EDAC Technologies Reports Second Consecutive Quarterly Profit
FARMINGTON, Conn., Aug. 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 second quarter of 2004. Sales for the second quarter of
2004 were $8,767,000 and net income was $264,000 or $0.06 per
diluted share versus sales of $7,138,000 and net income of
$7,228,000 or $1.60 per diluted share for the second quarter of
2003. The second quarter of 2003 benefited from a gain of
$7,253,000 from debt restructuring. Without the gain, the net loss
for the quarter ended June 28, 2003 would have been $25,000. For
the six months ended July 3, 2004, sales were $16,073,000 and net
income was $553,000 (including a gain of $250,000 from debt
forgiveness) or $0.12 per diluted share versus sales of $13,247,000
and net income of $6,737,000 or $1.50 per diluted share for the six
months ended June 28, 2003. Without the $7,253,000 gain on debt
restructuring, the net loss for the six months ended June 28, 2003
would have been $516,000. Commenting on the second quarter,
Dominick A. Pagano, President and Chief Executive Officer, said,
"Our increase in sales from $7,138,000 to $8,767,000 was due to
increased sales to our machine tool and aerospace customers. This
plus the improved efficiency and hard work of our employees
resulted in increases in our operating profit of $314,000 for the
quarter as compared to the second quarter of 2003, and $854,000 for
the first six months in the current year compared with the first
half of 2003. This was the second consecutive quarter that EDAC has
generated a positive net income exclusive of gains on debt
restructuring, since the fourth quarter of 2001. Sales backlog was
approximately $19,800,000 at the end of the second quarter, up from
$18,000,000 at the start of the fiscal year. Our liquidity has
improved significantly by an agreement with our largest aerospace
customer that provided for a $1.8 million advance payment in July
for inventory previously put on hold. With our debt now at a seven
year low, we are better positioned to pursue opportunities in all
of our product lines and remain optimistic about our future." 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 Financial Highlights For the three months
ended For the six months ended July 3, June 28, July 3,June 28,
2004 2003 2004 2003 Sales $8,766,891 $7,137,812 $16,073,384
$13,247,145 Cost of sales 7,697,022 6,253,856 14,159,015 11,985,572
Gross profit 1,069,869 883,956 1,914,369 1,261,573 Selling, general
and and administrative expenses 634,617 762,631 1,272,286 1,473,561
Income (loss) from operations 435,252 121,325 642,083 (211,988)
Non-operating income (expense): Interest (163,221) (177,415)
(322,314) (346,933) Gain on debt forgiveness - - 250,000 - Gain on
debt restructuring - 7,253,203 - 7,253,203 Other - 31,294 - 43,213
Income before income taxes 272,031 7,228,407 569,769 6,737,495
Provision for income taxes 8,000 - 17,000 - Net income $264,031 $
7,228,407 $552,769 $ 6,737,495 Income per common share data: Basic
$0.06 $1.64 $0.12 $1.53 Diluted $0.06 $1.60 $0.12 $1.50 Weighted
average shares outstanding: Basic 4,444,438 4,415,803 4,444,438
4,415,881 Diluted 4,633,146 4,514,220 4,625,185 4,480,779 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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