EDAC Technologies Reports Fourth Quarter Results

EDAC Technologies Reports Fourth Quarter Results 


FARMINGTON, Conn., March 8  /PRNewswire-FirstCall/ -- EDAC Technologies
Corporation (OTC:EDAC) (BULLETIN BOARD: EDAC) , a designer and manufacturer of
tools, fixtures, jet engine components, injection molds and spindles, today
reported results for the fourth quarter of 2004.

Sales for the fourth quarter of 2004 were $9,631,000 and net income was
$2,012,000 or $0.43 per diluted share, versus sales of $5,992,000 and a net
loss of $107,000 or a loss of $0.02 per diluted share for the fourth quarter of
2003.  The fourth quarter benefited from an income tax credit of $1,567,000. 
Net income prior to the tax credit was $445,000.

For the fiscal year 2004, sales were $33,247,000 and net income was $2,862,000
or $0.62 per diluted share versus sales of $25,677,000 and net income of
$6,579,000 or $1.46 per diluted share for the fiscal year 2003.  The fiscal
year 2003 benefited from a gain of $7,253,000 from debt restructuring. Without
the gain for the fiscal year 2003 the net loss would have been $674,000.  The
fiscal year 2004 benefited from an income tax credit of $1,831,000 and debt
forgiveness of $250,000.  Net income prior to the tax credit and without the
debt forgiveness would have been $781,000.

Commenting on the fourth quarter and fiscal year 2004, Dominick A. Pagano,
President and Chief Executive Officer, said,  "We are pleased with the year-
end results and in particular the fourth quarter, in which we achieved record
sales and continued improvement in our gross profit.  After two years of
rebuilding, we are reporting our first fiscal year operating profit since 2001.
 Compared to the fiscal year 2003, our operating profit for fiscal year 2004
has improved from a loss of $143,000 to a profit of $1,416,000.  Our
refinancing in January 2005 has reduced our debt service and will provide for
capital equipment through a $1.5 million equipment line.  Our backlog remains
strong and our management team continues to develop. We look forward to
maintaining the positive momentum into 2005."

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.

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


  EDAC TECHNOLOGIES CORPORATION
  CONSOLIDATED STATEMENTS OF OPERATIONS

                   For the three months ended  For the twelve months ended
                      January 1,   January 3,    January 1,   January 3,
                         2005         2004          2005         2004


  Sales               $9,631,166  $5,992,246   $33,247,019  $25,677,087
  Cost of sales        8,275,184   5,309,259    29,199,047   22,950,242
   Gross profit        1,355,982     682,987     4,047,972    2,726,845

  Selling, general and
   and administrative
   expenses              751,317     733,313     2,632,084    2,869,897

   Income (loss)
    from operations      604,665     (50,326)    1,415,888     (143,052)

  Non-operating income
   (expense):
   Interest             (159,620)   (160,082)     (634,618)    (678,489)
   Gain on debt
    forgiveness                -           -       250,000            -
   Gain on debt
    restructuring              -           -             -    7,253,203
   Other                       -     103,413             -      147,126

   Income (loss) before
    income taxes         445,045    (106,995)    1,031,270    6,578,788

   Benefit from
    income taxes       1,566,541           -     1,830,695            -


   Net income (loss)  $2,011,586   $(106,995)   $2,861,965   $6,578,788


  Income (loss) per common share data:
   Basic                   $0.45      $(0.02)        $0.64        $1.49
   Diluted                 $0.43      $(0.02)        $0.62        $1.46


  Weighted average shares outstanding:
   Basic               4,444,438    4,444,203    4,444,438    4,425,309
   Diluted             4,661,520    4,444,203    4,644,647    4,502,051


  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                January 1,       January 3,
                                                   2005             2004
  ASSETS
  CURRENT ASSETS:
   Cash                                         $ 549,198         $ 94,151
   Accounts receivable (net of allowance
    for doubtful accounts of $234,000 as of
    January 1, 2005 and January 3, 2004         6,573,114        3,154,498
   Inventories, net                             4,454,937        4,611,253
   Prepaid expenses and other current assets       57,290           60,424
   Refundable income taxes                        330,869                -
   Deferred income taxes                          733,583                -
     Total current assets                      12,698,991        7,920,326

  PROPERTY, PLANT AND EQUIPMENT, at cost:
   Land                                           632,821          632,821
   Buildings and improvements                   6,289,625        6,280,988
   Machinery and equipment                     18,954,913       18,571,819
                                               25,877,359       25,485,628
   Less: accumulated depreciation              17,297,856       15,542,501
                                                8,579,503        9,943,127

  OTHER ASSETS:
   Deferred income taxes                          766,417          258,608
   Other                                          102,183           43,751
  TOTAL ASSETS                                $22,147,094      $18,165,812

  LIABILITIES AND SHAREHOLDERS' EQUITY
  CURRENT LIABILITIES:
   Revolving line of credit                     $ 580,555      $ 2,550,832
   Current portion of long-term debt            1,030,282        2,254,142
   Trade accounts payable                       3,249,892        2,098,415
   Employee compensation and amounts withheld   1,228,975          972,630
   Accrued expenses                               502,450          412,201
   Customer advances                              363,745           77,138
   Deferred income taxes                                -          258,959
     Total current liabilities                  6,955,899        8,624,317

  LONG-TERM DEBT, less current portion          8,564,927        5,671,190

  OTHER LONG-TERM LIABILITIES                   1,423,054        1,125,063

  SHAREHOLDERS' EQUITY:
   Common stock, par value $.0025 per
    share; 10,000,000 shares authorized;
    issued and outstanding -- 4,444,438
    in 2004 and 2003                               11,111           11,111
   Additional paid-in capital                   9,377,508        9,377,508
   Accumulated deficit                         (2,282,044)      (5,144,009)
                                                7,106,575        4,244,610
   Less: accumulated other comprehensive loss   1,903,196        1,499,203
    Treasury stock, 235 shares                        165              165
    Total shareholders' equity                  5,203,214        2,745,242

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $22,147,094      $18,165,812


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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