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SL Industries, Inc.
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The following is the text of a press release issued by SL Industries,
Inc. (the "Registrant") on January 15, 2002 announcing certain information
regarding its financial performance for its fourth quarter ended
December 31, 2001:
FOR IMMEDIATE RELEASE
INVESTOR RELATIONS CONTACT: COMPANY CONTACT:
Neil Berkman or Melanie Beeler Owen Farren
Neil Berkman Associates President & CEO
(310) 277-5162 (856) 727-1500
info@BerkmanAssociates.com www.slpdq.com
SL INDUSTRIES, INC. ANNOUNCES FOURTH QUARTER OUTLOOK
MT. LAUREL, NEW JERSEY, JANUARY 15, 2002 . . . SL INDUSTRIES, INC. (NYSE
& PHLX:SL) announced today that net sales from continuing operations for the
fourth quarter ended December 31, 2001 were $34,437,000, compared to net sales
from continuing operations of $33,968,000 in the third quarter of 2001 and
$35,638,000 for the same period in 2000. The decrease from last year is due
entirely to the decline in telecommunications and semiconductor business
activity. SL Industries begins the new year with a backlog of $54,855,000, as
compared to a backlog of $59,066,000 at December 31, 2000. This decrease of
$4,211,000 is also due to decreased orders for telecommunications and
semiconductor products, offset, in part, by increased orders for aerospace,
utilities, industrial and medical products.
The Company anticipates that income from continuing operations in the
fourth quarter of 2001 will be positive. Additionally, the Company will be
recording at least a $1,000,000 pre-tax reduction in losses from discontinued
operations in the fourth quarter due to the reversal of charges previously taken
on the sale of SL Waber. This is due primarily to the disposition of liabilities
for less than their full amount.
Owen Farren, President and Chief Executive Officer, commented, "Over the
course of the last quarter, SL Industries experienced greater stability in all
of its served markets even in the aftermath of September 11. With its
restructuring plan almost complete, we believe the Company is well positioned to
move forward, and we are optimistic that the Company will record positive
earnings throughout 2002 based upon the current level of business activity.
Substantially all of the charges incurred in connection with the restructuring
plan were recorded in 2001."
Farren continued, "We would like to briefly outline the actions taken
this year to effect the restructuring plan. The Company closed two manufacturing
plants (one by sale and one by consolidation) and two engineering and
administrative facilities, all in the power electronics group. All of the
expenditures incurred in connection with these closings were paid from operating
cash flows. The Company continued to service its debt and meet its financial
obligations. In December, it also amended its credit facility to be in
compliance with its financial ratios.
"Moreover, management has taken action to strengthen the Company's
balance sheet. As previously announced, the Company has undertaken to sell
non-operating assets to increase liquidity. We expect to realize cash of
approximately $14 million from these sales in the first quarter of 2002, a
significant portion of which will be used to pay down debt."
(more)
SL INDUSTRIES, INC. ANNOUNCES FOURTH QUARTER OUTLOOK
January 15, 2002
Page Two
Farren concluded, "Our actions have made it possible to receive
indications of interest from several commercial lenders to obtain a new line of
credit. We are currently in negotiations to enter into a long-term debt facility
on favorable terms. If the Company is successful in concluding a new line of
credit, it will significantly reduce the Company's interest rate as well as
enable it to reinvest in the business and fund other initiatives that may
enhance our ability to maximize shareholder value through the sale process.
"As we previously announced, the Company received attractive offers for
two of its business units. Discussions have progressed well with one of the
potential purchasers for one of its business units. We are hopeful that the
Company will be able to complete the sale of that unit in the near future.
Consistent with the Board's strategy, SL Industries will continue to operate its
business and strive to maximize value through the timely sale of SL or its
business units."
CONFERENCE CALL
In order for shareholders to discuss the Company's business prior to the
scheduled Annual Meeting, SL Industries has scheduled a conference call for
today at 4:30 PM EST. To participate in the conference call, dial (212) 346-0100
at least five minutes before the call begins. A simultaneous WebCast of the
conference call may be accessed online at www.CompanyBoardroom.com or at
www.slpdq.com. A replay will be available immediately following the WebCast at
these same Internet addresses. For a telephone replay, dial 800-633-8284,
reservation #20203598, beginning approximately one hour after the call.
ABOUT SL INDUSTRIES, INC.
SL Industries, Inc. designs, manufactures and markets Power and Data
Quality (PDQ) equipment and systems for industrial, medical, aerospace,
telecommunications and consumer applications. For more information about SL
Industries, Inc. and its products, please visit the Company's website at
www.slpdq.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 restructuring and other cost reduction actions undertaken by the Company,
the timing and degree of any business recovery in certain of the Company's
markets that are currently experiencing an economic downturn, 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, 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. Those conditions include increased
economic uncertainty and political instability following the terrorist attacks
in the United States on September 11, 2001. 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.
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