FARMINGTON, Conn., March 7 /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 fourth quarter of 2005 and the fiscal year 2005. For the
fiscal year 2005, sales were $35,045,000 and net income was
$3,299,000 or $0.69 per diluted share versus sales of $33,247,000
and net income of $2,862,000 or $0.62 per diluted share for the
fiscal year 2004. Both years benefited from income tax credits and
debt forgiveness ($1,092,000 in 2005 and $2,081,000 in 2004).
Income from operations nearly doubled, increasing to $2,800,000 in
2005 from $1,416,000 in 2004. Sales for the fourth quarter of 2005
were $9,442,000 and net income was $631,000 or $0.13 per diluted
share, versus sales of $9,631,000 and net income of $2,012,000 or
$0.43 per diluted share for the fourth quarter of 2004. The fourth
quarter of 2004 benefited from an income tax credit of $1,567,000.
Income from operations for the quarter increased from $605,000 in
2004 to $841,000 in 2005. Commenting on the fiscal year 2005,
Dominick A. Pagano, President and Chief Executive Officer, said,
"We are very pleased with the continued strong results. Net income
before income taxes and gains on debt forgiveness or restructuring
as a percentage of sales for 2005, was the highest in the last 18
years. Our financial position also improved. Working capital at
year end increased by $1,295,000 over 2004 and our debt to equity
ratio improved from 1.96 to 1 in 2004 to 1.05 to 1 in 2005. Our
backlog increased from $18,300,000 at the end of the fiscal 2004 to
$26,600,000 at February 28, 2006." "We believe that 2006 will be
another positive and exciting year." 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 CONSOLIDATED STATEMENTS OF OPERATIONS For
the three months ended For the twelve months ended December 31,
January 1, December 31, January 1, 2005 2005 2005 2005 Sales
$9,441,833 $9,631,166 $35,045,033 $33,247,019 Cost of sales
7,829,528 8,275,184 29,075,091 29,199,047 Gross profit 1,612,305
1,355,982 5,969,942 4,047,972 Selling, general and and
administrative expenses 771,740 751,317 3,170,002 2,632,084 Income
from operations 840,565 604,665 2,799,940 1,415,888 Non-operating
income (expense): Gain on debt forgiveness - - 750,000 250,000
Other 9,914 - 26,299 - Interest (141,979) (159,620) (619,452)
(634,618) Income before income taxes 708,500 445,045 2,956,787
1,031,270 Provision for (Benefit from) income taxes 77,959
(1,566,541) (342,041) (1,830,695) Net income $ 630,541 $ 2,011,586
$ 3,298,828 $ 2,861,965 Income per common share data: Basic $0.14
$0.45 $0.74 $0.64 Diluted $0.13 $0.43 $0.69 $0.62 Weighted average
shares outstanding: Basic 4,504,270 4,444,203 4,487,080 4,444,438
Diluted 4,785,643 4,644,647 4,772,666 4,644,647 EDAC TECHNOLOGIES
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS December 31,
January 1, 2005 2005 ASSETS CURRENT ASSETS: Cash $ 2,468,964
$549,198 Accounts receivable (net of allowance for doubtful
accounts of $184,000 as of December 31, 2005 and $234,000 as of
January 1, 2005) 5,587,305 6,573,114 Inventories, net 4,296,839
4,454,937 Prepaid expenses and other current assets 81,210 57,290
Refundable income taxes 54,984 330,869 Deferred income taxes
769,864 733,583 Total current assets 13,259,166 12,698,991
PROPERTY, PLANT AND EQUIPMENT, at cost: Land 632,821 632,821
Buildings and improvements 6,316,490 6,289,625 Machinery and
equipment 20,879,703 18,954,913 27,829,014 25,877,359 Less:
accumulated depreciation 18,861,156 17,297,856 8,967,858 8,579,503
DEFERRED INCOME TAXES 1,440,989 766,417 OTHER ASSETS 108,833
102,183 TOTAL ASSETS $23,776,846 $22,147,094 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Revolving line of credit
$- $580,555 Current portion of long-term debt 1,404,053 1,030,282
Trade accounts payable 2,427,866 3,249,892 Employee compensation
and amounts withheld 1,397,897 1,228,975 Accrued expenses 706,861
502,450 Customer advances 284,671 363,745 Total current liabilities
6,221,348 6,955,899 LONG-TERM DEBT, less current portion 7,791,530
8,564,927 OTHER LONG-TERM LIABILITIES 965,823 1,423,054
SHAREHOLDERS' EQUITY: Common stock, par value $.0025 per Share;
10,000,000 shares authorized; issued and outstanding -- 4,504,270
on December 31, 2005 and 4,444,438 on January 1, 2005 11,261 11,111
Additional paid-in capital 9,452,525 9,377,508 Retained earnings
(accumulated deficit) 1,016,784 (2,282,044) 10,480,570 7,106,575
Less: accumulated other comprehensive 1,682,425 1,903,196 loss
treasury stock, 0 shares on December 31, 2005 and 235 shares on
January 1, 2005 - 165 Total shareholders' equity 8,798,145
5,203,214 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $23,776,846
$22,147,094 Contact: Glenn L. Purple Vice President-Finance 860
677-2603 DATASOURCE: EDAC Technologies Corporation CONTACT: Glenn
L. Purple, Vice President-Finance of EDAC Technologies,
+1-860-677-2603 Web site: http://www.edactechnologies.com/
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