EXHIBIT 99.1
NEWS RELEASE
March 23, 2004
Torrance, California
Summa Reports 2nd Quarter Earnings
Summa Industries (Nasdaq NM:SUMX) reports net income of $453,000, or $.06 per share, on sales of $26,545,000 for the three months ended February 29, 2004, versus net income of $687,000, or $.11 per share, on sales of $27,562,000 for the three months ended February 28, 2003.
| | Three months ended | |
| | Feb 29, 2004 | | Feb 28, 2003 | |
Sales | | $ | 26,545,000 | | $ | 27,562,000 | |
Net income | | $ | 453,000 | | $ | 687,000 | |
Diluted earnings per share | | $ | .06 | | $ | .11 | |
Earnings were adversely affected by a non-recurring charge to interest expense of $266,000, or $.04 per share, for term loan breakup fees and the write-off of unamortized bank fees in connection with a new banking relationship.
A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Tuesday, March 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.
more - - - -
1
Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS | | February 28, 2003 | | August 31, 2003 | | February 29, 2004 | |
| | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 462,000 | | $ | 380,000 | | $ | 147,000 | |
Accounts receivable | | 17,285,000 | | 15,729,000 | | 17,669,000 | |
Inventories | | 11,928,000 | | 11,645,000 | | 13,828,000 | |
Prepaid expenses and other | | 3,246,000 | | 2,710,000 | | 3,108,000 | |
| | | | | | | |
Total current assets | | 32,921,000 | | 30,464,000 | | 34,752,000 | |
Property, plant and equipment, net | | 26,769,000 | | 26,112,000 | | 27,967,000 | |
Goodwill and other assets, net | | 12,483,000 | | 11,940,000 | | 11,896,000 | |
| | | | | | | |
Total assets | | $ | 72,173,000 | | $ | 68,516,000 | | $ | 74,615,000 | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
| | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 5,440,000 | | $ | 5,302,000 | | $ | 5,871,000 | |
Accrued liabilities | | 5,012,000 | | 5,015,000 | | 4,211,000 | |
Current maturities of long-term debt | | 4,597,000 | | 3,896,000 | | 2,110,000 | |
| | | | | | | |
Total current liabilities | | 15,049,000 | | 14,213,000 | | 12,192,000 | |
Long-term debt, net of current maturities | | 19,187,000 | | 16,219,000 | | 21,818,000 | |
Other long-term liabilities | | 2,637,000 | | 2,601,000 | | 2,585,000 | |
Manditorily redeemable convertible preferred stock | | 5,735,000 | | 6,103,000 | | 6,472,000 | |
Minority interest in subsidiary | | — | | — | | 400,000 | |
Total stockholders’ equity | | 29,565,000 | | 29,380,000 | | 31,148,000 | |
| | | | | | | |
Total | | $ | 72,173,000 | | $ | 68,516,000 | | $ | 74,615,000 | |
more - - -
2
Summa Industries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| | Three months ended | | Six months ended | |
| | Feb 28, 2003 | | Feb 29, 2004 | | Feb 28, 2003 | | Feb 29, 2004 | |
| | | | | | | | | |
Net sales | | $ | 27,562,000 | | $ | 26,545,000 | | $ | 56,110,000 | | $ | 52,471,000 | |
Cost of sales | | 20,833,000 | | 20,256,000 | | 41,957,000 | | 39,811,000 | |
| | | | | | | | | |
Gross profit | | 6,729,000 | | 6,289,000 | | 14,153,000 | | 12,660,000 | |
Selling, general, administrative and other expenses | | 5,348,000 | | 5,038,000 | | 10,613,000 | | 9,858,000 | |
| | | | | | | | | |
Operating income | | 1,381,000 | | 1,251,000 | | 3,540,000 | | 2,802,000 | |
Interest expense | | 373,000 | | 584,000 | | 778,000 | | 889,000 | |
| | | | | | | | | |
Income before income taxes and cumulative effect of a change in accounting principle | | 1,008,000 | | 667,000 | | 2,762,000 | | 1,913,000 | |
Provision for income taxes | | 321,000 | | 214,000 | | 920,000 | | 630,000 | |
| | | | | | | | | |
Income before cumulative effect of a change in accounting principle | | 687,000 | | 453,000 | | 1,842,000 | | 1,283,000 | |
Cumulative effect of a change in accounting principle | | — | | — | | (22,343,000 | ) | — | |
| | | | | | | | | |
Net income (loss) | | $ | 687,000 | | $ | 453,000 | | $ | (20,501,000 | ) | $ | 1,283,000 | |
| | | | | | | | | |
Preferred stock accretion | | $ | 185,000 | | $ | 185,000 | | $ | 369,000 | | $ | 369,000 | |
| | | | | | | | | |
Net income (loss) available to common stockholders: | | | | | | | | | |
before cumulative effect of a change in accounting principle | | $ | 502,000 | | $ | 268,000 | | $ | 1,473,000 | | $ | 914,000 | |
after cumulative effect of a change in accounting principle | | $ | 502,000 | | $ | 268,000 | | $ | (20,870,000 | ) | $ | 914,000 | |
| | | | | | | | | |
Earnings per common share before cumulative effect of a change in accounting principle | | | | | | | | | |
Basic | | $ | .11 | | $ | .06 | | $ | .33 | | $ | .21 | |
Diluted | | $ | .11 | | $ | .06 | | $ | .32 | | $ | .21 | |
| | | | | | | | | |
Earnings (loss) per common share after cumulative effect of a change in accounting principle | | | | | | | | | |
Basic | | $ | .11 | | $ | .06 | | $ | (4.70 | ) | $ | .21 | |
Diluted | | $ | .11 | | $ | .06 | | $ | (4.70 | ) | $ | .21 | |
| | | | | | | | | |
Weighted average common shares outstanding | | | | | | | | | |
Basic | | 4,450,000 | | 4,370,000 | | 4,444,000 | | 4,328,000 | |
Diluted | | 4,556,000 | | 4,450,000 | | 4,554,000 | | 4,403,000 | |
| | | | | | | | | | | | | | |
3
