SUMX Summa Industries

Summa Industries Announces Preliminary 4th Quarter and Year-End Results TORRANCE, Calif., Oct. 8 /PRNewswire-FirstCall/ -- Summa Industries (NASDAQ:SUMX) reports preliminary unaudited earnings of $698,000, or $.17 per common share, on sales of $30,773,000 for the three months ended August 31, 2004, versus earnings of $948,000, or $.18 per common share, on sales of $26,688,000 for the three months ended August 31, 2003. Three months ended August 31 Years ended August 31 2004 2003 2004 2003 Sales $30,773,000 $26,688,000 $116,404,000 $111,140,000 Income before cumulative effect of a change in accounting principle $698,000 $948,000 $3,371,000 $3,558,000 Diluted EPS before cumulative effect of a change in accounting principle $.17 $.18 $.68 $.63 The fiscal 2004 income tax provision as reflected in the preliminary earnings is under continuing review. A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Friday, October 8, 2004. The call-in number is (800) 310-1961 and the passcode is 954077. The conference call will also be simulcast and archived by http://www.vcall.com/. Summa Industries manufactures proprietary plastic components for industrial and commercial markets. For further information, contact James R. Swartwout, (310) 792-7024; Fax (310) 792-7079; or visit http://www.summaindustries.com/. Statements in this news release which relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and fall under the safe harbor. These forward-looking statements include, but are not limited to, statements regarding the adequacy of the Company's provision for taxes currently under audit, anticipated audited financial results for the Company, completion of the audit for fiscal 2004 and the results and timing thereof. Actual results could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including, but not limited to additional unforeseen adjustments to the Company's provisions for taxes, preliminary earnings and/or balance sheet based on the audit, continued delay in completion of the audit, and other risks and uncertainties described in detail under "Risk Factors" in Summa's Annual Report on Form 10-K for the fiscal year ended August 31, 2003. Summa Industries CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ASSETS August 31, 2003 August 31, 2004 Current assets: Cash and cash equivalents $380,000 $1,248,000 Accounts receivable 15,729,000 18,227,000 Inventories 11,645,000 14,749,000 Prepaid expenses and other 2,710,000 3,802,000 Total current assets 30,464,000 38,026,000 Property, plant and equipment, net 26,112,000 31,053,000 Other assets 2,518,000 1,090,000 Goodwill and other intangibles, net 9,422,000 9,254,000 Total assets $68,516,000 $79,423,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,302,000 $9,088,000 Accrued liabilities 5,015,000 6,735,000 Current maturities of long-term debt 3,896,000 2,195,000 Total current liabilities 14,213,000 18,018,000 Long-term debt, net of current maturities 16,219,000 28,663,000 Other long-term liabilities 2,601,000 2,508,000 Total long-term liabilities 18,820,000 31,171,000 Mandatorily redeemable convertible preferred stock 6,103,000 -- Minority interest in subsidiary -- 205,000 Total stockholders' equity 29,380,000 30,029,000 Total liabilities and stockholders' equity $68,516,000 $79,423,000 Summa Industries CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended August 31 Years ended August 31 2003 2004 2003 2004 Net sales $26,688,000 $30,773,000 $111,140,000 $116,404,000 Cost of sales 20,270,000 23,615,000 83,336,000 88,522,000 Gross profit 6,418,000 7,158,000 27,804,000 27,882,000 Selling, general, administrative and other expenses 4,681,000 5,560,000 21,005,000 21,027,000 Operating income 1,737,000 1,598,000 6,799,000 6,855,000 Interest expense 314,000 375,000 1,481,000 1,585,000 Income before income taxes and cumulative effect of a change in accounting principle 1,423,000 1,223,000 5,318,000 5,270,000 Provision for income taxes 475,000 525,000 1,760,000 1,899,000 Income before cumulative effect of a change in accounting principle 948,000 698,000 3,558,000 3,371,000 Cumulative effect of a change in accounting principle -- -- (22,343,000) -- Net income (loss) $948,000 $698,000 $(18,785,000) $3,371,000 Preferred stock accretion $184,000 $-- $737,000 $450,000 Net income available to common stockholders: before cumulative effect of a change in accounting principle $764,000 $698,000 $2,821,000 $2,921,000 after cumulative effect of a change in accounting principle $764,000 $698,000 $(19,522,000) $2,921,000 Earnings per common share before cumulative effect of a change in accounting principle Basic $.18 $.18 $.65 $.69 Diluted $.18 $.17 $.63 $.68 Earnings (loss) per common share after cumulative effect of a change in accounting principle Basic $.18 $.18 $(4.48) $.69 Diluted $.18 $.17 $(4.48) $.68 Weighted average common shares outstanding Basic 4,426,000 3,971,000 4,359,000 4,215,000 Diluted 4,308,000 4,074,000 4,449,000 4,297,000 DATASOURCE: Summa Industries CONTACT: James R. Swartwout of Summa Industries, +1-310-792-7024, or fax, +1-310-792-7079, Web site: http://www.summaindustries.com/

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