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SL Industries First Quarter Results, 2005May 10, 2005 SL Industries, Inc. Announces Financial Results for Its First Quarter Ended March 31, 2005 MT. LAUREL, NEW JERSEY, May 10, 2005--SL INDUSTRIES, INC. (AMEX & PHLX:SLI) announced today that revenue for the first quarter ended March 31, 2005 was $32,456,000, compared to $26,641,000 for the first quarter last year. Income from continuing operations was $1,969,000, or $0.35 per diluted share, compared to income from continuing operations of $685,000, or $0.11 per diluted share, for the same period in 2004. Income from continuing operations benefited by approximately $257,000, or $0.05 per diluted share, due to current and prior year research and development tax credits recorded during the first quarter 2005. In addition, loss from discontinued operations was $70,000 for the first quarter of 2005, compared to income from discontinued operations of $2,457,000 for the same period last year. As a result, the Company recorded net income of $1,899,000, or $0.34 per diluted share, for the first quarter of 2005, compared to net income of $3,142,000, or $0.52 per diluted share, for the same period last year. The results from discontinued operations in the first quarter of 2004 primarily represent the receipt of settlement fees in connection with the Company's dismissed lawsuit with American Power Conversion Corporation. The Company reported net new orders of $32,262,000 in the first quarter of 2005, compared to net new orders of $31,540,000 in the first quarter of 2004. Backlog at March 31, 2005 was $42.0 million, as compared to $43.2 million a year earlier. Commenting on the results, Warren Lichtenstein, Chairman and Chief Executive Officer of SL Industries, said, "The Company's business segments benefited from continued strong demand in their served markets. Within the Power Electronics Group, Condor reported increased orders from medical equipment manufacturers and from distributors. Teal also encountered steady demand in its medical niches." "SL Montevideo Technology performed well. Sales to the military aerospace industry recorded continued growth, while sales to the commercial aerospace sector has not yet shown signs of renewed economic activity." Lichtenstein continued, "After experiencing weak demand in its power utility market for the past two years, RFL Electronics reported sharply improved activity in the first quarter. It continues to be difficult to forecast short-term demand; however, we have been encouraged by a sharp increase in requests for quotes from international markets, particularly for RFL's new product line. Several of these products are now being tested by U.S. customers." Lichtenstein concluded, "The Board of Directors has established May 25, 2005 as the date of the Annual Shareholders Meeting for shareholders of record on April 14, 2005. 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. SL INDUSTRIES, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2005 2004
----------- ------------
(Unaudited)
-----------
ASSETS
Cash and cash equivalents $1,926 $2,659
Marketable securities 433 -
Accounts and notes receivables, net 17,611 15,734
Inventories, net 15,248 15,839
Other current assets 4,198 3,758
----------- ------------
Total current assets 39,416 37,990
----------- ------------
Property, plant and equipment, net 8,379 8,509
Intangible assets, net 11,484 11,512
Other assets 4,636 5,073
----------- ------------
Total assets $63,915 $63,084
=========== ============
Long term debt due within one year $1,828 $559
Other current liabilities 16,773 17,935
Long term debt, less portion due within one
year - 1,456
Other liabilities 5,375 5,447
Shareholders' equity 39,939 37,687
----------- ------------
Total liabilities and shareholders'
equity $63,915 $63,084
=========== ============
SL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three-Months Ended
March 31,
2005 2004
--------- ---------
Net sales $32,456 $26,641
Cost and expenses:
Cost of products sold 20,595 17,045
Engineering and product development 2,323 2,208
Selling, general and administrative 6,327 5,720
Depreciation and amortization 474 474
--------- ---------
Total costs and expenses 29,719 25,447
--------- ---------
Income from operations 2,737 1,194
Other income (expense):
Amortization of deferred financing costs (112) (112)
Interest income 29 43
Interest expense (88) (89)
--------- ---------
Income from continuing operations before income
taxes 2,566 1,036
Income tax provision 597 351
--------- ---------
Income from continuing operations 1,969 685
Income (loss) from discontinued operations (net of
tax) (70) 2,457
--------- ---------
Net income $1,899 $3,142
========= =========
Basic net income (loss) per common share
Income from continuing operations $0.36 $0.12
Income (loss) from discontinued operations (net
of tax) (0.01) 0.41
--------- ---------
Net income $0.35 $0.53
========= =========
Diluted net income (loss) per common share
Income from continuing operations $0.35 $0.11
Income (loss) from discontinued operations (net
of tax) (0.01) 0.41
--------- ---------
Net income $0.34 $0.52
========= =========
Shares used in computing basic net income (loss)
per common share 5,473 5,939
Shares used in computing diluted net income (loss)
per common share 5,624 6,032
SL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(unaudited)
Three-Months Ended
March 31,
2005 2004
--------- --------
Net income $1,899 $3,142
Other comprehensive income, net of tax:
Unrealized gain on securities 13 -
--------- --------
Comprehensive income $1,912 $3,142
========= ========
Contact: SL Industries, Inc. Source: SL Industries, Inc.
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