EXHIBIT 99.1
NEWS RELEASE
October 19, 2005
Torrance, California
Summa Industries Announces 4th Quarter and Year-end Results
Summa Industries (NNM:SUMX) reports unaudited earnings of $164,000, or $.04 per common share, on sales of $28,001,000 for the three months ended August 31, 2005, versus earnings of $698,000, or $.17 per common share, on sales of $27,883,000 for the three months ended August 31, 2004.
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| Three months ended August 31 |
| Years ended August 31 |
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| 2005 |
| 2004 |
| 2005 |
| 2004 |
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Sales |
| $ | 28,001,000 |
| $ | 27,883,000 |
| $ | 108,983,000 |
| $ | 104,453,000 |
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Income from continuing operations |
| $ | 525,000 |
| $ | 845,000 |
| $ | 2,960,000 |
| $ | 3,495,000 |
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Net (loss) from discontinued operations |
| $ | (361,000 | ) | $ | (147,000 | ) | $ | (1,402,000 | ) | $ | (124,000 | ) |
Net income |
| $ | 164,000 |
| $ | 698,000 |
| $ | 1,558,000 |
| $ | 3,371,000 |
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Diluted earnings per share: |
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Continuing operations |
| $ | 0.13 |
| $ | 0.21 |
| $ | 0.73 |
| $ | 0.71 |
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Discontinued operations |
| $ | (0.09 | ) | $ | (0.04 | ) | $ | (0.34 | ) | $ | (0.03 | ) |
Net income |
| $ | 0.04 |
| $ | 0.17 |
| $ | 0.39 |
| $ | 0.68 |
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As reported in September 2005, the Company sold certain assets of its subsidiary, Plastron Industries, Inc., at their book value and agreed to lease certain retained fixed assets of Plastron to the buyer. The business comprised Summa’s entire Electrical Components segment, which is now reported as a discontinued operation.
A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Wednesday, October 19, 2005. The call-in number is (800) 334-0872. The conference 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.
Summa Industries
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
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| August 31, 2004 |
| August 31, 2005 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 1,248,000 |
| $ | 1,233,000 |
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Accounts receivable |
| 18,227,000 |
| 16,919,000 |
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Inventories |
| 14,749,000 |
| 12,665,000 |
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Prepaid expenses and other |
| 3,782,000 |
| 3,471,000 |
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Assets held for sale |
| — |
| 6,099,000 |
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Total current assets |
| 38,006,000 |
| 40,387,000 |
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Property, plant and equipment, net |
| 31,053,000 |
| 29,213,000 |
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Other assets |
| 1,804,000 |
| 1,454,000 |
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Goodwill and other intangibles, net |
| 9,254,000 |
| 8,981,000 |
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Total assets |
| $ | 80,117,000 |
| $ | 80,035,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 9,088,000 |
| $ | 8,731,000 |
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Accrued liabilities |
| 7,429,000 |
| 5,773,000 |
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Current maturities of long-term debt |
| 2,195,000 |
| 3,069,000 |
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Liabilities held for sale |
| — |
| 1,280,000 |
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Total current liabilities |
| 18,712,000 |
| 18,853,000 |
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Long-term debt, net of current maturities |
| 28,663,000 |
| 27,520,000 |
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Other long-term liabilities |
| 2,508,000 |
| 2,441,000 |
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Total long-term liabilities |
| 31,171,000 |
| 29,961,000 |
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Minority interest in subsidiary |
| 205,000 |
| 133,000 |
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Total stockholders’ equity |
| 30,029,000 |
| 31,088,000 |
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Total liabilities and stockholders’ equity |
| $ | 80,117,000 |
| $ | 80,035,000 |
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Summa Industries
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
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| Three months ended August 31 |
| Years ended August 31 |
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| 2004 |
| 2005 |
| 2004 |
| 2005 |
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Net sales |
| $ | 27,883,000 |
| $ | 28,001,000 |
| $ | 104,453,000 |
| $ | 108,983,000 |
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Cost of sales |
| 20,937,000 |
| 22,084,000 |
| 77,841,000 |
| 84,052,000 |
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Gross profit |
| 6,946,000 |
| 5,917,000 |
| 26,612,000 |
| 24,931,000 |
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Selling, general, administrative and other expenses |
| 5,156,000 |
| 4,719,000 |
| 19,660,000 |
| 18,919,000 |
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Operating income |
| 1,790,000 |
| 1,198,000 |
| 6,952,000 |
| 6,012,000 |
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Interest expense |
| 330,000 |
| 424,000 |
| 1,477,000 |
| 1,548,000 |
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Income from continuing operations before income taxes and minority interest |
| 1,460,000 |
| 774,000 |
| 5,475,000 |
| 4,464,000 |
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Provision for income taxes |
| 615,000 |
| 272,000 |
| 1,980,000 |
| 1,577,000 |
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Income from continuing operations before minority interest |
| 845,000 |
| 502,000 |
| 3,495,000 |
| 2,887,000 |
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Minority interest in net loss of subsidiary |
| — |
| 23,000 |
| — |
| 73,000 |
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Income from continuing operations |
| 845,000 |
| 525,000 |
| 3,495,000 |
| 2,960,000 |
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Net (loss) from discontinued operations |
| (147,000 | ) | (361,000 | ) | (124,000 | ) | (1,402,000 | ) | ||||
Net income |
| $ | 698,000 |
| $ | 164,000 |
| $ | 3,371,000 |
| $ | 1,558,000 |
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Preferred stock accretion |
| — |
| — |
| $ | 450,000 |
| — |
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Net income available to common stockholders |
| $ | 698,000 |
| $ | 164,000 |
| $ | 2,921,000 |
| $ | 1,558,000 |
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Earnings (loss) per common share |
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Basic |
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Continuing operations |
| $ | .21 |
| $ | .13 |
| $ | .72 |
| $ | .74 |
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Discontinued operations |
| $ | (.03 | ) | $ | (.09 | ) | $ | (.03 | ) | $ | (.35 | ) |
Net income |
| $ | .18 |
| $ | .04 |
| $ | .69 |
| $ | .39 |
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Diluted |
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Continuing operations |
| $ | .21 |
| $ | .13 |
| $ | .71 |
| $ | .73 |
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Discontinued operations |
| $ | (.04 | ) | $ | (.09 | ) | $ | (.03 | ) | $ | (.34 | ) |
Net income |
| $ | .17 |
| $ | .04 |
| $ | .68 |
| $ | .39 |
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Weighted average common shares outstanding: |
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Basic |
| 3,971,000 |
| 3,947,000 |
| 4,215,000 |
| 3,979,000 |
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Diluted |
| 4,075,000 |
| 3,982,000 |
| 4,297,000 |
| 4,041,000 |
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