EDAC

[BigSully1]

Edac Technologies Corp.
1806 New Britain Avenue
Farmington, CT 06032
United States - Map
Phone: 860-677-2603
Fax: 860-677-6316
Web Site: http://www.edactechnologies.com

DETAILS  
Index Membership: N/A
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Full Time Employees: 228


BUSINESS SUMMARY  
Edac Technologies Corporation, together with its subsidiaries, provides design and manufacturing services for tooling, fixtures, molds, jet engine components, and machine spindles. It offers low pressure turbine cases, hubs, rings, disks, and other complex and close tolerance components for aircraft engine and ground turbine manufacturers. The company also provides various assembly services, including assembly of jet engine sync rings, aircraft welding and riveting, post-assembly machining, and sutton barrel finishing. In addition, it provides fixtures, precision gauges, close tolerance plastic injection molds, and precision component molds for composite parts and specialized machinery, as well as designs, manufactures, and repairs various types of precision rolling element bearing spindles, including hydrostatic and other precision rotary devices for the woodworking and automotive markets. Further, the company involves in aero engine components repair business, specializing in the precision machining of aircraft engine rotating components, including deburring, milling, drilling, precision boring, honing, tuning, broaching, and grinding; and provides support services comprising NDT, cleaning, deburring/blending, balancing, shotpeening, and various coating applications. It offers its component repair services focusing on disks, shafts, hubs, bearing housings, couplings, rotors and spools of various aircraft engines. The company serves machine tool manufacturers, special machine tool builders and integrators, industrial end-users, power train machinery manufacturers, and end-users. It has operations in the United States, Canada, Mexico, Europe, and Asia. Edac Technologies Corporation was founded in 1946 and is based in Farmington, Connecticut.

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[BigSully1]

Another nice ER and increased backlog. Should be a very good day tommorrow.

EDAC Technologies Reports Fourth Quarter and Full Year EPS of $0.20 and $0.70, Up 43% and 119%, Respectively
Tuesday February 26, 7:00 pm ET


FARMINGTON, Conn., Feb. 26 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (Nasdaq: EDAC - News), a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the fourth quarter and the fiscal year of 2007.
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Sales for the fourth quarter of 2007 were $12,710,000 and net income was $984,000 or $0.20 per diluted share, versus sales of $10,975,000 and net income of $677,000 or $0.14 per diluted share for the fourth quarter of 2006. Income from operations increased to $1,632,000 in the fourth quarter of 2007 from $1,057,000 in the fourth quarter of 2006.

For the year ended December 29, 2007, sales were $50,019,000 and net income was $3,449,000 or $0.70 per diluted share versus sales of $38,329,000 and net income of $1,554,000 or $0.32 per diluted share for the year ended December 30, 2006.

Dominick A. Pagano, President and Chief Executive Officer, said, "This year is our fourth year of improving sales and operating profits. For the fourth quarter we posted our highest quarterly sales in the past eight years and our highest quarterly operating income in our history. Comparing the fourth quarter to the third quarter, our sales increased $185,000 and net income increased $119,000. For the year we have invested $4,300,000 in property, plant and equipment, including the acquisition of our new Aero Engine Components Repair business in December. This was made possible by strong cash flow provided by operating activities of over $7,600,000 which also provided funds to reduce debt. Total company backlog increased from $28.8 million at the end of fiscal 2006 to $30.1 million at December 29, 2007, and to $51.0 million at February 23, 2008. Approximately $18 million of this increase was from a new aerospace customer with deliveries scheduled from 2009 through 2012."

"Due to our aerospace customers changing their delivery schedules, shipments in the first and possibly second quarters of 2008 will be down compared to 2007 levels. We believe that this is a temporary condition. We are continuing our strategy of investing heavily in state-of-the-art machinery and equipment and plan on investing $3.7 to $5.0 million in 2008 primarily in machinery and equipment to increase our capabilities and capacity, and improve productivity in the aerospace product line."

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

                               For the three months    For the twelve months
                                      ended                   ended
                               Dec. 29,    Dec. 30,    Dec. 29,     Dec. 30,
                                 2007        2006        2007        2006

    Sales                     $12,710,482 $10,974,503 $50,018,584 $38,329,212

    Cost of sales              10,034,056   9,213,682  40,035,308  32,072,085

      Gross profit              2,676,426   1,760,821   9,983,276   6,257,127

    Selling, general and
     administrative expenses    1,044,069     703,472   3,922,027   3,369,020

      Income from operations    1,632,357   1,057,349   6,061,249   2,888,107

    Non-operating income
     (expense):
      Interest expense           (177,422)   (178,783)   (721,235)   (664,327)
      Other income                 31,358      17,205      60,570      90,846

      Income before income
       taxes                    1,486,293     895,771   5,400,584   2,314,626

    Provision for income taxes    502,514     219,238   1,951,514     760,238

      Net income                 $983,779    $676,533  $3,449,070  $1,554,388

    Income per common share data:
     Basic income per share         $0.21       $0.15       $0.75       $0.34
     Diluted income per share       $0.20       $0.14       $0.70       $0.32

    Weighted average shares
     outstanding:

      Basic                     4,624,403   4,522,437   4,584,913   4,515,757

      Diluted                   4,979,532   4,777,398   4,943,291   4,795,564



    EDAC TECHNOLOGIES CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
                                                    December 29,  December 30,
                                                       2007          2006
                                      ASSETS
    CURRENT ASSETS:
      Cash                                           $3,286,203      $925,197
      Accounts receivable, net                        7,638,573     7,331,226
      Inventories, net                                6,598,111     8,234,866
      Prepaid expenses and other current assets          51,339        56,438
      Refundable income taxes                           284,577       140,650
      Deferred income taxes                             933,124       211,394
                              Total current assets   18,791,927    16,899,771

    PROPERTY, PLANT AND EQUIPMENT                    34,869,219    30,646,744
      Less: accumulated depreciation                 22,390,417    20,315,938
                                                     12,478,802    10,330,806

    DEFERRED INCOME TAXES                                     -     1,248,786

    OTHER ASSETS                                        492,051        86,001
    TOTAL ASSETS                                    $31,762,780   $28,565,364

                       LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
      Revolving line of credit                               $-    $1,000,000
      Current portion of long-term debt               2,285,704     1,895,436
      Trade accounts payable                          4,021,827     4,806,090
      Employee compensation and amounts withheld      1,800,390     1,511,820
      Accrued expenses                                  395,950       355,415
      Customer advances                                 424,439       120,767
                         Total current liabilities    8,928,310     9,689,528

    LONG-TERM DEBT, less current portion              7,204,769     8,081,720

    OTHER LONG-TERM LIABILITIES                               -       163,981

    DEFERRED INCOME TAXES                               448,660             -

    SHAREHOLDERS' EQUITY:
      Common stock                                       11,591        11,316
      Additional paid-in capital                     10,245,877     9,530,688
      Retained earnings                               6,020,242     2,571,172
      Accumulated other comprehensive loss           (1,096,669)   (1,483,041)
                        Total shareholders' equity   15,181,041    10,630,135

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $31,762,780   $28,565,364


    Contact:   Glenn L. Purple, Vice President-Finance   860-677-2603

[BigSully1]

I guess traders are more focused on this;

"Due to our aerospace customers changing their delivery schedules, shipments in the first and possibly second quarters of 2008 will be down compared to 2007 levels. We believe that this is a temporary condition. We are continuing our strategy of investing heavily in state-of-the-art machinery and equipment and plan on investing $3.7 to $5.0 million in 2008 primarily in machinery and equipment to increase our capabilities and capacity, and improve productivity in the aerospace product line."

Than this;

Dominick A. Pagano, President and Chief Executive Officer, said, "This year is our fourth year of improving sales and operating profits. For the fourth quarter we posted our highest quarterly sales in the past eight years and our highest quarterly operating income in our history. Comparing the fourth quarter to the third quarter, our sales increased $185,000 and net income increased $119,000. For the year we have invested $4,300,000 in property, plant and equipment, including the acquisition of our new Aero Engine Components Repair business in December. This was made possible by strong cash flow provided by operating activities of over $7,600,000 which also provided funds to reduce debt. Total company backlog increased from $28.8 million at the end of fiscal 2006 to $30.1 million at December 29, 2007, and to $51.0 million at February 23, 2008. Approximately $18 million of this increase was from a new aerospace customer with deliveries scheduled from 2009 through 2012."
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I'll continue to hold.