-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KUOxAXUDJmFFvjeUvIc4omsySid0wcPX82fhqaTYiis5dQM8/VTs8uw437O92p9q fokpDmXMdCeuAhOaos2B2w== 0000950109-96-003658.txt : 19960607 0000950109-96-003658.hdr.sgml : 19960607 ACCESSION NUMBER: 0000950109-96-003658 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960504 FILED AS OF DATE: 19960606 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASTRO MED INC /NEW/ CENTRAL INDEX KEY: 0000008146 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 050318215 STATE OF INCORPORATION: RI FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13200 FILM NUMBER: 96577699 BUSINESS ADDRESS: STREET 1: 600 E GREENWICH AVE CITY: WEST WARWICK STATE: RI ZIP: 02893 BUSINESS PHONE: 4018284000 MAIL ADDRESS: STREET 1: 600 E GREENWICH AVENUE CITY: WEST WARWICK STATE: RI ZIP: 02893 FORMER COMPANY: FORMER CONFORMED NAME: ATLAN TOL INDUSTRIES INC DATE OF NAME CHANGE: 19850220 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES - -- EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 1996 -------------------------------- OR __ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------- ---------- Commission file number 0-13200 -------------------------------------------------- Astro-Med, Inc. - ------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Rhode Island 05-0318215 - ------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 600 East Greenwich Avenue, West Warwick, Rhode Island 02893 - ------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (401) 828-4000 - ------------------------------------------------------------------------- (Registrant's telephone number, including area code) ________________________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No ___. --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $.05 Par Value - 4,978,117 shares (excluding treasury shares) as of May 21,1996 -1- ASTRO-MED, INC. INDEX Page No. -------- Part I. Financial Information: Consolidated Balance Sheets - January 31, 1996 and May 4, 1996. ........................ 3 Consolidated Statements of Income - Three Months Ended April 29, 1995 and May 4, 1996......... 4 Consolidated Statements of Cash Flows - Three Months Ended April 29, 1995 and May 4, 1996......... 5 Notes to Consolidated Financial Statements - May 4, 1996............................................... 6 Management's Discussion and Analysis of Financial Condition and Results of Operations....................... 7 Part II. Other Information................................... 9 -2- Part I. FINANCIAL INFORMATION ASTRO-MED, INC. CONSOLIDATED BALANCE SHEETS
January 31, May 4, ASSETS 1996 1996 ----- ---- (Unaudited) CURRENT ASSETS Cash and Cash Equivalents.................. $ 2,033,713 $ 4,822,326 Securities Available for Sale.............. 6,659,828 6,737,044 Accounts Receivable, Net................... 8,318,005 6,647,746 Inventories................................ 12,533,553 12,705,386 Prepaid Expenses and Other Current Assets.. 1,424,757 1,415,723 ----------- ----------- Total Current Assets..................... 30,969,856 32,328,225 PROPERTY, PLANT AND EQUIPMENT 17,063,855 16,694,070 Less Accumulated Depreciation.............. (8,350,722) (8,600,068) ----------- ----------- 8,713,133 8,094,002 OTHER ASSETS Excess of Cost Over Net Assets Acquired.... 1,012,693 1,003,613 Other...................................... 1,607,049 534,456 ----------- ----------- 2,619,742 1,538,069 ----------- ----------- $42,302,731 $41,960,296 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable........................... $ 2,136,825 $ 1,974,693 Accrued Compensation....................... 1,200,082 1,028,083 Accrued Expenses........................... 730,345 973,934 Income Taxes............................... 432,540 485,327 Current Maturities of Long-Term Debt....... 50,000 50,000 ----------- ----------- Total Current Liabilities................ 4,549,792 4,512,037 LONG-TERM DEBT, Less Current Maturities..... 175,000 150,000 EXCESS OF NET ASSETS ACQUIRED OVER COST..... 761,879 707,459 DEFERRED INCOME TAXES....................... 834,754 834,754 STOCKHOLDERS' EQUITY Preferred Stock, $10 Par Value, Authorized 100,000 Shares, None Issued.... Common Stock, $.05 Par Value, Authorized 13,000,000 Shares, Issued 5,123,310 and 5,126,683 Shares, Respectively........ 256,166 256,334 Additional Paid-In Capital................. 5,554,100 5,569,866 Retained Earnings.......................... 31,079,623 31,357,328 Treasury Stock, at Cost (103,066 Shares and 153,066 Shares, Respectively)......... (902,169) (1,336,548) Cumulative Translation Adjustment.......... (38,368) (83,903) Net Unrealized Gain (Loss) on Securities Available for Sale........................ 31,954 (7,031) ----------- ----------- 35,981,306 35,756,046 ----------- ----------- $42,302,731 $41,960,296 =========== ===========
-3- ASTRO-MED, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended ------------------------- April 29, May 4, 1995 1996 ---- ---- Net Sales.................................... $10,955,296 $10,489,822 Cost of Sales................................ 6,712,270 6,531,526 ---------- ----------- Gross Profit................................. 4,243,026 3,958,296 Costs and Expenses: Selling, General and Administrative........ 3,436,357 3,351,265 Research and Development................... 617,340 605,921 ---------- ----------- 4,053,697 3,957,186 ---------- ----------- Operating Income............................. 189,329 1,110 Other Income (Expense): Investment Income.......................... 99,224 519,039 Interest Expense........................... (6,088) (3,955) Other, Net................................. 181,588 17,917 ---------- ----------- 274,724 533,001 ---------- ----------- Income before Income Taxes................... 464,053 534,111 Provision for Income Taxes................... 122,000 91,000 ---------- ----------- Net Income................................... $ 342,053 $ 443,111 ========== =========== Earnings Per Common Share.................... $.07 $.09 ==== ==== Weighted Average Number of Common and Common Equivalent Shares Outstanding.............. 5,103,716 5,038,008 ========== =========== Dividends Declared Per Common Share.......... $.03 $.03 ==== ====
-4- ASTRO-MED, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended ------------------ April 29, May 4, 1995 1996 ---- ---- Cash Flows from Operating Activities: Net Income...................................... $ 342,053 $ 443,111 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization................. 276,834 204,006 Gain on Sale of Investment.................... (416,090) Other......................................... 1,062 Changes in Assets and Liabilities: Accounts Receivable......................... 643,626 1,670,259 Inventories................................. (1,191,638) (171,833) Other..................................... 307,694 9,034 Accounts Payable and Accrued Expenses..... (201,742) (189,403) Income Taxes.............................. 8,724 52,787 ---------- ---------- Total Adjustments (155,440) 1,158,760 Net Cash Provided by Operating Activities.......................... 186,613 1,601,871 Cash Flows from Investing Activities: Proceeds from Sales of Securities Available for Sale............................. 2,508,665 1,487,684 Purchases of Securities Available for Sale....................................... (1,892,942) (77,216) Proceeds from Sale of Building 515,935 Additions to Property, Plant and Equipment...... (457,466) (146,150) ---------- ---------- Net Cash Provided by Investing Activities.......................... 158,257 1,780,253 Cash Flows from Financing Activities: Payments of Long-Term Debt...................... (25,000) (25,000) Proceeds from Common Shares Issued Under Employee Benefit Plans................... 68,896 15,933 Purchases of Treasury Stock..................... (176,254) (434,379) Dividends Paid.................................. (151,229) (150,065) ---------- ---------- Net Cash (Used) by Financing Activities........ (283,587) (593,511) Net Increase in Cash and Cash Equivalents..................................... 61,283 2,788,613 Cash and Cash Equivalents, Beginning of Period.... 1,107,191 2,033,713 ---------- ---------- Cash and Cash Equivalents, End of Period.......... $1,168,474 $4,822,326 ========== ========== Supplemental Disclosures of Cash Flow Information: Cash Paid During the Period for: Interest.................................... $ 27,868 $ 8,643 Income Taxes................................ $ 100,456 $ 38,224
-5- ASTRO-MED, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS May 4, 1996 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) The accompanying financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company's annual report on Form 10-K for the year ended January 31, 1996. (b) Earnings per common share are computed based on the weighted average number of common shares and common share equivalents outstanding during each period. Common share equivalents include the dilutive effect of certain stock options under the treasury stock method. Fully diluted earnings per share have not been separately presented since they would not be materially different. Note 2 - INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and include material, labor and manufacturing overhead. The components of inventories were as follows:
January 31, May 4, 1996 1996 ---- ---- Materials and Supplies.. $ 6,460,730 $ 7,568,140 Work-In-Process......... 1,381,220 1,162,546 Finished Goods.......... 4,691,603 3,974,700 ----------- ----------- $12,533,553 $12,705,386 =========== ===========
-6- ASTRO-MED, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations: - --------------------- Sales Revenues in the 1st Quarter declined 4% from the previous year's first quarter sales. The results were attributable to lower sales volume in the traditional recorder products and certain Grass Instrument product lines. Sales of the Company's new product lines continued to increase with double digit growth rates reported in the Bar Code, SUNDANCE and K3 product lines. Growth was also strong in the Company's international offices where a sales increase of 22% was realized. The Company does expect this trend in new product expansion to drive its growth strategy. Gross profits during the quarter were 38% compared to 39% reported in the 1st quarter of the previous fiscal year. The product line mix was the prime contributor to the lower yield. As the new printers and data acquisition products increase their market penetration, the Company expects its Gross Profit Margins to improve. Selling, General & Administrative, and Research & Development spending in the 1st Quarter were lower than last year by 3%. The 1st Quarter's investment of $606,000 in Research & Development dollars affirms the Company's continued commitment to the development of new and improved product offerings. The Company's Investment Income was significantly higher than last year's first Quarter results. The increment was due to gains realized from the sales of securities in the Company's investment portfolio. Financial Condition: - -------------------- Long term debt consists of the remainder of an industrial development revenue bond financing used in prior years to construct facilities and make major acquisitions of machinery and equipment. The Company's present cash and investment securities, together with funds generated from operations and capital resources available to it, are expected to satisfy requirements for working capital and other needs for the foreseeable future. The current investment in inventories shown in the latest balance sheet is in accordance with business plans. No additional long-term financing is planned. -7- PART II. OTHER INFORMATION Item 4. Results of Votes of Security Holders An Annual Meeting of Shareholders of the registrant was held May 21, 1996. A proposed stock option plan was presented to the shareholders for their approval. Also, shareholders were asked to elect a Board of Directors to serve until the next Annual Meeting of Shareholders or until their successors are elected and qualified. The Company's Non-Employee Director Stock Option Plan was approved by the following vote: For--4,233,249; Against--144,214; Abstain--116,079. In an uncontested election, nominees for directors were elected by the following votes:
Name of Nominee Votes Votes for Director For Withheld --------------- --------- -------- Albert W. Ondis 4,489,794 6,651 Everett V. Pizzuti 4,491,144 5,301 Jacques V. Hopkins 4,490,694 5,751 Hermann Viets 4,491,144 5,301 Neil K. Robertson 4,490,469 5,976
Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: None. (b) Reports on Form 8-K: No reports on Form 8-K have been filed during the quarter for which this report is filed. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ASTRO-MED, INC. (Registrant) Date: May 21, 1996 By ____________________________ A. W. Ondis, Chairman (Principal Executive Officer) Date: May 21, 1996 By ____________________________ Joseph P. O'Connell, Vice President and Treasurer (Principal Financial Officer) -8- EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS JAN-31-1997 FEB-01-1996 MAY-04-1996 4,822,326 6,737,044 6,647,746 0 12,705,386 32,328,225 16,694,070 8,600,068 41,960,296 4,512,037 150,000 0 0 256,334 35,499,712 41,960,296 10,489,822 10,489,822 6,531,526 6,531,526 3,957,186 0 3,955 534,111 91,000 443,111 0 0 0 443,111 0.09 0.09
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