Astro-Med profit drops 5.6% in 2Q

Posted 8/22/12

WEST WARWICK – Profits for Astro-Med Inc. dropped 5.6 percent to $987,000, or 13 cents per diluted share, during the second quarter of 2012, compared with $1.05 million, or 14 cents per diluted share, during the second quarter of 2011.

The West Warwick-based high tech manufacturer saw its net sales drop 3.8 percent to $19.6 million during the three months ended July 28 from $20.3 million during the same quarter in 2011.

In addition, Astro-Med attributed a sales loss of $459,000, or 2.3 percent, to unfavorable foreign currency exchange rates.

For the six months ended July 28, Astro-Med reported net income of $1.82 million, or 24 cents per diluted share, a 23 percent increase from $1.48 million, or 20 cents per diluted share, reported during the first six months of 2011.

Astro-Med’s second-quarter net income included a tax benefit of $285,000, or 4 cents per diluted share, due to the favorable resolution of a previously uncertain tax position, according to the company.

“Astro-Med achieved another solid performance during the second quarter of fiscal year 2013,” Astro-Med President and CEO Everett V. Pizzuti said in prepared remarks.

“Astro-Med’s financial position remains very strong as detailed on its balance sheet. Cash and marketable securities declined slightly to $22.5 million, our working capital assets of accounts receivable and inventories declined by less than 2 percent from the year-end levels and reflect turnover rates of 50 days sales outstanding and 112 days of inventory on hand,” added Pizzuti.

The company also declared a regular quarterly cash dividend of 7 cents per share, payable on Oct. 4 to shareholders of record as of Sept. 14.

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You missed an important element of our news release. Last year's numbers include revenues from a company that we have since divested. If you factor out the sales attributable to that divestiture (about $1 million), you will see that revenues did not drop and earnings were better. I quote from the News Release we issued as follows:

We are also pleased with the Company's margin improvement during the Quarter. Our Gross Profit Margin rose 350 basis points over the prior year's Second Quarter Gross Profit Margin to 42.4%, while our Operating Margin rose 260 basis points from the previous year's Second Quarter Operating Margin to 8.6%. The improved Operating Margin is reflected in the Company's Operating Income of $1,678,000 in the Second Quarter, a 37.2% increase from the Operating Income reported in the prior year's Second Quarter.

Thank you,

Everett V. Pizzuti

President and CEO

Astro-Med, Inc.

Wednesday, August 22, 2012 | Report this
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