MT. LAUREL, N.J.--(BUSINESS WIRE)--May 21, 1999--SL Industries Inc. (NYSE:SL) (PhSE:SL) announced today that net income for the third quarter of fiscal 1999 ended April 30, 1999, was $1,402,000, or $0.24 per diluted share, on third quarter revenue of $30,474,000. For the third quarter of fiscal 1998, net income was $1,405,000, or $0.24 per diluted share, on revenue of $29,340,000. For the nine months ended April 30, 1999, net income was $3,944,000, or $0.67 per diluted share, on revenue of $89,805,000. For the same period of fiscal 1998, net income was $3,812,000, or $0.65 per diluted share, on revenue of $87,354,000. Owen Farren, president and CEO, said: "We continued with our strategy of developing technology, adding new power solutions, controlling cost and improving operating processes. Our ability to partner with customers and develop innovative solutions has resulted in continued new business despite the slowdown in electronic distribution and semiconductor sales compared to last year. "We increased engineering and product development investment 15% this quarter and 20% for the year to capitalize on long-term growth opportunities. SL Industries is in an excellent position to achieve growth as world economies and currently weak sectors recover. "Additionally, as previously announced, the company acquired RFL Electonics Inc. RFL Electronics is a $20 million company that designs and builds teleprotection products/systems used to protect electric utility transmission lines. This represents an important strategic addition to SL's portfolio of power and data quality solutions." SL Industries designs, manufactures and markets Power and Data Quality (PDQ) equipment and systems for industrial, medical, aerospace and consumer applications. For more information about SL Industries Inc. and its products, visit the company's Web site at www.slpdq.com. The statements contained in this release that are not historical facts may be deemed to constitute forward-looking statements. Actual results might differ materially from those projected in such statements due to a number of risks and uncertainties, including, without limitation, demand and competition for the company's services, and other risks or uncertainties detailed in the company's annual reports on Form 10-K as filed with the Securities and Exchange Commission filings. SL Industries Inc. Consolidated Statements of Earnings (In thousands, except for per share data) (Unaudited) Three-Months Ended Nine-Months Ended April 30, April 30, 1999 1998 1999 1998 Net sales $30,474 $29,340 $89,805 $87,354 Cost and expenses: Cost of products sold 19,473 18,370 57,896 55,152 Engineering and product development 1,885 1,639 5,578 4,642 Selling, general and administrative 5,647 6,248 16,716 18,989 Depreciation and amortization 963 792 2,886 2,291 Total cost and expenses 27,968 27,049 83,076 81,074 Income from operations 2,506 2,291 6,729 6,280 Other income (expense): Interest income 53 52 220 160 Interest expense (177) (94) (635) (275) Income before income taxes 2,382 2,249 6,314 6,165 Provision for federal and state income taxes 980 844 2,370 2,353 Net income $ 1,402 $ 1,405 $ 3,944 $ 3,812 Basic net income per common share $ 0.25 $ 0.25 $ 0.70 $ 0.68 Diluted net income per common share $ 0.24 $ 0.24 $ 0.67 $ 0.65 Shares used in computing basic net income per common share 5,653 5,575 5,648 5,598 Shares used in computing diluted net income per common share 5,864 5,882 5,883 5,899 SL Industries Inc. Consolidated Statements of Comprehensive Earnings (In thousands) (unaudited) Three-Months Ended Nine-Months Ended April 30, April 30, 1999 1998 1999 1998 Net income $ 1,402 $ 1,405 $ 3,944 $ 3,812 Other comprehensive income: Currency translation adjustment, net of related taxes (147) -- (54) -- Comprehensive income $ 1,255 $ 1,405 $ 3,890 $ 3,812 SL Industries Inc. Summary Consolidated Balance Sheets (In thousands) April 30, July 31, 1999 1998 (Unaudited) (Audited) Cash and cash equivalents $ 129 $ -- Accounts receivable 17,096 18,886 Inventories 18,502 18,538 Other current assets 3,003 3,986 Total current assets 38,730 41,410 Property, plant and equipment, net 13,818 14,890 Intangible assets, net 10,572 10,705 Other assets 15,249 13,910 Total assets $78,369 $80,915 Current liabilities $18,041 $20,066 Long-term debt less portion due within one year 10,064 13,283 Other liabilities 8,635 9,221 Shareholders' equity 41,629 38,345 Total liabilities and shareholders' equity $78,369 $80,915 -=-=- 