 and has entered a transition period until December 31, 2020. During the transition period, the U.K. and the E.U. will seek to negotiate a trade deal, and the U.K. will remain in both the E.U. customs union and single market. The announcement of Brexit caused significant volatility in global stock markets and currency exchange rate fluctuations that resulted in the strengthening of the U.S. dollar against the foreign currencies in which we conduct business. The withdrawal of the U.K. from the E.U. may also create further global economic uncertainty, which may adversely impact the economies of the U.K., the E.U. countries and other nations. Brexit could subject us to disruptions in trade and the free movement of goods, services and people to and from the UK, increased foreign exchange volatility with respect to the British pound and disruptions to our workforce and that of our suppliers and business partners.
AstroNovaWe could incur liabilities as a result of installed product failures due to design or manufacturing defects.
AstroNova has
AstroNova us to incur significant warranty, and repair or costs and maycause significant customer relations problems such as reputational problems with customers resultingresult in increased costs and lower profitability.
Certain of our products require certifications by customers, regulators or standards organizations, and our failure to obtain or maintain such certifications could negatively impact our business.
In certain industries and for certain products, such as those used in aircraft, we must obtain certifications for our products by customers, regulators or standards organizations. If we fail to obtain required certifications for our products, or if we fail to maintain such certifications on our products after they have been certified, our business, financial condition, results of operations and cash flows could be materially and adversely affected.
Changes in our tax rates or exposure to additional income tax liabilities or assessments could affect our profitability. In addition, audits by tax authorities could result in additional tax payments for prior periods.
As a global company, we are subject to taxation in numerous countries, states and other jurisdictions. As a result, our effective tax rate is based on the tax rates in effect where we operate. In preparing our financial statements, we estimate the amount of tax that will become payable in each jurisdiction. Our effective tax rate may vary as a result of numerous factors, including changes in the mix of our profitability from jurisdiction to jurisdiction, the results of examinations and audits of our tax filings, whether we secure or sustain acceptable arrangements with tax authorities, adjustments to the value of our uncertain tax positions, changes in accounting for income taxes and changes in tax laws, including the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”). Any of these factors could cause us to experience an effective tax rate significantly different from previous periods or our current expectations.
The Tax Act significantly revises the U.S. federal corporate income tax law and includes a broad range of tax reform measures affecting business including among other things, the reduction of the corporate income tax rate from 35% to 21%, the loss of certain business deductions, the acceleration of first-year expensing of certain capital expenditures and aone-time tax imposed on unremitted cumulativenon-U.S. earnings of foreign subsidiaries. The Tax Act is complex andfar-reaching, and we continue to evaluate the actual impact of its enactment on the Company. Any material adverse impact resulting from the Tax Act that has not yet been identified could have an adverse effect on our business, results of operations, financial condition and cash flow.
Further changes in the tax laws of foreign jurisdictions could arise as a result of the base erosion and profit shifting (BEPS) project undertaken by the Organisation for Economic Co-operation and Development (OECD), which represents a coalition of member countries. On October 5, 2015, the OECD issued a series of reports recommending changes to numerous long-standing tax principles. Many of these recommendations or similar concepts are being adopted by various countries in which we do business and may increase our taxes in these countries. Changes to these and other areas in relation to international tax reform, including future actions taken by foreign governments in response to the Tax Act, could increase uncertainty and may adversely affect our tax rate and cash flow in future years.
Changes to tax laws and regulations or changes to the interpretation thereof (including regulations and interpretations pertaining to the Tax Act), the ambiguity of tax laws and regulations, the subjectivity of factual interpretations, uncertainties regarding the geographic mix of earnings in any particular period, and other factors, could have a material impact on our estimates of our effective tax rate and our deferred tax assets and liabilities. The impact of these factors may be substantially differentfrom period-to-period.
In addition, the amount of income taxes we pay is subject to ongoing audits by U.S. federal, state and local tax authorities. If audits result in payments or assessments different from our reserves, our future results may include unfavorable adjustments to our tax liabilities and our financial statements could be adversely affected. Any further significant changes to the tax system in the United States or in other jurisdictions(including changes in the taxation of international income as further described below) could adversely affect our financial statements.
We may have exposure to additional tax liabilities, which could negatively impact our income tax expense, net income and cash flow.
We are subject to income and other taxes in both the U.S. and the foreign jurisdictions in which we operate. The determination of our worldwide provision for income taxes and current and deferred tax assets and liabilities requires significant judgment and estimation. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are subject to regular review and audit by both domestic and foreign tax authorities and to the prospective and retrospective effects of changing tax regulations and legislation. Although we believe our tax estimates are reasonable, the ultimate tax outcome may materially differ from the amounts recorded in our consolidated financial statements and may materially affect our income tax benefit or expense, net loss or income, and cash flows in the period in which such determination is made. As of January 31, 2020, we did not record any liabilities for uncertain tax positions.
Deferred tax assets are recognized for the expected future tax consequences of temporary differences between the carrying amount for financial reporting purposes and the tax bases of assets and liabilities, and for net operating losses and tax credit carry forwards. In some cases, we may record a valuation allowance to reduce our deferred tax assets to estimated realizable value. We review our deferred tax assets and valuation allowance requirements quarterly. If we are unable to demonstrate that it is more likely than not that we will not be able to generate sufficient future taxable income to realize the net carrying value of deferred tax assets, we will record a valuation allowance to reduce the deferred tax assets to estimated realizable value, which could result in a material income tax charge. As part of our review, we consider positive and negative evidence, including cumulative results of recent years.
The agreements governing our indebtedness subject us to various restrictions that limit our ability to pursue business opportunities.
The credit agreement governing our credit facility with Bank of America, N.A., as amended, contains, and any future debt agreements may include, several restrictive covenants that impose significant operating and financial restrictions on us and our subsidiaries. Such restrictive covenants may significantly limit our ability to:
Incur future indebtedness;
Place liens on assets;
Pay dividends or distributions on our and our subsidiaries’ capital stock;
Repurchase or acquire our capital stock;
Conduct mergers or acquisitions;
Sell assets; and/or
Alter our or our subsidiaries’ capital structure, to make investments and loans, to change the nature of their business, and to prepay subordinated indebtedness.
Our credit agreement with Bank of America also requires us to satisfy other requirements, including maintaining certain financial ratios and condition tests. Our ability to meet these requirements can be affected by events beyond our control, and specifically because of the decline in revenue caused by the demand for aircraft cockpit printers for the 737 MAX, the anticipated decline in revenue due to the demand for aircraft due to the currentCOVID-19 pandemic driven decline in revenue passenger miles, as well as the likely decline in demand for some of our PI and other T&M products as a result of theCOVID-19 driven slowdown in general economic activity. At this time, we expect that it is likely that we will violate the current terms of our credit agreement with Bank of America at the end of our first or second quarter of fiscal year 2021. While we expect to be able to renegotiate the terms of the credit agreement, if we are unable to do so or to secure alternative financing on acceptable terms, it will have a material adverse impact on us. To the extent we fail to meet any such requirements and are in default under our debt obligations, our financial condition may be materially adversely
affected. These restrictions may limit our ability to engage in activities that could otherwise benefit us. To the extent that we are unable to engage in activities that support the growth, profitability and competitiveness of our business, results of operations and financial condition could be adversely affected.
In addition, the agreement governing our credit facility permits us to elect to pay interest on our revolving line of credit based on LIBOR or a base rate as specified in the agreement. We also have term loans under our credit facility, as well as derivative instruments with variable interest rates, that are indexed to LIBOR. In July 2017, the Financial Conduct Authority, the authority that regulates LIBOR, announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has proposed the Secured Overnight Financing Rate (SOFR) as the preferred alternative to U.S. Dollar LIBOR (“USD-LIBOR”) for use in debt instruments, derivatives and other financial contracts that are currently indexed to USD-LIBOR. ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR, and organizations are currently working on an industry wide and/or company specific transition from LIBOR to an alternative that will not result in financial market disruptions, significant increases in benchmark rates or financing costs to borrowers. It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United States or elsewhere. To the extent these changes cause the interest rates on our borrowings to increase, our interest expense will increase, which could adversely affect our financial condition, operating results and cash flows.
AstroNova may not realize the anticipated benefits of past or future acquisitions, divestitures and strategic partnerships, and integration of acquired companies or divestiture of businesses may negatively impact AstroNova’s overall business.
We have made strategic investments in other companies, products and technologies. We may continue to identify and pursue acquisitions of complementary companies and strategic assets, such as customer bases, products and technology. However, there can be no assurance that we will be able to identify suitable acquisition opportunities. In any acquisition that we complete we cannot be certain that:
We will successfully integrate the operations of the acquired business with our own;
All the benefits expected from such integration will be realized;
Management’s attention will not be diverted or divided, to the detriment of current operations;
Amortization of acquired intangible assets or possible impairment of acquired intangibles will not have a negative impact on operating results or other aspects of our business;
Delays or unexpected costs related to the acquisition will not have a detrimental impact on our business, operating results and financial condition;
Customer dissatisfaction with, or performance problems at, an acquired company will not have an adverse impact on our reputation; and
Respective operations, management and personnel will be compatible.
In certain instances, as permitted by applicable law and NASDAQ rules, acquisitions may be consummated without seeking and obtaining shareholder approval, in which case shareholders will not have an opportunity to consider and vote upon the merits of such an acquisition. Although we will endeavor to evaluate the risks inherent in an acquisition, there can be no assurance that we will properly ascertain or assess such risks.
We may also divest certain businesses from time to time. Divestitures will likely involve risks, such as difficulty splitting up businesses, distracting employees, potential loss of revenue and negatively impacting margins, and potentially disrupting customer relationships. A successful divestiture depends on various factors, including our ability to:
Effectively transfer assets, liabilities, contracts, facilities and employees to the purchaser;
Identify and separate the intellectual property to be divested from the intellectual property that we wish to keep; and
Reduce fixed costs previously associated with the divested assets or business.
All of these efforts require varying levels of management resources, which may divert our attention from other business operations. Further, if market conditions or other factors lead us to change our strategic direction, we may not realize the expected value from such transactions.
If we are not able to successfully integrate or divest businesses, products, technologies or personnel that we acquire or divest, or able to realize expected benefits of our acquisitions, divestitures or strategic partnerships, AstroNova’s business, results of operations and financial condition could be adversely affected.
Adverse conditions in the global banking industry and credit markets could impair our liquidity or interrupt our access to capital markets, borrowings or financial transactions to hedge certain risks.
At the end of fiscal 2020, we had approximately $4.2 million of cash and cash equivalents. Our cash and cash equivalents are held in a mix of money market funds, bank demand deposit accounts and foreign bank accounts. Disruptions in the financial markets such as those caused by the currentCOVID-19 outbreak may, in some cases, result in an inability to access assets such as money market funds that traditionally have been viewed as highly liquid. Any failure of our counterparty financial institutions or funds in which we have invested may adversely impact our cash and cash equivalent positions and, in turn, our financial position.
To date, we have been able to access financing that has allowed us to make investments in growth opportunities and fund working capital requirements as needed. In addition, we occasionally enter into financial transactions to hedge certain foreign exchange and interest rate risks. Our continued access to capital markets, the stability of our lenders and their willingness to support our needs, and the stability of the counter parties to our financial transactions that hedge risks are essential for us to meet our current and long-term obligations, fund operations, and fund our future strategic initiatives. An interruption in our access to external financing or financial transactions to hedge risk could materially and adversely affect our business and financial condition.
AstroNovaWe could experience a significant disruption in or security breach of our information technology system which could harm our business and adversely affect our results of operations.
AstroNovarisksdisruptions related to the implementation of our new global enterprise resource planning system.
AstroNova depends
AstroNova is subject to laws and regulations; failure to address or comply with these laws and regulations could harm our business and adversely affect our results of operations.
Our operations are subject to laws, rules, regulations, including environmental regulations, government policies and other requirements in each of the jurisdictions in which we conduct business. Changes in laws, rules, regulations, policies or requirements could result in the need to modify our products and could affect the demand for our products, which may have an adverse impact on our future operating results. In addition, we must comply with regulations restricting our ability to include lead and certain other substances in our products. If we do not
comply with applicable laws, rules and regulations we could be subject to costs and liabilities and our business may be adversely impacted.
Certain of our operations and products are subject to environmental, health and safety laws and regulations, which may result in substantial compliance costs or otherwise adversely affect our business.
Our operations are subject to numerous federal, state, local and foreign laws and regulations relating to protection of the environment, including those that impose limitations on the discharge of pollutants into the air and water, establish standards for the use, treatment, storage and disposal of solid and hazardous materials and wastes, and govern the cleanup of contaminated sites. We have used and continue to use various substances in our products and manufacturing operations, and have generated and continue to generate wastes, which have been or may be deemed to be hazardous or dangerous. As such, our business is subject to and may be materially and adversely affected by compliance obligations and other liabilities under environmental, health and safety laws and regulations. These laws and regulations affect ongoing operations and require capital costs and operating expenditures in order to achieve and maintain compliance.
As the result of theCOVID-19 pandemic crisis, we have been required by U.S. federal and state governmental authorities and governmental authorities in non-U.S. jurisdictions, as well as our own desire to adhere to best health and safety practices, to implement a number of policies and procedures that have increased our costs and added complexity and inefficiency to our manufacturing operations and all administrative and office-based functions.
Our operations are subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, and any determination that the Company or any of its subsidiaries has violated the Foreign Corrupt Practices Act could have a material adverse effect on our business.
The U.S. Foreign Corrupt Practices Act (FCPA), the UK Bribery Act and similar worldwide anti-corruption laws generally prohibit companies and their intermediaries from making improper payments to government officials and others for the purpose of obtaining or retaining business. Our internal policies mandate compliance with these anti-corruption laws. We operate in parts of the world that have experienced governmental corruption to some degree, and in certain circumstances, strict compliance with anti-corruption laws may conflict with local customs and practices. Despite our training and compliance programs, there can be no assurance that our internal control policies and procedures will protect us from reckless or criminal acts committed by those of our employees or agents who violate our policies.
Unauthorized access to personal data could give rise to liabilities as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights and compliance with laws designed to prevent unauthorized access of personal data could be costly.
AstroNova collects and stores certain data, including proprietary business information, and may have access to confidential or personal information that is subject to privacy and security laws, regulations and customer-imposed controls. Security breaches or other unauthorized access to, or the use or transmission of, personal user information could result in a variety of claims against us, including privacy-related claims. There are numerous federal, state, local, and international laws and regulations regarding privacy and the storage, sharing, use, processing, disclosure and protection of this kind of information, the scope of which are changing, inconsistent and conflicting and subject to differing interpretations.
We also expect that there will continue to be new laws, regulations, and industry standards concerning privacy, data protection, and information security proposed and enacted in various jurisdictions. For example, in 2016 the European Commission adopted the General Data Protection Regulation (GDPR), a comprehensive privacy and data protection reform that became effective in May 2018. The GDPR, which is applicable to all companies processing data of European Union residents, imposes significant fines and sanctions for violations. Similarly, the California Consumer Privacy Act of 2018 , which was enacted in June 2018 and came into effect
on January 1, 2020, provides a new private right of action for data breaches and requires companies that process information on California residents to make new disclosures to consumers about their data collection, use and sharing practices and allow consumers to opt out of certain data sharing with third parties.
Additionally, other jurisdictions have enacted or are enacting data localization laws that require data generated in or relating to the residents of those jurisdictions to be physically stored within those jurisdictions. In many cases, these laws and regulations apply not only to transfers between unrelated third parties but also to transfers between the Company and its subsidiaries. All of these evolving compliance and operational requirements impose significant costs that are likely to increase over time.
While we continue to assess these requirements and the ways they may impact the conduct of our business, we believe that we materially comply with applicable laws and industry codes of conduct relating to privacy and data protection. There is no assurance that we will not be subject to claims that we have violated applicable laws or codes of conduct, that we will be able to successfully defend against such claims or that we will not be subject to significant fines and penalties in the event we are found not to be in compliance with such laws or codes of conduct.
Any failure or perceived failure by us (or any third parties with whom we have contracted to store such information) to comply with applicable privacy and security laws, policies or related contractual obligations or any compromise of security that results in unauthorized access to personal information may result in governmental enforcement actions, significant fines, litigation, claims of breach of contract and indemnity by third parties and adverse publicity. In the case of such an event, our reputation may be harmed, we could lose current and potential users and the competitive positions of our various brands could be diminished, any or all of which could adversely affect our business, financial condition and results of operations.
We record a liability for our estimated cost of U.S. claims incurred and unpaid as of each balance sheet date. Our estimated liability is recorded on an undiscounted basis and is based on historical trends. Our history of claims activity is closely monitored, and liabilities are adjusted as warranted based on changing circumstances. It is possible, however, that our actual liabilities may exceed our estimates of loss. We may also experience an unexpectedly large number of claims that result in costs or liabilities in excess of our projections, which could cause us to record additional expenses, which could adversely impact our business, financial condition, results of operations and cash flow. We believe that the liabilities we have recorded to date will be sufficient to provide for losses we may incur due to increased
Compliance with rules governing “conflict minerals” could adversely affect the availability of certain product components and our costs and results of operations could be materially harmed.
SEC rules require disclosures regarding the use of “conflict minerals” mined from the Democratic Republic of the Congo and adjoining countries necessary to the functionality or production of products manufactured or contracted to be manufactured. We have determined that we use gold, tin and tantalum, each of which is considered a “conflict mineral” under the SEC rules, as they occur in electronic components supplied to us in the manufacture of our products. Because of this finding, we are required to conduct inquiries designed to determine whether any of the conflict minerals contained in our products originated or may have originated in the conflict region or come from recycled or scrap sources. There are costs associated with complying with these disclosure requirements, including performing due diligence in regards to the source of any conflict minerals used in our products, in addition to the cost of remediation or other changes to products, processes or services of supplies that may be necessary as a consequence of such verification activities. As we use contract manufacturers for some of our products, we may not be able to sufficiently verify the origins of the relevant minerals used in our products through the due diligence procedures that we implement. We may also encounter challenges to satisfy those customers who require that all of the components of our products be certified as conflict-free, which could place us at a competitive disadvantage if we are unable to do so. As a result, our business, operating results and financial condition could be harmed.
| Approximate Square Footage |
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West Warwick, Rhode Island, United States | 135,500 | Corporate headquarters, research and development, manufacturing, sales and service | ||||
AstroNova
| Approximate Square Footage |
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Dietzenbach, Germany | 18,630 | Manufacturing, sales and service | ||||
Copenhagen, Denmark | 4,800 | R&D, sales and service | ||||
Brossard, Quebec, Canada | 4,500 | Manufacturing, sales and service | ||||
Elancourt, France | 4,150 | Sales and service | ||||
Schaumburg, Illinois, United States | 3,428 | |||||
Irvine, California, United States | 3,100 | Sales | ||||
Shah Alam, Selangor, Malaysia | 2,067 | Sales | ||||
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Maidenhead, England | 1,021 | Sales and service | ||||
Shanghai, China | 461 | Sales | ||||
Mexico City, Mexico | 97 | Sales | ||||
Item 5. |
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AstroNova
AstroNova
| Total Number of Shares Repurchased | Average Price paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Be Purchased Under the Plans or Programs | |||||||||||||
November 1 – November 30 | — | — | — | — | ||||||||||||
December 1 – December 31 | — | — | — | — | ||||||||||||
January 1 – January 31 | 1,870 | (a) | 12.71 | (a) | — | — | ||||||||||
Total Number of Shares Repurchased | Average Price paid Per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Be Purchased Under the Plans or Programs | |||||||||||||
November 1 – November 30 | — | — | — | — | ||||||||||||
December 1 – December 31 | — | — | — | — | ||||||||||||
January 1 – January 31 | 1,870 | (a) | 10.53 | (a) | — | — | ||||||||||
| (In thousands, except per share data) | For the Fiscal Years Ended January 31, | |||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Revenue | $ | 133,446 | $ | 136,657 | $ | 113,401 | $ | 98,448 | $ | 94,658 | ||||||||||
Gross profit | 48,758 | 53,999 | 44,002 | 39,489 | 38,158 | |||||||||||||||
Operating income | 2,433 | 8,720 | 5,412 | 6,281 | 5,934 | |||||||||||||||
Income before taxes | 1,370 | 7,308 | 5,157 | 6,605 | 6,909 | |||||||||||||||
Net income | $ | 1,759 | $ | 5,730 | $ | 3,286 | $ | 4,228 | $ | 4,525 | ||||||||||
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Net Income per Common Share—Basic | $ | 0.25 | $ | 0.83 | $ | 0.48 | $ | 0.57 | $ | 0.62 | ||||||||||
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Net income per Common Share—Diluted | $ | 0.24 | $ | 0.81 | $ | 0.47 | $ | 0.56 | $ | 0.61 | ||||||||||
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Dividends Declared per Common Share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | ||||||||||
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Balance Sheet Data
(In thousands) | As of January 31, | |||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Cash and Marketable Securities | $ | 4,249 | $ | 7,534 | $ | 11,688 | $ | 24,821 | $ | 20,419 | ||||||||||
Current Assets | 60,151 | 62,608 | 62,948 | 61,423 | 54,514 | |||||||||||||||
Total assets | 116,664 | 118,983 | 122,313 | 83,665 | 77,963 | |||||||||||||||
Revolving Credit Facility | 6,500 | 1,500 | — | — | — | |||||||||||||||
Current liabilities | 26,767 | 24,665 | 25,912 | 11,985 | 9,548 | |||||||||||||||
Debt, including short term portion | 13,034 | 18,242 | 23,372 | — | — | |||||||||||||||
Shareholders’ equity | $ | 71,375 | $ | 69,775 | $ | 63,647 | $ | 70,537 | $ | 67,373 | ||||||||||
(In thousands, except per share data) | For the Fiscal Years Ended January 31, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Revenue | $ | 116,033 | $ | 133,446 | $ | 136,657 | $ | 113,401 | $ | 98,448 | ||||||||||
Gross Profit | 41,360 | 48,758 | 53,999 | 44,002 | 39,489 | |||||||||||||||
Operating Income | 2,433 | 2,433 | 8,720 | 5,412 | 6,281 | |||||||||||||||
Income before Taxes | 2,179 | 1,370 | 7,308 | 5,157 | 6,605 | |||||||||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | $ | 3,286 | $ | 4,228 | ||||||||||
Net Income per Common Share—Basic | $ | 0.18 | $ | 0.25 | $ | 0.83 | $ | 0.48 | $ | 0.57 | ||||||||||
Net income per Common Share—Diluted | $ | 0.18 | $ | 0.24 | $ | 0.81 | $ | 0.47 | $ | 0.56 | ||||||||||
Dividends Declared per Common Share | $ | 0.07 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | ||||||||||
Balance Sheet Data (In thousands) | As of January 31, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Cash and Marketable Securities | $ | 11,439 | $ | 4,249 | $ | 7,534 | $ | 11,688 | $ | 24,821 | ||||||||||
Current Assets | 60,721 | 60,151 | 62,608 | 62,948 | 61,423 | |||||||||||||||
Total Assets | 115,473 | 116,664 | 118,983 | 122,313 | 83,665 | |||||||||||||||
Revolving Credit Facility | — | 6,500 | 1,500 | — | — | |||||||||||||||
Current Liabilities | 20,968 | 26,767 | 24,665 | 25,912 | 11,985 | |||||||||||||||
Debt, including short term portion | 12,576 | 13,034 | 18,242 | 23,372 | — | |||||||||||||||
Shareholders’ Equity | $ | 74,683 | $ | 71,375 | $ | 69,775 | $ | 63,647 | $ | 70,537 | ||||||||||
AstroNova is
The Company markets
On March 11, 2020, the World Health Organization announced thatCOVID-19, a respiratory illness, caused by a novel coronavirus is apandemic. COVID-19 has spread to many of the countries in which we, our customers, our suppliers and our other business partners conduct business. Governments in affected regions have implemented, and may continue to implement, safety precautions which include quarantines, travel restrictions, business closures, cancellations of public gatherings and other measures as they deem necessary. Many organizations and individuals, including the Company and its employees are taking additional steps to avoid or reduce infection, including limiting travel and staying home from work. These measures are disrupting normal business operations both in and outside of affected areas and have had significant negative impacts on businesses and financial markets worldwide.
We continue to monitor our operations and government recommendations and have made modificationsprudently able to, our normal operations because of theCOVID-19 outbreak, including requiring mostnon-production related team
membersstrategy and operational plans are to work remotely. We have maintained a substantial portion of our manufacturing operational capacity at our primary manufacturing facilities located in West Warwick, Rhode Island, as well as in our manufacturing facilities in Canadamaintain sufficient capabilities and Germany, at this time, and we have instituted heightened cleaning and sanitization standards and several health and safety protocols and proceduresstaffing to safeguard our team members.
TheCOVID-19 outbreak has caused the Company to experience a number of adverse impacts, including reductions in demand for its products, delays and cancellations of orders for its products, difficulties in obtaining raw materials and components for its products, shortages of labor to manufacture products, inefficiencies caused by remote worker’s difficulties in performing their normal work outputs, closures of the facilities of some of its suppliers and customers, delays in collecting accounts receivable. Disruptions in the capital markets as a result of theCOVID-19 outbreak may also adversely affect the Company if these impacts continue for a prolonged period and the Company needs additional liquidity.
The rapid development and uncertainty of the impacts of theCOVID-19 pandemic precludes any prediction as to the ultimate adverse impact of theCOVID-19 outbreak on the Company’s business. However,COVID-19 and the measures taken to contain it present material uncertainty and risk with respect to the Company’s performance and financial results. In particular, the aerospace industry, which the Company serves through its aerospace printer product line, has been significantly disrupted by theCOVID-19 outbreak, both inside and outside of the United States. The decline in air travel and the impact of that decline on demand for our products from our airplane manufacturing customers, the airlines to which we sell directly and through the manufacturers, and the repair and overhaul market and the market for the paper consumed in the printers, could have a material adverse impact on the company’s financial results.
We have reduced direct labor staffing levels in our aerospace manufacturing operations modestly, but the bulk of our expenses related to the aerospace product lines business will be unchanged because of the continued need tofully support our customers and meet the stringent quality requirements the market requires, and to providebe able to rapidly increase production as demand returns, the required sales, engineering, quality, and regulatory compliance and audit activities (among others) necessary to support the restdecline in revenue has adversely impacted our profitability.
2020
| ($ in thousands) | 2020 | 2019 | ||||||||||||||||||
| Revenue | As a % of Total Revenue | % Change Over Prior Year | Revenue | As a % of Total Revenue | ||||||||||||||||
Product Identification | $ | 88,116 | 66.0 | % | 1.5 | % | $ | 86,786 | 63.5 | % | ||||||||||
T&M | 45,330 | 34.0 | % | (9.1 | )% | 49,871 | 36.5 | % | ||||||||||||
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Total | $ | 133,446 | 100.0 | % | (2.3 | )% | $ | 136,657 | 100.0 | % | ||||||||||
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| ($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Revenue | As a % of Total Revenue | % Change Over Prior Year | Revenue | As a % of Total Revenue | ||||||||||||||||
Product Identification | $ | 90,268 | 77.8 | % | 2.4 | % | $ | 88,116 | 66.0 | % | ||||||||||
T&M | 25,765 | 22.2 | % | (43.2 | )% | 45,330 | 34.0 | % | ||||||||||||
Total | $ | 116,033 | 100.0 | % | (13.0 | )% | $ | 133,446 | 100.0 | % | ||||||||||
attributable toa more modest the decline in sales in the PI segment of certain olderQuickLabel model QuickLabel printers such as theQL-120 andQL-800, temperedwhich was entirely offset by the product launch of the newQL-300 andQL-850sales related to printers and increased sales ofin the TrojanLabel printers.
product group.
commercial aircraft flight hours.
costs.
be utilized.
2019
Operations” of our annual report on Form2019,2020, filed with the SEC on April 10, 2019.
2020.
| ($ in thousands) | Revenue | Segment Operating Profit | Segment Operating Profit as a % of Revenue | |||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||
PI | $ | 88,116 | $ | 86,786 | $ | 81,681 | $ | 7,509 | $ | 7,910 | $ | 10,561 | 8.5 | % | 9.1 | % | 12.9 | % | ||||||||||||||||||
T&M | 45,330 | 49,871 | 31,720 | 6,281 | 11,933 | 3,754 | 13.9 | % | 23.9 | % | 11.8 | % | ||||||||||||||||||||||||
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Total | $ | 133,446 | $ | 136,657 | $ | 113,401 | 13,790 | 19,843 | 14,315 | 10.3 | % | 14.5 | % | 12.6 | % | |||||||||||||||||||||
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Corporate Expenses | 11,357 | 11,123 | 8,903 | |||||||||||||||||||||||||||||||||
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Operating Income | 2,433 | 8,720 | 5,412 | |||||||||||||||||||||||||||||||||
Other Expense, Net | (1,063 | ) | (1,412 | ) | (255 | ) | ||||||||||||||||||||||||||||||
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Income Before Income Taxes | 1,370 | 7,308 | 5,157 | |||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) | (389 | ) | 1,578 | 1,871 | ||||||||||||||||||||||||||||||||
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Net Income | $ | 1,759 | $ | 5,730 | $ | 3,286 | ||||||||||||||||||||||||||||||
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| ($ in thousands) | Revenue | Segment Operating Profit (Loss) | Segment Operating Profit (Loss) as a % of Revenue | |||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||
PI | $ | 90,268 | $ | 88,116 | $ | 86,786 | $ | 12,885 | $ | 7,509 | $ | 7,910 | 14.3 | % | 8.5 | % | 9.1 | % | ||||||||||||||||||
T&M | 25,765 | 45,330 | 49,871 | (1,032 | ) | 6,281 | 11,933 | (4.0 | )% | 13.9 | % | 23.9 | % | |||||||||||||||||||||||
Total | $ | 116,033 | $ | 133,446 | $ | 136,657 | 11,853 | 13,790 | 19,843 | (10.2 | )% | 10.3 | % | 14.5 | % | |||||||||||||||||||||
Corporate Expenses | 9,420 | 11,357 | 11,123 | |||||||||||||||||||||||||||||||||
Operating Income | 2,433 | 2,433 | 8,720 | |||||||||||||||||||||||||||||||||
Other Expense, Net | (254 | ) | (1,063 | ) | (1,412 | ) | ||||||||||||||||||||||||||||||
Income Before Income Taxes | 2,179 | 1,370 | 7,308 | |||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) | 895 | (389 | ) | 1,578 | ||||||||||||||||||||||||||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | ||||||||||||||||||||||||||||||
period costs.
Generally,
During the current year, the Company borrowed an additional $5.0 million on its revolving credit facility, and at January 31, 2020 the Company had $6.5 million of borrowings outstanding under that facility. During fiscal 2019, we converted our securities available for sale to cash. Our cash and cash equivalents at January 31, 2020, were $4.2 million and we had $11.0 million remaining available for borrowing under our revolving credit facility.
In April 2020, the Company applied forentered into a loan agreement (the “Loan Agreement”) with and executed a promissory note (the “Promissory Note”) in the amountfavor of approximatelyGreenwood Credit Union (“Greenwood”) pursuant to which we borrowed $4.4 million (the “PPP Loan”) from Bank of America, N.A.Greenwood pursuant to the Paycheck Protection Program (the “PPP”) administered by the United States Small Business Administration (the “SBA”) and authorized by the Keeping American Workers Employed and Paid Act, which is part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020. There can be no assurance that the Company will receive any or all The terms
Indebtedness
The CompanyPPP Loan were subsequently revised in accordance with the provisions of the Paycheck Protection Flexibility Act of 2020 (the “PPP Flexibility Act”), which was enacted on June 5, 2020. We believe that our obtaining the PPP Loan and suspending the Company’s wholly owned Danish subsidiaries, ANI ApSpayment of dividends on our common stock were instrumental in our ability to successfully negotiate the A&R Credit Agreement, as defined below.
Both term loans bear interest at a rate per annum equal to the LIBOR rate plus a margin that varies within a range of 1.0% to 1.5% based on the Company’s consolidated leverage ratio.
In connection with our entry into the A&R Credit Agreement, ANI ApSwe entered into an Amended and Restated Security and Pledge Agreement and a hedging agreement to managemortgage in favor of the variable interest rate risk and currency risk associated with its payments in respect to the term loan.
Under this combined arrangement, payments of principal and interestLender with respect to approximately $8.9 millionour owned real property in West Warwick, Rhode Island. Under the A&R Credit Agreement, AstroNova, Inc. is the sole borrower, and, prior to the effectiveness of the principalAmendment (as defined below), its obligations were guaranteed by ANI ApS and TrojanLabel.
general corporate purposes. Revolving credit loans may be borrowed, at the Company’sour option, in U.S. Dollars or, subject to certain conditions, Euros, British Pounds, Canadian Dollars or Danish Kroner. Amounts borrowed
The obligations of ANI ApS in respect of the $9.2 million term loan are guaranteedA&R Credit Agreement were eliminated by the CompanyAmendment. The primary
exceptions and thresholds as set forth in the Amended Credit Agreement, certain of which provisions were modified by the Amendment.
The Parties must comply with various customary financial andnon-financialdefault, which include, among other events, the following (which are subject, in some cases, to certain grace periods): failure to pay when due any principal, interest or other amounts in respect of the loans, breach of any of our covenants or representations under the loan documents, default under any other of our or our subsidiaries’ significant indebtedness agreements, a bankruptcy, insolvency or similar event with respect to us or any of our subsidiaries, a significant unsatisfied judgment against us or any of our subsidiaries, or a change of control.
AsAgreement continue to be secured by substantially all of our personal property assets (including a pledge of the equity interests held by us in ANI ApS, in our wholly-owned German subsidiary AstroNova GmbH, and in our wholly-owned French subsidiary AstroNova SAS), subject to certain exceptions, and by a mortgage on our owned real property in West Warwick, Rhode Island. Pursuant to the Amendment, the guarantees of our obligations under the A&R Credit Agreement that were previously provided by ANI ApS and TrojanLabel were released.
CARES Act, the PPP Flexibility Act and the regulations and guidance provided by the SBA with respect to the PPP, a portion of the PPP Loan may be forgiven in an amount up to the amount of the PPP Loan proceeds we spent on payroll, rent, utilities and interest on certain debt during the twenty-four week period following incurrence of the PPP Loan; interest accrued on the forgiven portion of the principal amount of the PPP Loan is also forgiven. The amount of the PPP Loan to be forgiven in respect of rent, utilities and interest on certain debt will be capped at 40% of the forgiven amount, with the remaining forgiven amount allocated to payroll costs. We fully utilized the PPP Loan proceeds for qualifying expenses and have applied for forgiveness of the PPP Loan (including all associated accrued interest) subsequent to year end. Whether our application for forgiveness will be granted and in what amount is subject to an application to, and approval by, the SBA and may also be subject to further requirements in any regulations and guidelines the SBA may adopt.
fiscal 2021.
Identification segment andbuild-up of safety stock to fulfill requirements related to the transitioning of certain aerospace customers as a result of the Honeywell Agreement. Also contributing to the inventory increase were delayed shipments to customers in both segments that were subsequently shipped after year endimproved procurement strategies and last-time buy parts and safety stock increases in the T&M segment.
Net cash provided by operating activities was $5.0 million in fiscal 2019 compared to net cash provided by operating activities of $3.7 million in the previous year. The increase in net cash provided by operations for fiscal year 2019 is primarily due to an increase in net income of $2.4 million, an increase innon-cash amortization related to the Honeywell acquisition partially offset by the payment of the prior year’s accrued expenses to Honeywell under the TSA agreement.
The accounts receivable balance was $23.5 million at the end of fiscal year 2019 compared to $22.4 million at the end of fiscal 2018, although the collection cycle decreased to 49 days compared to 55 days at year end. The inventory balance increased to $30.2 million at the end of fiscal 2019, compared to $27.6 million at the end of fiscal 2018 with the inventory days on hand decreasing to 120 days at the end of the current year from 124 days at the prior year end.
production scheduling.
Net cash used by investing activities for fiscal 2019 was $1.5 million, which included $2.6 million for capital expenditures, consisting of $0.1 million for land and building improvements; $1.5$2.4 million for information technology; $0.7 million for machinery and equipment; $0.2$0.1 million for tools and dies; and $0.1 million for furniture, fixtures and other capital expenditures. Cash used for investments in fiscal 2019 was partially offset by $1.5 million of proceeds from sales and maturities of securities available for sale.
Net cash used by investing activities for fiscal 2018 was $20.8 million, which included $23.9 million of cash paid for the TrojanLabel acquisition and the Honeywell Agreement, partially offset by $5.5 million of proceeds from sales and maturities of securities available for sale. Cash used for investing activities for fiscal 2018 included capital expenditures of $2.2 million, consisting of $0.7 million for land and building improvements; $0.7 million for information technology; $0.5 million for machinery and equipment; $0.2 million for tools and dies; and $0.1 million for furniture, fixtures and other capital expenditures.
dies.
Net cash used by financing activities for fiscal 2019 was $6.1 million, primarily as a result of principal payments of $5.1 million on long-term debt, $1.5 million on the Company’s revolving credit facility and $1.6 million on the guaranteed royalty obligations. Cash used for financing was partially offset by borrowings of $3.0 million on the Company’s revolving credit facility in fiscal 2019. The Company did not repurchase any shares of its common stock in fiscal 2019.
Net cash provided by financing activities for fiscal 2018 was $9.1 million and includes $24.2$4.4 million of proceeds received from the PPP loan and a net of $3.5 million of proceeds received in the second quarter of fiscal 2021 related to the issuancerefinance of debt underlong-term debt..
Purchase Commitments (1) Debt Interest on Debt (2) Royalty Obligation (3) Excess Royalty Obligation (4) Operating Lease Obligations 2020, the Company’s2021, our contractual obligations with initial remaining terms in excess of one year were as follows:(In thousands) Total Less than
1 Year 1-3
Years 3-5
Years More than
5 Years $ 22,380 $ 21,216 $ 1,164 $ — $ — 13,034 5,208 7,826 — — 2,124 586 1,295 243 — 10,012 2,000 3,402 2,643 1,967 773 773 — — — 1,905 416 658 442 389 $ 50,228 $ 30,199 $ 14,345 $ 3,328 $ 2,356 (In thousands)
1 Year
Years
Years
5 Years $ 15,250 $ 14,959 $ 291 $ — $ — 12,576 5,326 7,250 — — 648 496 152 — — 8,161 1,300 3,652 1,959 1,250 177 177 — — — 1,599 372 610 347 270 $ 38,411 $ 22,630 $ 11,955 $ 2,306 $ 1,520 (1) (2) (3) provided at the effective fixed rate paid by the Company per the hedging arrangements plus the maximum additional margin payable based on the Company’sLIBOR Rate, plus a margin that varies within a range of 2.15% to 3.65% based on our consolidated leverage ratio for the outstanding loan under the A&R Credit Agreement as of 1.5%.January 31, 2021.(3)(4)The Company istenseven years pursuant to the Honeywell Asset Purchase and License Agreement. Refer to Note 9,11, “Royalty Obligation” in the audited consolidated financial statements included elsewhere in this report for further details.(4)(5)The Company is9,11, “Royalty Obligation,” in the audited consolidated financial statements included elsewhere in this report for further details.The Company isthe Company’sour control.the Company’sour consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Certain of our accounting policies require the application of judgment in selecting the appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. We periodically evaluate the judgments and estimates used for our critical accounting policies to ensure that such judgments and estimates are reasonable for our interim andthe Company’sour historical experience, current trends and information available from other sources, as appropriate. If differentactual conditions resultdiffer from thosethe assumptions used in our judgments, theour financial results could be materially different from our estimates. We believe the following critical accounting policies require significant judgments and estimates in the preparation of our consolidated financial statements:
Topic 606) using the modified retrospective method. Topic 606 was applied to all contracts within the scope of Topic 606 as of the February 1, 2018 adoption date.. Under ASC Topic 606, based on the nature of our contracts and consistent with prior practice, we recognize most of our revenue upon shipment, which is when the performance obligation has been satisfied. Accordingly, the adoption of this standard did not have a material impact on our revenue recognition and there was no cumulative effective adjustment as of February 1, 2018 as a result of the adoption of ASC Topic 606.
2020.
(first-in,
estimate the fair value of our reporting units using the income approach based upon a discounted cash flow model. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating cash flow performance. In addition, we use the market approach, which compares the reporting unit to publicly traded companies and transactions involving similar business, to support the conclusions based upon the income approach. The income approach requires the use of many assumptions and estimates including future revenue, expenses, capital expenditures, and working capital, as well as discount factors and income tax rates. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we record an impairment charge based on that difference.
We have exposure to
2021.
2021.
20202021 to ensure that the information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner and (2) accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.The Company’sThe Company’sOur internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of its financial reporting and the preparation of published financial statements in accordance with generally accepted accounting principles.2020.2021. In making this assessment, management used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, the principal executive officer and principal financial officer believe that as of January 31, 2020, the Company’s2021, our internal control over financial reporting was effective based on criteria set forth by COSO in “Internal Control-Integrated Framework.”The attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting appears in Part IV, Item 15 of this Form10-K and is incorporated herein by reference.
| Age |
| ||||
Gregory A. Woods | President, Chief Executive Officer and Director | |||||
David S. Smith | Vice President, Chief Financial Officer and Treasurer | |||||
Stephen M. Petrarca | 58 | Vice President—Operations | ||||
Michael J. Natalizia | 57 |
| ||||
| Chief Technology Officer and Vice President of Strategic Technical Alliances | |||||
Tom Carll | Vice President and General Manager—Aerospace | |||||
The Company has
“Investors— “Investors—Corporate Governance—Governance Documents.” The Company intendsWe intend to disclose any amendment to, or waiver of, a provision of the Code of Conduct for the CEO, CFO, principal accounting officer, or persons performing similar functions by posting such information on itsour website.
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||||
Equity Compensation Plans Approved by Shareholders | 801,111 | (1) | $ | 14.46 | (2) | 681,759 | (3) | |||||
Equity Compensation Plans Not Approved by Shareholders | — | — | — | |||||||||
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Total | 801,111 | (1) | $ | 14.46 | (2) | 681,759 | (3) | |||||
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Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||||
Equity Compensation Plans Approved by Shareholders | 771,496 | (1) | $ | 14.63 | (2) | 538,853 | (3) | |||||
Equity Compensation Plans Not Approved by Shareholders | — | — | — | |||||||||
Total | 771,496 | (1) | $ | 14.63 | (2) | 538,853 | (3) | |||||
| (1) | Includes |
| (2) | Does not include restricted stock units. |
| (3) | Represents |
Page | ||
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| * |
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| ** | Management contract or compensatory plan or arrangement. |
ASTRONOVA, INC. (Registrant) | ||||||
| Date: April | By: |
| ||||
| (Gregory A. Woods, Chief Executive Officer) | ||||||
April 10, 202013, 2021 April 10, 202013, 2021 April 10, 202013, 2021 April 10, 202013, 2021 April 10, 202013, 2021 April 10, 202013, 2021 April 10, 202013, 2021
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 31, 20202021 and 2019,2020, and the results of its operations and its cash flows for each of the years in the three-year period ended January 31, 20202021 in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 31, 2020, based on criteria established in Internal Control—Integrated Framework (2013) issued by the COSO.
The Company’s management is responsible for these
but not for the purpose of expressing an opinion on the effectiveness of internal control over financial reporting. Accordingly, we express no such opinion.
Definition and Limitationsopinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertainwere communicated or required to be communicated to the maintenance of recordsaudit committee and that: (1) relate to accounts or disclosures that in reasonable detail, accurately and fairly reflectare material to the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effectany way our opinion on the financial statements.
Becausestatements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
included, among others (i) evaluating the qualifications of the third-party expert engaged by management; (ii) testing management’s, and the third-party expert’s, process for developing the fair value estimates, including consideration of the appropriateness of the methods used; (iii) testing the completeness and accuracy of underlying data used in the fair value estimates; and (iv) evaluating the significant assumptions used in developing financial projections. In evaluating management’s assumptions used in the development of financial projections we considered (i) the current and past performance of the reporting units; (ii) whether these assumptions were consistent with evidence obtained in other areas of the audit and (iii) the sensitivity to change of the assumptions used.
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and Cash Equivalents | $ | 4,249 | $ | 7,534 | ||||
Accounts Receivable, net of reserves of $856 in 2020 and $521 in 2019 | 19,784 | 23,486 | ||||||
Inventories | 33,925 | 30,161 | ||||||
Prepaid Expenses and Other Current Assets | 2,193 | 1,427 | ||||||
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Total Current Assets | 60,151 | 62,608 | ||||||
Property, Plant and Equipment, net | 11,268 | 10,380 | ||||||
Identifiable Intangibles, net | 25,383 | 29,674 | ||||||
Goodwill | 12,034 | 12,329 | ||||||
Deferred Tax Assets, net | 5,079 | 2,928 | ||||||
Right of Use Asset | 1,661 | — | ||||||
Other | 1,088 | 1,064 | ||||||
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TOTAL ASSETS | $ | 116,664 | $ | 118,983 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts Payable | $ | 4,409 | $ | 5,956 | ||||
Accrued Compensation | 2,700 | 5,023 | ||||||
Other Accrued Expenses | 4,711 | 2,911 | ||||||
Revolving Credit Facility | 6,500 | 1,500 | ||||||
Current Portion of Long-Term Debt | 5,208 | 5,208 | ||||||
Current Liability—Royalty Obligation | 2,000 | 1,875 | ||||||
Current Liability—Excess Royalty Payment Due | 773 | 1,265 | ||||||
Deferred Revenue | 466 | 373 | ||||||
Income Taxes Payable | — | 554 | ||||||
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Total Current Liabilities | 26,767 | 24,665 | ||||||
NON CURRENT LIABILITIES | ||||||||
Long-Term Debt, net of current portion | 7,715 | 12,870 | ||||||
Royalty Obligation, net of current portion | 8,012 | 9,916 | ||||||
Lease Liabilities, net of current portion | 1,279 | — | ||||||
Deferred Tax Liabilities | 435 | 40 | ||||||
Other Long-Term Liabilities | 1,081 | 1,717 | ||||||
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TOTAL LIABILITIES | 45,289 | 49,208 | ||||||
Commitments and Contingencies (See Note 19) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred Stock, $10 Par Value, Authorized 100,000 shares, None Issued | — | — | ||||||
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 10,343,610 shares in 2020 and 10,218,559 shares in 2019 | 517 | 511 | ||||||
AdditionalPaid-in Capital | 56,130 | 53,568 | ||||||
Retained Earnings | 49,298 | 49,511 | ||||||
Treasury Stock, at Cost, 3,281,701 shares in 2020 and 3,261,672 shares in 2019 | (33,477 | ) | (32,997 | ) | ||||
Accumulated Other Comprehensive Loss, net of tax | (1,093 | ) | (818 | ) | ||||
|
|
|
| |||||
TOTAL SHAREHOLDERS’ EQUITY | 71,375 | 69,775 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 116,664 | $ | 118,983 | ||||
|
|
|
| |||||
2021 | 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and Cash Equivalents | $ | 11,439 | $ | 4,249 | ||||
Accounts Receivable, net of reserves of $1,054 in 2021 and $856 in 2020 | 17,415 | 19,784 | ||||||
Inventories | 30,060 | 33,925 | ||||||
Prepaid Expenses and Other Current Assets | 1,807 | 2,193 | ||||||
Total Current Assets | 60,721 | 60,151 | ||||||
Property, Plant and Equipment, net | 12,011 | 11,268 | ||||||
Identifiable Intangibles, net | 21,502 | 25,383 | ||||||
Goodwill | 12,806 | 12,034 | ||||||
Deferred Tax Assets, net | 5,941 | 5,079 | ||||||
Right of Use Asset | 1,389 | 1,661 | ||||||
Other | 1,103 | 1,088 | ||||||
TOTAL ASSETS | $ | 115,473 | $ | 116,664 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts Payable | $ | 5,734 | $ | 4,409 | ||||
Accrued Compensation | 2,852 | 2,700 | ||||||
Other Accrued Expenses | 3,939 | 4,711 | ||||||
Revolving Credit Facility | — | 6,500 | ||||||
Current Portion of Long-Term Debt | 5,326 | 5,208 | ||||||
Current Liability—Royalty Obligation | 2,000 | 2,000 | ||||||
Current Liability—Excess Royalty Payment Due | 177 | 773 | ||||||
Income Taxes Payable | 655 | — | ||||||
Deferred Revenue | 285 | 466 | ||||||
Total Current Liabilities | 20,968 | 26,767 | ||||||
NON CURRENT LIABILITIES | ||||||||
Long-Term Debt, net of current portion | 7,109 | 7,715 | ||||||
Royalty Obligation, net of current portion | 6,161 | 8,012 | ||||||
Long-Term Debt—PPP Loan | 4,422 | — | ||||||
Lease Liabilities, net of current portion | 1,065 | 1,279 | ||||||
Income Taxes Payable | 681 | 1,081 | ||||||
Deferred Tax Liabilities | 384 | 435 | ||||||
TOTAL LIABILITIES | 40,790 | 45,289 | ||||||
Commitments and Contingencies (See Note 21) | 0 | 0 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred Stock, $10 Par Value, Authorized 100,000 shares, NaNne Issued | 0— | 0— | ||||||
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 10,425,094 shares in 2021 and 10,343,610 shares in 2020 | 521 | 517 | ||||||
Additional Paid-in Capital | 58,049 | 56,130 | ||||||
Retained Earnings | 50,085 | 49,298 | ||||||
Treasury Stock, at Cost, 3,297,058 shares in 2021 and 3,281,701 shares in 2020 | (33,588 | ) | (33,477 | ) | ||||
Accumulated Other Comprehensive Loss, net of tax | (384 | ) | (1,093 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 74,683 | 71,375 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 115,473 | $ | 116,664 | ||||
| 2020 | 2019 | 2018 | ||||||||||
Revenue | $ | 133,446 | $ | 136,657 | $ | 113,401 | ||||||
Cost of Revenue | 84,688 | 82,658 | 69,399 | |||||||||
|
|
|
|
|
| |||||||
Gross Profit | 48,758 | 53,999 | 44,002 | |||||||||
Costs and Expenses: | ||||||||||||
Selling and Marketing | 26,884 | 26,343 | 22,234 | |||||||||
Research and Development | 8,084 | 7,813 | 7,453 | |||||||||
General and Administrative | 11,357 | 11,123 | 8,903 | |||||||||
|
|
|
|
|
| |||||||
Operating Expenses | 46,325 | 45,279 | 38,590 | |||||||||
|
|
|
|
|
| |||||||
Operating Income | 2,433 | 8,720 | 5,412 | |||||||||
Other Expense: | ||||||||||||
Interest Expense | (826 | ) | (876 | ) | (402 | ) | ||||||
Investment Income | 143 | 145 | 168 | |||||||||
Other, Net | (380 | ) | (681 | ) | (21 | ) | ||||||
|
|
|
|
|
| |||||||
| (1,063 | ) | (1,412 | ) | (255 | ) | |||||||
|
|
|
|
|
| |||||||
Income before Income Taxes | 1,370 | 7,308 | 5,157 | |||||||||
Income Tax Provision (Benefit) | (389 | ) | 1,578 | 1,871 | ||||||||
|
|
|
|
|
| |||||||
Net Income | $ | 1,759 | $ | 5,730 | $ | 3,286 | ||||||
|
|
|
|
|
| |||||||
Net Income Per Common Share—Basic | $ | 0.25 | $ | 0.83 | $ | 0.48 | ||||||
|
|
|
|
|
| |||||||
Net Income Per Common Share—Diluted | $ | 0.24 | $ | 0.81 | $ | 0.47 | ||||||
|
|
|
|
|
| |||||||
Weighted Average Number of Common Shares Outstanding—Basic | 7,024 | 6,881 | 6,911 | |||||||||
Dilutive Effect of Common Stock Equivalents | 214 | 203 | 104 | |||||||||
|
|
|
|
|
| |||||||
Weighted Average Number of Common Shares Outstanding—Diluted | 7,238 | 7,084 | 7,015 | |||||||||
|
|
|
|
|
| |||||||
2021 | 2020 | 2019 | ||||||||||
Revenue | $ | 116,033 | $ | 133,446 | $ | 136,657 | ||||||
Cost of Revenue | 74,673 | 84,688 | 82,658 | |||||||||
Gross Profit | 41,360 | 48,758 | 53,999 | |||||||||
Costs and Expenses: | ||||||||||||
Selling and Marketing | 23,301 | 26,884 | 26,343 | |||||||||
Research and Development | 6,206 | 8,084 | 7,813 | |||||||||
General and Administrative | 9,420 | 11,357 | 11,123 | |||||||||
Operating Expenses | 38,927 | 46,325 | 45,279 | |||||||||
Operating Income | 2,433 | 2,433 | 8,720 | |||||||||
Other Expense: | ||||||||||||
Interest Income (Expense), net | (955 | ) | (682 | ) | (731 | ) | ||||||
Gain (Loss) on Foreign Currency Transactions | 590 | (448 | ) | (745 | ) | |||||||
Other, net | 111 | 67 | 64 | |||||||||
| (254 | ) | (1,063 | ) | (1,412 | ) | |||||||
Income before Income Taxes | 2,179 | 1,370 | 7,308 | |||||||||
Income Tax Provision (Benefit) | 895 | (389 | ) | 1,578 | ||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | ||||||
Net Income Per Common Share—Basic | $ | 0.18 | $ | 0.25 | $ | 0.83 | ||||||
Net Income Per Common Share—Diluted | $ | 0.18 | $ | 0.24 | $ | 0.81 | ||||||
Weighted Average Number of Common Shares Outstanding—Basic | 7,104 | 7,024 | 6,881 | |||||||||
Dilutive Effect of Common Stock Equivalents | 62 | 214 | 203 | |||||||||
Weighted Average Number of Common Shares Outstanding—Diluted | 7,166 | 7,238 | 7,084 | |||||||||
| 2020 | 2019 | 2018 | ||||||||||
Net Income | $ | 1,759 | $ | 5,730 | $ | 3,286 | ||||||
Other Comprehensive Income (Loss), net of taxes and reclassification adjustments: | ||||||||||||
Foreign Currency Translation Adjustments | (133 | ) | (671 | ) | 867 | |||||||
Change in Value of Derivatives Designated as Cash Flow Hedge | 122 | 622 | (1,036 | ) | ||||||||
(Gains) Losses from Cash Flow Hedges Reclassified to Income Statement | (264 | ) | (600 | ) | 1,048 | |||||||
Unrealized Gain (Loss) on Securities Available for Sale | — | — | 5 | |||||||||
Realized Gain on Securities Available for Sale Reclassified to Income Statement | — | 3 | — | |||||||||
|
|
|
|
|
| |||||||
Other Comprehensive Income (Loss) | (275 | ) | (646 | ) | 884 | |||||||
|
|
|
|
|
| |||||||
Comprehensive Income | $ | 1,484 | $ | 5,084 | $ | 4,170 | ||||||
|
|
|
|
|
| |||||||
2021 | 2020 | 2019 | ||||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | ||||||
Other Comprehensive Income (Loss), net of taxes and reclassification adjustments: | ||||||||||||
Foreign Currency Translation Adjustments | 710 | (133 | ) | (671 | ) | |||||||
Change in Value of Derivatives Designated as Cash Flow Hedge | (239 | ) | 122 | 622 | ||||||||
(Gains) Losses from Cash Flow Hedges Reclassified to Income Statement | 193 | (264 | ) | (600 | ) | |||||||
Cross-Currency Interest Rate Swap Terminations | 45 | — | — | |||||||||
Realized Gain on Securities Available for Sale Reclassified to Income Statement | — | — | 3 | |||||||||
Other Comprehensive Income (Loss) | 709 | (275 | ) | (646 | ) | |||||||
Comprehensive Income | $ | 1,993 | $ | 1,484 | $ | 5,084 | ||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||||
Balance January 31, 2017 | 9,834,906 | $ | 492 | $ | 47,524 | $ | 44,358 | $ | (20,781 | ) | $ | (1,056 | ) | $ | 70,537 | |||||||||||||
Share-based compensation | — | — | 1,583 | — | — | — | 1,583 | |||||||||||||||||||||
Employee option exercises | 90,042 | 4 | 913 | — | (275 | ) | — | 642 | ||||||||||||||||||||
Restricted stock awards vested, net | 71,172 | 4 | (4 | ) | — | (103 | ) | — | (103 | ) | ||||||||||||||||||
Repurchase of Common Stock | — | — | — | — | (11,238 | ) | — | (11,238 | ) | |||||||||||||||||||
Common Stock – cash dividend—$0.28 per share | — | — | — | (1,944 | ) | — | — | (1,944 | ) | |||||||||||||||||||
Net income | — | — | — | 3,286 | — | — | 3,286 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 884 | 884 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance January 31, 2018 | 9,996,120 | $ | 500 | $ | 50,016 | $ | 45,700 | $ | (32,397 | ) | $ | (172 | ) | $ | 63,647 | |||||||||||||
Share-based compensation | — | — | 1,886 | — | — | — | 1,886 | |||||||||||||||||||||
Employee option exercises | 150,125 | 7 | 1,669 | — | (366 | ) | — | 1,310 | ||||||||||||||||||||
Restricted stock awards vested, net | 72,314 | 4 | (3 | ) | — | (234 | ) | — | (233 | ) | ||||||||||||||||||
Reclassification due to adoption of ASU2018-02 | — | — | — | 14 | — | — | 14 | |||||||||||||||||||||
Common Stock—cash dividend—$0.28 per share | — | — | — | (1,933 | ) | — | — | (1,933 | ) | |||||||||||||||||||
Net income | — | — | — | 5,730 | — | — | 5,730 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (646 | ) | (646 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance January 31, 2019 | 10,218,559 | $ | 511 | $ | 53,568 | $ | 49,511 | $ | (32,997 | ) | $ | (818 | ) | $ | 69,775 | |||||||||||||
Share-based compensation | — | — | 1,775 | — | — | — | 1,775 | |||||||||||||||||||||
Employee option exercises | 65,121 | 3 | 790 | — | (11 | ) | — | 782 | ||||||||||||||||||||
Restricted stock awards vested, net | 59,930 | 3 | (3 | ) | — | (469 | ) | — | (469 | ) | ||||||||||||||||||
Common Stock – cash dividend—$0.28 per share | — | — | — | (1,972 | ) | — | — | (1,972 | ) | |||||||||||||||||||
Net income | — | — | — | 1,759 | — | — | 1,759 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (275 | ) | (275 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance January 31, 2020 | 10,343,610 | $ | 517 | $ | 56,130 | $ | 49,298 | $ | (33,477 | ) | $ | (1,093 | ) | $ | 71,375 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance January 31, 2018 | 9,996,120 | $ | 500 | $ | 50,016 | $ | 45,700 | $ | (32,397 | ) | $ | (172 | ) | $ | 63,647 | |||||||||||||
Share-based compensation | — | — | 1,886 | — | — | — | 1,886 | |||||||||||||||||||||
Employee option exercises | 154,992 | 7 | 1,669 | — | (366 | ) | — | 1,310 | ||||||||||||||||||||
Restricted stock awards vested, net | 67,447 | 4 | (3 | ) | — | (234 | ) | — | (233 | ) | ||||||||||||||||||
Reclassification due to adoption of ASU 2018-02 | — | — | — | 14 | — | — | 14 | |||||||||||||||||||||
Common Stock—cash dividend—$0.28 per share | — | — | — | (1,933 | ) | — | — | (1,933 | ) | |||||||||||||||||||
Net income | — | — | — | 5,730 | — | — | 5,730 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (646 | ) | (646 | ) | |||||||||||||||||||
Balance January 31, 2019 | 10,218,559 | $ | 511 | $ | 53,568 | $ | 49,511 | $ | (32,997 | ) | $ | (818 | ) | $ | 69,775 | |||||||||||||
Share-based compensation | — | — | 1,775 | — | — | — | 1,775 | |||||||||||||||||||||
Employee option exercises | 65,121 | 3 | 790 | — | (11 | ) | — | 782 | ||||||||||||||||||||
Restricted stock awards vested, net | 59,930 | 3 | (3 | ) | — | (469 | ) | — | (469 | ) | ||||||||||||||||||
Common Stock—cash dividend—$0.28 per share | — | — | — | (1,972 | ) | — | — | (1,972 | ) | |||||||||||||||||||
Net income | — | — | — | 1,759 | — | — | 1,759 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (275 | ) | (275 | ) | |||||||||||||||||||
Balance January 31, 2020 | 10,343,610 | $ | 517 | $ | 56,130 | $ | 49,298 | $ | (33,477 | ) | $ | (1,093 | ) | $ | 71,375 | |||||||||||||
Share-based compensation | — | — | 1,819 | — | — | — | 1,819 | |||||||||||||||||||||
Employee option exercises | 16,487 | 1 | 103 | — | — | — | 104 | |||||||||||||||||||||
Restricted stock awards vested, net | 64,997 | 3 | (3 | ) | — | (111 | ) | — | (111 | ) | ||||||||||||||||||
Common Stock—cash dividend—$0.07 per share | — | — | — | (497 | ) | — | — | (497 | ) | |||||||||||||||||||
Net income | — | — | — | 1,284 | — | — | 1,284 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 709 | 709 | |||||||||||||||||||||
Balance January 31, 2021 | 10,425,094 | $ | 521 | $ | 58,049 | $ | 50,085 | $ | (33,588 | ) | $ | (384 | ) | $ | 74,683 | |||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net Income | $ | 1,759 | $ | 5,730 | $ | 3,286 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||
Depreciation and Amortization | 6,284 | 6,152 | 3,994 | |||||||||
Amortization of Debt Issuance Costs | 49 | 51 | 34 | |||||||||
Share-Based Compensation | 1,775 | 1,886 | 1,583 | |||||||||
Deferred Income Tax Provision (Benefit) | (1,638 | ) | (1,638 | ) | 744 | |||||||
Changes in Assets and Liabilities, Net of Impact of Acquisitions: | ||||||||||||
Accounts Receivable | 3,594 | (1,493 | ) | (4,722 | ) | |||||||
Inventories | (3,938 | ) | (2,872 | ) | (5,509 | ) | ||||||
Accounts Payable and Accrued Expenses | (2,732 | ) | (2,342 | ) | 5,207 | |||||||
Income Taxes Payable | (1,773 | ) | (151 | ) | (801 | ) | ||||||
Other | (156 | ) | (318 | ) | (92 | ) | ||||||
|
|
|
|
|
| |||||||
Net Cash Provided by Operating Activities | 3,224 | 5,005 | 3,724 | |||||||||
|
|
|
|
|
| |||||||
Cash Flows from Investing Activities: | ||||||||||||
Proceeds from Sales/Maturities of Securities Available for Sale | — | 1,511 | 5,539 | |||||||||
Purchases of Securities Available for Sale | — | — | (321 | ) | ||||||||
Cash Paid for TrojanLabel Acquisition, Net of Cash Acquired | — | — | (9,007 | ) | ||||||||
Cash Paid for Honeywell Asset Purchase and License Agreement | — | (400 | ) | (14,873 | ) | |||||||
Payments Received on Line of Credit and Note Receivable | — | — | 85 | |||||||||
Additions to Property, Plant and Equipment | (2,906 | ) | (2,645 | ) | (2,204 | ) | ||||||
|
|
|
|
|
| |||||||
Net Cash Used by Investing Activities | (2,906 | ) | (1,534 | ) | (20,781 | ) | ||||||
|
|
|
|
|
| |||||||
Cash Flows from Financing Activities: | ||||||||||||
Net Proceeds from Common Shares Issued Under Employee Benefit Plans and Employee Stock Option Plans, Net of Payment of Minimum Tax Withholdings | 313 | 1,077 | 539 | |||||||||
Purchase of Treasury Stock | — | — | (11,238 | ) | ||||||||
Proceeds from Issuance of Long-Term Debt | — | — | 24,200 | |||||||||
Borrowings under Revolving Credit Facility, net | 5,000 | 1,500 | — | |||||||||
Change in TrojanLabel Earn Out Liability | — | — | (1,438 | ) | ||||||||
Payment of Minimum Guarantee Royalty Obligation | (1,875 | ) | (1,625 | ) | — | |||||||
Principal Payments on Long-Term Debt | (5,208 | ) | (5,130 | ) | (828 | ) | ||||||
Payments of Debt Issuance Costs | — | — | (234 | ) | ||||||||
Dividends Paid | (1,972 | ) | (1,933 | ) | (1,944 | ) | ||||||
|
|
|
|
|
| |||||||
Net Cash (Used) Provided by Financing Activities | (3,742 | ) | (6,111 | ) | 9,057 | |||||||
|
|
|
|
|
| |||||||
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 139 | (3 | ) | 79 | ||||||||
|
|
|
|
|
| |||||||
Net Decrease in Cash and Cash Equivalents | (3,285 | ) | (2,643 | ) | (7,921 | ) | ||||||
Cash and Cash Equivalents, Beginning of Year | 7,534 | 10,177 | 18,098 | |||||||||
|
|
|
|
|
| |||||||
Cash and Cash Equivalents, End of Year | $ | 4,249 | $ | 7,534 | $ | 10,177 | ||||||
|
|
|
|
|
| |||||||
Supplemental Information: | ||||||||||||
Cash Paid During the Period for: | ||||||||||||
Interest | $ | 531 | $ | 636 | $ | 246 | ||||||
Income Taxes, Net of Refunds | $ | 2,913 | $ | 3,472 | $ | 1,940 | ||||||
Schedule ofnon-cash financing activities: | ||||||||||||
Value of Shares Received in Satisfaction of Option Exercise Price | $ | 11 | $ | 366 | $ | 275 | ||||||
2021 | 2020 | 2019 | ||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||
Depreciation and Amortization | 5,983 | 6,284 | 6,152 | |||||||||
Amortization of Debt Issuance Costs | 75 | 49 | 51 | |||||||||
Share-Based Compensation | 1,819 | 1,775 | 1,886 | |||||||||
Deferred Income Tax Provision (Benefit) | (1,021 | ) | (1,638 | ) | (1,638 | ) | ||||||
Changes in Assets and Liabilities: | ||||||||||||
Accounts Receivable | 2,702 | 3,594 | (1,493 | ) | ||||||||
Inventories | 4,247 | (3,938 | ) | (2,872 | ) | |||||||
Accounts Payable and Accrued Expenses | (57 | ) | (2,732 | ) | (2,342 | ) | ||||||
Income Taxes Payable | 1,482 | (1,773 | ) | (151 | ) | |||||||
Other | (970 | ) | (156 | ) | (318 | ) | ||||||
Net Cash Provided by Operating Activities | 15,544 | 3,224 | 5,005 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Proceeds from Sales/Maturities of Securities Available for Sale | — | — | 1,511 | |||||||||
Cash Paid for Honeywell Asset Purchase and License Agreement | — | — | (400 | ) | ||||||||
Additions to Property, Plant and Equipment | (2,587 | ) | (2,906 | ) | (2,645 | ) | ||||||
Net Cash Used by Investing Activities | (2,587 | ) | (2,906 | ) | (1,534 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Net Proceeds Employee Stock Option Plans | 9 | 654 | 1,228 | |||||||||
Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan | 95 | 128 | 82 | |||||||||
Net Cash Used for Payment of Taxes Related to Vested Restricted Stock | (111 | ) | (469 | ) | (233 | ) | ||||||
Net ( Repayments) /Borrowings under Revolving Credit Facility | (6,500 | ) | 5,000 | 1,500 | ||||||||
Payment of Minimum Guarantee Royalty Obligation | (2,000 | ) | (1,875 | ) | (1,625 | ) | ||||||
Proceeds from Long-Term Debt – PPP Loan | 4,422 | — | — | |||||||||
Proceeds from Long-Term Debt Borrowings | 15,232 | — | — | |||||||||
Payoff of Long-Term Debt | (11,732 | ) | — | — | ||||||||
Principal Payments on Long-Term Debt | (3,958 | ) | (5,208 | ) | (5,130 | ) | ||||||
Payments of Debt Issuance Costs | (100 | ) | — | — | ||||||||
Dividends Paid | (497 | ) | (1,972 | ) | (1,933 | ) | ||||||
Net Cash Used by Financing Activities | (5,140 | ) | (3,742 | ) | (6,111 | ) | ||||||
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | (627 | ) | 139 | (3 | ) | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 7,190 | (3,285 | ) | (2,643 | ) | |||||||
Cash and Cash Equivalents, Beginning of Year | 4,249 | 7,534 | 10,177 | |||||||||
Cash and Cash Equivalents, End of Year | $ | 11,439 | $ | 4,249 | $ | 7,534 | ||||||
Supplemental Information: | ||||||||||||
Cash Paid During the Period for: | ||||||||||||
Interest | $ | 677 | $ | 531 | $ | 636 | ||||||
Income Taxes, Net of Refunds | $ | 446 | $ | 2,913 | $ | 3,472 | ||||||
Schedule of non-cash financing activities: | ||||||||||||
Value of Shares Received in Satisfaction of Option Exercise Price | $ | — | $ | 11 | $ | 366 | ||||||
2019
We adopted this standard using the modified retrospective method and have applied the guidance to all contracts within the scope of Topic 606 as of the February 1, 2018 adoption date. Under Topic 606, based on the nature of our contracts and consistent with prior practice, we recognize most of our revenue upon shipment, which is when the performance obligation has been satisfied. Accordingly, the adoption of this standard did not have a material impact on our revenue recognition and there was no cumulative effective adjustment as of February 1, 2018 as a result of the adoption of Topic 606.
2019.
assets in fiscal years 2021, 2020 or 2019.
determining the fair value of the asset. The amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. For 2020, 2019 and 2018, thereThere were no0 impairment charges for our intangible assets.
assets in fiscal years 2021, 2020 or 2019.
We performed a qualitative assessment for our fiscal 2020quantitative analysis of goodwill. Based on this assessment, management does not believe that it is more likely than not that the carrying values of the reporting units exceed theiras of January 31, 2021 and determined that the fair values. Accordingly,value was in excess of our carrying value and therefore, no quantitative assessment was performed, as management believes that there are nogoodwill impairment issues in regard to goodwill at this time.
has occurred. See Note 3, “Goodwill,” for further details.
The Company enters
right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease.
activities.
AstroNova accounts
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
2020.
Leases
The Company applied ASU2016-02 to all leases in effect at February 1, 2019 and adopted this standard using thenon-comparative transition option, which does not require the restatement of prior years. Accordingly, comparative information has not been adjusted and continues to be reported under the previous accounting guidance. The Company has elected the package of practical expedients, which allows entities to not reassess (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Also, the Company has made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. On February 1, 2019, the Company recognized $2.0 million of Right of Use Accounting Standard Update (“ROU”ASU”) assets and lease liabilities on its consolidated balance sheet and currently has $1.7 million of ROU assets as of January 31, 2020. The adoption did not have a material impact on the Company’s results of operations or cash flows.
Recent Accounting Standards Not Yet Adopted:
Value Measurement
In August 2018, the FASB issued ASU2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASUThis ASU is effective for annual periods beginning after December 15, 2019 including interim periods within those
fiscal years (Q1 fiscal 2021 for AstroNova), with early adoption permitted. The provisions of ASUThisWe adopted the provisions of this guidance effective February 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and accompanying disclosures.
| Year Ended | ||||||||||||
| (In thousands) | January 31, 2020 | January 31, 2019 | January 31, 2018 | |||||||||
United States | $ | 83,671 | $ | 83,668 | $ | 69,795 | ||||||
Europe | 29,617 | 31,574 | 29,948 | |||||||||
Asia | 8,316 | 8,207 | 3,808 | |||||||||
Canada | 5,719 | 6,692 | 5,373 | |||||||||
Central and South America | 4,145 | 4,147 | 3,402 | |||||||||
Other | 1,978 | 2,369 | 1,075 | |||||||||
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Total Revenue | $ | 133,446 | $ | 136,657 | $ | 113,401 | ||||||
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Year Ended | ||||||||||||
(In thousands) | January 31, 2021 | January 31, 2020 | January 31, 2019 | |||||||||
United States | $ | 70,911 | $ | 83,671 | $ | 83,668 | ||||||
Europe | 29,029 | 29,617 | 31,574 | |||||||||
Canada | 5,574 | 5,719 | 6,692 | |||||||||
Asia | 5,105 | 8,316 | 8,207 | |||||||||
Central and South America | 3,950 | 4,145 | 4,147 | |||||||||
Other | 1,464 | 1,978 | 2,369 | |||||||||
Total Revenue | $ | 116,033 | $ | 133,446 | $ | 136,657 | ||||||
| Year Ended | ||||||||||||
| (In thousands) | January 31, 2020 | January 31, 2019 | January 31, 2018 | |||||||||
Hardware | $ | 48,959 | $ | 53,207 | $ | 37,501 | ||||||
Supplies | 71,838 | 71,178 | 65,265 | |||||||||
Service and Other | 12,649 | 12,272 | 10,635 | |||||||||
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Total Revenue | $ | 133,446 | $ | 136,657 | $ | 113,401 | ||||||
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Year Ended | ||||||||||||
(In thousands) | January 31, 2021 | January 31, 2020 | January 31, 2019 | |||||||||
Hardware | $ | 34,111 | $ | 48,959 | $ | 53,207 | ||||||
Supplies | 71,772 | 71,838 | 71,178 | |||||||||
Service and Other | 10,150 | 12,649 | 12,272 | |||||||||
Total Revenue | $ | 116,033 | $ | 133,446 | $ | 136,657 | ||||||
(In thousands) | Product Identification | T&M | Total | |||||||||
Balance at January 31, 2019 | $ | 7,807 | $ | 4,522 | $ | 12,329 | ||||||
Foreign currency translation | (295 | ) | — | (295 | ) | |||||||
Balance at January 31, 2020 | $ | 7,512 | $ | 4,522 | $ | 12,034 | ) | |||||
Foreign currency translation | 772 | — | 772 | |||||||||
Balance at January 31, 2021 | $ | 8,284 | $ | 4,522 | $ | 12,806 | ||||||
| January 31, 2020 | January 31, 2019 | |||||||||||||||||||||||||||||||
| (In thousands) | Gross Carrying Amount | Accumulated Amortization | Currency Translation Adjustment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Currency Translation Adjustment | Net Carrying Amount | ||||||||||||||||||||||||
Miltope: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | $ | 3,100 | $ | (2,021 | ) | $ | — | $ | 1,079 | $ | 3,100 | $ | (1,723 | ) | $ | — | $ | 1,377 | ||||||||||||||
RITEC: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | 2,830 | (1,076 | ) | — | 1,754 | 2,830 | (725 | ) | — | 2,105 | ||||||||||||||||||||||
Non-Competition Agreement | 950 | (871 | ) | — | 79 | 950 | (681 | ) | — | 269 | ||||||||||||||||||||||
TrojanLabel: | ||||||||||||||||||||||||||||||||
Existing Technology | 2,327 | (1,053 | ) | 78 | 1,352 | 2,327 | (711 | ) | 140 | 1,756 | ||||||||||||||||||||||
Distributor Relations | 937 | (297 | ) | 27 | 667 | 937 | (200 | ) | 56 | 793 | ||||||||||||||||||||||
Honeywell: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | 27,243 | (6,791 | ) | — | 20,452 | 27,243 | (3,869 | ) | — | 23,374 | ||||||||||||||||||||||
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Intangible Assets, net | $ | 37,387 | $ | (12,109 | ) | $ | 105 | $ | 25,383 | $ | 37,387 | $ | (7,909 | ) | $ | 196 | $ | 29,674 | ||||||||||||||
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January 31, 2021 | January 31, 2020 | |||||||||||||||||||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Currency Translation Adjustment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Currency Translation Adjustment | Net Carrying Amount | ||||||||||||||||||||||||
Miltope: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | $ | 3,100 | $ | (2,284 | ) | $ | — | $ | 816 | $ | 3,100 | $ | (2,021 | ) | $ | — | $ | 1,079 | ||||||||||||||
RITEC: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | 2,830 | (1,423 | ) | — | 1,407 | 2,830 | (1,076 | ) | — | 1,754 | ||||||||||||||||||||||
Non-Competition Agreement | 950 | (950 | ) | — | 0 | 950 | (871 | ) | — | 79 | ||||||||||||||||||||||
TrojanLabel: | ||||||||||||||||||||||||||||||||
Existing Technology | 2,327 | (1,405 | ) | 196 | 1,118 | 2,327 | (1,053 | ) | 78 | 1,352 | ||||||||||||||||||||||
Distributor Relations | 937 | (396 | ) | 89 | 630 | 937 | (297 | ) | 27 | 667 | ||||||||||||||||||||||
Honeywell: | ||||||||||||||||||||||||||||||||
Customer Contract Relationships | 27,243 | (9,712 | ) | — | 17,531 | 27,243 | (6,791 | ) | — | 20,452 | ||||||||||||||||||||||
Intangible Assets, net | $ | 37,387 | $ | (16,170 | ) | $ | 285 | $ | 21,502 | $ | 37,387 | $ | (12,109 | ) | $ | 105 | $ | 25,383 | ||||||||||||||
| (In thousands) | 2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||||
Estimated amortization expense | $ | 4,069 | $ | 3,972 | $ | 3,966 | $ | 3,969 | $ | 3,394 | ||||||||||
| (In thousands) | 2022 | 2023 | 2024 | 2025 | 2026 | |||||||||||||||
Estimated amortization expense | $ | 3,938 | $ | 3,956 | $ | 4,055 | $ | 3,416 | $ | 3,021 | ||||||||||
| January 31 | ||||||||
| 2020 | 2019 | |||||||
| (In thousands) | ||||||||
Materials and Supplies | $ | 20,151 | $ | 17,517 | ||||
Work-in-Progress | 1,408 | 1,633 | ||||||
Finished Goods | 17,992 | 15,688 | ||||||
|
|
|
| |||||
| 39,551 | 34,838 | |||||||
Inventory Reserve | (5,626 | ) | (4,677 | ) | ||||
|
|
|
| |||||
Balance at January 31 | $ | 33,925 | $ | 30,161 | ||||
|
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|
| |||||
January 31 | ||||||||
2021 | 2020 | |||||||
| (In thousands) | ||||||||
Materials and Supplies | $ | 20,265 | $ | 20,151 | ||||
Work-in-Progress | 2,076 | 1,408 | ||||||
Finished Goods | 16,371 | 17,992 | ||||||
| 38,712 | 39,551 | |||||||
Inventory Reserve | (8,652 | ) | (5,626 | ) | ||||
| $ | 30,060 | $ | 33,925 | |||||
| January 31 | ||||||||
| 2019 | 2019 | |||||||
| (In thousands) | ||||||||
Land and Land Improvements | $ | 967 | $ | 967 | ||||
Buildings and Leasehold Improvements | 12,524 | 12,165 | ||||||
Machinery and Equipment | 23,167 | 22,810 | ||||||
Computer Equipment and Software | 11,388 | 9,385 | ||||||
|
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|
| |||||
Gross Property, Plant and Equipment | 48,046 | 45,327 | ||||||
Accumulated Depreciation | (36,778 | ) | (34,947 | ) | ||||
|
|
|
| |||||
Net Property Plant and Equipment | $ | 11,268 | $ | 10,380 | ||||
|
|
|
| |||||
January 31 | ||||||||
2021 | 2020 | |||||||
| (In thousands) | ||||||||
Land and Land Improvements | $ | 1,004 | $ | 967 | ||||
Buildings and Leasehold Improvements | 12,642 | 12,524 | ||||||
Machinery and Equipment | 23,346 | 23,167 | ||||||
Computer Equipment and Software | 13,847 | 11,388 | ||||||
Gross Property, Plant and Equipment | 50,839 | 48,046 | ||||||
Accumulated Depreciation | (38,828 | ) | (36,778 | ) | ||||
Net Property Plant and Equipment | $ | 12,011 | $ | 11,268 | ||||
2019.
| January 31 | ||||||||
| 2020 | 2019 | |||||||
| (In thousands) | ||||||||
Warranty | $ | 850 | $ | 832 | ||||
Professional Fees | 697 | 403 | ||||||
Lease Liability | 416 | — | ||||||
Dealer Commissions | 236 | 320 | ||||||
Stockholder Relation Fees | 194 | 40 | ||||||
Accrued Payroll & Sales Tax | 193 | 97 | ||||||
Other Accrued Expenses | 2,125 | 1,219 | ||||||
|
|
|
| |||||
| $ | 4,711 | $ | 2,911 | |||||
|
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| |||||
January 31 | ||||||||
2021 | 2020 | |||||||
| (In thousands) | ||||||||
Warranty | $ | 730 | $ | 850 | ||||
Professional Fees | 546 | 697 | ||||||
Lease Liability | 372 | 416 | ||||||
Accrued Payroll & Sales Tax | 292 | 193 | ||||||
Stockholder Relation Fees | 91 | 194 | ||||||
Dealer Commissions | 57 | 236 | ||||||
Other Accrued Expenses | 1,851 | 2,125 | ||||||
| $ | 3,939 | $ | 4,711 | |||||
Long-term debt in the accompanying condensed consolidated balance sheets is as follows:
| January 31 | ||||||||
| (In thousands) | 2020 | 2019 | ||||||
USD Term Loan (3.03% and 4.02% as of January 31, 2020 and 2019, respectively); maturity date November 30, 2022 | $ | 8,250 | $ | 11,250 | ||||
USD Term Loan (3.03% and 4.02% as of January 31, 2020 and 2019, respectively); maturity date of January 31, 2022 | 4,784 | 6,992 | ||||||
|
|
|
| |||||
| 13,034 | 18,242 | |||||||
Debt Issuance Costs, net of accumulated amortization | (111 | ) | (164 | ) | ||||
Current Portion of Term Loan | (5,208 | ) | (5,208 | ) | ||||
|
|
|
| |||||
Long-Term Debt | $ | 7,715 | $ | 12,870 | ||||
|
|
|
| |||||
The schedule of required principal payments remaining during the next five years on long-term debt outstanding as of January 31, 2020 is as follows:
| (In thousands) | ||||
Fiscal 2021 | $ | 5,208 | ||
Fiscal 2022 | 5,576 | |||
Fiscal 2023 | 2,250 | |||
Fiscal 2024 | — | |||
Fiscal 2025 | — | |||
|
| |||
| $ | 13,034 | |||
|
| |||
Revolving Line of Credit
The Company has a $17.5 million revolving line of credit under its existingRestated Credit Agreement (the “A&R Credit Agreement”) with Bank of America.America, N.A., as lender (the “Lender”), our wholly owned subsidiary, ANI ApS, a Danish private limited liability company and TrojanLabel ApS, a Danish private limited liability company and wholly-owned subsidiary of ANI ApS (“TrojanLabel”). The A&R Credit Agreement amended and restated the Credit Agreement dated as of February 28, 2017 (the “Prior Credit Agreement”) by and among us, ANI ApS, TrojanLabel and the Lender. In connection with the A&R Credit Agreement, we entered into an Amended and Restated Security and Pledge Agreement and a mortgage in favor of the Lender with respect to our owned real property in West Warwick, Rhode Island. Under the A&R Credit Agreement, AstroNova, Inc. is the sole borrower, and at January 31, 2021, its obligations are guaranteed by ANI ApS and TrojanLabel.
At January 31, 2020, the Company had an outstanding balance of $6.5 million on the revolving credit line. As of January 31, 2020. the outstanding balance bore interest at a weighted average annual rate of 3.68% and $0.1 million of interest was incurred on this obligation and included in other expense in the accompanying consolidated income statement for the period ended January 31, 2020. As of January 31, 2020, there is $11.0 million available for borrowing under the revolving credit facility.
The Company is We are also required to pay a commitment fee on the undrawn portion of the revolving credit facility at the rate of 0.25% per annum.
Credit Agreement
The Company and the Company’s wholly owned Danish subsidiaries, ANI ApS and TrojanLabel ApS (collectively the “Parties”), are parties to a credit agreement (the “Credit Agreement”) with Bank of America, N.A. The Credit Agreement and its subsequent amendments through fiscal 2019 provided for a secured credit facility consisting of a term loan to ANI ApS in the principal amount of $9.2 million, a term loan to the Company in the principal amount of $15.0 million and a revolving credit facility for the Company.
The term loans bear interest at a rateper annum equal to the LIBOR rate plus a margin that varies within a range of 1.0% to 1.5%0.25% and 0.675% based on the Company’sour consolidated leverage ratio. In connection
The Partieswe must comply with various customary financial andunder the Credit Agreement.including a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio, a minimum level of EBITDA, a consolidated asset coverage ratio and a minimum level of liquidity. The Credit Agreement contains limitations, in each case subject to various exceptionsprimarythresholds, on the Company’s and itsour subsidiaries’ ability to incur future indebtedness, to place liens on assets, to pay dividends or distributions on capital stock, to repurchase or acquire capital stock, to conduct mergers or acquisitions, to sell assets, to alter theirthe capital structure, to make investments and loans, to change the nature of their business, and to prepay subordinated indebtedness. The Credit Agreement permits the Company to pay cash dividends on and repurchase shares of its common stock,indebtedness, in each case subject to certain limitations.
exceptions and thresholds as set forth in the A&R Credit Agreement.
The obligations ofguarantees by ANI ApS in respect of the $9.2 million term loan are guaranteed by the Company and TrojanLabel, ApS. The Company’sour obligations in respect ofunder the $15.0 million term loan, revolving credit facility and its guarantee in respect of the ANI ApS term loanA&R Credit Agreement are also secured by substantially all of theAstroNova, Inc.’s personal property assets of the Company (including a pledge of the equity interests it holds in ANI ApS, in our wholly-owned German subsidiary AstroNova GmbH, and in our wholly-owned French subsidiary AstroNova SAS), subject to certain exceptions, and by a mortgage on our owned real property in West Warwick, Rhode Island.
January 31 | ||||||||
| (In thousands) | 2021 | 2020 | ||||||
USD Term Loan (4.65% as of January 31, 2021); maturity date of June 15, 2022 | $ | 12,576 | $ | 0 | ||||
USD Term Loan (3.03% as of January 31, 2021); maturity date November 30, 2022 | 0 | 8,250 | ||||||
USD Term Loan (3.03% as of January 31, 2021); maturity date of January 31, 2022 | 0 | 4,784 | ||||||
| 12,576 | 13,034 | |||||||
Debt Issuance Costs, net of accumulated amortization | (141 | ) | (111 | ) | ||||
Current Portion of Term Loan | (5,326 | ) | (5,208 | ) | ||||
Long-Term Debt | $ | 7,109 | $ | 7,715 | ||||
| (In thousands) | ||||
Fiscal 2022 | $ | 5,326 | ||
Fiscal 2023 | 7,250 | |||
| $ | 12,576 | |||
On December 9, 2019,approval by the Parties entered into a Fourth Amendment (the “Fourth Amendment”)SBA and may also be subject to further requirements in any regulations and guidelines the Credit Agreement.SBA may adopt. The Fourth Amendment amended the Credit Agreement to, among other things, (i) increase the aggregate amount available for borrowings under the revolving line of credit from $10.0 million to $17.5 million through the second quarter of fiscal 2021 and (ii) modify the financial covenants with which the Company must comply thereunder by excluding certain capital expenditures from the calculation of the Company’s consolidated fixed charge coverage ratio, providing that the minimum consolidated fixed charge coverage ratio covenant will be suspended through the second quarter of fiscal 2021, and adding a minimum consolidated EBITDA covenant commencing with the fourth quarter of fiscal 2020 and continuing through the second quarter of fiscal 2021. As of January 31, 2020, the Company believes itPPP Loan is in compliance with all of the covenantsclassified as long-term debt in the Credit Agreement.
condensed consolidated balance sheet until the forgiveness determination has been made by the SBA.
The Company has
Theborrowings.
floating interest rate amounts in U.S. Dollars in exchange for fixed-rate interest payments in Danish Kroner, as well as exchanges of principal at the inception spot rate, over the life of the term loan.
The
Cash Flow Hedges (In thousands) | January 31, 2020 | January 31, 2019 | ||||||||||||||||||||||
| Fair Value Derivatives | Fair Value Derivatives | |||||||||||||||||||||||
| Notional Amount | Asset | Liability | Notional Amount | Asset | Liability | |||||||||||||||||||
Cross-currency Interest Rate Swap | $ | 4,489 | $ | — | $ | 250 | $ | 6,329 | $ | — | $ | 600 | ||||||||||||
Interest Rate Swap | $ | 8,250 | $ | — | $ | 96 | $ | 11,250 | $ | 85 | $ | — | ||||||||||||
instruments:
Cash Flow Hedges (In thousands) | January 31, 2021 | January 31, 2020 | ||||||||||||||||||||||
Notional Amount | Fair Value Derivatives | Notional Amount | Fair Value Derivatives | |||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||
Cross-currency Interest Rate Swap | $ | — | $ | — | $ | — | $ | 4,489 | $ | — | $ | 250 | ||||||||||||
Interest Rate Swap | $ | — | $ | — | $ | — | $ | 8,250 | $ | — | $ | 96 | ||||||||||||
| Years Ended | ||||||||||||||||||||
| Amount of Gain Recognized in OCI on Derivative | Location of Gain Reclassified from Accumulated OCI into Income | Amount of Gain Reclassified from Accumulated OCI into Income | ||||||||||||||||||
Cash Flow Hedge (In thousands) | January 31, 2020 | January 31, 2019 | January 31, 2020 | January 31, 2019 | ||||||||||||||||
Swap contracts | $ | 159 | $ | 797 | Other Income | $ | 338 | $ | 769 | |||||||||||
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2020:
Years Ended | ||||||||||||||||||||
Cash Flow Hedge (In thousands) | Amount of Gain(Loss) Recognized in OCI on Derivative | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
January 31, 2021 | January 31, 2020 | January 31, 2021 | January 31, 2020 | |||||||||||||||||
Swap contracts | $ | (301 | ) | $ | 159 | Other Income | $ | (248 | ) | $ | 338 | |||||||||
10—12—LeasesThe Company enters
The company leases
January 31, 2020.
Operating Leases (In thousands) | Balance Sheet Classification | January 31, 2020 | ||||
Lease Assets | Right of Use Assets | $ | 1,661 | |||
Lease Liabilities—Current | Other Liabilities and Accrued Expenses | 416 | ||||
Lease Liabilities—Long Term | Lease Liabilities | $ | 1,279 | |||
Operating Leases (In thousands) | Balance Sheet Classification | January 31, 2021 | January 31, 2020 | |||||||
Lease Assets | Right of Use Assets | $ | 1,389 | $ | 1,661 | |||||
Lease Liabilities — Current | Other Accrued Expenses | 372 | 416 | |||||||
Lease Liabilities — Long Term | Lease Liabilities | $ | 1,065 | $ | 1,279 | |||||
Operating Leases (In thousands) | Statement of Income Classification | Year Ended January 31, 2020 | ||||
Operating Lease Costs | General and Administrative Expense | $ | 449 | |||
Operating Leases (In thousands) | Statement of Income Classification | Year Ended January 31, 2021 | Year Ended January 31, 2020 | |||||||||
Operating Lease Costs | General and Administrative Expense | $ | 485 | $ | 449 | |||||||
(In thousands) | January 31, 2020 | |||
2021 | $ | 416 | ||
2022 | 358 | |||
2023 | 300 | |||
2024 | 273 | |||
2025 | 169 | |||
Thereafter | 389 | |||
|
| |||
Total Lease Payments | 1,905 | |||
Less: Imputed Interest | (210 | ) | ||
|
| |||
Total Lease Liabilities | $ | 1,695 | ||
|
| |||
(In thousands) | January 31, 2021 | |||
2022 | $ | 372 | ||
2023 | 318 | |||
2024 | 292 | |||
2025 | 184 | |||
2026 | 163 | |||
Thereafter | 270 | |||
Total Lease Payments | 1,599 | |||
Less: Imputed Interest | (162 | ) | ||
Total Lease Liabilities | $ | 1,437 | ||
(In thousands) | Year Ended January 31, 2020 | |||
Cash paid for operating lease liabilities | $ | 406 | ||
(In thousands) | Year Ended January 31, 2021 | Year Ended January 31, 2020 | ||||||
Cash paid for operating lease liabilities | $ | 429 | $ | 406 | ||||
Income (Loss)
| (In thousands) | Foreign Currency Translation Adjustments | Unrealized Holding Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Losses) on Cash Flow Hedges | Total | ||||||||||||
Balance at January 31, 2017 | $ | (1,048 | ) | $ | (8 | ) | $ | — | $ | (1,056 | ) | |||||
Other Comprehensive Loss Income (Loss) before reclassification | 867 | 5 | (1,036 | ) | (164 | ) | ||||||||||
Amounts Reclassified to Net Income | — | — | 1,048 | 1,048 | ||||||||||||
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Net Other Comprehensive Income | 867 | 5 | 12 | 884 | ||||||||||||
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Balance at January 31, 2018 | $ | (181 | ) | $ | (3 | ) | $ | 12 | $ | (172 | ) | |||||
Other Comprehensive Income (Loss) before reclassification | (671 | ) | — | 622 | (49 | ) | ||||||||||
Amounts reclassified from AOCI to Earnings | — | 3 | (600 | ) | (597 | ) | ||||||||||
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Other Comprehensive Income (Loss) | (671 | ) | 3 | 22 | (646 | ) | ||||||||||
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Balance at January 31, 2019 | $ | (852 | ) | $ | — | $ | 34 | $ | (818 | ) | ||||||
Other Comprehensive Income (Loss) before reclassification | (133 | ) | — | 122 | (11 | ) | ||||||||||
Amounts reclassified from AOCI to Earnings | — | — | (264 | ) | (264 | ) | ||||||||||
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Other Comprehensive Loss | (133 | ) | — | (142 | ) | (275 | ) | |||||||||
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Balance at January 31, 2020 | $ | (985 | ) | $ | — | $ | (108 | ) | $ | (1,093 | ) | |||||
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|
| |||||||||
| (In thousands) | Foreign Currency Translation Adjustments | Unrealized Holding Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Losses) on Cash Flow Hedges | Total | ||||||||||||
Balance at January 31, 2018 | $ | (181 | ) | $ | (3 | ) | $ | 12 | $ | (172 | ) | |||||
Other Comprehensive Income (Loss) before reclassification | (671 | ) | — | 622 | (49 | ) | ||||||||||
Amounts reclassified from AOCI to Earnings | — | 3 | (600 | ) | (597 | ) | ||||||||||
Other Comprehensive Income (Loss) | (671 | ) | 3 | 22 | (646 | ) | ||||||||||
Balance at January 31, 2019 | $ | (852 | ) | $ | — | $ | 34 | $ | (818 | ) | ||||||
Other Comprehensive Income (Loss) before reclassification | (133 | ) | — | 122 | (11 | ) | ||||||||||
Amounts reclassified from AOCI to Earnings | — | — | (264 | ) | (264 | ) | ||||||||||
Other Comprehensive Income (Loss) | (133 | ) | — | (142 | ) | (275 | ) | |||||||||
Balance at January 31, 2020 | $ | (985 | ) | $ | — | $ | (108 | ) | $ | (1,093 | ) | |||||
Other Comprehensive Income (Loss) before reclassification | 710 | — | (239 | ) | 471 | |||||||||||
Amounts Reclassified from AOCI to Earnings | — | — | 193 | 193 | ||||||||||||
Cross-Currency Interest Rate Swap Termination | — | — | 45 | 45 | ||||||||||||
Other Comprehensive Income (Loss) | 710 | — | (1 | ) | 709 | |||||||||||
Balance at January 31, 2021 | $ | (275 | ) | $ | — | $ | (109 | ) | $ | (384 | ) | |||||
Plan (the “2015 Plan”)previous equity incentive plans that are forfeited, cancelled, satisfied without the issuance of stock, otherwise terminated (other than by exercise), or, for shares of stock issued pursuant to any unvested award, that are reacquired by the Companyus at not more
as of January 31, 2021.
On January 31, 2019, the compensation committee of the Company’s board of directors adopted an Amended and Restated
| Years Ended January 31 | ||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (In thousands) | ||||||||||||
Stock Options | $ | 616 | $ | 783 | $ | 437 | ||||||
Restricted Stock Awards and Restricted Stock Units | 1,136 | 1,088 | 1,134 | |||||||||
Employee Stock Purchase Plan | 23 | 15 | 12 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 1,775 | $ | 1,886 | $ | 1,583 | ||||||
|
|
|
|
|
| |||||||
Years Ended January 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
| (In thousands) | ||||||||||||
Stock Options | $ | 517 | $ | 616 | $ | 783 | ||||||
Restricted Stock Awards and Restricted Stock Units | 1,285 | 1,136 | 1,088 | |||||||||
Employee Stock Purchase Plan | 17 | 23 | 15 | |||||||||
Total | $ | 1,819 | $ | 1,775 | $ | 1,886 | ||||||
| Number of Shares | Weighted- Average Exercise Price Per Share | |||||||
Options Outstanding, January 31, 2017 | 685,456 | $ | 11.96 | |||||
Options Granted | 187,189 | 13.57 | ||||||
Options Exercised | (84,025 | ) | 10.08 | |||||
Options Forfeited | (18,750 | ) | 14.49 | |||||
Options Cancelled | (24,600 | ) | 11.76 | |||||
|
|
|
| |||||
Options Outstanding, January 31, 2018 | 745,270 | $ | 12.52 | |||||
Options Granted | 196,000 | 18.21 | ||||||
Options Exercised | (150,125 | ) | 10.62 | |||||
Options Forfeited | (16,300 | ) | 15.10 | |||||
Options Cancelled | (3,700 | ) | 8.95 | |||||
|
|
|
| |||||
Options Outstanding, January 31, 2019 | 771,145 | $ | 14.30 | |||||
Options Granted | — | — | ||||||
Options Exercised | (57,175 | ) | 11.60 | |||||
Options Forfeited | (34,526 | ) | 15.73 | |||||
Options Cancelled | (400 | ) | 6.22 | |||||
|
|
|
| |||||
Options Outstanding, January 31, 2020 | 679,044 | $ | 14.46 | |||||
|
|
|
| |||||
Number of Shares | Weighted- Average Exercise Price Per Share | |||||||
Options Outstanding, January 31, 2018 | 745,270 | $ | 12.52 | |||||
Options Granted | 196,000 | 18.21 | ||||||
Options Exercised | (150,125 | ) | 10.62 | |||||
Options Forfeited | (16,300 | ) | 15.10 | |||||
Options Cancelled | (3,700 | ) | 8.95 | |||||
Options Outstanding, January 31, 2019 | 771,145 | $ | 14.30 | |||||
Options Granted | 0 | 0 | ||||||
Options Exercised | (57,175 | ) | 11.60 | |||||
Options Forfeited | (34,526 | ) | 15.73 | |||||
Options Cancelled | (400 | ) | 6.22 | |||||
Options Outstanding, January 31, 2020 | 679,044 | $ | 14.46 | |||||
Options Granted | 0 | — | ||||||
Options Exercised | (1,200 | ) | 7.60 | |||||
Options Forfeited | (54,361 | ) | 12.89 | |||||
Options Cancelled | (1,400 | ) | 7.36 | |||||
Options Outstanding, January 31, 2021 | 622,083 | $ | 14.63 | |||||
Outstanding | Exercisable | |||||||||||||||||||||||
Range of Exercise prices | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Number of Shares | Weighted- Average Exercise Price | Weighted Average Remaining Contractual Life | ||||||||||||||||||
| $5.00-10.00 | 54,881 | $ | 7.97 | 2.1 | 54,881 | $ | 7.97 | 2.1 | ||||||||||||||||
| $10.01-15.00 | 396,564 | 13.61 | 5.8 | 322,094 | 13.64 | 5.4 | ||||||||||||||||||
| $15.01-20.00 | 227,599 | 17.50 | 7.8 | 112,445 | 17.07 | 7.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| 679,044 | $ | 14.46 | 6.2 | 489,420 | $ | 13.79 | 5.6 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
The fair value of each stock option granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions:
| Years Ended January 31 | ||||||||
| 2019 | 2018 | |||||||
Risk-Free Interest Rate | 2.6 | % | 1.9 | % | ||||
Expected Life (years) | 9 | 9 | ||||||
Expected Volatility | 39.4 | % | 39.0 | % | ||||
Expected Dividend Yield | 1.5 | % | 2.0 | % | ||||
No2021:
Outstanding | Exercisable | |||||||||||||||||||||||
Range of Exercise prices | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Number of Shares | Weighted- Average Exercise Price | Weighted Average Remaining Contractual Life | ||||||||||||||||||
| $5.00-10.00 | 41,044 | $ | 7.97 | 1.3 | 41,044 | $ | 7.97 | 1.3 | ||||||||||||||||
| $10.01-15.00 | 359,314 | 13.63 | 4.9 | 326,741 | 13.65 | 4.7 | ||||||||||||||||||
| $15.01-20.00 | 221,725 | 17.48 | 6.8 | 167,367 | 17.22 | 6.7 | ||||||||||||||||||
| 622,083 | $ | 14.63 | 5.3 | 535,152 | $ | 14.33 | 5.1 | |||||||||||||||||
that would have been received by the option holders if all options had been exercised was $0.3$0.1 million for all exercisable options and $0.3$0.1 million for all options outstanding. The total aggregate intrinsic value of options exercised during 2021, 2020 and 2019 and 2018 was $4,000, $0.5 million and $1.1 million, and $0.4 million, respectively.
| RSAs & RSUs | Weighted-Average Grant Date Fair Value | |||||||
Outstanding at January 31, 2017 | 213,868 | $ | 14.08 | |||||
Granted | 43,737 | 13.78 | ||||||
Vested | (71,171 | ) | 14.12 | |||||
Forfeited | (9,087 | ) | 14.05 | |||||
|
|
|
| |||||
Outstanding at January 31, 2018 | 177,347 | $ | 13.99 | |||||
Granted | 108,790 | 17.85 | ||||||
Vested | (67,447 | ) | 14.26 | |||||
Forfeited | (85,023 | ) | 14.17 | |||||
|
|
|
| |||||
Outstanding at January 31, 2019 | 133,667 | $ | 16.90 | |||||
Granted | 119,522 | 19.86 | ||||||
Vested | (59,930 | ) | 14.50 | |||||
Forfeited | (58,625 | ) | 19.00 | |||||
|
|
|
| |||||
Outstanding at January 31, 2020 | 134,634 | $ | 16.79 | |||||
|
|
|
| |||||
RSAs & RSUs | Weighted-Average Grant Date Fair Value | |||||||
Outstanding at January 31, 2018 | 177,347 | $ | 13.99 | |||||
Granted | 108,790 | 17.85 | ||||||
Vested | (67,447 | ) | 14.26 | |||||
Forfeited | (85,023 | ) | 14.17 | |||||
Outstanding at January 31, 2019 | 133,667 | $ | 16.90 | |||||
Granted | 119,522 | 19.86 | ||||||
Vested | (59,930 | ) | 14.50 | |||||
Forfeited | (58,625 | ) | 19.00 | |||||
Outstanding at January 31, 2020 | 134,634 | $ | 16.79 | |||||
Granted | 245,131 | 7.61 | ||||||
Vested | (64,997 | ) | 17.28 | |||||
Forfeited | (117,355 | ) | 8.83 | |||||
Outstanding at January 31, 2021 | 197,413 | $ | 9.96 | |||||
AstroNova’s
| Years Ended January 31 | ||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
Shares Reserved, Beginning | 33,853 | 39,207 | 45,224 | |||||||||
Shares Purchased | (8,879 | ) | (5,354 | ) | (6,017 | ) | ||||||
|
|
|
|
|
| |||||||
Shares Reserved, Ending | 24,974 | 33,853 | 39,207 | |||||||||
|
|
|
|
|
| |||||||
Years Ended January 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Shares Reserved, Beginning | 24,974 | 33,853 | 39,207 | |||||||||
Shares Purchased | (14,600 | ) | (8,879 | ) | (5,354 | ) | ||||||
Shares Reserved, Ending | 10,374 | 24,974 | 33,853 | |||||||||
| January 31 | ||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (In thousands) | ||||||||||||
Domestic | $ | 1,930 | $ | 6,859 | $ | 2,110 | ||||||
Foreign | (560 | ) | 449 | 3,047 | ||||||||
|
|
|
|
|
| |||||||
| $ | 1,370 | $ | 7,308 | $ | 5,157 | |||||||
|
|
|
|
|
| |||||||
January 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
| (In thousands) | ||||||||||||
Domestic | $ | (1,193 | ) | $ | 1,930 | $ | 6,859 | |||||
Foreign | 3,372 | (560 | ) | 449 | ||||||||
| $ | 2,179 | $ | 1,370 | $ | 7,308 | |||||||
| January 31 | ||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 660 | $ | 1,807 | $ | 592 | ||||||
State | 221 | 457 | 251 | |||||||||
Foreign | 368 | 952 | 284 | |||||||||
|
|
|
|
|
| |||||||
| 1,249 | 3,216 | 1,127 | ||||||||||
|
|
|
|
|
| |||||||
Deferred: | ||||||||||||
Federal | $ | (1,364 | ) | $ | (843 | ) | $ | 903 | ||||
State | (282 | ) | (170 | ) | (25 | ) | ||||||
Foreign | 8 | (625 | ) | (134 | ) | |||||||
|
|
|
|
|
| |||||||
| (1,638 | ) | (1,638 | ) | 744 | ||||||||
|
|
|
|
|
| |||||||
| $ | (389 | ) | $ | 1,578 | $ | 1,871 | ||||||
|
|
|
|
|
| |||||||
January 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
| (In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 1,272 | $ | 660 | $ | 1,807 | ||||||
State | 224 | 221 | 457 | |||||||||
Foreign | 420 | 368 | 952 | |||||||||
| 1,916 | 1,249 | 3,216 | ||||||||||
Deferred: | ||||||||||||
Federal | $ | (910 | ) | $ | (1,364 | ) | $ | (843 | ) | |||
State | (189 | ) | (282 | ) | (170 | ) | ||||||
Foreign | 78 | 8 | (625 | ) | ||||||||
| (1,021 | ) | (1,638 | ) | (1,638 | ) | |||||||
| $ | 895 | $ | (389 | ) | $ | 1,578 | ||||||
| January 31 | ||||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (In thousands) | ||||||||||||
Income Tax Provision at Statutory Rate | $ | 288 | $ | 1,534 | $ | 1,697 | ||||||
U.S. Corporate Rate Change | — | 52 | 1,010 | |||||||||
State Taxes, Net of Federal Tax Effect | (48 | ) | 226 | 149 | ||||||||
Foreign Rate Deferential | 315 | 558 | 752 | |||||||||
Transition Tax on Repatriated Earnings | — | 14 | 104 | |||||||||
Meals and Entertainment | 31 | 56 | 40 | |||||||||
Share Based Compensation | (145 | ) | (127 | ) | 24 | |||||||
Change in Valuation Allowance | 256 | — | — | |||||||||
Change in Reserves Related to ASC 740 Liability | (352 | ) | (34 | ) | (20 | ) | ||||||
Domestic Production Deduction | — | — | (47 | ) | ||||||||
Return to Provision Adjustment | (207 | ) | 58 | (122 | ) | |||||||
TrojanLabel Earn Out Liability Adjustment | — | — | (316 | ) | ||||||||
Global Intangible Low Taxed Income | 107 | — | — | |||||||||
R&D Credits | (209 | ) | (218 | ) | (537 | ) | ||||||
Foreign Derived Intangible Income | (107 | ) | (53 | ) | — | |||||||
Foreign Tax Credits | (344 | ) | (477 | ) | (833 | ) | ||||||
Other | 26 | (11 | ) | (30 | ) | |||||||
|
|
|
|
|
| |||||||
| $ | (389 | ) | $ | 1,578 | $ | 1,871 | ||||||
|
|
|
|
|
| |||||||
The Company’s
January 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
| (In thousands) | ||||||||||||
Income Tax Provision at Statutory Rate | $ | 458 | $ | 288 | $ | 1,534 | ||||||
Denmark Statutory Audit | 341 | — | — | |||||||||
Foreign Rate Deferential | 197 | 315 | 558 | |||||||||
Share Based Compensation | 171 | (145 | ) | (127 | ) | |||||||
Canada Withholding Taxes | 62 | — | — | |||||||||
State Taxes, Net of Federal Tax Effect | 28 | (48 | ) | 226 | ||||||||
Global Intangible Low Taxed Incom e | 14 | 107 | — | |||||||||
Meals and Entertainment | 11 | 31 | 56 | |||||||||
U.S. Corporate Rate Change | — | — | 52 | |||||||||
Transition Tax on Repatriated Earnings | — | — | 14 | |||||||||
Return to Provision Adjustment | (2 | ) | (207 | ) | 58 | |||||||
Change in Reserves Related to ASC 740 Liability | (10 | ) | (352 | ) | (34 | ) | ||||||
Change in Valuation Allowance | (81 | ) | 256 | — | ||||||||
R&D Credits | (157 | ) | (209 | ) | (218 | ) | ||||||
Foreign Derived Intangible Income | (150 | ) | (107 | ) | (53 | ) | ||||||
Foreign Tax Credits | — | (344 | ) | (477 | ) | |||||||
Other | 13 | 26 | (11 | ) | ||||||||
| $ | 895 | $ | (389 | ) | $ | 1,578 | ||||||
The decrease in the effective tax rate for 2019 as compared to 2018 is primarily related to impacts of the Tax Act including the reduction in the statutory tax rate from 35% to 21% along with the absence of theone-time U.S. deferred remeasurement and Transition Tax charges. This decrease was offset by the absence of R&D
credits from amended tax returns and the absence of thenon-taxable TrojanLabel earn out liability adjustment in TrojanLabel ApS impacting the fiscal 2018 effective tax rate.
| January 31 | ||||||||
| 2020 | 2019 | |||||||
| (In thousands) | ||||||||
Deferred Tax Assets: | ||||||||
Inventory | $ | 2,094 | $ | 1,800 | ||||
Honeywell Royalty Liability | 2,583 | 3,146 | ||||||
State R&D Credits | 1,496 | 1,305 | ||||||
Share-Based Compensation | 582 | 493 | ||||||
Compensation Accrual | 159 | 155 | ||||||
Warranty Reserve | 205 | 201 | ||||||
Unrecognized State Tax Benefits | 116 | 133 | ||||||
Deferred Service Contract Revenue | 111 | 91 | ||||||
Bad Debt | 165 | 101 | ||||||
Net Operating Loss | 443 | 505 | ||||||
Foreign Tax Credit | 113 | — | ||||||
Other | 295 | 142 | ||||||
|
|
|
| |||||
| 8,362 | 8,072 | |||||||
Deferred Tax Liabilities: | ||||||||
Intangibles | 776 | 2,660 | ||||||
Accumulated Tax Depreciation in Excess of Book Depreciation | 1,002 | 982 | ||||||
Other | 188 | 238 | ||||||
|
|
|
| |||||
| 1,966 | 3,880 | |||||||
|
|
|
| |||||
Subtotal | 6,396 | 4,192 | ||||||
Valuation Allowance | (1,752 | ) | (1,304 | ) | ||||
|
|
|
| |||||
Net Deferred Tax Assets | $ | 4,644 | $ | 2,888 | ||||
|
|
|
| |||||
January 31 | ||||||||
2021 | 2020 | |||||||
| (In thousands) | ||||||||
Deferred Tax Assets: | ||||||||
Inventory | $ | 2,700 | $ | 2,094 | ||||
Honeywell Royalty Liability | 2,590 | 2,583 | ||||||
State R&D Credits | 1,546 | 1,496 | ||||||
Share-Based Compensation | 600 | 582 | ||||||
Bad Debt | 245 | 165 | ||||||
Warranty Reserve | 176 | 205 | ||||||
Compensation Accrual | 159 | 159 | ||||||
Net Operating Loss | 154 | 443 | ||||||
| ASU 842 Adjustment—Lease Liability | 125 | — | ||||||
Unrecognized State Tax Benefits | 101 | 116 | ||||||
Foreign Tax Credit | 83 | 113 | ||||||
Deferred Service Contract Revenue | 68 | 111 | ||||||
Other | 308 | 295 | ||||||
| 8,855 | 8,362 | |||||||
Deferred Tax Liabilities: | ||||||||
Accumulated Tax Depreciation in Excess of Book Depreciation | 752 | 1,002 | ||||||
Intangibles | 399 | 776 | ||||||
| ASU 842 Adjustment – Lease Liability | 119 | 0 | ||||||
Other | 307 | 188 | ||||||
| 1,577 | 1,966 | |||||||
Subtotal | 7,278 | 6,396 | ||||||
Valuation Allowance | (1,721 | ) | (1,752 | ) | ||||
Net Deferred Tax Assets | $ | 5,557 | $ | 4,644 | ||||
| 2020 | 2019 | 2018 | ||||||||||
| (In thousands) | ||||||||||||
Balance at February 1 | $ | 618 | $ | 665 | $ | 708 | ||||||
Increases in current period tax positions | 2 | 7 | 55 | |||||||||
Reductions related to lapse of statutes of limitations | (26 | ) | (54 | ) | (98 | ) | ||||||
Reductions related to settlement with tax authorities | (232 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Balance at January 31 | $ | 362 | $ | 618 | $ | 665 | ||||||
|
|
|
|
|
| |||||||
2021 | 2020 | 2019 | ||||||||||
| (In thousands) | ||||||||||||
Balance at February 1 | $ | 362 | $ | 618 | $ | 665 | ||||||
Increases in prior period tax position s | 59 | — | — | |||||||||
Increases in current period tax positions | 5 | 2 | 7 | |||||||||
Reductions related to lapse of statutes of limitations | (42 | ) | (26 | ) | (54 | ) | ||||||
Reductions related to settlement with tax authorities | — | (232 | ) | — | ||||||||
Balance at January 31 | $ | 384 | $ | 362 | $ | 618 | ||||||
2020.
2021.
The Company’s
The
and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.
| ($ in thousands) | Revenue | Segment Operating Profit | Segment Operating Profit as a % of Revenue | |||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||
Product Identification | $ | 88,116 | $ | 86,786 | $ | 81,681 | $ | 7,509 | $ | 7,910 | $ | 10,561 | 8.5 | % | 9.1 | % | 12.9 | % | ||||||||||||||||||
T&M | 45,330 | 49,871 | 31,720 | 6,281 | 11,933 | 3,754 | 13.9 | % | 23.9 | % | 11.8 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total | $ | 133,446 | $ | 136,657 | $ | 113,401 | 13,790 | 19,843 | 14,315 | 10.3 | % | 14.5 | % | 12.6 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Corporate Expenses | 11,357 | 11,123 | 8,903 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Operating Income | 2,433 | 8,720 | 5,412 | |||||||||||||||||||||||||||||||||
Other Expense, Net | (1,063) | (1,412) | (255) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Income Before Income Taxes | 1,370 | 7,308 | 5,157 | |||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) | (389 | ) | 1,578 | 1,871 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net Income | $ | 1,759 | $ | 5,730 | $ | 3,286 | ||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
No
| ($ in thousands) | Revenue | Segment Operating Profit (Loss) | Segment Operating Profit (Loss) as a % of Revenue | |||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2019 | 2018 | ||||||||||||||||||||||||||||
Product Identification | $ | 90,268 | $ | 88,116 | $ | 86,786 | $ | 12,885 | $ | 7,509 | $ | 7,910 | 14.3 | % | 8.5 | % | 9.1 | % | ||||||||||||||||||
T&M | 25,765 | 45,330 | 49,871 | (1,032 | ) | 6,281 | 11,933 | (4.0 | )% | 13.9 | % | 23.9 | % | |||||||||||||||||||||||
Total | $ | 116,033 | $ | 133,446 | $ | 136,657 | 11,853 | 13,790 | 19,843 | (10.3 | )% | 10.3 | % | 14.5 | % | |||||||||||||||||||||
Corporate Expenses | 9,420 | 11,357 | 11,123 | |||||||||||||||||||||||||||||||||
Operating Income | 2,433 | 2,433 | 8,720 | |||||||||||||||||||||||||||||||||
Other Expense, Net | (254 | ) | (1,063 | ) | (1,412 | ) | ||||||||||||||||||||||||||||||
Income Before Income Taxes | 2,179 | 1,370 | 7,308 | |||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) | 895 | (389 | ) | 1,578 | ||||||||||||||||||||||||||||||||
Net Income | $ | 1,284 | $ | 1,759 | $ | 5,730 | ||||||||||||||||||||||||||||||
2019.
| (In thousands) | Assets | |||||||
| 2020 | 2019 | |||||||
Product Identification | $ | 55,427 | $ | 51,639 | ||||
T&M | 56,988 | 59,702 | ||||||
Corporate* | 4,249 | 7,642 | ||||||
|
|
|
| |||||
Total | $ | 116,664 | $ | 118,983 | ||||
|
|
|
| |||||
| (In thousands) | Assets | |||||||
2021 | 2020 | |||||||
Product Identification | $ | 50,047 | $ | 51,439 | ||||
T&M | 51,262 | 57,050 | ||||||
Corporate* | 14,164 | 8,175 | ||||||
Total | $ | 115,473 | $ | 116,664 | ||||
| * | Corporate assets consist principally of cash, cash equivalents, deferred tax assets and |
| (In thousands) | Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||
Product Identification | $ | 1,928 | $ | 1,888 | $ | 1,536 | $ | 2,001 | $ | 1,935 | $ | 1,497 | ||||||||||||
T&M | 4,356 | 4,264 | 2,458 | 905 | 710 | 707 | ||||||||||||||||||
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Total | $ | 6,284 | $ | 6,152 | $ | 3,994 | $ | 2,906 | $ | 2,645 | $ | 2,204 | ||||||||||||
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| (In thousands) | Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Product Identification | $ | 1,835 | $ | 1,928 | $ | 1,888 | $ | 1,563 | $ | 2,001 | $ | 1,935 | ||||||||||||
T&M | 4,148 | 4,356 | 4,264 | 1,024 | 905 | 710 | ||||||||||||||||||
Total | $ | 5,983 | $ | 6,284 | $ | 6,152 | $ | 2,587 | $ | 2,906 | $ | 2,645 | ||||||||||||
| (In thousands) | Revenue | Long-Lived Assets* | ||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||
United States | $ | 83,671 | $ | 83,668 | $ | 69,795 | $ | 34,072 | $ | 36,750 | ||||||||||
Europe | 29,617 | 31,574 | 29,948 | 2,544 | 3,223 | |||||||||||||||
Asia | 8,316 | 8,207 | 3,808 | — | — | |||||||||||||||
Canada | 5,719 | 6,692 | 5,373 | 35 | 81 | |||||||||||||||
Central and South America | 4,145 | 4,147 | 3,402 | — | — | |||||||||||||||
Other | 1,978 | 2,369 | 1,075 | — | — | |||||||||||||||
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Total | $ | 133,446 | $ | 136,657 | $ | 113,401 | $ | 36,651 | $ | 40,054 | ||||||||||
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| (In thousands) | Revenue | Long-Lived Assets* | ||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | ||||||||||||||||
United States | $ | 70,911 | $ | 83,671 | $ | 83,668 | $ | 31,226 | $ | 34,072 | ||||||||||
Europe | 29,029 | 29,617 | 31,574 | 2,274 | 2,544 | |||||||||||||||
Canada | 5,574 | 5,719 | 6,692 | 13 | 35 | |||||||||||||||
Asia | 5,105 | 8,316 | 8,207 | — | — | |||||||||||||||
Central and South America | 3,950 | 4,145 | 4,147 | — | — | |||||||||||||||
Other | 1,464 | 1,978 | 2,369 | — | — | |||||||||||||||
Total | $ | 116,033 | $ | 133,446 | $ | 136,657 | $ | 33,513 | $ | 36,651 | ||||||||||
| * | Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2021 and 2020 and |
2019. Balance, beginning of the year Provision for Warranty Expense Cost of Warranty Repairs Balance, end of the year 16—18—Employee Benefit PlansAstroNova sponsors the of the Company The Company’sOur annual contribution amounts are determined by the Board of Directors. Contributions paid or accrued amounted to $0.4 million in fiscal 2021 and $0.5 million in each year inboth fiscal 2020 2019 and 2018.17—19—Product Warranty LiabilityAstroNova offersitsour hardware products. The specific terms and conditions of warranty vary depending upon the products sold and country in which the Company doeswe do business. The Company estimatesWe estimate the warranty costs based on historical claims experience and recordsrecord a liability in the amount of such estimates at the time product revenue is recognized. The CompanyWe regularly assessesassess the adequacy of itsour recorded warranty liabilities and adjusts the amounts as necessary. Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows: January 31 �� 2020 2019 2018 (In thousands) $ 832 $ 575 $ 515 1,733 1,680 1,294 (1,715 ) (1,423 ) (1,234 ) $ 850 $ 832 $ 575 (In thousands) $ 850 $ 832 $ 575 855 1,733 1,680 (975 ) (1,715 ) (1,423 ) $ 730 $ 850 $ 832 18—20—Concentration of Riskthe Company’sour customer base. The CompanyWe periodically performsperformitsour customers. The Company hasWe have not historically experienced significant credit losses on collection of itsour accounts receivable.
2019.
The Company is
Assets measured at fair value: | Fair value measurement at January 31, 2020 | Fair value measurement at January 31, 2019 | ||||||||||||||||||||||||||||||
| (in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Interest Rate Swap Contract (included in Other Assets) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 85 | $ | — | $ | 85 | ||||||||||||||||
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Total assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 85 | $ | — | $ | 85 | ||||||||||||||||
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Liabilities measured at fair value: | Fair value measurement at January 31, 2020 | Fair value measurement at January 31, 2019 | ||||||||||||||||||||||||||||||
| (in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cross-Currency Interest Rate Swap Contract (included in Other Long-Term Liabilities) | $ | — | $ | 250 | $ | — | $ | 250 | $ | — | $ | 600 | $ | — | $ | 600 | ||||||||||||||||
Interest Rate Swap Contract (included in Other Long-Term Liabilities) | — | 96 | — | 96 | — | — | — | — | ||||||||||||||||||||||||
Earnout Liability (included in Other Liabilities) | — | — | 14 | 14 | — | — | 14 | 14 | ||||||||||||||||||||||||
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Total liabilities | $ | — | $ | 346 | $ | 14 | $ | 360 | $ | — | $ | 600 | $ | 14 | $ | 614 | ||||||||||||||||
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Liabilities measured at fair value: | Fair value measurement at January 31, 2021 | Fair value measurement at January 31, 2020 | ||||||||||||||||||||||||||||||
| (in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Cross-Currency Interest Rate Swap Contract (included in Other Long-Term Liabilities) | $ | — | $ | 0— | $ | — | $ | — | $ | — | $ | 250 | $ | — | $ | 250 | ||||||||||||||||
Interest Rate Swap Contract (included in Other Long-Term Liabilities) | — | 0— | — | — | — | 96 | — | 96 | ||||||||||||||||||||||||
Earnout Liability (included in Other Liabilities) | — | — | — | — | — | — | 14 | 14 | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | 0— | $ | — | $ | — | $ | — | $ | 346 | $ | 14 | $ | 360 | ||||||||||||||||
The fair value
value of the contingent consideration liability included (1) the estimated earnout targets over the next seven years of $0.5 million-$1.4 million, (2) the probability of success (achievement of the various contingent events) from0.0%-0.9% and (3) a risk-adjusted discount rate of approximately2.68%-4.9% used to adjust the probability-weighted earnout payments to their present value. At each reporting period, the contingent consideration liability is recorded at its fair value with changes reflected in general and administrative expense in the condensed consolidated statements of operations.
Long-Term Debt and Related Current Maturities Long-Term Debt and Related Current MaturitiesThe Company’s Fair Value Measurement at
January 31, 2020 (In thousands) Level 1 Level 2 Level 3 Total Carrying
Value $ — $ — $ 13,258 $ 13,258 $ 13,034 Fair Value Measurement at
January 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Carrying
Value $ — $ — $ 18,857 $ 18,857 $ 18,242
January 31, 2021 (In thousands)
Value $ — $ — $ 12,586 $ 12,586 $ 12,576
January 31, 2020 (In thousands)
Value $ — $ — $ 13,258 $ 13,258 $ 13,034 the Company’sour long-term debt, including the current portion, is estimated by discounting the future cash flows using current interest rates at which similar borrowings with the same maturities would be made to borrowers with similar credit ratings and is classified as Level 3.21—211, 2020,24, 2021, we entered into a First Amendment to Credit Agreement (the “Amendment”) to the World Health Organization announced thatCOVID-19, a respiratory illness, causedA&R Credit Agreement(the “A&R Credit Agreement,”a novel coronavirus first identified in China, is apandemic. COVID-19 has spreadthe Amendment; the “Amended Credit Agreement”) with Bank of America, N.A., as lender (the “Lender”), ANI ApS and TrojanLabel. Immediately prior to manythe closing of the countriesAmendment, we repaid $2.6 million in principal amount of the term loan outstanding under the A&R Credit Agreement, resulting in an outstanding balance of the term loan of $10.0 million and no amount drawn and outstanding under the revolving credit facility under the A&R Credit Agreement.we, our customers, our suppliers and our other business partners conduct business. Governmentswas used to refinance, in affected regions have implemented, andfull, the outstanding term loan under the A&R Credit Agreement. Under the Amended Credit Agreement, revolving credit loans may continue to implement, safety precautionsbe borrowed, at our option, in U.S. Dollars or, subject to certain conditions, Euros, British Pounds, Canadian Dollars or Danish Kroner.
The Company continues to monitor its operations and government recommendations and has made modifications to its normal operations because of theCOVID-19 outbreak, including requiring most of itsnon-production related team members to work remotely. The Company has maintained a substantial portion of its manufacturing operational capacity at its primary manufacturing facility located at West Warwick, Rhode Island, as well as its manufacturing facilities in Canada and Germany, at this time, and has instituted heightened cleaning and sanitization standards and several health and safety protocols and procedures to safeguard its team members.
TheCOVID-19 outbreak has caused the Company to experience a number of adverse impacts, including reductions in demand for its products, delays and cancellations of orders for its products, difficulties in obtaining raw materials and components for its products, shortages of labor to manufacture products, inefficiencies caused by remote worker’s difficulties in performing their normal work outputs, closures of the facilities of some of its suppliers and customers, and delays in collecting accounts receivable. Disruptions in the capital markets as a result of theCOVID-19 outbreak may also adversely affect the Company if these impacts continue for a prolonged period and the Company needs additional liquidity.
The rapid development and uncertainty of the impacts of theCOVID-19 pandemic precludes any prediction asIsland. Pursuant to the ultimate adverse impactAmendment, the guarantees of theCOVID-19 outbreak onour obligations under the Company’s business. However,COVID-19
Prior Credit Agreement that were previously provided by ANI ApS and the measures taken to contain it present material uncertainty and risk with respect to the Company’s performance and financial results. In particular, the aerospace industry, which the Company serves through its aerospace printer product line, has been significantly disrupted by theCOVID-19 outbreak, both inside and outsideTrojanLabel were released.
Revenue Cost of Revenue Gross Profit Operating Expenses (3): Selling & Marketing Research & Development General & Administrative Total Operating Expenses Operating Income Other Expense, Net Income (Loss) Before Taxes Income Tax (Benefit) Provision Net Income (Loss) Net Income (Loss) per Common Share—Basic Net Income (Loss) per Common Share—Diluted 2020 2019 (In thousands, except per share data) Q1 Q2 Q3 Q4 Q1 (1) Q2 Q3 Q4 (2) $ 36,181 $ 33,468 $ 33,318 $ 30,479 $ 31,487 $ 33,807 $ 34,196 $ 37,167 21,942 21,491 21,021 20,234 19,377 20,408 20,288 22,585 14,239 11,977 12,297 10,245 12,110 13,399 13,908 14,582 39.4 % 35.8 % 36.9 % 33.6 % 38.5 % 39.6 % 40.7 % 39.2 % $ 6,765 $ 6,413 $ 6,944 $ 6,762 $ 6,500 $ 6,397 $ 6,587 $ 6,858 2,007 1,785 2,076 2,216 1,692 2,029 2,123 1,969 2,999 2,616 2,830 2,912 2,653 2,808 2,836 2,825 11,771 10,814 11,850 11,890 10,845 11,234 11,546 11,652 2,468 1,163 447 (1,645 ) 1,265 2,165 2,362 2,930 6.8 % 3.5 % 1.3 % (5.4 )% 4.0 % 6.4 % 6.9 % 7.9 % (368 ) (183 ) (238 ) (275 ) (270 ) (512 ) (538 ) (92 ) 2,100 980 209 (1,920 ) 995 1,653 1,824 2,838 400 29 (247 ) (572 ) 181 459 407 532 $ 1,700 $ 951 $ 456 $ (1,348 ) $ 814 $ 1,194 $ 1,417 $ 2,306 $ 0.24 $ 0.14 $ 0.06 $ (0.19 ) $ 0.12 $ 0.17 $ 0.21 $ 0.33 $ 0.23 $ 0.13 $ 0.06 $ (0.19 ) $ 0.12 $ 0.17 $ 0.20 $ 0.32 $ 30,919 $ 27,658 $ 28,017 $ 29,438 $ 36,181 $ 33,468 $ 33,318 $ 30,479 20,064 17,871 18,282 18,456 21,942 21,491 21,021 20,234 10,855 9,787 9,735 10,982 14,239 11,977 12,297 10,245 35.1 % 35.4 % 34.7 % 37.3 % 39.4 % 35.8 % 36.9 % 33.6 % $ 5,925 $ 5,555 $ 5,553 $ 6,267 $ 6,765 $ 6,413 $ 6,944 $ 6,762 1,940 1,493 1,412 1,361 2,007 1,785 2,076 2,216 2,327 2,535 2,353 2,206 2,999 2,616 2,830 2,912 10,192 9,583 9,318 9,834 11,771 10,814 11,850 11,890 663 204 417 1,148 2,468 1,163 447 (1,645 ) 2.1 % 0.7 % 1.5 % 3.9 % 6.8 % 3.5 % 1.3 % (5.4 )% (349 ) 328 (437 ) 204 (368 ) (183 ) (238 ) (275 ) 314 532 (20 ) 1,352 2,100 980 209 (1,920 ) (118 ) 529 (32 ) 516 400 29 (247 ) (572 ) $ 432 $ 3 $ 12 $ 836 $ 1,700 $ 951 $ 456 $ (1,348 ) $ 0.06 $ 0.00 $ 0.00 $ 0.12 $ 0.24 $ 0.14 $ 0.06 $ (0.19 ) $ 0.06 $ 0.00 $ 0.00 $ 0.12 $ 0.23 $ 0.13 $ 0.06 $ (0.19 ) The first quarter of fiscal 2019 includes (a) income of $1.0 million ($0.8 million net of tax or $0.12 per diluted share) for a change in accounting estimate for product costs and operating expenses related to the Honeywell TSA and (b) income of $0.4 million ($0.3 million net of tax or $0.05 per diluted share) for change in accounting estimates for revenue subject to customer rebates under the Honeywell Agreement. Both changes in accounting estimates were the result of actual amounts billed and received differing from initial estimates.(2)The fourth quarter of fiscal 2019 includes $0.1 million, or $0.01 per diluted share, of tax expense related to the enactment of the Tax Act.(3)the Company’sour current presentation at
Description | Balance at Beginning of Year | Provision/ (Benefit) Charged to Operations | Deductions(2) | Balance at End of Year | ||||||||||||
Allowance for Doubtful Accounts(1): | ||||||||||||||||
| (In thousands) | ||||||||||||||||
Year Ended January 31, | ||||||||||||||||
2020 | $ | 521 | $ | 546 | $ | (211 | ) | $ | 856 | |||||||
2019 | $ | 377 | $ | 310 | $ | (166 | ) | $ | 521 | |||||||
2018 | $ | 266 | $ | 119 | $ | (8 | ) | $ | 377 | |||||||
Description | Balance at Beginning of Year | Provision/ (Benefit) Charged to Operations | Deductions(2) | Balance at End of Year | ||||||||||||
Allowance for Doubtful Accounts(1): | ||||||||||||||||
| (In thousands) | ||||||||||||||||
Year Ended January 31, | ||||||||||||||||
2021 | $ | 856 | $ | 194 | $ | 4 | $ | 1,054 | ||||||||
2020 | $ | 521 | $ | 546 | $ | (211 | ) | $ | 856 | |||||||
2019 | $ | 377 | $ | 310 | $ | (166 | ) | $ | 521 | |||||||
| (1) | The allowance for doubtful accounts has been netted against accounts receivable in the balance sheets as of the respective balance sheet dates. |
| (2) | Uncollectible accounts written off, net of recoveries. |
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