FARMINGTON, Conn., Aug. 2 /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 second quarter of 2005. Sales for the second quarter of
2005 were $8,899,000 and net income was $1,316,000 or $0.27 per
diluted share, versus sales of $8,767,000 and net income of
$264,000 or $0.06 per diluted share for the second quarter of 2004.
The second quarter of 2005 included an income tax benefit of
$787,000. For the six months ended July 2, 2005, sales were
$16,916,000 and net income was $2,278,000 or $0.48 per diluted
share versus sales of $16,073,000 and net income of $553,000 or
$0.12 per diluted share for the six months ended July 3, 2004. The
six months ended July 3, 2004 benefited from debt forgiveness of
$250,000. The six months ended July 2, 2005 included an income tax
benefit of $526,000 and debt forgiveness of $750,000. Commenting on
the second quarter, Dominick A. Pagano, President and Chief
Executive Officer, said, "We are very pleased with the second
quarter's results. Operating profit of $690,000 for the quarter
exceeded the operating profit for any quarter over the past three
and 1/2 years. Sales backlog increased by $3.4 million to $21.7
million since the start of the fiscal year. We have taken delivery
of $1.0 million of new machinery and equipment and expect to invest
another $1.0 million in additional machinery over the next six
months to increase our production requirements and capacity. Net
worth as reported on our balance sheet has increased by $11,920,000
to $7,519,000 at July 2, 2005 from a deficit of ($4,401,000) at the
end of 2002. We will continue to pursue opportunities that we
believe 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 For the three months ended For the six months ended July
2, July 3, July 2, July 3, 2005 2004 2005 2004 Sales $8,899,338
$8,766,891 $16,915,512 $16,073,384 Cost of sales 7,363,611
7,697,022 14,032,503 14,159,015 Gross profit 1,535,727 1,069,869
2,883,009 1,914,369 Selling, general and administrative expenses
845,891 634,617 1,572,782 1,272,286 Income from operations 689,836
435,252 1,310,227 642,083 Non-operating income (expense): Gain on
debt forgiveness - - 750,000 250,000 Interest expense (161,056)
(163,221) (321,391) (322,314) Other - - 13,646 - Income before
income taxes 528,780 272,031 1,752,482 569,769 Provision for income
taxes (787,000) 8,000 (526,000) 17,000 Net income $1,315,780
$264,031 $ 2,278,482 $552,769 Income per common share data: Basic
$0.29 $0.06 $0.51 $0.12 Diluted $0.27 $0.06 $0.48 $0.12 Weighted
average shares outstanding: Basic 4,494,870 4,444,438 4,477,037
4,444,438 Diluted 4,791,243 4,633,146 4,745,207 4,625,185 EDAC
TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited) July 2, January 1, 2005 2005 ASSETS CURRENT
ASSETS: Cash $801,564 $549,198 Accounts receivable, net 6,081,697
6,573,114 Inventories, net 4,895,430 4,454,937 Prepaid expenses and
other current assets 338,319 57,290 Refundable income taxes -
330,869 Deferred income taxes 469,135 733,583 Total current assets
12,586,145 12,698,991 PROPERTY, PLANT AND EQUIPMENT 26,686,378
25,877,359 Less: accumulated depreciation 18,085,269 17,297,856
8,601,109 8,579,503 OTHER ASSETS: Deferred income taxes 1,930,865
766,417 Other 125,918 102,183 TOTAL ASSETS $ 23,244,037 $
22,147,094 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Revolving line of credit $- $580,555 Current portion
of long-term debt 1,213,729 1,030,282 Trade accounts payable
3,340,577 3,249,892 Employee compensation and amounts withheld
1,271,160 1,228,975 Accrued expenses 775,552 502,450 Customer
advances 164,052 363,745 Total current liabilities 6,765,070
6,955,899 LONG-TERM DEBT, less current portion 7,536,692 8,564,927
OTHER LONG-TERM LIABILITIES 1,423,054 1,423,054 SHAREHOLDERS'
EQUITY: Common stock 11,257 11,111 Additional paid-in capital
9,414,722 9,377,508 Accumulated deficit (3,562) (2,282,044)
Accumulated other comprehensive loss (1,903,196) (1,903,196)
Treasury stock - (165) Total shareholders' equity 7,519,221
5,203,214 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 23,244,037 $
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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