Summa Reports 3rd Quarter Earnings

Summa Reports 3rd Quarter Earnings 


TORRANCE, Calif., June 28  /PRNewswire-FirstCall/ -- Summa Industries
(NASDAQ:SUMX) reports net income of $508,000, or $.13 per share, on sales of
$31,541,000 for the three months ended May 31, 2005, versus net income of
$1,390,000, or $.30 per share, on sales of $33,160,000 for the three months
ended May 31, 2004.

                                             Three months ended
                                   May 31, 2005               May 31, 2004
   Sales                            $31,541,000                $33,160,000
   Net income                          $508,000                 $1,390,000
   Diluted earnings per share              $.13                       $.30





Sales and earnings were adversely impacted primarily by weakness in the Optical
Components Segment, which resulted from softness in demand for high-bay, high
intensity discharge lighting products and other issues. Additionally, earnings
have been substantially impacted by facility relocation costs.  The effects of
the relocation expenses and the pro forma earnings, calculated as though the
relocation expenses had not been incurred, are as follows:

                                  Three months ended     Nine months ended
                                         May 31                 May 31
                                   2005         2004        2005        2004
   Operating income          $1,245,000   $2,455,000  $3,430,000  $5,257,000
   Relocation expense, net     $497,000      187,000   1,393,000     626,000
   Pro forma operating
    income                    1,742,000   $2,642,000  $4,823,000  $5,883,000

   Net income                  $508,000    1,390,000   1,394,000  $2,673,000
   Tax-effected relocation
    expense                     318,000      120,000     891,000     401,000
   Pro forma net
    income                     $826,000   $1,510,000  $2,285,000  $3,074,000

   Diluted EPS                    $0.13        $0.30       $0.34       $0.51
   Pro forma diluted EPS          $0.20        $0.33       $0.56       $0.60





Note that "pro forma" has no defined meaning under Generally Accepted
Accounting Principles.  The information presented above is for the purpose of
drawing attention to a critical component of current performance.  By providing
this information, the Company does not assume the responsibility to provide
such supplemental information in future releases of earnings.  There are other
components of current performance which are not highlighted in the above
presentation.  Investors are urged to read the Management's Discussion and
Analysis section of the Company's Quarterly Report on Form 10-Q for the period
ended May 31, 2005, which is expected to be filed before July 15, 2005.

A conference call to discuss the results will be held at 9:00 a.m., Pacific
Time, Tuesday, June 28, 2005.  The call-in number is [phone] and the
international call-in number is [phone].  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,  projections, events or performance, including without limitation
expectations and beliefs regarding future events, 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 Company's expectations regarding
the timing of completion of the ongoing Pharr relocation, and expectations that
aggregate relocation costs will diminish steadily throughout the remainder of
the fiscal year.  Actual results may differ materially from those anticipated
because of a number of factors, including, but not limited to, delays and/or
cost overruns in the ongoing Pharr relocation, implementation of additional
relocation projects not currently in process, 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, 2004.

Summa Industries manufactures proprietary engineered plastic products for a
broad spectrum of industrial and commercial markets.  The Company has
manufacturing facilities across North America.  Products, many of which are
unique or patented, are shipped to customers worldwide.

For further information, contact Jim Swartwout, [phone]; Fax (310)
792-7079; http://www.summaindustries.com/; or .

                             Summa Industries
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (unaudited)

  ASSETS                        May 31, 2004   August 31, 2004  May 31, 2005
  Current assets:
    Cash and cash equivalents      $680,000        $1,248,000    $1,027,000
    Accounts receivable          19,895,000        18,227,000    18,761,000
    Inventories                  13,306,000        14,749,000    15,638,000
    Prepaid expenses and other    3,098,000         3,782,000     3,895,000

  Total current assets           36,979,000        38,006,000    39,321,000
  Property, plant and
   equipment, net                28,474,000        31,053,000    32,227,000
  Goodwill and other
   assets, net                   11,818,000        11,058,000    10,894,000

    Total assets                $77,271,000       $80,117,000   $82,442,000


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable             $7,365,000        $9,088,000    $9,909,000
    Accrued liabilities           5,769,000         7,429,000     5,429,000
    Current maturities of
     long-term debt               1,957,000         2,195,000     4,178,000

  Total current liabilities      15,091,000        18,712,000    19,516,000
  Long-term debt, net of
   current maturities            30,337,000        28,663,000    29,157,000
  Other long-term liabilities     2,577,000         2,508,000     2,448,000
  Minority interest in
   subsidiary                       205,000           205,000       155,000
  Total stockholders' equity     29,061,000        30,029,000    31,166,000
    Total                       $77,271,000       $80,117,000   $82,442,000



                             Summa Industries
                 CONDENSED CONSOLIDATED INCOME STATEMENTS
                               (unaudited)


                        Three months ended May 31   Nine months ended May 31
                           2004            2005         2004         2005
  Net sales           $33,160,000     $31,541,000  $85,631,000  $88,976,000
  Cost of sales        25,096,000      24,980,000   64,907,000   70,183,000
  Gross profit          8,064,000       6,561,000   20,724,000   18,793,000

  Selling, general,
   administrative
   and other expenses   5,609,000       5,316,000   15,467,000   15,363,000
  Operating income      2,455,000       1,245,000    5,257,000    3,430,000
  Interest expense        321,000         476,000    1,210,000    1,314,000
  Income before income
   taxes and
    minority interest   2,134,000         769,000    4,047,000    2,116,000
  Provision for
   income taxes           744,000         278,000    1,374,000      772,000
  Income before
   minority interest    1,390,000         491,000    2,673,000    1,344,000
  Minority interest in
   net (loss) of
   subsidiary                  --         (17,000)          --      (50,000)
  Net income           $1,390,000        $508,000   $2,673,000   $1,394,000
  Preferred stock
   accretion              $81,000              --     $450,000           --
  Net income available
   to common
   stockholders        $1,309,000        $508,000   $2,223,000   $1,394,000
  Earnings per
   common share
    Basic                    $.31            $.13         $.52         $.35
    Diluted                  $.30            $.13         $.51         $.34
  Weighted average
   common shares
   outstanding:
    Basic               4,234,000       3,984,000    4,297,000    3,990,000
    Diluted             4,310,000       4,038,000    4,372,000    4,060,000


DATASOURCE: Summa Industries



CONTACT:  Jim Swartwout of Summa Industries, [phone], or fax,

[phone], 



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

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