Welcome!

Mobile IoT Authors: Liz McMillan, Elizabeth White, David H Deans, Gordon Haff, Carmen Gonzalez

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
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...