FARMINGTON, Conn., May 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 first quarter of 2006. Sales for the first quarter of 2006
were $9,596,000 and net income was $293,000 or $0.06 per diluted
share, versus sales of $8,016,000 and net income of $963,000 or
$0.20 per diluted share for the first quarter of 2005. The first
quarter of 2005 benefited from debt forgiveness of $750,000. Income
from operations for the quarter decreased slightly from $620,000 in
2005 to $611,000 in 2006 due to $226,000 of costs incurred in the
first quarter 2006 associated with expansion of our manufacturing
capacity by approximately 24,000 square feet and other
non-recurring expenditures. Dominick A. Pagano, President and Chief
Executive Officer, said, "We are very pleased with the continued
strong results. Our total backlog increased from $21,700,000 at the
end of the fiscal 2005 to $25,000,000 at the end of the first
quarter. As recently announced, our Precision Aerospace product
line has received over $10.6 million in orders since the beginning
of the year including EDAC's first military contract in excess of
$1 million. We are also pleased that all of our long-term debt is
at fixed rates of interest. Our 2006 capital plan includes
approximately $3.7 million in machinery and equipment additions to
increase production requirements and capacity. Through the first
quarter we have invested over $1 million in machinery and equipment
and have made commitments for an additional $1.5 million. We've
made these investments to meet our sales backlog requirements and
to further position us for future growth. We 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 1, April 2, 2006
2005 Sales $9,595,579 $8,016,174 Cost of Sales 7,970,934 6,668,892
Gross Profit 1,624,645 1,347,282 Selling, General and
Administrative Expenses 1,013,865 726,891 Income From Operations
610,780 620,391 Non-Operating Income (Expense): Interest Expense
(153,399) (160,335) Gain on Debt Forgiveness - 750,000 Other 14,388
13,646 Income Before Income Taxes 471,769 1,223,702 Provision for
Income Taxes 179,000 261,000 Net Income $ 292,769 $ 962,702 Income
per common share data: Basic income per share $0.06 $0.22 Diluted
income per share $0.06 $0.20 Weighted average shares outstanding:
Basic 4,506,145 4,459,203 Diluted 4,791,735 4,718,209 EDAC
TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
April 1, December 31, 2006 2005 ASSETS CURRENT ASSETS: Cash
$1,817,258 $2,468,964 Accounts receivable 6,641,032 5,587,305
Inventories, net 4,059,222 4,296,839 Prepaid expenses and other
current assets 270,801 81,210 Refundable income taxes 54,984 54,984
Deferred income taxes 769,864 769,864 Total current assets
13,613,161 13,259,166 PROPERTY, PLANT AND EQUIPMENT 28,852,023
27,829,014 Less: accumulated depreciation 19,350,155 18,861,156
9,501,868 8,967,858 DEFERRED INCOME TAXES 1,440,989 1,440,989 OTHER
ASSETS 103,124 108,833 TOTAL ASSETS $24,659,142 $23,776,846
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current
portion of long-term debt $ 1,552,472 $ 1,404,053 Trade accounts
payable 2,991,476 2,427,866 Employee compensation and amounts
withheld 1,297,621 1,397,897 Accrued expenses 572,405 706,861
Customer advances 68,776 284,671 Total current liabilities
6,482,750 6,221,348 LONG-TERM DEBT, less current portion 8,107,246
7,791,530 OTHER LONG-TERM LIABILITIES 965,823 965,823 SHAREHOLDERS'
EQUITY: Common stock 11,267 11,261 Additional paid-in capital
9,464,928 9,452,525 Retained earnings 1,309,553 1,016,784
Accumulated other comprehensive loss (1,682,425) (1,682,425) Total
shareholders' equity 9,103,323 8,798,145 TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $24,659,142 $23,776,846 Contact: Glenn L.
Purple Vice President-Finance 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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