EDAC Technologies Reports Second Quarter Results
On Wednesday July 29, 2009, 7:57 pm EDT
FARMINGTON, Conn., July 29 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of jet engine components, tools, fixtures, injection molds and spindles, today reported results for the second quarter of 2009.
Sales for the second quarter of 2009 were $13,629,000 and net income was $7,376,000 or $1.50 per diluted share, versus sales of $10,849,000 and net income of $533,000 or $0.11 per diluted share for the second quarter of 2008.
For the six months ended July 4, 2009, sales were $23,213,000 and net income was $7,433,000 or $1.52 per diluted share versus sales of $22,030,000 and net income of $1,163,000 or $0.23 per diluted share for the six months ended June 28, 2008.
As previously announced, EDAC acquired the assets of the manufacturing unit of MTU AENA, located in Newington, Connecticut on May 27, 2009. Operating now as EDAC Aero, the new operation primarily manufactures rotating components such as disks, rings and shafts for the aerospace industry. As prescribed by generally accepted accounting principles, the net assets acquired were recorded at fair value, which exceeded the purchase price by approximately $11,700,000. This difference has been recorded primarily as property, plant and equipment and other income in the financial statements.
Dominick A. Pagano, President and Chief Executive Officer, said, "Our results include the operations of our newest acquisition, EDAC Aero, since May 27th. EDAC Aero contributed sales of $2,369,000 for the period and contributed to EDAC's operating income. Among its domestic and international aerospace customers, EDAC Aero continues as a supplier to MTU Aero Engines in Germany. Organically, our sales increased by $1,676,000 over the first quarter of 2009 and by $411,000 over the second quarter of 2008."
Pagano added, "We expect the EDAC Aero transaction to be accretive to our earnings per share and is consistent with our long term strategic plan of incorporating growth through organic operations and acquisitions. The new product lines, customers and technologies will complement our existing business, and will provide us with a platform to further leverage our assets and resources to further enhance shareholder value. Our balance sheet is strong and our shareholders' equity is $23,228,000 at July 4, 2009.
As always, 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) manufacturing and design 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 STATEMENTS OF OPERATIONS
UNAUDITED
For the three months ended For the six months ended
July 4, June 28, July 4, June 28,
2009 2008 2009 2008
Sales $13,628,817 $10,849,161 $23,212,592 $22,030,264
Cost of sales 11,933,020 9,019,185 20,436,359 18,114,279
Gross profit 1,695,797 1,829,976 2,776,233 3,915,985
Selling, general and
administrative expenses 1,180,605 864,244 2,041,861 1,833,364
Income from operations 515,192 965,732 734,372 2,082,621
Non-operating income
(expense):
Interest expense (190,583) (155,048) (330,425) (319,625)
Other income 11,739,578 9,374 11,746,453 53,929
Income before income
taxes 12,064,187 820,058 12,150,400 1,816,925
Provision for income
taxes 4,688,024 287,000 4,717,824 654,000
Net income $7,376,163 $533,058 $7,432,576 $1,162,925
Income per common share
data:
Basic income per share $1.53 $0.11 $1.54 $0.25
Diluted income per share $1.50 $0.11 $1.52 $0.23
Weighted average shares
outstanding:
Basic 4,829,678 4,666,970 4,827,803 4,658,946
Diluted 4,918,711 4,956,739 4,892,184 4,970,310
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
July 4, January 3,
2009 2009
ASSETS
CURRENT ASSETS:
Cash $308,484 $1,311,092
Accounts receivable, net 13,059,271 7,931,550
Inventories, net 18,191,098 7,961,788
Prepaid expenses and other current
assets 383,066 107,333
Refundable income taxes 111,883 686,708
Deferred income taxes 918,567 983,298
Total current assets 32,972,369 18,981,769
PROPERTY, PLANT AND EQUIPMENT 47,640,684 35,347,124
Less: accumulated depreciation 24,861,164 23,992,878
22,779,520 11,354,246
DEFERRED INCOME TAXES - 105,971
OTHER ASSETS 2,307,682 1,021,638
TOTAL ASSETS $58,059,571 $31,463,624
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $3,258,490 $1,674,990
Current portion of long-term debt 2,434,928 2,376,018
Trade accounts payable 6,433,669 3,485,192
Employee compensation and amounts
withheld 1,586,690 1,112,006
Accrued expenses 1,526,851 361,252
Customer advances 438,530 261,643
Total current liabilities 15,679,158 9,271,101
LONG-TERM DEBT, less current portion 13,042,605 4,827,697
OTHER LONG-TERM LIABILITIES 1,698,233 1,698,233
DEFERRED INCOME TAXES 4,411,868 -
SHAREHOLDERS' EQUITY:
Common stock 12,095 12,063
Additional paid-in capital 11,063,241 10,934,736
Retained earnings 14,591,177 7,158,600
Accumulated other comprehensive loss (2,438,806) (2,438,806)
Total shareholders' equity 23,227,707 15,666,593
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $58,059,571 $31,463,624
