EDAC TECHNOLOGIES REPORTS NINTH CONSECUTIVE QUARTERLY PROFIT
FARMINGTON, Conn., May 2, 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 first quarter of 2006.
Sales for the first quarter of 2006 were $9,596,000 and net income was $293,000 or $0.06 per diluted share, versus sales of $8,016,000 and net income of $963,000 or $0.20 per diluted share for the first quarter of 2005. The first quarter of 2005 benefited from debt forgiveness of $750,000. Income from operations for the quarter decreased slightly from $620,000 in 2005 to $611,000 in 2006 due to $226,000 of costs incurred in the first quarter 2006 associated with expansion of our manufacturing capacity by approximately 24,000 square feet and other non-recurring expenditures.
Dominick A. Pagano, President and Chief Executive Officer, said, “We are very pleased with the continued strong results. Our total backlog increased from $21,700,000 at the end of the fiscal 2005 to $25,000,000 at the end of the first quarter. As recently announced, our Precision Aerospace product line has received over $10.6 million in orders since the beginning of the year including EDAC’s first military contract in excess of $1 million. We are also pleased that all of our long-term debt is at fixed rates of interest. Our 2006 capital plan includes approximately $3.7 million in machinery and equipment additions to increase production requirements and capacity. Through the first quarter we have invested over $1 million in machinery and equipment and have made commitments for an additional $1.5 million. We’ve made these investments to meet our sales backlog requirements and to further position us for future growth. We will continue to pursue opportunities that will strengthen EDAC for the long term.”
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.
