Astro-Med Reports Strong Orders of $25.4 Million in the Second Quarter of Fiscal 2016; Board of Directors Declares Regular Quarterly Cash Dividend
- Sales increase 7% to $23.9 million
- Net income of $1.2 million
- Backlog increases 36% from year-end to $16.4 million
- Company acquires RITEC’s ruggedized printer product line for civil and commercial aircraft
Astro-Med, Inc. (NASDAQ: ALOT), a leading manufacturer of data visualization technology for the specialty printing and test and measurement markets, today reported second-quarter fiscal 2016 sales of $23.9 million, a 7% increase year-on-year. Second-quarter net income was $1.2 million, or $0.16 per diluted share.
“Astro-Med posted a profitable second quarter highlighted by continued top-line growth, strong orders of $25.4 million and a healthy backlog,” said Gregory A. Woods, the Company’s President and Chief Executive Officer. “Sales in our domestic channel increased by 14% year-on-year in the second quarter. International sales were down 8% in the second quarter compared with the second quarter of fiscal 2015. Current year’s second-quarter international sales includes an unfavorable foreign exchange impact of $0.9 million. However, with our recent expansion into Asia and Latin America, and the broadening of our sales reach in Canada, we are expanding our market share and competitive positioning for international growth.”
“The QuickLabel Systems business continues to deliver double-digit growth in bookings and shipments, as our new color inkjet label printers and global marketing initiatives drive robust orders for labels, inks and other consumables,” Woods continued. “Demand is so strong, in fact, that for the first time in Astro-Med’s history we will soon be expanding to a third shift at our largest label manufacturing facility in West Warwick. This step will improve asset utilization and overall labor efficiency, helping to drive margin enhancement toward the end of this year.”
“We continue to manage costs carefully and allocate capital prudently, both in terms of infrastructure and strategic acquisitions, to support our growing business,” Woods said. “In June, we acquired RITEC Inc.’s ruggedized printer product line for civil and commercial aircraft. We expect the RITEC acquisition to further enhance our technology portfolio, expand our business relationships and enable us to accelerate the pace of growth in our aerospace markets.”
Gross profit for the second quarter of fiscal 2016 was $9.8 million, or 41.1% of sales, compared with $9.6 million, or 42.9% of sales, for the year-earlier period.
Net income for the second quarter of fiscal 2016 was $1.2 million, or $0.16 per diluted share, compared with $1.4 million, or $0.18 per diluted share, in the same period of fiscal 2015.
Cash and cash equivalents at August 1, 2015 were $18.3 million, compared with $23.1 million at year-end fiscal 2015. The change in the cash position reflected the June 2015 product line acquisition from RITEC Inc. for approximately $7.4 million in cash.
Second-Quarter Business Segment Highlights
- Sales of $17.1 million, up 12.1% from $15.3 million for the second quarter of fiscal 2015
- Segment operating profit of $2.7 million, or a record 15.9% of sales, compared with $2.2 million, or 14.7% of sales, for the second quarter of fiscal 2015
- New Kiaro! D label printer certified to BS5609 standard for maritime shipment of chemical goods as required by GHS labeling standards
Test & Measurement
- Sales of $6.8 million, down 3.8% from the second quarter of fiscal 2015, reflecting a shift in delivery timing requirements for certain aircraft manufacturers to later in the year for the Company’s ruggedized printer product line
- Segment operating profit of $0.9 million, or 13.1% of sales, compared with $1.4 million, or 19.1% of sales, for the comparable period of fiscal 2015
- Broadened product line with launch of new data acquisition system (Daxus) for distributed networking
- Received Apple AirPrint Certification for ToughWriter 5
Board of Directors Declares Regular Quarterly Dividend
On August 17, 2015, 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 on October 2, 2015, to shareholders of record as of the close of business on September 11, 2015.
“As we move into the second half of fiscal 2016, demand remains strong and we are optimistic about the outlook for our business,” Woods concluded. “Orders through the first six months of the fiscal year stand at a robust $51.5 million, 15.4% ahead of the prior year. The Company is generating positive cash flow and we are well positioned to achieve our key operational and financial objectives. Looking ahead, we expect to continue to strategically grow the business while making investments in new equipment and related infrastructure that will enable us to further optimize our processes and strengthen margins.”
Second-Quarter FY 2016 Conference Call
Astro-Med will conduct an investor conference call at 9:00 a.m. EDT today. Investors can participate in the conference call by dialing 877-876-9177 (U.S. and Canada) or 785-424-1666 (International) with passcode 136369. Please join the call at least five minutes prior to the start time. You can also hear a live webcast of the call by accessing the Investors section of Astro-Med’s website, www.Astro-MedInc.com.
Following the live broadcast, an audio webcast of the call will be available at www.Astro-MedInc.com. A telephone replay of the conference call will be available for seven days by dialing 888-348-4629 (U.S. and Canada) or 719-884-8882 (International) with passcode 136369.
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 of 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, 2015 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.
|Three Months Ended||Six Months Ended|
|August 1, 2015||August 2, 2014||August 1, 2015||August 2, 2014|
|Cost of Sales||14,092||12,777||27,268||24,915|
|Selling and Marketing||4,664||4,503||8,992||8,878|
|Research and Development||1,565||1,479||3,361||2,850|
|General and Administration||1,783||1,443||3,241||2,634|
|Other Income (Expense), Net||21||83||254||(38||)|
|Income Before Taxes||1,855||2,247||3,536||3,825|
|Income Tax Provision||687||812||1,158||1,261|
|Net Income per Common Share – Basic||$||0.16||
|Net Income per Common Share – Diluted||$||0.16||
|Weighted Avg Number of Common Shares – Basic||7,278||7,704||7,269||7,652|
|Weighted Avg Number of Common Shares – Diluted||7,469||7,916||7,459||7,883|
|Dividends Declared per Common Share||$||0.07||
|Selected Balance Sheet Data|
|As of||As of|
|August 1, 2015||January 31, 2015|
|Cash & Marketable Securities||$18,329||$23,132|
Source: Astro-Med, Inc.
Joseph P. O’Connell, 800-343-4039
Senior Vice President and Chief Financial Officer
Sharon Merrill Associates, Inc.
David Calusdian, 617-542-5300
Executive Vice President & Partner