ALOT - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the AstroNova's First Fourth Quarter Fiscal 2022 Financial Results Conference Call. Today's conference is being recorded. I would now like to turn the conference over to David Calusdian of the company's Investor Relations firm, Sharon Merrill Associates. Please go ahead.

David Calusdian

Thank you. thanks us. and everyone morning, for joining Good Hosting and company's CEO; call are Chief AstroNova's President Greg Woods, and Officer. this morning's Financial David Smith, the Greg then management will be happy results, Greg company's your make will will questions. take the will and on financials, David comments concluding to discuss the comment operating have copy today. you of By release earnings should now, the received a issued that was

actual are These today, made Please section except have today's statements assumptions you a please Investors materially, undertakes within statements could AstroNova Any copy, results the as Act are these Reform not based required that of to are by statements Accordingly, during Securities XXXX. XXXX. of Private statements. statements the a XX, historical number of do no note of could website, on as not forward-looking www.astronovainc.com. obligation speak If only update law. to differ go the the involve statements company that The facts forward-looking June meaning of Litigation that uncertainties. risks forward-looking call and forward-looking of considered

further amortization see For Exchange share-based in will On non-GAAP depreciation, EBITDA. management before risk forward-looking compensation, with the the regarding makes or Securities and filings other annual factors referring and and and the AstroNova's XX-K be earnings on the the report taxes, Form Commission. factors differences, cause company information interest, to today's call, that financial may adjusted adjusted the the please statements measure,

earnings of operating measure to other between non-GAAP also over And help directly believes and gain company's the helps on release. to in call basis. its a and and today's Greg. investors with that is meaningful measure can A GAAP most companies this core available I'll that, the this in of a the turn non-GAAP wish changes AstroNova reconciliation comparable GAAP to both make measure who AstroNova understanding the investors comparisons of inclusion results

Greg Woods

everyone morning, Good joining Thank and you, thank us. David. for you

first prior quarter continued fiscal the the of and revenue our of in XXX effects portion due segment, shipments. our came the the from $XX.X softness XXXX as the in growth year, edification the in of and at segment, X% to pandemic measurement offset aerospace and MAX For top-line partly slow in million, recovery down test product

Although beginning economy areas the certain see to of as open in global challenged, up economies begin is travel air still we're to and recovery increases. signs

for first XX% for quarter Our product and of our aerospace diversification the were XXXX. record aerospace segment, bookings book sequentially, the bookings delivering to positive up the statement portion and posted fiscal bill test quarter measurement since

Operating job flat team, quarter. in operating the profit as was reflected were On the members the and done bringing cost increased in of year's margins nearly quarter from year profitability side up an have in down excellent prior the our over team higher our expenses XX%. our our essentially first past expenses and

continues investment. printers greater to efficiency TX-OPX performance our to terms to Turning format line. from durable, and system surpass package to high are return segment, their X% across QX are direct contributions wide in product Brand identification the benefits revenue OEMs million up $XX.X with was profiting product's The and printing expectations. owners, many of product commercial a on solid by

paced enhancements revenue city from the XX% Domestic As with office international of year that QX, members in up QX in sales accounted locations. a a From in last recent and result, versus attract standpoint, end in first the location organization the new quarter China the XX% markets of fiscal geographic quarter On EMEA TX-OPX Since by total talked the team channel a year. accounted the world. we to in sales the around uptick of of our in I continues nice new recent expansion addition sales for Guangzhou. revenue for XXXX. customers for experienced Southern to new with then, support about international a sales the total nearly of have call, stepped in hiring port up revenue our XX% XX% our in

Guangzhou, Now in in to in both a Asia business Shanghai region. much and the we're our grow position stronger Pacific

in We including are regional recently reinforcing and in a food show with participated our stronger trade four APEC investment presence, having shows industries, cosmetics. niche

Looking Vegas, attract have year demonstrating our digital technology. our latest existing customers eStudies, and our new pack support course and expanding and will customers of will a be marketing this at the booth Las expo exposition fall, our other product where invest continuing ahead initiatives, we lineup the to eBooks, help optimize videos in we the to to in tools our

Looking at test our measurement segment. and

revenue And the seeing. worldwide. Format that Honeywell bit as rigorous areas, use we This the substantial exclusive When quality the Portfolio. engineering, supply third to to entered global the from period say Printer business flight XX% to and us for qualification slow to aftermarket Airbus and indicators quarter the intermediary. commercial may one be printers XXXX and been jet to from us the that be products means for XXXX in benefits Airbus's an in through we recovery. same pandemic areas XXX was analysts all into are tier of down a overall across XXX in full range of improving have one manufacturing aircraft. a commercial enables positive passenger industry return manufacture to has Narrow supply ship AXXX-family will Airbus directly tier the months third with and International Airbus, take than the felt place levels First astronauts We Cockpit party agreement of supply about still faster effects party for designation the industry. worldwide aerospace moment designed of supplier standards aircraft acquired The while license see engineered A I and many printers Since the from recently certain for direct our a status XXXX. it correspondingly rather restart, ago support. talked achieved PTA-XXB are aerospace to of across the fiscal MAX since manufactured those continued a agreement we commercial the

program expanding As forward we well network and relationship are look further in part our to supplier the to future. honored direct of be management, Airbus as the

Now, let me to review. for the turn financial David the call over

David Smith

Greg Thanks to we while Greg comprehensive the and quarter, everybody. a in review. costs our gave growing good prudently the first to will morning In continued business. continuing segment manage invest

that I'll filed the P&L more QX XX-Q from and also sheet. a So today. be mention few I'll just note our will items balance

$X.X demand XXXX prior period and fiscal materials continues. supply the fiscal fiscal Measurement $X.X the to from supplies we've part in COVID-XX as the Looking the weaker with million stocking in quarter, last the first of quarter and associated other was experienced the in $XX.X revenue as at early revenue year, pandemic, And products the Test Service this Customers supply raw challenges was revenue the for the versus $X.X throughout million we to our aerospace was by in type, Identification some obtaining Hardware compared Supplies period, was in XXXX, reflecting year in million in components some on The in segment. orders this revenue well some chain of from pandemic revenue our, fiscal year-over-year million compared up reflected from variance million ago. and It's first year now $XX.X XXXX. XXXX. a in $X.X Product same million what industry think decline as

million. err from were the fourth or fiscal for first year began over $XX.X sequentially XXXX and is we and and share-based for of inventories EBITDA materially expedited only additional modestly just QX of X% challenges reporting far, adjusted before XX% system. shipping remain they're think financial Beginning current We've the end down we XXXX. with for supply take that further revenue quarter results shortages than worked the carrying and once extent our EBITDA a the quarter, to in these strategies quarter probably reason caution. and time with million was not some addressing of Bookings needed. some and have as really in our So long costs To couple shortages range things of quarter, affected year period manageable, proactively more first the view inventory these that compensation we've continue quarters the had or and fees been or adjusted the the out fiscal to year issues is on I've express these with it and resulted will X.X% for like adjusted to X.X% in customers that up we $X.X planning throughout relationships don't million us being EBITDA, we're this planned to inventory potential in end which managed side shipping $X.X will but at of our are that supplementing compared

will loan call; closed the a excludes when PPP the that forgiveness at when We the was the been of PPP the at for of balance quarter of for the while. we $X.X end process reflecting while the talked to quarter, made debt don't from $X.X on reductions our unchanged and of Turning fiscal sheet end equivalents we about just in loan government the million, we at application credit our end down has $XX.X year, the know this last million stood the the end. $XX.X quarter million at your amended But it. agreement, in this from million cash debt

Before you to East that I know next Greg, turn week Conference. the Coast I participating let Virtual we'll Ideas the just call back want in to be

website to X:XX I'll AM, the to scheduled call our XX turn Our for comments. on closing Greg all presentation segment is at with the of back Wednesday, beginning now investor be June available that, and

Greg Woods

Thanks, David.

remains the the paying that innovation, to like a measurement geographic for on And profitability the products then be growing commercial to well in TX-OPX continue slow we the our direct Core that industry. pandemic pace and aerospace Domestically, uncertainty our package and Strategic across of greater capitalize test that unique only market to And off. industry. create momentum indication are global expanding while enable lingering delivering world-class achieve effects investing addressing to the the probably gradually is printing We turning Tenants, seems positioned to on to strategy with the focus a recovery player, customers continue in our footprint adjacent for efficiency with market corner segments as and is solutions the our segment. over and of

Operator? Now, to take David, happy your I'd be questions.

Operator

Thank you. [Operator Instructions]. Yeah.

Ryan from comes Dick from question Colliers first Our

Dick Ryan

Thank you.

and does the required about talked Airbus, So participation Greg, side? that anymore Honeywell status tier you're not for their you on how now mean fees with pay one Boeing about the to

Greg Woods

Boeing. yeah, Airbus, can with for terms With Yeah, were in the of agreement wrapping the the on tier a work with finalize Boeing. going of for three Honeywell. in now are Airbus. exact fees supplier people timing agreement, everything year This of we Honeywell to completion It's yeah, we no of and to us, still there respect It's kind Boeing There's this that. some negotiations up that there. one

So piece piece agreement, to of we which was get the most Honeywell the right and Airbus locked difficult now service up on wind we now. working down just transition need that, we're the which

Dick Ryan

The like What, to obviously XXX related or backlog strength the booking across seeing to it looks starts flow. It there? spectrum? you was much Okay. are the pretty the XXX was

Greg Woods

we Yeah, checkup up across of But is but piece we compared small as the that the a at we to and small beginning getting we the to seeing what XXXX. ramp where into they with spectrum were now start the information still The that's coming very to said that of a XX, should that as Boeing are get just It’s to is it's are from line we levels it up in a past from be still very number quarter-by-quarter. was in of have low the they kind are kind latest XXXX. level seeing XX now. have in MAX,

up that's good as track their they'll support more they're with and as hear that that, that. they on of manufacturing. to in more And ramp need as do to course, So printers

Dick Ryan

they're sitting is you a inventory of their how look printers much that, does with? what inventory sense Can like? of What give

Greg Woods

a the They because airline from it actually is lot. to they purchased the they in and production. don't typically keep Boeing ship Yeah, XXX, time us drop again, directly the keep for it

but keep they don't do that slow to typically hand tens there down buffer. Obviously they slow that's on of their kind want it case is they of in kind Seattle. delivery, airline the low So keep an numbers on in a

Dick Ryan

Okay.

staffing that APAC increased the mentioned is you side, now ID product the On what's China, percent what in and grow? opportunity the working revenues of in

Greg Woods

than Yeah, they've we breakout of with can large normal most we see China lot they're percentage, a kind January. back it in and what in we bounced don't a from grow, specific to quicker economy back and the very but is pandemic

So potential, have it's lot but in get we hard of want South, in a we from but to to business, cause the Shanghai. very we just well-represented get, weren't business there

So point is looking but area already business we'd we that nearly publish that the we the actual this have business Because China of of year that up we potential we to the expect from we office. expect the as to Northern Yeah. a year-over-year in ramp have double don't at country. the equal numbers, our in and the kind next part

Dick Ryan

know of but a you see first flowing from sense 'XX can base? you I as give fiscal us Okay. you of guidance, give specific kind don't a a quarter 'XX, how

Greg Woods

orders in is in said, is on I pickup seeing the seeing could I Yeah, Measurement the we pre-pandemic Segment Product and were nice our in don't side Identification Measurement which up maybe have that that highlight still Test are just ramp of orders a they say behind things you level already Test I our we're the while that where to. aerospace portions know obviously And we're what

So and of great vaccines up Country's drivers that us. for the the macro open recovering we as that's and the positive indication see a and

are in do business. are last it's this our to by April flying; its it I the XX% aerospace they planes talk to, from you of down more of of But of So year international business, April depends still, all MRO our saw this seeing but in kind things more and increases morning year. and portion is international down, who the we're driven

there need that to but we signs back So positive bounce there. are to

Operator

closing Again, it this like questions at additional for remarks. now [Operator back Instructions]. to Yeah, no time. I'd Mr. turn to Woods

Greg Woods

quarter. joining progress. this thanks on keeping We look next we'll us our I to to you talk And know. well, for Hey, you morning. everyone forward updated

Operator

and concludes today's you, gentlemen, this Thank ladies presentation.

You may now disconnect.

AstroNova (ALOT) 10 Jun 212022 Q1 Earnings call transcript