Astro-Med Reports Record Revenue and Improved Margins in Second-Quarter FY15; Board of Directors Declares Regular Cash Dividend

  Astro-Med Reports Record Revenue and Improved Margins in Second-Quarter
  FY15; Board of Directors Declares Regular Cash Dividend

  *Net Sales of $22.4 Million, Up 30.1% From Prior Year
  *Gross Margin Increases 260 Basis Points
  *Operating Margin Increases 450 Basis Points
  *Diluted EPS of $0.18, up from $0.09 in Prior Year

Business Wire

WEST WARWICK, R.I. -- August 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.

                                                             
                                                                          
ASTRO-MED, INC.
Consolidated Statements of Operations In Thousands Except for Per Share Data
(Unaudited)
                                                                          
                       Three-Months Ended                Six-Months Ended
                       August 2,       August 3,         August 2,        August 3,
                       2014            2013              2014             2013
                                                                          
Net Sales              $ 22,366        $ 17,194          $ 43,140         $ 32,679
Cost of Sales            12,777          10,271            24,915           19,980
Product
Replacement              -               -                 -                672
Related Costs
                                                                          
Gross Profit             9,589           6,923             18,225           12,027
                         42.9   %        40.3   %          42.2   %         36.8   %
Operating
Expenses:
Selling and              4,503           3,382             8,878            6,954
Marketing
Research and             1,479           1,274             2,850            2,387
Development
General and             1,443         1,380           2,634          2,521  
Administration
                         7,425           6,036             14,362           11,862
                                                                          
Operating                2,164           887               3,863            165
Income
                         9.7    %        5.2    %          9.0    %         0.5    %
                                                                          
Other Income             83              (25    )          (38    )         (62    )
(Expense), Net
                                                                       
Income from
Continuing               2,247           862               3,825            103
Operations
Before Taxes
                                                                          
Income Tax
Provision for            812             331               1,261            11
Continuing
Operations
                                                                       
Income from
Continuing               1,435           531               2,564            92
Operations
                                                                          
Income from
Discontinued            -             165             -              155    
Operations,
Net of Taxes
                                                                          
Net Income              1,435         696             2,564          247    
                                                                          
Earnings Per Share – Basic:
Net Income per
share from             $ 0.19          $ 0.07            $ 0.34           $ 0.01
Continuing
Operations
Net Income per
share from              -             0.02            -              0.02   
Discontinued
Operations
Net Income per         $ 0.19         $ 0.09           $ 0.34          $ 0.03   
share - Basic
                                                                          
Earnings Per Share – Diluted:
Net Income per
share from             $ 0.18          $ 0.07            $ 0.33           $ 0.01
Continuing
Operations
Net Income per
share from              -             0.02            -              0.02   
Discontinued
Operations
Net Income per
share -                $ 0.18         $ 0.09           $ 0.33          $ 0.03   
Diluted
                                                                          
Weighted Avg
Number of                7,704           7,458             7,652            7,429
Common Shares
- Basic
Weighted Avg
Number of                7,916           7,655             7,883            7,617
Common Shares
- Diluted
                                                                          
Dividends
Declared Per           $ 0.07          $ 0.07            $ 0.14           $ 0.14
Common Share
                                                                          
                                                                          



Selected Balance Sheet Data
in Thousands
(Unaudited)
                                                 
                                     As of              As of
                                     August 2, 2014     January 31, 2014
Cash & Marketable Securities         $    28,007        $     27,107
Current Assets                       $    66,557        $     65,034
Total Assets                         $    79,058        $     77,964
Current Liabilities                  $    8,617         $     9,892
Shareholders’ Equity                 $    69,221        $     66,614
                                                              
                                                              

                 
                      
Reconciliation of Non-GAAP Adjustments in Thousands
(Unaudited)
                      
                      Three-Months Ended              Six-Months Ended
                      August 2,       August            August 2,       August
                      2014         3, 2013         2014         3,
                                                                        2013
GAAP based
results as
reported:
                                                                        
Net Income            $  1,435        $  696            $  2,564        $ 247
                                                                        
Non-GAAP
adjustments:
Product
Replacement             -              -                -             423
Costs
Non-GAAP Net          $  1,435        $  696            $  2,564        $ 670
Income
                                                                        
                                                                        
GAAP based
results as
reported:
EPS -diluted          $  0.18         $  0.09           $  0.33         $ 0.03
Non-GAAP
adjustments:
Product
Replacement             -              -                -             0.06
Costs
Non-GAAP EPS          $  0.18         $  0.09           $  0.33         $ 0.09
- diluted
                                                                        
                                                                        

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.

Contact:

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