EDAC Technologies Reports Third Quarter Results
Tuesday October 28, 4:05 pm ET
FARMINGTON, Conn., Oct. 28 /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 2008.
Sales for the third quarter of 2008 were $10,547,000 and net income was $255,000 or $0.05 per diluted share, versus sales of $12,525,000 and net income of $864,000 or $0.17 per diluted share for the third quarter of 2007.
For the nine months ended September 27, 2008, sales were $32,577,000 and net income was $1,418,000 or $0.28 per diluted share versus sales of $37,308,000 and net income of $2,465,000 or $0.50 per diluted share for the nine months ended September 29, 2007.
Dominick A. Pagano, President and Chief Executive Officer, said, "Conditions in the aerospace markets and in the economy in general impacted our third quarter greater than we had anticipated. Our aerospace customers continued to make changes to our delivery schedules. The fourth quarter will experience further scheduling changes due to production delays in Boeing's 787 program, and delivery delays in its 777 program caused by its machinists' strike. Our Apex Machine Tool product line, while experiencing some softness in its traditional markets over the past quarter, committed certain resources to the process development and production of a large order from a customer in a new energy market that will ship in late 2008 and early 2009. Our commitment to broaden EDAC's customer base and product line is yielding results. While we maintain our traditional customers, the growth in our sales backlog to a large extent, consists of customers that we did not have at the beginning of the year."
Pagano added, "We have and will continue to be proactive in minimizing the impact of external forces that are beyond our control, and fully anticipate that the aerospace market will be strong in the long-term. Our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."
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 changes in customer delivery schedules, 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 ended For the nine months ended
Sept. 27, Sept. 29, Sept. 27, Sept. 29,
2008 2007 2008 2007
Sales $10,547,124 $12,525,403 $32,577,388 $37,308,102
Cost of sales 9,161,877 10,012,338 27,276,156 30,001,252
Gross profit 1,385,247 2,513,065 5,301,232 7,306,850
Selling, general and
administrative
expenses 842,868 980,308 2,676,232 2,877,958
Income from
operations 542,379 1,532,757 2,625,000 4,428,892
Non-operating income
(expense):
Interest expense (158,885) (179,324) (478,510) (543,813)
Other income 8,425 18,897 62,354 29,212
Income before income
taxes 391,919 1,372,330 2,208,844 3,914,291
Provision for income
taxes 137,000 508,000 791,000 1,449,000
Net income $254,919 $864,330 $1,417,844 $2,465,291
Income per common share
data:
Basic income per
share $0.05 $0.19 $0.30 $0.54
Diluted income per
share $0.05 $0.17 $0.28 $0.50
Weighted average shares
outstanding:
Basic 4,746,137 4,605,603 4,693,020 4,571,936
Diluted 5,139,922 4,953,970 5,152,739 4,909,430
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
September 27, December 29,
2008 2007
ASSETS
CURRENT ASSETS:
Cash $2,011,935 $3,286,203
Accounts receivable, net 8,035,291 7,638,573
Inventories, net 9,648,975 6,598,111
Prepaid expenses and other current
assets 143,905 51,339
Refundable income taxes - 284,577
Deferred income taxes 880,124 933,124
Total current assets 20,720,230 18,791,927
PROPERTY, PLANT AND EQUIPMENT 35,192,245 34,869,219
Less: accumulated depreciation 23,665,109 22,390,417
11,527,136 12,478,802
OTHER ASSETS, net 1,224,174 492,051
TOTAL ASSETS $33,471,540 $31,762,780
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $1,365,590 $-
Current portion of long-term debt 2,350,876 2,285,704
Trade accounts payable 4,342,755 4,021,827
Employee compensation and amounts
withheld 1,484,161 1,800,390
Accrued expenses 226,508 395,950
Customer advances 891,827 424,439
Total current liabilities 10,661,717 8,928,310
LONG-TERM DEBT, less current portion 5,434,412 7,204,769
DEFERRED INCOME TAXES 448,660 448,660
SHAREHOLDERS' EQUITY:
Common stock 12,063 11,591
Additional paid-in capital 10,573,271 10,245,877
Retained earnings 7,438,086 6,020,242
Accumulated other comprehensive loss (1,096,669) (1,096,669)
Total shareholders' equity 16,926,751 15,181,041
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $33,471,540 $31,762,780
Contact: Glenn L. Purple, Vice President-Finance 860-677-2603
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Source: EDAC Technologies Corporation
