Summa Announces Agreement to Sell Excess Real Estate
June 28 2005 - 9:02AM
PR Newswire (US)
Summa Announces Agreement to Sell Excess Real Estate TORRANCE,
Calif., June 28 /PRNewswire-FirstCall/ -- Summa Industries
(NASDAQ:SUMX) announces that it has entered into an agreement to
sell a factory site in Orange County, California to a real estate
developer for $4.8 million. The net gain to the Company is
anticipated to be approximately $2.7 million, or about $.65 per
share. The transaction, which is subject to numerous contingencies,
including governmental approvals and rezoning for residential use,
is scheduled to close in the first quarter of fiscal 2006. The
property is currently leased to a third party who has agreed to an
early lease termination. Because of the contingencies, the sale may
be delayed or cancelled. In December 2004, Summa announced plans to
divest several parcels of real estate which have or will become
excess, primarily as a result of consolidation and restructuring
initiatives. Summa estimated that the sales could result in a book
gain of $5 to $9 million and generate cash, net of taxes, of $9 to
$14 million. The parcels have been offered for sale separately and
the timing of each sale is uncertain. All of the properties are
zoned for industrial use. Some of the properties may have greater
value if they can be rezoned for residential or other use. While
rezoning may increase the value, the sale process would likely be
extended. In January 2005, one of three plants in Bensenville,
Illinois was sold for $1.0 million, generating a pre-tax gain of
$0.1 million, while the other two remain for sale. The effort to
sell a lake-front parcel in Michigan has so far been unsuccessful.
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
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 one or more parcels of real estate, the inability of the
Company to complete its consolidation plans, 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, 2004. For further
information, contact James R. Swartwout, (310) 792-7024; fax (310)
792-7079; ; or http://www.summaindustries.com/. DATASOURCE: Summa
Industries CONTACT: James R. Swartwout of Summa Industries,
+1-310-792-7024, or fax +1-310-792-7079, Web site:
http://www.summaindustries.com/
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