EDAC Technologies Reports Fifth Consecutive Quarterly Profit
FARMINGTON, Conn., May 3 /PRNewswire-FirstCall/ -- EDAC
Technologies Corporation (OTC:EDAC.OB) (BULLETIN BOARD: EDAC.OB) ,
a designer and manufacturer of tools, fixtures, jet engine
components, injection molds and spindles, today reported results
for the first quarter of 2005. Sales for the first quarter of 2005
were $8,016,000 and net income was $963,000 or $0.20 per diluted
share, versus sales of $7,306,000 and net income of $289,000 or
$0.06 per diluted share for the first quarter of 2004. The first
quarters of 2005 and 2004 benefited from debt forgiveness of
$750,000 and $250,000, respectively. Income before income tax and
without the gains on debt forgiveness was $474,000 for the first
quarter of 2005 and $48,000 for the first quarter of 2004.
Commenting on the first quarter, Dominick A. Pagano, President and
Chief Executive Officer, said, "We are very pleased with the first
quarter's results. Operating profit of $620,000 for the quarter
exceeded the operating profit for any quarter over the past three
years. Sales backlog increased by $2.3 million to $20.6 million
since the start of the fiscal year. We have initiated our 2005
capital acquisition program to invest approximately $2 million in
machinery to increase our production requirements and capacity.
Debt forgiveness of $750,000 in the first quarter further
strengthened our financial position. We believe we are positioned
for future growth and will continue to pursue opportunities that
will 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 quarter ended April 2, April 3, 2005
2004 Sales $8,016,174 $7,306,493 Cost of Sales 6,668,892 6,461,993
Gross Profit 1,347,282 844,500 Selling, General and Administrative
Expenses 726,891 637,669 Income From Operations 620,391 206,831
Non-Operating Income (Expense): Gain on Debt Forgiveness 750,000
250,000 Other 13,646 -- Interest Expense (160,335) (159,093) Income
Before Income Taxes 1,223,702 297,738 Provision for Income Taxes
261,000 9,000 Net Income $ 962,702 $ 288,738 Income per common
share data: Basic income per share $0.22 $0.06 Diluted income per
share $0.20 $0.06 Weighted average shares outstanding: Basic
4,459,203 4,444,438 Diluted 4,718,209 4,616,481 EDAC TECHNOLOGIES
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Audited) April 2, January 1, 2005 2005 ASSETS CURRENT ASSETS: Cash
$315,952 $549,198 Accounts receivable, net 6,012,572 6,573,114
Inventories, net 4,900,692 4,454,937 Prepaid expenses and other
current assets 367,352 57,290 Refundable income taxes -- 330,869
Deferred income taxes 733,583 733,583 Total current assets
12,330,151 12,698,991 PROPERTY, PLANT AND EQUIPMENT 26,093,436
25,877,359 Less: accumulated depreciation 17,645,994 17,297,856
8,447,442 8,579,503 OTHER ASSETS: Deferred income taxes 766,417
766,417 Other 148,634 102,183 TOTAL ASSETS $ 21,692,644 $
22,147,094 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Revolving line of credit $600,000 $580,555 Current
portion of long-term debt 1,124,452 1,030,282 Trade accounts
payable 2,847,471 3,249,892 Employee compensation and amounts
withheld 1,256,393 1,228,975 Accrued expenses 722,282 502,450
Customer advances 85,167 363,745 Total current liabilities
6,635,765 6,955,899 LONG-TERM DEBT, less current portion 7,447,659
8,564,927 OTHER LONG-TERM LIABILITIES 1,423,054 1,423,054
SHAREHOLDERS' EQUITY: Common stock 11,223 11,111 Additional paid-in
capital 9,397,481 9,377,508 Accumulated deficit (1,319,342)
(2,282,044) Accumulated other comprehensive loss (1,903,196)
(1,903,196) Treasury stock -- (165) Total shareholders' equity
6,186,166 5,203,214 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $
21,692,644 $ 22,147,094 For further information, please contact:
Glenn L. Purple Vice President-Finance Tel: (860) 677-2603
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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