 |
 |
|
|
|
|
 |
|
|
 |
|
|
||||||||||||
|
|
||||||||||||
|
|
|
 |
SL Industries Third Quarter Results, 2005November 9, 2005 SL Industries, Inc. Announces Financial Results for Its Third Quarter Ended June 30, 2005 MT. LAUREL, N.J.--(BUSINESS WIRE)--Nov. 9, 2005--SL INDUSTRIES, INC. (AMEX & PHLX:SLI) announced today that net sales for the third quarter ended September 30, 2005 was $32,098,000, compared to $30,910,000 for the third quarter last year, an increase of $1,188,000, or 3.8%. Net income from continuing operations was $2,552,000, or $0.44 per diluted share, compared to net income from continuing operations of $2,554,000 or $0.43 per diluted share, for the same period in 2004. In the third quarter of 2004, net income from continuing operations benefited by approximately $1,026,000, or $0.17 per diluted share, due to research and development tax credit carry-forwards recorded during the period. Net sales from continuing operations for the nine months ended September 30, 2005 were $95,813,000, compared to net sales of $88,059,000 for the nine months ended September 30, 2004, an increase of $7,754,000, or 8.8%. Net income from continuing operations for the nine months ended September 30, 2005 was $5,879,000, or $1.03 per diluted share, compared to net income from continuing operations of $4,799,000, or $0.80 per diluted share, for the same period last year. In 2004, net income from continuing operations benefited by approximately $1,252,000, or $0.21 per diluted share, due to research and development tax credits recorded during 2004. Net income for the nine months ended September 30, 2005 was $5,481,000, or $0.96 per diluted share, compared to net income of $7,272,000, or $1.22 per diluted share, for the same period in 2004. Included in net income for 2004 was the receipt of settlement proceeds in connection with the Company’s dismissed lawsuit with American Power Conversion Corporation. The settlement proceeds were recorded in the first quarter and were reported as part of discontinued operations. All of the Company’s four business segments reported improved results from the first nine months of the prior year. Condor D.C. Power Supplies, Inc. recorded net sales of $33,001,000 and operating income of $3,260,000, as compared to net sales of $30,966,000 and operating income of $2,758,000 for the same period in 2004. Teal Electronics Corp. recorded net sales of $24,077,000 and operating income of $3,725,000, as compared to net sales of $23,194,000 and operating income of $3,719,000 for the same period last year. SL Montevideo Technologies, Inc. recorded net sales of $21,120,000 and operating income of $2,941,000, as compared to net sales of $17,381,000 and operating income of $1,846,000 for the first nine months of 2004. RFL Electronics Inc. recorded net sales of $17,615,000 and operating income of $1,862,000, as compared to net sales of $16,518,000 and operating income of $1,332,000 for the same period last year. Engineering and product development expenses for the first nine months of 2005 increased by $204,000, or approximately 3%, as compared to the same period last year. Other than RFL Electronics, all of the Company’s business segments increased their engineering and product development expenditures in 2005. RFL Electronics incurred significant costs in 2004 related to the development of several new product designs and applications. The Company reported net new orders of $29.7 million in the third quarter of 2005, compared to net new orders of $35.6 million in the third quarter of 2004. Net new orders for the nine-month period ended September 30, 2005 decreased $4.8 million from the same period last year. Backlog at September 30, 2005 was $40.0 million, as compared to $48.5 million a year earlier. Commenting on the results, James Taylor, Chief Executive Officer and President of SL Industries, Inc. said, “We achieved solid financial results over the first nine months of the year in all of the Company’s business segments. In the Power Electronics Group, continued demand by medical equipment manufacturers drove strong year-to-date sales. Condor D.C. Power Supplies did experience some weakness in demand from industrial equipment manufacturers and electronic and electrical distributors in the third quarter, which reduced its overall rate of growth. During the quarter, however, Condor began active operations of its newly established sales subsidiary in the United Kingdom, which we believe will quickly result in significant new sales to international customers.” “Teal Electronics continued to perform at record levels over the quarter and the year, driven primarily by sales to medical equipment manufacturers. While Teal experienced mild activity in the semiconductor sector, recent reports suggest increased activity in that industry over the next several quarters. Teal is also making excellent progress to reduce its production costs, notwithstanding recent high prices for its raw materials.” Taylor continued, “SL Montevideo Technology reported strong sales, primarily into the defense-related aerospace market. However, increased demand was also reported for industrial and commercial aerospace customers. SL-MTI is in the process of expanding its production capacity and industrial design capabilities at its facility in Matamoros, Mexico, which should improve its ability to reduce costs and compete in new markets.” “After a strong first half, RFL Electronics reported reduced demand for it telecommunications products in the third quarter. In addition, a strike at one of its major customers postponed a significant program during the period. Nevertheless, RFL has done an excellent job to contain its cost structure in line with current sales activity, while continuing to improve and roll-out its extensive new line of teleprotection and carrier communications products.” “Corporate and other expenses, which relate to corporate administration, strategic management and oversight, capital financing, risk management, corporate governance and controls, legal and litigation activities and public reporting expenses were $3,619,000 for the nine months ended September 30, 2005, as compared to $3,502,000 for the same period in 2004.” Taylor concluded, “The Company also continued to improve its cash position during the year. For the nine months of the year, cash flow from operations was $6,901,000, compared to $2,905,000 for the same period in 2004. On November 7, 2005, SL’s cash balance equaled $10,411,000, after paying down $2,015,000 to retire its former revolving loan facility. The Company currently has no debt under its new bank credit facility.”
About SL Industries, Inc. 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 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 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: Source: SL Industries, Inc.
|
|
