EXHIBIT 99.1
NEWS RELEASE
October 26, 2004
Torrance, California
Summa Industries Confirms Previously Reported Year-end Results
Summa Industries (NNM:SUMX) confirms the financial results for fiscal 2004, previously reported as preliminary on October 8, 2004, after completing the review of its income tax provision.
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.
Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| | August 31, 2003 | | August 31, 2004 | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 380,000 | | $ | 1,248,000 | |
Accounts receivable | | 15,729,000 | | 18,227,000 | |
Inventories | | 11,645,000 | | 14,749,000 | |
Prepaid expenses and other | | 2,710,000 | | 3,802,000 | |
Total current assets | | 30,464,000 | | 38,026,000 | |
Property, plant and equipment, net | | 26,112,000 | | 31,053,000 | |
Other assets | | 2,518,000 | | 1,090,000 | |
Goodwill and other intangibles, net | | 9,422,000 | | 9,254,000 | |
Total assets | | $ | 68,516,000 | | $ | 79,423,000 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 5,302,000 | | $ | 9,088,000 | |
Accrued liabilities | | 5,015,000 | | 6,735,000 | |
Current maturities of long-term debt | | 3,896,000 | | 2,195,000 | |
Total current liabilities | | 14,213,000 | | 18,018,000 | |
Long-term debt, net of current maturities | | 16,219,000 | | 28,663,000 | |
Other long-term liabilities | | 2,601,000 | | 2,508,000 | |
Total long-term liabilities | | 18,820,000 | | 31,171,000 | |
Mandatorily redeemable convertible preferred stock | | 6,103,000 | | — | |
Minority interest in subsidiary | | — | | 205,000 | |
Total stockholders’ equity | | 29,380,000 | | 30,029,000 | |
Total liabilities and stockholders’ equity | | $ | 68,516,000 | | $ | 79,423,000 | |
Summa Industries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| | 2002 | | 2003 | | 2004 | |
Net sales | | $ | 116,241,000 | | $ | 111,140,000 | | $ | 116,404,000 | |
Cost of sales | | 85,765,000 | | 83,336,000 | | 88,522,000 | |
Gross profit | | 30,476,000 | | 27,804,000 | | 27,882,000 | |
Selling, general, administrative and other expenses | | 21,911,000 | | 21,005,000 | | 21,027,000 | |
Operating income | | 8,565,000 | | 6,799,000 | | 6,855,000 | |
Interest expense | | 2,500,000 | | 1,481,000 | | 1,585,000 | |
Income before income taxes and cumulative effect of a change in accounting principle | | 6,065,000 | | 5,318,000 | | 5,270,000 | |
Provision for income taxes | | 2,136,000 | | 1,760,000 | | 1,899,000 | |
Income before cumulative effect of a change in accounting principle | | 3,929,000 | | 3,558,000 | | 3,371,000 | |
Cumulative effect of a change in accounting principle | | — | | (22,343,000 | ) | — | |
Net income (loss) | | $ | 3,929,000 | | $ | (18,785,000 | ) | $ | 3,371,000 | |
Preferred stock accretion | | $ | 491,000 | | $ | 737,000 | | $ | 450,000 | |
Net income available to common stockholders: | | | | | | | |
before cumulative effect of a change in accounting principle | | $ | 3,438,000 | | $ | 2,821,000 | | $ | 2,921,000 | |
after cumulative effect of a change in accounting principle | | $ | 3,438,000 | | $ | (19,522,000 | ) | $ | 2,921,000 | |
Earnings per common share before cumulative effect of a change in accounting principle | | | | | | | |
Basic | | $ | .78 | | $ | .65 | | $ | .69 | |
Diluted | | $ | .76 | | $ | .63 | | $ | .68 | |
| | | | | | | |
Earnings (loss) per common share after cumulative effect of a change in accounting principle | | | | | | | |
Basic | | $ | .78 | | $ | (4.48 | ) | $ | .69 | |
Diluted | | $ | .76 | | $ | (4.48 | ) | $ | .68 | |
| | | | | | | | | | |
Weighted average common shares outstanding | | | | | | | |
Basic | | 4,398,000 | | 4,359,000 | | 4,215,000 | |
Diluted | | 4,512,000 | | 4,449,000 | | 4,297,000 | |
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