EDAC Technologies Reports Fifth Consecutive Quarterly Profit

EDAC Technologies Reports Fifth Consecutive Quarterly Profit



FARMINGTON, Conn., May 3  /PRNewswire-FirstCall/ -- EDAC Technologies
Corporation (OTC:EDAC.OB) (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

  For further information, please contact:
   Glenn L. Purple
   Vice President-Finance
   Tel: [phone]


DATASOURCE: EDAC Technologies Corporation



CONTACT:  Glenn L. Purple, Vice President-Finance of EDAC Technologies

Corporation, [phone] 



Web site:  http://www.edactechnologies.com/

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