EXHIBIT 99.1
NEWS RELEASE
June 23, 2006
Torrance, California
Summa Industries Announces 3rd Quarter Earnings
Summa Industries (NasdaqNM:SUMX) reports net income from continuing operations of $927,000, or $.23 per common share, on sales of $30,407,000 for the three months ended May 31, 2006, versus $883,000, or $.22 per common share, on sales of $28,808,000 for the three months ended May 31, 2005.
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| Three months ended May 31 |
| Nine months ended May 31 |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
Sales |
| $ | 30,407,000 |
| $ | 28,808,000 |
| $ | 85,657,000 |
| $ | 80,982,000 |
|
Income from continuing operations |
| $ | 927,000 |
| $ | 883,000 |
| $ | 2,681,000 |
| $ | 2,435,000 |
|
Net (loss) from discontinued operations |
| — |
| $ | (375,000 | ) | $ | (405,000 | ) | $ | (1,041,000 | ) | |
Net income |
| $ | 927,000 |
| $ | 508,000 |
| $ | 2,276,000 |
| $ | 1,394,000 |
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Diluted earnings per share: |
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Continuing operations |
| $ | 0.23 |
| $ | 0.22 |
| $ | 0.68 |
| $ | 0.60 |
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Discontinued operations |
| — |
| $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.26 | ) | |
Net income |
| $ | 0.23 |
| $ | 0.13 |
| $ | 0.58 |
| $ | 0.34 |
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A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Friday, June 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 at www.vcall.com/IC/CEPage.asp?ID=105579.
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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| May 31, 2005 |
| August 31, 2005 |
| May 31, 2006 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 1,027,000 |
| $ | 1,233,000 |
| $ | 1,680,000 |
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Accounts receivable |
| 18,761,000 |
| 16,919,000 |
| 18,736,000 |
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Inventories |
| 15,638,000 |
| 12,665,000 |
| 16,029,000 |
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Prepaid expenses and other |
| 3,895,000 |
| 3,471,000 |
| 3,350,000 |
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Assets held for sale |
| — |
| 3,641,000 |
| — |
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Total current assets |
| 39,321,000 |
| 37,929,000 |
| 39,795,000 |
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Property, plant and equipment, net |
| 32,227,000 |
| 29,213,000 |
| 24,920,000 |
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Goodwill and other assets, net |
| 10,894,000 |
| 10,435,000 |
| 10,800,000 |
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Assets held for sale |
| — |
| 2,458,000 |
| 1,961,000 |
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Total assets |
| $ | 82,442,000 |
| $ | 80,035,000 |
| $ | 77,476,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
| $ | 9,909,000 |
| $ | 8,731,000 |
| $ | 9,928,000 |
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Accrued liabilities |
| 5,429,000 |
| 5,774,000 |
| 7,362,000 |
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Current maturities of long-term debt |
| 4,178,000 |
| 3,069,000 |
| 2,783,000 |
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Bank line of credit |
| — |
| — |
| 12,282,000 |
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Liabilities held for sale |
| — |
| 1,280,000 |
| — |
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Total current liabilities |
| 19,516,000 |
| 18,854,000 |
| 32,355,000 |
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Long-term debt, net of current maturities |
| 29,157,000 |
| 27,520,000 |
| 9,902,000 |
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Other long-term liabilities |
| 2,448,000 |
| 2,441,000 |
| 3,128,000 |
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Minority interest in subsidiary |
| 155,000 |
| 132,000 |
| 91,000 |
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Total stockholders’ equity |
| 31,166,000 |
| 31,088,000 |
| 32,000,000 |
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Total liabilities and stockholders’ equity |
| $ | 82,442,000 |
| $ | 80,035,000 |
| $ | 77,476,000 |
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Summa Industries
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
|
| Three months ended May 31 |
| Nine months ended May 31 |
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| 2005 |
| 2006 |
| 2005 |
| 2006 |
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Net sales |
| $ | 28,808,000 |
| $ | 30,407,000 |
| $ | 80,982,000 |
| $ | 85,657,000 |
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Cost of sales |
| 22,178,000 |
| 23,217,000 |
| 61,968,000 |
| 65,128,000 |
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Gross profit |
| 6,630,000 |
| 7,190,000 |
| 19,014,000 |
| 20,529,000 |
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Selling, general, administrative and other expenses |
| 4,888,000 |
| 5,200,000 |
| 14,243,000 |
| 15,092,000 |
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(Gain) on sale of real estate |
| — |
| — |
| (43,000 | ) | (205,000 | ) | ||||
Operating income |
| 1,742,000 |
| 1,990,000 |
| 4,814,000 |
| 5,642,000 |
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Interest expense |
| 407,000 |
| 534,000 |
| 1,124,000 |
| 1,506,000 |
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Income from continuing operations before income taxes and minority interest |
| 1,335,000 |
| 1,456,000 |
| 3,690,000 |
| 4,136,000 |
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Provision for income taxes |
| 469,000 |
| 533,000 |
| 1,305,000 |
| 1,496,000 |
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Income from continuing operations before minority interest |
| 866,000 |
| 923,000 |
| 2,385,000 |
| 2,640,000 |
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Minority interest in net loss of subsidiary |
| 17,000 |
| 4,000 |
| 50,000 |
| 41,000 |
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Income from continuing operations |
| 883,000 |
| 927,000 |
| 2,435,000 |
| 2,681,000 |
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(Loss) from discontinued operations, net of tax benefit of $191,000, $—, $532,000 and $208,000 |
| (375,000 | ) | — |
| (1,041,000 | ) | (405,000 | ) | ||||
Net income |
| $ | 508,000 |
| $ | 927,000 |
| $ | 1,394,000 |
| $ | 2,276,000 |
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Earnings (loss) per common share: |
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Basic |
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Continuing operations |
| $ | 0.22 |
| $ | 0.24 |
| $ | 0.61 |
| $ | 0.68 |
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Discontinued operations |
| ($0.09 | ) | — |
| ($0.26 | ) | ($0.10 | ) | ||||
Net income |
| $ | 0.13 |
| $ | 0.24 |
| $ | 0.35 |
| $ | 0.58 |
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Diluted |
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Continuing operations |
| $ | 0.22 |
| $ | 0.23 |
| $ | 0.60 |
| $ | 0.68 |
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Discontinued operations |
| $ | (0.09 | ) | — |
| $ | (0.26 | ) | $ | (0.10 | ) | |
Net income |
| $ | 0.13 |
| $ | 0.23 |
| $ | 0.34 |
| $ | 0.58 |
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Weighted average common shares outstanding: |
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Basic |
| 3,984,000 |
| 3,895,000 |
| 3,990,000 |
| 3,905,000 |
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Diluted |
| 4,038,000 |
| 3,963,000 |
| 4,060,000 |
| 3,950,000 |
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