Welcome!

Mobile IoT Authors: Elizabeth White, Liz McMillan, Eric Robertson, Pat Romanski, 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
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...