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
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Total current assets 44,194 37,990
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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
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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
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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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