EXHIBIT 99.1
NEWS RELEASE
March 23, 2006
Torrance, California
Summa Industries Announces 2nd Quarter Results
Summa Industries (NasdaqNM:SUMX) reports net income from continuing operations of $716,000, or $.18 per common share, on sales of $27,510,000 for the three months ended February 28, 2006, versus $650,000, or $.16 per common share, on sales of $26,686,000 for the three months ended February 28, 2005.
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| Three months ended February 28 |
| Six months ended February 28 |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
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Sales |
| $ | 27,510,000 |
| $ | 26,686,000 |
| $ | 55,250,000 |
| $ | 52,174,000 |
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Income from continuing operations |
| $ | 716,000 |
| $ | 650,000 |
| $ | 1,754,000 |
| $ | 1,552,000 |
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Net (loss) from discontinued operations |
| $ | (18,000 | ) | $ | (374,000 | ) | $ | (405,000 | ) | $ | (666,000 | ) |
Net income |
| $ | 698,000 |
| $ | 276,000 |
| $ | 1,349,000 |
| $ | 886,000 |
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Diluted earnings per share: |
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Continuing operations |
| $ | 0.18 |
| $ | 0.16 |
| $ | 0.44 |
| $ | 0.38 |
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Discontinued operations |
| — |
| $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.16 | ) | |
Net income |
| $ | 0.18 |
| $ | 0.07 |
| $ | 0.34 |
| $ | 0.22 |
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A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Thursday, March 23, 2006. The call-in number is 877-407-0782 (Toll Free) or 201-689-8567. The conference call will also be simulcast and archived by www.vcall.com/IC/CEPage.asp?ID=102564.
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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| February 28, 2005 |
| August 31, 2005 |
| February 28, 2006 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 930,000 |
| $ | 1,233,000 |
| $ | 1,105,000 |
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Accounts receivable |
| 19,251,000 |
| 16,919,000 |
| 17,633,000 |
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Inventories |
| 15,213,000 |
| 12,665,000 |
| 16,398,000 |
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Prepaid expenses and other |
| 4,188,000 |
| 3,471,000 |
| 3,874,000 |
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Assets held for sale |
| — |
| 3,641,000 |
| — |
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Total current assets |
| 39,582,000 |
| 37,929,000 |
| 39,010,000 |
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Property, plant and equipment, net |
| 32,845,000 |
| 29,213,000 |
| 25,162,000 |
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Goodwill and other assets, net |
| 10,969,000 |
| 10,435,000 |
| 10,325,000 |
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Assets held for sale |
| — |
| 2,458,000 |
| 1,967,000 |
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Total assets |
| $ | 83,396,000 |
| $ | 80,035,000 |
| $ | 76,464,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 8,793,000 |
| $ | 8,731,000 |
| $ | 8,958,000 |
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Accrued liabilities |
| 5,450,000 |
| 5,774,000 |
| 6,153,000 |
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Current maturities of long-term debt |
| 4,955,000 |
| 3,069,000 |
| 2,940,000 |
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Liabilities held for sale |
| — |
| 1,280,000 |
| — |
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Total current liabilities |
| 19,198,000 |
| 18,854,000 |
| 18,051,000 |
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Long-term debt, net of current maturities |
| 30,603,000 |
| 27,520,000 |
| 23,857,000 |
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Other long-term liabilities |
| 2,492,000 |
| 2,441,000 |
| 3,048,000 |
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Minority interest in subsidiary |
| 172,000 |
| 132,000 |
| 95,000 |
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Total stockholders’ equity |
| 30,931,000 |
| 31,088,000 |
| 31,413,000 |
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Total liabilities and stockholders’ equity |
| $ | 83,396,000 |
| $ | 80,035,000 |
| $ | 76,464,000 |
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Summa Industries
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
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| Three months ended February 28 |
| Six months ended February 28 |
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| 2005 |
| 2006 |
| 2005 |
| 2006 |
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Net sales |
| $ | 26,686,000 |
| $ | 27,510,000 |
| $ | 52,174,000 |
| $ | 55,250,000 |
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Cost of sales |
| 20,746,000 |
| 20,955,000 |
| 39,790,000 |
| 41,911,000 |
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Gross profit |
| 5,940,000 |
| 6,555,000 |
| 12,384,000 |
| 13,339,000 |
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Selling, general, administrative and other expenses |
| 4,574,000 |
| 4,919,000 |
| 9,355,000 |
| 9,892,000 |
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(Gain) on sale of real estate |
| — |
| — |
| (43,000 | ) | (205,000 | ) | ||||
Operating income |
| 1,366,000 |
| 1,636,000 |
| 3,072,000 |
| 3,652,000 |
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Interest expense |
| 408,000 |
| 524,000 |
| 717,000 |
| 972,000 |
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Income from continuing operations before income taxes and minority interest |
| 958,000 |
| 1,112,000 |
| 2,355,000 |
| 2,680,000 |
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Provision for income taxes |
| 341,000 |
| 402,000 |
| 836,000 |
| 963,000 |
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Income from continuing operations before minority interest |
| 617,000 |
| 710,000 |
| 1,519,000 |
| 1,717,000 |
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Minority interest in net loss of subsidiary |
| 33,000 |
| 6,000 |
| 33,000 |
| 37,000 |
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Income from continuing operations |
| 650,000 |
| 716,000 |
| 1,552,000 |
| 1,754,000 |
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(Loss) from discontinued operations, net of tax benefit of $197,000, $9,000, $341,000 and $208,000 |
| (374,000 | ) | (18,000 | ) | (666,000 | ) | (405,000 | ) | ||||
Net income |
| $ | 276,000 |
| $ | 698,000 |
| $ | 886,000 |
| $ | 1,349,000 |
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Earnings (loss) per common share |
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Basic |
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Continuing operations |
| $ | 0.16 |
| $ | 0.18 |
| $ | 0.39 |
| $ | 0.45 |
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Discontinued operations |
| $ | (0.09 | ) | — |
| $ | (0.17 | ) | $ | (0.10 | ) | |
Net income |
| $ | 0.07 |
| $ | 0.18 |
| $ | 0.22 |
| $ | 0.35 |
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Diluted |
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Continuing operations |
| $ | 0.16 |
| $ | 0.18 |
| $ | 0.38 |
| $ | 0.44 |
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Discontinued operations |
| $ | (0.09 | ) | — |
| $ | (0.16 | ) | $ | (0.10 | ) | |
Net Income |
| $ | 0.07 |
| $ | 0.18 |
| $ | 0.22 |
| $ | 0.34 |
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Weighted average common shares outstanding: |
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Basic |
| 4,002,000 |
| 3,893,000 |
| 3,993,000 |
| 3,910,000 |
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Diluted |
| 4,079,000 |
| 3,926,000 |
| 4,071,000 |
| 3,943,000 |
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