Exhibit 99.1 For Immediate Release SL INDUSTRIES ANNOUNCES 2005 FOURTH QUARTER AND YEAR-END RESULTS MT. LAUREL, NEW JERSEY, MARCH 24, 2006 . . . SL INDUSTRIES, INC. (AMEX & PHLX: SLI) announced today that its net income for the year ended December 31, 2005 was $7,147,000, or $1.25 per diluted share. Net income for the year included loss from discontinued operations, after tax, of $473,000, or $.08 per diluted share. Income for the year from continuing operations was $7,620,000, or $1.33 per diluted share. Discontinued operations include legacy costs associated with businesses divested by the Company. For the year ended December 31, 2004, net income was $8,672,000, or $1.48 per diluted share. The net income for 2004 included income from discontinued operations of $2,371,000, or $.40 per diluted share. Income from continuing operations for 2004 was $6,301,000, or $1.08 per diluted share. Net sales from continuing operations for 2005 were $126,873,000, compared with net sales from continuing operations for 2004 of $118,804,000. All of the Company's operating segments recorded improved results, as compared to 2004. The Power Electronics Group performed well: in 2005, Condor D.C. Power Supplies recorded net sales of $43,233,000 with income from operations of $4,543,000, compared with net sales of $41,457,000 and income from operations of $3,789,000 for 2004; and Teal Electronics recorded net sales of $32,777,000, with income from operations of $4,911,000, compared with net sales of $30,265,000 and income from operations of $4,635,000 for 2004. SL Montevideo Technologies recorded in 2005 net sales of $28,085,000, with income from operations of $3,371,000, compared with net sales of $24,497,000 and income from operations of $2,827,000 for 2004. In 2005, RFL Electronics recorded net sales of $22,778,000, with income from operations of $2,284,000, compared with net sales of $22,585,000 and income from operations of $2,091,000 for 2004. For the three months ended December 31, 2005, net income was $1,667,000, or $.29 per diluted share. Loss from discontinued operations for the period was $74,000, or $.01 per diluted share. Income from continuing operations for the period was $1,741,000, or $.30 per diluted share. For the three months ended December 31, 2004, net income was $1,400,000, or $.25 per diluted share. Loss from discontinued operations for the period was $103,000, or $.02 per diluted share. Income from continuing operations for the period was $1,503,000, or $.27 per diluted share.Net sales from continuing operations for the three months ended December 31, 2005 were $31,060,000, compared with net sales from continuing operations of $30,745,000 for the same period last year. James Taylor, President and Chief Executive Officer of SL Industries, commented, "In 2005, SL increased income from continuing operations by approximately 23%. These results were achieved through the successful implementation of the Company's strategic plan, announced last year. Under that plan, all of SL's divisions are taking action to accelerate growth through the penetration of new markets, extension of product applications, improvement of operations and expansion of global capabilities. I am pleased to report that we made significant progress in all of these categories." "Last year SL Industries continued to reinvest in its business segments. Major achievements at our businesses include: The establishment of a sales office in the United Kingdom and the release of seven new high-density power product platforms by Condor D.C. Power Supplies; the creation of an industrial design facility in Mexico and the development of several new military/aerospace motor designs by SL Montevideo Technologies; the first sale into the Chinese market and the design of new products for the military/aerospace testing marketplace by Teal Electronics; and the introduction of its revolutionary line of transmission line protection relaying and communications products by RFL Electronics. Engineering and product development expenses increased to $9,367,000, which represented approximately 7.4% of net sales in 2005." "SL also took action to secure its financial position. In August, SL entered into a new three-year $30 million credit facility with Bank of America. The new facility provides better terms and greater flexibility than the Company's previous credit line. Moreover, we believe Bank of America will be an outstanding partner and resource as we pursue the Company's worldwide growth objectives." Taylor continued, "Although the strategic plan has set our sights on attaining aggressive growth, the Company has not lost focus on achieving strong profitability. Last year all of the operating subsidiaries generated positive cash flows and recorded excellent returns on invested capital. SL's cash flow from continuing operations increased by $6,665,000, or 147%, to $11,208,000, compared to prior year." Taylor concluded, "As we previously reported, on January 26, 2006, SL completed its cash tender offer for Ault Incorporated. Since the beginning of the year, the management teams at both Ault and Condor D.C. Power Supplies have been working together to effect the integration of the two organizations and to seize new program opportunities. The combined entity, which will be renamed SL Power Electronics Corp., is expected to record aggregate sales of over $90 million. With its global operational footprint, broad customer base and extensive design capabilities, SL Power Electronics Corp. is an outstanding platform for future growth." Warren Lichtenstein, Chairman of the Board of SL Industries added, "We are excited about the direction of our Company. Steel Partners became a major shareholder of SL Industries in 1991. From that time, I have been involved with the Company and I continue to be confident in its long-term future growth. Since taking over from me as CEO in August, Jim Taylor has done an outstanding job to advance SL's strategic plan and objectives." "The Board of Directors has established May 17, 2006 at 10:00 a.m. as the date and time of the 2006 Annual Meeting of Shareholders for shareholders of record on April 3, 2006. We look forward to further reporting on the Company's progress at that time." 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. CONTACT: David R. Nuzzo Chief Financial Officer E-mail: david.nuzzo@slindustries.com Phone: 856-727-1500, extension 5515 SL INDUSTRIES, INC. SUMMARY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, December 31, 2005 2004 ---- ---- ASSETS Current assets: Cash and cash equivalents $9,985 $2,659 Receivables, net 16,436 15,734 Inventories, net 14,570 15,839 Other current assets 3,203 3,758 ------- ------ Total current assets 44,194 37,990 ------- ------ Property, plant and equipment, net 8,754 8,509 Intangible assets, net 11,388 11,512 Other assets 5,978 5,073 ------ ------ Total assets $70,314 $63,084 ====== ====== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Long term debt due within one year $ - $559 Other current liabilities 18,387 17,935 ------ ------ Total current liabilities 18,387 18,494 ------ ------ Long term debt, less portion due within one year - 1,456 Other liabilities 5,282 5,447 Shareholders' equity 46,645 37,687 ------ ------ Total liabilities and shareholders' equity $70,314 $63,084 ====== ====== SL INDUSTRIES, INC CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Three-Months Ended Twelve-Months Ended December 31, December 31, 2005 2004 2005 2004 --------- --------- ---------- ----------- (unaudited) Net sales .................................................... $ 31,060 $ 30,745 $ 126,873 $ 118,804 Cost and expenses: Cost of products sold .................................... 20,420 19,787 81,776 75,582 Engineering and product development ...................... 2,295 2,083 9,367 8,951 Selling, general and administrative ...................... 5,781 6,026 23,546 23,829 Depreciation and amortization ............................ 534 693 1,986 2,133 --------- --------- ---------- ----------- Total costs and expenses ..................................... 29,030 28,589 116,675 110,495 --------- --------- ---------- ----------- Income from operations ....................................... 2,030 2,156 10,198 8,309 Other income (expense): Amortization of deferred financing costs ................. (25) (112) (485) (447) Interest income .......................................... 87 20 216 102 Interest expense ......................................... (137) (140) (522) (347) --------- --------- ---------- ----------- Income from continuing operations before income taxes ........ 1,955 1,924 9,407 7,617 Income tax provision ......................................... 214 421 1,787 1,316 --------- --------- ---------- ----------- Income from continuing operations ............................ 1,741 1,503 7,620 6,301 (Loss) Income from discontinued operations (net of tax) ...... (74) (103) (473) 2,371 --------- --------- ---------- ----------- Net income ................................................... $ 1,667 $ 1,400 $ 7,147 $ 8,672 ========= ========= ========== =========== BASIC NET INCOME (LOSS) PER COMMON SHARE Income from continuing operations ........................ $ 0 31 $ 0 28 $ 1 37 $ 1 10 (Loss) Income from discontinued operations (net of tax) .. (0 01 (0 02 (0 09 0 41 --------- --------- ---------- ----------- Net income ............................................... $ 0 30 $ 0 26 $ 1 29 $ 1 51 ========= ========= ========== =========== DILUTED NET INCOME (LOSS) PER COMMON SHARE Income from continuing operations ........................ $ 0 30 $ 0 27 $ 1 33 $ 1 08 (Loss) Income from discontinued operations (net of tax) .. (0 01 (0 02 (0 08 0 40 --------- --------- ---------- ----------- Net income ............................................... $ 0 29 $ 0 25 $ 1 25 $ 1 48 ========= ========= ========== =========== Shares used in computing basic net income (loss) per common share ........................................... 5,590 5,443 5,544 5,760 Shares used in computing diluted net income (loss) per common share ........................................... 5,770 5,584 5,738 5,871 SL INDUSTRIES, INC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Three-Months Ended Twelve-Months Ended December 31, December 31, 2005 2004 2005 2004 --------- --------- ---------- ---------- (unaudited) Net income $1,667 $1,400 $7,147 $8,672 Other comprehensive income (net of tax): Unrealized gain on securities 121 - 67 - Comprehensive income $1,788 $1,400 $7,214 $8,672 ========= ========= ======== =======
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8-K Filing
SL Industries Inactive 8-KResults of Operations and Financial Condition
Filed: 30 Mar 06, 12:00am