EDAC Technologies Continues To Report Record Quarterly Operating Profit
Monday October 22, 4:44 pm ET
FARMINGTON, Conn., Oct. 22 /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 third quarter of 2007.
Sales for the third quarter of 2007 were $12,525,000 and net income was $864,000 or $0.17 per diluted share, versus sales of $8,178,000 and net income of $171,000 or $0.04 per diluted share for the third quarter of 2006. Income from operations increased to $1,533,000 in 2007 from $426,000 in 2006.
For the nine months ended September 29, 2007, sales were $37,308,000 and net income was $2,465,000 or $0.50 per diluted share versus sales of $27,355,000 and net income of $878,000 or $0.18 per diluted share for the nine months ended September 30, 2006.
Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the continued strong and balanced quarterly results. Third quarter 2007 sales were our highest quarterly sales in eight years and the total backlog remains strong. Operating profit for the third quarter 2007 was the highest quarterly operating profit in our history. Comparing the third quarter to the second quarter, our sales increased $58,000 and net income increased $45,000. Through the third quarter we have further diversified our client base and invested over $2,305,000 in machinery and equipment to further expand our capacity and productivity. This was made possible by strong cash flow from operations which also reduced debt and increased shareholders' equity. We will continue to make investments and pursue opportunities that will sustain and 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.
Contact: Glenn L. Purple
Vice President-Finance
860 677-2603
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
September 29, December 30,
2007 2006
ASSETS
CURRENT ASSETS:
Cash $2,750,300 $925,197
Accounts receivable, net 7,752,080 7,331,226
Inventories, net 7,668,798 8,234,866
Prepaid expenses and other current assets 147,302 56,438
Refundable income taxes - 140,650
Deferred income taxes 211,394 211,394
Total current assets 18,529,874 16,899,771
PROPERTY, PLANT AND EQUIPMENT 32,952,486 30,646,744
Less: accumulated depreciation 22,013,938 20,315,938
10,938,548 10,330,806
DEFERRED INCOME TAXES 561,786 1,248,786
OTHER ASSETS 68,874 86,001
TOTAL ASSETS $30,099,082 $28,565,364
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $ - $ 1,000,000
Current portion of long-term debt 2,254,095 1,895,436
Trade accounts payable 4,408,010 4,806,090
Employee compensation and amounts withheld 1,827,462 1,511,820
Accrued expenses 246,214 355,415
Customer advances 131,689 120,767
Total current liabilities 8,867,470 9,689,528
LONG-TERM DEBT, less current portion 7,786,004 8,081,720
OTHER LONG-TERM LIABILITIES 163,981 163,981
SHAREHOLDERS' EQUITY:
Common stock 11,533 11,316
Additional paid-in capital 9,716,672 9,530,688
Retained earnings 5,036,463 2,571,172
Accumulated other comprehensive loss (1,483,041) (1,483,041)
Total shareholders' equity 13,281,627 10,630,135
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $30,099,082 $28,565,364
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the three months ended For the nine months ended
Sept 29, Sept. 30, Sept 29, Sept 30,
2007 2006 2007 2006
Sales $12,525,403 $8,178,356 $ 37,308,102 $ 27,354,709
Cost of sales 10,012,338 7,071,446 30,001,252 22,858,403
Gross profit 2,513,065 1,106,910 7,306,850 4,496,306
Selling, general
and
administrative
expenses 980,308 681,405 2,877,958 2,665,548
Income from
operations 1,532,757 425,505 4,428,892 1,830,758
Non-operating
income (expense):
Interest expense (179,324) (167,069) (543,813) (485,544)
Other income 18,897 17,619 29,212 73,641
Income before
income taxes 1,372,330 276,055 3,914,291 1,418,855
Provision for
income taxes 508,000 105,000 1,449,000 541,000
Net income $864,330 $171,055 $2,465,291 $877,855
Income per common
share data:
Basic income
per share $0.19 $0.04 $0.54 $0.19
Diluted income
per share $0.17 $0.04 $0.50 $0.18
Weighted average shares
outstanding:
Basic 4,605,603 4,518,437 4,571,936 4,513,354
Diluted 4,953,970 4,784,457 4,909,430 4,791,205
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Source: EDAC Technologies Corporation
