1 UNITED STATES SECURITIES & EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K/A ANNUAL REPORT [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 AMENDMENT #1 FOR THE FISCAL YEAR ENDED JULY 31, 1996 FORM 11-K FOR SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN SL INDUSTRIES, INC. 520 FELLOWSHIP ROAD, SUITE A-114 MT. LAUREL, NJ 08054 (Name & address of Principal Executive Offices of the issuer of the Securities) 21-0682685 (I.R.S. Employer Identification No.) DOCUMENTS INCORPORATED BY REFERENCE: COMPANY'S FORM S-8 REGISTRATION STATEMENT (FILE NO. 33-31805) 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized. SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN /s/ James E. Morris --------------------------- James E. Morris Plan Administrator January 27, 1997 3 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN INDEX TO FINANCIAL STATEMENTS AND SCHEDULES Pages ----- Report of Independent Public Accountants - Arthur Andersen LLP 4 Financial Statements: Statements of Net Assets Available for Plan Benefits, July 31, 1996 and 1995 5-6 Statements of Changes in Net Assets Available for Plan Benefits for the years ended July 31, 1996 and 1995 7-8 Notes to Financial Statements 9-12 Supplemental Schedules: Schedules of Assets Held for Investment Purposes - July 31, 1996 and 1995 13-14 Schedule of Reportable Transactions for the year ended July 31, 1996 15 Consent of Independent Public Accountants - Arthur Andersen LLP 16 4 ARTHUR ANDERSEN LLP REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Plan Administrator SL Industries, Inc. Savings and Pension Plan: We have audited the accompanying statements of net assets available for plan benefits of the SL Industries, Inc. Savings and Pension Plan as of July 31, 1996 and 1995 and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements and the schedules referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits as of July 31, 1996 and 1995 and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the accompanying index are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statements of net assets available for the plan benefits and the statements of changes in net assets available for plan benefits are presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic statements taken as a whole. /s/ Arthur Andersen LLP Philadelphia, Pa., January 17, 1997 5 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS July 31, 1996 SL Industries Index Diversified Inc. Loan Stable Value Balanced Stock Stock Common to Fund Fund Fund Fund Stock Participants Combined ---------- -------- -------- ---------- ---------- ------------ ---------- NET ASSETS Investments $3,954,508 $882,270 $603,669 $1,203,910 $1,866,532 $ -- $8,510,889 Participant loans receivable -- -- -- -- -- 321,955 321,955 Contributions receivable: Employer 89,287 32,787 23,002 40,517 16,130 -- 201,723 Participants 22,183 9,522 7,006 10,783 14,159 -- 63,653 ---------- -------- -------- ---------- ---------- -------- ---------- TOTAL NET ASSETS AVAILABLE FOR PLAN BENEFITS $4,065,978 $924,579 $633,677 $1,255,210 $1,896,821 $321,955 $9,098,220 ========== ======== ======== ========== ========== ======== ========== NET ASSETS AVAILABLE FOR PLAN BENEFITS Active participants $1,836,681 $767,508 $392,800 $ 862,232 $1,457,271 $227,946 $5,544,438 Separated participants 2,229,297 157,071 240,877 392,978 439,550 94,009 3,553,782 ---------- -------- -------- ---------- ---------- -------- ---------- TOTAL NET ASSETS AVAILABLE FOR PLAN BENEFITS $4,065,978 $924,579 $633,677 $1,255,210 $1,896,821 $321,955 $9,098,220 ========== ======== ======== ========== ========== ======== ========== NOTE: The accompanying notes are an integral part of these financial statements. 6 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS JULY 31, 1995 SL Industries, Index Diversified Inc. Loans Stable Value Balanced Stock Stock Common to Fund Fund Fund Fund Stock Participants Combined ---------- -------- -------- -------- ---------- ------------ --------- NET ASSETS Investments $3,981,648 $650,784 $440,789 $947,474 $1,148,993 $ -- $7,169,688 Participant loans receivable -- -- -- -- -- 172,066 172,066 Contributions receivable: Employer 88,317 27,299 16,581 34,205 19,172 -- 185,574 Participants 23,258 9,142 4,826 10,594 3,087 -- 50,907 ---------- -------- -------- -------- ---------- -------- ---------- TOTAL NET ASSETS AVAILABLE FOR PLAN BENEFITS $4,093,223 $687,225 $462,196 $992,273 $1,171,252 $172,066 $7,578,235 ========== ======== ======== ======== ========== ======== ========== NET ASSETS AVAILABLE FOR PLAN BENEFITS Active participants $2,043,405 $587,264 $357,802 $663,292 $ 932,803 $153,098 $4,737,664 Separated participants 2,049,818 99,961 104,394 328,981 238,449 18,968 2,840,571 ---------- -------- -------- -------- ---------- -------- ---------- TOTAL NET ASSETS AVAILABLE FOR PLAN BENEFITS $4,093,223 $687,225 $462,196 $992,273 $1,171,252 $172,066 $7,578,235 ========== ======== ======== ======== ========== ======== ========== NOTE: The accompanying notes are an integral part of these financial statements. 7 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDING JULY 31, 1996 Index Diversified Stable Value Balanced Stock Stock Fund Fund Fund Fund ----------- -------- -------- ---------- ADDITIONS: Interest and dividend income $ 265,033 $ 22,923 $ 7,638 $ 18,694 Contributions: Employer 89,287 32,787 23,002 40,517 Participant 278,441 132,435 82,706 140,353 Net appreciation of investments -- 46,121 66,435 133,736 Loan repayments 55,062 12,384 14,321 30,324 Transfers (223,717) 49,002 13,810 147,707 ----------- -------- -------- ---------- TOTAL ADDITIONS 464,106 295,652 207,912 511,331 ----------- -------- -------- ---------- DEDUCTIONS: Retirement benefits, administrative and termination costs, etc 353,485 20,823 23,304 164,182 Loans to participants 137,866 37,475 13,127 84,212 ----------- -------- -------- ---------- TOTAL DEDUCTIONS 491,351 58,298 36,431 248,394 ----------- -------- -------- ---------- Net additions (deductions) in net assets available for plan benefits (27,245) 237,354 171,481 262,937 Net assets available for plan benefits at beginning of year 4,093,223 687,225 462,196 992,273 ----------- -------- -------- ---------- Net assets available for plan benefits at end of year $ 4,065,978 $924,579 $633,677 $1,255,210 =========== ======== ======== ========== SL Industries, Inc. Loans Common to Stock Participants Combined ---------- ------------ ---------- ADDITIONS: Interest and dividend income $ 13,116 $ -- $ 327,404 Contributions: Employer 153,677 -- 339,270 Participant 46,174 -- 680,109 Net appreciation of investments 564,851 -- 811,143 Loan repayments 8,373 (120,464) -- Transfers 13,198 -- -- ---------- --------- ---------- TOTAL ADDITIONS 799,389 (120,464) 2,157,926 ---------- --------- ---------- DEDUCTIONS: Retirement benefits, administrative and termination costs, etc 65,870 10,277 637,941 Loans to participants 7,950 (280,630) -- ---------- --------- ---------- TOTAL DEDUCTIONS 73,820 (270,353) 637,941 ---------- --------- ---------- Net additions (deductions) in net assets available for plan benefits 725,569 149,889 1,519,985 Net assets available for plan benefits at beginning of year 1,171,252 172,066 7,578,235 ---------- --------- ---------- Net assets available for plan benefits at end of year $1,896,821 $ 321,955 $9,098,220 ========== ========= ========== NOTE: The accompanying notes are an integral part of these financial statements. 8 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDING JULY 31, 1995 Index Diversified Stable Value Balanced Stock Stock Fund Fund Fund Fund ---------- --------- --------- --------- ADDITIONS: Interest and dividend income $ 276,234 $ 10,944 $ 3,318 $ 7,858 Contributions: Employer 88,317 27,299 16,581 34,205 Participant 261,126 119,003 73,535 122,549 Net appreciation of investments -- 68,636 84,402 159,947 Loan repayments 39,352 8,430 9,391 21,622 Transfers 84,332 (10,541) (62,895) (6,504) ---------- --------- --------- --------- TOTAL ADDITIONS 749,361 223,771 124,332 339,677 ---------- --------- --------- --------- DEDUCTIONS: Retirement benefits, administrative and termination costs, etc 289,270 20,321 4,374 2,970 Loans to participants 56,596 13,150 973 12,592 ---------- --------- --------- --------- TOTAL DEDUCTIONS 345,866 33,471 5,347 15,562 ---------- --------- --------- --------- Net additions (deductions) in net assets available for plan benefits 403,495 190,300 118,985 324,115 Net assets available for plan benefits at beginning of year 3,689,728 496,925 343,211 668,158 ---------- --------- --------- --------- Net assets available for plan benefits at end of year $4,093,223 $ 687,225 $ 462,196 $ 992,273 ========== ========= ========= ========= SL Industries, Inc. Loans Common to Stock Participants Combined ----------- ------------ ---------- ADDITIONS: Interest and dividend income $ 13,137 $ -- $ 311,491 Contributions: Employer 129,763 -- 296,165 Participant 34,359 -- 610,572 Net appreciation of investments 262,960 -- 575,945 Loan repayments 2,642 (81,437) -- Transfers (4,392) -- -- ----------- --------- ---------- TOTAL ADDITIONS 438,469 (81,437) 1,794,173 ----------- --------- ---------- DEDUCTIONS: Retirement benefits, administrative and termination costs, etc 21,193 4,190 342,318 Loans to participants -- (83,311) -- ----------- --------- ---------- TOTAL DEDUCTIONS 21,193 (79,121) 342,318 ----------- --------- ---------- Net additions (deductions) in net assets available for plan benefits 417,276 (2,316) 1,451,855 Net assets available for plan benefits at beginning of year 753,976 174,382 6,126,380 ----------- --------- ---------- Net assets available for plan benefits at end of year $ 1,171,252 $ 172,066 $7,578,235 =========== ========= ========== NOTE: The accompanying notes are an integral part of these financial statements. 9 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN NOTES TO FINANCIAL STATEMENTS 1. Description of Plan and Summary of Significant Accounting Policies Description of Plan: SL Industries, Inc. Savings and Pension Plan (the "Plan"), originally adopted May 1, 1976, is a defined contribution savings and pension plan covering substantially all non-union employees of SL Industries, Inc. who have completed one year of service. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Participants should refer to the Summary Plan Description for more complete information with respect to the provisions of the Plan. Investments: As part of the Plan provisions, participants may invest in SL Industries, Inc. Common Stock ("Common Stock") and/or in various combinations of four funds: Stable Value Fund, Balanced Fund, Indexed Stock Fund, and Diversified Stock Fund. All income, gains or other amounts from any investment are reinvested in the same investment from which they are received. The amounts are then allocated, as appropriate, to each Participant's account balance. The Stable Value Fund represents deposit contracts with John Hancock Mutual Life Insurance Company. Contributions are maintained in a pooled account. The account is credited with earnings on the underlying investments at rates guaranteed by the contracts and charged for Plan withdrawals. The financial statements reflect the contract value as reported by John Hancock as of the Plan year-end. The remaining funds are all John Hancock separate investment accounts and are carried at market value as reported by John Hancock as of the Plan year-end. The fair value of the SL Industries, Inc. Common Stock is based on the market price as quoted in the New York Stock Exchange on the Plan year-end. The Plan presents in the statement of changes in net assets the net appreciation in investments which consists of the realized gains or losses and the unrealized appreciation of those investments. Interest and dividend income are recorded as earned on an accrual basis. 10 Contributions: Elective Contributions: Employees' contributions are based upon authorized payroll withholdings. Participants may make elective deferrals of up to 20% of their annual base compensation. Matching Employer Contributions: The employer's match is twenty-five percent (25%) of the participant's elective deferrals, not to exceed two percent (2%) of participant's compensation. Matching employer contributions are invested solely in Common Stock of SL Industries, Inc. Profit Sharing Contributions: A profit sharing contribution is made annually to all Plan participants who have a credited year of service during the Plan year and is equal to two percent (2%) of the participant's W-2 wages, up to a maximum of $150,000, for the previous calendar year. This is a discretionary contribution determined by resolution of the Board of Directors. Profit sharing contributions are invested in accordance with the election of each participant. Benefits: At the time of separation, the vested portion of a participant's account represents the participant's accumulated benefit. At the end of a break in service year, as defined under the Plan, a participant may elect to: (1) continue to invest their accumulated benefit in the Plan until their normal retirement date at which time the value of their account will be utilized to purchase an annuity; (2) receive payment in one lump sum; or (3) to have any portion paid directly to an eligible retirement plan specified by the distributee in a direct rollover. At the normal retirement date, age 65, a participant may elect to receive their retirement benefit in one lump sum payment, in various types of installments, or in the form of a qualified joint and survivor annuity. The amount of benefit payment depends on the value of the participant's account and the retirement benefit option the participant elects. Vesting: Participants become immediately vested in their elective deferral contributions plus actual earnings and their employer's profit sharing contributions. Employer matching contributions become vested as follows: 11 Percentage Years of Service Vested ---------------- ------ Five years or more 100% Four years or more, but less than five years 75% Three years or more, but less than four years 50% Less than three years 0% In determining years of service for vesting, the Plan considers service from the participant's date of hire. The nonvested portion of a participant's account, if any, will be forfeited after a one year break in service. Forfeitures will be allocated to the remaining participants' accounts on a prorata basis as defined by the Plan. Participant Loans: The Plan may make loans to a participant, taking as collateral the participant's account balance. The minimum loan amount is $500 and may not exceed the lesser of $50,000 or 50% of the participant's vested account balance. All loans bear interest at prime rate plus one percent compiled as of the loan origination date. Loans are repayable over a twelve to sixty month term. The interest rates on the participant loans receivable on the accompanying statements of net assets available for plan benefits for July 31, 1996 and 1995 range from 9.25% to 9.75%. Voting Rights: Effective August 1, 1992, the Plan was amended to provide participants with certain voting and other rights in connection with SL Industries, Inc. Common Stock held in their accounts under the Plan. During previous years, participants did not have these rights. 2. Plan Termination While SL Industries, Inc. has not expressed any intent to do so, it may terminate the Plan at any time, subject to the penalties set forth in ERISA, as amended. In the event of such Plan termination, participants will become 100% vested in their accounts. 3. Reconciliation to Form 5500 As of July 31, 1996 and 1995, the Plan had approximately $158,000 and $253,000, respectively, of pending distributions to participants who elected to withdraw from the Plan. These amounts are recorded as a liability in the 12 Plan's Form 5500; however, these amounts are not recorded as a liability in the accompanying statements of net assets available for plan benefits in accordance with generally accepted accounting principles. The following table reconciles net assets available for Plan benefits per the financial statements to the Form 5500 as filed by the Company for the years ended July 31, 1996 and 1995: Net Assets Available for Plan Benefits ----------------- Benefits Payable to Benefits July 31, July 31, Participant Paid 1996 1995 --------- --------- ----------- ----------- Per financial statements $ 0 $ 636,000 $ 9,098,000 $ 7,578,000 Accrued benefit payments 158,000 158,000 (158,000) (253,000) Reversal of 1995 accrual for benefit payments 0 (253,000) 0 0 --------- --------- ----------- ----------- Per Form 5500 $ 158,000 $ 541,000 $ 8,940,000 $ 7,325,000 ========= ========= =========== =========== 4. Administrative Expenses Administrative expenses of the Plan are paid by SL Industries, Inc., with the exception of asset management fees related to certain deposit contracts held with the insurance company which are paid by the Plan. Total asset management fees expensed in fiscal 1996 were $2,290 and in fiscal 1995 were $4,876. 5. Tax Status The Internal Revenue Service has issued a ruling that the Plan meets the requirements for qualification pursuant to Section 401(a) of the Internal Revenue Code (the "Code") and that the Plan is exempt from federal income taxes under Section 501(a) of the Code. Management believes to be operating the Plan in accordance with the Code. Accordingly, there is no provision for income taxes in the accompanying financial statements. 13 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES FORM 5500 ITEM 27(a) JULY 31, 1996 A. Party in Interest B. Identity of Issuer C. Description of Asset D. Cost E. Current Value - -------------------- --------------------- ----------------------- ------- ---------------- * SL Industries, Inc. Common Stock $1,115,576 $1,866,532 * John Hancock Mutual Life Insurance Company Guaranteed investment Contracts $3,954,508 $3,954,508 (#6315, #7494, #7960 and #8583) * John Hancock Mutual Life Insurance Company Common Trust Fund - Balanced Fund $728,393 $882,270 * John Hancock Mutual Life Insurance Company Common Trust Fund - Indexed Stock Fund $397,011 $603,669 * John Hancock Mutual Life Insurance Company Common Trust Fund - Diversified Stock Fund $1,011,034 $1,203,910 * John Hancock Mutual Life Insurance Company Loans Receivable $321,955 $321,955 (interest ranges from 9.25% to 9.75%) * Indicates party known to be a party in interest. 14 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES FORM 5500 ITEM 27(a) July 31, 1995 A. Party in Interest B. Identity of Issuer C. Description of Asset D. Cost E. Current Value - -------------------- --------------------- ----------------------- ------- ---------------- * SL Industries, Inc. Common Stock $954,357 $1,148,993 * John Hancock Mutual Life Insurance Company Guaranteed investment Contracts $3,981,648 $3,981,648 (#5932, #5989, #6315 and #7494) * John Hancock Mutual Life Insurance Company Common Trust Fund - Balanced Fund $571,341 $650,784 * John Hancock Mutual Life Insurance Company Common Trust Fund - Indexed Stock Fund $325,298 $440,789 * John Hancock Mutual Life Insurance Company Common Trust Fund - Diversified Stock Fund $675,822 $947,474 * John Hancock Mutual Life Insurance Company Loans Receivable $172,066 $172,066 (interest ranges from 8.25% to 9.75%) * Indicates party known to be a party in interest. 15 SL INDUSTRIES, INC. SAVINGS AND PENSION PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FORM 5500 ITEM 27(d) FOR THE YEAR ENDING JULY 31, 1996 IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PURCHASE PRICE SELLING PRICE COST OF ASSET NET GAIN (LOSS) -------------------------- -------------------- -------------- ------------- ------------- --------------- John Hancock Mutual Life Insurance Company Guaranteed Investment Contracts $367,728 $367,728 N/A John Hancock Mutual Life Insurance Company Guaranteed Investment Contracts $577,202 $577,202 N/A 16 ARTHUR ANDERSEN LLP CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report dated January 17, 1997, included in this Form 10-K/A for the year ended July 31, 1996 into the company's previously filed Registration Statement No. 33-31805 on Form S-8. /s/ Arthur Andersen LLP Philadelphia, Pa., January 27, 1997