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SL Industries First Quarter Results, 2006May 12, 2006 SL Industries, Inc. Announces Financial Results for Its First Quarter Ended March 31, 2006 MT. LAUREL, N.J.--(BUSINESS WIRE)--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: SL Industries, Inc. Source: SL Industries, Inc.
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