Astronova, Inc. · NASDAQ:ALOT
Astronova — Astro Med Inc /New/ — Seventh Annual Needham Growth Conference 2005
45 slides from Astronova's conference presentation, Jan 13, 2005
Slide 1: Astro-Med, Inc Presentation to Seventh Annual Needham Growth Conference
Astro-Med, Inc Presentation to The Seventh Annual Needham Growth Conference January 10-14, 2005 Participating: Albert W. Ondis, Astro-Med Chairman & CEO Everett V. Pizzuti, Astro-Med President & COO Joseph P. O’Connell, Astro-Med Vice President & CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. To the extent that any of the state
Slide 3: Meet Astro-Med, Inc
Meet Astro-Med, Inc How one underlying digital technology has led to the creation of three product groups which serve three growing markets
Slide 4: Three Product Groups, Three Markets, One Technology
Three Product Groups, Three Markets, One Technology Astro-Med has adapted its proprietary technology to fulfill the needs of three separate and growing markets using the Product Group Concept The products are all derived from one unique underlying technology and manufactured in one location With a s
Slide 5: The Product Group Concept
The Product Group Concept Core Astro-Med Technology: Acquiring, processing, and printing data digitally Strategy: Apply core technology to disparate applications using three separate brand names and three distinct sales and marketing staffs End Game: Sell proprietary hardware which generate consumab
Slide 6: An Overview of the Astro-Med Product Groups
An Overview of the Astro-Med Product Groups Products from three separate markets are clustered in separate Product Groups for marketing purposes: QuickLabel Systems Primary Products: Digital color label printers and consumables Grass-Telefactor Primary Products: Neurological instrument systems and c
Slide 7: Meet Astro-Med's QuickLabel Systems Product Group
Meet Astro-Med’s QuickLabel Systems Product Group
Slide 8: QuickLabel Systems Product Group
QuickLabel Systems Product Group Full Line of Label Printers and Consumables
Slide 9: Markets
Markets Requiring custom product labels on-demand Food and Beverage Cosmetics and Personal Care Nutraceuticals and Pharmaceuticals Advertising Specialties Biomedical Devices Apparel Tire Manufacturing
Slide 10: Customers Buy Label Printers to Get The Labels They Want
Customers Buy Label Printers to Get The Labels They Want When They Need Them Drivers for Growth: Growing need for short runs to customize and private label products. Customized labels create higher profit margin opportunities in food, beverage, personal care markets Growing trend to test market prod
Slide 11: Slide 11
Slide 12: About QuickLabel Systems
About QuickLabel Systems QuickLabel created the market for the low cost digital color label printer QuickLabel has the best technology and is the market leader by far QuickLabel maintains a high percentage of retention of consumables business from printer sales QuickLabel continues to advance the te
Slide 13: Growth Drivers for QuickLabel Systems
Growth Drivers for QuickLabel Systems: Market for color label printers still in its early growth stage Potential buyers include thousands of end-user manufacturers and processors, as well as resellers and dealers located around the world
Slide 14: QuickLabel Outlook
QuickLabel Outlook Current Annual Revenue Rate: $30 million Annual Growth Rate: 11%—15%
Slide 15: Meet Astro-Med's Grass-Telefactor Product Group
Meet Astro-Med’s Grass-Telefactor Product Group
Slide 16: Neurological Instrument Systems and Consumables
Neurological Instrument Systems and Consumables For Life Sciences Markets
Slide 17: Neurological Instrument Systems: Brand History
Neurological Instrument Systems & Consumables Brand History: Grass-Telefactor is the oldest and most respected name in the industry … since 1935 Astro-Med acquired two old and respected, complementary companies, merged them to form Grass-Telefactor, and upgraded the resulting company with proprietar
Slide 18: Three Market Modalities
Neurological Instrument Systems & Consumables Three Market Modalities: 1) Sleep (PSG): Rapidly growing as attention is focused on treatment of sleep apnea 2) EEG: Expected to grow rapidly due to growth in neuromonitoring of Critical Care 3) Long-Term Epilepsy Monitoring: Sales are exclusively to lar
Slide 19: The Opportunity for Grass-Telefactor
Neurological Instrument Systems & Consumables The Opportunity for Grass-Telefactor Grass-Telefactor instrument hardware and software systems are state-of-the-art Grass-Telefactor has an experienced sales force in place in North America and Europe and is currently expanding its sales force Grass-Tele
Slide 20: The Opportunity for Grass-Telefactor
Neurological Instrument Systems & Consumables The Opportunity for Grass-Telefactor 1) Grass-Telefactor stands to benefit from the growing acceptance that critically ill patients should be monitored continuously with EEG just as they are monitored with EKG. This will become a major driver of growth.
Slide 21: The Opportunity for Grass-Telefactor
Neurological Instrument Systems & Consumables The Opportunity for Grass-Telefactor 3) Grass-Telefactor will continue to benefit from the growing trend of neurologists and pulmonologists to order PSG tests on patients with sleep disorders, especially for obese people.
Slide 22: Outlook for Grass-Telefactor
Neurological Instrument Systems & Consumables Outlook for Grass-Telefactor: 5%—7% Growth
Slide 23: Meet Astro-Med's Test & Measurement Product Group
Meet Astro-Med’s Test & Measurement Product Group
Slide 24: Astro-Med Test & Measurement Product Group
Astro-Med Test & Measurement Product Group Digital Data Acquisition Systems & Consumables Specialty Printer Systems & Consumables
Slide 25: Test & Measurement Product Overview
Test & Measurement Product Group Product Overview: Specialty Printers and Consumables Digital Data Acquisition Systems and Consumables
Slide 26: Test & Measurement Products for New Airborne Applications
Test & Measurement Products for New Airborne Applications
Slide 27: Specialty Printer and Consumables: ToughWriter Series
Specialty Printer and Consumables ToughWriter Series Price $15,000 Aircraft and Cockpit Printer Applications: Print maps, print communications with Air Traffic Control Print passenger information in cabin Customers: Airbus, Boeing
Slide 28: Current Contracts for Aircraft and Cockpit Printers
Specialty Printer and Consumables Current Contracts for Aircraft and Cockpit Printers Astro-Med has three contracts at present: 1) C-17 Military Cargo – Boeing 2) C-130 Military Cargo – Boeing 3) A-380 New Passenger Plane – Airbus
Slide 29: The Opportunity for Aircraft and Cockpit Printers
Specialty Printer and Consumables The Opportunity for Aircraft and Cockpit Printers 1) All new passenger and cargo aircraft such as the Boeing 7E7, Airbus A380, and A350, will be equipped with multiple printers, at a minimum of two printers per craft. 2) Existing fleets of military and commercial pl
Slide 30: The Opportunity for Aircraft and Cockpit Printers
Specialty Printer and Consumables The Opportunity for Aircraft and Cockpit Printers 3) Of three contenders for the retrofitting contracts, Astro-Med Test & Measurement is the only manufacturer with a fully-tested printer in production Outlook: Excellent growth in 2005 based on existing contracts. Op
Slide 31: Test & Measurement Products for Ground-Based Aerospace Applications
Test & Measurement Products for Ground-Based Aerospace Applications
Slide 32: Data Acquisition Systems and Consumables: The Everest
Data Acquisition Systems and Consumables The Everest Price $20,000—$30,000 Data Acquisition Network Printer Applications: Monitor, acquire data telemetered from aircraft, spacecraft, missiles, and flight simulators under test
Slide 33: Data Acquisition Network Printer Customers
Data Acquisition Systems and Consumables The Everest Price $20,000—$30,000 Data Acquisition Network Printer Customers: Airbus, Boeing, US Air Force, US Navy, US Army, NASA, Lockheed, French Army, Italian Air Force, multiple European and Asian armed forces Outlook: Low Growth
Slide 34: Test & Measurement Products for Industrial Applications
Test & Measurement Products for Industrial Applications
Slide 35: Dash Series Portable Data Acquisition Systems
Data Acquisition Systems Dash Series Portable Data Acquisition Systems Dash 18 X Price $15,000 Dash 8xe Price $12,000 Dash 2EZ Price $3,000 Applications: Troubleshooting in several industries: steel mills, paper mills, automotive, telecommunications Customers: GE, 3M, Disney, ExxonMobil Chemical, Fl
Slide 36: Financials Astro-Med, Inc
Financials Astro-Med, Inc
Slide 37: Operating Results
Operating Results ($ in Millions) FY 2003 FY 2004 FY 2005* Sales $49.2 $55.8 $ 56.2 Gross Profit 18.1 23.0 22.9% 36.8% 41.2% 40.7% Operating Income (Loss) (1.4) 3.6 2.5% N/A 6.5% 4.4% EBITDA 0.3 4.9 3.8 Net Income (Loss) (1.9) 3.2 2.7(2)% N/A 5.8% 4.8% EPS (LPS)(1) ($.40) $ 0.60 $ 0.47(2) (1) Dilute
Slide 38: Sales by Product Group
Sales by Product Group YE January 31* Test & Measurement 20%—$11.4 Million Total Sales: $56.2 Million Grass-Telefactor 29%—$16.4 Million QuickLabel Systems 51%—$28.4 Million *Forecast FY2005
Slide 39: Growth by Product Group
Growth by Product Group ($ in Millions) YE January 31 Projected FY03 FY04 FY05* Growth Rates QuickLabel Systems $21.6 $25.3 $ 28.4 11-15% Grass-Telefactor $15.7 $18.9 $ 16.4 5-7% Test & Measurement $11.9 $11.6 $ 11.4 3-5% Totals $49.2 $55.8 $ 56.2 11% *Forecast FY2005
Slide 40: Balance Sheet
Balance Sheet ($ in Millions) A/O 10/30/04 Cash Equivalents and Marketable Securities $13.6 Working Capital (excluding cash, cash equivalents, and marketable securities) $15.7 Total Assets $46.8 Total Debt, including current portion -$0- Total Stockholders’ Equity $38.3
Slide 41: Investment Considerations
Investment Considerations (NASDAQ: ALOT) Total Shares Outstanding 5,282,000 Market Capitalization $47 Million 52 Week Range $7.50—$14.84 Management Insider Ownership 33% Institutional Ownership 19% Dividend Paid 52 Consecutive Quarters Years of Profitable Operations 25/27 Years A/O 1/03/05
Slide 42: Investment Considerations
Investment Considerations (NASDAQ: ALOT) Dividend Yield 1.9% P/E Ratio* 16x P/B Ratio* 1.2 Book Value per Share** $7.19 Cash per Share** $2.64 *A/O 01/03/05 **A/O 10/30/04
Slide 43: Stock Performance
Stock Performance 3-Year Monthly Comparison As of 12/31/04 Alot Monthly Alot Nasdaq 12/31/04 +400% +350% +300% +250% +200% +150% +100% +50% +0% -50% Volume ©BigCharts.com 1.5 1 0.5 0 Millions 02 F M A M J J A S O N D 03 F M A M J J A S O N D 04 F M A M J J A S O N D
Slide 44: Investment Considerations
Investment Considerations (NASDAQ: ALOT) Positioned for Growth & Profitability Proprietary Technology Strong Capital Structure Multiple Million-Dollar Markets growing at up to 15% annually New Products Pipeline to support growth Experienced Management with a proven track record Established Global Di
Slide 45: Thank You
Financial Highlights ie, Thank You ALOT !
Astro Med Inc /New/ — Seventh Annual Needham Growth Conference 2005 on 6ix