Exhibit 99.1
For Immediate Release
SL INDUSTRIES, INC. ANNOUNCES FINANCIAL RESULTS FOR
ITS FIRST QUARTER ENDED MARCH 31, 2006
MT. LAUREL, NEW JERSEY, MAY 12, 2006 . . . SL INDUSTRIES, INC. (AMEX &
PHLX:SLI) announced today that revenue for the first quarter ended March 31,
2006 was $39,285,000, compared to $32,456,000 for the first quarter last year.
Income from continuing operations was $1,233,000, or $0.21 per diluted share,
compared to income from continuing operations of $1,969,000, or $0.35 per
diluted share, for the same period in 2005. Income from continuing operations in
the first quarter 2005 included the benefit of approximately $267,000, or $0.05
per diluted share, due to research and development tax credits. The Company
recorded research and development tax benefits of $105,000 in the first quarter
2006.
First quarter results include the financial performance of Ault
Incorporated ("Ault") from the date of acquisition (January 26, 2006). Not
including Ault's results, consolidated net sales were $30,680,000, representing
a 5% decline from the first quarter of 2005 and consolidated income from
continuing operations was $1,048,000, representing a 47% decrease from the same
period last year. Loss from discontinued operations was $112,000 for the first
quarter of 2006, compared to a loss from discontinued operations of $70,000 for
the same period last year. As a result, for the period ended March 31, 2006, the
Company recorded net income of $1,121,000, or $0.19 per diluted share, compared
to net income of $1,899,000, or $0.34 per diluted share, for the same period
last year.
The Company reported net new orders of $41,172,000 for the first
quarter of 2006, compared to net new orders of $32,262,000 in the first quarter
of 2005. Backlog at March 31, 2006 was $52.5 million, as compared to $42.0
million a year earlier.
Commenting on the results, James Taylor, President and Chief Executive
Officer of SL Industries, said, "With the exception of Teal Electronics, the
Company's business segments were adversely affected by a four month decrease in
order activity. Teal continued to experience strong demand from medical imaging
equipment manufacturers, as well as from customers in the semiconductor
industry."
"Condor D.C. Power Supplies, SL-Montevideo Technology and RFL
Electronics each experienced weak market demand beginning late in the fourth
quarter 2005 and continuing through February 2006. In March, Condor and RFL
reported increases in bookings and quote activity, which should result in
improved shipments in the second half of the year."
Taylor continued, "SL-Montevideo Technology continues to feel the
impact of the deferrals of certain high volume military aerospace programs. This
has not only reduced sales, but has also decreased manufacturing productivity.
In order to reduce costs in line with second quarter sales forecasts, SL-MTI
recently implemented layoffs at its Montevideo and Matamoros plants."
Taylor added, "I am pleased to report that the acquisition and
integration of Ault into the SL Power Electronics Group has gone well and is
ahead of schedule. In fact, in the first quarter, Ault reported its first
operating profit in over four years."
Taylor concluded, "The Board of Directors has established May 17, 2006
as the date of the Annual Shareholders Meeting for shareholders of record on
April 3, 2006. The meeting will be held at the Warwick Hotel in New York at
10:00 a.m. We look forward to discussing the Company's businesses with our
shareholders at that time."
ABOUT SL INDUSTRIES
SL Industries, Inc. designs, manufactures and markets power
electronics, power motion, power protection, teleprotection and communications
equipment and systems that is used in a variety of medical, aerospace, computer,
datacom, industrial, telecom, transportation and electric power utility
equipment applications. For more information about SL Industries, Inc. and its
products, please visit the Company's web site 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 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 filings and reports with the Securities and Exchange
Commission. 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, Secretary & Treasurer
E-mail: DAVID.NUZZO@SLINDUSTRIES.COM
Phone: 856-727-1500, ext. 5515
Facsimile: 856-727-1683
SL INDUSTRIES, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2006 2005
---- ----
(Unaudited)
-----------
ASSETS
Current assets:
Cash and cash equivalents $ -- $ 9,985
Receivables, net 24,218 16,436
Inventories, net 20,266 14,570
Other current assets 4,595 3,203
------- -------
Total current assets 49,079 44,194
------- -------
Property, plant and equipment, net 11,150 8,754
Intangible assets, net 17,862 11,388
Other assets 9,015 5,978
------- -------
Total assets $87,106 $70,314
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LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Long term debt due within one year $ -- $ --
Other current liabilities 26,037 18,387
------- -------
Total current liabilities 26,037 18,387
------- -------
Long term debt, less portion due within one year 7,973 --
Other liabilities 5,153 5,282
Shareholders' equity 47,943 46,645
------- -------
Total liabilities and shareholders' equity $87,106 $70,314
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SL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three-Months Ended
March 31,
2006 2005
--------- ---------
Net sales .............................................. $ 39,285 $ 32,456
Cost and expenses:
Cost of products sold .............................. 26,133 20,595
Engineering and product development ................ 3,079 2,323
Selling, general and administrative ................ 7,557 6,327
Depreciation and amortization ...................... 591 474
-------- --------
Total costs and expenses ............................... 37,360 29,719
-------- --------
Income from operations ................................. 1,925 2,737
Other income (expense):
Amortization of deferred financing costs ........... (22) (112)
Interest income .................................... 28 29
Interest expense ................................... (129) (88)
-------- --------
Income from continuing operations before income taxes .. 1,802 2,566
Income tax provision ................................... 569 597
-------- --------
Income from continuing operations ...................... 1,233 1,969
Loss from discontinued operations (net of tax) ......... (112) (70)
-------- --------
Net income ............................................. $ 1,121 $ 1,899
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BASIC NET INCOME (LOSS) PER COMMON SHARE
Income from continuing operations ............... $ 0.22 $ 0.36
Loss from discontinued operations (net of tax) .. (0.02) (0.01)
-------- --------
Net income ...................................... $ 0.20 $ 0.35
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DILUTED NET INCOME (LOSS) PER COMMON SHARE
Income from continuing operations ............... $ 0.21 $ 0.35
Loss from discontinued operations (net of tax) .. (0.02) (0.01)
-------- --------
Net income ...................................... $ 0.19 $ 0.34
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Shares used in computing basic net income (loss)
per common share .................................. 5,608 5,473
Shares used in computing diluted net income (loss)
per common share .................................. 5,788 5,624
SL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
Three-Months Ended
March 31,
2006 2005
--------- ---------
Net income .......................................... $ 1,121 $ 1,899
Other comprehensive income (net of tax):
Foreign currency translation ................ 6 --
Investments available for sale............... (67) 13
-------- --------
Comprehensive income................................. $ 1,060 $ 1,912
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