EX-99.1 3 a04-3737_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

NEWS RELEASE

 

 

March 23, 2004

Torrance, California

 

Summa Reports 2nd Quarter Earnings

 

Summa Industries (Nasdaq NM:SUMX) reports net income of $453,000, or $.06 per share, on sales of $26,545,000 for the three months ended February 29, 2004, versus net income of $687,000, or $.11 per share, on sales of $27,562,000 for the three months ended February 28, 2003.

 

 

 

Three months ended

 

 

 

Feb 29, 2004

 

Feb 28, 2003

 

Sales

 

$

26,545,000

 

$

27,562,000

 

Net income

 

$

453,000

 

$

687,000

 

Diluted earnings per share

 

$

.06

 

$

.11

 

 

Earnings were adversely affected by a non-recurring charge to interest expense of $266,000, or $.04 per share, for term loan breakup fees and the write-off of unamortized bank fees in connection with a new banking relationship.

 

A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Tuesday, March 23.  The call-in number is (800) 915-4836.  The conference call will also be simulcast and archived by www.vcall.com.

 

Summa Industries manufactures proprietary engineered plastic products for a broad spectrum of industrial and commercial markets.  The Company has manufacturing facilities across North America.  Products, many of which are unique or patented, are shipped to customers worldwide.

 

For further information, contact Jim Swartwout, (310) 792-7024; Fax (310) 792-7079; www.summaindustries.com; or ir@summaindustries.com.

 

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Summa Industries

CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

February 28, 2003

 

August 31, 2003

 

February 29, 2004

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

462,000

 

$

380,000

 

$

147,000

 

Accounts receivable

 

17,285,000

 

15,729,000

 

17,669,000

 

Inventories

 

11,928,000

 

11,645,000

 

13,828,000

 

Prepaid expenses and other

 

3,246,000

 

2,710,000

 

3,108,000

 

 

 

 

 

 

 

 

 

Total current assets

 

32,921,000

 

30,464,000

 

34,752,000

 

Property, plant and equipment, net

 

26,769,000

 

26,112,000

 

27,967,000

 

Goodwill and other assets, net

 

12,483,000

 

11,940,000

 

11,896,000

 

 

 

 

 

 

 

 

 

Total assets

 

$

72,173,000

 

$

68,516,000

 

$

74,615,000

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

5,440,000

 

$

5,302,000

 

$

5,871,000

 

Accrued liabilities

 

5,012,000

 

5,015,000

 

4,211,000

 

Current maturities of long-term debt

 

4,597,000

 

3,896,000

 

2,110,000

 

 

 

 

 

 

 

 

 

Total current liabilities

 

15,049,000

 

14,213,000

 

12,192,000

 

Long-term debt, net of current maturities

 

19,187,000

 

16,219,000

 

21,818,000

 

Other long-term liabilities

 

2,637,000

 

2,601,000

 

2,585,000

 

Manditorily redeemable convertible preferred stock

 

5,735,000

 

6,103,000

 

6,472,000

 

Minority interest in subsidiary

 

—

 

—

 

400,000

 

Total stockholders’ equity

 

29,565,000

 

29,380,000

 

31,148,000

 

 

 

 

 

 

 

 

 

Total

 

$

72,173,000

 

$

68,516,000

 

$

74,615,000

 

 

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Summa Industries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three months ended

 

Six months ended

 

 

 

Feb 28, 2003

 

Feb 29, 2004

 

Feb 28, 2003

 

Feb 29, 2004

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

27,562,000

 

$

26,545,000

 

$

56,110,000

 

$

52,471,000

 

Cost of sales

 

20,833,000

 

20,256,000

 

41,957,000

 

39,811,000

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

6,729,000

 

6,289,000

 

14,153,000

 

12,660,000

 

Selling, general, administrative and other expenses

 

5,348,000

 

5,038,000

 

10,613,000

 

9,858,000

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,381,000

 

1,251,000

 

3,540,000

 

2,802,000

 

Interest expense

 

373,000

 

584,000

 

778,000

 

889,000

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes and cumulative effect of a change in accounting principle

 

1,008,000

 

667,000

 

2,762,000

 

1,913,000

 

Provision for income taxes

 

321,000

 

214,000

 

920,000

 

630,000

 

 

 

 

 

 

 

 

 

 

 

Income before cumulative effect of a change in accounting principle

 

687,000

 

453,000

 

1,842,000

 

1,283,000

 

Cumulative effect of a change in accounting principle

 

—

 

—

 

(22,343,000

)

—

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

687,000

 

$

453,000

 

$

(20,501,000

)

$

1,283,000

 

 

 

 

 

 

 

 

 

 

 

Preferred stock accretion

 

$

185,000

 

$

185,000

 

$

369,000

 

$

369,000

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders:

 

 

 

 

 

 

 

 

 

before cumulative effect of a change in accounting principle

 

$

502,000

 

$

268,000

 

$

1,473,000

 

$

914,000

 

after cumulative effect of a change in accounting principle

 

$

502,000

 

$

268,000

 

$

(20,870,000

)

$

914,000

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share before cumulative effect of a change in accounting principle

 

 

 

 

 

 

 

 

 

Basic

 

$

.11

 

$

.06

 

$

.33

 

$

.21

 

Diluted

 

$

.11

 

$

.06

 

$

.32

 

$

.21

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share after cumulative effect of a change in accounting principle

 

 

 

 

 

 

 

 

 

Basic

 

$

.11

 

$

.06

 

$

(4.70

)

$

.21

 

Diluted

 

$

.11

 

$

.06

 

$

(4.70

)

$

.21

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding 

 

 

 

 

 

 

 

 

 

Basic

 

4,450,000

 

4,370,000

 

4,444,000

 

4,328,000

 

Diluted

 

4,556,000

 

4,450,000

 

4,554,000

 

4,403,000

 

 

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