UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
DATE OF REPORT
(DATE OF EARLIEST EVENT REPORTED)
November 14, 2006

ASTRO-MED, INC
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

COMMISSION FILE NUMBER                 0-13200
 
 	RHODE ISLAND	05-0318215	
 	(STATE OR OTHER JURISDICTION OF	(IRS EMPLOYER IDENTIFICATION	
 	INCORPORATION OR ORGANIZATION)	NUMBER)	
 
600 EAST GREENWICH AVENUE, WEST WARWICK, RI 02893
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
(401-828-4000)
(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 14, 2006, Astro-Med, Inc. (the “Company”) issued a press release in which it disclosed unaudited financial information related to third quarter consolidated earnings. A copy of the press release relating to such announcement, dated November 14, 2006, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c)	Exhibit	
Exhibit no.	Exhibit	
99.1	Press Release dated November 14, 2006	
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
 
DATE: November 14, 2006	ASTRO-MED, INC.	
 
 	By:	/s/ Joseph P. O’Connell	
 	______________________________	
 	Joseph P. O’Connell	
Vice President, Treasurer and Chief Financial Officer

INDEX TO EXHIBITS
 	Exhibit No .	Exhibit	
 	99.1	Press Release Dated November 14, 2006	

 

Exhibit 99.1
 
PRESS RELEASE

600 East Greenwich Avenue
West Warwick, Rhode Island 02893
 
For Immediate Release
 
Contact:	Albert W. Ondis	November 14, 2006	
 	Joseph P. O’Connell	
 	Astro-Med, Inc.	
 	(401) 828-4000	
 	www.astro-medinc.com	
 
Astro-Med Reports Record Third Quarter Earnings;
Directors Declare Regular Cash Dividend
 
West Warwick, RI, November 14, 2006 -- Astro-Med, Inc. (NASDAQ:ALOT) reports net income of $3,977,000, equal to 53 cents per diluted share, on sales of $16,043,000 for the Third Quarter ended October 28, 2006. Net income in the quarter includes a gain of $3,125,000 after taxes and related costs, equal to 42 cents per diluted share on the sale of the Company’s excess real estate. Excluding the real estate related gain, net income in the Third Quarter was $852,000, equal to 11 cents per diluted share. Net income in the quarter includes an expense of approximately $93,000, after tax, equal to 1 cent per diluted share for stock-based compensation as well as a tax benefit of $231,000, or 3 cents per diluted share due to favorable adjustments identified in the filing of the prior year tax return.
 
During the corresponding period of the previous year, the Company reported net income of $674,000, equal to 9 cents per diluted share, on sales of $14,455,000. Net income in the prior year fiscal quarter includes $361,000, equal to 5 cents per diluted share, for a tax-related benefit due to the favorable resolution of certain income tax examinations.
 
For the nine-month period of the current fiscal year, net income was $5,260,000 equal to 71 cents per diluted share, on sales of $47,951,000. Excluding the real estate related gain, earnings were $2,135,000, equal to 29 cents per diluted share. Net income for the nine-month period includes an expense of approximately $266,000, after tax, equal to 4 cents per share, for stock-based compensation as well as $231,000, or 3 cents per diluted share, related to favorable adjustments noted above.
 
For the corresponding period of the prior year, the Company reported net income of $1,694,000, equal to 23 cents per diluted share, on sales of $43,297,000. Net income in the prior year includes $361,000, equal to 5 cents per diluted share, for a tax related benefit due to the favorable resolution of certain income tax examinations.
 
Commenting on the results, Albert W. Ondis, Chief Executive Officer stated: “The Company continued its positive and upward performance during the Third Quarter. New Bookings of $16,008,000 were up 12% over the previous year with strong customer demand evident for all products. Sales reached double digit growth in the quarter with

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Revenues at $16,043,000, rising 11% over the prior year. Our backlog remains healthy at $7,666,000, a 38% increase from year end. During the Third Quarter we successfully concluded the profitable sale of our excess real estate, relocated our Grass Technologies operation to a more appropriate lower cost facility, and consequently added $5.2 million to our cash balances. Operating Income excluding the gain related to the sale of the real estate in the Third Quarter was $628,000, a 31% improvement over the same quarter of the previous year and we achieved a record Quarterly Net Income of $3,977,000 equal to 53 cents per diluted share. Our Balance Sheet remains strong, bolstered by an improvement in our Accounts Receivable Days Sales Outstanding, and we maintain a healthy liquidity ratio of 4:07 to 1. All signs continue to point upwards and we remain optimistic about the Company’s prospects for the balance of the current fiscal year.”
 
On November 13, 2006, the Directors of Astro-Med declared the regular quarterly cash dividend of 5 cents per share payable on January 2, 2007 to shareholders of record on December 8, 2006.
 
The Third Quarter conference call will be held today, Tuesday, November 14, 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 in on November 14th, 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
(Unaudited)
 
 	Three-Months Ended	 	Nine-Months Ended	 	
 	October 28, 2006	 	October 29, 2005	 	October 28, 2006	 	October 29, 2005	 	
Net Sales	$16,043	 	$14,455	 	$47,951	 	$43,297	 	
 	 	 	 	 	 	 	 	 	
Gross Profit	6,427	 	5,784	 	19,699	 	17,803	 	
 	40.1%	 	40.0%	 	41.1%	 	41.1%	 	
Operating Expenses:	 	 	 	 	 	 	 	 	
Selling, General & Administrative	4,819	 	4,317	 	14,365	 	12,971	 	
Research & Development	980	 	987	 	2,977	 	2,932	 	
 	5,799	 	5,304	 	17,342	 	15,903	 	
 	 	 	 	 	 	 	 	 	
Gain on Sale of Real Estate, Net	5,252	 	-	 	5,252	 	-	 	
 	 	 	 	 	 	 	 	 	
Operating Income	5,880	 	480	 	7,609	 	1,900	 	
 	36.6%	 	3.3%	 	15.9%	 	4.4%	 	
 	 	 	 	 	 	 	 	 	
Other Income, Net	348	 	17	 	689	 	216	 	
 	 	 	 	 	 	 	 	 	
Income Before Taxes	6,228	 	497	 	8,298	 	2,116	 	
 	 	 	 	 	 	 	 	 	
Income Tax Benefit (Provision)	(2,251)	 	177	 	(3,038)	 	(422)	 	
 	 	 	 	 	 	 	 	 	
Net Income	$3,977	 	$ 674	 	$5,260	 	$ 1,694	 	
 	 	 	 	 	 	 	 	 	
Net Income Per Share - Basic	$ 0.59	 	$ 0.10	 	$0.78	 	$ 0.25	 	

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Net Income Per Share - Diluted	$ 0.53	 	$ 0.09	 	$0.71	 	$ 0.23	 	
 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	 
6,693	 	 
6,619	 	 
6,712	 	 
6,603	 	
Weighted Average Number of Common Shares - Diluted	 
7,439	 	 
7,334	 	 
7,379	 	 
7,212	 	
 	 	 	 	 	 	 	 	 	
Dividends Declared Per Common Share	 
$ 0.05	 	 
$ 0.03	 	 
$0.15	 	 
$ 0.10	 	

Selected Balance Sheet Data
In Thousands Except for Per Share Data
(Unaudited)

 	As of
October 28, 2006
 	As of
January 31,  
2006	
Cash & Marketable Securities	$21,367	$14,724	
 	 	 	
Current Assets	47,166	39,662	
 	 	 	
Total Assets	57,286	49,647	
 	 	 	
Current Liabilities	11,456	8,440	
 	 	 	
Shareholders’ Equity	$44,889	$40,302	
 
Reconciliation of Non-Gap Financial Information
 
In an effort to provide investors information regarding the Company’s results, the Company disclosed certain Non-GAAP information which management believes provides useful information to the investor.
 
A reconciliation of net income and net income per diluted share as reported under GAAP to the pro forma net income and pro forma net income per diluted share excluding the gain related to the sale of certain real estate for the three-months and nine-months ended October 28, 2006 are as follows:
 
 	 	Real Estate	 	
Three-Months	GAAP Basis	Transaction	Pro Forma Basis	
Operating Income	$5,880	$5,252	$628	
Other Income, Net	348	-	348	
Income Tax Provision	(2,251)	(2,127)	(124)	
Net Income
 	$3,977	$3,125	$852	
Net Income Per Share - Diluted	$0.53	$0.42	$0.11	

 	 	Real Estate	 	
Nine-Months	GAAP Basis	Transaction	Pro Forma Basis	
Operating Income	$7,609	$5,252	$2,357	
Other Income, Net	689	-	689	
Income Tax Provision	(3,038)	(2,127)	(911)	
Net Income
 	$5,260	$3,125	$2,135	
Net Income Per Share - Diluted	$0.71	$0.42	$0.29	

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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 FY2006 annual report and its annual and quarterly filings with the Securities and Exchange Commission.