EXHIBIT 99.1
NEWS RELEASE
October 8, 2003
Torrance, California
Summa Industries Announces 4th Quarter and Year-end Results
Summa Industries (NNM:SUMX) reports earnings of $948,000, or $.18 per common share, on sales of $26,688,000 for the three months ended August 31, 2003, versus earnings of $1,705,000, or $.33 per common share, on sales of $31,106,000 for the three months ended August 31, 2002.
Sales declined 14% from the prior year 4th quarter primarily due to reduced sales of the Company’s lighting products, which are used in non-residential construction. In the quarter ended August 31, 2002, the reported EPS of $.33 included a benefit of $.10 per share from the sale of a facility and was after a $.05 per share charge for goodwill amortization, which was discontinued at the beginning of fiscal 2003.
| | Three months ended August 31 | | Years ended August 31 | |
| | 2003 | | 2002 | | 2003 | | 2002 | |
Sales | | $ | 26,688,000 | | $ | 31,106,000 | | $ | 111,140,000 | | $ | 116,241,000 | |
Income before cumulative effect of a change in accounting principle | | $ | 948,000 | | $ | 1,705,000 | | $ | 3,558,000 | | $ | 3,929,000 | |
Diluted EPS before cumulative effect of a change in accounting principle | | $ | .18 | | $ | .33 | | $ | .63 | | $ | .76 | |
The Company’s earnings conference call will be held at 6:30 a.m. Pacific Time, October 8, 2003. The call in number is
800-915-4836.
The call will also be simulcast and archived by www.vcall.com.
Summa Industries manufactures proprietary plastic components for industrial and commercial markets.
For further information, contact James R. Swartwout, (310) 792-7024; Fax (310) 792-7079; jim@summaindustries.com or visit www.summaindustries.com.
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Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| | August 31, 2002 | | August 31, 2003 | |
ASSETS | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 690,000 | | $ | 380,000 | |
Accounts receivable | | 17,594,000 | | 15,729,000 | |
Inventories | | 12,313,000 | | 11,645,000 | |
Prepaid expenses and other | | 3,181,000 | | 2,710,000 | |
| | | | | |
Total current assets | | 33,778,000 | | 30,464,000 | |
Property, plant and equipment, net | | 26,820,000 | | 26,112,000 | |
Other assets | | 124,000 | | 2,518,000 | |
Goodwill and other intangibles, net | | 36,843,000 | | 9,422,000 | |
| | | | | |
Total assets | | $ | 97,565,000 | | $ | 68,516,000 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
| | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 6,410,000 | | $ | 5,302,000 | |
Accrued liabilities | | 6,001,000 | | 5,015,000 | |
Current maturities of long-term debt | | 5,066,000 | | 3,896,000 | |
| | | | | |
Total current liabilities | | 17,477,000 | | 14,213,000 | |
| | | | | |
Long-term debt, net of current maturities | | 19,845,000 | | 16,219,000 | |
Other long-term liabilities | | 4,658,000 | | 2,601,000 | |
| | | | | |
Total long-term liabilities | | 24,503,000 | | 18,820,000 | |
| | | | | |
Mandatorily redeemable convertible preferred stock | | 5,366,000 | | 6,103,000 | |
| | | | | |
Total stockholders’ equity | | 50,219,000 | | 29,380,000 | |
| | | | | |
Total liabilities and stockholders’ equity | | $ | 97,565,000 | | $ | 68,516,000 | |
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Summa Industries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| | Three months ended August 31 | | Years ended August 31 | |
| | 2002 | | 2003 | | 2002 | | 2003 | |
| | | | | | | | | |
Net sales | | $ | 31,106,000 | | $ | 26,688,000 | | $ | 116,241,000 | | $ | 111,140,000 | |
Cost of sales | | 22,780,000 | | 20,297,000 | | 85,765,000 | | 83,336,000 | |
| | | | | | | | | |
Gross profit | | 8,326,000 | | 6,391,000 | | 30,476,000 | | 27,804,000 | |
Selling, general, administrative and other expenses | | 5,878,000 | | 4,654,000 | | 22,634,000 | | 21,005,000 | |
(Gain) on sale of facility | | (723,000 | ) | — | | (723,000 | ) | — | |
| | | | | | | | | |
Operating income | | 3,171,000 | | 1,737,000 | | 8,565,000 | | 6,799,000 | |
Interest expense | | 520,000 | | 314,000 | | 2,500,000 | | 1,481,000 | |
| | | | | | | | | |
Income before income taxes and cumulative effect of a Change in accounting principle | | 2,651,000 | | 1,423,000 | | 6,065,000 | | 5,318,000 | |
Provision for income taxes | | 946,000 | | 475,000 | | 2,136,000 | | 1,760,000 | |
| | | | | | | | | |
Income before cumulative effect of a change in accounting principle | | 1,705,000 | | 948,000 | | 3,929,000 | | 3,558,000 | |
Cumulative effect of a change in accounting principle | | — | | — | | — | | (22,343,000 | ) |
| | | | | | | | | |
Net income (loss) | | $ | 1,705,000 | | $ | 948,000 | | $ | 3,929,000 | | $ | (18,785,000 | ) |
| | | | | | | | | |
Preferred stock accretion | | $ | 202,000 | | $ | 184,000 | | $ | 491,000 | | $ | 737,000 | |
| | | | | | | | | |
Net income (loss) available to common stockholders: | | | | | | | | | |
Before cumulative effect of a change in accounting Principle | | $ | 1,503,000 | | $ | 764,000 | | $ | 3,438,000 | | $ | 2,821,000 | |
After cumulative effect of a change in accounting Principle | | $ | 1,503,000 | | $ | 764,000 | | $ | 3,438,000 | | $ | (19,522,000 | ) |
| | | | | | | | | |
Earnings per common share before cumulative effect of a change in accounting principle | | | | | | | | | |
Basic | | $ | .34 | | $ | .18 | | $ | .78 | | $ | .65 | |
Diluted | | $ | .33 | | $ | .18 | | $ | .76 | | $ | .63 | |
| | | | | | | | | |
Earnings (loss) per common share after cumulative Effect of a change in accounting principle | | | | | | | | | |
Basic | | $ | .34 | | $ | .18 | | $ | .78 | | $ | (4.48 | ) |
Diluted | | $ | .33 | | $ | .18 | | $ | .76 | | $ | (4.48 | ) |
| | | | | | | | | |
Weighted average common shares outstanding | | | | | | | | | |
Basic | | 4,427,000 | | 4,246,000 | | 4,398,000 | | 4,359,000 | |
Diluted | | 4,545,000 | | 4,308,000 | | 4,512,000 | | 4,449,000 | |
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