EDAC Technologies Reports Fourth Quarter and Full Year Results
Tuesday March 3, 4:47 pm ET
FARMINGTON, Conn., March 3 /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 2008.
Sales for the fourth quarter of 2008 were $12,099,000 and net loss was $(279,000) or $(0.06) per diluted share, versus sales of $12,710,000 and net income of $984,000 or $0.20 per diluted share for the fourth quarter of 2007.
For the year ended January 3, 2009, sales were $44,677,000 and net income was $1,138,000 or $0.23 per diluted share versus sales of $50,019,000 and net income of $3,449,000 or $0.70 per diluted share for the year ended December 29, 2007.
Dominick A. Pagano, President and Chief Executive Officer, said, "As expected, conditions in the aerospace market and the economy in general deteriorated further in the fourth quarter. Production delays in Boeing's 787 program and delivery delays in its 777 program caused by its machinists' strike reduced our fourth quarter shipments. Our aerospace customers continue to make changes to our delivery schedules. Our Apex Machine Tool product line committed certain resources to the process development and production of a large order from a customer in a new energy market that shipped late in the fourth quarter. While the shipment of this order significantly increased our fourth quarter's sales over the third quarter, the experimental nature of the production process and tooling of this order caused significant cost overruns that could not be recovered from the customer. We absorbed these additional costs totaling $334,000 in the fourth quarter. With the new production process and tooling, the customer, as it has indicated, will have a future demand for these new parts.
Total company backlog increased from $30.1 million at the end of fiscal 2007 to $52.4 million at January 3, 2009, of which approximately $18 million was from a new aerospace customer with deliveries scheduled from 2009 through 2012.
For the year we have invested $837,000 in plant, machinery and equipment and paid deposits of $981,000 on two large machines costing $2.3 million. For 2009 we plan on investing in excess of $4 million in new machinery and equipment including the two large machines currently on order, to increase our capabilities and capacity and improve productivity in the aerospace product line."
Pagano added, "We have and will continue to be proactive in attempting to minimize the impact of external forces, by implementing aggressive cost controls, 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 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
Jan. 3, Dec. 29, Jan. 3, Dec. 29,
2009 2007 2009 2007
Sales $12,099,280 $12,710,482 $44,676,668 $50,018,584
Cost of sales 11,528,800 10,034,056 38,804,956 40,035,308
Gross profit 570,480 2,676,426 5,871,712 9,983,276
Selling, general and
administrative
expenses 815,588 1,044,069 3,491,820 3,922,027
(Loss) income from
operations (245,108) 1,632,357 2,379,892 6,061,249
Non-operating
income (expense):
Interest expense (152,403) (177,422) (630,913) (721,235)
Other income 10,311 31,358 72,665 60,570
(Loss) income before
income taxes (387,200) 1,486,293 1,821,644 5,400,584
(Benefit from)
provision for
income taxes (107,714) 502,514 683,286 1,951,514
Net (loss) income $(279,486) $983,779 $1,138,358 $3,449,070
(Loss) income per
common share
data:
Basic (loss) income
per share ($0.06) $0.21 $0.24 $0.75
Diluted (loss)
income per share ($0.06) $0.20 $0.23 $0.70
Weighted average
shares outstanding:
Basic 4,825,303 4,624,403 4,723,547 4,584,913
Diluted 4,904,911 4,979,532 5,037,620 4,943,291
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
January 3, December 29,
2009 2007
ASSETS
CURRENT ASSETS:
Cash $1,311,092 $3,286,203
Accounts receivable, net 7,931,550 7,638,573
Inventories, net 7,961,788 6,598,111
Prepaid expenses and other
current assets 107,333 51,339
Refundable income taxes 686,708 284,577
Deferred income taxes 983,298 933,124
Total current assets 18,981,769 18,791,927
PROPERTY, PLANT AND EQUIPMENT 35,347,124 34,869,219
Less: accumulated depreciation 23,992,878 22,390,417
11,354,246 12,478,802
DEFERRED INCOME TAXES 105,971 -
OTHER ASSETS 1,021,638 492,051
TOTAL ASSETS $31,463,624 $31,762,780
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $1,674,990 $-
Current portion of long-term debt 2,376,018 2,285,704
Trade accounts payable 3,485,192 4,021,827
Employee compensation and
amounts withheld 1,112,006 1,800,390
Accrued expenses 361,252 395,950
Customer advances 261,643 424,439
Total current liabilities 9,271,101 8,928,310
LONG-TERM DEBT, less current portion 4,827,697 7,204,769
OTHER LONG-TERM LIABILITIES 1,698,233 -
DEFERRED INCOME TAXES - 448,660
SHAREHOLDERS' EQUITY:
Common stock 12,063 11,591
Additional paid-in capital 10,934,736 10,245,877
Retained earnings 7,158,600 6,020,242
Accumulated other comprehensive
loss (2,438,806) (1,096,669)
Total shareholders' equity 15,666,593 15,181,041
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $31,463,624 $31,762,780
Contact: Glenn L. Purple, Vice President-Finance, 860-677-2603
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Source: EDAC Technologies Corporation
