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