Exhibit 99.1
For Immediate Release
SL INDUSTRIES ANNOUNCES 2004 FOURTH QUARTER
AND YEAR-END RESULTS
MT. LAUREL, NEW JERSEY, MARCH 24, 2005 . . . SL INDUSTRIES, INC. (AMEX &
PHLX: SLI) announced today that its net income for the year ended December 31,
2004 was $8,672,000, or $1.48 per diluted share. Net income for the year
included income from discontinued operations, after tax, of $2,371,000, or $.40
per diluted share. Net income for the year from continuing operations was
$6,301,000, or $1.08 per diluted share. Income from continuing operations
benefited by approximately $1,295,000, or $.22 per diluted share, due to current
and prior years research and development tax credits recorded during the year.
Discontinued operations include the businesses of three former subsidiaries of
the Company: SL Waber, Inc., which was sold in September 2001; Elektro-Metall
Export GmbH, which was sold in January 2003 (this sale was recorded in 2002);
and SL Surface Technologies, Inc., which was sold in November 2003.
For the year ended December 31, 2003, net income was $1,320,000, or $.22
per diluted share. The net income for 2003 included a loss from discontinued
operations of $2,422,000, or $.41 per diluted share. Net income from continuing
operations for 2003 was $3,742,000, or $.63 per diluted share.
Net sales from continuing operations for 2004 was $118,804,000, compared
with net sales from continuing operations for 2003 of $105,284,000.
Generally, the Company's operating segments recorded improved results, as
compared to 2003. The one exception was RFL Electronics, which continued to
experience decreases in sales of teleprotection and protective relaying
equipment, as electric utilities deferred significant capital improvement
programs for the second year in a row. In 2004, RFL Electronics recorded net
sales of $22,585,000, with income from operations of $2,091,000, compared with
net sales of $23,388,000 and income from operations of $2,236,000 for 2003. The
Power Electronics Group performed well: in 2004, Condor D.C. Power Supplies
recorded net sales of $41,457,000 with income from operations of $3,789,000,
compared with net sales of $39,450,000 and income from operations of $3,377,000
for 2003; and Teal Electronics recorded net sales of $30,265,000, with income
from operations of $4,635,000, compared with net sales of $20,393,000 and income
from operations of $2,671,000 for 2003. SL Montevideo Technologies recorded in
2004 net sales of $24,497,000, with income from operations of $2,827,000,
compared with net sales of $22,053,000 and income from operations of $1,957,000
for 2003.
For the three months ended December 31, 2004, net income was $1,400,000, or
$.25 per diluted share. Net loss from discontinued operations for the period was
$103,000, or $.02 per diluted share. Net income from continuing operations for
the period was $1,503,000, or $.27 per diluted share.
(MORE)
For the three months ended December 31, 2003, net income was $280,000, or
$.05 per diluted share. Net loss from discontinued operations for the period was
$1,003,000, or $.17 per diluted share. Net income from continuing operations for
the period was $1,283,000, or $.22 per diluted share.
Net sales from continuing operations for the three months ended December
31, 2004 were $30,745,000, compared with net sales from continuing operations of
$26,404,000 for the same period last year.
Warren Lichtenstein, Chairman and Chief Executive Officer of SL Industries,
commented, "SL achieved record earnings of $1.48 per share in 2004. These
results were achieved due to our successful implementation and completion of the
restructuring plan we announced three years ago, which refocused the Company's
efforts on its core businesses. Additionally, the Company resolved its
long-standing patent infringement dispute with American Power Conversion, for
which it received $2,516,000, net of taxes. At year-end, SL common stock closed
at $14.15 per share, a 76% increase from the prior year end closing stock
price."
"In 2004, the Company strengthened its financial position and reinvested in
its business segments. Major new product introductions were launched at all of
our divisions: Condor D.C. Power Supplies released 35 new high-density power
supply models; Teal Electronics began marketing its innovative power monitor
equipment; SL Montevideo Technology introduced several new motor designs with
oil field service, automotive and medical applications; and RFL Electronics
completed development of a portfolio of new transmission line relay protection
and carrier communications products. Engineering and product development
expenses were $8,951,000 for the year, an increase of approximately $1,095,000,
or 14%, from 2003."
"All of the operating subsidiaries generated positive cash flows from
operations and recorded strong returns on invested capital. As of today, the
Company maintains a cash balance of $3,993,077, with outstanding bank debt of
$1,874,686."
Lichtenstein continued, "The Company also used its financial strength to
improve its capital structure. SL acquired 545,900 shares of its common stock,
in open market purchases and negotiated transactions pursuant to its stock
repurchase program. These repurchases reduced the outstanding shares of the
Company's common stock by approximately 9%. The aggregate purchase price for
these repurchases was $6,076,000, or an average price of $11.13 per share."
"We also continued to increase the productivity and the capabilities of our
corporate administration. Corporate expenses increased to $5,033,000, or
approximately 4.2% of sales, from $3,563,000, or approximately 3.4% of sales in
2003. However, these expenses include the addition of the Company's chief
operating officer to the corporate staff, whose compensation had previously been
charged to operating subsidiaries. Without this charge, corporate expenses would
have increased to $4,215,000, or approximately 3.5% of sales, from the prior
year. During 2004, the Company hired a new tax manager and financial analyst and
added a full time internal auditor and Sarbanes Oxley compliance officer. In
addition to executive management and administration, corporate expenses include
legacy obligations relating to litigation expenses, retirement liabilities and
public reporting costs."
(MORE)
Lichtenstein concluded, "Having achieved the goals set forth in our
business plan, SL is looking towards the future. In December, the Board of
Directors approved a new three-year strategic plan, which calls for accelerated
growth through the penetration of attractive new market niches, further
improvement of operations and expansion of global capabilities. We expect to
achieve these goals through organic growth and strategic acquisitions. We look
forward to further improving the Company's performance in the year ahead, and
reporting on our progress to our shareholders."
ABOUT SL INDUSTRIES, INC.
SL Industries, Inc. designs, manufactures and markets equipment and systems
for industrial, medical, electric utility, aerospace and telecommunications
applications. For more information about SL Industries, Inc. and its products,
please visit the Company's website at www.slindustries.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.
(TABLE ATTACHED)
SL INDUSTRIES, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2004 2003
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 2,659 $ 3,501
Accounts and note receivable, net 15,734 14,064
Inventories, net 15,839 11,009
Other current assets 3,758 5,013
------- -------
Total current assets 37,990 33,587
------- -------
Property, plant and equipment, net 8,509 9,547
Intangible assets, net 11,512 11,283
Other assets 5,073 4,004
------- -------
Total assets $63,084 $58,421
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Long term debt due within one year $ 559 $ 887
Other current liabilities 17,935 16,088
------- -------
Total current liabilities 18,494 16,975
------- -------
Long term debt, less portion due within one year 1,456 2,015
Other liabilities 5,447 4,850
Shareholders' equity 37,687 34,581
------- -------
Total liabilities and shareholders' equity $63,084 $58,421
======= =======
SL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three-Months Ended Twelve-Months Ended
December 31, December 31,
2004 2003* 2004 2003*
--------- ----------- ----------- -----------
(unaudited)
Net sales....................................................... $30,745 $ 26,404 $ 118,804 $ 105,284
Cost and expenses:
Cost of products sold....................................... 19,787 16,052 75,582 66,010
Engineering and product development ........................ 2,083 2,100 8,951 7,856
Selling, general and administrative ........................ 6,026 5,599 23,829 22,614
Depreciation and amortization .............................. 693 473 2,133 1,851
Asset impairment ........................................... -- -- -- 275
--------- --------- --------- ---------
Total costs and expenses ....................................... 28,589 24,224 110,495 98,606
--------- --------- --------- ---------
Income from operations ......................................... 2,156 2,180 8,309 6,678
Other income (expense):
Amortization of deferred financing costs ................... (112) (112) (447) (447)
Interest income............................................. 20 41 102 172
Interest expense ........................................... (140) (25) (347) (380)
--------- --------- --------- ---------
Income from continuing operations before income taxes........... 1,924 2,084 7,617 6,023
Income tax provision ........................................... 421 801 1,316 2,281
--------- --------- --------- ---------
Income from continuing operations .............................. 1,503 1,283 6,301 3,742
Income (loss) from discontinued operations (net of tax) ........ (103) (1,003) 2,371 (2,422)
--------- --------- --------- ---------
Net income ..................................................... $ 1,400 $ 280 $ 8,672 $ 1,320
========= ========= ========= =========
BASIC NET INCOME (LOSS) PER COMMON SHARE
Income from continuing operations .......................... $ 0.28 $ 0.22 $ 1.10 $ 0.63
Income (loss) from discontinued operations (net of tax) .... (0.02) (0.17) 0.41 (0.41)
--------- --------- --------- ---------
Net income ................................................. $ 0.26 $ 0.05 $ 1.51 $ 0.22
========= ========= ========= =========
DILUTED NET INCOME (LOSS) PER COMMON SHARE
Income from continuing operations .......................... $ 0.27 $ 0.22 $ 1.08 $ 0.63
Income (loss) from discontinued operations (net of tax) .... (0.02) (0.17) 0.40 (0.41)
--------- --------- --------- ---------
Net income ................................................. $ 0.25 $ 0.05 $ 1.48 $ 0.22
========= ========= ========= =========
Shares used in computing basic net income (loss)
per common share ............................................. 5,443 5,945 5,760 5,917
Shares used in computing diluted net income (loss)
per common share ............................................. 5,584 6,009 5,871 5,956
* RECLASSIFIED FOR COMPARATIVE PURPOSES ONLY.
CONTACT:
David R. Nuzzo
Chief Financial Officer
E-mail: david.nuzzo@slindustries.com
Phone: 856-727-1500, extension 5515
SL Industries Inactive
Filed: 29 Mar 05, 12:00am