FARMINGTON, Conn., Oct. 31 /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 2006. Sales for the third quarter of 2006
were $8,178,000 and net income was $171,000 or $0.04 per diluted
share, versus sales of $8,688,000 and net income of $390,000 or
$0.08 per diluted share for the third quarter of 2005. For the nine
months ended September 30, 2006, sales were $27,355,000 and net
income was $878,000 or $0.18 per diluted share versus sales of
$25,603,000 and net income of $2,668,000 or $0.56 per diluted share
for the nine months ended October 1, 2005. The nine months ended
October 1, 2005 included an income tax benefit of $900,000 and debt
forgiveness of $750,000. In addition, selling, general and
administrative expenses for the nine months ended September 30,
2006 include $342,000 of costs which were not incurred in the nine
months ended October 1, 2005 and consisted primarily of plant
reconditioning and moving expenses, professional fees and bonuses.
Dominick A. Pagano, President and Chief Executive Officer, said,
"While sales for the Precision Aerospace and Spindle product lines
met or exceeded our expectations, the third quarter reduction in
income was a direct result of the significant drop of sales to a
major consumer products customer in the Apex Machine Tool product
line. Based on this customer's lower forecasted requirements for
2006, we generated new clients to replace approximately 33% of
their sales, but the actual reduction turned out to be nearly 60%.
We anticipate that as a result of a planned diversification
initiative, demand from new Apex customers will grow in the fourth
quarter and beyond. At September 30, 2006 the Apex backlog was $6.2
million compared to $4.1 million at the end of the second quarter."
"Sales increased $4,282,000 or 64% for the nine months ended
September 30, 2006 compared to the nine months ended October 1,
2005 for the Precision Aerospace product line. Sales backlog for
the Precision Aerospace product line has increased from $15.7
million at December 31, 2005 to $24.5 million at the end of the
third quarter. For the 4th quarter of 2006, we expect continued
strengthening in the Precision Aerospace product line. Year to date
we have invested over $3 million in new machinery and equipment,
including $1.2 million during the third quarter, to further
increase the capacity and productivity of our Precision Aerospace
product line. We plan to continue expanding our aerospace business
and pursuing other 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 September 30, October 1, September 30, October 1, 2006 2005
2006 2005 Sales $8,178,356 $8,687,688 $27,354,709 $25,603,200 Cost
of sales 7,071,446 7,213,060 22,858,403 21,245,563 Gross profit
1,106,910 1,474,628 4,496,306 4,357,637 Selling, general and
administrative expenses 681,405 825,480 2,665,548 2,398,262 Income
from operations 425,505 649,148 1,830,758 1,959,375 Non-operating
income (expense): Interest expense (167,069) (156,082) (485,544)
(477,473) Gain on debt forgiveness - - - 750,000 Other income
17,619 2,739 73,641 16,385 Income before income taxes 276,055
495,805 1,418,855 2,248,287 Provision for (benefit from) income
taxes 105,000 106,000 541,000 (420,000) Net income $171,055
$389,805 $877,855 $2,668,287 Income per common share data: Basic
income per share $0.04 $0.09 $0.19 $0.60 Diluted income per share
$0.04 $0.08 $0.18 $0.56 Weighted average shares outstanding: Basic
4,518,437 4,503,920 4,513,354 4,481,923 Diluted 4,784,457 4,822,287
4,791,205 4,773,006 EDAC TECHNOLOGIES CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) September 30,
December 31, 2006 2005 ASSETS CURRENT ASSETS: Cash $1,786,930
$2,468,964 Accounts receivable 5,714,351 5,587,305 Inventories, net
7,043,119 4,296,839 Prepaid expenses and other current assets
184,151 81,210 Refundable income taxes - 54,984 Deferred income
taxes 677,864 769,864 Total current assets 15,406,415 13,259,166
PROPERTY, PLANT AND EQUIPMENT 30,662,509 27,829,014 Less:
accumulated depreciation 20,114,674 18,861,156 10,547,835 8,967,858
DEFERRED INCOME TAXES 1,440,989 1,440,989 OTHER ASSETS 93,456
108,833 TOTAL ASSETS $27,488,695 $23,776,846 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of
long-term debt $ 1,679,018 $ 1,404,053 Trade accounts payable
5,695,222 2,427,866 Employee compensation and amounts withheld
1,408,935 1,397,897 Accrued expenses 308,802 706,861 Customer
advances 63,337 284,671 Total current liabilities 9,155,314
6,221,348 LONG-TERM DEBT, less current portion 7,653,813 7,791,530
OTHER LONG-TERM LIABILITIES 965,823 965,823 SHAREHOLDERS' EQUITY:
Common stock 11,296 11,261 Additional paid-in capital 9,490,235
9,452,525 Retained earnings 1,894,639 1,016,784 Accumulated other
comprehensive loss (1,682,425) (1,682,425) Total shareholders'
equity 9,713,745 8,798,145 TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $27,488,695 $23,776,846 Contact: Glenn L. Purple Vice
President-Finance 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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