ANNUAL 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.) | |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
Large accelerated filer ☐ | Non-accelerated filer |
Smaller reporting company | ||||
Emerging growth company |
Auditor Firm Id: |
PCAOB ID No. |
Auditor Name: |
Wolf & Company, P.C . |
Auditor Location: |
Boston, MA |
Page |
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PART I |
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Item 1. |
3-8 |
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Item 1A. |
8-20 |
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Item 1B. |
20 |
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Item 2. |
20 |
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Item 3. |
20 |
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Item 4. |
20 |
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PART II |
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Item 5. |
21 |
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Item 6. |
21 |
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Item 7. |
21-34 |
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Item 7A. |
34-35 |
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Item 8. |
35 |
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Item 9. |
35 |
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Item 9A. |
35-36 |
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Item 9B. |
36 |
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Item 9C. |
36 |
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PART III |
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Item 10. |
37 |
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Item 11. |
38 |
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Item 12. |
38 |
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Item 13. |
38 |
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Item 14. |
38 |
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PART IV |
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Item 15. |
39 |
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Item 16. |
39 |
• | A powerful set of core values: Customer First, One Global Team, Innovation, Continuous Improvement and Building Shareholder Value. |
• | The AstroNova Operating System (AOS), the comprehensive business management process which helps us manage the business to achieve continuous improvements in quality, delivery, cost, and growth. |
• | A commitment to operating with integrity and compliance to ensure our business is conducted in an honest, legal, and environmentally responsible manner. |
• | A passionate commitment to quality that drives our goal to achieve zero defects and understand our customers’ changing needs and expectations. |
• | Disruptions in the global supply chain; |
• | Limited control over the manufacturing process; |
• | Potential absence of adequate production capacity; |
• | Potential delays in production lead times; |
• | Unavailability of certain process technologies; and |
• | Reduced control over delivery schedules, manufacturing yields, quality and costs. |
• | 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; |
• | Failure to comply with complex and rapidly changing government economic sanctions measures against other countries, especially arising from responses to armed conflict; |
• | Unexpected changes in regulatory requirements; |
• | Uncertainty surrounding the implementation and effects of the United Kingdom’s withdrawal from the EU, commonly known as “Brexit”; and |
• | Geopolitical turmoil, including terrorism, war and public health disruptions, such as that caused by the current COVID-19 pandemic. |
• | 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. |
• | 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. |
• | 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. |
Location |
Approximate Square Footage |
Principal Use | ||||
West Warwick, Rhode Island, United States |
135,500 | Corporate headquarters, research and development, manufacturing, sales and service |
Location |
Approximate Square Footage |
Principal Use | ||||
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 | Sales | ||||
Irvine, California, United States |
3,100 | Sales | ||||
Shah Alam, Selangor, Malaysia |
2,067 | Sales | ||||
Guangzhou, China |
1,252 | Sales and service | ||||
Maidenhead, England |
1,021 | Sales and service | ||||
Shanghai, China |
425 | Sales | ||||
Mexico City, Mexico |
97 | Sales |
Item 5. |
Market for the Registrant ’ s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Total Number of Shares Repurchased |
Average Price paid Per Share ($) |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number of Shares That May Be Purchased Under the Plans or Programs |
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November 1 – November 30 |
— | — | — | — | ||||||||||||
December 1 – December 31 |
483 | (a) | 15.88 | (a) | — | — | ||||||||||
January 1 – January 31 |
1,682 | (b) | 13.10 | (b) | — | — |
• | Product Identification (“PI”) – offers color and monochromatic digital label printers, over-printers and custom OEM printers. PI also provides software to design, manage and print labeling and packaging |
images locally and across networked printing systems, as well as all related printing supplies such as pressure sensitive labels, tags, inks, toners and thermal transfer ribbons used by digital printers. PI also provides on-site and remote service, spare parts and various service contracts. |
• | Test and Measurement (“T&M”) – offers a suite of products and services that acquire data from local and networked data streams and sensors as well as wired and wireless networks. The T&M segment includes a line of aerospace printers used to print hard copies of data required for the safe and efficient operation of aircraft, including navigation maps, clearances, arrival and departure procedures, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data. Aerospace products also include aircraft networking systems for high-speed onboard data transfer. T&M also provides repairs, service and spare parts. |
($ in thousands) | 2022 |
2021 |
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Revenue |
As a % of Total Revenue |
% Change Over Prior Year |
Revenue |
As a % of Total Revenue |
||||||||||||||||
Product Identification |
$ | 90,915 | 77.4 | % | 0.7 | % | $ | 90,268 | 77.8 | % | ||||||||||
T&M |
26,565 | 22.6 | % | 3.1 | % | 25,765 | 22.2 | % | ||||||||||||
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Total |
$ | 117,480 | 100.0 | % | 1.2 | % | $ | 116,033 | 100.0 | % | ||||||||||
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($ in thousands) | Revenue |
Segment Operating Profit (Loss) |
Segment Operating Profit (Loss) as a % of Revenue |
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2022 |
2021 |
2020 |
2022 |
2021 |
2020 |
2022 |
2021 |
2020 |
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PI |
$ | 90,915 | $ | 90,268 | $ | 88,116 | $ | 10,411 | $ | 12,885 | $ | 7,509 | 11.5 | % | 14.3 | % | 8.5 | % | ||||||||||||||||||
T&M |
26,565 | 25,765 | 45,330 | 3,398 | (1,032 | ) | 6,281 | 12.8 | % | (4.0 | )% | 13.9 | % | |||||||||||||||||||||||
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Total |
$ | 117,480 | $ | 116,033 | $ | 133,446 | 13,809 | 11,853 | 13,790 | 11.8 | % | 10.2 | % | 10.3 | % | |||||||||||||||||||||
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Corporate Expenses |
9,553 | 9,420 | 11,357 | |||||||||||||||||||||||||||||||||
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Operating Income |
4,256 | 2,433 | 2,433 | |||||||||||||||||||||||||||||||||
Other Expense, Net |
2,778 | (254 | ) | (1,063 | ) | |||||||||||||||||||||||||||||||
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Income Before Income Taxes |
7,034 | 2,179 | 1,370 | |||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) |
605 | 895 | (389 | ) | ||||||||||||||||||||||||||||||||
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Net Income |
$ | 6,429 | $ | 1,284 | $ | 1,759 | ||||||||||||||||||||||||||||||
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Name |
Age |
Position | ||||
Gregory A. Woods |
63 | President, Chief Executive Officer and Director | ||||
David S. Smith |
65 | Vice President, Chief Financial Officer and Treasurer | ||||
Stephen M. Petrarca |
59 | Vice President—Operations | ||||
Michael J. Natalizia |
58 | Chief Technology Officer and Vice President of Strategic Technical Alliances | ||||
Tom Carll |
55 | Vice President and General Manager—Aerospace |
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 |
776,975 | (1) | $ | 14.67 | (2) | 401,893 | (3) | |||||
Equity Compensation Plans Not Approved by Shareholders |
— | — | — | |||||||||
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Total |
776,975 | (1) | $ | 14.67 | (2) | 401,893 | (3) | |||||
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(1) | Includes 323,468 shares issuable upon exercise of outstanding options granted under our 2007 Equity Incentive Plan; 139,075 shares issuable upon exercise of outstanding options granted under our 2015 Equity Incentive Plan; and 135,500 shares issuable upon exercise of outstanding options granted, 135,403 restricted stock units and 43,529 unvested performance stock units outstanding under our 2018 Equity Incentive Plan. This balance does not include 20,410 of unvested restricted stock which are subject to forfeiture. |
(2) | Does not include restricted stock units. |
(3) | Represents 399,611 shares available for grant under the AstroNova, Inc. 2018 Equity Incentive Plan and 2,282 shares available for purchase under the Employee Stock Purchase Plan. |
Page | ||
44-45 | ||
46 | ||
47 | ||
48 | ||
49 | ||
50 | ||
51-75 | ||
(a)(2) Financial Statement Schedule: |
||
76 |
* | Schedules to this Exhibit have been omitted in reliance on Item 601(b)(2) of Regulation S-K. The Company will furnish copies of any such schedules to the SEC upon request. |
** | Management contract or compensatory plan or arrangement. |
† | Filed herewith. |
ASTRONOVA, INC. (Registrant) | ||||||
Date: April 18, 2022 | By: | /S/ G REGORY A. WOODS | ||||
(Gregory A. Woods, Chief Executive Officer) |
Name |
Title |
Date | ||
/s/ G REGORY A. WOODS Gregory A. Woods |
President, Chief Executive Officer and Director (Principal Executive Officer) |
April 18, 2022 | ||
/s/ D AVID S. SMITH David S. Smith |
Vice President, Chief Financial Officer and Treasurer (Principal Accounting and Financial Officer) |
April 18, 2022 | ||
/s/ J EAN A. BUA Jean A. Bua |
Director |
April 18, 2022 | ||
/s/ M ITCHELL I. QUAIN Mitchell I. Quain |
Director |
April 18, 2022 | ||
/s/ Y VONNE E. SCHLAEPPI Yvonne E. Schlaeppi |
Director |
April 18, 2022 | ||
/s/ H AROLD SCHOFIELD Harold Schofield |
Director |
April 18, 2022 | ||
/s/ R ICHARD S. WARZALA Richard S. Warzala |
Director |
April 18, 2022 |
2022 |
2021 |
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ASSETS |
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CURRENT ASSETS |
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Cash and Cash Equivalents |
$ | $ | ||||||
Accounts Receivable, net of reserves of $ |
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Inventories |
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Employee Retention Credit Receivable |
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— |
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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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Identifiable Intangibles, net |
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Goodwill |
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Deferred Tax Assets, net |
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Right of Use Asset |
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Other |
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TOTAL ASSETS |
$ | $ | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts Payable |
$ | $ | ||||||
Accrued Compensation |
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Other Accrued Expenses |
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Current Portion of Long-Term Debt |
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Current Liability—Royalty Obligation |
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Current Liability—Excess Royalty Payment Due |
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Income Taxes Payable |
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Deferred Revenue |
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Total Current Liabilities |
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NON - CURRENT LIABILITIES |
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Long-Term Debt, net of current portion |
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Royalty Obligation, net of current portion |
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Long-Term Debt—PPP Loan |
— | |||||||
Lease Liabilities, net of current portion |
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Income Taxes Payable |
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Deferred Tax Liabilities |
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TOTAL LIABILITIES |
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Commitments and Contingencies (See Note 22) |
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SHAREHOLDERS’ EQUITY |
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Preferred Stock, $ |
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Common Stock, $ |
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Additional Paid-in Capital |
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Retained Earnings |
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Treasury Stock, at Cost, |
( |
) | ( |
) | ||||
Accumulated Other Comprehensive Loss, net of tax |
( |
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) | ||||
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TOTAL SHAREHOLDERS’ EQUITY |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | $ | ||||||
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2022 |
2021 |
2020 |
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Revenue |
$ | $ | $ | |||||||||
Cost of Revenue |
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Gross Profit |
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Costs and Expenses: |
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Selling and Marketing |
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Research and Development |
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General and Administrative |
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Operating Expenses |
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Operating Income |
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Other Income (Expense): |
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Gain on Extinguishment of Debt – PPP Loan |
— | — | ||||||||||
Loss on Disposal of Assets |
( |
) | — | — | ||||||||
Interest Expense |
( |
) | ( |
) | ( |
) | ||||||
Gain (Loss) on Foreign Currency Transactions |
( |
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) | ||||||||
Other, net |
( |
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( |
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Income before Income Taxes |
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Income Tax Provision (Benefit) |
( |
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Net Income |
$ | $ | $ | |||||||||
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Net Income Per Common Share—Basic |
$ | $ | $ | |||||||||
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Net Income Per Common Share—Diluted |
$ | $ | $ | |||||||||
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Weighted Average Number of Common Shares Outstanding—Basic |
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Dilutive Effect of Common Stock Equivalents |
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Weighted Average Number of Common Shares Outstanding—Diluted |
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2022 |
2021 |
2020 |
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Net Income |
$ | $ | $ | |||||||||
Other Comprehensive Income (Loss), net of taxes and reclassification adjustments: |
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Foreign Currency Translation Adjustments |
( |
) | ( |
) | ||||||||
Change in Value of Derivatives Designated as Cash Flow Hedge |
( |
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(Gains) Losses from Cash Flow Hedges Reclassified to Income Statement |
( |
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Cross-Currency Interest Rate Swap Terminations |
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Other Comprehensive Income (Loss) |
( |
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Comprehensive Income |
$ | $ | $ | |||||||||
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Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders’ Equity |
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Shares |
Amount |
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Balance January 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee O ption E xercises |
— | ( |
) | — | ||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Common Stock— C ividend—$ash D |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net I ncome |
— | — | — | — | — | |||||||||||||||||||||||
Other C omprehensive L oss |
— | — | — | — | — | ( |
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Balance January 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share- B ased C ompensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee O ption E xercises |
— | — | — | |||||||||||||||||||||||||
Restricted S tock A wards V ested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Common Stock— C ash D ividend—$ |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Net I ncome |
— | — | — | — | — | |||||||||||||||||||||||
Other C omprehensive I ncome |
— | — | — | — | — | |||||||||||||||||||||||
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Balance January 31, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-Based Compensation |
— | — | — | — | — | |||||||||||||||||||||||
Employee Option Exercises |
— | — | — | |||||||||||||||||||||||||
Restricted Stock Awards Vested, net |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Other Comprehensive Loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance January 31, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
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2022 |
2021 |
2020 |
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Cash Flows from Operating Activities: |
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Net Income |
$ | $ | $ | |||||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: |
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Depreciation and Amortization |
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Amortization of Debt Issuance Costs |
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Share-Based Compensation |
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Loss on Disposal of Assets |
— | — | ||||||||||
Gain on Extinguishment of Debt |
( |
) | — | — | ||||||||
Deferred Income Tax Provision (Benefit) |
( |
) | ( |
) | ||||||||
Changes in Assets and Liabilities: |
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Accounts Receivable |
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Other Receivable – Employee Retention Credit Receivable |
( |
) | — | — | ||||||||
Inventories |
( |
) | ( |
) | ||||||||
Accounts Payable and Accrued Expenses |
( |
) | ( |
) | ||||||||
Income Taxes Payable |
( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
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Net Cash Provided by Operating Activities |
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Cash Flows from Investing Activities: |
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Additions to Property, Plant and Equipment |
( |
) | ( |
) | ( |
) | ||||||
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Net Cash Used by Investing Activities |
( |
) | ( |
) | ( |
) | ||||||
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Cash Flows from Financing Activities: |
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Net Cash Proceeds from Employee Stock Option Plans |
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Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan |
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Net Cash Used for Payment of Taxes Related to Vested Restricted Stock |
( |
) | ( |
) | ( |
) | ||||||
Net (Repayments)/Borrowings 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 on Long-Term Debt |
( |
) | ( |
) | ( |
) | ||||||
Payments of Debt Issuance Costs |
— | ( |
) | — | ||||||||
Dividends Paid |
— | ( |
) | ( |
) | |||||||
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|
|
|
|
|||||||
Net Cash Used by Financing Activities |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net Increase (Decrease) in Cash and Cash Equivalents |
( |
) | ( |
) | ||||||||
Cash and Cash Equivalents, Beginning of Year |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and Cash Equivalents, End of Year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Supplemental Information: |
||||||||||||
Cash Paid During the Period for: |
||||||||||||
Interest |
$ | $ | $ | |||||||||
Income Taxes, Net of Refunds |
$ | $ | $ |
• | Level 1—Quoted prices in active markets for identical assets or liabilities; |
• | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and |
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
(In thousands) |
2022 |
2021 |
2020 |
|||||||||
United States |
$ | $ | $ | |||||||||
Europe |
||||||||||||
Canada |
||||||||||||
Asia |
||||||||||||
Central and South America |
||||||||||||
Other |
||||||||||||
Total Revenue |
$ | $ | $ | |||||||||
(In thousands) |
2022 |
2021 |
2020 |
|||||||||
Hardware |
$ | $ | $ | |||||||||
Supplies |
||||||||||||
Service and Other |
||||||||||||
Total Revenue |
$ | $ | $ | |||||||||
January 31, 2022 |
January 31, 2021 |
|||||||||||||||||||||||||||||||
(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 |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
TrojanLabel: |
||||||||||||||||||||||||||||||||
Existing Technology |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Distributor Relations |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Honeywell: |
||||||||||||||||||||||||||||||||
Customer Contract Relationships |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Intangible Assets, net |
$ | $ | ( |
) | $ | |
$ | $ | $ | ( |
) | $ | |
$ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) | 2023 |
2024 |
2025 |
2026 |
2027 |
|||||||||||||||
Estimated amortization expense |
$ | $ | $ | $ | $ |
January 31, |
||||||||
2022 |
2021 |
|||||||
(In thousands) | ||||||||
Materials and Supplies |
$ | $ | ||||||
Work-in-Progress |
||||||||
Finished Goods |
||||||||
|
|
|
|
|||||
Inventory Reserve |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
January 31, |
||||||||
2022 |
2021 |
|||||||
(In thousands) | ||||||||
Land and Land Improvements |
$ | $ | ||||||
Buildings and Leasehold Improvements |
||||||||
Machinery and Equipment |
||||||||
Computer Equipment and Software |
||||||||
|
|
|
|
|||||
Gross Property, Plant and Equipment |
||||||||
Accumulated Depreciation |
( |
( |
||||||
|
|
|
|
|||||
Net Property Plant and Equipment |
$ | $ | ||||||
|
|
|
|
January 31, |
||||||||
2022 |
2021 |
|||||||
(In thousands) | ||||||||
Warranty |
$ | $ | ||||||
Professional Fees |
||||||||
Freight |
||||||||
|
||||||||
Accrued Property & Sales Tax |
||||||||
Stockholder Relation Fees |
||||||||
Dealer Commissions |
||||||||
Other Accrued Expenses |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
January 31, |
||||||||
(In thousands) | 2022 |
2021 |
||||||
USD Term Loan ( |
$ | $ | — | |||||
USD Term Loan ( |
— | |||||||
Debt Issuance Costs, net of accumulated amortization |
( |
) | ( |
) | ||||
Current Portion of Term Loan |
( |
) | ( |
) | ||||
Long-Term Debt |
$ | $ | ||||||
(In thousands) |
||||
Fiscal 2023 |
$ | |||
Fiscal 2024 |
||||
Fiscal 2025 |
||||
Fiscal 2026 |
||||
$ |
||||
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, 2022 |
January 31, 2021 |
January 31, 2022 |
January 31, 2021 |
|||||||||||||||||
Swap contracts |
$ | — | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||
Operating Leases (In thousands) |
Balance Sheet Classification |
January 31, 2022 |
January 31, 2021 |
|||||||
Lease Assets |
Right of Use Assets | $ | $ | |||||||
Lease Liabilities—Current |
Other Accrued Expenses | |||||||||
Lease Liabilities—Long Term |
Lease Liabilities | $ | $ |
Operating Leases (In thousands) |
Statement of Income Classification |
2022 |
2021 |
|||||||||
Operating Lease Costs |
General and Administrative Expense | $ | $ |
(In thousands) |
||||
2023 |
$ | |||
2024 |
||||
2025 |
||||
2026 |
||||
2027 |
||||
Thereafter |
||||
|
|
|||
Total Lease Payments |
||||
Less: Imputed Interest |
( |
) | ||
|
|
|||
Total Lease Liabilities |
$ | |||
|
|
(In thousands) |
2022 |
2021 |
||||||
Cash paid for operating lease liabilities |
$ | $ |
(In thousands) |
Foreign Currency Translation Adjustments |
Net Unrealized Gain (Losses) on Cash Flow Hedges |
Total |
|||||||||
Balance at January 31, 2019 |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Other Comprehensive Income (Loss) before reclassification |
( |
) |
( |
) | ||||||||
Amounts reclassified from AOCI to Earnings |
— |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
|||||||
Other Comprehensive Loss |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at January 31, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Other Comprehensive Income (Loss) before reclassification |
( |
) |
||||||||||
Amounts Reclassified from AOCI to Earnings |
— |
|||||||||||
Cross-Currency Interest Rate Swap Termination |
— |
|||||||||||
|
|
|
|
|
|
|||||||
Other Comprehensive Income (Loss) |
( |
) |
||||||||||
Balance at January 31, 202 1 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Other Comprehensive Loss before reclassificatio n |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Amounts Reclassified from AOCI to Earning s |
|
|
— |
|
|
|
|
|
|
|
|
|
Other Comprehensive Income (Loss ) |
|
|
( |
) |
|
|
|
|
|
|
( |
) |
Balance at January 31, 202 2 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
(In thousands) | ||||||||||||
Stock Options |
$ | $ | $ | |||||||||
Restricted Stock Awards and Restricted Stock Units |
||||||||||||
Employee Stock Purchase Plan |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Number of Shares |
Weighted- Average Exercise Price Per Share |
|||||||
Options Outstanding, January 31, 2019 |
$ | |||||||
Options Granted |
||||||||
Options Exercised |
( |
) | ||||||
Options Forfeited |
( |
) | ||||||
Options Cancelled |
( |
) | ||||||
|
|
|
|
|||||
Options Outstanding, January 31, 2020 |
$ | |||||||
Options Granted |
||||||||
Options Exercised |
( |
) | ||||||
Options Forfeited |
( |
) | ||||||
Options Cancelled |
( |
) | ||||||
|
|
|
|
|||||
Options Outstanding, January 31, 2021 |
$ | |||||||
Options Granted |
||||||||
Options Exercised |
( |
) | ||||||
Options Forfeited |
( |
) | ||||||
Options Cancelled |
||||||||
|
|
|
|
|||||
Options Outstanding, January 31, 2022 |
$ | |||||||
|
|
|
|
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, 2019 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at January 31, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at January 31, 2021 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at January 31, 2022 |
$ | |||||||
|
|
|
|
2022 |
2021 |
2020 |
||||||||||
Shares Reserved, Beginning |
||||||||||||
Shares Purchased |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Shares Reserved, Ending |
||||||||||||
|
|
|
|
|
|
2022 |
2021 |
2020 |
||||||||||
(In thousands) | ||||||||||||
Domestic |
$ | $ | ( |
) | $ | |||||||
Foreign |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
2022 |
2021 |
2020 |
||||||||||
(In thousands) | ||||||||||||
Current: |
||||||||||||
Federal |
$ | ( |
) | $ | $ | |||||||
State |
||||||||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Deferred: |
||||||||||||
Federal |
$ | $ | ( |
) | $ | ( |
) | |||||
State |
( |
) | ( |
) | ||||||||
Foreign |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ( |
) | ||||||||
|
|
|
|
|
|
2022 |
2021 |
2020 |
||||||||||
(In thousands) |
||||||||||||
Income Tax Provision at Statutory Rate |
$ | $ | $ | |||||||||
Return to Provision Adjustment |
( |
) | ( |
) | ||||||||
State Taxes, Net of Federal Tax Effect |
( |
) | ||||||||||
Denmark Statutory Audit |
||||||||||||
Foreign Rate Differential |
||||||||||||
Change in Valuation Allowance |
( |
) | ||||||||||
Meals and Entertainment |
||||||||||||
Canada Withholding Taxes |
||||||||||||
Global Intangible Low Taxed Income |
||||||||||||
Foreign Tax Credits |
( |
) | ||||||||||
Foreign Derived Intangible Income |
( |
) | ( |
) | ( |
) | ||||||
Share Based Compensation |
( |
) | ( |
) | ||||||||
R&D Credits |
( |
) | ( |
) | ( |
) | ||||||
Change in Reserves Related to ASC 740 Liability |
( |
) | ( |
) | ( |
) | ||||||
PPP Loan Forgiveness |
( |
) | ||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ( |
) | ||||||||
|
|
|
|
|
|
January 31, |
||||||||
2022 |
2021 |
|||||||
(In thousands) | ||||||||
Deferred Tax Assets: |
||||||||
Inventory |
$ | $ | ||||||
Honeywell Royalty Liability |
||||||||
State R&D Credits |
||||||||
Share-Based Compensation |
||||||||
Bad Debt |
||||||||
Warranty Reserve |
||||||||
Compensation Accrual |
||||||||
Net Operating Loss |
||||||||
ASU 842 Adjustment – Lease Liability |
||||||||
Unrecognized State Tax Benefits |
||||||||
Foreign Tax Credit |
||||||||
Deferred Service Contract Revenue |
||||||||
Other |
||||||||
|
|
|
|
|||||
Deferred Tax Liabilities: |
||||||||
Accumulated Tax Depreciation in Excess of Book Depreciation |
||||||||
Intangibles |
||||||||
ASU 842 Adjustment – Lease Liability |
||||||||
Other |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Subtotal |
||||||||
Valuation Allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net Deferred Tax Assets |
$ | $ | ||||||
|
|
|
|
|||||
|
|
|
| |||||
Deferred taxes are reflected in the consolidated balance sheet as follows: |
|
|
| |||||
January 31, |
||||||||
2022 |
2021 |
|||||||
Deferred Tax Assets |
||||||||
Deferred Tax Liabilities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Total Net Deferred Tax Assets |
$ |
$ |
||||||
|
|
|
|
2022 |
2021 |
2020 |
||||||||||
(In thousands) | ||||||||||||
Balance , beginning of the year |
$ | $ | $ | |||||||||
Increases in prior period tax positions |
||||||||||||
Increases in current period tax positions |
||||||||||||
Reductions related to lapse of statutes of limitations |
( |
) | ( |
) | ( |
) | ||||||
Reductions related to settlement with tax authorities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Balance, end of the year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
($ in thousands) |
Revenue |
Segment Operating Profit (Loss) |
Segment Operating Profit (Loss) as a % of Revenue |
|||||||||||||||||||||||||||||||||
2022 |
2021 |
2020 |
2022 |
2021 |
2020 |
2022 |
2021 |
2019 |
||||||||||||||||||||||||||||
Product Identification |
$ | $ | $ | $ | $ | $ | % | % | % | |||||||||||||||||||||||||||
T&M |
( |
) | % | ( |
)% | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | $ | $ | % | % | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Corporate Expenses |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net |
( |
( |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Income Before Income Taxes |
||||||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) |
( |
) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net Income |
$ | $ | $ | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
(In thousands) | Assets |
|||||||
|
|
January 31, |
| |||||
2022 |
2021 |
|||||||
Product Identification |
$ | $ | ||||||
T&M |
||||||||
Corporate* |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
* | Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets. |
(In thousands) | Depreciation and Amortization |
Capital Expenditures |
||||||||||||||||||||||
2022 |
2021 |
2020 |
2022 |
2021 |
2020 |
|||||||||||||||||||
Product Identification |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
T&M |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Lived Assets* |
| ||||||||||||||
(In thousands) |
Revenue |
January 31, |
||||||||||||||||||
2022 |
2021 |
2020 |
2022 |
2021 |
||||||||||||||||
United States |
$ | $ | $ | $ | $ | |||||||||||||||
Europe |
||||||||||||||||||||
Canada |
||||||||||||||||||||
Asia |
— | |||||||||||||||||||
Central and South America |
— | — | ||||||||||||||||||
Other |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
* | Long-lived assets exclude goodwill assigned to the T&M segment of $ |
2022 |
2021 |
2020 |
||||||||||
(In thousands) | ||||||||||||
Balance, beginning of the year |
$ | $ | $ | |||||||||
Provision for Warranty Expense |
||||||||||||
Cost of Warranty Repairs |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of the year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Fair Value Measurement at January 31, 2022 |
||||||||||||||||||||
(In thousands) |
Level 1 |
Level 2 |
Level 3 |
Total |
Carrying Value |
|||||||||||||||
Long-Term Debt and Related Current Maturities |
$ | — | $ | — | $ | $ | $ | |||||||||||||
Fair Value Measurement at January 31, 2021 |
||||||||||||||||||||
(In thousands) | Level 1 |
Level 2 |
Level 3 |
Total |
Carrying Value |
|||||||||||||||
Long-Term Debt and Related Current Maturities |
$ | — | $ | — | $ | $ | $ |
Description |
Balance at Beginning of Year |
Provision/ (Benefit) Charged to Operations |
Deductions(2) |
Balance at End of Year |
||||||||||||
Allowance for Doubtful Accounts |
||||||||||||||||
(In thousands) | ||||||||||||||||
Year Ended January 31, |
||||||||||||||||
2022 |
$ | $ | $ | ( |
) | $ | ||||||||||
2021 |
$ | $ | $ | $ | ||||||||||||
2020 |
$ | $ | $ | ( |
) | $ |
(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. |