EDAC Technologies Reports Fourth Quarter and Full Year EPS of $0.20 and $0.70, Up 43% and 119%, Respectively
Tuesday February 26, 7:00 pm ET
FARMINGTON, Conn., Feb. 26 /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 fourth quarter and the fiscal year of 2007.
Sales for the fourth quarter of 2007 were $12,710,000 and net income was $984,000 or $0.20 per diluted share, versus sales of $10,975,000 and net income of $677,000 or $0.14 per diluted share for the fourth quarter of 2006. Income from operations increased to $1,632,000 in the fourth quarter of 2007 from $1,057,000 in the fourth quarter of 2006.
For the year ended December 29, 2007, sales were $50,019,000 and net income was $3,449,000 or $0.70 per diluted share versus sales of $38,329,000 and net income of $1,554,000 or $0.32 per diluted share for the year ended December 30, 2006.
Dominick A. Pagano, President and Chief Executive Officer, said, "This year is our fourth year of improving sales and operating profits. For the fourth quarter we posted our highest quarterly sales in the past eight years and our highest quarterly operating income in our history. Comparing the fourth quarter to the third quarter, our sales increased $185,000 and net income increased $119,000. For the year we have invested $4,300,000 in property, plant and equipment, including the acquisition of our new Aero Engine Components Repair business in December. This was made possible by strong cash flow provided by operating activities of over $7,600,000 which also provided funds to reduce debt. Total company backlog increased from $28.8 million at the end of fiscal 2006 to $30.1 million at December 29, 2007, and to $51.0 million at February 23, 2008. Approximately $18 million of this increase was from a new aerospace customer with deliveries scheduled from 2009 through 2012."
"Due to our aerospace customers changing their delivery schedules, shipments in the first and possibly second quarters of 2008 will be down compared to 2007 levels. We believe that this is a temporary condition. We are continuing our strategy of investing heavily in state-of-the-art machinery and equipment and plan on investing $3.7 to $5.0 million in 2008 primarily in machinery and equipment to increase our capabilities and capacity, and improve productivity in the aerospace product line."
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
For the three months For the twelve months
ended ended
Dec. 29, Dec. 30, Dec. 29, Dec. 30,
2007 2006 2007 2006
Sales $12,710,482 $10,974,503 $50,018,584 $38,329,212
Cost of sales 10,034,056 9,213,682 40,035,308 32,072,085
Gross profit 2,676,426 1,760,821 9,983,276 6,257,127
Selling, general and
administrative expenses 1,044,069 703,472 3,922,027 3,369,020
Income from operations 1,632,357 1,057,349 6,061,249 2,888,107
Non-operating income
(expense):
Interest expense (177,422) (178,783) (721,235) (664,327)
Other income 31,358 17,205 60,570 90,846
Income before income
taxes 1,486,293 895,771 5,400,584 2,314,626
Provision for income taxes 502,514 219,238 1,951,514 760,238
Net income $983,779 $676,533 $3,449,070 $1,554,388
Income per common share data:
Basic income per share $0.21 $0.15 $0.75 $0.34
Diluted income per share $0.20 $0.14 $0.70 $0.32
Weighted average shares
outstanding:
Basic 4,624,403 4,522,437 4,584,913 4,515,757
Diluted 4,979,532 4,777,398 4,943,291 4,795,564
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 29, December 30,
2007 2006
ASSETS
CURRENT ASSETS:
Cash $3,286,203 $925,197
Accounts receivable, net 7,638,573 7,331,226
Inventories, net 6,598,111 8,234,866
Prepaid expenses and other current assets 51,339 56,438
Refundable income taxes 284,577 140,650
Deferred income taxes 933,124 211,394
Total current assets 18,791,927 16,899,771
PROPERTY, PLANT AND EQUIPMENT 34,869,219 30,646,744
Less: accumulated depreciation 22,390,417 20,315,938
12,478,802 10,330,806
DEFERRED INCOME TAXES - 1,248,786
OTHER ASSETS 492,051 86,001
TOTAL ASSETS $31,762,780 $28,565,364
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $- $1,000,000
Current portion of long-term debt 2,285,704 1,895,436
Trade accounts payable 4,021,827 4,806,090
Employee compensation and amounts withheld 1,800,390 1,511,820
Accrued expenses 395,950 355,415
Customer advances 424,439 120,767
Total current liabilities 8,928,310 9,689,528
LONG-TERM DEBT, less current portion 7,204,769 8,081,720
OTHER LONG-TERM LIABILITIES - 163,981
DEFERRED INCOME TAXES 448,660 -
SHAREHOLDERS' EQUITY:
Common stock 11,591 11,316
Additional paid-in capital 10,245,877 9,530,688
Retained earnings 6,020,242 2,571,172
Accumulated other comprehensive loss (1,096,669) (1,483,041)
Total shareholders' equity 15,181,041 10,630,135
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $31,762,780 $28,565,364
Contact: Glenn L. Purple, Vice President-Finance 860-677-2603
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Source: EDAC Technologies Corporation
