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.
(Financial Tables Follow)
|
|
EDAC TECHNOLOGIES
CORPORATION
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
UNAUDITED
|
|
(in thousands except per share
amounts)
|
|
|
|
|
|
|
|
|
For the
three months ended
|
|
For the nine
months ended
|
|
|
|
October
1,
|
|
October
2,
|
|
October
1,
|
|
October
2,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$ 21,841
|
|
$ 18,528
|
|
$ 63,920
|
|
$ 55,156
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
17,964
|
|
16,760
|
|
53,603
|
|
48,989
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,877
|
|
1,768
|
|
10,317
|
|
6,167
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
2,116
|
|
1,393
|
|
5,964
|
|
4,653
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
1,761
|
|
375
|
|
4,353
|
|
1,514
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(252)
|
|
(259)
|
|
(785)
|
|
(711)
|
|
Other
income
|
|
-
|
|
2
|
|
8
|
|
362
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
1,509
|
|
118
|
|
3,576
|
|
1,165
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
497
|
|
34
|
|
1,179
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 1,012
|
|
$ 84
|
|
$ 2,397
|
|
$788
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share
data:
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$0.20
|
|
$0.02
|
|
$0.49
|
|
$0.16
|
|
Diluted income per
share
|
|
$0.19
|
|
$0.02
|
|
$0.46
|
|
$0,16
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
4,968
|
|
4,869
|
|
4,936
|
|
4,856
|
|
Diluted
|
|
5,303
|
|
5,055
|
|
5,169
|
|
5,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDAC TECHNOLOGIES
CORPORATION
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
(in thousands)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
October
1,
2011
|
|
January
1,
2011
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash
|
|
$ 1,680
|
|
$ 975
|
|
Accounts
receivable, net
|
17,064
|
|
14,955
|
|
Inventories,
net
|
|
20,864
|
|
20,219
|
|
Prepaid expenses
and other current assets
|
|
417
|
|
184
|
|
Refundable income
taxes
|
|
2
|
|
80
|
|
Deferred income
taxes
|
|
1,613
|
|
1,613
|
|
Total current
assets
|
|
41,640
|
|
38,026
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT
|
|
53,990
|
|
51,818
|
|
Less: accumulated
depreciation
|
|
30,676
|
|
28,595
|
|
|
|
23,314
|
|
23,223
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
128
|
|
155
|
|
TOTAL ASSETS
|
|
$65,082
|
|
$61,404
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Lines of
credit
|
|
$ 3,263
|
|
$ 4,793
|
|
Current portion of
long-term debt
|
|
2,518
|
|
4,370
|
|
Trade accounts
payable
|
|
7,114
|
|
7,336
|
|
Employee
compensation and amounts withheld
|
|
2,798
|
|
1,212
|
|
Accrued
expenses
|
|
2,306
|
|
2,136
|
|
Customer
advances
|
|
660
|
|
857
|
|
Total current
liabilities
|
|
18,659
|
|
20,704
|
|
|
|
|
|
|
|
LONG-TERM DEBT, less current
portion
|
|
12,728
|
|
9,858
|
|
|
|
|
|
|
|
PENSION LIABILITIES
|
|
1,526
|
|
1,526
|
|
|
|
|
|
|
|
DEFERRED INCOME TAXES
|
|
4,419
|
|
4,473
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
Common
stock
|
|
12
|
|
12
|
|
Additional paid-in
capital
|
|
12,211
|
|
11,690
|
|
Retained
earnings
|
|
18,027
|
|
15,630
|
|
Accumulated other
comprehensive loss
|
(2,500)
|
|
(2,489)
|
|
Total shareholders' equity
|
|
27,750
|
|
24,843
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
$65,082
|
|
$61,404
|
|
|
|
|
|
|
|
|
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