EX-99 2 pressreleaseearn321.htm EXHIBIT 99.1 PRESS RELEASE

Exhibit 99.1

 

PRESS RELEASE

 


 

600 East Greenwich Avenue

West Warwick, Rhode Island 02893

 

For Immediate Release

 

Contact:

Albert W. Ondis

March 21, 2006

 

Joseph P. O’Connell

 

 

Astro-Med, Inc.

 

 

(401) 828-4000

 

 

www.astro-medinc.com

 

 

Astro-Med Reports Record Fourth Quarter and Annual Sales;

Directors Increase Regular Cash Dividend

 

West Warwick, RI, March 21, 2006 -- Astro-Med, Inc. (NASDAQ:ALOT) reports net income of $856,000, equal to $0.15 per diluted share, on record sales of $16,005,000 for the Fourth Quarter ended January 31, 2006. During the corresponding period of the previous year, the Company reported net income of $458,000, equal to $0.08 per diluted share, on sales of $14,497,000.

 

During the twelve-month period of the fiscal year, net income was $2,551,000, equal to $0.44 per diluted share, on sales of $59,301,000. Net income in the twelve-month period includes $361,000, equal to $0.06 per diluted share for a tax-related benefit related to the favorable resolution of certain income tax examinations reported in the Third Quarter. Excluding the tax related benefit, earnings were $2,190,000, or $0.38 per diluted share. For the corresponding period last year, the Company reported net income of $2,709,000, equal to $0.47 per diluted share, on sales of $55,974,000. Net income in the prior fiscal year includes $939,000, equal to $0.16 per diluted share, in tax benefits. The tax benefits stemmed from the release of the valuation allowance on the net deferred tax asset reported in the First Quarter of the prior fiscal year. Excluding the tax related benefit, earnings in the previous year were $1,770,000, or $0.31 per diluted share.

 

Commenting on the results, Albert W. Ondis, Chief Executive Officer stated: “It was an outstanding Fourth Quarter for Astro-Med as we reported record sales and new orders leading to strong earnings and cash flow. New orders reached $17,347,000 in the quarter, a 23% increase over the prior year as demand from our domestic and international customers rose more than 20% above the prior year. Sales were also strong, reaching $16,005,000, representing an increase of 10% over the prior year. All three product groups, Test & Measurement (T&M), QuickLabel® Systems (QLS) and Grass-Telefactor® (G-T) reported sales increases.

 

 



 

 

“We are also pleased with the Company’s results for the year, as new orders reached $61,928,000, a record for Astro-Med, representing a 10% increase over the previous year. We received a strong demand for all products. The Company’s sales of $59,301,000 reached a record level and all product groups experienced growth from the prior year. As a result of our sales growth and improved margins, Astro-Med had a 23% increase in operating income.

 

“Our balance sheet remains solid with a current ratio of 4.7 to 1, we retain $14,725,000 in cash and marketable securities and a 10.4% return on shareholders equity excluding cash and marketable securities. We remain optimistic that with a continuous flow of new products together with the continued expansion of marketing initiatives globally, we will realize our planned growth and profitability goals.”

 

As previously reported, on March 20, 2006, the Directors of Astro-Med declared an increase to the quarterly cash dividend from $0.04 per share to $0.05 per share payable on April 3, 2006 to shareholders of record on March 24, 2006.

 

The Fourth Quarter conference call will be held today, Tuesday, March 21, 2006 at 5:00 PM EST. It will be broadcast in real time on the Internet through the Investor Relations portion of our website at www.astro-medinc.com. We invite you to log on and listen, or access the broadcast any time for up to 5 days following the event.

 

Astro-Med, Inc. is a leading manufacturer of high tech specialty printing systems, electronic medical instrumentation, and test and measurement instruments employed around the world in a wide range of industrial, scientific, and medical applications.

 

ASTRO-MED, INC.

 

Consolidated Statement of Operations

In Thousands Except for Per Share Data

 

 

Three-Months Ended

Twelve-Months Ended

 

January 31, 2006

 

January 31, 2005

January 31, 2006

 

January 31, 2005

 

Net Sales

$16,005

 

$14,497

$59,301

 

$55,974

 

 

 

 

 

 

 

 

 

Gross Profit

6,855

 

6,180

24,658

 

23,046

 

 

42.8%

 

42.6%

41.6%

 

41.2%

 

Operating Expenses:

 

 

 

 

 

 

 

Selling, General & Administrative

4,489

 

4,416

17,460

 

16,430

 

Research & Development

1,111

 

1,054

4,043

 

4,047

 

 

5,600

 

5,470

21,503

 

20,477

 

 

 

 

 

 

 

 

 

Operating Income

1,255

 

710

3,155

 

2,569

 

 

7.8%

 

4.9%

5.3%

 

4.6%

 

 

 

 

 

 

 

 

 

Other, Net

31

 

2

247

 

197

 

 

 

 

 

 

 

 

 

Income Before Taxes

1,286

 

712

3,402

 

2,766

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Provision)

(430)

 

(254)

(851)

(1)

( 57)

(2)

 

 

 

 

 

 

 

 

Net Income

$856

 

$458

$2,551

 

$2,709

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Net Income Per Share - Basic

$0.16

 

$0.09

$0.48

 

$0.51

 

Net Income Per Share - Diluted

$0.15

 

$0.08

$0.44

 

$0.47

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares - Basic

 

5,314

 

 

5,296

 

5,291

 

 

5,290

 

Weighted Average Number of Common Shares - Diluted

 

5,836

 

 

5,687

 

5,786

 

 

5,781

 

 

 

 

 

 

 

 

 

Dividends Declared Per Common Share

 

$0.05

 

 

$0.04

 

$0.17

 

 

$0.16

 

 

(1)

Includes $361,000 in tax benefits resulting from the favorable resolution of certain income tax examinations.

(2)

Includes $939,000 in tax benefits resulting from the release of the valuation allowance on the net deferred tax asset reported in the first quarter of FY 2005.

 

Selected Balance Sheet Data

In Thousands

 

 

 

 

As of

January 31, 2006

 

As of

January 31,  

2005

Cash & Marketable Securities

$14,725

$13,983

 

 

 

Current Assets

39,662

36,726

 

 

 

Total Assets

49,647

47,039

 

 

 

Current Liabilities

8,440

7,458

 

 

 

Shareholders’ Equity

$40,302

$38,408

 

 

 

 

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 FY2005 annual report and its annual and quarterly filings with the Securities and Exchange Commission.