SL Industries, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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1-4987
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21-0682685
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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520 Fellowship Road, Suite A114, Mount Laurel, New Jersey
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08054
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(Address of principal executive offices)
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(Zip Code)
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N/A
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(Former name or former address, if changed since last report.)
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit No.
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Description
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99.1
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Press Release dated November 3, 2015.
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SL Industries, Inc.
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(Registrant)
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Date: November 6, 2015
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By:
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/s/ Louis J. Belardi
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Name:
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Louis J. Belardi
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Title:
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Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release dated November 3, 2015.
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SUMMARY CONSOLIDATED BALANCE SHEETS
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September 30,
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December 31,
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|||||||
2015
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2014
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(In thousands)
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||||||||
(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 5,659 | $ | 31,950 | ||||
Receivables, net
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34,581 | 33,966 | ||||||
Inventories, net
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24,701 | 23,597 | ||||||
Other current assets
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10,549 | 10,856 | ||||||
Total current assets
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75,490 | 100,369 | ||||||
Property, plant and equipment, net
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17,463 | 8,070 | ||||||
Intangible assets, net
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34,873 | 16,860 | ||||||
Other assets and deferred charges, net
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6,848 | 6,477 | ||||||
Total assets
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$ | 134,674 | $ | 131,776 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY
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Current liabilities
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$ | 53,501 | $ | 44,249 | ||||
Long-term liabilities
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6,271 | 10,206 | ||||||
Shareholders' equity
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74,902 | 77,321 | ||||||
Total liabilities and shareholders' equity
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$ | 134,674 | $ | 131,776 |
Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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(In thousands, except per share amounts)
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Net sales
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$ | 49,675 | $ | 50,725 | $ | 147,078 | $ | 151,140 | ||||||||
Cost and expenses:
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Cost of products sold
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33,340 | 34,326 | 98,526 | 101,696 | ||||||||||||
Engineering and product development
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2,339 | 2,908 | 7,509 | 8,442 | ||||||||||||
Selling, general and administrative
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9,244 | 8,730 | 25,897 | 24,005 | ||||||||||||
Depreciation and amortization
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847 | 579 | 2,065 | 1,608 | ||||||||||||
Restructuring charges
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223 | - | 223 | 463 | ||||||||||||
Total cost and expenses
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45,993 | 46,543 | 134,220 | 136,214 | ||||||||||||
Income from operations
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3,682 | 4,182 | 12,858 | 14,926 | ||||||||||||
Other income (expense):
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Amortization of deferred financing costs
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(59 | ) | (22 | ) | (119 | ) | (65 | ) | ||||||||
Interest income
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2 | 2 | 23 | 5 | ||||||||||||
Interest expense
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(52 | ) | (7 | ) | (63 | ) | (21 | ) | ||||||||
Other gain (loss), net
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(669 | ) | 56 | (23 | ) | 1,535 | ||||||||||
Income from continuing operations before income taxes
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2,904 | 4,211 | 12,676 | 16,380 | ||||||||||||
Income tax provision
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1,067 | 1,716 | 4,421 | 5,832 | ||||||||||||
Income from continuing operations
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1,837 | 2,495 | 8,255 | 10,548 | ||||||||||||
(Loss) income from discontinued operations, net of tax
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(700 | ) | 400 | (1,005 | ) | 402 | ||||||||||
Net income
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$ | 1,137 | $ | 2,895 | $ | 7,250 | $ | 10,950 | ||||||||
Basic net income (loss) per common share
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Income from continuing operations
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$ | 0.46 | $ | 0.60 | $ | 2.06 | $ | 2.55 | ||||||||
(Loss) income from discontinued operations, net of tax
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(0.17 | ) | 0.10 | (0.25 | ) | 0.10 | ||||||||||
Net income
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$ | 0.29 | $ | 0.70 | $ | 1.81 | $ | 2.65 | ||||||||
Diluted net income (loss) per common share
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Income from continuing operations
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$ | 0.46 | $ | 0.59 | $ | 2.03 | $ | 2.52 | ||||||||
(Loss) income from discontinued operations, net of tax
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(0.17 | ) | 0.10 | (0.24 | ) | 0.10 | ||||||||||
Net income
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$ | 0.29 | $ | 0.69 | $ | 1.79 | $ | 2.62 | ||||||||
Shares used in computing basic net income (loss)
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per common share
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3,960 | 4,145 | 4,015 | 4,137 | ||||||||||||
Shares used in computing diluted net income (loss)
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per common share
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3,989 | 4,204 | 4,059 | 4,178 |
Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(In thousands)
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Net income
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$ | 1,137 | $ | 2,895 | $ | 7,250 | $ | 10,950 | ||||||||
Other comprehensive income, net of tax:
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Foreign currency translation
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(427 | ) | (314 | ) | (784 | ) | (196 | ) | ||||||||
Net unrealized gain reclassified into income on sale of available-for-sale securities
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- | - | - | (1,094 | ) | |||||||||||
Comprehensive income
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$ | 710 | $ | 2,581 | $ | 6,466 | $ | 9,660 |
Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(In thousands)
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(In thousands)
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Net sales
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SLPE
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$ | 17,243 | $ | 17,821 | $ | 51,687 | $ | 54,504 | ||||||||
High Power Group
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15,224 | 21,699 | 53,366 | 64,461 | ||||||||||||
SL-MTI
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17,208 | 11,205 | 42,025 | 32,175 | ||||||||||||
Net sales
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49,675 | 50,725 | 147,078 | 151,140 | ||||||||||||
Income from operations
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SLPE
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2,416 | 1,971 | 6,140 | 5,203 | ||||||||||||
High Power Group
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1,028 | 2,838 | 5,914 | 9,676 | ||||||||||||
SL-MTI
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1,791 | 1,243 | 6,200 | 5,146 | ||||||||||||
Unallocated Corporate Expenses
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(1,553 | ) | (1,870 | ) | (5,396 | ) | (5,099 | ) | ||||||||
Income from operations
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3,682 | 4,182 | 12,858 | 14,926 | ||||||||||||
Other income (expense):
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Amortization of deferred financing costs
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(59 | ) | (22 | ) | (119 | ) | (65 | ) | ||||||||
Interest income
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2 | 2 | 23 | 5 | ||||||||||||
Interest expense
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(52 | ) | (7 | ) | (63 | ) | (21 | ) | ||||||||
Other gain (loss), net
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(669 | ) | 56 | (23 | ) | 1,535 | ||||||||||
Income from continuing operations before income taxes
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$ | 2,904 | $ | 4,211 | $ | 12,676 | $ | 16,380 |
Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(In thousands)
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(In thousands)
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Income from continuing operations, net of tax
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$ | 1,837 | $ | 2,495 | $ | 8,255 | $ | 10,548 | ||||||||
Add (deduct):
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Interest income
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(2 | ) | (2 | ) | (23 | ) | (5 | ) | ||||||||
Interest expense
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52 | 7 | 63 | 21 | ||||||||||||
Income tax provision
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1,067 | 1,716 | 4,421 | 5,832 | ||||||||||||
Depreciation and amortization
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847 | 579 | 2,065 | 1,608 | ||||||||||||
Amortization of deferred financing costs
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59 | 22 | 119 | 65 | ||||||||||||
EBITDA from continuing operations
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3,860 | 4,817 | 14,900 | 18,069 | ||||||||||||
Direct acquisition costs
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906 | 121 | 1,214 | 146 | ||||||||||||
Non-cash stock-based compensation expense
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251 | 191 | 741 | 525 | ||||||||||||
Recognition of non-cash inventory purchase accounting adjustment
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325 | 240 | 325 | 240 | ||||||||||||
Restructuring costs
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223 | - | 223 | 463 | ||||||||||||
Strategic costs
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48 | - | 116 | - | ||||||||||||
Unrealized loss (gain) on foreign exchange contracts
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564 | (54 | ) | 88 | 167 | |||||||||||
Reversal of a portion of Dynetic Systems earn-out liability
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- | - | (72 | ) | - | |||||||||||
Change in accounting principle - LIFO to FIFO
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(160 | ) | - | (160 | ) | - | ||||||||||
Reversal of a portion of deferred compensation liability
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- | - | (289 | ) | - | |||||||||||
(Gain) on sale of available-for-sale securities
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- | - | - | (1,691 | ) | |||||||||||
Adjusted EBITDA from continuing operations
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$ | 6,017 | $ | 5,315 | $ | 17,086 | $ | 17,919 |
·
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EBITDA and Adjusted EBITDA do not reflect the Company's interest income and interest expense;
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EBITDA and Adjusted EBITDA do not reflect the Company's income tax expense or the cash requirements to pay its income taxes;
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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;
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EBITDA and Adjusted EBITDA do not include the amortization of deferred financing costs;
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EBITDA and Adjusted EBITDA do not include discontinued operations;
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Adjusted EBITDA does not include direct acquisition costs;
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Adjusted EBITDA does not include non-cash charges for stock-based compensation;
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Adjusted EBITDA does not include the recognition of a non-cash inventory purchase accounting adjustment related to acquisitions;
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Adjusted EBITDA does not include restructuring charges;
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Adjusted EBITDA does not include strategic costs;
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Adjusted EBITDA does not include (gain) loss, realized or unrealized, on foreign exchange contracts;
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Adjusted EBITDA does not include the reversal of a portion of the Dynetic Systems earn-out liability;
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Adjusted EBITDA does not include the recognition of income due to a change in accounting principle;
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Adjusted EBITDA does not include the reversal of a portion of a deferred compensation liability;
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Adjusted EBITDA does not include gain on sale of available-for-sale securities.
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