EDAC Technologies Reports Fourth Quarter Results FARMINGTON, Conn.,
March 8 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation
(OTC:EDAC) (BULLETIN BOARD: EDAC) , 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." 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. For
further information, please contact: Glenn L. Purple Vice
President-Finance Tel: (860) 677-2603 EDAC TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended
For the twelve months ended January 1, January 3, January 1,
January 3, 2005 2004 2005 2004 Sales $9,631,166 $5,992,246
$33,247,019 $25,677,087 Cost of sales 8,275,184 5,309,259
29,199,047 22,950,242 Gross profit 1,355,982 682,987 4,047,972
2,726,845 Selling, general and and administrative expenses 751,317
733,313 2,632,084 2,869,897 Income (loss) from operations 604,665
(50,326) 1,415,888 (143,052) Non-operating income (expense):
Interest (159,620) (160,082) (634,618) (678,489) Gain on debt
forgiveness - - 250,000 - Gain on debt restructuring - - -
7,253,203 Other - 103,413 - 147,126 Income (loss) before income
taxes 445,045 (106,995) 1,031,270 6,578,788 Benefit from income
taxes 1,566,541 - 1,830,695 - Net income (loss) $2,011,586
$(106,995) $2,861,965 $6,578,788 Income (loss) per common share
data: Basic $0.45 $(0.02) $0.64 $1.49 Diluted $0.43 $(0.02) $0.62
$1.46 Weighted average shares outstanding: Basic 4,444,438
4,444,203 4,444,438 4,425,309 Diluted 4,661,520 4,444,203 4,644,647
4,502,051 EDAC TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS January 1, January 3, 2005 2004 ASSETS CURRENT
ASSETS: Cash $ 549,198 $ 94,151 Accounts receivable (net of
allowance for doubtful accounts of $234,000 as of January 1, 2005
and January 3, 2004 6,573,114 3,154,498 Inventories, net 4,454,937
4,611,253 Prepaid expenses and other current assets 57,290 60,424
Refundable income taxes 330,869 - Deferred income taxes 733,583 -
Total current assets 12,698,991 7,920,326 PROPERTY, PLANT AND
EQUIPMENT, at cost: Land 632,821 632,821 Buildings and improvements
6,289,625 6,280,988 Machinery and equipment 18,954,913 18,571,819
25,877,359 25,485,628 Less: accumulated depreciation 17,297,856
15,542,501 8,579,503 9,943,127 OTHER ASSETS: Deferred income taxes
766,417 258,608 Other 102,183 43,751 TOTAL ASSETS $22,147,094
$18,165,812 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Revolving line of credit $ 580,555 $ 2,550,832 Current
portion of long-term debt 1,030,282 2,254,142 Trade accounts
payable 3,249,892 2,098,415 Employee compensation and amounts
withheld 1,228,975 972,630 Accrued expenses 502,450 412,201
Customer advances 363,745 77,138 Deferred income taxes - 258,959
Total current liabilities 6,955,899 8,624,317 LONG-TERM DEBT, less
current portion 8,564,927 5,671,190 OTHER LONG-TERM LIABILITIES
1,423,054 1,125,063 SHAREHOLDERS' EQUITY: Common stock, par value
$.0025 per share; 10,000,000 shares authorized; issued and
outstanding -- 4,444,438 in 2004 and 2003 11,111 11,111 Additional
paid-in capital 9,377,508 9,377,508 Accumulated deficit (2,282,044)
(5,144,009) 7,106,575 4,244,610 Less: accumulated other
comprehensive loss 1,903,196 1,499,203 Treasury stock, 235 shares
165 165 Total shareholders' equity 5,203,214 2,745,242 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $22,147,094 $18,165,812
DATASOURCE: EDAC Technologies Corporation CONTACT: Glenn L. Purple,
Vice President-Finance of EDAC Technologies Corporation,
+1-860-677-2603 Web site: http://www.edactechnologies.com/
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