EXHIBIT 99.1
NEWS RELEASE
December 23, 2003
Torrance, California
Summa Reports 1st Quarter Earnings
Summa Industries (Nasdaq NM:SUMX) reports net income of $830,000, or $.15 per share, on sales of $25,926,000 for the three months ended November 30, 2003, versus income before cumulative effect of a change in accounting principle of $1,155,000, or $.21 per share, on sales of $28,548,000 for the three months ended November 30, 2002.
Sales were lower primarily due to reduced demand for lighting components used in commercial and industrial buildings. Earnings were lower due to lower sales and inefficiencies related to a facility consolidation.
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| Three months ended November 30 |
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| 2003 |
| 2002 |
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Sales |
| $ | 25,926,000 |
| $ | 28,548,000 |
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Income before cumulative effect of a change in accounting principle |
| $ | 830,000 |
| $ | 1,155,000 |
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Diluted earnings per share before cumulative effect of a change in accounting principle |
| $ | .15 |
| $ | .21 |
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A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Tuesday,
December 23. The call-in number is (800) 915-4836. The conference call will also be simulcast and archived by www.vcall.com.
Summa Industries manufactures proprietary engineered plastic products for a broad spectrum of industrial and commercial markets. The Company has manufacturing facilities across North America. Products, many of which are unique or patented, are shipped to customers worldwide.
For further information, contact Jim Swartwout, (310) 792-7024; Fax (310) 792-7079; www.summaindustries.com; or ir@summaindustries.com.
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Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
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| November 30, 2002 |
| August 31, 2003 |
| November 30, 2003 |
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ASSETS |
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Current assets: |
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Cash |
| $ | 1,170,000 |
| $ | 380,000 |
| $ | 297,000 |
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Accounts receivable |
| 16,825,000 |
| 15,729,000 |
| 15,681,000 |
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Inventories |
| 12,178,000 |
| 11,645,000 |
| 13,198,000 |
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Prepaid expenses and other |
| 3,352,000 |
| 2,710,000 |
| 3,060,000 |
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Total current assets |
| 33,525,000 |
| 30,464,000 |
| 32,236,000 |
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Property, plant and equipment, net |
| 26,645,000 |
| 26,112,000 |
| 25,624,000 |
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Goodwill and other assets, net |
| 12,524,000 |
| 11,940,000 |
| 11,879,000 |
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Total assets |
| $ | 72,694,000 |
| $ | 68,516,000 |
| $ | 69,739,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 5,264,000 |
| $ | 5,302,000 |
| $ | 6,149,000 |
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Accrued liabilities |
| 5,043,000 |
| 5,015,000 |
| 4,504,000 |
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Current maturities of long-term debt |
| 5,062,000 |
| 3,896,000 |
| 3,448,000 |
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Total current liabilities |
| 15,369,000 |
| 14,213,000 |
| 14,101,000 |
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Long-term debt, net of current maturities |
| 19,641,000 |
| 16,219,000 |
| 16,247,000 |
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Other long-term liabilities |
| 2,641,000 |
| 2,601,000 |
| 2,594,000 |
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Manditorily redeemable preferred stock |
| 5,551,000 |
| 6,103,000 |
| 6,287,000 |
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Total stockholders’ equity |
| 29,492,000 |
| 29,380,000 |
| 30,510,000 |
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Total |
| $ | 72,694,000 |
| $ | 68,516,000 |
| $ | 69,739,000 |
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Summa Industries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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| Three months ended November 30 |
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| 2002 |
| 2003 |
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Net sales |
| $ | 28,548,000 |
| $ | 25,926,000 |
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Cost of sales |
| 21,124,000 |
| 19,555,000 |
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Gross profit |
| 7,424,000 |
| 6,371,000 |
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Selling, general, administrative and other expenses |
| 5,265,000 |
| 4,820,000 |
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Operating income |
| 2,159,000 |
| 1,551,000 |
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Interest expense |
| 405,000 |
| 305,000 |
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Income before income taxes and cumulative effect of a change in accounting principle |
| 1,754,000 |
| 1,246,000 |
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Provision for income taxes |
| 599,000 |
| 416,000 |
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Income before cumulative effect of a change in accounting principle |
| 1,155,000 |
| 830,000 |
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Cumulative effect of a change in accounting principle |
| (22,343,000 | ) | — |
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Net income (loss) |
| $ | (21,188,000 | ) | $ | 830,000 |
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Preferred stock accretion |
| $ | 184,000 |
| $ | 184,000 |
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Net income (loss) available to stockholders: |
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before cumulative effect of a change in accounting principle |
| $ | 971,000 |
| $ | 646,000 |
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after cumulative effect of a change in accounting principle |
| $ | (21,372,000 | ) | $ | 646,000 |
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Earnings per common share before cumulative effect of a change in accounting principle |
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Basic |
| $ | .22 |
| $ | .15 |
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Diluted |
| $ | .21 |
| $ | .15 |
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Earnings (loss) per common share after cumulative effect of a change in accounting principle |
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Basic |
| $ | (4.82 | ) | $ | .15 |
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Diluted |
| $ | (4.82 | ) | $ | .15 |
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Weighted average common shares outstanding |
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Basic |
| 4,437,000 |
| 4,287,000 |
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Diluted |
| 4,552,000 |
| 4,355,000 |
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