Exhibit 99.1
For Immediate Release
SL INDUSTRIES, INC. ANNOUNCES SALE OF ELECTRO-METALL EXPORT GmbH
SL Enters Into Three Year Credit Facility With LaSalle Business Credit
MT. LAUREL, N.J., January 8, 2003 - SL INDUSTRIES, INC. (NYSE and
PHLX:SL) announced today that it sold its German subsidiary, Electro-Metall
Export GmbH ("EME") for a purchase price of $11.6 million, which consisted of
cash, purchaser notes and assumption of bank debt. The purchaser notes are
comprised of a $3 million secured note that bears interest at the prime rate
plus 2% and matures no later than May 1, 2003 and a $1 million unsecured note
that bears interest at an annual rate of 12% and matures April 3, 2004. Cash
proceeds were used to pay down debt. After giving effect to such debt repayment,
the Company's outstanding bank debt is approximately $10.4 million.
EME is a producer of electronic actuation devices and cable harness
systems sold primarily to original equipment manufacturers in the aerospace and
automotive industries. Its operations are located in Ingolstadt, Germany and
Paks, Hungary. EME is expected to report sales of approximately $ 27 million and
net income of approximately $1.7 million for the 2002 calendar year. As a result
of the transaction, SL's net worth is expected to decrease by approximately $3.5
million. The transaction is not anticipated to be a taxable event.
The Company further announced that it entered into a three-year
senior secured credit facility with LaSalle Business Credit LLC. The credit
facility provides for a maximum indebtedness of $20 million, with a revolving
tranche and a term debt tranche. Outstanding indebtedness under this facility
bears interest ranging from the prime rate plus fifty basis points to the prime
rate plus 2%. The credit facility is secured by all of the Company's U.S. assets
and requires that the Company maintain specified financial ratios. Loan proceeds
were used to retire the Company's pre-existing debt, which matured on December
31, 2002, and for working capital purposes.
Warren Lichtenstein, Chairman and Chief Executive Officer of SL
Industries, Inc., said, "We are pleased to report the sale of the Company's EME
subsidiary. These transactions represent strategic steps to maximize the value
of the Company for its stakeholders."
Lichtenstein continued, "I would also like to note the significance
of the Company's new credit arrangement with LaSalle Business Credit LLC. We
believe that this credit facility will provide ample liquidity to take advantage
of market opportunities and sufficient flexibility to maintain a balanced
capital structure. More importantly, we expect that the new credit facility will
provide much needed financial stability by substituting a new lender interested
in developing a cooperative business relationship. We look forward to working
with LaSalle Business Credit LLC as we continue to implement the Company's
business plan."
About SL Industries
SL Industries, Inc. designs, manufactures and markets Power and Data
Quality (PDQ) equipment and systems for industrial, medical, aerospace,
telecommunications and consumer applications. For more information about SL
Industries, Inc. and its products, please visit the Company's web site at
www.slpdq.com.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations, estimates and
projections about the Company's business based, in part, on assumptions made by
management. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements due to numerous
factors, including those described above and the following: the effectiveness of
the cost reduction initiatives undertaken by the Company, changes in demand for
the Company's products, product mix, the timing of customer orders and
deliveries, the impact of competitive products and pricing, constraints on
supplies of critical components, excess or shortage of production capacity,
difficulties encountered in the integration of acquired businesses and other
risks discussed from time to time in the Company's Securities and Exchange
Commission filings and reports. In addition, such statements could be affected
by general industry and market conditions and growth rates, and general domestic
and international economic conditions. Such forward-looking statements speak
only as of the date on which they are made, and the Company does not undertake
any obligation to update any forward-looking statement to reflect events or
circumstances after the date of this release.
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Contact:
SL Industries, Inc.
David R. Nuzzo, 856/222-5515
