FARMINGTON, Conn., July 29 /PRNewswire-FirstCall/ -- EDAC
Technologies Corporation (NASDAQ:EDAC), 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
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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