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.
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| Three months ended August 31 |
| Years ended August 31 |
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Sales |
| $ | 26,688,000 |
| $ | 31,106,000 |
| $ | 111,140,000 |
| $ | 116,241,000 |
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Income before cumulative effect of a change in accounting principle |
| $ | 948,000 |
| $ | 1,705,000 |
| $ | 3,558,000 |
| $ | 3,929,000 |
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Diluted EPS before cumulative effect of a change in accounting principle |
| $ | .18 |
| $ | .33 |
| $ | .63 |
| $ | .76 |
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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)
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| August 31, 2002 |
| August 31, 2003 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 690,000 |
| $ | 380,000 |
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Accounts receivable |
| 17,594,000 |
| 15,729,000 |
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Inventories |
| 12,313,000 |
| 11,645,000 |
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Prepaid expenses and other |
| 3,181,000 |
| 2,710,000 |
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Total current assets |
| 33,778,000 |
| 30,464,000 |
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Property, plant and equipment, net |
| 26,820,000 |
| 26,112,000 |
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Other assets |
| 124,000 |
| 2,518,000 |
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Goodwill and other intangibles, net |
| 36,843,000 |
| 9,422,000 |
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Total assets |
| $ | 97,565,000 |
| $ | 68,516,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 6,410,000 |
| $ | 5,302,000 |
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Accrued liabilities |
| 6,001,000 |
| 5,015,000 |
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Current maturities of long-term debt |
| 5,066,000 |
| 3,896,000 |
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Total current liabilities |
| 17,477,000 |
| 14,213,000 |
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Long-term debt, net of current maturities |
| 19,845,000 |
| 16,219,000 |
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Other long-term liabilities |
| 4,658,000 |
| 2,601,000 |
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Total long-term liabilities |
| 24,503,000 |
| 18,820,000 |
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Mandatorily redeemable convertible preferred stock |
| 5,366,000 |
| 6,103,000 |
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Total stockholders’ equity |
| 50,219,000 |
| 29,380,000 |
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Total liabilities and stockholders’ equity |
| $ | 97,565,000 |
| $ | 68,516,000 |
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2
Summa Industries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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| Three months ended August 31 |
| Years ended August 31 |
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| 2002 |
| 2003 |
| 2002 |
| 2003 |
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Net sales |
| $ | 31,106,000 |
| $ | 26,688,000 |
| $ | 116,241,000 |
| $ | 111,140,000 |
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Cost of sales |
| 22,780,000 |
| 20,297,000 |
| 85,765,000 |
| 83,336,000 |
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Gross profit |
| 8,326,000 |
| 6,391,000 |
| 30,476,000 |
| 27,804,000 |
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Selling, general, administrative and other expenses |
| 5,878,000 |
| 4,654,000 |
| 22,634,000 |
| 21,005,000 |
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(Gain) on sale of facility |
| (723,000 | ) | — |
| (723,000 | ) | — |
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Operating income |
| 3,171,000 |
| 1,737,000 |
| 8,565,000 |
| 6,799,000 |
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Interest expense |
| 520,000 |
| 314,000 |
| 2,500,000 |
| 1,481,000 |
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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 |
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Provision for income taxes |
| 946,000 |
| 475,000 |
| 2,136,000 |
| 1,760,000 |
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Income before cumulative effect of a change in accounting principle |
| 1,705,000 |
| 948,000 |
| 3,929,000 |
| 3,558,000 |
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Cumulative effect of a change in accounting principle |
| — |
| — |
| — |
| (22,343,000 | ) | ||||
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Net income (loss) |
| $ | 1,705,000 |
| $ | 948,000 |
| $ | 3,929,000 |
| $ | (18,785,000 | ) |
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Preferred stock accretion |
| $ | 202,000 |
| $ | 184,000 |
| $ | 491,000 |
| $ | 737,000 |
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Net income (loss) available to common stockholders: |
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Before cumulative effect of a change in accounting Principle |
| $ | 1,503,000 |
| $ | 764,000 |
| $ | 3,438,000 |
| $ | 2,821,000 |
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After cumulative effect of a change in accounting Principle |
| $ | 1,503,000 |
| $ | 764,000 |
| $ | 3,438,000 |
| $ | (19,522,000 | ) |
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Earnings per common share before cumulative effect of a change in accounting principle |
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Basic |
| $ | .34 |
| $ | .18 |
| $ | .78 |
| $ | .65 |
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Diluted |
| $ | .33 |
| $ | .18 |
| $ | .76 |
| $ | .63 |
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Earnings (loss) per common share after cumulative Effect of a change in accounting principle |
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Basic |
| $ | .34 |
| $ | .18 |
| $ | .78 |
| $ | (4.48 | ) |
Diluted |
| $ | .33 |
| $ | .18 |
| $ | .76 |
| $ | (4.48 | ) |
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Weighted average common shares outstanding |
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Basic |
| 4,427,000 |
| 4,246,000 |
| 4,398,000 |
| 4,359,000 |
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Diluted |
| 4,545,000 |
| 4,308,000 |
| 4,512,000 |
| 4,449,000 |
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