Business Context and Reporting Period
Astro-Med, Inc. (Rhode Island) filed this Form 8-K on September 19, 2006, reporting the completion of a specific asset disposition. The registrant's principal executive offices are located in West Warwick, Rhode Island.
Key Financial Metrics
This filing reports a specific transaction rather than comprehensive financial statements. Key metrics related to the event include:
- Asset Sold: Approximately 24.692 acres of land located in Braintree, Massachusetts.
- Purchase Price: $6,100,000 paid in cash at closing.
- Purchaser: Hanover R.S. Limited Partnership (Texas).
- Proceeds Status: Net proceeds deposited with a qualified intermediary to facilitate a potential tax-free like-kind exchange under Section 1031 of the Internal Revenue Code.
The filing text does not provide clear values for overall revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
The material change reported is the finalization of the sale of the Braintree property, which was previously disclosed in a Form 8-K filed on June 17, 2005. The transaction resulted in the receipt of $6.1 million in cash proceeds, currently held in escrow pending a potential replacement property identification.
Outlook, Risks, and Contingencies
Like-Kind Exchange Contingency: The Company has until November 3, 2006, to identify a replacement property to effect a tax-free exchange. Failure to identify a replacement property by this date may result in the proceeds being recognized as taxable income.
Management Commentary: The filing contains no additional management commentary, guidance, or outlook beyond the mechanics of the asset sale and the tax exchange timeline.
Investor Verification Checklist
- Verify the Company's identification of a replacement property by the November 3, 2006 deadline to confirm tax treatment of the $6.1 million proceeds.
- Review the June 17, 2005 Form 8-K to understand the original terms and valuation of the Braintree property.
- Confirm the impact of this asset sale on the Company's consolidated balance sheet and cash position in the next quarterly or annual report.