Astro-Med, Inc. Reports 12.0% Sales Growth for Fiscal 2014 and 9.6% for Fourth Quarter

  Astro-Med, Inc. Reports 12.0% Sales Growth for Fiscal 2014 and 9.6% for
  Fourth Quarter

 Orders up 39.8% Year-over-year for Fourth Quarter 2014 and 19.1% for Fiscal
                                     2014

Business Wire

WEST WARWICK, R.I. -- March 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,  January 31,   January 31,  January
                           2014          2013          2014          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),    (58)          15            (121)         (41)
Net
                                                                  
Income from Continuing     127           747           1,412         2,885
Operations Before Taxes
                                                                     
Income Tax Provision
(Benefit) for Continuing   (272)         305           175           847
Operations
                                                                  
Income from Continuing     399           442           1,237         2,038
Operations
                                                                     
Income from Discontinued   1,458         7,194         1,975         8,729
Operations, net of taxes
                                                                     
                                                                     
Net Income                 $1,857        $7,636        $3,212        $10,767
                                                                     
                                                                     
Earnings Per Share –
Basic:
Net Income per share
from Continuing            $0.05         $0.06         $0.17         $0.28
Operations
Net Income per share
from Discontinued          $0.20         $0.98         $0.26         $1.18
Operations
Net Income per share -     $0.25         $1.04         $0.43         $1.46
Basic
                                                                     
Earnings Per Share –
Diluted:
Net Income per share
from Continuing            $0.05         $0.06         $0.16         $0.27
Operations
Net Income from            $0.19         $0.96         $0.26         $1.17
Discontinued Operations
Net Income per share -     $0.24         $1.02         $0.42         $1.44
Diluted
                                                                     
Weighted Average Number    7,532         7,345         7,470         7,396
of Common Shares - Basic
Weighted Average Number
of Common Shares -         7,816         7,485         7,697         7,483
Diluted
                                                                     
                                                                     
Dividends Declared Per     $0.07         $0.14         $0.28         $0.35
Common Share
                                                                     


Selected Balance Sheet Data
In Thousands
(Unaudited)

                              As of             As of
                               January 31, 2014   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,  January 31,   January 31,  January 31,
                         2014          2013          2014          2013
                                                                   
                                                                   
GAAP based results:
Net Income               $399          $442          $1,237        $2,038
                                                                   
Non-GAAP adjustments:
Product Replacement      (231)         -             205           -
Costs
                                                                   
Retirement Package for   359           -             359           -
Executive
                                                                   
Acquisition Related      59            -             59            -
Expenses
                                                                   
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      (0.03)        -             0.03          -
Costs
                                                                   
Retirement Package for   0.05          -             0.05          -
Executive
                                                                   
Acquisition Related      0.01          -             0.01          -
Expenses
                                                                   
Non-GAAP EPS-Diluted     $0.08         $0.06         $0.25         $0.27

Contact:

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