The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Sandra Koh Mei Lin - Data Analytics - Analyst
: Good morning, Greg. Good morning, guys. Congratulations on the --
Question: Sandra Koh Mei Lin - Data Analytics - Analyst
: Good morning. Congratulations on the wonderful earnings accomplishments this year. I think it's Magnolia some really impressive. I just wanted
to ask you one question regarding Boeing and Airbus. I understand that if I'm correct, during the past year, you also began to put in your printers
and Airbus, is that correct?
Question: Sandra Koh Mei Lin - Data Analytics - Analyst
: What, but I wanted to ask you also was with the with all the detrimental news on Bali and a lot of companies delaying are acquisitions of the different
planes from Boeing and [Bali] was saying they were strapped for cash and other related items to this [incidence] and how do you think that will
affect you will with or will that be taken up by the increase and the Airbus orders?
Question: Sandra Koh Mei Lin - Data Analytics - Analyst
: And are you -- about my final question, and I wish you all a great weekend and Happy Easter, is are there upgrades coming in these printers or UM
upgrades at all or are the same like newer products and upgrades in the printers?
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MARCH 22, 2024 / 1:00PM, ALOT.OQ - Q4 2024 AstroNova Inc Earnings Call
Question: Sandra Koh Mei Lin - Data Analytics - Analyst
: Thank you, guys, and keep up the good work.
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Hey, guys, congrats again on the great quarter and thanks for initiating guidance. I know we've been talking about that for a while. I'm on that
topic. I wanted to dive into that guidance. So it seems like there's some level of conservatism embedded in that, obviously year-on-year growth
seems more flattish the last couple of quarters of the year, is that attributable seasonality services of all the macro given like the previous caller
referenced some of the issues at Boeing and maybe you could just expound on that a little bit.
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Okay. So it's that's what you're starting with. And then it's more, I guess the bias would be more towards upward revisions if things go well, but
you're comfortable that in the face of whatever things you anticipate might happen that you're not going to come in below that [instead of]. Is
that fair way of interpreting it?
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Okay. The second question was I know we've had this ongoing conversation on Product ID margin, they were obviously quite strong in Q3 and Q4
gets back to that Q2 level, (inaudible) despite similar revenues? I know you mentioned in your script about the retrofit program. Can you explain
what was going on there and what we should think about for margins in that segment as we head into next year?
Question: George Melas-Kyriazi - MKH Management Company, LLC - Analyst
: Thank you, operator, and hi, Greg and David. A previous caller asked exactly my question. So I don't have any other I'm sorry, thank you.
Question: George Melas-Kyriazi - MKH Management Company, LLC - Analyst
: Okay.
Question: Dennis J. Scannell - Rutabaga Capital Management LLC - Analyst
: Yeah, good morning, Greg and David. And just [encouraging] what everybody else said, really nice quarter and nice end to the end of the year and
nice to see this rebound.
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MARCH 22, 2024 / 1:00PM, ALOT.OQ - Q4 2024 AstroNova Inc Earnings Call
So my question is also the similar to the previous two questioners. So but maybe to get a little granular or frame it a little differently. So QuickLabel
in the third quarter by my numbers did I'm sorry, -- Product Identification did 18.1% operating margins, I think the highest I've ever seen and then
were 12% in the fourth quarter.
And David, you said that maybe there were some inventory adjustments at Astro Machining, I know historically the group has been as high as I
think, 14%. So on a go forward basis, can we look more at the high [teens] for this business, like what we showed in the third quarter. Were there
some unusual things going on in the third quarter that make that an unrealistic expectation?
Question: Dennis J. Scannell - Rutabaga Capital Management LLC - Analyst
: Got it. (multiple speakers) Yes, go ahead, please David.
Question: Dennis J. Scannell - Rutabaga Capital Management LLC - Analyst
: Absolutely. No, that sounds great. Thank you for the further clarity. That's great. Thank you.
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Yeah. Hey, I think we got cut off or sorry about that. I just wanted to follow up if you have any comments on the M&A pipeline.
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Makes sense. And again, sorry, if you guys, I'm not sure if you've referenced this in the script, but David, we've talked about your inventory levels,
cash flow. [You] gave guidance on EBITDA. But maybe if we could talk a little bit about cash flow dynamics that you expect this year, if you expect
inventories stay flattish at these levels to continue coming down from any other working capital for you now other items we call out?
Question: Samir Patel - Askeladden Capital Management LLC - Analyst
: Makes sense. Thanks.
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