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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
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EXCHANGE ACT OF 1934
For the quarterly period ended May 4, 1996
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OR
__ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-13200
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Astro-Med, Inc.
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(Exact name of registrant as specified in its charter)
Rhode Island 05-0318215
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
600 East Greenwich Avenue, West Warwick, Rhode Island 02893
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(Address of principal executive offices) (Zip Code)
(401) 828-4000
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(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 ___.
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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
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ASTRO-MED, INC.
INDEX
Page No.
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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
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Part I. FINANCIAL INFORMATION
ASTRO-MED, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
January 31, May 4,
ASSETS 1996 1996
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(Unaudited)
<S> <C> <C>
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
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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)
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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
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2,619,742 1,538,069
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$42,302,731 $41,960,296
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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
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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)
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35,981,306 35,756,046
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$42,302,731 $41,960,296
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</TABLE>
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ASTRO-MED, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
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April 29, May 4,
1995 1996
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<S> <C> <C>
Net Sales.................................... $10,955,296 $10,489,822
Cost of Sales................................ 6,712,270 6,531,526
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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
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4,053,697 3,957,186
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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
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274,724 533,001
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Income before Income Taxes................... 464,053 534,111
Provision for Income Taxes................... 122,000 91,000
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Net Income................................... $ 342,053 $ 443,111
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Earnings Per Common Share.................... $.07 $.09
==== ====
Weighted Average Number of Common and Common
Equivalent Shares Outstanding.............. 5,103,716 5,038,008
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Dividends Declared Per Common Share.......... $.03 $.03
==== ====
</TABLE>
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ASTRO-MED, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
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April 29, May 4,
1995 1996
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<S> <C> <C>
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
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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)
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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)
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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
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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
</TABLE>
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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:
<TABLE>
<CAPTION>
January 31, May 4,
1996 1996
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<S> <C> <C>
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
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$12,533,553 $12,705,386
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</TABLE>
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ASTRO-MED, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations:
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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:
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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.
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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:
<TABLE>
<CAPTION>
Name of Nominee Votes Votes
for Director For Withheld
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<S> <C> <C>
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
</TABLE>
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)
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-START> FEB-01-1996
<PERIOD-END> MAY-04-1996
<CASH> 4,822,326
<SECURITIES> 6,737,044
<RECEIVABLES> 6,647,746
<ALLOWANCES> 0
<INVENTORY> 12,705,386
<CURRENT-ASSETS> 32,328,225
<PP&E> 16,694,070
<DEPRECIATION> 8,600,068
<TOTAL-ASSETS> 41,960,296
<CURRENT-LIABILITIES> 4,512,037
<BONDS> 150,000
0
0
<COMMON> 256,334
<OTHER-SE> 35,499,712
<TOTAL-LIABILITY-AND-EQUITY> 41,960,296
<SALES> 10,489,822
<TOTAL-REVENUES> 10,489,822
<CGS> 6,531,526
<TOTAL-COSTS> 6,531,526
<OTHER-EXPENSES> 3,957,186
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,955
<INCOME-PRETAX> 534,111
<INCOME-TAX> 91,000
<INCOME-CONTINUING> 443,111
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 443,111
<EPS-PRIMARY> 0.09
<EPS-DILUTED> 0.09
</TABLE>
