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Net Sales of $22.4 Million, Up 30.1% From Prior Year
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Gross Margin Increases 260 Basis Points
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Operating Margin Increases 450 Basis Points
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Diluted EPS of $0.18, up from $0.09 in Prior Year
WEST WARWICK, R.I.--(BUSINESS WIRE)--Aug. 20, 2014--
Astro-Med, Inc. (NASDAQ: ALOT), a leading manufacturer of specialty
high-tech printing systems and data acquisition products, today reported
net sales of $22.4 million for the three months ended August 2, 2014, an
increase of 30.1% from the same period a year earlier. Net income for
the three months ended August 2, 2014 was $1.4 million, or $0.18 per
diluted share, compared with net income of $696,000, or $0.09 per
diluted share, for the same period a year earlier.
For the six months ended August 2, 2014, Astro-Med reported net sales of
$43.1 million, an increase of 32.0% over the prior year. The Company
reported net income of $2.6 million equal to $0.33 per diluted share.
During the Company’s six-month period of the prior year, net income on a
GAAP basis was $247,000, equal to $0.03 per diluted share, which
includes a reserve established to address a non-compliant component in a
limited number of ToughWriter Printers. The after tax cost was equal to
$0.06 per diluted share. Excluding the impact of the reserve, the
Company’s net income on a non-GAAP basis was $670,000 equal to $0.09 per
diluted share.
“We continued our strong growth momentum in fiscal 2015 with a solid
second-quarter performance,” said Gregory A. Woods, the Company’s
President and Chief Executive Officer. “We reported record quarterly
revenues of $22.4 million, with both of our segments reporting record
sales. We grew orders by 16.2% in Q2 and exited the quarter with a
backlog of $14.7 million, up 4.6% from year end. The success of our
channel expansion program was evident in our top-line growth and in our
further penetration of international markets.
“QLS product sales increased 25.1% in the second quarter to $15.3
million, aided by the continued strength of our Kiaro! Series of color
label printers. Our new wide format Kiaro! 200 printer is also opening
up new market opportunities for large format applications and has been
very well received by customers, who are impressed by the quality and
performance of the product.
“Our Test & Measurement product group of ruggedized products and data
acquisition systems grew 42.2% to $7.1 million in the quarter with solid
contributions from our ruggedized printers and high-speed data
acquisition systems, as well as our line of Miltope ruggedized aerospace
printers. The response to our expanding product line from Tier One
aviation manufacturers and airline companies continues to be very
positive.
“We are focusing on growing our top line both organically and through
strategic add-on acquisitions,” added Woods. “At the same time we are
also working diligently to continue to improve our profitability. Our
Lean transformation is proceeding nicely, and we are beginning to see
the results of our operational excellence efforts on our financial
performance.”
Operating profit for the second quarter of fiscal 2015 increased to $2.2
million, or 9.7% of net sales, compared with $887,000, or 5.2% of net
sales, for the same period of fiscal 2014. The 450 basis point increase
in margin reflects higher revenue, improved product mix and the ongoing
success of Astro-Med’s Lean manufacturing initiatives.
At August 2, 2014, Astro-Med had cash and cash equivalents of $28.0
million, compared with $27.1 million at January 31, 2014.
Board of Directors Declares Regular Quarterly Dividend
On August 18, 2014, the Directors of Astro-Med, Inc. declared a regular
quarterly cash dividend of $0.07 per share. The dividend, which
represents a cash dividend of $0.28 per share on an annualized basis, is
payable October 3, 2014 to shareholders of record on September 12, 2014.
Q2 Fiscal 2015 Conference Call
The second quarter fiscal 2015 financial results conference call will be
held today, Wednesday, August 20, 2014 at 9:00 a.m. EDT. It will be
broadcast in real time on the Internet through the “Investors” section
of the Company’s website at www.Astro-MedInc.com.
You also may participate in the conference call by dialing 888-516-2438
(U.S. and Canada) or 719-457-2668 (International) with passcode 570873.
Following the live broadcast, an audio webcast of the call will be
available on the Company’s website. A conference call replay also will
be available for seven days by dialing 888-203-1112 (U.S. and Canada) or
719-457-0820 (International) with passcode 8273326.
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ASTRO-MED, INC. Consolidated Statements of Operations
In Thousands Except for Per Share Data (Unaudited)
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Three-Months Ended
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Six-Months Ended
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August 2, 2014
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August 3, 2013
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August 2, 2014
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August 3, 2013
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Net Sales
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$
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22,366
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$
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17,194
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$
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43,140
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$
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32,679
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Cost of Sales
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12,777
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10,271
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24,915
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19,980
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Product Replacement Related Costs
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-
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-
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-
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672
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Gross Profit
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9,589
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6,923
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18,225
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12,027
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42.9%
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40.3%
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42.2%
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36.8%
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Operating Expenses:
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Selling and Marketing
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4,503
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3,382
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8,878
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6,954
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Research and Development
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1,479
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1,274
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2,850
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|
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2,387
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General and Administration
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1,443
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1,380
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2,634
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2,521
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7,425
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6,036
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14,362
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11,862
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Operating Income
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2,164
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887
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3,863
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165
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9.7%
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5.2%
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9.0%
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0.5%
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Other Income (Expense), Net
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83
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(25) |
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(38)
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(62) |
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Income from Continuing Operations Before Taxes
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2,247
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862
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3,825
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103
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Income Tax Provision for Continuing Operations
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812
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331
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1,261
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11
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Income from Continuing Operations
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1,435
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531
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2,564
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92
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Income from Discontinued Operations, Net of Taxes
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-
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165
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-
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155
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Net Income
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1,435
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696
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2,564
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247
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Earnings Per Share – Basic:
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Net Income per share from Continuing Operations
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$
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0.19
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$
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0.07
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$
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0.34
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$
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0.01
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Net Income per share from Discontinued Operations
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-
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0.02
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-
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0.02
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Net Income per share - Basic
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$
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0.19
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$
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0.09
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$
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0.34
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$
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0.03
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Earnings Per Share – Diluted:
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Net Income per share from Continuing Operations
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$
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0.18
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|
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$
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0.07
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|
|
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$
|
0.33
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|
|
|
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$
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0.01
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Net Income per share from Discontinued Operations
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-
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|
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0.02
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-
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|
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|
|
0.02
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Net Income per share - Diluted
|
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$
|
0.18
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|
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$
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0.09
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$
|
0.33
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|
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$
|
0.03
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Weighted Avg Number of Common Shares - Basic
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7,704
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|
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7,458
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|
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7,652
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|
|
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|
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7,429
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Weighted Avg Number of Common Shares - Diluted
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|
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7,916
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|
|
|
|
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7,655
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|
|
|
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|
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7,883
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|
|
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|
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7,617
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Dividends Declared Per Common Share
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|
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$
|
0.07
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|
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$
|
0.07
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|
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|
|
$
|
0.14
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|
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$
|
0.14
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Selected Balance Sheet Data in Thousands (Unaudited)
|
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As of August 2, 2014
|
|
|
As of January 31, 2014
|
Cash & Marketable Securities
|
|
|
|
|
$
|
28,007
|
|
|
$
|
27,107
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Current Assets
|
|
|
|
|
$
|
66,557
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|
|
$
|
65,034
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Total Assets
|
|
|
|
|
$
|
79,058
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|
|
$
|
77,964
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Current Liabilities
|
|
|
|
|
$
|
8,617
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|
|
$
|
9,892
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Shareholders’ Equity
|
|
|
|
|
$
|
69,221
|
|
|
$
|
66,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
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|
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|
|
|
|
|
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|
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Reconciliation of Non-GAAP Adjustments in Thousands (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended
|
|
|
Six-Months Ended
|
|
|
|
|
|
August 2, 2014
|
|
|
|
August 3, 2013
|
|
|
|
|
|
August 2, 2014
|
|
|
|
August 3, 2013
|
GAAP based results as reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
$
|
1,435
|
|
|
|
$
|
696
|
|
|
|
|
|
$
|
2,564
|
|
|
|
$
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Product Replacement Costs
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
423
|
Non-GAAP Net Income
|
|
|
|
|
$
|
1,435
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|
|
|
$
|
696
|
|
|
|
|
|
$
|
2,564
|
|
|
|
$
|
670
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
GAAP based results as reported:
|
|
|
|
|
|
|
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|
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EPS -diluted
|
|
|
|
|
$
|
0.18
|
|
|
|
$
|
0.09
|
|
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.03
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Replacement Costs
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
0.06
|
Non-GAAP EPS - diluted
|
|
|
|
|
$
|
0.18
|
|
|
|
$
|
0.09
|
|
|
|
|
|
$
|
0.33
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
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|
|
|
|
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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 growth through acquisitions, 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, 2014 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 measures, Non-GAAP net income and diluted EPS.
The Company believes that the inclusion of these non-GAAP financial
measures 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 these non-GAAP measures, 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. These measures are also used by the
Company’s management to assist with their financial and operating
decision making.

Source: Astro-Med, Inc.
Astro-Med, Inc
Joseph P. O’Connell, 800-343-4039
Senior Vice
President, Chief Financial Officer