EDAC TECHNOLOGIES REPORTS RECORD RESULTS
FARMINGTON, Conn., March 7, 2006 — EDAC Technologies Corporation (OTC Bulletin Board: EDAC.OB), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the fourth quarter of 2005 and the fiscal year 2005.
For the fiscal year 2005, sales were $35,045,000 and net income was $3,299,000 or $0.69 per diluted share versus sales of $33,247,000 and net income of $2,862,000 or $0.62 per diluted share for the fiscal year 2004. Both years benefited from income tax credits and debt forgiveness ($1,092,000 in 2005 and $2,081,000 in 2004). Income from operations nearly doubled, increasing to $2,800,000 in 2005 from $1,416,000 in 2004.
Sales for the fourth quarter of 2005 were $9,442,000 and net income was $631,000 or $0.13 per diluted share, versus sales of $9,631,000 and net income of $2,012,000 or $0.43 per diluted share for the fourth quarter of 2004. The fourth quarter of 2004 benefited from an income tax credit of $1,567,000. Income from operations for the quarter increased from $605,000 in 2004 to $841,000 in 2005.
Commenting on the fiscal year 2005, Dominick A. Pagano, President and Chief Executive Officer, said, “We are very pleased with the continued strong results. Net income before income taxes and gains on debt forgiveness or restructuring as a percentage of sales for 2005, was the highest in the last 18 years. Our financial position also improved. Working capital at year end increased by $1,295,000 over 2004 and our debt to equity ratio improved from 1.96 to 1 in 2004 to 1.05 to 1 in 2005. Our backlog increased from $18,300,000 at the end of the fiscal 2004 to $26,600,000 at February 28, 2006.”
“We believe that 2006 will be another positive and exciting year.”
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.
