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I still own a nice amount of EDAC although I don't own as much as I once did.
I heard on CNBC maybe a week back that there was a downgrade on Boeing (BA) but I haven't been able to find that today. So, I'm not sure about that. BA stock is still pretty close to its 52 week high.
If EDAC hits the estimates that I came up with in late July the stock will move considerably higher. Here is a link to my estimates:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=21680701
One thing that does concern me with EDAC is that the backlog growth has stagnated a bit. However, EDAC has been expanding capacity. I have to believe that they have a good reason for expanding capacity and that will ultimately result in higher revenue.
I trimmed my position when the stock went back over $8 in August. If the stock pulls back much further I may consider reloading some shares.
It will be interesting to see what KRSL reports. I think their report should be out by the end of September.
Mike
EDAC..been on a slow trickle downward..ugh
any thoughts why?...lack of any significant news perhaps? Their investor relations are impossible to get hold of. The other aeros SIF, KRSL don't seem to be doing much either. All thoughts appreciated. thx..biot
Now that the 10Q is out..any opinions?
Thank you for all your sage thoughts. Appreciate it!
Happy trading and a good weekend to all!
Brgds, Biot
Yes, since Industry PE is 24, you are certainly dead wrong.. $15 fair value.
All the people who weren't "impressed" with record earnings and growth.. best to get rid of them and paas this on to the strong hands who will take this to $15 fair value.
Here is a table showing revenue and GM by quarter:
Quarter Revenue GM
Q2'07 $12.467M 19.6%
Q1'07 $12.316M 19.1%
Q4'06 $10.975M 16.0%
Q3'06 $8.178M 13.5%
Q2'06 $9.581M 18.4%
Q1'06 $9.596M 16.9%
Q4'05 $9.442M 17.1%
Q3'05 $8.688M 17.0%
Q2'05 $8.899M 17.3%
Q1'05 $9.596M 16.8%
I think we will continue to see EDAC earnings grow as they expand their capacity. I'm expecting Q3 earnings to be in the $0.19-$0.23 range, Q4 earnings in the $0.21-$0.25 range, and Q1'08 earnings in the $0.23-$0.27 range. If we reach Q1'08 earnings of $0.25/share I think the share price will be in the $14-$15 range by late May of 2008.
Mike
Post the guidance please, didn't see it...TIA also seeing .17 not .20 on earnings?? tuna
Here is the updated historical backlog information:
Date Amount
07/30/2007 $31.5M + LOI?^
03/31/2007 $31.6M + $4.5M LOI^ = $36.1
02/28/2007 $32.4M
09/30/2006 $31.0M
07/01/2006 $28.3M
04/01/2006 $25.0M
12/31/2005 $21.7M
10/01/2005 $22.1M
07/02/2005 $21.7M
04/02/2005 $20.6M
01/01/2005 $18.3M
I wasn't terribly impressed so sold a bit at $9.25. Sequentially things were not very strong but they did take out another loan against their property recently (probably for more machining tooling for Precision) and Pagano's words in PR make me think they're remaining aggressive in expanding. Not great, not bad...
Backlog appears to be down slightly sequentially here. Stock isn't that far from fair value in my opinion here. Granted I could always be though.
Disclosure: I do not own EDAC At this time.
EDAC Technologies Again Reports Record Quarterly Operating Profit and Their Highest Quarterly Sales in Eight Years
Monday July 30, 6:48 pm ET
FARMINGTON, Conn., July 30 /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 second quarter of 2007.
Sales for the second quarter of 2007 were $12,467,000 and net income was $820,000 or $0.17 per diluted share, versus sales of $9,581,000 and net income of $414,000 or $0.09 per diluted share for the second quarter of 2006. Income from operations increased to $1,466,000 in 2007 from $794,000 in 2006. The second quarter of 2006 included costs of $116,000 which were not incurred in the second quarter of 2007 and consisted primarily of costs associated with expansion of our manufacturing capacity by approximately 24,000 square feet and bonus expense.
For the six months ended June 30, 2007, sales were $24,783,000 and net income was $1,601,000 or $0.33 per diluted share versus sales of $19,176,000 and net income of $707,000 or $0.15 per diluted share for the six months ended July 1, 2006. Selling, general and administrative expenses for the six months ended July 1, 2006 include $342,000 of costs which were not incurred in the six months ended June 30, 2007 and consisted primarily of plant reconditioning and moving expenses, professional fees and bonuses.
Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the continued strong results. Our operating profit for the second quarter was the highest in our history. Total backlog remains strong at $31,500,000. Our second quarter sales were our highest quarterly sales in eight years. Sales increased by $2,901,000 in our Precision Aerospace product line for the second quarter 2007 compared to the second quarter 2006. Our 2007 capital plan includes over $3.7 million in machinery and equipment additions to increase productivity and production capacity. Through the second quarter we have invested over $1,139,000 in machinery and equipment and have made commitments for an additional $1 million. We are also very pleased to have returned to the NASDAQ Stock Exchange on May 31, 2007. We will continue to make investments and pursue opportunities that will 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.
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the three months ended For the six months ended
June 30, July 1, June 30, July 1,
2007 2006 2007 2006
Sales $12,467,061 $9,580,774 $24,782,699 $19,176,353
Cost of sales 10,020,820 7,816,023 19,988,914 15,786,957
Gross profit 2,446,241 1,764,751 4,793,785 3,389,396
Selling, general and
administrative
expenses 980,025 970,278 1,897,650 1,984,143
Income from
operations 1,466,216 794,473 2,896,135 1,405,253
Non-operating
income (expense):
Interest expense (170,053) (165,076) (364,489) (318,475)
Other income 5,520 41,634 10,315 56,022
Income before
income taxes 1,301,683 671,031 2,541,961 1,142,800
Provision for
income taxes 482,000 257,000 941,000 436,000
Net income $819,683 $414,031 $1,600,961 $706,800
Income per common
share data:
Basic income per share $0.18 $0.09 $0.35 $0.16
Diluted income per
share $0.17 $0.09 $0.33 $0.15
Weighted average
shares outstanding:
Basic 4,571,853 4,515,104 4,554,294 4,511,175
Diluted 4,920,872 4,800,896 4,885,743 4,796,109
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
June 30, December 30,
2007 2006
ASSETS
CURRENT ASSETS:
Cash $1,295,643 $925,197
Accounts receivable, net 7,101,595 7,331,226
Inventories, net 7,993,124 8,234,866
Prepaid expenses and other current assets 108,527 56,438
Refundable income taxes 140,650 140,650
Deferred income taxes 211,394 211,394
Total current assets 16,850,933 16,899,771
PROPERTY, PLANT AND EQUIPMENT 31,785,360 30,646,744
Less: accumulated depreciation 21,448,938 20,315,938
10,336,422 10,330,806
DEFERRED INCOME TAXES 1,022,786 1,248,786
OTHER ASSETS 74,583 86,001
TOTAL ASSETS $28,284,724 $28,565,364
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $756,340 $-
Revolving line of credit - 1,000,000
Current portion of long-term debt 1,959,503 1,895,436
Trade accounts payable 3,586,054 4,806,090
Employee compensation and amounts
withheld 1,697,205 1,511,820
Accrued expenses 548,084 355,415
Customer advances 116,552 120,767
Total current liabilities 8,663,738 9,689,528
LONG-TERM DEBT, less current portion 7,083,514 8,081,720
OTHER LONG-TERM LIABILITIES 163,981 163,981
SHAREHOLDERS' EQUITY:
Common stock 11,458 11,316
Additional paid-in capital 9,672,941 9,530,688
Retained earnings 4,172,133 2,571,172
Accumulated other comprehensive loss (1,483,041) (1,483,041)
Total shareholders' equity 12,373,491 10,630,135
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $28,284,724 $28,565,364
$.20 EPS with great guidance
$.20 EPS with great guidance
$.20 EPS with great guidance
what do you think regarding edac do you think they are going to release great numbers
EDAC: MUST READ from Lion Board
From Pony on Lion this guy has read every word in EDAC SEC filings:
Spoke with CFO Glenn Purple and EDAC didn't pre announce due to being back on Nasdaq and most likely will NOT be preannouncing anymore. Also earnings moving up to this Monday afternoon during mkt hours and last he stated the Aerospace parts biz and Aero in general is in the biggest up cycle he's EVER seen and looking out the cycle has great visibility going out 8 to 12 years HOT HOT HOT... GLTA
I said $0.17 to $0.22 in the post below. I think this is still the right range but I expect it more towards the lower end of the range.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=18500607
Mike
Hi Mike,
Any predictions on Edac's 2nd qtr nbrs? Shouldn't they have been out by now? No preliminary reports out, but I guess that's not a big deal. Thanks! brgds, biot.
I agree MikeS, the lack of pushing money into capacity (due to past cyclical experiences) in aero companies gives the guys that put the money out early an advantage. That was kinda my point when mentioning EDAC compared to SIF and KRSL, and why I liked EDAC best. They've been more aggressive with expansion.
But, as always, when the cycle turns it may leave them more vulnerable. There's so much backlog now though at many aero supplier companies that I don't think there'll be a major shift any time soon for the suppliers. So EDAC should be able to enjoy the upswing for awhile... Wish I hadn't gotten scared out of shares awhile back when they threw out a crappy Q. I sold a fair amount once the EDAC shares turned positive again. Starting to get same kind of feel with AYSI, starting to feel a bit of 'fear' creeping in but will NOT repeat my mistake on EDAC if AYSI's next Q is back on track. EDAC's Naz listing will help bring more exposure to earnings reports too going forward, which might also provide more catalyst for upside if numbers are good (going off southacresdave's comments of low float and bigger players wanting in). Good luck to us:)
Very interesting thread on EDAC, with daily updates on this stocks. The portfolio manager has already a 6.3% gain on it, and the entire portfolio is up 11.52%, since inception 1st June.
http://www.stocksonvideo.com/forum/index.php?topic=41.msg198#msg198&ref=video
EDAC....If the overall market holds up, I think aerospace stocks have got a solid run still in front of them. I still wouldn't be suprised to see EDAC at $20 next Spring if they keep growing revenue quarterly.
What definitely helps is a 3M share float. It doesn't take too many days of 100-200K volume to churn it over and put the newest investors in at higher levels. Any institution that wants in is forced to bid the price up. Today is a perfect example.
Dave
EDAC breaking to new high.
EDAC stock is having a nice day. I think in part this movement is due to new orders PR'd by Boeing at the air show. This sector has been hot!
Mike
-------------
Boeing Books Big 787 Order at Air Show
Tuesday June 19, 10:56 am ET
By Jane Wardell, AP Business Writer
ILFC Orders 63 Boeing Jets With a Total List Price of $8.8B
LE BOURGET, France (AP) -- International Lease Finance Corp., the world's largest airline leasing company, announced an order for 63 Boeing Co. jets, including 50 of the planemaker's flagship 787 Dreamliners on Tuesday.
The additional orders for the Dreamliner makes Los Angeles-based ILFC the biggest customer for the first commercial jet made of light, sturdy, carbon-fiber composites instead of aluminum. It now has a total of 74 firm orders.
Sales of the 787 have far outstripped those of rival Airbus' A350 after the European company -- responding to customer complaints -- decided to redesign its jet and pushed back its delivery date until 2013.
ILFC was the launch customer for the original A350, ordering 16 of the planes, and founder and CEO Stephen Udvar-Hazy was instrumental in the push to have the plane redesigned. He said Tuesday he would meet with Airbus co-Chief Executive Louis Gallois on Wednesday, but declined to elaborate.
Mike Bair, who heads the 787 program for Chicago-based Boeing, said Tuesday that the plane is on track for delivery to its first customer in May 2008.
"We are where we need to be," Bair told reporters. "We have pockets that are behind," but the overall schedule for production remains steady, he said.
Bair said that the Dreamliner is now sold out until 2013. The ILFC orders announced Tuesday will begin delivery in 2013, carrying through until 2017. The earlier orders made by ILFC will start delivery in 2010.
The total Boeing order from ILFC, which included 10 next-generation 737s, was worth a total at list prices of $8.8 billion.
Planemakers often reserve big announcements for the air shows held on alternate years in Le Bourget and Farnborough, on the outskirts of London, to ensure maximum impact. The announcements usually include a mix of new orders, confirmed previous orders and plans for future orders.
Airbus remains out in front at Le Bourget, despite its troubles with the A350, after announcing a raft of orders on Monday, including a deal to supply Qatar Airlines with 80 A350s.
It added to those Tuesday with an order from Memphis-based leasing company Intrepid Aviation Group for 20 cargo versions of its A330-200 wide-bodied aircraft, worth $3.5 billion at list prices.
It also predicted that it will win at least 600 firm orders for its aircraft this year, including more than 20 for the double-decker A380.
"I can tell you with full confidence that Airbus is back," Gallois said at the show at Le Bourget, north of Paris.
Airbus sales chief John Leahy added that the planemaker expects to exceed 20 orders for the A380 this year, for which it currently has 163 firm orders.
Wiring and other technical problems have led to a two-year delay in delivery of the plane, which is expected to wipe out 4.8 billion euros ($6.2 billion) from the profit of parent company European Aeronautic Defense & Space Co. NV over the next four years.
The company overhauled top executives and set in place a restructuring plan that includes cutting 10,000 jobs over four years.
Flanked by the new management team at Tuesday's news conference, Gallois was upbeat.
"We are in a process of turning the company around and this new management structure is, for you, the first tangible evidence that we are progressing," he said.
Emirates, the biggest single customer for the A380, is believed to have obtained significantly improved financial terms for the aircraft.
Leahy added that Airbus' total firm order book stands at 219, worth around $30 billion. The planemaker also has preliminary commitments for a further 120 planes, worth around $15 billion, he said.
The Paris Air Show comes amid revived fortunes for the commercial airline industry. After two years in the red, the industry will make a profit of just over $5 billion this year, despite rising fuel costs, says the International Air Transport Association, whose 250 members claim to represent 94 percent of international air traffic.
Mike...I think EDAC's stock price is setting it self up perfectly for another run if the company releases preliminary revenue #'s the first week of July that are solid. Got my fingers crossed for $14M in revenue for 2nd Q and gross profit of 19%. The backlog for the aviation industry is going to keep pulling in buyers for supplier stocks---just need EDAC to reinforce that idea now that they are getting more exposure.
Here is an interesting article on how the supply chain for the aviation industry is under stress. I believe this bodes well for EDAC.
Mike
-----------
Demand soars for Bombardier's executive jets
But stress on the supply chain a worry, business jet executive says
By Aude Lagorce, MarketWatch
Last Update: 9:56 AM ET Jun 18, 2007
LE BOURGET, France (MarketWatch) -- Tighter airport security and healthy corporate profits worldwide are driving demand for Bombardier's "flying boardrooms," Pierre Cote, head of Bombardier's business jet division, said in a Monday interview.
"We've seen an increase in demand since 9/11," said Cote, speaking on the sidelines of the international air show that runs on the outskirts of Paris through this week. He said that entrepreneurs in China, Russia and India are also waking up to the additional comfort and productivity that private jets can deliver.
Bombardier (CA:BBD.PRD: news, chart, profile) , which has long dominated the market for executive jets, has easily captured that increased demand via its range of aircraft, from the very light Lear Jets to the large, long-range Global family of aircraft. See slideshow of Paris offerings.
Although Cote was mum on whether the Canadian jet maker has a new platform in the works, saying only that development is "very expensive and risky," he was keen in the interview with MarketWatch to emphasize the improvements Bombardier has made to the existing Lear Jet, Challenger and Global families.
The Challenger 605, for instance, now boasts larger windows, which is something customers had been requesting for some time.
But the top request relates to range, Cote said. People want to go further and they want to fly nonstop. The Global Express, for instance, can already fly nonstop from Paris to Los Angeles or Beijing. See air show preview.
To extend that range even further, Cote said engineers are looking at reducing the weight of the aircraft by using more composite materials. Composites are lighter, which means they allow the aircraft to burn less fuel, a key advantage at a time of high oil prices. They're also easier to maintain and can be easily shaped to optimize performance, said Cote.
Bombardier has set up a center of excellence focusing on composites in Belfast, Northern Ireland.
Stress on the supply chain
While Bombardier is enjoying a strong backlog, it's concerned about the stress the current peak in the aviation cycle is putting on suppliers.
"The market is really good. We have a healthy backlog...but how fast we can build those planes is a problem. The supply chain is under stress," said Cote.
Boeing is just beginning production of its new midsize long-range 787, while Airbus is ramping up production of the single-aisle A320 and of the A380 superjumbo. Both companies have also said they're wary of lifting production because of supply chain stress.
New entrants are another element of concern for the more established players. While the Chinese and Russians are building regional jets, they've made little noise about entering the business jet market.
"On the commercial side, the momentum is building," said Cote. "On the business side, it will happen...We need to keep our eyes opened."
He said that the 2008 Olympics in Beijing will be an important test of how ready the Chinese are to open their airspace. "Our biggest concern at the moment with the Chinese is market access," said Cote.
Bombardier on Monday signed a memorandum of understanding with China Aviation Industry Corp. (AVIC I) to cooperate in the market for 90- to-149 seat airliners, and said it would invest $100 million in AVIC's regional jet program.
AVIC I President Lin Zuo Ming said the company plans to launch the ARJ21-900 regional airliner this year and expects it to enter service in 2011.
Aude Lagorce is a reporter for MarketWatch in London.
http://www.marketwatch.com/news/story/bombardier-air-show-sees-healthy/story.aspx?guid={9AD81C18-97A...
EDAC is currently #10 in IBD's "Top-Rated Stocks Under $10" list.
Mike
Let's just hope it works out that EDAC does very well going forward:) I feel pretty good about them for now, but one thing to keep in mind is that they're IMO less diversified with the growth coming mostly in Precision Aerospace line. That has been a payoff for shareholders so far and the trend looks to be intact for awhile with backlogs for Precision but in a steep downturn in that segment it could punish them. Looks strong for now.
Great post ! (eom)
I've noticed that with aero companies there are a couple things to look at besides backlog to get some idea of revs growth going forward. First, are they Cap Ex spending to boost machining, tooling capacity? Second, are they hiring? And if they're hiring a chunk of people are they able to maintain margins (training newbies on expensive parts can be a rough start sometimes)?
Of course, knowing capacity to start would help compare them as well. I still think EDAC is slightly out front of the other aero backlogged companies in the arena (SIF, KRSL) because they were spending aggressively on machinery (on a % of revs basis) a year ago and continue to spend, while the others might be doing a bit of catch-up not having spent as much on new machining/tooling. The more backlogged these companies get and the more expansion EDAC does, the more I think EDAC can grow revs at a better clip (barring a downturn in the industry-but with current backlogs it looks like things are really cooking). Just guessing, but it is one strategy I use to figure out which horse to ride.
I own a little KRSL and more EDAC. I don't own SIF so probably am not good at analyzing them other than superficially. But if you look at the numbers in revs for the 3 I'm talking about, you'll see what I'm saying born out in revs over last few Qs. EDAC is leading the revs growth, even with SIF and KRSL holding huge backlogs. So I remain committed to holding my EDAC shares for now (wish I hadn't bailed early after they had the bad Q a couple Qs back, but it'll make for an easy comp YOY when the time comes) and think they hold the most promise in the near term. Good luck!
Looks like one to research this weekend <bg>
LOL, I guess that's a good thing. I keep running into Nelson and Gilead too. I didn't even get onto VMC until Gilead mentioned it on the Yahoo PRGF board (we had been running into each other on Yahoo and RB message boards back then and he directed me to the valuable VMC).
Littlefish eery we like too many of same stocks !
Thanx southacresdave, I think EDAC is poised to do well over the next few quarters. They spent fairly heavily ramping up production in the Precision line and that should translate to top and bottom line in the near term. Did you get to read the link I posted awhile back to the Pagano article write-up and how he got involved with the company? If not, I'll try and relocate it. It was an interesting story. Thanx for the screening tips, I'll look into it and probably use it more with time. Thigns look pretty solid for EDAC right now. Volume has solidified, getting close to new highs again, Naz move, big backlogs to feed them going forward. Good luck!
EDAC bullish coverage (video)
Hello !
A new video analysis / coverage on stocksonvideo about EDAC:
http://www.stocksonvideo.com/forum/index.php?topic=41.0&ref=video
Interesting technical and fundamental overview about EDAC, ending up with a rating of 8 out of 10 after applying their Valuation Model.
Expect to see this steadily increase:
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&symbol=answ&symbol=EDAC&symbol=&a...
Nice news on the uplisting. The upwards trend should go faster now.
MikeS97707...Looking pretty good. I'm thinking we'll see $10+ if the pre-announce good numbers for 2nd Q (would be around the first week of July that they do this). It'd be even nicer if they announced some new back order numbers around the time of the shareholder's meeting (next Wednesday). But, I can't be too greedy. I'm actually glad to see they held off releasing the Nasdaq news until it was factual (rather than announce an "application").
It's funny, but I had a hard time finding 6 stocks for the VMC contest. 4 of them are down (1 down 10%, 1 down 20%), 1 essentially flat, and 1 solidly up. Thankfully, the one that is up (EDAC) is the only one I own in real life! It's too bad I couldn't have "sextupled" up on it and rode the one stock to victory.
Hopefully volume picks up (on a more consistent daily basis) with the exposure to the Nasdaq.
Those extra shares you bought in the $5.70 range look pretty good now.
Dave
EDAC Technologies Announces NASDAQ Listing Approval; Trading to Commence May 31, 2007
Wednesday May 30, 12:02 pm ET
FARMINGTON, Conn., May 30 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (OTC Bulletin Board: EDAC - News), today announced that the NASDAQ Listing Qualifications Panel has approved EDAC's application to list its securities on NASDAQ. EDAC expects its common stock will begin trading on the NASDAQ Capital Market at the market opening on May 31, 2007, under the symbol EDAC.
"Approval to list our shares on NASDAQ is a significant achievement and an important milestone for EDAC," commented Dominick A. Pagano, President and Chief Executive Officer. "We believe that our shareholders will benefit through improved liquidity, enhanced visibility, the access to a broader investor pool that a NASDAQ listing provides, and more stabilized pricing through the use of designated market makers."
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
--------------------------------------------------------------------------------
Source: EDAC Technologies Corporation
I think Kamam got alot of the sub assembly business put there. Not the stuff EDAC does. That was just a big example of what Sikorsky is off loading. Sikorsky is jammed with military business right now and they are sending tons of stuff out to area shops. Edac went through some tuff times 5 or 6 years ago when they bought Grossite Ind. I think they stopped doing business with United Tech. at that time. But now they are back selling to them for a few years now. And No I don't work for any of the above mention companies. But I do work in the local aerospace industry and naturaly I hear things about work being moved around and who does work for whom. I know EDAC has dropped a lot of coin to modernize there production.
They have a good "rep" in the area. There customers seem to like them and they treat their people better than most. Not as good as the union shops like Pratt and Sikorsky, but if they did that, they would not get the work.
Do you know if EDAC had any of the Sikorsky business prior to the moves to Kaman?
I picked up a few shares of SIF today and I thought I would post about it here so that we could compare it to EDAC.ob. They are both aerospace product and services companies. SIF just posted earnings of $0.57 from continuing operations (not taxed) vs. a share price of $17.35. They are in the process of shedding a few parts of the business that are not profitable. In Q1 their Aerospace Component Manufacturing group had sales of $14.5M vs. $21.5M in sales for the entire company. The backlog for this segment of the business was $81.7M vs. $65.7M at September 30, 2006. A full $61.2M of this business is scheduled for delivery over the next 12 months. That would seem to indicate that the company has even better results coming. They are trading at a PE of 11 based upon annualized continuing operations after adding a 33% tax rate. Likewise, if we annualize EDAC's earnings of $0.16/share, EDAC is trading at a PE of 10.25 so it is a slightly better value based upon the current quarter's earnings. SIF also has had a steep increase in price since their earnings report so possibly is a bit more susceptible to a downdraft. Both companies will have earnings growth but I'm not sure which companies growth is expected to be larger.
I'd be curious to hear what others think.
Mike
Sikorsky has moved or outsourced some of its work to:Kaman Aerospace Corporation , Bloomfield, CT, and other local machine houses, after the strike. But these moves were in the works well before the strike happened.
Here is some commentary from the United Technologies 10-Q regarding their aerospace business. This is an interesting read to help understand why EDAC's business is rapidly growing:
The aerospace businesses serve both commercial and government aerospace customers. In addition, elements of Pratt & Whitney and Hamilton Sundstrand also serve customers in the industrial markets. Revenue passenger miles (RPMs), U.S. government military and space spending, and the general economic health of airline carriers are all barometers for our aerospace businesses. The strong production levels at airframe manufacturers, as well as the continued high usage of aircraft, as evidenced by the growth in RPMs, have generated strong commercial aerospace growth. Commercial aftermarket growth of 16% was augmented by strong original equipment manufacture and helicopter growth. Excluding helicopter revenues, military volume was essentially flat. However, positive global economic conditions and government military spending are helping to drive helicopter demand and, as a result, Sikorsky’s military and commercial backlog remains very strong. As noted previously, a strike at Sikorsky’s Connecticut and Florida facilities in the first quarter of 2006 resulted in significantly lower volumes for comparative purposes. Although helicopter deliveries improved significantly following the resumption of full production, Sikorsky continues to work towards reducing the incremental manufacturing costs that were incurred to accommodate the steep ramp up required to meet production requirements for more complex helicopters and strong backlog. Additionally, Sikorsky has been contending with a concurrent effort to reconfigure manufacturing processes including the sourcing of certain activities and the transfer of work to other manufacturing facilities to increase capacity. These efforts will continue throughout 2007 with deliveries expected to be back on schedule towards the end of 2007.
Mike
Aerospace shops are very busy in Connecticut. This is a hot bed for precision machining of aircraft engine parts, new and replacement parts. Edac Has a small slice of the market.
Here is some interesting text from the 10-Q:
Sales for the Precision Aerospace product line increased $2,751,000, or 76.1%, for the three months ended March 31, 2007, as compared to the three month period ended April 1, 2006. The increase was due to increased shipments of jet engine parts to its major aerospace customers. The Company’s sales backlog for Precision Aerospace increased by $2.6 million from December 30, 2006 to March 31, 2007. The Company believes that the aerospace industry’s demand for its machining services will continue to increase. To further increase machining capacity in support of the Precision Aerospace product line, the Company has budgeted over $2,000,000 for additional machinery and equipment yet to be delivered in 2007.
Sales for the Gros-Ite Spindles product line decreased $289,000, or 25.4%, for the three months ended March 31, 2007, as compared to the three month period April 1, 2006. The decrease in sales was due to decreased demand for new spindles, as well as the decreased demand for the repair of all brands of spindles. The Company believes that demand will increase for the remainder of 2007, based on indications from its customers.
As of March 31, 2007, sales backlog was approximately $31,600,000 compared to $28,800,000 as of December 30, 2006. Backlog consists of accepted purchase orders that are cancelable by the customer without penalty, except for payment of costs incurred. The Company presently expects to complete approximately $20,900,000 of its March 31, 2007 backlog during the remainder of the 2007 fiscal year. The remaining $10,700,000 of backlog is deliverable in fiscal year 2008 and beyond.
Mike
Does not get much better than this for a BB stock. Looking good for the future here.
Yes, I think we will see $10+ this year.
Mike
EDAC is rocking and rolling! Autopilot straight up. That was an awesome quarter! GM number was impressive. Backlog is impressive. Should see $6+ tomorrow but it deserves to be even higher than that.
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Company Description
Edac Technologies Corporation provides design and manufacturing services for tooling, fixtures, molds, jet engine components, and machine spindles in the United States. Its products include precision rings, and other components for jet engines, industrial spindles, and specialized machinery. The company also produces fixtures, precision gages, close tolerance plastic injection molds, molds for composite parts, and specialized machinery. In addition, the company offers design and manufacturing services for a range of industries in areas, such as special tooling, equipment and gauges, and components used in the manufacture, assembly, and inspection of jet engines. Further, it designs and repairs spindles for woodworking and automotive markets. Edac Technologies Corporation was founded in 1946 and is based in Farmington, Connecticut.
Web Site
http://www.edactechnologies.com
Historical Financial Information
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Revenue & GM Historical Info - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37381055
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Earnings Reports
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