FARMINGTON, Conn., Nov. 7 /PRNewswire-FirstCall/ -- EDAC
Technologies Corporation (OTC:EDAC) (BULLETIN BOARD: EDAC) , a
designer and manufacturer of tools, fixtures, jet engine
components, injection molds and spindles, today reported results
for the third quarter of 2005. Sales for the third quarter of 2005
were $8,688,000 and net income was $390,000 or $0.08 per diluted
share, versus sales of $7,542,000 and net income of $298,000 or
$0.06 per diluted share for the third quarter of 2004. The third
quarter of 2004 included an income tax benefit of $281,000. Income
before income taxes increased from $16,000 in the third quarter of
2004 to $496,000 in the third quarter of 2005. For the nine months
ended October 1, 2005, sales were $25,603,000 and net income was
$2,668,000 or $0.56 per diluted share versus sales of $23,616,000
and net income of $850,000 or $0.18 per diluted share for the nine
months ended October 2, 2004. The nine months ended October 1, 2005
included an income tax benefit of $420,000 and debt forgiveness of
$750,000. The nine months ended October 2, 2004 included an income
tax benefit of $264,000 and debt forgiveness of $250,000.
Commenting on the third quarter, Dominick A. Pagano, President and
Chief Executive Officer, said, "Our third quarter results have
improved significantly over the 3rd quarter of 2004. Sales
increased $1,145,000, while our operating profit increased $480,000
compared to the 3rd quarter of 2004. Sales backlog increased to
$22.1 million, an increase by $389,000 for the quarter and $3.8
million for the 9 months. We have taken delivery of over $1.7
million of new machinery and equipment this year to increase our
production capacity and improve our productivity. Our balance sheet
continues to improve with shareholders' equity increasing by
$2,706,000 and long-term debt and outstanding borrowings on lines
of credit decreasing by $1,384,000 since January 1, 2005. We will
continue to pursue opportunities that we believe will strengthen
EDAC for the long term." About EDAC Technologies Corporation EDAC
Technologies Corporation is a diversified manufacturing company
primarily offering (i) design and manufacturing services for the
aerospace industry in such areas as jet engine parts, special
tooling, equipment, gauges and components used in the manufacture,
assembly and inspection of jet engines (ii) high-precision
fixtures, gauges, dies and molds and (iii) the design, manufacture
and repair of precision spindles, which are an integral part of
numerous machine tools found in virtually every manufacturing
environment. Cautionary Statement Regarding Forward Looking
Statements - This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company uses words such as "plans," seeks,"
"projects," "expects," "believes," "may," "anticipates,"
"estimates," "should," and similar expressions to identify these
forward looking statements. These statements are subject to risks
and uncertainties and are based upon the Company's beliefs and
assumptions. There are a number of important factors that may
affect the Company's actual performance and results and the
accuracy of its forward-looking statements, many of which are
beyond the control of the Company and are difficult to predict.
These important factors include, without limitation, factors which
could affect demand for the Company's products and services such as
general economic conditions and economic conditions in the
aerospace industry and the other industries in which the Company
competes; competition from the Company's competitors; and the
Company's ability to enter into satisfactory financing
arrangements. These and other factors are described in the
Company's annual and quarterly reports filed from time to time with
the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the Company's expectations and beliefs as of the date of this
release. The Company anticipates that subsequent events and
developments may cause these expectations and beliefs to change.
However, while the Company may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation or intention to do so. EDAC
TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS For the three months ended For the nine months ended
October 1, October 2, October 1, October 2, 2005 2004 2005 2004
Sales $8,687,688 $7,542,469 $25,603,200 $23,615,853 Cost of sales
7,213,060 6,764,848 21,245,563 20,923,863 Gross profit 1,474,628
777,621 4,357,637 2,691,990 Selling, general and administrative
expenses 825,480 608,481 2,398,262 1,880,767 Income from operations
649,148 169,140 1,959,375 811,223 Non-operating income (expense):
Gain on debt forgiveness - - 750,000 250,000 Interest expense
(156,082) (152,684) (477,473) (474,998) Other 2,739 - 16,385 -
Income before income taxes 495,805 16,456 2,248,287 586,225
Provision for (Benefit from) income taxes 106,000 (281,154)
(420,000) (264,154) Net income $389,805 $297,610 $2,668,287
$850,379 Income per common share data: Basic $0.09 $0.07 $0.60
$0.19 Diluted $0.08 $0.06 $0.56 $0.18 Weighted average shares
outstanding: Basic 4,503,920 4,444,438 4,481,923 4,444,438 Diluted
4,822,287 4,661,848 4,773,006 4,638,506 EDAC TECHNOLOGIES
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Audited) October 1, January 1, 2005 2005 ASSETS CURRENT ASSETS:
Cash $1,665,600 $549,198 Accounts receivable, net 5,498,269
6,573,114 Inventories, net 5,192,202 4,454,937 Prepaid expenses and
other current assets 293,500 57,290 Refundable income taxes -
330,869 Deferred income taxes 469,135 733,583 Total current assets
13,118,706 12,698,991 PROPERTY, PLANT AND EQUIPMENT 27,513,193
25,877,359 Less: accumulated depreciation 18,574,544 17,297,856
8,938,649 8,579,503 DEFERRED INCOME TAXES 1,930,865 766,417 OTHER
103,202 102,183 TOTAL ASSETS $24,091,422 $22,147,094 LIABILITIES
AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Revolving line of
credit $- $580,555 Current portion of long-term debt 1,274,849
1,030,282 Trade accounts payable 3,812,552 3,249,892 Employee
compensation and amounts withheld 1,386,281 1,228,975 Accrued
expenses 648,937 502,450 Customer advances 118,880 363,745 Total
current liabilities 7,241,499 6,955,899 LONG-TERM DEBT, less
current portion 7,517,212 8,564,927 OTHER LONG-TERM LIABILITIES
1,423,054 1,423,054 SHAREHOLDERS' EQUITY: Common stock 11,261
11,111 Additional paid-in capital 9,415,349 9,377,508 Retained
earnings/(accumulated deficit) 386,243 (2,282,044) Accumulated
other comprehensive loss (1,903,196) (1,903,196) Treasury stock -
(165) Total shareholders' equity 7,909,657 5,203,214 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $24,091,422 $22,147,094 For
further information, please contact: Glenn L. Purple Vice
President-Finance Tel: (860) 677-2603 DATASOURCE: EDAC Technologies
Corporation CONTACT: Glenn L. Purple, Vice President-Finance of
EDAC Technologies Corporation, +1-860-677-2603 Web site:
http://www.edactechnologies.com/
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