Askeladden Capital announces AstroNova ‘Town Hall’ forum

Askeladden Capital founder Samir Patel said, in part, “I write to you as the founder and portfolio manager of Askeladden Capital which is AstroNova’s (ALOT) largest shareholder, owning approximately 9.2% of the company on behalf of our clients. In an effort to improve AstroNova’s performance for the benefit of shareholders, employees, and all other stakeholders, we have nominated five highly qualified individuals for election to AstroNova’s Board of Directors at the company’s Annual Meeting, scheduled for July 9, 2025. We invite you to join an Investor Forum where shareholders, employees, and all other interested parties can interact directly with our nominees. After a brief introduction and panel discussion of approximately 20 minutes, we will open up the call for Q&A. We will conduct this “town hall” style meeting virtually via Zoom at 11:00 AM Eastern Time on Thursday, June 12, 2025…Askeladden has researched AstroNova since 2016 and been a 5% shareholder since 2020. Since March, we have spoken to over 15 individuals, ranging from former employees to suppliers and other industry veterans, to deepen our understanding of the company. In the near future, we will share selected research findings with AstroNova shareholders. We believe AstroNova has many strengths, such as a large installed base and many talented employees. Unfortunately, we believe that these attractive qualities have been overwhelmed by poor governance and management by the incumbent Board, and CEO Greg Woods, which has harmed shareholders and employees alike. In FY2025, the company reported Adjusted EBITDA of $12.3 million, substantially below FY2024’s $17.6 million and FY2025 original guidance of ~$21 million at the midpoint. The company’s May 2024 acquisition of MTEX should have further enhanced profitability – instead, the CEO and Board’s decision to spend $18.7 million in cash and assume additional debt to fund this acquisition harmed both shareholders and employees. The share price fell almost 50% over the ensuing year, while employees have faced layoffs. In FY2025, MTEX generated an operating loss of $16.9 million, including a goodwill impairment of $13.4 million, and the company subsequently discontinued 70% of MTEX’s product portfolio. As a result of the lower earnings and increased debt due to the MTEX acquisition, the company breached its debt covenants and suffered an event of default under its credit facility during the quarter ended January 31, 2025. While CEO Greg Woods retains his job despite this self-inflicted debacle, many AstroNova employees were not so lucky: on March 20, 2025, the company announced “the reduction of approximately 10% of the Company’s global workforce, primarily in the PI segment.” Through no fault of their own, rather than enjoying the profit-sharing and career growth opportunities that a well-managed company should provide, 10% of AstroNova employees lost their jobs. Despite these missteps, incumbents appear to be doubling down on this failed strategy, and have refused to engage with Askeladden’s efforts to improve the company’s performance. We recently published a 20-page document including our specific, research-based plan for improving AstroNova’s performance, as well as relevant background information on the company’s performance and governance. We believe that our nominees have specific and relevant qualifications to address the current challenges faced by AstroNova.”