EDAC Technologies Reports First Quarter Results
On Tuesday April 28, 2009, 4:10 pm EDT
FARMINGTON, Conn., April 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 first quarter of 2009.
Sales for the first quarter of 2009 were $9,584,000 and net income was $56,000 or $0.01 per diluted share, versus sales of $11,181,000 and net income of $630,000 or $0.13 per diluted share for the first quarter of 2008.
Dominick A. Pagano, President and Chief Executive Officer, said, "Market and general economic conditions during Q3 and Q4 2008 continued to impact our results in the first quarter. Production delays in Boeing's 787 program and delivery delays in its 777 program caused by its machinists' strike last year continue to impact our shipments. Our aerospace customers made further changes to our delivery schedules. Sales decreased $1,497,000 for aerospace customers and $100,000 for non-aerospace customers in the first quarter of 2009 compared to the first quarter of 2008. While our first quarter sales to the aerospace market decreased by $377,000 from the fourth quarter of 2008, we believe based on our customers' current schedules that sales to the aerospace market for the second quarter of 2009 will improve over the first quarter of 2009.
"While our relentless focus on cost reductions reduced the impact of the sales decline on our profit for the quarter, the profit was further impacted by approximately $120,000 expensed on the product development and engineering of new parts for the aerospace industry.
"Total company backlog increased from $52.4 million at the end of fiscal 2008 to $53.4 million at April 4, 2009, reflecting a net increase of $1.0 million in our Aerospace product line.
"We plan to invest in excess of $4 million in new machinery and equipment in 2009 including the two large machines currently on order, to increase our capabilities and capacity and improve productivity in the aerospace product line.
"I reaffirm what I said last quarter, 'We have and will continue to be proactive in attempting to minimize the impact of external forces by implementing aggressive cost controls and we 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 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 quarter ended
April 4, March 29,
2009 2008
---- ----
Sales $9,583,775 $11,181,103
Cost of Sales 8,503,339 9,095,094
--------- ---------
Gross Profit 1,080,436 2,086,009
Selling, General and
Administrative Expenses 861,256 969,120
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Income From Operations 219,180 1,116,889
Non-Operating Income (Expense):
Interest Expense (139,842) (164,577)
Other 6,875 44,555
----- ------
Income Before Income Taxes 86,213 996,867
Provision for Income Taxes 29,800 367,000
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Net Income $56,413 $629,867
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Income per common share data:
Basic income per share $0.01 $0.14
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Diluted income per share $0.01 $0.13
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Weighted average shares
outstanding:
Basic 4,825,303 4,652,928
Diluted 4,861,617 4,976,915
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
April 4, January 3,
2009 2009
---- ----
ASSETS
------
CURRENT ASSETS:
Cash $657,791 $1,311,092
Accounts receivable, net 7,107,831 7,931,550
Inventories, net 9,130,132 7,961,788
Prepaid expenses and other
current assets 227,200 107,333
Refundable income taxes 161,708 686,708
Deferred income taxes 983,298 983,298
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Total current assets 18,267,960 18,981,769
---------- ----------
PROPERTY, PLANT AND EQUIPMENT 35,423,794 35,347,124
Less: accumulated
depreciation 24,329,100 23,992,878
---------- ----------
11,094,694 11,354,246
---------- ----------
DEFERRED INCOME TAXES 95,971 105,971
------ -------
OTHER ASSETS 1,791,927 1,021,638
--------- ---------
TOTAL ASSETS $31,250,552 $31,463,624
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Equipment line of credit $2,448,490 $1,674,990
Current portion of
long-term debt 2,110,318 2,376,018
Trade accounts payable 2,816,566 3,485,192
Employee compensation
and amounts withheld 1,264,594 1,112,006
Accrued expenses 341,646 361,252
Customer advances 289,747 261,643
------- -------
Total current liabilities 9,271,361 9,271,101
--------- ---------
LONG-TERM DEBT,
less current portion 4,503,139 4,827,697
--------- ---------
OTHER LONG-TERM LIABILITIES 1,698,233 1,698,233
--------- ---------
SHAREHOLDERS' EQUITY:
Common stock 12,063 12,063
Additional paid-in capital 10,989,549 10,934,736
Retained earnings 7,215,013 7,158,600
Accumulated other
comprehensive loss (2,438,806) (2,438,806)
--------- ---------
Total shareholders'
equity 15,777,819 15,666,593
---------- ----------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $31,250,552 $31,463,624
---------- ----------
Contact: Glenn L. Purple, Vice President-Finance, 860-677-2603
