FARMINGTON, Conn., Oct. 27 /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 third quarter of 2009.
Sales for the third quarter of 2009 were $15,132,000 and net income
was $80,000 or $0.02 per diluted share, versus sales of $10,547,000
and net income of $255,000 or $0.05 per diluted share for the third
quarter of 2008. For the nine months ended October 3, 2009, sales
were $38,345,000 and net income was $7,513,000 or $1.53 per diluted
share versus sales of $32,577,000 and net income of $1,418,000 or
$0.28 per diluted share for the nine months ended September 27,
2008. Dominick A. Pagano, President and Chief Executive Officer,
said, "Our results include the operations of our EDAC Aero
acquisition since May 27th. EDAC Aero contributed sales of
$5,386,000 for the third quarter and $7,755,000 since the
acquisition date. Among its domestic and international aerospace
customers, EDAC Aero continues as a supplier to MTU Aero Engines in
Germany. The third quarter was a challenging one for our other
operations. Organically, our sales decreased by $1,514,000 from the
second quarter of 2009 due to the down turn in the aerospace and
machine tool product lines. Results were further impacted by costs
associated with the development of new components for the JSF-135
and other emerging engine programs." "We also acquired
substantially all of the assets of Service Network Incorporated, a
manufacturer and rebuilder of precision grinders, as previously
announced on August 10th. The new product lines and technologies
represent a strategic acquisition that will further broaden our
Spindle product line." 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 $11,600,000 and has been reflected as a gain in other
income in the financial statements. Pagano added, "To date the EDAC
Aero transaction has been accretive to our earnings per share and
we fully expect that it will continue to be accretive. It is
consistent with our long term strategic plan of incorporating
growth through organic operations and acquisitions. The new product
lines, customers and technologies have complemented our existing
business, and will provide us with a platform to further leverage
our assets and resources to enhance shareholder value." "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. EDAC
TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS UNAUDITED For the three months ended For the nine months
ended October 3, Sept. 27 October 3, Sept. 27 2009 2008 2009 2008
---- ---- ---- ---- Sales $15,132,120 $10,547,124 $38,344,712
$32,577,388 Cost of sales 13,370,287 9,161,877 33,806,646
27,276,156 ---------- --------- ---------- ---------- Gross profit
1,761,833 1,385,247 4,538,066 5,301,232 Selling, general and
administrative expenses 1,305,763 842,868 3,347,624 2,676,232
--------- ------- --------- --------- Income from operations
456,070 542,379 1,190,442 2,625,000 Non-operating income (expense):
Interest expense (262,388) (158,885) (592,813) (478,510) Other
income (73,431) 8,425 11,673,022 62,354 ------- ----- ----------
------ Income before income taxes 120,251 391,919 12,270,651
2,208,844 Provision for income taxes 39,803 137,000 4,757,627
791,000 ------ ------- --------- ------- Net income $80,448
$254,919 $7,513,024 $1,417,844 ======= ======== ==========
========== Income per common share data: Basic income per share
$0.02 $0.05 $1.56 $0.30 ===== ===== ===== ===== Diluted income per
share $0.02 $0.05 $1.53 $0.28 ===== ===== ===== ===== Weighted
average shares outstanding: Basic 4,837,803 4,746,137 4,830,803
4,693,020 Diluted 5,010,661 5,139,922 4,915,047 5,152,739 EDAC
TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited) October 3, January 3, 2009 2009 ---- ----
ASSETS ------ CURRENT ASSETS: Cash $851,475 $1,311,092 Accounts
receivable, net 11,380,063 7,931,550 Inventories, net 20,406,862
7,961,788 Prepaid expenses and other current assets 357,049 107,333
Refundable income taxes - 686,708 Deferred income taxes 918,567
983,298 ------- ------- Total current assets 33,914,016 18,981,769
---------- ---------- PROPERTY, PLANT AND EQUIPMENT 48,359,259
35,347,124 Less: accumulated depreciation 25,498,519 23,992,878
---------- ---------- 22,860,740 11,354,246 ---------- ----------
DEFERRED INCOME TAXES - 105,971 --- ------- OTHER ASSETS 228,921
1,021,638 ------- --------- TOTAL ASSETS $57,003,677 $31,463,624
=========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------ CURRENT LIABILITIES: Lines of
credit $1,891,190 $1,674,990 Current portion of long-term debt
2,135,023 2,376,018 Trade accounts payable 7,274,442 3,485,192
Employee compensation and amounts withheld 1,726,089 1,112,006
Accrued expenses 1,216,434 361,252 Customer advances 685,901
261,643 ------- ------- Total current liabilities 14,929,079
9,271,101 ---------- --------- LONG-TERM DEBT, less current portion
12,060,592 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 11,118,990 10,934,736
Retained earnings 14,671,626 7,158,600 Accumulated other
comprehensive loss 2,438,806 2,438,806 --------- --------- Total
shareholders' equity 23,363,905 15,666,593 ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $57,003,677 $31,463,624
=========== =========== Contact: Glenn L. Purple, Vice
President-Finance, 860-677-2603 DATASOURCE: EDAC Technologies
Corporation CONTACT: Glenn L. Purple, Vice President-Finance,
+1-860-677-2603 Web Site: http://www.edactechnologies.com/
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