AstroNova, Inc. (NASDAQ:ALOT), a Rhode Island-based manufacturer of computer peripheral equipment, announced the upcoming departure of David S. Smith, the company's Vice President, Chief Financial Officer, and Treasurer. Smith is set to retire on July 12, 2024, according to a recent SEC filing.
The company, formerly known as Astro Med Inc, disclosed the terms of Smith's separation agreement dated June 25, 2024. Under the agreement, Smith will receive a continuation of his base salary for one year, paid in weekly installments, and his housing allowance through July 2024. Additionally, if Smith terminates his housing lease by July 31, 2024, AstroNova will reimburse him for any early termination fees.
Smith's unvested time-based restricted stock units will continue to vest according to their original schedule, despite his departure. However, any options under the company’s 2018 Equity Incentive Plan will expire as per the plan's terms. Performance-based restricted stock units that have vested prior to his separation will be fully vested and settled on January 13, 2025.
Furthermore, AstroNova will cover 100% of the cost of Smith's COBRA healthcare continuation coverage for up to 18 months or until he secures alternate coverage. Smith is also entitled to payment for any accrued and unused paid time off following his separation.
The filing did not name a successor for Smith, who plans to pursue part-time corporate advisory and consulting opportunities post-retirement. The full details of the separation agreement are attached as an exhibit to the Form 8-K filed with the SEC.
This transition comes at a time when AstroNova, which trades on the NASDAQ Global Market, continues to navigate the competitive landscape of the computer peripheral equipment industry. The information for this article is based on a press release statement.
In other recent news, AstroNova reported a profitable Q1 for fiscal year 2025, despite facing operational challenges that resulted in a decline in revenue and adjusted EBITDA year-over-year. The company's acquisition of MTEX NS is projected to add $8-10 million in revenue, strengthening its standing in the digital label and packaging printing sectors. Despite component shortages affecting legacy printer shipments, AstroNova's transition to ToughWriter printers is anticipated to streamline the Aerospace segment's supply chain.
AstroNova has also established its Senior Executive Short-Term Incentive Plan (STIP) for fiscal year 2025, which is tied to the company's adjusted EBITDA performance. The STIP outlines performance criteria and goals for top executives, with specific targets set for each. At the recent annual shareholder meeting, shareholders elected five directors to the board, approved a non-binding advisory proposal on executive compensation, and ratified the appointment of Wolf & Company, P.C. as the company's independent registered public accounting firm.
InvestingPro Insights
As AstroNova, Inc. (NASDAQ:ALOT) prepares for the transition following David S. Smith's retirement, investors might consider the company's financial health and market position. According to InvestingPro, AstroNova boasts a strong shareholder yield and is trading at a low P/E ratio relative to near-term earnings growth, which might appeal to value investors. The company's valuation also implies a robust free cash flow yield, suggesting potential for reinvestment or debt reduction.
Despite recent underperformance in stock price, with a decline of 17.09% over the last month, AstroNova's fundamentals appear solid. The company has a market capitalization of $114.06M and maintains a healthy liquidity position, with liquid assets exceeding short-term obligations. Additionally, AstroNova has been profitable over the last twelve months, as evidenced by a gross profit of $53.27M and a gross profit margin of 36.58%.
For those interested in further analysis, InvestingPro offers additional insights and metrics, including a fair value estimate of $15.94 for AstroNova's stock. Readers looking to explore these InvestingPro Tips in more depth can find them at https://www.investing.com/pro/ALOT, and can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the promo code PRONEWS24. There are six additional InvestingPro Tips available that could provide valuable guidance for investors considering AstroNova's stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.