Summa Industries Announces 1st Quarter Results

TORRANCE, Calif., Dec. 22  /PRNewswire-FirstCall/ -- Summa Industries (NASDAQ:SUMX) reports net income of $651,000, or $.16 per common share, on sales of $27,740,000 for the three months ended November 30, 2005, versus net income of $610,000, or $.15 per common share, on sales of $25,488,000 for the three months ended November 30, 2004.

                                               Three months ended Nov 30
                                                  2005            2004
  Sales                                       $27,740,000     $25,488,000

  Income from continuing operations            $1,038,000        $902,000
  Net (loss) from discontinued operations       $(387,000)      $(292,000)
  Net income                                     $651,000        $610,000

  Diluted earnings per share:
    Continuing operations                           $0.26           $0.22
    Discontinued operations                        $(0.10)         $(0.07)
    Net income                                      $0.16           $0.15





Earnings from continuing operations for the quarter ended November 30, 2005 benefited from a pre-tax gain on the sale of real estate of $205,000, or approximately $.03 per share, versus $43,000, or approximately $.01 per share, in the quarter ended November 30, 2004.  The previously announced prospective sale of an Orange County, California parcel for approximately $5 million has been delayed until February 2006 and could be delayed further or cancelled.

As previously announced, the Company ceased operations in the former Electrical Components segment during the quarter ended November 30, 2005, after the Company divested its bobbin manufacturing business.  The results of that operation have been reported as discontinued operations.

A conference call to discuss the results will be held at 9:00 a.m., Pacific Time, Thursday, December 22, 2005.  The call-in number is 800-967-7141 or 719-457-2630.  The conference call will also be simulcast and archived by http://www.vcall.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 plans of the Company to sell excess real estate and expected values to be realized from such sales.  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 the inability of the Company to divest real estate, the discovery of unanticipated contingencies, unforeseen changes in financial markets or real estate markets 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, 2005.

For further information, contact James R. Swartwout, [phone]; Fax [phone];  or visit http://www.summaindustries.com/.

                             Summa Industries
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (unaudited)

  ASSETS                         November 30,     August 31,    November 30,
                                    2004             2005          2005
  Current assets:
  Cash and cash equivalents         $832,000     $1,233,000        $712,000
  Accounts receivable             16,371,000     16,919,000      17,566,000
  Inventories                     15,118,000     12,665,000      15,210,000
  Prepaid expenses and other       4,512,000      3,471,000       3,582,000
  Assets held for sale                    --      3,641,000              --

  Total current assets            36,833,000     37,929,000      37,070,000
  Property, plant and
   equipment, net                 33,086,000     29,213,000      29,061,000
  Goodwill and other assets, net  11,026,000     10,435,000      12,660,000
  Assets held for sale                    --      2,458,000       1,994,000

  Total assets                   $80,945,000    $80,035,000     $80,785,000


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
  Accounts payable                $6,543,000     $8,731,000     $10,873,000
  Accrued liabilities              6,744,000      5,774,000       6,050,000
  Current maturities of
   long-term debt                  2,702,000      3,069,000       2,504,000
  Liabilities held for sale               --      1,280,000              --

  Total current liabilities       15,989,000     18,854,000      19,427,000
  Long-term debt, net of
   current maturities             31,591,000     27,520,000      27,088,000
  Other long-term liabilities      2,500,000      2,441,000       3,035,000
  Minority interest in subsidiary    205,000        132,000         101,000
  Total stockholders' equity      30,660,000     31,088,000      31,134,000

  Total liabilities and
   stockholders' equity          $80,945,000    $80,035,000     $80,785,000



                             Summa Industries
                 CONDENSED CONSOLIDATED INCOME STATEMENTS
                               (unaudited)

                                            Three months ended November 30
                                                 2004             2005
  Net sales                                  $25,488,000      $27,740,000
  Cost of sales                               19,044,000       20,956,000
  Gross profit                                 6,444,000        6,784,000
  Selling, general, administrative
   and other expenses                          4,781,000        4,973,000
  (Gain) on sale of real estate                  (43,000)        (205,000)
  Operating income                             1,706,000        2,016,000
  Interest expense                               309,000          448,000
  Income from continuing operations
   before income taxes and minority
   interest                                    1,397,000        1,568,000
  Provision for income taxes                     495,000          561,000
  Income from continuing operations
   before minority interest                      902,000        1,007,000
  Minority interest in net loss of subsidiary         --           31,000
  Income from continuing operations              902,000        1,038,000
  Net (loss) from discontinued operations       (292,000)        (387,000)
  Net income                                    $610,000         $651,000

  Earnings (loss) per common share
  Basic
    Continuing operations                           $.22             $.26
    Discontinued operations                        $(.07)           $(.10)
    Net income                                      $.15             $.16
  Diluted
    Continuing operations                           $.22             $.26
    Discontinued operations                        $(.07)           $(.10)
    Net income                                      $.15             $.16
  Weighted average common shares outstanding:
    Basic                                      3,984,000        3,927,000
    Diluted                                    4,064,000        3,961,000


DATASOURCE: Summa Industries



CONTACT:  James R. Swartwout of Summa Industries, [phone], or

fax, [phone], 



Web site:  http://www.summaindustries.com/ 

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