SL Industries Announces Financial Results for First Quarter 2010

SL Industries, Inc.. announced that revenue for the first quarter ended March 31, 2010 was $42,133,000, compared to $36,232,000 for the first quarter last year. Income from continuing operations was $1,276,000, or $0.21 per diluted share, compared to income from continuing operations of $245,000, or $0.04 per diluted share, for the same period in 2009. In addition, loss from discontinued operations was $150,000 for the first quarter of 2010, compared to a loss from discontinued operations of $196,000 for the same period last year. As a result, for the period ended March 31, 2010, the company recorded net income of $1,126,000, or $0.18 per diluted share, compared to net income of $49,000, or $0.01 per diluted share, for the same period last year.

The company reported net new orders of $55,039,000 for the first quarter of 2010, compared to net new orders of $42,615,000 in the first quarter of 2009. Backlog at March 31, 2010 was $67.3 million, as compared to $55.8 million a year earlier.

Commenting on the results, James Taylor, President and Chief Executive Officer of SL Industries, said, "Order activity accelerated during the fourth quarter 2009 and remained at elevated levels throughout the first quarter. As a result, net sales increased 16% from the first quarter of 2009 and the company’s book-to-bill ratio equaled 1.3 for the period. Increased bookings at the company have been driven by three factors: inventory replenishment, economic growth in most sectors and new programs recently awarded."

Taylor continued, "Despite the volume increase, however, customers are still unable to provide meaningful sales forecasts for the second half of the year. To meet accelerated demand for the company’s products, we have had to balance the need to contain expenses with the requisite to control fixed costs. In the first quarter the company guarded against increasing either its fixed costs or its market exposure by electing not to add headcount or unduly build inventories. This decision increased production expenses, but limited the company’s downside risk. Order levels have now been sufficiently robust that we have begun to make investments in personnel to improve the company’s production expenses."

"The most significant sales increase was experienced by the Power Electronics Group, which consists of SL Power Electronics Corp., Teal Electronics and MTE Corp.. Sales increased 20% from the first quarter 2009 and 15% from the fourth quarter 2009. SLPE experienced strength in all of its market sectors. In addition, a number of new standard and custom products began to generate revenue in the first quarter."

Taylor added, "SL Montevideo Technology recorded a 10% sales increase from the first quarter 2009, largely due to customer requests for accelerated deliveries. Order activity remains below prior year at this date. It appears that capital investment has not yet fully recovered in the commercial aerospace or natural resource recovery industries.

"RFL Electronics reported a 9% sales increase from the first quarter 2009. The award-winning GARD 8000 teleprotection product line continues to gain recognition in the utility industry and generate sales growth. The company’s new Ethernet substation access product, the eXmux, is also generating strong interest in the marketplace and is undergoing testing at a number of sites for domestic and international customers."