Click here to close now.




















Welcome!

Mobile IoT Authors: Pat Romanski, Kevin Benedict, Elizabeth White, Liz McMillan, Sam Ganga

News Feed Item

SL Industries Announces 2012 Third Quarter Results

MT. LAUREL, N.J., Nov. 6, 2012 /PRNewswire/ -- SL INDUSTRIES, INC. (NYSE AMEX: SLI); ("SLI" or the "Company")  operating results for the third quarter and nine months ended September 30, 2012 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.

Net sales from continuing operations for the quarter ended September 30, 2012, were $50.9 million, down 2% compared with net sales from continuing operations for the quarter ended September 30, 2011 of $52.1 million.

Income from continuing operations for the quarter ended September 30, 2012 was $2.9 million, or $0.69 per diluted share, compared to income from continuing operations of $2.5 million, or $0.55 per diluted share, for the quarter ended September 30, 2011. Included in income from continuing operations during the third quarter of 2012 was $0.9 million of restructuring costs, which was partially offset by a $0.3 million non-cash unrealized gain on foreign exchange contracts. Net income for the quarter ended September 30, 2012 was $2.4 million, or $0.58 per diluted share, compared to net income of $2.3 million, or $0.50 per diluted share, for the quarter ended September 30, 2011. Net income for the quarter ended September 30, 2012 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 $0.3 million, or $0.05 per diluted share, for the third quarter 2011. The net losses from discontinued operations for the third quarter of 2012 and 2011 primarily related to after tax charges for environmental remediation and legal expenses related to environmental remediation.

The Company generated Adjusted EBITDA of $5.3 million for the third quarter of 2012, as compared to $4.5 million for the same period in 2011, an increase of $0.8 million, or 18%.  See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of Adjusted EBITDA.

For the nine months ended September 30, 2012, net sales from continuing operations were $149.1 million, down 7% compared with net sales from continuing operations for the nine months ended September 30, 2011 of $161.0 million.

For the first nine months of 2012, net income from continuing operations was $5.7 million, or $1.30 per diluted share, compared to net income from continuing operations of $9.8 million, or $2.14 per diluted share, for the nine months ended September 30, 2011.

Net income for the first nine months ended September 30, 2012 was $4.8 million, or $1.10 per diluted share, compared to net income of $9.9 million, or $2.17 per diluted share, for the first nine months ended September 30, 2011.  Net income for the first nine months ended September 30, 2012 included a net loss from discontinued operations of $0.9 million, or $0.20 per diluted share, compared to net income from discontinued operations of $0.1 million, or $0.03 per diluted share, for the first nine months ended September 30, 2011. The net loss from discontinued operations for the first nine months of 2012 primarily related to after tax charges for environmental remediation and legal expenses. Net income from discontinued operations for the first nine months ended September 30, 2011 was generated by a $0.8 million non-cash gain from a tax settlement associated with the company's German subsidiary, which was sold in January 2003, partially off-set by losses related to environmental remediation, net of tax.

The Company generated Adjusted EBITDA of $13.3 million for the nine months ended 2012, as compared to $16.8 million for the same period in 2011, a decrease of $3.5 million, or 21%.  See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of Adjusted EBITDA.

Financial Summary

SUMMARY CONSOLIDATED BALANCE SHEETS








September 30,


December 31,



2012


2011



(In thousands)



(Unaudited)



ASSETS





Current assets:





Cash and cash equivalents


$ 1,783


$ 5,632

Receivables, net


32,332


31,141

Inventories, net


23,148


22,599

Other current assets


7,906


6,740

Total current assets


65,169


66,112

Property, plant and equipment, net


9,707


9,416

Intangible assets, net


25,562


25,967

Other assets and deferred charges, net


9,804


9,731

Total assets


$ 110,242


$ 111,226






LIABILITIES & SHAREHOLDERS' EQUITY





Current liabilities


$ 32,391


$ 31,708

Long-term liabilities


22,094


22,661

Shareholders' equity


55,757


56,857

Total liabilities and shareholders' equity


$ 110,242


$ 111,226

 

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)












Three Months Ended


Nine Months Ended



September 30,


September 30,



2012


2011


2012


2011



(In thousands, except per share amounts)










Net sales


$50,886


$52,092


$149,125


$160,952

Cost and expenses:









Cost of products sold


34,572


36,011


101,099


108,720

Engineering and product development


3,182


3,447


9,157


9,933

Selling, general and administrative


8,081


8,440


27,729


25,908

Depreciation and amortization


666


656


2,038


2,200

Restructuring charges


852


0


852


0

Total cost and expenses


47,353


48,554


140,875


146,761

Income from operations


3,533


3,538


8,250


14,191










Other income (expense):









Amortization of deferred financing costs


(46)


(32)


(118)


(185)

Interest income


1


0


4


1

Interest expense


(8)


(33)


(39)


(171)

Other gain (loss), net


312


0


142


0

Fire related gain


0


0


0


277

Income from continuing operations before income taxes


3,792


3,473


8,239


14,113

Income tax provision


927


936


2,520


4,358

Income from continuing operations


2,865


2,537


5,719


9,755

(Loss) income from discontinued operations, net of tax


(464)


(261)


(902)


142

Net income


$2,401


$2,276


$4,817


$9,897










Basic net income (loss) per common share









Income from continuing operations


$0.69


$0.56


$1.31


$2.16

(Loss) income from discontinued operations, net of tax


(0.11)


(0.06)


(0.21)


0.03

Net income


$0.58


$0.50


$1.10


$2.19










Diluted net income (loss) per common share









Income from continuing operations


$0.69


$0.55


$1.30


$2.14

(Loss) income from discontinued operations, net of tax


(0.11)


(0.05)


(0.20)


0.03

Net income


$0.58


$0.50


$1.10


$2.17










Shares used in computing basic net income (loss)









per common share


4,121


4,556


4,375


4,524

Shares used in computing diluted net income (loss)









per common share


4,133


4,591


4,390


4,570



















CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)












Three Months Ended


Nine Months Ended



September 30,


September 30,



2012


2011


2012


2011



(In thousands)






Net income


$2,401


$2,276


$4,817


$9,897

Other comprehensive income, net of tax:









Foreign currency translation


28


(154)


(66)


(52)

Comprehensive income


$2,429


$2,122


$4,751


$9,845

 

Division Results
(Unaudited)









Three Months Ended


Nine Months Ended



September 30,


September 30,



2012


2011


2012


2011



(In thousands)

Net sales









SLPE


$ 21,194


$ 24,314


$ 58,361


$ 68,620

High Power Group


15,620


14,057


47,091


48,943

SL-MTI


9,490


8,498


28,166


26,916

RFL


4,582


5,223


15,507


16,473

Net sales


50,886


52,092


149,125


160,952










Income from operations









SLPE


1,144


1,954


1,412


6,324

High Power Group


1,499


1,086


4,449


5,584

SL-MTI


1,875


1,361


5,019


4,612

RFL


153


639


1,789


1,972

Unallocated Corporate Expenses


(1,138)


(1,502)


(4,419)


(4,301)

Income from operations


3,533


3,538


8,250


14,191










Other income (expense):









Amortization of deferred financing costs


(46)


(32)


(118)


(185)

Interest income


1


-


4


1

Interest expense


(8)


(33)


(39)


(171)

Other gain (loss), net


312


-


142


-

Fire related gain


-


-


-


277

Income from continuing operations before income taxes


$ 3,792


$ 3,473


$ 8,239


$ 14,113

Supplemental Non-GAAP Disclosures
EBITDA and Adjusted EBITDA
(Unaudited)



Three Months Ended


Nine Months Ended



September 30,


September 30,



2012


2011


2012


2011



(In thousands)










Income from continuing operations


$ 2,865


$ 2,537


$ 5,719


$ 9,755










Add (deduct):









Interest income


(1)


-


(4)


(1)

Interest expense


8


33


39


171

Income tax provision


927


936


2,520


4,358

Depreciation and amortization


666


656


2,038


2,200

Amortization of deferred financing costs


46


32


118


185

EBITDA


4,511


4,194


10,430


16,668










Non-cash stock-based compensation expense


165


256


909


429

Restructuring charges


852


-


852


-

China investigation costs


34


-


836


-

Direct acquisition costs


10


-


432


-

Unrealized (gain) loss on foreign exchange contracts


(312)


-


(142)


-

Fire related gain


-


-


-


(277)

Adjusted EBITDA


$ 5,260


$ 4,450


$ 13,317


$ 16,820

Note Regarding Use of Non-GAAP Financial Measurements

The financial data contained in this press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission ("SEC"), including "EBITDA" and "Adjusted EBITDA".  The Company is presenting EBITDA and Adjusted EBITDA because it believes that it provides useful information to investors about SLI, its business and its financial condition. The Company defines EBITDA as net income from continuing operations before the effects of interest income, interest expense, income taxes, depreciation and amortization, and the amortization of deferred financing costs. The Company defines Adjusted EBITDA as EBITDA before the effects of certain items, including China investigation costs, non-cash stock-based compensation expense, direct acquisition costs, unrealized loss on foreign exchange contracts, and fire related gains. The Company believes EBITDA and Adjusted EBITDA are useful to investors because they are key measures used by the Company's Board of Directors and management to evaluate its business, including internal management reporting, budgeting and forecasting processes, in comparing operating results across the business, as an internal profitability measure, as a component in evaluating the ability and the desirability of making capital expenditures and significant acquisitions, and as an element in determining executive compensation.

However, EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles in the United States of America ("GAAP"), and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Therefore, EBITDA and Adjusted EBITDA should not be considered a substitute for net income (loss) or cash flows from operating, investing, or financing activities. Because EBITDA and Adjusted EBITDA are calculated before recurring cash items, including interest income, interest expense, and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a measure of discretionary cash available to invest in the growth of the business. There are a number of material limitations to the use of EBITDA and Adjusted EBITDA as an analytical tool, including the following:

  • EBITDA and Adjusted EBITDA do not reflect the Company's interest income and interest expense;
  • EBITDA and Adjusted EBITDA do not reflect the Company's income tax expense or the cash requirements to pay its income taxes;
  • Although depreciation and amortization are non-cash expenses in the period recorded, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect the cash requirements for such replacement; and
  • EBITDA and Adjusted EBITDA do not include discontinued operations.

The Company compensates for these limitations by relying primarily on its GAAP financial measures and by using EBITDA and Adjusted EBITDA only as supplemental information. The Company believes that consideration of EBITDA and Adjusted EBITDA, together with a careful review of its GAAP financial measures, is the most informed method of analyzing SLI.

The Company reconciles EBITDA and Adjusted EBITDA to net income from continuing operations, and that reconciliation is set forth below.  Because EBITDA and Adjusted EBITDA are not a measurement determined in accordance with GAAP and is susceptible to varying calculations, EBITDA and Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Revenues and expenses are measured in accordance with the policies and procedures described in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

About SL Industries, Inc.

SL Industries, Inc., designs, manufactures and markets power electronics, motion control, power protection, power quality electromagnetic and specialized communication equipment that is used in a variety of medical, commercial and military aerospace, solar, computer, datacom, industrial, telecom, transportation, utility, rail and highway 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 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
SL Industries, Inc.
Louis J. Belardi
Chief Financial Officer
E-mail:  [email protected]
Phone:  856.727.1500  x5525 

SOURCE SL Industries, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...