EXHIBIT 99.1
NEWS RELEASE
December 23, 2004
Torrance, California
Summa Reports 1st Quarter Earnings
Summa Industries (Nasdaq NM:SUMX) reports net income of $610,000, or $.15 per share, on sales of $28,238,000 for the three months ended November 30, 2004, versus net income of $830,000, or $.15 per share, on sales of $25,926,000 for the three months ended November 30, 2003.
| | Three months ended November 30 | |
| | 2004 | | 2003 | |
| | | | | |
Sales | | $ | 28,238,000 | | $ | 25,926,000 | |
| | | | | |
Net income | | $ | 610,000 | | $ | 830,000 | |
| | | | | |
Diluted earnings per share | | $ | .15 | | $ | .15 | |
| | | | | | | | | |
A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Thursday, December 23, 2004. The call-in number is (800) 967-7185. 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.
Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
| | November 30, 2003 | | August 31, 2004 | | November 30, 2004 | |
ASSETS | | | | | | | |
| | | | | | | |
Current assets: | | | | | | | |
Cash | | $ | 297,000 | | $ | 1,248,000 | | $ | 832,000 | |
Accounts receivable | | 15,681,000 | | 18,227,000 | | 16,371,000 | |
Inventories | | 13,198,000 | | 14,749,000 | | 15,118,000 | |
Prepaid expenses and other | | 3,060,000 | | 3,782,000 | | 4,512,000 | |
| | | | | | | |
Total current assets | | 32,236,000 | | 38,006,000 | | 36,833,000 | |
Property, plant and equipment, net | | 25,624,000 | | 31,053,000 | | 33,086,000 | |
Goodwill and other assets, net | | 11,879,000 | | 11,058,000 | | 11,026,000 | |
| | | | | | | |
Total assets | | $ | 69,739,000 | | $ | 80,117,000 | | $ | 80,945,000 | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
| | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 6,149,000 | | $ | 9,088,000 | | $ | 6,543,000 | |
Accrued liabilities | | 4,504,000 | | 7,429,000 | | 6,744,000 | |
Current maturities of long-term debt | | 3,448,000 | | 2,195,000 | | 2,702,000 | |
| | | | | | | |
Total current liabilities | | 14,101,000 | | 18,712,000 | | 15,989,000 | |
Long-term debt, net of current maturities | | 16,247,000 | | 28,663,000 | | 31,591,000 | |
Other long-term liabilities | | 2,594,000 | | 2,508,000 | | 2,500,000 | |
Manditorily redeemable preferred stock | | 6,287,000 | | — | | — | |
Minority interest in subsidiary | | — | | 205,000 | | 205,000 | |
Total stockholders’ equity | | 30,510,000 | | 30,029,000 | | 30,660,000 | |
| | | | | | | |
Total | | $ | 69,739,000 | | $ | 80,117,000 | | $ | 80,945,000 | |
Summa Industries
CONDENSED CONSOLIDATED INCOME STATEMENTS
| | Three months ended November 30 | |
| | 2003 | | 2004 | |
| | | | | |
Net sales | | $ | 25,926,000 | | $ | 28,238,000 | |
Cost of sales | | 19,555,000 | | 21,793,000 | |
| | | | | |
Gross profit | | 6,371,000 | | 6,445,000 | |
Selling, general, administrative and other expenses | | 4,820,000 | | 5,118,000 | |
| | | | | |
Operating income | | 1,551,000 | | 1,327,000 | |
Interest expense | | 305,000 | | 367,000 | |
| | | | | |
Income before income taxes | | 1,246,000 | | 960,000 | |
Provision for income taxes | | 416,000 | | 350,000 | |
| | | | | |
Net income | | $ | 830,000 | | $ | 610,000 | |
| | | | | |
Preferred stock accretion | | $ | 184,000 | | $ | — | |
| | | | | |
Net income available to stockholders: | | $ | 646,000 | | $ | 610,000 | |
| | | | | |
Earnings per common share | | | | | |
Basic | | $ | .15 | | $ | .15 | |
Diluted | | $ | .15 | | $ | .15 | |
| | | | | |
Weighted average common shares outstanding | | | | | |
Basic | | 4,287,000 | | 3,984,000 | |
Diluted | | 4,355,000 | | 4,064,000 | |
