[EDAC LOGO] EDAC TECHNOLOGIES CORPORATION
1806 New Britain Ave., Farmington, CT 06032 -
Tel: (860) 677-2603 - Fax: (860)674-2718
Web:www.edactechnologies.com - E-mail:info@edactechnologies.com
For further information, please contact:
- ----------------------------------------
Glenn L. Purple
Vice President-Finance
Tel: (860) 677-2603
FOR IMMEDIATE RELEASE
EDAC TECHNOLOGIES REPORTS FOURTH QUARTER RESULTS
FARMINGTON, Conn., March 10, 2004 -- 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 2003.
Fourth quarter 2003 net loss was $107,000 or a loss of $0.02 per diluted share
versus a net loss of $1,192,000 or a loss of $0.27 per diluted share for the
fourth quarter of 2002. Sales for the fourth quarter 2003 were $5,992,000 versus
$6,046,000 for the fourth quarter 2002.
The fiscal year 2003 net income was $6,579,000 or net income of $1.46 per
diluted share versus a net loss of $13,407,000 or a net loss of $3.04 per
diluted share for fiscal year 2002. The 2003 fiscal year benefited from the
$7,253,000 gain on debt restructuring. Without the gain, the net loss for the
2003 fiscal year would have been $674,000. The 2002 fiscal year included a write
down of $10,381,000 due to the cumulative effect of the adoption of SFAS No. 142
"Goodwill and Other Intangible Assets." Without the write down, the net loss for
the 2002 fiscal year would have been $3,026,000 or a loss of $0.69 per diluted
share. Sales for 2003 were $25,677,000 versus $25,850,000 for 2002.
Commenting on the fourth quarter and fiscal year 2003, Dominick A. Pagano,
President and Chief Executive Officer, said, "We are very pleased with the
fourth quarter fiscal year 2003 results, knowing that sales were going to be off
from the third quarter. It should be noted that sales for the year are
approximately the same as sales for last year. However, gross profit has
improved significantly and selling, general and administrative has decreased
significantly. As a result there has been a substantial improvement in the
results from operations. Recent order activity in the industrial product lines
has been robust. In the last five months since September 27, 2003, sales backlog
has increased from $15.7 million to $20.4 million at February 28, 2004. We are
optimistic for the coming year and continue with initiatives that we believe
will strengthen EDAC's revenues and margins."
ABOUT EDAC TECHNOLOGIES CORPORATION
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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.
EDAC TECHNOLOGIES CORPORATION
FINANCIAL HIGHLIGHTS
<Caption>
For the three months ended For the twelve months ended
--------------------------------- ----------------------------------
January 3, December 28, January 3, December 28,
2004 2002 2004 2002
------------ ------------ ----------- ------------
Sales $ 5,992,246 $ 6,046,206 $ 25,677,087 $ 25,850,167
Cost of sales 5,309,259 6,193,091 22,950,242 24,850,653
------------ ------------ ------------ ------------
Gross profit (loss) 682,987 (146,885) 2,726,845 999,514
Selling, general and
and administrative
expenses 733,313 1,051,076 2,869,897 3,961,473
------------ ------------ ------------ ------------
(Loss) income
from operations (50,326) (1,197,961) (143,052) (2,961,959)
Non-operating income
(expense):
Gain on debt restructuring -- -- 7,253,203 --
Other 103,413 1,928 147,126 35,446
Interest expense (160,082) (180,259) (678,489) (742,112)
(Loss) income before income
taxes and cumulative effect
of change in accounting
principle (106,995) (1,376,292) 6,578,788 (3,668,625)
Benefit from income taxes -- 184,302 -- 642,791
------------ ------------ ------------ ------------
(Loss) income before
cumulative effect of change
in accounting principle (106,995) (1,191,990) 6,578,788 (3,025,834)
Cumulative effect of adoption
of SFAS No. 142 -- -- -- (10,381,077)
------------ ------------ ------------ ------------
Net (loss) income $ (106,995) $ (1,191,990) $ 6,578,788 $(13,406,911)
============ ============ ============ ============
Basic per common share data:
(Loss) income before
cumulative effect of change
in accounting principle $ (0.02) $ (0.27) $ 1.49 $ (0.69)
Cumulative effect of change
in accounting principle - - - (2.35)
-------- --------- --------- --------
Net (loss) income $ (0.02) $ (0.27) $ 1.49 $ (3.04)
======== ========= ========= ========
Diluted per common share data:
(Loss) income before
cumulative effect of change
in accounting principle $ (0.02) $ (0.27) $ 1.46 $ (0.69)
Cumulative effect of change
in accounting principle - - - (2.35)
-------- --------- --------- --------
Net (loss) income $ (0.02) $ (0.27) $ 1.46 $ (3.04)
======== ========= ========= ========
Weighted average shares:
Basic 4,444,203 4,416,038 4,425,309 4,408,538
Diluted 4,444,203 4,416,038 4,502,051 4,408,538
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