Orders up 39.8% Year-over-year for Fourth Quarter 2014 and 19.1% for
Fiscal 2014
WEST WARWICK, R.I.--(BUSINESS WIRE)--Mar. 18, 2014--
Astro-Med, Inc. (NASDAQ: ALOT), a leading manufacturer of specialty
high-tech printing systems and data acquisition products, today reported
financial results for the fiscal 2014 fourth quarter and full year ended
January 31, 2014.
“Astro-Med delivered strong results in fiscal 2014, increasing revenues
by 12% and generating solid earnings while continuing to strategically
invest in operational excellence and our other long-term growth
objectives,” said President and Chief Executive Officer Gregory A.
Woods. “For the quarter, we grew revenues 9.6% on the strength of our
color label printers and ruggedized products. Coming off of our busiest
tradeshow period of the year in Q3, we saw good demand in the fourth
quarter for newly unveiled QLS products, particularly the Kiaro! series
of inkjet color label printers. Orders for the quarter were up 39.8%
from the fourth quarter last year, reflecting strong demand across most
of the business.
“One of the key strategic themes for Astro-Med in fiscal 2015 is to
continue to drive efficiencies through our business as we grow the top
line,” added Woods. “Squarely at the center of this effort is our focus
on continuous improvement and Lean manufacturing. Through the success of
this initiative thus far, we have the capacity to integrate future
acquisitions into our existing production facility without the need to
significantly add to fixed costs. Our recent acquisition of the VT
Miltope’s aerospace printer business and the planned integration of its
production into our West Warwick facility is a perfect example of how we
are able to leverage the additional capacity we have created. We expect
to complete the integration of Miltope’s production in the third quarter
of fiscal 2015.
“Another important building block as we strive for improved efficiency
is the planned completion this fiscal year of our new information
technology system. Investing in a new IT system is a key step toward
several broader strategic objectives, including ensuring outstanding
customer service; enhancing operational efficiencies by connecting our
product development, engineering, manufacturing and sales teams with
real-time information; and supporting our growth initiatives through a
worldwide infrastructure support system.
“As we begin fiscal 2015, we look forward to another year of top- and
bottom-line improvement. The Test & Measurement group opens fiscal 2015
with a healthy backlog, thanks in part to our VT Miltope acquisition. We
also continue to see robust demand for our QLS products. Our capital
structure is anchored by a strong balance sheet with cash and marketable
securities of $27.1 million as of January 31, 2014,” Woods concluded.
GAAP net income was $1.9 million, or $0.24 per diluted share, on net
sales of $17.7 million for the fourth quarter of fiscal 2014. For the
corresponding period of the prior fiscal year, the Company reported GAAP
net income of $7.6 million, or $1.02 per diluted share, on net sales of
$16.2 million. Fourth quarter net income for fiscal 2014 includes a tax
benefit of $0.4 million, or $0.05 per diluted share, related to a FIN 48
adjustment as well as a year-end true up of the tax provision. Net
income for fiscal 2013 included a gain of $6.6 million, or $0.85 per
diluted share, related to the sale of the Company’s Grass Technologies
business segment.
On a non-GAAP basis, net income from continuing operations was $0.6
million, or $0.08 per diluted share, for the fourth quarter of fiscal
2014 compared with $0.4 million, or $0.06 per diluted share, for the
comparable quarter of fiscal 2013. For the fourth quarter fiscal 2014
period, non-GAAP net income from continuing operations excludes a $0.3
million charge related to the retirement of the Company’s former CEO, a
$0.2 million legal settlement related to a product recall and $0.1
million for Miltope acquisition professional fees.
For fiscal 2014, GAAP net income was $3.2 million, or $0.42 per diluted
share, on net sales of $68.6 million. This compares with net income of
$10.8 million, or $1.44 per diluted share, on net sales of $61.2 million
for the comparable period of fiscal 2013. For fiscal 2014, non-GAAP net
income from continuing operations was $1.9 million, or $0.25 per diluted
share, compared with $2.0 million, or $0.27 per diluted share, for the
same period of fiscal 2013.
Q4 and FY 2014 Financial Results Conference Call
The fourth quarter and fiscal year 2014 financial results conference
call will be held on Wednesday, March 19, 2014 at 11:00 a.m. ET. It will
be broadcast in real time on the Internet through the “Investors”
section of the Company’s website at www.Astro-MedInc.com.
You also may participate in the conference call by dialing 877-941-0844
with passcode 4670772. Following the live broadcast, an audio webcast of
the call will be available on the Company’s website. A conference call
replay also will be available for seven days by dialing 800-406-7325
with passcode 4670772.
About Astro-Med, Inc.
Astro-Med, Inc. is a leading manufacturer of specialty high tech
printing systems and data acquisition systems. Products include color
label printers and consumables sold under the QuickLabel Systems brand
as well as rugged printers for aerospace and defense applications and
data acquisition products sold under the Astro-Med brand. Astro-Med,
Inc. is a member of the Russell Microcap® Index. Additional information
is available by visiting www.Astro-MedInc.com.
Forward-Looking Statements
Information included in this news release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not statements of
historical fact, but rather reflect our current expectations concerning
future events and results. These statements may include the use the
words “believes,” “expects,” “intends,” “plans,” “anticipates,”
“likely,” “continues,” “may,” “will,” and similar expressions to
identify forward-looking statements. Such forward-looking statements,
including those concerning the anticipated completion in the third
quarter of fiscal 2015 of the integration of Miltope’s production; and
the anticipated completion this fiscal year of the Company’s new
information technology system involve risks, uncertainties and other
factors, some of which are beyond our control, which may cause our
actual results, performance or achievements to be materially different
from those expressed or implied by such forward-looking statements.
These risks, uncertainties and factors include, but are not limited to,
those factors set forth in the Company’s Annual Report on Form 10-K for
the fiscal year ended January 31, 2013 and subsequent filings Astro-Med
makes with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The reader is cautioned not to unduly rely
on such forward-looking statements when evaluating the information
presented in this news release.
Use of Non-GAAP Financial Measure
In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), this press release also contains
the Non-GAAP financial measure, Non-GAAP net income from continuing
operations. The Company believes that the inclusion of this non-GAAP
financial measure in this press release helps investors to gain a
meaningful understanding of changes in the Company's core operating
results, and also can help investors who wish to make comparisons
between Astro-Med and other companies on both a GAAP and a non-GAAP
basis. Astro-Med’s management uses this non-GAAP measure, in addition to
GAAP financial measures, as the basis for measuring its core operating
performance and comparing such performance to that of prior periods and
to the performance of its competitors. This measure also is used by the
Company’s management to assist with their financial and operating
decision making.
The non-GAAP financial measures included in this press release are not
meant to be considered superior to or a substitute for results of
operations prepared in accordance with GAAP. In addition, the non-GAAP
financial measures included in this press release may be different from,
and therefore may not be comparable to, similar measures used by other
companies. Reconciliations of the non-GAAP financial measures used in
this press release to the most directly comparable GAAP financial
measures are set forth in the text of, and the accompanying tables to,
this press release.
|
ASTRO-MED, INC.
|
Consolidated Statements of Operations
|
In Thousands Except for Per Share Data
|
(Unaudited)
|
|
|
|
Three-Months Ended
|
|
Twelve-Months Ended
|
|
|
January 31, 2014
|
|
January 31, 2013
|
|
January 31, 2014
|
|
January 31, 2013
|
Net Sales
|
|
$17,734
|
|
$16,186
|
|
$68,592
|
|
$61,224
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
7,593
|
|
6,187
|
|
$26,983
|
|
$23,728
|
|
|
42.8%
|
|
38.2%
|
|
39.3%
|
|
38.8%
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
Selling
|
|
4,094
|
|
3,170
|
|
14,774
|
|
12,412
|
Research & Development
|
|
1,455
|
|
1,050
|
|
5,072
|
|
3,816
|
General & Administration
|
|
1,859
|
|
1,235
|
|
5,604
|
|
4,574
|
|
|
7,408
|
|
5,455
|
|
25,450
|
|
20,802
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
185
|
|
732
|
|
1,533
|
|
2,926
|
|
|
1.0%
|
|
4.5%
|
|
2.2%
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net
|
|
(58)
|
|
15
|
|
(121)
|
|
(41)
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations Before Taxes
|
|
127
|
|
747
|
|
1,412
|
|
2,885
|
|
|
|
|
|
|
|
|
|
Income Tax Provision (Benefit) for Continuing Operations
|
|
(272)
|
|
305
|
|
175
|
|
847
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
399
|
|
442
|
|
1,237
|
|
2,038
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations, net of taxes
|
|
1,458
|
|
7,194
|
|
1,975
|
|
8,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$1,857
|
|
$7,636
|
|
$3,212
|
|
$10,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share – Basic:
|
|
|
|
|
|
|
|
|
Net Income per share from Continuing Operations
|
|
$0.05
|
|
$0.06
|
|
$0.17
|
|
$0.28
|
Net Income per share from Discontinued Operations
|
|
$0.20
|
|
$0.98
|
|
$0.26
|
|
$1.18
|
Net Income per share - Basic
|
|
$0.25
|
|
$1.04
|
|
$0.43
|
|
$1.46
|
|
|
|
|
|
|
|
|
|
Earnings Per Share – Diluted:
|
|
|
|
|
|
|
|
|
Net Income per share from Continuing Operations
|
|
$0.05
|
|
$0.06
|
|
$0.16
|
|
$0.27
|
Net Income from Discontinued Operations
|
|
$0.19
|
|
$0.96
|
|
$0.26
|
|
$1.17
|
Net Income per share - Diluted
|
|
$0.24
|
|
$1.02
|
|
$0.42
|
|
$1.44
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares - Basic
|
|
7,532
|
|
7,345
|
|
7,470
|
|
7,396
|
Weighted Average Number of Common Shares - Diluted
|
|
7,816
|
|
7,485
|
|
7,697
|
|
7,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared Per Common Share
|
|
$0.07
|
|
$0.14
|
|
$0.28
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data
|
In Thousands
|
(Unaudited)
|
|
|
|
As of January 31, 2014
|
|
As of January 31, 2013
|
Cash & Marketable Securities
|
|
$27,107
|
|
$39,508
|
Current Assets
|
|
$66,089
|
|
$70,122
|
Total Assets
|
|
$78,705
|
|
$79,557
|
Current Liabilities
|
|
$10,713
|
|
$14,219
|
Shareholders’ Equity
|
|
$66,613
|
|
$63,837
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Adjustments
|
Net Income from Continuing Operations
|
In Thousands Except for Per Share Data
|
(Unaudited)
|
|
|
|
Three-Months Ended
|
|
Twelve-Months Ended
|
|
|
January 31, 2014
|
|
January 31, 2013
|
|
January 31, 2014
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP based results:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$399
|
|
$442
|
|
$1,237
|
|
$2,038
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
Product Replacement Costs
|
|
(231)
|
|
-
|
|
205
|
|
-
|
|
|
|
|
|
|
|
|
|
Retirement Package for Executive
|
|
359
|
|
-
|
|
359
|
|
-
|
|
|
|
|
|
|
|
|
|
Acquisition Related Expenses
|
|
59
|
|
-
|
|
59
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$586
|
|
$442
|
|
$1,860
|
|
$2,038
|
|
|
|
|
|
|
|
|
|
GAAP based results:
|
|
|
|
|
|
|
|
|
EPS-Diluted
|
|
$0.05
|
|
$0.06
|
|
$0.16
|
|
$0.27
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
Product Replacement Costs
|
|
(0.03)
|
|
-
|
|
0.03
|
|
-
|
|
|
|
|
|
|
|
|
|
Retirement Package for Executive
|
|
0.05
|
|
-
|
|
0.05
|
|
-
|
|
|
|
|
|
|
|
|
|
Acquisition Related Expenses
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP EPS-Diluted
|
|
$0.08
|
|
$0.06
|
|
$0.25
|
|
$0.27
|
Source: Astro-Med, Inc.
Astro-Med, Inc.
Joseph P. O’Connell, 800-343-4039
Senior Vice
President, Chief Financial Officer