FARMINGTON, Conn., March 7, 2012 /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 fourth quarter of fiscal 2011 reached a record $22.7 million, an increase of 27% from the fourth
quarter of fiscal 2010.
Net income for the 2011 fourth quarter increased to $1.2 million, or $0.21 per diluted share, a substantial increase
from $56,000, or $0.01 per diluted share, reported for the fourth
quarter of 2010.
For full year fiscal 2011, sales increased 19% to $86.6 million, while net income rose to
$3.6 million, or $0.68 per diluted share, compared with net income
of $845,000, or $0.17 per share, for fiscal 2010.
EDAC noted that each of its major product lines, EDAC AERO, APEX
Machine Tool and EDAC Machinery, contributed to its strong fourth
quarter and full year sales growth. The sharp increase in net
income versus the 2010 periods primarily reflected improved cost
absorption due to the increased sales level, higher production
efficiency with the continued implementation of lean manufacturing
practices, and more cost-effective manufacturing of certain
parts.
The following are the main factors that contributed to EDAC's
performance in the fourth quarter of 2011:
- Sales for the EDAC AERO product line were $15.2 million, an increase of 30% from the fourth
quarter of 2010. This year-over-year growth primarily reflected
expanding demand for stators, an increase in the number of
components the Company provides to a diverse group of aircraft
engine programs, and higher production quantities of certain parts
that had experienced development and qualification delays in the
second half of 2010.
- Sales for the APEX Machine Tool product line were $5.5 million in the fourth quarter of 2011, an
increase of 29% from the 2010 fourth quarter. The year-over-year
growth included increased shipments for a ground-based turbine
retrofit program and the benefit of ongoing efforts to move towards
the production of more complex parts for the power generation
sector.
- Sales for the EDAC Machinery product line were $2.1 million, an increase of 3% from the 2010
fourth quarter. The year-over-year growth reflected increased sales
of precision grinders, which more than offset lower sales of
spindle products.
- The gross profit for the fourth quarter of 2011 increased to
$4.1 million, or 17.9% of sales,
compared with $1.8 million, or 10.1%
of sales, in the fourth quarter of 2010. The substantial
improvement in the gross margin primarily reflected better cost
absorption due to the higher sales level, increased productivity
and efficiency company-wide, and more cost-effective manufacturing
of certain parts.
- SG&A expenses for the 2011 fourth quarter were $2.0 million, or 8.9% of sales, compared with
$1.6 million or 8.8% of sales in the
fourth quarter of 2010.
- Operating income for the fourth quarter of 2011 was a record
$2.0 million, up more than seven-fold
from the $242,000 reported in the
2010 fourth quarter.
For the twelve months of fiscal 2011, the gross profit increased
80% to $14.4 million compared with
2010, while gross profit as a percentage of sales for full year
2011 increased to 16.6% of sales from 10.9% of sales in 2010.
Income from operations was a record $6.4 million for 2011, up 264% from $1.8 million for full year 2010.
Backlog
Total sales backlog at December 31,
2011 was $252.1 million,
compared with $213.5 million at the
end of the 2011 third quarter and $138.3
million at year-end fiscal 2010. The higher backlog
partially reflects several multi-year agreements announced in 2011
to produce components for commercial and military aircraft engine
platforms as well as receipt of additional orders under existing
programs.
Summary and Outlook
"Our strong fourth quarter capped a year of important progress
for EDAC as measured by the substantial growth in our sales,
operating profitability and backlog," commented Dominick A. Pagano, EDAC's President and Chief
Executive Officer.
"To drive sales, we continued to leverage our core competency in
designing and manufacturing complex precision parts in each of our
product lines, while also expanding the number of parts we produce
for a full range of aircraft engine programs, including all
emerging programs. The improving economy along with the growing
order books of airplane manufacturers added favorable tailwinds
over the past year.
"To increase profitability, we remained focused on improving
production processes and efficiency across all product lines, while
continuing to migrate to lean manufacturing. We recently added a
vice president of lean manufacturing to accelerate that
process.
"Investing in our operations, including the addition of
state-of-the-art manufacturing equipment, has been a major factor
in both our sales growth and improving profitability. It also
has strengthened our ability to continue to win long-term
agreements with top-tier customers. In 2011, we won a total
of $92 million of new LTAs, which
contributed to our record backlog of $252
million at year end, nearly double the level at year-end
2010. To support both this higher level of business activity
and future opportunities, we recently announced our purchase of a
new facility to consolidate several of our manufacturing operations
and relieve current capacity constraints as well as give us a
larger, more flexible and more cost-efficient platform for
growth."
Mr. Pagano concluded: "We are focused on continuing to execute
our growth plan in fiscal 2012. Delivery of engine components
under some of our newer long-term agreements will begin to ramp up
at the end of the second quarter and then increasingly through the
year. As a result, while we expect first quarter 2012 sales
and profitability to show improvement over the first quarter of
2011, sequential sales growth is expected to be moderate and
consistent with normal customer demand trends in the quarter. For
full year 2012, we are targeting sales growth to meet or exceed the
aerospace industry's projected growth of 7% and we remain fully
focused on further strengthening the profitability of our
operations."
Conference Call and Webcast
The Company will host a conference call to review the above
results at 10:00 a.m. (Eastern Time)
today, March 7, 2012. 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.
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CONTACTS:
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EDAC Technologies
Corporation
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Glenn L. Purple
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Vice
President-Finance
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860-677-2603
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Comm-Counsellors, LLC
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Edward Nebb
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203-972-8350
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June Filingeri
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203-972-0186
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(Financial
Tables Follow)
EDAC TECHNOLOGIES
CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands except per share
amounts)
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For the
three months ended
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For the
twelve months ended
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December
31,
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January
1,
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December
31,
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January
1,
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2011
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2011
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2011
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2011
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Sales
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$ 22,713
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$ 17,902
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$ 86,633
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$ 73,058
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Cost of sales
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18,653
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16,091
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72,256
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65,080
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Gross
profit
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4,060
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1,811
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14,377
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7,978
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Selling, general and
administrative expenses
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2,027
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1,569
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7,991
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6,222
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Income from
operations
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2,033
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242
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6,386
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1,756
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Non-operating income
(expense):
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Interest
expense
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(230)
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(259)
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(1,015)
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(970)
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Other
income
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-
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14
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8
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377
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Income (loss)
before income taxes
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1,803
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(3)
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5,379
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1,163
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Provision for (benefit from)
income taxes
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649
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(59)
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1,829
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318
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Net
income
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$ 1,153
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$ 56
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$ 3,550
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$845
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Income per common share
data:
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Basic income per
share
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$0.23
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$0.01
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$0.72
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$0.17
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Diluted income per
share
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$0.21
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$0.01
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$0.68
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$0,17
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Weighted average shares
outstanding:
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Basic
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5,032
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4,869
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4,959
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4,859
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Diluted
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5,417
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4,982
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5,237
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5,013
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EDAC TECHNOLOGIES
CORPORATION
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CONDENSED CONSOLIDATED BALANCE
SHEETS
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(in thousands)
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December
31,
2011
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January
1,
2011
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ASSETS
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CURRENT ASSETS:
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Cash
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$ 1,564
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$ 975
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Accounts
receivable, net
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17,905
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14,955
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Inventories
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20,235
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20,219
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Prepaid expenses
and other current assets
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230
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184
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Refundable income
taxes
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-
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80
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Deferred income
taxes
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1,951
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1,613
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Total current
assets
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41,885
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38,026
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PROPERTY, PLANT AND
EQUIPMENT
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55,464
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51,818
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Less: accumulated
depreciation
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31,410
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28,595
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24,054
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23,223
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OTHER ASSETS
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114
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155
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TOTAL ASSETS
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$66,053
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$61,404
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Lines of
credit
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$ 2,023
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$ 4,793
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Current portion of
long-term debt
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2,450
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4,370
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Trade accounts
payable
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8,449
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7,336
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Employee
compensation and amounts withheld
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2,449
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1,212
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Accrued
expenses
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1,754
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2,136
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Customer
advances
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708
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857
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Total current
liabilities
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17,833
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20,704
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Long-term debt, less current
portion
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12,145
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9,858
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Pension liabilities, less
current portion
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2,469
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1,526
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Deferred income taxes
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4,990
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4,473
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Total long-term
liabilities
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19,604
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15,857
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Total
liabilities
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37,437
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36,561
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SHAREHOLDERS' EQUITY:
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Common
stock
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13
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12
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Additional paid-in
capital
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12,522
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11,690
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Retained
earnings
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19,180
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15,630
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Accumulated other
comprehensive loss
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(3,099)
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(2,489)
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Total shareholders' equity
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28,616
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24,843
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
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$66,053
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$61,404
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SOURCE EDAC Technologies Corporation