Astro-Med, Inc. Reports First Quarter Fiscal 2014 Financial Results; Directors Declare Regular Cash Dividend

Astro-Med, Inc. Reports First Quarter Fiscal 2014 Financial Results; Directors 
Declare Regular Cash Dividend 
WEST WARWICK, RI -- (Marketwired) -- 05/21/13 --  Astro-Med, Inc.
(NASDAQ: ALOT) reports Net Sales for the First Quarter of
$15,485,000, an increase of 8.0% over the $14,336,000 achieved in the
First Quarter of the previous fiscal year. First Quarter Bookings
were $16,534,000, an increase of 10.0% over the Bookings in the First
Quarter of the previous fiscal year.  
On a GAAP basis, Astro-Med reported a Net Loss of $449,000, equal to
$0.06 per diluted share. The First Quarter results include the
estimated negative impact from a reserve established to address a
non-compliant component discovered in a limited population of the
Company's ToughWriter printers. The reserve amounts to $389,000 on an
after tax basis, equal to $0.05 per diluted share. Excluding the
impact of the reserve, the Company reported on a non GAAP basis a Net
Loss of $60,000, equal to $0.01 per diluted share. For the
corresponding period of the previous year, the Company reported Net
Income of $837,000 on a GAAP basis, equal to $0.11 per diluted share.
Net Income in the prior year's First Quarter includes a tax benefit
of $285,000, or $0.04 per diluted share, due to a favorable
resolution of a previously uncertain tax position. 
Astro-Med reports that tests conducted by the Company in April 2013
revealed that one of its suppliers had been using non-conforming
material in the power supply used in certain models of Astro-Med's
Test & Measurement (T&M) Ruggedized printers. No malfunctions have
been reported by customers as a result of the non-conforming
material. 
Upon identifying this issue, Astro-Med immediately suspended
production of the printers and notified all customers. In parallel,
Astro-Med notified its supplier who confirmed the problem. Astro-Med
has already received power supplies with compliant materials and has
resumed production and shipments to customers. 
Astro-Med is working with its customers to correct the power supplies
on existing printers and will do this on a gradual basis over several
months. Astro-Med has estimated the cost associated with the
replacement program based upon the number of printers shipped during
the period the non-conforming material was used. Those costs and the
related reserve have been recognized and recorded in the current
Quarter and are included in the Company's First Quarter financial
statements. 
Since Astro-Med's vendor deviated from the agreed upon specifications
for the power supply while providing certificates of conformance to
the original specifications, Astro-Med intends to seek and expects to
receive full recovery of all costs incurred and any other damages
associated with this issue from the supplier.  
CEO Commentary 
Commenting on the First Quarter FY 2014 results, Everett V. Pizzuti,
Chief Executive Officer, stated: "The Company achieved healthy demand
for its products in the First Quarter. Orders Received were up 10.0%
from the prior year. Our QuickLabel Systems (QuickLabel) segment
reported increased demand of 11.3% for the current Quarter. Within
our T&M segment, demand for our Ruggedized product line continued to
grow, as new orders have increased 20.0% compared to the prior year.
Additionally, data acquisition products continue to find new markets
as customers recognize the full scope of functions and features
available in these advanced data collection products. As an outgrowth
of this demand, our Backlog rose 14.1% from the prior year-end level. 
We continue to experience solid demand for the new QuickLabel Kiaro!
color label printer in both our domestic and international markets.
During the First Quarter, we continued to invest in expanding our
distribution channel for the QuickLabel printers. 
The T&M Ruggedized Product line continues to grow, and we recently
negotiated new multi-year printer contracts for both commercial and
regional jet aircrafts with manufacturers around the world. 
Our Gross Profit Margins in the Quarter were lower than last year's
First Quarter as we incurred certain one-time manufacturing costs
related to the disruption from the power supply issue as well as the
transition of the Grass Technologies Rockland, MA operation to West
Warwick, RI during the Quarter. However, we continue to implement
Lean Manufacturing procedures with the objective of improving profit
margins. 
Our Balance Sheet remains solid with cash and marketable securities
at $32,291,000; the working capital assets of accounts receivable are
at a DSO of 47 days; inventories are turning 3.3 times and our Book
Value rose to $8.50/share. We continue to remain optimistic with
respect to the Company's sales growth and prospects for a return to
profitability in the quarters ahead." 
Non GAAP Financial Measures 
The Company's non GAAP results exclude cost related to the product
replacement program for the First Quarter of the current year and a
benefit related to the favorable resolution of a previously uncertain
tax position for the First Quarter of the prior year. 
The Company believes that the presentation of results excluding these
items provides meaningful supplemental information to both Management
and investors that is indicative of the Company's financial results.
Therefore, the Company believes these non GAAP financial measures
facilitate comparison of results across reporting periods.
Reconciliation between the Company's results of operations on a GAAP
and non GAAP basis for the periods reported is included at the end of
this release. 
The non GAAP financial measures disclosed by the Company should be
viewed in addition to, and not as a substitute for, the Company's
reported results prepared in accordance with GAAP. The Company
believes that both Management and investors benefit from referring to
these non GAAP financial measures in assessing the Company's
performance and when planning, forecasting, and analyzing future
periods. These non GAAP financial measures also facilitate
Management's internal comparisons to the Company's historical
performance.  
Directors' Declare Regular Quarterly Dividend 
On May 21, 2013, the Directors of Astro-Med, Inc. declared the
regular quarterly cash dividend of $0.07 per share, payable on July
1, 2013 to shareholders of record on June 14, 2013. 
First Quarter Conference Call on Wednesday, May 22 at 11:00 am EDT 
This call can be accessed at Astro-Med, Inc's web site at
www.Astro-MedInc.com and is being webcast by Thomson Financial. You
can participate in the conference call by dialing 877-941-8609 with
passcode 4617537.  
Following the live broadcast, an audio webcast of the call will be
available for ten days at www.Astro-MedInc.com. A telephone replay of
the conference call will also be available for seven days by dialing
800-406-7325 with passcode 4617537.  
The Astro-Med, Inc. webcast is also being distributed through the
Thomson StreetEvents Network. Individual investors can listen to the
call at www.earnings.com, Thomson's individual investor portal,
powered by StreetEvents. Institutional investors can access the call
via Thomson StreetEvents (www.streetevents.com), a password-protected
event management site.  


 
                                                                            
                                                                            
                                                                            
                               ASTRO-MED, INC.                              
                    Co
nsolidated Statements of Operations                   
                   In Thousands Except for Per Share Data                   
                                 (Unaudited)                                
                                                                            
                                               May 4, 2013   April 28, 2012 
                                             --------------  -------------- 
Net Sales                                    $       15,485  $       14,336 
                                                                            
Cost of Sales                                         9,708           8,837 
Product Replacement Related Costs                       672               - 
                                             --------------  -------------- 
                                                                            
Gross Profit                                          5,105           5,499 
                                                       33.0%           38.4%
Operating Expenses:                                                         
  Selling                                             3,572           3,051 
  General & Administration                            1,142           1,036 
  Research & Development                              1,113             984 
                                             --------------  -------------- 
                                                      5,827           5,071 
                                                                            
Operating Income (Expense)                             (722)            428 
                                                        4.7%            3.0%
                                                                            
Other Expense, Net                                      (36)            (13)
                                                                            
                                             --------------  -------------- 
Income (Loss) from Continuing Operations                                    
 Before Taxes                                          (758)            415 
                                                                            
Income Tax Benefit for Continuing Operations           (319)           (144)
                                                                            
                                             --------------  -------------- 
Income (Loss) from Continuing Operations               (439)            559 
                                                                            
Income (Loss) from Discontinued Operations,                                 
 net of taxes                                           (10)            278 
                                             --------------  -------------- 
                                                                            
Net Income (Loss)                            $         (449) $          837 
                                             ==============  ============== 
                                                                            
Earnings Per Share - Basic:                                                 
Net Income (Loss) per share from Continuing                                 
 Operations                                  $        (0.06) $         0.07 
Net Income (Loss) per share from                                            
 Discontinued Operations                                  -            0.04 
                                             --------------  -------------- 
Net Income (Loss) per share - Basic          $        (0.06) $         0.11 
                                             ==============  ============== 
                                                                            
Earnings Per Share - Diluted:                                               
Net Income (Loss) per share from Continuing                                 
 Operations                                  $        (0.06) $         0.07 
Net Income (Loss) from Discontinued                                         
 Operations                                               -            0.04 
                                             --------------  -------------- 
Net Income (Loss) per share - Diluted        $        (0.06) $         0.11 
                                             ==============  ============== 
                                                                            
Weighted Average Number of Common Shares -                                  
 Basic                                                7,401           7,425 
Weighted Average Number of Common Shares -                                  
 Diluted                                              7,577           7,487 
                                                                            
Dividends Declared Per Common Share          $         0.07  $         0.07 
                                                                            
                                                                            
                                                                            
             Reconciliation of Non GAAP Adjustments (Unaudited)             
                                                                            
                                          May 4, 2013       April 28, 2012  
                                       -----------------  ----------------- 
                                          Net                Net            
                                         Income             Income          
                                         (Loss)    EPS*     (Loss)    EPS*  
                                       ---------  ------  ---------  ------ 
GAAP based results as reported         $    (449) $(0.06) $     837  $ 0.11 
Non GAAP adjustments:                                                       
Product Replacement Related Costs            389    0.05          -       - 
Favorable resolution of a previously                                        
 uncertain tax position                        -       -       (285)  (0.04)
                                       ---------  ------  ---------  ------ 
Non GAAP based results as adjusted     $     (60) $(0.01) $     552  $ 0.07 
                                       =========  ======  =========  ====== 
                                                                            
* Based on fully diluted shares                                             
                                                                            
                                                                            
                                                                            
                         Selected Balance Sheet Data                        
                                In Thousands                                
                                 (Unaudited)                                
                                                                            
                                                 As of            As of     
                                              May 4, 2013   January 31, 2013
                                           -----------
----- ----------------
Cash & Marketable Securities               $         32,291 $         39,508
Current Assets                             $         63,315 $         70,122
Total Assets                               $         74,781 $         79,913
Current Liabilities                        $          8,961 $         13,525
Shareholders' Equity                       $         63,268 $         63,837

 
About Astro-Med, Inc. 
Astro-Med, Inc. is a leading manufacturer of specialty high tech
printing systems and data acquisition products. The products include
color label printers and consumables sold under the QuickLabel
Systems brand as well as rugged printers for avionics applications
and data acquisition recorders sold under the Astro-Med brand.
Astro-Med, Inc. is a member of the Russell Microcap(R) Index.
Additional information is available by visiting www.Astro-MedInc.com. 
Safe Harbor Statement 
This news release contains forward-looking statements, and actual
results may vary from those expressed or implied herein. Factors that
could affect these results include those mentioned in Astro-Med's
FY2013 annual report and its annual and quarterly filings with the
Securities and Exchange Commission.  
Contact:
Everett V. Pizzuti
CEO 
Joseph P. O'Connell
CFO 
Astro-Med, Inc.
(401) 828-4000
 www.Astro-Medinc.com 
 
 
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