EDAC Technologies Reports First Quarter Results

EDAC Technologies Reports First Quarter Results 


FARMINGTON, Conn., May 4  /PRNewswire-FirstCall/ -- EDAC Technologies
Corporation  (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 2004.

The first quarter 2004 net income was $289,000 or $0.06 per diluted share
versus a net loss of  $491,000 or a loss of $0.11 per diluted share for the
first quarter of 2003.   Sales for the first quarter of 2004 were $7,306,000
versus $6,109,000 for the first quarter of 2003.

Commenting on the first quarter, Dominick A. Pagano, President and Chief
Executive Officer, said, "The first quarter benefited from the gain on debt
forgiveness in the amount of $250,000, or $242,000 tax effected.  Without the
gain, our net income was $47,000 compared to a loss of $491,000 for the first
quarter of 2003.  It should be noted that this is the first time since the
fourth quarter of 2001 that EDAC has generated a positive net income exclusive
of gains on debt restructuring.  This is a result of our consolidation,
improved efficiency and the hard work that our employees have put forth over
the past 18 months. Going forward we remain optimistic towards our future. Our
sales backlog has increased from $15.7 million on September 27, 2003 to $18.0
million on January 3, 2004 to $20.6 million at the end of the first quarter."

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
  Financial Highlights (Unaudited)

                                                   For the quarter ended
                                                  April 3,      March 29,
                                                      2004           2003


  Sales                                         $7,306,493     $6,109,333
  Cost of sales                                  6,461,993      5,731,716
      Gross profit                                 844,500        377,617

  Selling, general and
   administrative expenses                         637,669        710,930

      Income (loss) from operations                206,831      (333,313)

  Non-operating income
   (expense):
     Interest expense                            (159,093)      (169,518)
     Gain on debt forgiveness                      250,000              -
     Other                                               -         11,919

      Income (loss) before income taxes            297,738      (490,912)

  Provision for income taxes                         9,000              -


      Net income (loss)                           $288,738     $(490,912)


  Income (loss) per common share data:
   Basic income (loss) per share                     $0.06        ($0.11)
   Diluted income (loss) per share                   $0.06        ($0.11)


  Weighted average shares outstanding:
   Basic                                         4,444,438      4,415,960
   Diluted                                       4,616,481      4,415,960


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


DATASOURCE: EDAC Technologies Corporation



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

Corporation, [phone] 



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

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