SL Industries, Inc. designs, manufactures equipment and systems that is used in a variety of medical, aerospace, computer, datacom, industrial, telecom, transportation and electric power utility applications.
It claims that it has improved performance for Q4 2010 in comparison to Q4 2009. Net incomes and net sales from continuing operations had increased by 122 percent and 27 percent respectively. Even when the full year ending December 31, 2010 was considered, the pattern was maintained.
Analysis showed that the net income for the full year 2009 included a loss due to discontinued operations that was related to a $7.8 million non-cash, pre-tax charge for environmental remediation booked in the second and fourth quarters of 2010 totaling $9.0 million related to the company’s Pennsauken and Camden sites.
When division results were considered SLPE 's and Teal Electronics also exhibited the same trend when income and sales for the fourth quarter and the full year were considered. SL-MTI (News - Alert), which designs and manufactures precision motors and instruments also experienced increased incomes and sales for the stipulated periods.
However, RFL, which provides a wide range of communications and relaying products, application support and customized systems to electric utilities, oil and Gas markets didn't appear to fare very well. Incomes from operations and sales were down when Q42010 and Q4 2009 were compared. However, when the full year ending December 31, 2010 was considered, income from operations and sales increased by 50 and seven percent respectively.
Corporate expenses for the full year ending December 31, 2010, exclusive of discontinued operations, increased 22 percent to $6.4 million. The majority of the year-over-year increase was $1.0 million related to the negotiation and settlement agreement with the Company’s former CEO and CFO.
Discontinued operations consist primarily of costs related to environmental matters at five sites in the state of New Jersey that were locations of operations discontinued by the Company. For the full year ended December 31, 2010 in addition to the charge related to the Puchack Well Field Superfund Site,
The company booked a pre-tax charge of $1.3 million. This was related to remediation at the company’s Camden, NJ site.
The company is involved in on-going negotiations with the US Department of Justice and the Environmental Protection Agency regarding this site which was named a Superfund Site in 1998.
The ultimate outcome of this matter and other environmental issues is inherently uncertain.
Cash and marketable securities decreased considerably at the end of 2009. This reduction in cash in 2010 and outstanding long-term debt were used to fund a $19.4 million tender offer. The company also plans to renew the debt agreement before it expires.Mini Swamy is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.
Edited by Jennifer Russell