EXHIBIT 99.1
For further information, please contact:
Glenn L. Purple
Vice President-Finance
Tel: (860) 677-2603
FOR IMMEDIATE RELEASE
EDAC TECHNOLOGIES REPORTS FIFTH CONSECUTIVE QUARTERLY PROFIT
FARMINGTON, Conn., May 3, 2005 - 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 2005.
Sales for the first quarter of 2005 were $8,016,000 and net income was $963,000
or $0.20 per diluted share, versus sales of $7,306,000 and net income of
$289,000 or $0.06 per diluted share for the first quarter of 2004. The first
quarters of 2005 and 2004 benefited from debt forgiveness of $750,000 and
$250,000, respectively. Income before income tax and without the gains on debt
forgiveness was $474,000 for the first quarter of 2005 and $48,000 for the first
quarter of 2004.
Commenting on the first quarter, Dominick A. Pagano, President and Chief
Executive Officer, said, "We are very pleased with the first quarter's results.
Operating profit of $620,000 for the quarter exceeded the operating profit for
any quarter over the past three years. Sales backlog increased by $2.3 million
to $20.6 million since the start of the fiscal year. We have initiated our 2005
capital acquisition program to invest approximately $2 million in machinery to
increase our production requirements and capacity. Debt forgiveness of $750,000
in the first quarter further strengthened our financial position. We believe we
are positioned for future growth and 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.
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
For the quarter ended
---------------------------
April 2, April 3,
2005 2004
----------- -----------
Sales $ 8,016,174 $ 7,306,493
Cost of Sales 6,668,892 6,461,993
----------- -----------
Gross Profit 1,347,282 844,500
Selling, General and Administrative Expenses 726,891 637,669
----------- -----------
Income From Operations 620,391 206,831
Non-Operating Income (Expense):
Gain on Debt Forgiveness 750,000 250,000
Other 13,646 --
Interest Expense (160,335) (159,093)
----------- -----------
Income Before Income Taxes 1,223,702 297,738
Provision for Income Taxes 261,000 9,000
----------- -----------
Net Income $ 962,702 $ 288,738
=========== ===========
Income per common share data:
Basic income per share $ 0.22 $ 0.06
=========== ===========
Diluted income per share $ 0.20 $ 0.06
=========== ===========
Weighted average shares outstanding:
Basic 4,459,203 4,444,438
Diluted 4,718,209 4,616,481
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
April 2, January 1,
2005 2005
------------ ------------
ASSETS
CURRENT ASSETS:
Cash $ 315,952 $ 549,198
Accounts receivable, net 6,012,572 6,573,114
Inventories, net 4,900,692 4,454,937
Prepaid expenses and other current assets 367,352 57,290
Refundable income taxes -- 330,869
Deferred income taxes 733,583 733,583
------------ ------------
Total current assets 12,330,151 12,698,991
------------ ------------
PROPERTY, PLANT AND EQUIPMENT 26,093,436 25,877,359
Less: accumulated depreciation 17,645,994 17,297,856
------------ ------------
8,447,442 8,579,503
------------ ------------
OTHER ASSETS:
Deferred income taxes 766,417 766,417
Other 148,634 102,183
------------ ------------
TOTAL ASSETS $ 21,692,644 $ 22,147,094
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $ 600,000 $ 580,555
Current portion of long-term debt 1,124,452 1,030,282
Trade accounts payable 2,847,471 3,249,892
Employee compensation and amounts withheld 1,256,393 1,228,975
Accrued expenses 722,282 502,450
Customer advances 85,167 363,745
------------ ------------
Total current liabilities 6,635,765 6,955,899
------------ ------------
LONG-TERM DEBT, less current portion 7,447,659 8,564,927
------------ ------------
OTHER LONG-TERM LIABILITIES 1,423,054 1,423,054
------------ ------------
SHAREHOLDERS' EQUITY:
Common stock 11,223 11,111
Additional paid-in capital 9,397,481 9,377,508
Accumulated deficit (1,319,342) (2,282,044)
Accumulated other comprehensive loss (1,903,196) (1,903,196)
Treasury stock -- (165)
------------ ------------
Total shareholders' equity 6,186,166 5,203,214
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 21,692,644 $ 22,147,094
============ ============