SL Industries Announces 2013 Second Quarter Results

SL Industries Announces 2013 Second Quarter Results

MT. LAUREL, N.J.--(BUSINESS WIRE)-- SL INDUSTRIES, INC. (NYSE MKT: SLI); ("SLI" or the "Company") operating results for the second quarter and six months ended June 30, 2013 are summarized in the following paragraphs. Please read the Company's Form 10-Q, which can be found at www.slindustries.com, for a full discussion of the operating results.

Second Quarter Results


Net sales for the quarter ended June 30, 2013 were $49.8 million compared with net sales for the quarter ended June 30, 2012 of $48.9 million.

Income from continuing operations for the quarter ended June 30, 2013 was $2.3 million, or $0.54 per diluted share, compared to income from continuing operations of $1.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2012.

Net income for the quarter ended June 30, 2013 was $2.0 million, or $0.48 per diluted share, compared to net income of $1.2 million, or $0.26 per diluted share, for the quarter ended June 30, 2012. Net income for the quarter ended June 30, 2013 included a net loss from discontinued operations of $0.2 million, or $0.06 per diluted share, compared to a net loss from discontinued operations of $0.2 million, or $0.06 per diluted share, for the second quarter of 2012. The loss from discontinued operations in 2013 and 2012 primarily relates to environmental remediation costs, consulting fees and legal expenses associated with the past operations of the Company's five environmental sites.

The Company generated EBITDA from continuing operations of $3.9 million for the second quarter of 2013, as compared to $2.9 million for the same period in 2012, an increase of $1.0 million, or 37%. See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of EBITDA and Adjusted EBITDA.

Full Year Results

Net sales for the six months ended June 30, 2013 were $98.9 million compared with net sales for the six months ended June 30, 2012 of $98.2 million.

Income from continuing operations for the six months ended June 30, 2013 were $5.2 million, or $1.25 per diluted share, compared to income from continuing operations of $2.9 million, or $0.63 per diluted share, for the six months ended June 30, 2012.

Net income for the first six months ended June 30, 2013 was $4.8 million, or $1.14 per diluted share, compared to net income of $2.4 million, or $0.53 per diluted share, for the first six months ended June 30, 2012. Net income for the first six months ended June 30, 2013 included a net loss from discontinued operations of $0.5 million, or $0.11 per diluted share, compared to a net loss from discontinued operations of $0.4 million, or $0.10 per diluted share, for the first six months ended June 30, 2012. The loss from discontinued operations in 2013 and 2012 primarily relates to environmental remediation costs, consulting fees and legal expenses associated with the past operations of the Company's five environmental sites.

The Company generated EBITDA from continuing operations of $8.5 million for the six months ended 2013, as compared to $5.9 million for the same period in 2012, an increase of $2.6 million, or 44%. See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of EBITDA and Adjusted EBITDA.

At June 30, 2013, the Company reported $1.0 million of cash, compared to $3.2 million of cash and cash equivalents as of December 31, 2012. Cash and cash equivalents decreased in 2013 primarily due to $2.9 million of cash used in operating activities from discontinued operations. Cash used in operating activities from discontinued operations during 2013 was primarily related to a payment of $2.2 million, which included interest, related to a portion of the Company's obligation under the Consent Decree related to the Puchack Well Field Superfund Site in Pennsauken, New Jersey.

Updated Guidance 2013

The Company anticipates, based on current information, full-year 2013 net sales, EBITDA, and Adjusted EBITDA from continuing operations in the ranges of $186 million to $227 million, $18 million to $21 million, and $19 million to $22 million, respectively. The Company's outlook for the third quarter of 2013 is net sales, EBITDA, and Adjusted EBITDA from continuing operations in the ranges of $52 million to $57 million, $5.0 million to $5.6 million, and $5.3 million to $5.9 million, respectively.

Financial Summary

  
SUMMARY CONSOLIDATED BALANCE SHEETS
 
June 30,December 31,
2013 2012
(In thousands)
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$974$3,196
Receivables, net32,14530,306
Inventories, net24,67522,102
Other current assets 6,514  5,513
Total current assets 64,308  61,117
Property, plant and equipment, net10,4839,593
Intangible assets, net25,17625,405
Other assets and deferred charges, net 10,981  11,022
Total assets$110,948 $107,137
 
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities$35,730$34,808
Long-term liabilities20,08021,897
Shareholders' equity 55,138  50,432
Total liabilities and shareholders' equity$110,948 $107,137
 
 
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
   
Three Months EndedSix Months Ended
June 30,June 30,
2013 2012 2013 2012
(In thousands, except per share amounts)
 
Net sales$49,786$48,899$98,881$98,239
Cost and expenses:
Cost of products sold32,76432,75664,96366,527
Engineering and product development3,6722,9547,1755,975
Selling, general and administrative9,10410,13717,91119,648
Depreciation and amortization 615   707   1,215   1,372 
Total cost and expenses 46,155   46,554   91,264   93,522 
Income from operations3,6312,3457,6174,717
 
Other income (expense):
Amortization of deferred financing costs(20)(39)(39)(72)
Interest income2233
Interest expense(15)(9)(50)(31)
Other gain (loss), net (301)  (162)  (327)  (170)
Income from continuing operations before income taxes3,2972,1377,2044,447
Income tax provision 1,045   727   1,968   1,593 
Income from continuing operations2,2521,4105,2362,854
(Loss) from discontinued operations, net of tax (237)  (244)  (455)  (438)
Net income$2,015  $1,166  $4,781  $2,416 
 
Basic net income (loss) per common share
Income from continuing operations$0.54$0.32$1.26$0.64
(Loss) from discontinued operations, net of tax (0.06)  (0.06)  (0.11)  (0.10)
Net income$0.48  $0.26  $1.15  $0.54 
 
Diluted net income (loss) per common share
Income from continuing operations$0.54$0.32$1.25$0.63
(Loss) from discontinued operations, net of tax (0.06)  (0.06)  (0.11)  (0.10)
Net income$0.48  $0.26  $1.14  $0.53 
 
Shares used in computing basic net income (loss)
per common share4,1574,4444,1484,501
Shares used in computing diluted net income (loss)
per common share4,2044,4574,1894,518
 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
    
Three Months EndedSix Months Ended
June 30,June 30,
2013 2012 2013 2012
(In thousands)
 
Net income$2,015$1,166$4,781$2,416
Other comprehensive income, net of tax:
Foreign currency translation 17  (113)  93  (94)
Comprehensive income$2,032 $1,053  $4,874 $2,322 
 

Segment Results
(Unaudited)

 Three Months Ended Six Months Ended
June 30, June 30, 
2013 2012 2013 2012
(In thousands)
Net sales
SLPE$18,386$18,824$35,980$37,167
High Power Group17,60715,89634,70031,471
SL-MTI9,0609,07718,15418,676
RFL 4,733   5,102   10,047   10,925 
Net sales 49,786   48,899   98,881   98,239 
 
Income from operations
SLPE1,1314792,181268
High Power Group2,0381,5854,1522,950
SL-MTI1,5691,4412,8823,144
RFL3935781,3291,636
Unallocated Corporate Expenses (1,500)  (1,738)  (2,927)  (3,281)
Income from operations 3,631   2,345   7,617   4,717 
 
Other income (expense):
Amortization of deferred financing costs(20)(39)(39)(72)
Interest income2233
Interest expense(15)(9)(50)(31)
Other gain (loss), net (301)  (162)  (327)  (170)
Income from continuing operations before income taxes$3,297   Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

More to Explore
Tue, Oct 17
Set Your Location
City, State, or Zip