Replies to post #6338 on Value Microcaps Motherboard

[hweb2]

Great quarter for EDAC! They telegraphed that in the Q3 earnings PR. Interest savings alone was going to add .05 to EPS in Q4. Wish they had given a backlog number in today's PR. They had a good Q2 with a strong backlog, but the numbers dropped off in Q3. So I don't know how sustainable that EPS of .10 is going to be.

[2nd Mil]

So where can EDAC go from here?


EDAC Technologies Reports Fourth Quarter Results
Tuesday March 8, 3:28 pm ET


FARMINGTON, Conn., March 8 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (OTC Bulletin Board: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the fourth quarter of 2004.
Sales for the fourth quarter of 2004 were $9,631,000 and net income was $2,012,000 or $0.43 per diluted share, versus sales of $5,992,000 and a net loss of $107,000 or a loss of $0.02 per diluted share for the fourth quarter of 2003. The fourth quarter benefited from an income tax credit of $1,567,000. Net income prior to the tax credit was $445,000.

For the fiscal year 2004, sales were $33,247,000 and net income was $2,862,000 or $0.62 per diluted share versus sales of $25,677,000 and net income of $6,579,000 or $1.46 per diluted share for the fiscal year 2003. The fiscal year 2003 benefited from a gain of $7,253,000 from debt restructuring. Without the gain for the fiscal year 2003 the net loss would have been $674,000. The fiscal year 2004 benefited from an income tax credit of $1,831,000 and debt forgiveness of $250,000. Net income prior to the tax credit and without the debt forgiveness would have been $781,000.

Commenting on the fourth quarter and fiscal year 2004, Dominick A. Pagano, President and Chief Executive Officer, said, "We are pleased with the year- end results and in particular the fourth quarter, in which we achieved record sales and continued improvement in our gross profit. After two years of rebuilding, we are reporting our first fiscal year operating profit since 2001. Compared to the fiscal year 2003, our operating profit for fiscal year 2004 has improved from a loss of $143,000 to a profit of $1,416,000. Our refinancing in January 2005 has reduced our debt service and will provide for capital equipment through a $1.5 million equipment line. Our backlog remains strong and our management team continues to develop. We look forward to maintaining the positive momentum into 2005."