Exhibit 99.1
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
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 statements contained herein relating to Astro-Med, Inc. or its products or markets are forward-looking, such statements are based on management’s assumptions and/or current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, those outlined in our Form 10K and other public filings, which we make from time to time with the Securities and Exchange Commission.
Meet Astro-Med, Inc
How one underlying digital technology has led to the creation of three product groups which serve three growing markets
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 single Engineering, Manufacturing, and Administrative workforce, Astro-Med achieves great efficiencies, while successfully addressing three separate and growing markets
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 consumables annuities in multiple growth markets
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 consumables
Astro-Med Test & Measurement
Primary Products: Specialty printers, digital data acquisition systems, and consumables
Meet Astro-Med’s QuickLabel Systems Product Group
QuickLabel Systems
Product Group
Full Line of Label Printers and Consumables
Markets
Requiring custom product labels on-demand
Food and Beverage
Cosmetics and Personal Care Nutraceuticals and Pharmaceuticals Advertising Specialties Biomedical Devices Apparel Tire Manufacturing
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 product packaging creates demand for custom short runs
Growing demand, especially in foods, biomedical, pharmaceutical, to be 100% accurate creates need to print labels late in the production stage
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 technology by steadfast development. Products keep getting better and easier to use.
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
QuickLabel Outlook
Current Annual Revenue Rate: $30 million
Annual Growth Rate: 11%—15%
Meet Astro-Med’s Grass-Telefactor Product Group
Neurological Instrument Systems and Consumables
For Life Sciences Markets
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 proprietary Astro-Med digital technology
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 large Research Hospitals
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-Telefactor has several very advanced products in development due to be released sequentially during 2005
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.
2) Grass-Telefactor will continue to benefit from tests for neurological disorders required by an aging population
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.
Neurological Instrument Systems & Consumables
Outlook for Grass-Telefactor:
5%—7% Growth
Meet Astro-Med’s
Test & Measurement Product Group
Astro-Med Test & Measurement Product Group
Digital Data Acquisition Systems & Consumables Specialty Printer Systems & Consumables
Test & Measurement Product Group
Product Overview:
Specialty Printers and Consumables
Digital Data Acquisition Systems and Consumables
Test & Measurement Products for New Airborne Applications
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
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
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 planes will likely be retrofitted with cockpit printers, as was the case with the C-130 for which Astro-Med T&M has the printer contract
The size of the fleets to be retrofitted is 10,000 – 15,000 aircraft
The value of retrofitting contracts is likely to be $300 million, at low end estimates
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. Opportunity for new contracts for Boeing 7E7 in early summer 2005. Other contracts may follow in summer and fall of 2005.
Test & Measurement Products for Ground-Based Aerospace Applications
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
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
Test & Measurement Products for Industrial Applications
Data Acquisition Systems
Dash Series Portable Data Acquisition Systems
Dash 18 X
Price $15,000
Dash 8xe
Price $12,000
Dash 2EZ
Price $3,000
Applications:
Troubleshooting in several industries: steel mills, paper mills, automotive, telecommunications
Customers:
GE, 3M, Disney, ExxonMobil Chemical, Florida Power & Light, International Paper, Toyota, US Navy
Outlook: Moderate Growth
Financials
Astro-Med, Inc
Operating Results
($ 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) Diluted per share and restated to reflect 10% stock dividend (2) Includes tax benefit of $.9 or $0.17 EPS
*Forecast FY2005
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%—$28.4 Million
*Forecast FY2005
Growth by Product Group
($ 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
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
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
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
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
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 Distribution
Thank You ALOT !