EDAC Technologies Again Reports Record Quarterly Operating Profit and Their Highest Quarterly Sales in Eight Years
Monday July 30, 6:48 pm ET
FARMINGTON, Conn., July 30 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the second quarter of 2007.
Sales for the second quarter of 2007 were $12,467,000 and net income was $820,000 or $0.17 per diluted share, versus sales of $9,581,000 and net income of $414,000 or $0.09 per diluted share for the second quarter of 2006. Income from operations increased to $1,466,000 in 2007 from $794,000 in 2006. The second quarter of 2006 included costs of $116,000 which were not incurred in the second quarter of 2007 and consisted primarily of costs associated with expansion of our manufacturing capacity by approximately 24,000 square feet and bonus expense.
For the six months ended June 30, 2007, sales were $24,783,000 and net income was $1,601,000 or $0.33 per diluted share versus sales of $19,176,000 and net income of $707,000 or $0.15 per diluted share for the six months ended July 1, 2006. Selling, general and administrative expenses for the six months ended July 1, 2006 include $342,000 of costs which were not incurred in the six months ended June 30, 2007 and consisted primarily of plant reconditioning and moving expenses, professional fees and bonuses.
Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the continued strong results. Our operating profit for the second quarter was the highest in our history. Total backlog remains strong at $31,500,000. Our second quarter sales were our highest quarterly sales in eight years. Sales increased by $2,901,000 in our Precision Aerospace product line for the second quarter 2007 compared to the second quarter 2006. Our 2007 capital plan includes over $3.7 million in machinery and equipment additions to increase productivity and production capacity. Through the second quarter we have invested over $1,139,000 in machinery and equipment and have made commitments for an additional $1 million. We are also very pleased to have returned to the NASDAQ Stock Exchange on May 31, 2007. We will continue to make investments and pursue opportunities that will position us for future growth and strengthen EDAC for the long term."
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company primarily offering (i) design and manufacturing services for the aerospace industry in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines (ii) high-precision fixtures, gauges, dies and molds and (iii) the design, manufacture and repair of precision spindles, which are an integral part of numerous machine tools found in virtually every manufacturing environment.
Cautionary Statement Regarding Forward Looking Statements - This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company uses words such as "plans," seeks," "projects," "expects," "believes," "may," "anticipates," "estimates," "should," and similar expressions to identify these forward looking statements. These statements are subject to risks and uncertainties and are based upon the Company's beliefs and assumptions. There are a number of important factors that may affect the Company's actual performance and results and the accuracy of its forward-looking statements, many of which are beyond the control of the Company and are difficult to predict. These important factors include, without limitation, factors which could affect demand for the Company's products and services such as general economic conditions and economic conditions in the aerospace industry and the other industries in which the Company competes; competition from the Company's competitors; and the Company's ability to enter into satisfactory financing arrangements. These and other factors are described in the Company's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's expectations and beliefs as of the date of this release. The Company anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation or intention to do so.
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the three months ended For the six months ended
June 30, July 1, June 30, July 1,
2007 2006 2007 2006
Sales $12,467,061 $9,580,774 $24,782,699 $19,176,353
Cost of sales 10,020,820 7,816,023 19,988,914 15,786,957
Gross profit 2,446,241 1,764,751 4,793,785 3,389,396
Selling, general and
administrative
expenses 980,025 970,278 1,897,650 1,984,143
Income from
operations 1,466,216 794,473 2,896,135 1,405,253
Non-operating
income (expense):
Interest expense (170,053) (165,076) (364,489) (318,475)
Other income 5,520 41,634 10,315 56,022
Income before
income taxes 1,301,683 671,031 2,541,961 1,142,800
Provision for
income taxes 482,000 257,000 941,000 436,000
Net income $819,683 $414,031 $1,600,961 $706,800
Income per common
share data:
Basic income per share $0.18 $0.09 $0.35 $0.16
Diluted income per
share $0.17 $0.09 $0.33 $0.15
Weighted average
shares outstanding:
Basic 4,571,853 4,515,104 4,554,294 4,511,175
Diluted 4,920,872 4,800,896 4,885,743 4,796,109
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
June 30, December 30,
2007 2006
ASSETS
CURRENT ASSETS:
Cash $1,295,643 $925,197
Accounts receivable, net 7,101,595 7,331,226
Inventories, net 7,993,124 8,234,866
Prepaid expenses and other current assets 108,527 56,438
Refundable income taxes 140,650 140,650
Deferred income taxes 211,394 211,394
Total current assets 16,850,933 16,899,771
PROPERTY, PLANT AND EQUIPMENT 31,785,360 30,646,744
Less: accumulated depreciation 21,448,938 20,315,938
10,336,422 10,330,806
DEFERRED INCOME TAXES 1,022,786 1,248,786
OTHER ASSETS 74,583 86,001
TOTAL ASSETS $28,284,724 $28,565,364
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $756,340 $-
Revolving line of credit - 1,000,000
Current portion of long-term debt 1,959,503 1,895,436
Trade accounts payable 3,586,054 4,806,090
Employee compensation and amounts
withheld 1,697,205 1,511,820
Accrued expenses 548,084 355,415
Customer advances 116,552 120,767
Total current liabilities 8,663,738 9,689,528
LONG-TERM DEBT, less current portion 7,083,514 8,081,720
OTHER LONG-TERM LIABILITIES 163,981 163,981
SHAREHOLDERS' EQUITY:
Common stock 11,458 11,316
Additional paid-in capital 9,672,941 9,530,688
Retained earnings 4,172,133 2,571,172
Accumulated other comprehensive loss (1,483,041) (1,483,041)
Total shareholders' equity 12,373,491 10,630,135
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $28,284,724 $28,565,364
Contact:
Glenn L. Purple
Vice President-Finance
860 677-2603
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Source: EDAC Technologies Corporation
