AstroNova Announces Key Activities in Advance of its April Earnings Release

AstroNova, Inc. (Nasdaq: ALOT) (“AstroNova” or the “Company”), a global leader in data visualization technologies, has successfully executed a waiver and amendment of its revolving credit facility and term loans with Bank of America. In addition, the Company reported preliminary unaudited financial results for its fiscal 2025 fourth quarter ended January 31, 2025 and announced a restructuring plan expected to generate annualized cost savings of $3 million.

Amendment and Waiver Relating to Credit Agreement

The Company obtained an amendment and waiver with regard to its credit agreement with Bank of America. Among other changes to the credit agreement, the amendment waives certain covered covenants as of the end of its fiscal quarter ended January 31, 2025, provides for relaxed financial covenant ratios during fiscal 2026, and provides for reduced payments of certain of its term loans during fiscal 2026 as the Company implements its restructuring efforts, after which the payments of such term loan increase. The amended credit agreement provides for up to $2 million in add-backs to the Company’s consolidated EBITDA (as defined in the credit agreement) for Company cash restructuring charges in fiscal 2026.

Preliminary Fourth-Quarter Fiscal 2025 Financial Results

For the three months ended January 31, 2025, the Company preliminarily reports unaudited revenues of approximately $37.4 million compared with $39.6 million in the prior-year quarter. The results primarily reflected lower sales of large Trojan Label printers, obsoleted products in the Product Identification (PI) segment, the timing of two large defense orders that occurred in the fourth quarter of fiscal 2024 but are not anticipated to reoccur until the first half of the current fiscal 2026, and the longer-than-anticipated ramp up of orders following the Boeing strike. AstroNova also expects to record a $13.4 million non-cash goodwill impairment charge related to the PI segment, largely associated with the Company’s MTEX business.

The fourth-quarter fiscal 2025 audit is not yet completed as of this date. The Company expects to report its fourth-quarter and full-year fiscal 2025 financial results on April 14, 2025.

Fiscal 2026 Guidance

For fiscal year 2026, the Company is projecting revenues in the range of $160 million to $165 million, with an EBITDA margin in the range of 8.5% to 9.5%. Beyond fiscal year 2026 the Company expects further improvements based on its key strategic initiatives and restructuring plan.