QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading |
Name of each exchange | ||
Large accelerated filer | ☐ | ☒ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
Page No. |
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Part I. |
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Item 1. |
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3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
8-21 |
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Item 2. |
21-31 |
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Item 3. |
31 | |||||
Item 4. |
31 | |||||
Part II. |
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Item 1. |
32 | |||||
Item 1A. |
32-33 |
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Item 2. |
33 | |||||
Item 5. |
33 | |||||
Item 6. |
34 | |||||
35 |
Item 1. |
Financial Statements |
October 31, 2020 |
January 31, 2020 |
|||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and Cash Equivalents |
$ | $ | ||||||
Accounts Receivable, net |
||||||||
Inventories, net |
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Prepaid Expenses and Other Current Assets |
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Total Current Assets |
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Property, Plant and Equipment, net |
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Intangible Assets, net |
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Goodwill |
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Deferred Tax Assets |
||||||||
Right of Use Assets |
||||||||
Other Assets |
||||||||
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TOTAL ASSETS |
$ | $ | ||||||
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|
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|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts Payable |
$ | $ | ||||||
Accrued Compensation |
||||||||
Other Liabilities and Accrued Expenses |
||||||||
Current Portion of Long-Term Debt |
||||||||
Revolving Credit Facility |
— | |||||||
Current Liability – Royalty Obligation |
||||||||
Current Liability – Excess Royalty Payment Due |
||||||||
Deferred Revenue |
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|
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Total Current Liabilities |
||||||||
Long-Term Debt, net of current portion |
||||||||
Royalty Obligation, net of current portion |
||||||||
Long-Term Debt – PPP Loan |
— | |||||||
Lease Liabilities, net of current portion |
||||||||
Other Long-Term Liabilities |
||||||||
Deferred Tax Liabilities |
||||||||
|
|
|
|
|||||
TOTAL LIABILITIES |
||||||||
SHAREHOLDERS’ EQUITY |
||||||||
Common Stock, $ |
||||||||
Additional Paid-in Capital |
||||||||
Retained Earnings |
||||||||
Treasury Stock, at Cost, |
( |
) | ( |
) | ||||
Accumulated Other Comprehensive Loss, net of tax |
( |
) | ( |
) | ||||
|
|
|
|
|||||
TOTAL SHAREHOLDERS’ EQUITY |
||||||||
|
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|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | $ | ||||||
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
|||||||||||||
Revenue |
$ | $ | $ | $ | ||||||||||||
Cost of Revenue |
||||||||||||||||
Gross Profit |
||||||||||||||||
Operating Expenses: |
||||||||||||||||
Selling and Marketing |
||||||||||||||||
Research and Development |
||||||||||||||||
General and Administrative |
||||||||||||||||
Operating Expenses |
||||||||||||||||
Operating Income |
||||||||||||||||
Other Expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income (Loss) Before Income Taxes |
( |
) | ||||||||||||||
Income Tax (Benefit) Provision |
( |
) | ( |
) | ||||||||||||
Net Income |
$ | $ | $ | $ | ||||||||||||
Net Income per Common Share - Basic: |
$ | $ | $ | $ | ||||||||||||
Net Income per Common Share - Diluted: |
$ | $ | $ | $ | ||||||||||||
Weighted Average Number of Common Shares Outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
|||||||||||||
Net Income |
$ | $ | $ | $ | ||||||||||||
Other Comprehensive Income (Loss), Net of Taxes: |
||||||||||||||||
Foreign Currency Translation Adjustments |
( |
) | ( |
) | ||||||||||||
Change in Value of Derivatives Designated as Cash Flow Hedge |
( |
) | ||||||||||||||
Losses (Gains) from Cash Flow Hedges Reclassified to Income Statement |
— | ( |
) | |||||||||||||
Cross-Currency Interest Rate Swap Termination |
— | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other Comprehensive Income (Loss) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive Income (Loss) |
$ | ( |
) | $ | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||
Balance February 1, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | — | — | — | ||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Common Stock – Cash Dividend - $ |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance May 2, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | — | — | — | ||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance August 1, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
|
— | — | — | ||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
— | — | — | — | — | — | ||||||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive (Loss) |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance October 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||
Balance February 1, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | ( |
) | — | ||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Common Stock – Cash Dividend - $ |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance May 4, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | — | ||||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Common Stock – Cash Dividend - $ |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance August 3, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | — | — | |||||||||||||||||||||||||
Cash Dividend—$ per share |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance November 2, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||
October 31, 2020 |
November 2, 2019 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net Income |
$ | $ | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |
||||||||
Depreciation and Amortization |
||||||||
Amortization of Debt Issuance Costs |
||||||||
Share-Based Compensation |
||||||||
Changes in Assets and Liabilities: |
||||||||
Accounts Receivable |
||||||||
Inventories |
( |
) | ||||||
Income Taxes |
( |
) | ||||||
Accounts Payable and Accrued Expenses |
( |
) | ( |
) | ||||
Other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net Cash Provided by Operating Activities |
||||||||
Cash Flows from Investing Activities: |
||||||||
Additions to Property, Plant and Equipment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net Cash Used for Investing Activities |
( |
) | ( |
) | ||||
Cash Flows from Financing Activities: |
||||||||
Net Cash Proceeds from Employee Stock Option Plans |
||||||||
Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan |
||||||||
Net Cash Used for Payment of Taxes Related to Vested Restricted Stock |
( |
) | ( |
) | ||||
Borrowings under Revolving Credit Facility |
||||||||
Repayment under Revolving Credit Facility |
( |
) | — | |||||
Payment of Minimum Guarantee Royalty Obligation |
( |
) | ( |
) | ||||
Proceeds from Long-Term Debt – PPP Loan |
— | |||||||
Proceeds from Long-Term Debt Borrowings |
— | |||||||
Payoff of Long-Term Debt |
( |
) | — | |||||
Principal Payments of Long-Term Debt |
( |
) | ( |
) | ||||
Payment of Debt Issuance Costs |
( |
) | — | |||||
Dividends Paid |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net Cash Used for Financing Activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net Increase (Decrease) in Cash and Cash Equivalents |
( |
) | ||||||
Cash and Cash Equivalents, Beginning of Period |
||||||||
|
|
|
|
|||||
Cash and Cash Equivalents, End of Period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental Disclosures of Cash Flow Information: |
||||||||
Cash Paid During the Period for Interest |
$ | $ | ||||||
Cash Paid During the Period for Income Taxes, Net of Refunds |
$ | $ | ||||||
Schedule of Non-Cash Financing Activities: |
||||||||
Value of Shares Received in Satisfaction of Option Exercise Price |
$ | — | $ |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
(In thousands) | October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||
United States |
$ | $ | $ | $ | ||||||||||||
Europe |
||||||||||||||||
Canada |
||||||||||||||||
Central and South America |
||||||||||||||||
Asia |
||||||||||||||||
Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Revenue |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
(In thousands) | October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||
Hardware |
$ | $ | $ | $ | ||||||||||||
Supplies |
||||||||||||||||
Service and Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Revenue |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
|||||||||||||
Weighted Average Common Shares Outstanding – Basic |
||||||||||||||||
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Common Shares Outstanding – Diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
October 31, 2020 |
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 |
$ | $ | ( |
) | $ | — | $ | $ | $ | ( |
) | $ | — | $ | ||||||||||||||||||
RITEC: |
||||||||||||||||||||||||||||||||
Customer Contract Relationships |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Non-Competition Agreement |
( |
) | — | — | ( |
) | — | |||||||||||||||||||||||||
TrojanLabel: |
||||||||||||||||||||||||||||||||
Existing Technology |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Distributor Relations |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Honeywell: |
||||||||||||||||||||||||||||||||
Customer Contract Relationships |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Intangible Assets, net |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Remaining 2021 |
2022 |
2023 |
2024 |
2025 |
|||||||||||||||
Estimated amortization expense |
$ | $ | $ | $ | $ |
(In thousands) |
October 31, 2020 |
January 31, 2020 |
||||||
Materials and Supplies |
$ | $ | ||||||
Work-In-Process |
||||||||
Finished Goods |
||||||||
|
|
|
|
|||||
Inventory Reserve |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
(In thousands) |
October 31, 2020 |
January 31, 2020 |
||||||
USD Term Loan ( |
$ | $ | — | |||||
USD Term Loan ( |
— | |||||||
USD Term Loan ( |
— | |||||||
$ | $ | |||||||
Debt Issuance Costs, net of accumulated amortization |
( |
) | ( |
) | ||||
Current Portion of Term Loans |
( |
) | ( |
) | ||||
Long-Term Debt |
$ | $ | ||||||
(In thousands) |
||||
Fiscal 2021, remainder |
$ | |||
Fiscal 2022 |
||||
Fiscal 2023 |
||||
$ | ||||
October 31, 2020 |
January 31, 2020 |
|||||||||||||||||||||||
Cash Flow Hedges (In thousands) |
Fair Value Derivatives |
Fair Value Derivatives |
||||||||||||||||||||||
Notional Amount |
Asset |
Liability |
Notional Amount |
Asset |
Liability |
|||||||||||||||||||
Cross-currency Interest Rate Swap |
$ | — | $ | — |
$ | — | $ | $ | — | $ | ||||||||||||||
Interest Rate Swap |
$ | — | $ | — | $ | — | $ | $ | — | $ |
Three Months Ended |
||||||||||||||||||||
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 |
||||||||||||||||||
Cash Flow Hedge (In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||||||
Swap contracts |
$ | $ | $ | — | $ | ( |
||||||||||||||
Nine Months Ended |
||||||||||||||||||||
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 |
||||||||||||||||||
Cash Flow Hedge (In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||||||
Swap contracts |
$ | ( |
$ | $ | ( |
$ | ||||||||||||||
Operating Leases (In thousands) |
Balance Sheet Classification |
October 31, 2020 |
January 31, 2020 |
|||||||||
Lease Assets |
Right of Use Assets |
$ | $ | |||||||||
Lease Liabilities – Current |
Other Liabilities and Accrued Expenses | |||||||||||
Lease Liabilities – Long Term |
Lease Liabilities |
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
Operating Leases (In thousands) |
Statement of Income Classification |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
|||||||||||||
Operating Lease Costs |
General and Administrative Expense | $ | $ | $ | $ |
(In thousands) |
October 31, 2020 |
|||
2021 , remaining |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
Total Lease Payments |
||||
Less: Imputed Interest |
( |
|||
Total Lease Liabilities |
$ | |||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
(In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||||||||||
Operating cash flows for operating leases |
$ | $ | $ | $ |
(In thousands) |
Foreign Currency Translation Adjustments |
Cash Flow Hedges |
Total |
|||||||||
Balance at January 31, 2020 |
$ | ( |
$ | ( |
$ | ( |
||||||
Other Comprehensive Loss before reclassification |
( |
( |
||||||||||
Amounts reclassified from AOCL to Earnings |
— | |||||||||||
Cross-Currency Interest Rate Swap Termination |
— | |||||||||||
Other Comprehensive Income (Loss) |
( |
|||||||||||
Balance at October 31, 2020 |
$ |
( |
$ |
( |
$ |
( |
||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
(In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||
Stock Options |
$ | $ | $ | $ | ||||||||||||
Restricted Stock Awards and Restricted Stock Units |
||||||||||||||||
Employee Stock Purchase Plan |
||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Number of Options |
Weighted Average Exercise Price |
|||||||
Outstanding at January 31, 2020 |
$ | |||||||
Granted |
— | — | ||||||
Exercised |
( |
|||||||
Forfeited |
( |
|||||||
Canceled |
( |
|||||||
Outstanding at October 31, 2020 |
$ | |||||||
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 |
||||||||||||||||||
$ |
$ | $ | ||||||||||||||||||||||
$ |
$ | $ | ||||||||||||||||||||||
$ |
$ | $ | ||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||
RSAs & RSUs |
Weighted Average Grant Date Fair Value |
|||||||
Outstanding at January 31, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
|||||||
Forfeited |
( |
|||||||
Outstanding at October 31, 2020 |
$ | |||||||
Three Months Ended |
Nine Months Ended |
|||||||
Fiscal 2021 |
% | % | ||||||
Fiscal 2020 |
( |
)% | % |
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
Revenue |
Segment Operating Profit (Loss) |
Revenue |
Segment Operating Profit (Loss) |
|||||||||||||||||||||||||||||
(In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||||||||||||||
Product Identification |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
T&M |
( |
( |
||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||||||||||||||||||
Corporate Expenses |
||||||||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||||||
Other Expense, Net |
( |
( |
( |
( |
||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes |
( |
|||||||||||||||||||||||||||||||
Income Tax (Benefit) Provision |
( |
( |
||||||||||||||||||||||||||||||
Net Income |
$ | $ | $ | $ | ||||||||||||||||||||||||||||
Liabilities measured at fair value: |
Fair value measurement at October 31, 2020 |
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) |
$ | $ | $ | $ | $ | — | $ | $ | — | $ | ||||||||||||||||||||||
Interest Rate Swap Contract (included in Other Long-Term Liabilities) |
— | — | ||||||||||||||||||||||||||||||
Earnout Liability (included in Other Long-Term Liabilities) |
— | — | ||||||||||||||||||||||||||||||
Total Liabilities |
$ | $ | $ | $ |
$ | — | $ | $ | $ | |||||||||||||||||||||||
October 31, 2020 |
||||||||||||||||||||
Fair Value Measurement |
||||||||||||||||||||
(In thousands) |
Level 1 |
Level 2 |
Level 3 |
Total |
Carrying Value |
|||||||||||||||
Long-Term debt and related current maturities |
$ | — | $ | — | $ | $ | $ |
January 31, 2019 |
||||||||||||||||||||
Fair Value Measurement |
||||||||||||||||||||
(In thousands) |
Level 1 |
Level 2 |
Level 3 |
Total |
Carrying Value |
|||||||||||||||
Long-Term debt and related current maturities |
$ | — | $ | — | $ | $ | $ |
Item 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Product Identification (“PI”) – offers color and monochromatic digital label printers, over-printers and custom OEM printers. PI also offers software to design, manage and print labeling and packaging images locally and across networked printing systems, as well as all related printing supplies such as pressure sensitive labels, tags, inks, toners and thermal transfer ribbons used by digital printers. PI also provides on-site and remote service, spare parts and various service contracts. |
• | Test and Measurement (“T&M”) – offers a suite of products and services that acquire data from local and networked data streams and sensors as well as wired and wireless networks. The T&M segment includes a line of aerospace printers that are used to print hard copies of data required for the safe and efficient operation of aircraft including navigation maps, clearances, arrival and departure procedures, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data. Aerospace products also include aircraft networking systems for high-speed onboard data transfer. T&M also provides repairs, service and spare parts. |
(Dollars in thousands) |
October 31, 2020 |
As a % of Revenue |
November 2, 2019 |
As a % of Revenue |
% Change Compared to Prior Year |
|||||||||||||||
Product Identification |
$ | 22,898 | 81.7 |
% |
$ | 21,749 | 65.3 |
% |
5.3 |
% | ||||||||||
T&M |
5,119 | 18.3 |
% |
11,569 | 34.7 |
% |
(55.8 |
)% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 28,017 | 100.0 |
% |
$ | 33,318 | 100.0 |
% |
(15.9 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
October 31, 2020 |
As a % of Revenue |
November 2, 2019 |
As a % of Revenue |
% Change Compared to Prior Year |
|||||||||||||||
Product Identification |
$ | 66,907 | 77.3 |
% |
$ | 67,484 | 65.5 |
% |
(0.9 |
)% | ||||||||||
T&M |
19,688 | 22.7 |
% |
35,483 | 34.5 |
% |
(44.5 |
)% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 86,595 | 100.0 |
% |
$ | 102,967 | 100.0 |
% |
(15.9 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
Revenue |
Segment Operating Profit (Loss) |
Revenue |
Segment Operating Profit (Loss) |
|||||||||||||||||||||||||||||
(In thousands) |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
October 31, 2020 |
November 2, 2019 |
||||||||||||||||||||||||
Product Identification |
$ | 22,898 | $ | 21,749 | $ | 3,521 | $ | 1,880 | $ | 66,907 | $ | 67,484 | $ | 9,813 | $ | 6,990 | ||||||||||||||||
T&M |
5,119 | 11,569 | (751 | ) | 1,397 | 19,688 | 35,483 | (1,314 | ) | 5,533 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | 28,017 | $ | 33,318 | 2,770 | 3,277 | $ | 86,595 | $ | 102,967 | 8,499 | 12,523 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Corporate Expenses |
2,353 | 2,830 | 7,214 | 8,445 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Operating Income |
417 | 447 | 1,285 | 4,078 | ||||||||||||||||||||||||||||
Other Expense, Net |
(437 | ) | (238 | ) | (459 | ) | (788 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Income Before Income Taxes |
(20 | ) | 209 | 826 | 3,290 | |||||||||||||||||||||||||||
Income Tax (Benefit) Provision |
(32 | ) | (247 | ) | 379 | 182 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net Income |
$ | 12 | $ | 456 | $ | 447 | $ | 3,108 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
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 |
|||||||||||||
August 1—August 31 |
— | $ | — | — | — | |||||||||||
September 1—September 30 |
— | $ | — | — | — | |||||||||||
October 1—October 31 |
— | $ | — | — | — |
Item 5. |
Other Information |
Item 6. |
Exhibits |
* | Management contract or compensatory plan or arrangement. |
ASTRONOVA, INC | ||||
(Registrant) | ||||
Date: December 9, 2020 | By | /s/ Gregory A. Woods | ||
Gregory A. Woods, | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) | ||||
By | /s/ David S. Smith | |||
David S. Smith, | ||||
Vice President, Chief Financial Officer and Treasurer (Principal Accounting Officer and Principal Financial Officer) |