EDAC Technologies Reports Third Consecutive Quarterly Profit
FARMINGTON, Conn., Nov. 2 /PRNewswire-FirstCall/ -- EDAC
Technologies Corporation (OTC:EDAC.OB) (BULLETIN BOARD: EDAC.OB) ,
a designer and manufacturer of tools, fixtures, jet engine
components, injection molds and spindles, today reported results
for the third quarter of 2004. Sales for the third quarter of 2004
were $7,542,000 and net income was $298,000 or $0.06 per diluted
share versus sales of $6,438,000 and a net loss of $52,000 or a
loss of $0.01 per diluted share for the third quarter of 2003. The
third quarter benefited from the determination of an income tax
refund of $331,000. For the nine months ended October 2, 2004,
sales were $23,616,000 and net income was $850,000 (including a
gain of $250,000 from debt forgiveness and the determination of an
income tax refund of $331,000) or $0.18 per diluted share versus
sales of $19,685,000 and net income of $6,686,000 or $1.49 per
diluted share for the nine months ended September 27, 2003. The
nine months ended September 27, 2003 benefited from a gain of
$7,253,000 from debt restructuring. Without the gain, the net loss
for the nine months ended September 27, 2003 would have been
$567,000 or a loss of $(0.13) per diluted share. Commenting on the
third quarter, Dominick A. Pagano, President and Chief Executive
Officer, said, "We are very pleased with the $1,105,000 increase in
sales for the 3rd quarter over the 3rd quarter of 2003 and the
$3,931,000 increase for the nine months over the 9 months of 2003.
Our sales backlog of $21,100,000 at the end of the third quarter
represents increases of $1,300,000 in the third quarter and
$3,100,000 since the start of the fiscal year. Our operating profit
increased by $50,000 for the quarter as compared to the third
quarter of 2003, and $904,000 for the first nine months in the
current year compared with the first nine months of 2003. Since the
fourth quarter of 2001, this was the third consecutive quarter that
EDAC has generated a positive net income exclusive of gains on debt
restructuring. In September we reached a major milestone by making
the final of 18 monthly payments on a note resulting from the 2003
debt restructuring, thereby reducing our monthly debt service going
forward by $75,000. We remain optimistic about the 4th quarter and
the coming year and continue to pursue opportunities that will
strengthen EDAC for the long term." About EDAC Technologies
Corporation EDAC Technologies Corporation is a diversified
manufacturing company primarily offering (i) design and
manufacturing services for the aerospace industry in such areas as
jet engine parts, special tooling, equipment, gauges and components
used in the manufacture, assembly and inspection of jet engines
(ii) high-precision fixtures, gauges, dies and molds and (iii) the
design, manufacture and repair of precision spindles, which are an
integral part of numerous machine tools found in virtually every
manufacturing environment. Cautionary Statement Regarding Forward
Looking Statements -- This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The Company uses words such as "plans," seeks,"
"projects," "expects," "believes," "may," "anticipates,"
"estimates," "should," and similar expressions to identify these
forward looking statements. These statements are subject to risks
and uncertainties and are based upon the Company's beliefs and
assumptions. There are a number of important factors that may
affect the Company's actual performance and results and the
accuracy of its forward-looking statements, many of which are
beyond the control of the Company and are difficult to predict.
These important factors include, without limitation, factors which
could affect demand for the Company's products and services such as
general economic conditions and economic conditions in the
aerospace industry and the other industries in which the Company
competes; competition from the Company's competitors; and the
Company's ability to enter into satisfactory financing
arrangements. These and other factors are described in the
Company's annual and quarterly reports filed from time to time with
the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the Company's expectations and beliefs as of the date of this
release. The Company anticipates that subsequent events and
developments may cause these expectations and beliefs to change.
However, while the Company may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation or intention to do so. EDAC
TECHNOLOGIES CORPORATION Condensed Consolidated Statements of
Operations (Unaudited) For the three months ended For the nine
months ended October 2, Sept. 27, October 2, Sept. 27, 2004 2003
2004 2003 Sales $7,542,469 $6,437,696 $23,615,853 $19,684,841 Cost
of sales 6,764,848 5,655,411 20,923,863 17,640,983 Gross profit
777,621 782,285 2,691,990 2,043,858 Selling, general and and
administrative expenses 608,481 663,023 1,880,767 2,136,584 Income
(loss) from operations 169,140 119,262 811,223 (92,726)
Non-operating income (expense): Interest (152,684) (171,474)
(474,998) (518,407) Gain on debt forgiveness - - 250,000 - Gain on
debt restructuring - - - 7,253,203 Other - 500 - 43,713 Income
(loss) before income taxes 16,456 (51,712) 586,225 6,685,783
Benefit from income taxes 281,154 - 264,154 - Net income (loss)
$297,610 $ (51,712) $850,379 $6,685,783 Income (loss) per common
share data: Basic $0.07 $(0.01) $0.19 $1.51 Diluted $0.06 $(0.01)
$0.18 $1.49 Weighted average shares outstanding: Basic 4,444,438
4,425,270 4,444,438 4,419,011 Diluted 4,661,848 4,425,270 4,638,506
4,491,919 EDAC TECHNOLOGIES CORPORATION Condensed Consolidated
Balance Sheets October 2, January 3, 2004 2004 (Unaudited) (Note)
ASSETS CURRENT ASSETS: Cash $711,806 $94,151 Trade accounts
receivable, net 5,504,954 3,154,498 Inventories, net 4,558,271
4,611,253 Prepaid expenses and other 270,215 60,424 Refundable
income taxes 331,154 - TOTAL CURRENT ASSETS 11,376,400 7,920,326
PROPERTY, PLANT, AND EQUIPMENT 25,842,995 25,485,628
less-accumulated depreciation 16,921,660 15,542,501 8,921,335
9,943,127 OTHER ASSETS: Deferred income taxes 258,608 258,608 Other
60,588 43,751 $ 20,616,931 $ 18,165,812 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Revolving line of credit
$4,388,965 $2,550,832 Current portion of long-term debt 1,477,864
2,254,142 Trade accounts payable 3,635,924 2,098,415 Accrued
employee compensation and amounts withheld 988,339 972,630 Other
accrued expenses 371,551 412,201 Customer advances 354,581 77,138
Deferred income taxes 258,959 258,959 TOTAL CURRENT LIABILITIES
11,476,183 8,624,317 LONG-TERM DEBT, less current portion 4,420,064
5,671,190 OTHER LONG-TERM LIABILITIES 1,125,063 1,125,063
SHAREHOLDERS' EQUITY: Common stock, par value $.0025 per share;
10,000,000 shares authorized; 4,444,438 shares issued 11,111 11,111
Additional paid-in capital 9,377,508 9,377,508 Accumulated deficit
(4,293,630) (5,144,009) 5,094,989 4,244,610 Less: accumulated other
comprehensive loss 1,499,203 1,499,203 treasury stock, 235 shares
165 165 3,595,621 2,745,242 $20,616,931 $ 18,165,812 Note: The
balance sheet at January 3, 2004 has been derived from the audited
consolidated financial statements at that date. 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,
+1-860-677- 2603 Web site: http://www.edactechnologies.com/
Copyright
