MikeDDKing
13 years ago
EDAC Technologies Reports Strong Sales and Earnings for Fiscal 2011 Third Quarter
- Sales of $21.8 Million are Up 18% from 3Q10 -
- Net Income Reaches $1.0 Million or $0.19 per Diluted Share -
- Income from Operations Rises to a Record $1.8 Million -
- Backlog Totals Approximately $213.5 Million at Quarter-End -
FARMINGTON, Conn., Oct. 26, 2011 /PRNewswire/ -- EDAC Technologies Corporation (NASDAQ: EDAC), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported that sales for the third quarter of fiscal 2011 were $21.8 million, an increase of 18% from the third quarter of fiscal 2010. The 2011 second quarter sales were $21.9 million.
Net income for the 2011 third quarter was $1.0 million, or $0.19 per diluted share, a substantial increase from $84,000, or $0.02 per diluted share, reported for the third quarter of 2010. Sequentially, 2011 third quarter net income was up nearly 4% from the $977,000, or $0.19 per diluted share, reported for the second quarter of 2011.
EDAC noted that strong sales growth for each of its major product lines, EDAC AERO, APEX Machine Tool and EDAC Machinery, contributed to the increase in 2011 third quarter sales as compared with the year-ago period. The sharp growth in net income versus the 2010 period primarily reflected the increase in sales, as well as a higher gross margin due to a favorable product mix, improved cost absorption compared with the prior year third quarter, and more cost-effective manufacturing of certain parts.
Sales for EDAC's three major product lines, and the key factors contributing to the sales trends, are as follows:
Sales for the EDAC AERO product line were $14.8 million, an increase of 10% from the third quarter of 2010 and 3% higher than the 2011 second quarter. This primarily reflected increased shipments of stators, fan cases and other components for a number of aircraft engine programs.
Sales for the APEX Machine Tool product line were $5.0 million in the 2011 third quarter, an increase of 26% from the year-ago third quarter but 6% lower sequentially. The year-over-year growth included initial shipments for a ground-based turbine retrofit program and the benefit of ongoing efforts to expand the customer base and markets for APEX products. The sequential decline in sales was expected by the Company.
Sales for the EDAC Machinery product line were $2.1 million, an increase of 72% from the 2010 third quarter but 9% lower sequentially. The year-over-year increase reflected stronger sales of spindle and precision grinder products, as well as the Company's successful efforts to revitalize the acquired SNI and Accura Technics businesses. The sequential decline in sales was expected by the Company.
Other highlights of EDAC's results for the recent period are as follows:
Gross profit for the 2011 third quarter was $3.9 million, or 17.8% of sales. This compares with $1.8 million, or 9.5% of sales, in the 2010 third quarter and $3.6 million, or 16.6% of sales, in the 2011 second quarter. The gross margin increase primarily reflected a shift in sales mix to the Company's higher margin product lines, increased productivity and efficiency company-wide, and more cost-effective manufacturing of certain parts.
SG&A expenses for the 2011 third quarter were $2.1 million, or 9.7% of sales, compared with $1.4 million or 7.5% of sales in the third quarter of 2010 and $1.9 million, or 8.7% of sales, in the second quarter of 2011. The increase in SG&A was largely due to increases in commissions and certain non-recurring expenses.
Operating income for the third quarter of 2011 was a record $1.8 million, up 370% from the $375,000 reported in the 2010 third quarter and a 2% increase from the $1.7 million for the 2011 second quarter.
For the first nine months of fiscal 2011, EDAC's sales increased 16% to $63.9 million from $55.2 million for the comparable 2010 period. Income from operations was $4.4 million for the first nine months of 2011, up 188% from $1.5 million for the same period of 2010. Net income was $2.4 million, or $0.46 per diluted share, for the first nine months of 2011. For the same period of 2010, net income was $788,000, or $0.16 per diluted share, including other income of $350,000 from the recognition of a deposit on an equipment purchase made by AERO prior to its acquisition.
Backlog and Outlook
Total sales backlog at October 1, 2011 was approximately $213.5 million, compared with $168.0 million at the end of the 2011 second quarter and $133.6 million at October 2, 2010. The higher backlog partially reflects several multi-year agreements announced earlier this year to produce components for commercial and military aircraft engine platforms.
"EDAC produced record operating income for the third quarter of 2011 on sales that nearly equaled the all-time high we reported in this year's second quarter. We have expanded our customer relationships, invested in the capacity to produce additional components, and improved production processes and efficiency across each of our product lines, which have enabled us to deliver higher year-over-year sales and enhanced gross margins. We believe that our strong sales levels and increased profitability throughout the first three quarters of 2011 clearly demonstrate our potential to sustain and enhance our performance in the future," said Dominick A. Pagano, EDAC's President and Chief Executive Officer.
"We expect the 2011 fourth quarter to be the strongest period of the year in terms of sales, based on our backlog and the pattern of customer demand. Looking toward 2012, we expect to ramp up the delivery of engine components under some of our newer long-term agreements, putting the Company on track for another successful year," Mr. Pagano concluded.
Conference Call and Webcast
The Company will host a conference call to review the above results at 10:00 a.m. (Eastern Time) today, October 26, 2011. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision grinders and precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
MikeDDKing Note: Tables removed due to formatting issues
CONTACT: Glenn L. Purple, Vice President-Finance, EDAC Technologies Corporation, 1-860-677-2603; or Edward Nebb, +1-203-972-8350, or June Filingeri, +1-203-972-0186, both of Comm-Counsellors, LLC
SOURCE EDAC Technologies Corporation
MikeDDKing
13 years ago
EDAC Technologies Reports Record Sales and Operating Earnings for Fiscal 2011 Second Quarter
- Net Income Rises to $0.19 per Share on Record Sales of $21.9 Million -
- Backlog Totals Approximately $168 Million at Quarter-End -
prnewswire
On Thursday July 28, 2011, 8:00 am EDT
FARMINGTON, Conn., July 28, 2011 /PRNewswire/ -- EDAC Technologies Corporation (NASDAQ:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported record sales of $21.9 million for the second quarter of fiscal 2011, an increase of 16% compared with $18.8 million for the second quarter of fiscal 2010. On a sequential basis, the 2011 second quarter sales rose more than 8% from the $20.2 million reported for the 2011 first quarter.
Net income for the 2011 second quarter was $977,000, or $0.19 per diluted share, an increase of 183% compared to $345,000, or $0.07 per diluted share, reported for the same period of 2010. Sequentially, the 2011 second quarter net income was more than double the $408,000, or $0.08 per share, reported for the first quarter of 2011.
EDAC noted that all three of its major product lines, EDAC AERO, APEX Machine Tool and EDAC Machinery, contributed to the increase in 2011 second quarter sales both sequentially and as compared with the year-ago period. The sharp rise in net income versus the 2010 period primarily reflected the increase in sales, as well as a higher gross margin due to more cost-effective manufacturing of certain parts and a favorable product mix.
Sales for EDAC's three major product lines, and the key factors contributing to the sales trends, are as follows:
Sales for the EDAC AERO product line were $14.3 million, an increase of 13% from the second quarter of 2010 and 4% higher than the 2011 first quarter. This primarily reflected increased shipments of fan cases, stators and other components for a number of aircraft engine programs.
Sales for the APEX Machine Tool product line were $5.3 million in the 2011 second quarter, an increase of 10% from the year-ago first quarter and up 14% sequentially, reflecting increased demand for fixture, tooling and mold products due to the economic recovery, as well as ongoing efforts to expand the customer base and markets for APEX products.
Sales for the EDAC Machinery product line were $2.3 million, an increase of 62% from the second quarter of last year and up 27% sequentially. This reflected stronger sales of spindle and precision grinder products to aerospace and automotive customers due to the economic recovery, as well as the Company's successful efforts to revitalize the acquired SNI and Accura Technics businesses.
Other highlights of EDAC's results for the recent period are as follows:
Gross profit for the 2011 second quarter was $3.6 million, or 16.6% of sales. This compares with $2.3 million, or 12.0% of sales, in the 2010 second quarter and $2.8 million, or 13.9% of sales, in the 2011 first quarter. The gross margin increase reflected more cost-effective production processes for certain parts and a shift in sales mix to the Company's higher margin product lines.
SG&A expenses for the 2011 second quarter were $1.9 million, or 8.7% of sales, compared with $1.5 million or 8.1% of sales in the second quarter of 2010 and $1.9 million, or 9.6% of sales, in the first quarter of 2011.
Operating income for the second quarter of 2011 was $1.7 million, up 137% from the $729,000 recorded in the 2010 second quarter and double the $864,000 recorded for the 2011 first quarter.
For the first six months of fiscal 2011, EDAC's sales increased 15% to $42.1 million from $36.6 million for the comparable 2010 period. Income from operations was $2.6 million for the first half of 2011, up 128% from $1.1 million for the same period of 2010. Net income was $1.4 million, or $0.27 per diluted share, for the first half of 2011. For the first half of 2010, net income was $704,000, or $0.14 per diluted share, including other income of $360,000 from the recognition of a deposit on an equipment purchase made by AERO prior to its acquisition.
Backlog and Outlook
Total sales backlog at July 2, 2011 was approximately $168.0 million, compared with $134.4 million at the end of the 2011 first quarter and $135.1 million at July 3, 2010.
"EDAC's performance for the second quarter shows that we are achieving the critical mass of sales needed to drive stronger margins and a more consistent level of profitability. We have accomplished this goal by working to position each of our key product lines to capture the opportunities in their respective markets. EDAC AERO has benefitted from our investments in broadening the range of parts we provide to key aerospace customers, as well as in enhancing our production capabilities. APEX Machine Tool is focused on serving larger and more complex customer projects and was aided further by an improved economic environment. EDAC Machinery has expanded its product portfolio and technical capabilities through acquisitions that are now beginning to gain solid traction," said Dominick A. Pagano, EDAC's President and Chief Executive Officer.
"For the remainder of 2011, we expect continued top-line growth as compared to the year-ago periods. Based on our backlog, and past customer demands, we expect this growth to be lighter in the third quarter and more heavily concentrated in this year's fourth quarter. Over the longer term, we believe the prospects for the aerospace industry are very favorable, as the level of aircraft orders at the recent Paris Air Show indicates solid demand along the aerospace supply chain beginning in the next several years, while our industrial lines will benefit as economic conditions remain on track," Mr. Pagano concluded.
Conference Call and Webcast
The Company will host a conference call to review the above results at 10:00 a.m. (Eastern Time) today, July 28, 2011. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision grinders and precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
MikeDDKing
14 years ago
EDAC Technologies Reports Improved Fiscal 2011 First Quarter Results
- Net Income Increases to $0.08 per Share on Sales of $20.2 Million -
- Current Backlog Totals Approximately $171 Million, Including New Long-Term Agreement -
On Wednesday April 27, 2011, 8:00 am
FARMINGTON, Conn., April 27, 2011 /PRNewswire/ -- EDAC Technologies Corporation (NASDAQ:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported sales of $20.2 million for the first quarter of fiscal 2011, an increase of 14% compared with $17.8 million for the first quarter of fiscal 2010.
Net income for the first quarter of 2011 increased 13% to $408,000, or $0.08 per diluted share, from $360,000, or $0.07 per diluted share, for the same period of 2010. The first quarter of 2010 benefited from non-recurring other income of $350,000. The 2011 first quarter net income improved sequentially from $56,000, or $0.01 per share, reported for the fourth quarter of 2010.
The increase in EDAC's 2011 first quarter sales compared with the same period a year ago reflected substantial growth in each of the Company's three major product lines: EDAC Aero, APEX Machine Tool and EDAC Machinery. The improvement in net income versus the 2010 first quarter primarily reflected the increased sales, particularly in the Company's higher margin product lines, and improved absorption of the costs of new products developed.
Sales for EDAC's three major product lines, and the key factors contributing to the sales trends, are as follows:
* Sales for the EDAC AERO product line were $13.7 million, an increase of 9% from the first quarter of 2010 and 18% from the 2010 fourth quarter. This reflected continued ramp-up in the shipment of parts for a large aerospace contract that had experienced qualification delays in 2010 as well as increased volumes of other new parts and improved aerospace market demand.
* Sales for the Apex Machine Tool product line were $4.7 million in the 2011 first quarter, an increase of 17% from the year-ago first quarter and up 10% sequentially, reflecting increased demand for fixture, tooling and mold products due to the economic recovery, as well as the Company's efforts to expand the customer base and markets for Apex products.
* Sales for the EDAC Machinery product line were $1.8 million, an increase of 45% from the first quarter of 2010 and although above expectations it was down 10% sequentially. The improvement from the year-ago first quarter reflected increased sales of SNI precision grinders following its acquisition out of bankruptcy by EDAC in 2009.
Other highlights of EDAC's results for the recent period are as follows:
* The gross profit for the 2011 first quarter was $2.8 million, or 13.9% of sales. This compares with $2.1 million, or 12.0% of sales, in the 2010 first quarter and $1.8 million, or 10.1% of sales, in the 2010 fourth quarter. The gross margin increase reflected the move from development to production of new aerospace parts and improved cost absorption with the production ramp-up of the parts that experienced qualification delays in 2010. The margin improvement over the year-ago first quarter also reflected a shift in sales to the Company's higher margin businesses.
* SG&A expenses for the first quarter of 2011 were $1.9 million, or 9.6% of sales, compared with $1.7 million or 9.7% of sales in the first quarter of 2010 and $1.6 million, or 8.8% of sales, in the fourth quarter of 2010.
* Operating income for the first quarter of 2011 was $864,000, more than double the first quarter of 2010 and more than triple the 2010 fourth quarter.
* EDAC had negligible other income in the 2011 first quarter, compared to other income of $360,000 in the 2010 first quarter from the recognition of a deposit on an equipment purchase made by AERO prior to its acquisition.
Backlog and Outlook
EDAC announced that in April it has signed a multi-year agreement to supply additional engine parts to a leading European engine manufacturer, for use on a commercial airliner program. The agreement has a five-year term and is valued at approximately $42 million over that period. The addition of this contract has resulted in backlog reaching approximately $171 million at April 27, 2011, compared with $138.3 million at the end of the 2010 fourth quarter.
"Our results for the first quarter represent a strong start for 2011, and demonstrate that we are beginning to deliver on our vision of EDAC as a more diversified, faster growing and increasingly profitable supplier to major aerospace and industrial customers. We are beginning to benefit from our investments in recent years to bring a significant number of new parts to market. We have also shown that our team can work successfully to overcome production challenges and satisfy the needs of demanding customers for high-precision parts. And, we have proven our ability to integrate, enhance the performance and realize the value of acquired product lines," said Dominick A. Pagano, EDAC's President and Chief Executive Officer.
"We are especially pleased to have achieved a gross margin of 13.9% for the 2011 first quarter. This is not only a significant improvement over the previous year, but also is more reflective of the margin level we are striving to achieve and improve upon going forward. Based on our backlog, as well as the seasonality of our business, in which sales are somewhat more heavily weighted toward the first and second quarters of the year, we expect to see a continued strong level of sales in the second quarter of 2011," Mr. Pagano concluded.
Conference Call and Webcast
The Company will host a conference call to review the above results at 1:00 p.m. (Eastern Time) today, April 27, 2011. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
http://www.prnewswire.com/news-releases/edac-technologies-reports-improved-fiscal-2011-first-quarter-results-120769319.html
MikeDDKing
14 years ago
EDAC Technologies Reports Fiscal 2010 Fourth Quarter Results
- Net Income is $0.01 per Share on Sales of $17.9 Million -
- Backlog Totals $138.3 Million at Year-End -
On Thursday March 10, 2011, 8:00 am EST
FARMINGTON, Conn., March 10, 2011 /PRNewswire/ -- EDAC Technologies Corporation (Nasdaq:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported sales of $17.9 million for the fourth quarter of fiscal 2010, an increase of 10% compared with $16.3 million for the fourth quarter of fiscal 2009.
Net income for the fourth quarter of 2010 was $56,000, or $0.01 per diluted share, compared to $113,000, or $0.02 per diluted share, for the same period of 2009.
The year-over-year increase in EDAC’s fourth quarter sales reflected substantial growth in the Company’s APEX Machine Tool and EDAC Machinery product lines, which offset 4% lower sales in the EDAC AERO product line. Net income in the fourth quarter of 2010 was below the same period of 2009 despite improved operating income, as the 2009 fourth quarter included $262,000 of other income due to a favorable adjustment to the net gain on the acquisition of AERO recorded in the 2009 second quarter.
Sales for EDAC’s three major product lines, and the key factors contributing to the sales trends, are as follows:
* Sales for the EDAC AERO product line were $11.7 million, a decrease of 4% from the fourth quarter of 2009. The comparison reflected an 8% increase in sales of the AERO product line acquired in May 2009 primarily due to increased demand for the Company’s products. This was offset by 15% lower sales of the traditional EDAC Aerospace product line compared to the prior year fourth quarter primarily due to longer than expected development and qualification time on products for a customer, which delayed the ramp-up of shipments until later in the 2010 fourth quarter. The ramp-up has continued in the 2011 first quarter.
* Sales of the Apex Machine Tool product line were $4.2 million in the 2010 fourth quarter, an increase of 27% from the year-ago fourth quarter, as the Company’s strategy to focus on increasing the number and size of customer orders and expanding the markets served by Apex continued to gain traction.
* Sales of the EDAC Machinery product line were $2.0 million, an increase of 148% from the fourth quarter of 2009. This included a 109% increase in sales of Gros-Ite Spindle products, due to continued strong demand for hydrostatic spindles from a key OEM customer. It also reflected a more than three-fold increase in the sales of Service Network International (SNI), the assets of which were acquired in August 2009.
Other highlights of EDAC’s results for the recent period are as follows:
* The gross profit was $1.8 million for the 2010 fourth quarter and included higher than normal development and qualification costs for a new parts program that resulted in a loss on that program for a second consecutive quarter. Having qualified all of the parts, the Company is now in a production ramp-up that will further allow the implementation of improved production processes for this program. In the fourth quarter of 2009, the gross profit was $1.4 million and included $252,000 of costs related to re-start of the then recently acquired SNI operations. The gross profit margin was 10.1% and 8.5% of total sales in the fourth quarters of 2010 and 2009, respectively.
* SG&A expenses for the fourth quarter of 2010 were $1.6 million or 8.8% of sales compared with $1.5 million or 9.2% of sales in the fourth quarter of 2009.
* Operating income increased to $242,000 for the fourth quarter of 2010, compared to a loss from operations of $114,000 for the same period of 2009.
On a sequential basis, EDAC’s sales for the fourth quarter of 2010 were 3% lower than the third quarter. While sales for Apex Machine Tool increased 7% and sales for EDAC Machinery products increased 65%, including an SNI order that had shifted from the third quarter, there was a 13% decrease in the EDAC AERO product line. This was due to the reduction in a military spare parts order and a requested delay in parts for a ground-based turbine project in Spain, which were only partially offset by an increased order for drum detail parts for a commercial aircraft engine.
For the 52 weeks of fiscal 2010, ended January 1, 2011, EDAC’s sales increased 34% to $73.1 million from $54.6 million for fiscal 2009 and included a full year of sales of the AERO acquisition completed May 27, 2009 and of the SNI acquisition completed August 10, 2009. Income from operations was $1.8 million for 2010, compared with $1.1 million for 2009. Net income for 2010 was $845,000, or $0.17 per diluted share. For 2009, net income was $7.6 million, or $1.54 per diluted share, but included other income of $11.9 million, due to a net gain on the acquisition of the manufacturing business unit of MTU Aero Engines North America Inc.
Backlog and Outlook
EDAC’s total sales backlog at January 1, 2011 was approximately $138.3 million, compared with $133.6 million at the end of the 2010 third quarter and approximately $125.9 million at year-end fiscal 2009.
Separately, EDAC announced that it has received a letter of intent from a leading European engine manufacturer to proceed with all necessary tooling for parts production in anticipation of being awarded a multi-year agreement to supply eight engine parts for a commercial airliner program. The agreement has a five-year term and is valued at approximately $36 million over that period.
“Our team is hard at work on our priorities to generate sustainable top-line growth and stronger profit margins. We have invested in the development of a significant number of new parts for major aerospace programs, and are continuing to see steady progress in having those parts qualified and in ramping up volume. Our newest agreement also demonstrates our ability to gain traction with an increasingly diverse range of customers and aviation platforms. As we reach greater critical mass in delivering the new parts, and also institute more efficient processes as needed, the impact on our gross margin should be solidly positive. Consequently, we expect to see an improvement in sales and profitability in the first quarter of 2011 as compared with the fourth quarter of 2010,” said Dominick A. Pagano, EDAC’s President and Chief Executive Officer.
Conference Call and Webcast
The Company will host a conference call to review the above results at 10:00 a.m. (Eastern Time) today, March 10, 2011. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC’s core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
MikeDDKing
14 years ago
EDAC Technologies Reports Fiscal 2010 Third Quarter Results
- Net Income is $0.02 per Share on Sales of $18.5 Million -
- Backlog Totals $133.6 Million at Quarter-End -
On Friday October 22, 2010, 8:00 am EDT
FARMINGTON, Conn., Oct. 22 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported sales of $18.5 million for the third quarter of fiscal 2010, an increase of 22% compared with $15.1 million for the third quarter of fiscal 2009.
Net income for the 2010 third quarter was $84,000, or $0.02 per diluted share, compared to $80,000, or $0.02 per diluted share, for the same period last year.
EDAC's higher sales for the 2010 third quarter reflected year-over-year growth in each of its three major product lines, primarily due to the Company's expanding parts programs and customer base, along with improved market conditions. The trend in net income reflected the increase in sales, largely offset by higher cost of sales due to development costs for an emerging program, unabsorbed expenses related to the SNI product line, and costs associated with integrating Accura Technics, acquired in May 2010. These items increased cost of sales by a total of approximately $600,000.
Sales for EDAC's three major product lines, and the key factors contributing to the sales trends, are as follows:
* Sales of the EDAC AERO product line were $13.4 million, an increase of nearly 20% compared with the 2009 third quarter. This growth reflected increased sales of 20% to nearly $7 million in the Company's traditional EDAC Aerospace product line and 19% to $6.4 million in the Aero product line that was acquired in May 2009 as a result of EDAC's purchase of the manufacturing business unit of MTU Aero Engines North America, Inc. ("AERO"). In particular, EDAC AERO began to ship parts for applications such as rotor aircraft, LEAPX, and GTF (Gear Turbo Fan) engine programs, while also providing an expanded range of parts for the GE90 engine (Boeing 777).
* Sales of the Apex Machine Tool product line were $3.9 million in the 2010 third quarter, rising 17% from the year-ago quarter. This reflected a focus on increasing the number and size of customer orders and expanding the markets served by Apex.
* Sales of the EDAC Machinery product line totaled $1.2 million in the 2010 third quarter, an increase of 107% from the same 2009 period. This reflected a 71% rise in sales of Gros-Ite Spindle products, which exceeded the $1.0 million level due to strong demand for hydrostatic spindles from a key OEM customer. Service Network Inc. assets ("SNI"), acquired in August 2009, contributed $197,000 in sales for the 2010 third quarter. The Company recently received orders totaling $1.8 million for SNI products, which it expects to ship in the fourth quarter of 2010 and the first quarter of 2011.
Other factors contributing to EDAC's results for the recent period are as follows:
* Gross profit was $1.8 million for the 2010 third quarter, matching the year-ago period. The gross profit margin was 9.5% and 11.6% of total sales in the third quarters of 2010 and 2009, respectively.
* SG&A costs for the 2010 third quarter increased 6.7% from a year ago, primarily due to costs associated with the SNI product line. As a percentage of total sales, SG&A declined to 7.5% for the third quarter of 2010, from 8.6% in the third quarter of 2009.
* Operating income was $375,000 for the third quarter of 2010, compared to $456,000 for the same period of 2009.
* The Company's tax rate was 28.4% for the 2010 third quarter, compared with 33.1% for the 2009 third quarter.
On a sequential basis, EDAC's $18.5 million in sales for the 2010 third quarter were nearly even with the second quarter. A 6% increase in the EDAC AERO product line, including a 23% increase in the Company's traditional aerospace products, was offset by a 19% decline in Apex Machine Tool due to seasonality and a 14% decrease in EDAC Machinery products caused by a shift in an SNI order out of the third quarter. The Company's net income of $84,000, or $0.02 per diluted share, for the 2010 third quarter compared with $345,000, or $0.07 per diluted share, for the second quarter of 2010.
For the first nine months of fiscal 2010, EDAC's sales increased to $55.2 million from $38.3 million for the comparable 2009 period. Income from operations was $1.5 million for the first nine months of 2010, versus $1.2 million for the same period of 2009. Net income was $788,000, or $0.16 per diluted share, for the first nine months of 2010. For the same period of 2009, net income was $7.5 million, or $1.53 per diluted share, but included other income of $11.7 million, due to a net gain on the acquisition of AERO.
"Our strong sales increase compared to the year-ago period reflected EDAC's efforts to drive organic growth by investing in the development of new parts for an expanding customer base, as well as the integration and continued growth of acquired operations. At the same time, the higher cost of sales restrained earnings in the recent quarter. We are working to refine the cost-effectiveness of certain production processes in our AERO product line to address this issue. We believe that the rising demand for our product lines, including substantial shipments of SNI products expected in the next two quarters, should also help to improve gross profit," said Dominick A. Pagano, President and Chief Executive Officer.
Backlog and Outlook
EDAC's total sales backlog at October 2, 2010 was approximately $133.6 million, compared with $135.1 million at the end of the 2010 second quarter and approximately $125.9 million at year-end fiscal 2009.
Mr. Pagano noted, "Based on our backlog, as well as our efforts to expand our range of products and cultivate strong customer relationships, we expect our sales in the 2010 fourth quarter to increase sequentially as compared to the third quarter."
Conference Call and Webcast
The Company will host a conference call to review the above results at 10:00 a.m. (Eastern Time) today, October 22, 2010. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
See the PR for tables
MikeDDKing
14 years ago
EDAC Technologies Reports Fiscal 2010 Second Quarter Results
- Record Sales of $18.8 Million, Up 6% from 1Q10 -
- Backlog Totals $135.1 Million at Quarter-End -
On Tuesday July 27, 2010, 8:00 am EDT
FARMINGTON, Conn., July 27 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported record sales of $18.8 million for the second quarter of fiscal 2010, compared with $13.6 million for the second quarter of 2009 and $17.8 million for the first quarter of 2010.
Net income for the 2010 second quarter was $345,000, or $0.07 per diluted share. For the second quarter of 2009, net income was $7.4 million, or $1.50 per diluted share, including other income of $11.7 million due to a net gain on an acquisition. For the first quarter of 2010, net income was $360,000, or $0.07 per diluted share, including other income of $350,000 from the recognition of a deposit on an equipment purchase in association with AERO. There was no other income in the 2010 second quarter.
Income from operations was $729,000 for the 2010 second quarter, up from $515,000 in the 2009 second quarter and $410,000 in the 2010 first quarter.
The Company's tax rate declined to 31.4% for the 2010 second quarter, from 38.9% for the 2009 second quarter and 33.8% for the 2010 first quarter.
EDAC's results for the second quarter of 2010 included $7.4 million in sales from product lines acquired during 2009. These included the manufacturing business unit of MTU Aero Engines North America, Inc. ("AERO"), purchased in May 2009, and certain assets of Service Network Inc. ("SNI"), purchased in August 2009. The AERO and SNI acquisitions now operate as part of the Company's EDAC AERO and EDAC Machinery product lines, respectively.
Sales rose 6% on a sequential basis comparing the first and second quarters of 2010. This was largely due to organic growth of the acquired product lines, as well as a significant increase in sales at Apex Machine Tool. Sales for the Company's three product lines, and key factors contributing to the sequential sales increase, are as follows:
* Sales of the EDAC AERO product line were $12.6 million, a slight increase of less than 1% compared with the 2010 first quarter. This reflected a 10% increase in sales of the acquired AERO product line from organic growth, which offset a decrease in sales of the Company's traditional EDAC Aerospace product line mainly due to the shift of a scheduled shipment into the third quarter.
* Sales of the Apex Machine Tool product line were $4.8 million in the 2010 second quarter, increasing 21% from the 2010 first quarter. EDAC realigned management of Apex earlier this year, resulting in a successful focus on increasing the number and size of customer orders and expanding the markets served.
* Sales of the EDAC Machinery product line (formerly known as Gros-Ite Spindles) totaled $1.4 million in the 2010 second quarter, up 13% sequentially. Both the original spindle unit and acquired SNI operations experienced organic sales growth.
Other factors contributing to EDAC's results for the recent period are as follows:
* Gross profit was $2.3 million for the 2010 second quarter, increasing 5% from the first quarter of 2010. The gross profit margin was 12.0% of total sales in both the first and second quarters of 2010.
* SG&A costs for the 2010 second quarter declined 12% from the 2010 first quarter primarily due to reduced bonus and employee benefit expense. SG&A was 8.1% of total sales in the second quarter of 2010, a decrease from 9.7% in the first quarter of 2010.
* Operating income rose 78% from the first quarter of 2010 to $729,000. The second quarter 2010 operating margin was 3.9%, compared with 2.3% for the first quarter of 2010.
For the first six months of fiscal 2010, EDAC's sales increased to $36.6 million from $23.2 million for the comparable 2009 period. Income from operations was $1.1 million for the first half of 2010, versus $734,000 for the same period of 2009. Net income was $704,000, or $0.14 per diluted share for the first half of 2010. For the same period of 2009, net income was $7.4 million, or $1.52 per diluted share, including other income of $11.7 million due to a net gain on the acquisition of AERO.
"The performance of each of EDAC's product lines in the 2010 second quarter showed the early positive effects of our growth strategies. The acquired operations that are now part of EDAC Aero produced higher sales as we increased our delivery of parts for new programs such as the LEAP-X and Geared Turbofan high-efficiency jet engines, and the Joint Strike Fighter. Apex Machine Tools is benefitting from a new management team that is successfully transitioning that product line from short-term tool and die work to more extensive production programs for significant customers. Our EDAC Machinery product line increased sales in both its traditional and SNI components, while SNI also has benefitted from its relocation to a new, more efficient manufacturing facility," said Dominick A. Pagano, President and Chief Executive Officer.
On May 18, 2010, EDAC acquired certain assets of Accura Technics, LLC, a manufacturer of computer numerical control (CNC) grinding systems used in manufacturing precisely engineered parts for a wide variety of applications. The purchase price was approximately $300,000. The contributions of Accura Technics during the 2010 second quarter were not material.
Backlog and Outlook
EDAC's total sales backlog at July 3, 2010 was approximately $135.1 million, compared with $136.1 million at the end of the 2010 first quarter and $134.0 million at July 4, 2009.
"We see a number of positive factors heading into the second half of 2010," noted Mr. Pagano. "Our traditional EDAC Aerospace unit has been pursuing an ambitious program of new parts development, and we believe it is now positioned to ramp up deliveries of parts for platforms such as the V2500 engine. EDAC AERO also is actively participating in a number of development programs. Both our Apex and EDAC Machinery product lines are successfully working to grow and diversify their operations, and the acquisition of Accura Technics should allow us to serve an expanded range of precision grinding applications."
"We are encouraged by our backlog and these other favorable developments as we look toward the 2010 third quarter and the balance of the year," Mr. Pagano concluded.
Conference Call and Webcast
The Company will host a conference call to review the above results at 10:00 a.m. (Eastern Time) today, July 27, 2010. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands except per share amounts)
For the three months ended
For the six months ended
July 3,
July 4,
July 3,
July 4,
2010
2009
2010
2009
Sales
$ 18,841
$ 13,629
$ 36,628
$ 23,213
Cost of sales
16,583
11,933
32,229
20,436
Gross profit
2,258
1,696
4,399
2,776
Selling, general and administrative expenses
1,529
1,181
3,260
2,042
Income from operations
729
515
1,139
734
Non-operating income (expense):
Interest expense
(226)
(191)
(452)
(330)
Other income
-
11,740
360
11,746
Income before income taxes
503
12,064
1,047
12,150
Provision for income taxes
158
4,688
343
4,718
Net income
$ 345
$ 7,376
$ 704
$ 7,433
Income per common share
Data:
Basic income per share
$0.07
$1.53
$0.15
$1.54
Diluted income per share
$0.07
$1.50
$0.14
$1.52
Weighted average shares outstanding:
Basic
4,857
4,830
4,850
4,828
Diluted
5,102
4,919
5,029
4,892
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
(Audited)
July 3,
January 2,
2010
2010
ASSETS
CURRENT ASSETS:
Cash
$ 661
$ 1,100
Accounts receivable, net
13,782
10,862
Inventories, net
21,206
19,990
Prepaid expenses and other current assets
356
306
Refundable income taxes
112
112
Deferred income taxes
1,098
1,098
Total current assets
37,215
33,468
PROPERTY, PLANT AND EQUIPMENT
49,727
48,431
Less: accumulated depreciation
27,279
25,974
22,448
22,457
OTHER ASSETS
178
202
TOTAL ASSETS
$59,841
$56,127
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Lines of credit
$ 2,450
$ 1,591
Current portion of long-term debt
2,071
1,833
Trade accounts payable
7,642
6,828
Employee compensation and amounts withheld
1,307
1,185
Accrued expenses
2,038
1,819
Customer advances
583
1,028
Total current liabilities
16,091
14,284
LONG-TERM DEBT, less current portion
13,211
12,154
PENSION LIABILITIES
1,448
1,448
DEFERRED INCOME TAXES
4,483
4,475
SHAREHOLDERS' EQUITY:
Common stock
12
12
Additional paid-in capital
11,475
11,225
Retained earnings
15,489
14,785
Accumulated other comprehensive loss
(2,368)
(2,256)
Total shareholders' equity
24,608
23,766
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$59,841
$56,127
MikeDDKing
15 years ago
EDAC Technologies Reports Fiscal 2010 First Quarter Results
- Sales Increase 9% from 4Q09 to Record $17.8 Million on Organic Growth -
- Sales Growth of 86% over 1Q09 Reflects Acquisitions and 16% Organic Growth -
- Backlog Rises to $136 Million from $126 Million at 2009 Year End -
On Wednesday April 28, 2010, 8:00 am EDT
FARMINGTON, Conn., April 28 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported record sales of $17.8 million for the first quarter of fiscal 2010, compared with $9.6 million for the first quarter of 2009 and $16.3 million in the 2009 fourth quarter. Net income for the 2010 first quarter was $360,000, or $0.07 per diluted share, up from $56,000, or $0.01 per diluted share, in the 2009 first quarter and $113,000, or $0.02 per diluted share, in the fourth quarter of 2009.
The sharp increase in sales compared with the 2009 first quarter primarily reflected the acquisition in May 2009 of the manufacturing business unit of MTU Aero Engines North America Inc. ("AERO") and, to a lesser extent, the acquisition in August 2009 of the assets of Service Network Inc. ("SNI"). The acquired AERO and SNI units now operate as part of the Company's EDAC AERO and Gros-Ite Spindles product lines, respectively. The sequential rise in sales from the fourth quarter of 2009 to the first quarter of 2010 was due to organic growth, driven by management's strategies to diversify the range of parts EDAC supplies to aerospace and industrial customers, and to expand its participation in emerging aviation programs.
Additional details of EDAC's 2010 first quarter results include the following:
* Total sales increased 85.6% from the first quarter of 2009 and included $6.7 million of sales from the AERO and SNI operations acquired in the second and third quarters of 2009. The increase also reflects 16.0% organic growth. The 9.1% increase in sales from the fourth quarter of 2009 resulted entirely from organic growth. Total sales include three product lines:
o Sales of the EDAC AERO product line were $12.6 million, an increase of 142.1% from the first quarter of 2009. The increase included $6.3 million of sales from the AERO acquisition and 21% organic growth. EDAC AERO sales rose 3.4% from the 2009 fourth quarter.
o Sales of the Apex Machine Tool product line were $4.0 million in the 2010 first quarter, increasing 3.5% from the first quarter of 2009 and 19.4% from the 2009 fourth quarter. The sequential increase includes sales to new customers in the space, medical and consumer sectors.
o Sales of the Gros-Ite Spindles product line totaled $1.2 million in the 2010 first quarter, up 127.8% from the 2009 first quarter and 53.4% sequentially. The year-over-year increase included $386,000 of sales from SNI in the 2010 first quarter. The organic growth in spindle sales year-over-year and sequentially was due to rising demand from customers in the telecommunications and other industries.
* Gross profit was $2.1 million for the 2010 first quarter, increasing 98.2% from the first quarter of 2009 primarily due to the acquisition of AERO, and 54.1% sequentially largely due to improved manufacturing processes. Gross profit was 12.0% of total sales in the first quarter of 2010 compared with 11.3% in the first quarter of 2009 and 8.5% in the 2009 fourth quarter.
* SG&A costs for the 2010 first quarter increased 100.9% from the 2009 first quarter primarily due to the acquisition of AERO, and 15.1% sequentially primarily due to management incentive programs and marketing expense. SG&A represented 9.7% of total sales in the first quarter of 2010 compared with 9.0% in the first quarter of 2009 and 9.2% in the fourth quarter of 2009.
* Results for the 2010 first quarter included other income of $350,000, equivalent to $0.05 per diluted share after-tax, from the recognition of a deposit on an equipment purchase made by AERO prior to its acquisition.
"EDAC's performance in the 2010 first quarter reflects our efforts to build the business both through acquisitions and organic growth. We have demonstrated our ability to absorb last year's acquisitions of AERO and SNI, which expanded our footprint in the aerospace and industrial sectors, and to grow those businesses under our ownership. At the same time, we have made investments to expand the range of parts we supply to a variety of aerospace customers, and to win an increasing role in emerging programs such as the Joint Strike Fighter, Boeing 787 Dreamliner, and LEAP-X and Geared Turbofan high-efficiency jet engines. We realigned the Apex Machine Tool management to sharpen our focus on opportunities in that product line, and are continuing to expand the applications for Gros-Ite Spindles among existing and new customers. As a result, we feel confident in the potential of all of our businesses to deliver profitable growth in 2010," said Dominick A. Pagano, President and Chief Executive Officer.
Backlog and Outlook
EDAC's total sales backlog at April 3, 2010 was approximately $136.1 million, an increase of $10.2 million from the $125.9 million reported at the end of 2009. Subsequent to the end of the 2010 first quarter, backlog increased by an additional $4 million, to approximately $140.0 million currently. The increase reflected an expanding range of parts for aircraft engines, the addition of a significant contract to supply structural aerospace products, and several contracts to provide components for new military and commercial aircraft programs.
Mr. Pagano noted, "Based on our backlog, we expect our sales in the second quarter to slightly exceed our first quarter sales of $17.8 million and to be substantially higher than the $13.6 million recorded in the second quarter of 2009. We are continuing to pursue strategies and evaluate opportunities to gain share in our markets through complementary acquisitions and investments that expand and diversify our product lines, services and manufacturing capabilities."
Conference Call and Webcast
The Company will host a conference call to review the above results at 1:00 p.m. (Eastern Time) today, April 28, 2010. The call will be broadcast simultaneously over the Internet. Listeners can access a webcast of the conference call live over the Internet at www.edactechnologies.com. Please allow 10 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version will be available at this web site.
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS:
EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the quarter ended
April 3, April 4,
(in thousands except per share amounts) 2010 2009
Sales $ 17,787 $ 9,584
Cost of Sales 15,646 8,504
Gross Profit 2,141 1,080
Selling, General and
Administrative Expenses 1,730 861
Income From Operations 410 219
Non-Operating Income (Expense):
Interest Expense (226 ) (140 )
Other 360 7
Income Before Income Taxes 544 86
Provision for Income Taxes 184 30
Net Income $ 360 $ 56
Income per common share data:
Basic income per share $ 0.07 $ 0.01
Diluted income per share $ 0.07 $ 0.01
Weighted average shares outstanding:
Basic 4,842 4,825
Diluted 4,958 4,862
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
April 3, January 2,
(in thousands) 2010 2010
ASSETS
CURRENT ASSETS:
Cash
$ 766 $ 1,100
Accounts receivable, net
12,543 10,862
Inventories, net
20,196 19,990
Prepaid expenses and other current assets
556 306
Refundable income taxes
112 112
Deferred income taxes
1,098 1,098
Total current assets
35,270 33,468
PROPERTY, PLANT AND EQUIPMENT
49,175 48,431
Less: accumulated depreciation
26,663 25,974
22,553 22,457
OTHER ASSETS
190 1,202
TOTAL ASSETS
$ 58,013 $ 56,127
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit
$ 3,491 $ 1,591
Current portion of long-term debt
1,773 1,833
Trade accounts payable
6,405 6,828
Employee compensation and amounts withheld
1,596 1,185
Accrued expenses
2,020 1,819
Customer advances
702 1,028
Total current liabilities
15,988 14,284
LONG-TERM DEBT, less current portion
11,744 12,154
PENSION LIABILITIES
1,521 1,448
DEFERRED INCOME TAXES
4,557 4,475
SHAREHOLDERS’ EQUITY:
Common stock
12 12
Additional paid-in capital
11,342 11,225
Retained earnings
15,145 14,785
Accumulated other comprehensive loss
(2,296 ) (2,256 )
Total shareholders’ equity
24,203 23,766
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 58,013 $ 56,127
MikeDDKing
15 years ago
EDAC Technologies Reports Fiscal 2009 Fourth Quarter and Full Year Results
Current Backlog Rises to $134 Million from $126 Million at 2009 Year End due to Expanded Aerospace Products and Emerging Programs
On Tuesday March 2, 2010, 6:27 pm EST
FARMINGTON, Conn., March 2 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq:EDAC - News), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today reported sales for the fourth quarter of fiscal 2009 of $16.3 million, up from $12.1 million for the same period of 2008 and $15.1 million in the 2009 third quarter. Net income for the 2009 fourth quarter was $113,000, or $0.02 per diluted share, versus a net loss of ($279,000), or ($0.06) per diluted share in the 2008 fourth quarter and net income of $80,000 or $0.02 in the third quarter of 2009.
For the full year fiscal 2009 ended January 2, 2010, EDAC's sales increased to $54.6 million from $44.7 million for 2008. Net income was $7.6 million, or $1.54 per diluted share, for 2009, and included other income of $11.9 million due to a net gain on the acquisition of the manufacturing business unit of MTU Aero Engines North America, Inc. (AERO) completed on May 27, 2009. This compares with net income of $1.1 million, or $0.23 per diluted share, for 2008. There were 52 weeks in fiscal 2009 versus 53 weeks in fiscal 2008.
Results for the fourth quarter of fiscal 2009 primarily reflected the following factors:
* Sales increased 34.7% from the fourth quarter of 2008 and 7.7% sequentially. This was mainly due to the contribution of AERO, which represented $5.8 million of fourth quarter 2009 sales and $5.4 million of 2009 third quarter sales. As a result of this contribution, fourth quarter 2009 sales from EDAC AERO, which also includes the Precision Aerospace product line, rose to $12.1 million, which was 148% higher than in the fourth quarter of 2008 and 8.7% higher sequentially, also reflecting organic growth due to an increase in shipments of certain jet engine parts. The increase in aerospace sales more than offset a 45% decrease in sales from the Apex Machine Tool product line compared with the fourth quarter of 2008, reflecting the continued impact of the recession on industrial tooling. Apex sales totaled $3.3 million in the fourth quarter of 2009, which were approximately level with the 2009 third quarter. Sales from the Gros-Ite Spindles product line totaled $812,000 in the fourth quarter of 2009 and included $281,000 of sales from Service Network International (SNI), the assets of which EDAC acquired from Bankruptcy Court on August 10, 2009. Gros-Ite Spindles sales were down 25% from the fourth quarter of 2008, but rose 38% sequentially, due to the inclusion of SNI and a pickup in production in the automotive industry.
* The fourth quarter 2009 gross profit of $1.4 million rose 144% from the fourth quarter of 2008, but it was 21% below the third quarter of 2009 primarily due to the absorption of one-time costs of $252,000 related to the re-start of the SNI operations, which had ceased prior to being purchased by the Company.
* SG&A costs for the fourth quarter of 2009 increased 84% from the fourth quarter of 2008 and 15% sequentially, primarily due to pension expense, year-end adjustments to the bad debt reserve and transitional expenses related to acquisitions. The increase in SG&A and re-start costs associated with SNI contributed to an operating loss for the 2009 fourth quarter.
"2009 was a building year for EDAC", said Dominick A. Pagano, President and Chief Executive Officer. "We completed the acquisitions of AERO, which increased our presence in aerospace programs, and SNI, which added new grinder product lines. As a result, we rebalanced our business mix to generate higher margins and positioned the Company to be a more valuable partner to our customers. We also invested in developing jet engine parts for the Joint Strike Fighter and for GE engines, as well as in other products and capabilities. While these investments resulted in the need to absorb additional costs during the year, they have expanded our capabilities and provided a solid platform for future profitable growth."
Backlog and Outlook
EDAC's total sales backlog at the end of fiscal 2009 was approximately $125.9 million compared with $52.4 million at the end of fiscal 2008 and $134.0 million at the end of the 2009 third quarter.
The backlog increased by approximately $8 million from year-end to reach $134 million as of February 28, 2010, as new orders replaced sales from backlog in the fourth quarter. The recent orders were for an expanding range of parts for aircraft engines, the addition of a significant contract to supply structural aerospace products, and several new contracts to provide components for new military and commercial aircraft programs. These included:
* Additional parts for the IAE V2500;
* Additional parts for the Joint Strike Fighter;
* Development parts for the Gear Turbo Fan;
* Development parts for the Leap-X;
* First time orders for mature engine programs, including rotating components for rotor aircraft, compressor cases, stators, and large fan cases; and
* First time orders for landing gear components.
Mr. Pagano noted, "Our recent growth in backlog and sequential increase in sales from the third to the fourth quarter of 2009 provide a good indicator of our ability to grow the business going forward. About $7 million of the increase in backlog since year-end came from parts that only recently were added to our product lines."
Mr. Pagano added, "Based on our backlog, we expect sales for the first quarter of 2010 to slightly exceed our 2009 fourth quarter sales of $16.3 million and to be substantially higher than the $9.6 million recorded in the first quarter of 2009, reflecting our recent acquisitions and continued organic growth."
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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; including forward-looking statements regarding future profitability, expected sales and other matters that are subject to risks and uncertainties. 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.
CONTACTS: EDAC Technologies Corporation
Glenn L. Purple
Vice President-Finance
860-677-2603
Comm-Counsellors, LLC
Edward Nebb
203-972-8350
June Filingeri
203-972-0186
(See attached financial tables)
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
For the three months For the twelve months
ended ended
Jan. 2, Jan. 3, Jan. 2, Jan. 3,
2010 2009 2010 2009
--- ---- --- ----
Sales $16,298 $12,099 $54,643 $44,677
Cost of sales 14,909 11,529 48,716 38,805
------ ------ ------ ------
Gross profit 1,389 570 5,927 5,872
Selling, general and
administrative
expenses 1,503 815 4,850 3,492
----- --- ----- -----
(Loss) income from
operations (114) (245) 1,076 2,380
Non-operating income
(expense):
Interest expense (236) (152) (829) (631)
Other income 268 10 11,941 73
--- --- ------ ---
(Loss) income before
income taxes (82) (387) 12,188 1,822
(Benefit from)
provision for income
taxes (195) (108) 4,562 683
---- ---- ----- ---
Net income (loss) $113 $(279) $7,626 $1,138
==== ===== ====== ======
Income (loss) per
common share Data:
Basic income (loss) per
share $0.02 ($0.06) $1.58 $0.24
===== ====== ===== =====
Diluted income (loss)
per share $0.02 ($0.06) $1.54 $0.23
===== ====== ===== =====
Weighted average shares
outstanding:
Basic 4,839 4,825 4,833 4,724
Diluted 4,990 4,905 4,945 5,038
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) January 2, January 3,
2010 2009
---- ----
ASSETS
------
CURRENT ASSETS:
Cash $1,100 $1,311
Accounts receivable, net 10,862 7,932
Inventories, net 19,990 7,962
Prepaid expenses and other current assets 306 107
Refundable income taxes 112 687
Deferred income taxes 1,098 983
----- ---
Total current assets 33,468 18,982
------ ------
PROPERTY, PLANT AND EQUIPMENT 48,431 35,347
Less: accumulated depreciation 25,974 23,993
------ ------
22,457 11,354
------ ------
DEFERRED INCOME TAXES - 106
--- ---
OTHER ASSETS 202 1,022
--- -----
TOTAL ASSETS $56,127 $31,464
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Equipment line of credit $1,591 $1,675
Current portion of long-term debt 1,833 2,376
Trade accounts payable 6,828 3,485
Employee compensation and amounts withheld 1,185 1,112
Accrued expenses 1,819 361
Customer advances 1,028 262
----- ---
Total current liabilities 14,284 9,271
------ -----
LONG-TERM DEBT, less current portion 12,154 4,828
------ -----
PENSION LIABILITIES 1,448 1,698
----- -----
DEFERRED INCOME TAXES 4,475 -
----- ---
SHAREHOLDERS' EQUITY:
Common stock 12 12
Additional paid-in capital 11,225 10,935
Retained earnings 14,785 7,159
Accumulated other comprehensive loss (2,256) (2,439)
------ ------
Total shareholders' equity 23,766 15,667
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $56,127 $31,464
======= =======
MikeDDKing
15 years ago
EDAC Technologies Corporation Names Lee K. Barba to Board of Directors
prnewswire
On Friday January 8, 2010, 11:35 am EST
FARMINGTON, Conn., Jan. 8 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, announced that Lee K. Barba has been named to the Company's Board of Directors, effective January 7, 2010. The appointment of Mr. Barba increases the size of the Board from six to seven members.
From 2000 to 2009, Mr. Barba, age 59, was Chairman and Chief Executive Officer of thinkorswim Group Inc., a leading online brokerage and investor education firm, which he built through acquisitions prior to its sale to TD AMERITRADE. Prior to that, he was President of Coral Energy L.P., a joint venture of Shell Oil Company focused on deregulated energy markets. Mr. Barba spent eight years in a variety of executive positions with Bankers Trust, including Chief Operating Officer of the Global Investment Bank, and began his career in the brokerage and investment banking industry.
EDAC's Chairman, Daniel C. Tracy, commented, "Lee Barba is an important addition to our Board. He has a track record of building successful businesses, and an appreciation for entrepreneurship and innovation. We welcome his experience and perspective, as we continue our efforts to grow EDAC and achieve the Company's full potential."
Mr. Barba said, "EDAC is fully focused on executing its growth strategy. The Company's ability to satisfy the demands of global customers for high quality engineered products will allow them to capture significant opportunities in their market. I look forward to joining with the Board and management team in their efforts to build shareholder value."
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets. In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines. Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.
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.
CONTACTS:
Glenn L. Purple
Vice President-Finance
860-677-2603
Edward Nebb
Comm-Counsellors, LLC
203-972-8350
MikeDDKing
15 years ago
EDAC Technologies Reports Third Quarter Results
On 5:37 pm EDT, Tuesday October 27, 2009
FARMINGTON, Conn., Oct. 27 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of jet engine components, tools, fixtures, injection molds and spindles, today reported results for the third quarter of 2009.
Sales for the third quarter of 2009 were $15,132,000 and net income was $80,000 or $0.02 per diluted share, versus sales of $10,547,000 and net income of $255,000 or $0.05 per diluted share for the third quarter of 2008.
For the nine months ended October 3, 2009, sales were $38,345,000 and net income was $7,513,000 or $1.53 per diluted share versus sales of $32,577,000 and net income of $1,418,000 or $0.28 per diluted share for the nine months ended September 27, 2008.
Dominick A. Pagano, President and Chief Executive Officer, said, "Our results include the operations of our EDAC Aero acquisition since May 27th. EDAC Aero contributed sales of $5,386,000 for the third quarter and $7,755,000 since the acquisition date. Among its domestic and international aerospace customers, EDAC Aero continues as a supplier to MTU Aero Engines in Germany. The third quarter was a challenging one for our other operations. Organically, our sales decreased by $1,514,000 from the second quarter of 2009 due to the down turn in the aerospace and machine tool product lines. Results were further impacted by costs associated with the development of new components for the JSF-135 and other emerging engine programs."
"We also acquired substantially all of the assets of Service Network Incorporated, a manufacturer and rebuilder of precision grinders, as previously announced on August 10th. The new product lines and technologies represent a strategic acquisition that will further broaden our Spindle product line."
As previously announced, EDAC acquired the assets of the manufacturing unit of MTU AENA, located in Newington, Connecticut on May 27, 2009. Operating now as EDAC Aero, the new operation primarily manufactures rotating components such as disks, rings and shafts for the aerospace industry. As prescribed by generally accepted accounting principles, the net assets acquired were recorded at fair value, which exceeded the purchase price by approximately $11,600,000 and has been reflected as a gain in other income in the financial statements.
Pagano added, "To date the EDAC Aero transaction has been accretive to our earnings per share and we fully expect that it will continue to be accretive. It is consistent with our long term strategic plan of incorporating growth through organic operations and acquisitions. The new product lines, customers and technologies have complemented our existing business, and will provide us with a platform to further leverage our assets and resources to enhance shareholder value."
"As always, our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company primarily offering (i) manufacturing and design 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 three months ended For the nine months ended
October 3, Sept. 27 October 3, Sept. 27
2009 2008 2009 2008
---- ---- ---- ----
Sales $15,132,120 $10,547,124 $38,344,712 $32,577,388
Cost of sales 13,370,287 9,161,877 33,806,646 27,276,156
---------- --------- ---------- ----------
Gross profit 1,761,833 1,385,247 4,538,066 5,301,232
Selling, general and
administrative
expenses 1,305,763 842,868 3,347,624 2,676,232
--------- ------- --------- ---------
Income from
operations 456,070 542,379 1,190,442 2,625,000
Non-operating income
(expense):
Interest expense (262,388) (158,885) (592,813) (478,510)
Other income (73,431) 8,425 11,673,022 62,354
------- ----- ---------- ------
Income before
income taxes 120,251 391,919 12,270,651 2,208,844
Provision for income
taxes 39,803 137,000 4,757,627 791,000
------ ------- --------- -------
Net income $80,448 $254,919 $7,513,024 $1,417,844
======= ======== ========== ==========
Income per common share
data:
Basic income per share $0.02 $0.05 $1.56 $0.30
===== ===== ===== =====
Diluted income per share $0.02 $0.05 $1.53 $0.28
===== ===== ===== =====
Weighted average shares
outstanding:
Basic 4,837,803 4,746,137 4,830,803 4,693,020
Diluted 5,010,661 5,139,922 4,915,047 5,152,739
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
October 3, January 3,
2009 2009
---- ----
ASSETS
------
CURRENT ASSETS:
Cash $851,475 $1,311,092
Accounts receivable, net 11,380,063 7,931,550
Inventories, net 20,406,862 7,961,788
Prepaid expenses and other current assets 357,049 107,333
Refundable income taxes - 686,708
Deferred income taxes 918,567 983,298
------- -------
Total current assets 33,914,016 18,981,769
---------- ----------
PROPERTY, PLANT AND EQUIPMENT 48,359,259 35,347,124
Less: accumulated depreciation 25,498,519 23,992,878
---------- ----------
22,860,740 11,354,246
---------- ----------
DEFERRED INCOME TAXES - 105,971
--- -------
OTHER ASSETS 228,921 1,021,638
------- ---------
TOTAL ASSETS $57,003,677 $31,463,624
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Lines of credit $1,891,190 $1,674,990
Current portion of long-term debt 2,135,023 2,376,018
Trade accounts payable 7,274,442 3,485,192
Employee compensation and amounts withheld 1,726,089 1,112,006
Accrued expenses 1,216,434 361,252
Customer advances 685,901 261,643
------- -------
Total current liabilities 14,929,079 9,271,101
---------- ---------
LONG-TERM DEBT, less current portion 12,060,592 4,827,697
---------- ---------
OTHER LONG-TERM LIABILITIES 1,698,233 1,698,233
--------- ---------
DEFERRED INCOME TAXES 4,411,868 -
--------- ---
SHAREHOLDERS' EQUITY:
Common stock 12,095 12,063
Additional paid-in capital 11,118,990 10,934,736
Retained earnings 14,671,626 7,158,600
Accumulated other comprehensive loss 2,438,806 2,438,806
--------- ---------
Total shareholders' equity 23,363,905 15,666,593
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $57,003,677 $31,463,624
=========== ===========
Contact: Glenn L. Purple, Vice President-Finance, 860-677-2603
MikeDDKing
15 years ago
EDAC Technologies Reports Second Quarter Results
On Wednesday July 29, 2009, 7:57 pm EDT
FARMINGTON, Conn., July 29 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of jet engine components, tools, fixtures, injection molds and spindles, today reported results for the second quarter of 2009.
Sales for the second quarter of 2009 were $13,629,000 and net income was $7,376,000 or $1.50 per diluted share, versus sales of $10,849,000 and net income of $533,000 or $0.11 per diluted share for the second quarter of 2008.
For the six months ended July 4, 2009, sales were $23,213,000 and net income was $7,433,000 or $1.52 per diluted share versus sales of $22,030,000 and net income of $1,163,000 or $0.23 per diluted share for the six months ended June 28, 2008.
As previously announced, EDAC acquired the assets of the manufacturing unit of MTU AENA, located in Newington, Connecticut on May 27, 2009. Operating now as EDAC Aero, the new operation primarily manufactures rotating components such as disks, rings and shafts for the aerospace industry. As prescribed by generally accepted accounting principles, the net assets acquired were recorded at fair value, which exceeded the purchase price by approximately $11,700,000. This difference has been recorded primarily as property, plant and equipment and other income in the financial statements.
Dominick A. Pagano, President and Chief Executive Officer, said, "Our results include the operations of our newest acquisition, EDAC Aero, since May 27th. EDAC Aero contributed sales of $2,369,000 for the period and contributed to EDAC's operating income. Among its domestic and international aerospace customers, EDAC Aero continues as a supplier to MTU Aero Engines in Germany. Organically, our sales increased by $1,676,000 over the first quarter of 2009 and by $411,000 over the second quarter of 2008."
Pagano added, "We expect the EDAC Aero transaction to be accretive to our earnings per share and is consistent with our long term strategic plan of incorporating growth through organic operations and acquisitions. The new product lines, customers and technologies will complement our existing business, and will provide us with a platform to further leverage our assets and resources to further enhance shareholder value. Our balance sheet is strong and our shareholders' equity is $23,228,000 at July 4, 2009.
As always, our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."
About EDAC Technologies Corporation
EDAC Technologies Corporation is a diversified manufacturing company primarily offering (i) manufacturing and design 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.
Contact: Glenn L. Purple, Vice President-Finance 860-677-2603
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the three months ended For the six months ended
July 4, June 28, July 4, June 28,
2009 2008 2009 2008
Sales $13,628,817 $10,849,161 $23,212,592 $22,030,264
Cost of sales 11,933,020 9,019,185 20,436,359 18,114,279
Gross profit 1,695,797 1,829,976 2,776,233 3,915,985
Selling, general and
administrative expenses 1,180,605 864,244 2,041,861 1,833,364
Income from operations 515,192 965,732 734,372 2,082,621
Non-operating income
(expense):
Interest expense (190,583) (155,048) (330,425) (319,625)
Other income 11,739,578 9,374 11,746,453 53,929
Income before income
taxes 12,064,187 820,058 12,150,400 1,816,925
Provision for income
taxes 4,688,024 287,000 4,717,824 654,000
Net income $7,376,163 $533,058 $7,432,576 $1,162,925
Income per common share
data:
Basic income per share $1.53 $0.11 $1.54 $0.25
Diluted income per share $1.50 $0.11 $1.52 $0.23
Weighted average shares
outstanding:
Basic 4,829,678 4,666,970 4,827,803 4,658,946
Diluted 4,918,711 4,956,739 4,892,184 4,970,310
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
July 4, January 3,
2009 2009
ASSETS
CURRENT ASSETS:
Cash $308,484 $1,311,092
Accounts receivable, net 13,059,271 7,931,550
Inventories, net 18,191,098 7,961,788
Prepaid expenses and other current
assets 383,066 107,333
Refundable income taxes 111,883 686,708
Deferred income taxes 918,567 983,298
Total current assets 32,972,369 18,981,769
PROPERTY, PLANT AND EQUIPMENT 47,640,684 35,347,124
Less: accumulated depreciation 24,861,164 23,992,878
22,779,520 11,354,246
DEFERRED INCOME TAXES - 105,971
OTHER ASSETS 2,307,682 1,021,638
TOTAL ASSETS $58,059,571 $31,463,624
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $3,258,490 $1,674,990
Current portion of long-term debt 2,434,928 2,376,018
Trade accounts payable 6,433,669 3,485,192
Employee compensation and amounts
withheld 1,586,690 1,112,006
Accrued expenses 1,526,851 361,252
Customer advances 438,530 261,643
Total current liabilities 15,679,158 9,271,101
LONG-TERM DEBT, less current portion 13,042,605 4,827,697
OTHER LONG-TERM LIABILITIES 1,698,233 1,698,233
DEFERRED INCOME TAXES 4,411,868 -
SHAREHOLDERS' EQUITY:
Common stock 12,095 12,063
Additional paid-in capital 11,063,241 10,934,736
Retained earnings 14,591,177 7,158,600
Accumulated other comprehensive loss (2,438,806) (2,438,806)
Total shareholders' equity 23,227,707 15,666,593
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $58,059,571 $31,463,624
MikeDDKing
16 years ago
EDAC Technologies Reports First Quarter Results
On Tuesday April 28, 2009, 4:10 pm EDT
FARMINGTON, Conn., April 28 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the first quarter of 2009.
Sales for the first quarter of 2009 were $9,584,000 and net income was $56,000 or $0.01 per diluted share, versus sales of $11,181,000 and net income of $630,000 or $0.13 per diluted share for the first quarter of 2008.
Dominick A. Pagano, President and Chief Executive Officer, said, "Market and general economic conditions during Q3 and Q4 2008 continued to impact our results in the first quarter. Production delays in Boeing's 787 program and delivery delays in its 777 program caused by its machinists' strike last year continue to impact our shipments. Our aerospace customers made further changes to our delivery schedules. Sales decreased $1,497,000 for aerospace customers and $100,000 for non-aerospace customers in the first quarter of 2009 compared to the first quarter of 2008. While our first quarter sales to the aerospace market decreased by $377,000 from the fourth quarter of 2008, we believe based on our customers' current schedules that sales to the aerospace market for the second quarter of 2009 will improve over the first quarter of 2009.
"While our relentless focus on cost reductions reduced the impact of the sales decline on our profit for the quarter, the profit was further impacted by approximately $120,000 expensed on the product development and engineering of new parts for the aerospace industry.
"Total company backlog increased from $52.4 million at the end of fiscal 2008 to $53.4 million at April 4, 2009, reflecting a net increase of $1.0 million in our Aerospace product line.
"We plan to invest in excess of $4 million in new machinery and equipment in 2009 including the two large machines currently on order, to increase our capabilities and capacity and improve productivity in the aerospace product line.
"I reaffirm what I said last quarter, 'We have and will continue to be proactive in attempting to minimize the impact of external forces by implementing aggressive cost controls and we fully anticipate that the aerospace market will be strong in the long-term. Our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders.' "
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 4, March 29,
2009 2008
---- ----
Sales $9,583,775 $11,181,103
Cost of Sales 8,503,339 9,095,094
--------- ---------
Gross Profit 1,080,436 2,086,009
Selling, General and
Administrative Expenses 861,256 969,120
------- ---------
Income From Operations 219,180 1,116,889
Non-Operating Income (Expense):
Interest Expense (139,842) (164,577)
Other 6,875 44,555
----- ------
Income Before Income Taxes 86,213 996,867
Provision for Income Taxes 29,800 367,000
------ -------
Net Income $56,413 $629,867
====== =======
Income per common share data:
Basic income per share $0.01 $0.14
===== =====
Diluted income per share $0.01 $0.13
===== =====
Weighted average shares
outstanding:
Basic 4,825,303 4,652,928
Diluted 4,861,617 4,976,915
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
April 4, January 3,
2009 2009
---- ----
ASSETS
------
CURRENT ASSETS:
Cash $657,791 $1,311,092
Accounts receivable, net 7,107,831 7,931,550
Inventories, net 9,130,132 7,961,788
Prepaid expenses and other
current assets 227,200 107,333
Refundable income taxes 161,708 686,708
Deferred income taxes 983,298 983,298
------- -------
Total current assets 18,267,960 18,981,769
---------- ----------
PROPERTY, PLANT AND EQUIPMENT 35,423,794 35,347,124
Less: accumulated
depreciation 24,329,100 23,992,878
---------- ----------
11,094,694 11,354,246
---------- ----------
DEFERRED INCOME TAXES 95,971 105,971
------ -------
OTHER ASSETS 1,791,927 1,021,638
--------- ---------
TOTAL ASSETS $31,250,552 $31,463,624
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Equipment line of credit $2,448,490 $1,674,990
Current portion of
long-term debt 2,110,318 2,376,018
Trade accounts payable 2,816,566 3,485,192
Employee compensation
and amounts withheld 1,264,594 1,112,006
Accrued expenses 341,646 361,252
Customer advances 289,747 261,643
------- -------
Total current liabilities 9,271,361 9,271,101
--------- ---------
LONG-TERM DEBT,
less current portion 4,503,139 4,827,697
--------- ---------
OTHER LONG-TERM LIABILITIES 1,698,233 1,698,233
--------- ---------
SHAREHOLDERS' EQUITY:
Common stock 12,063 12,063
Additional paid-in capital 10,989,549 10,934,736
Retained earnings 7,215,013 7,158,600
Accumulated other
comprehensive loss (2,438,806) (2,438,806)
--------- ---------
Total shareholders'
equity 15,777,819 15,666,593
---------- ----------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $31,250,552 $31,463,624
---------- ----------
Contact: Glenn L. Purple, Vice President-Finance, 860-677-2603
MikeDDKing
16 years ago
EDAC Technologies Reports Fourth Quarter and Full Year Results
Tuesday March 3, 4:47 pm ET
FARMINGTON, Conn., March 3 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the fourth quarter and the fiscal year of 2008.
Sales for the fourth quarter of 2008 were $12,099,000 and net loss was $(279,000) or $(0.06) per diluted share, versus sales of $12,710,000 and net income of $984,000 or $0.20 per diluted share for the fourth quarter of 2007.
For the year ended January 3, 2009, sales were $44,677,000 and net income was $1,138,000 or $0.23 per diluted share versus sales of $50,019,000 and net income of $3,449,000 or $0.70 per diluted share for the year ended December 29, 2007.
Dominick A. Pagano, President and Chief Executive Officer, said, "As expected, conditions in the aerospace market and the economy in general deteriorated further in the fourth quarter. Production delays in Boeing's 787 program and delivery delays in its 777 program caused by its machinists' strike reduced our fourth quarter shipments. Our aerospace customers continue to make changes to our delivery schedules. Our Apex Machine Tool product line committed certain resources to the process development and production of a large order from a customer in a new energy market that shipped late in the fourth quarter. While the shipment of this order significantly increased our fourth quarter's sales over the third quarter, the experimental nature of the production process and tooling of this order caused significant cost overruns that could not be recovered from the customer. We absorbed these additional costs totaling $334,000 in the fourth quarter. With the new production process and tooling, the customer, as it has indicated, will have a future demand for these new parts.
Total company backlog increased from $30.1 million at the end of fiscal 2007 to $52.4 million at January 3, 2009, of which approximately $18 million was from a new aerospace customer with deliveries scheduled from 2009 through 2012.
For the year we have invested $837,000 in plant, machinery and equipment and paid deposits of $981,000 on two large machines costing $2.3 million. For 2009 we plan on investing in excess of $4 million in new machinery and equipment including the two large machines currently on order, to increase our capabilities and capacity and improve productivity in the aerospace product line."
Pagano added, "We have and will continue to be proactive in attempting to minimize the impact of external forces, by implementing aggressive cost controls, and fully anticipate that the aerospace market will be strong in the long-term. Our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."
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 For the twelve months
ended ended
Jan. 3, Dec. 29, Jan. 3, Dec. 29,
2009 2007 2009 2007
Sales $12,099,280 $12,710,482 $44,676,668 $50,018,584
Cost of sales 11,528,800 10,034,056 38,804,956 40,035,308
Gross profit 570,480 2,676,426 5,871,712 9,983,276
Selling, general and
administrative
expenses 815,588 1,044,069 3,491,820 3,922,027
(Loss) income from
operations (245,108) 1,632,357 2,379,892 6,061,249
Non-operating
income (expense):
Interest expense (152,403) (177,422) (630,913) (721,235)
Other income 10,311 31,358 72,665 60,570
(Loss) income before
income taxes (387,200) 1,486,293 1,821,644 5,400,584
(Benefit from)
provision for
income taxes (107,714) 502,514 683,286 1,951,514
Net (loss) income $(279,486) $983,779 $1,138,358 $3,449,070
(Loss) income per
common share
data:
Basic (loss) income
per share ($0.06) $0.21 $0.24 $0.75
Diluted (loss)
income per share ($0.06) $0.20 $0.23 $0.70
Weighted average
shares outstanding:
Basic 4,825,303 4,624,403 4,723,547 4,584,913
Diluted 4,904,911 4,979,532 5,037,620 4,943,291
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
January 3, December 29,
2009 2007
ASSETS
CURRENT ASSETS:
Cash $1,311,092 $3,286,203
Accounts receivable, net 7,931,550 7,638,573
Inventories, net 7,961,788 6,598,111
Prepaid expenses and other
current assets 107,333 51,339
Refundable income taxes 686,708 284,577
Deferred income taxes 983,298 933,124
Total current assets 18,981,769 18,791,927
PROPERTY, PLANT AND EQUIPMENT 35,347,124 34,869,219
Less: accumulated depreciation 23,992,878 22,390,417
11,354,246 12,478,802
DEFERRED INCOME TAXES 105,971 -
OTHER ASSETS 1,021,638 492,051
TOTAL ASSETS $31,463,624 $31,762,780
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Equipment line of credit $1,674,990 $-
Current portion of long-term debt 2,376,018 2,285,704
Trade accounts payable 3,485,192 4,021,827
Employee compensation and
amounts withheld 1,112,006 1,800,390
Accrued expenses 361,252 395,950
Customer advances 261,643 424,439
Total current liabilities 9,271,101 8,928,310
LONG-TERM DEBT, less current portion 4,827,697 7,204,769
OTHER LONG-TERM LIABILITIES 1,698,233 -
DEFERRED INCOME TAXES - 448,660
SHAREHOLDERS' EQUITY:
Common stock 12,063 11,591
Additional paid-in capital 10,934,736 10,245,877
Retained earnings 7,158,600 6,020,242
Accumulated other comprehensive
loss (2,438,806) (1,096,669)
Total shareholders' equity 15,666,593 15,181,041
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $31,463,624 $31,762,780
Contact: Glenn L. Purple, Vice President-Finance, 860-677-2603
--------------------------------------------------------------------------------
Source: EDAC Technologies Corporation
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