EDAC Technologies Reports Ninth Consecutive Quarterly Profit

FARMINGTON, Conn., May 2  /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 2006.

Sales for the first quarter of 2006 were $9,596,000 and net income was $293,000 or $0.06 per diluted share, versus sales of $8,016,000 and net income of $963,000 or $0.20 per diluted share for the first quarter of 2005.  The first quarter of 2005 benefited from debt forgiveness of $750,000.  Income from operations for the quarter decreased slightly from $620,000 in 2005 to $611,000 in 2006 due to $226,000 of costs incurred in the first quarter 2006 associated with expansion of our manufacturing capacity by approximately 24,000 square feet and other non-recurring expenditures.

Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the continued strong results.  Our total backlog increased from $21,700,000 at the end of the fiscal 2005 to $25,000,000 at the end of the first quarter.  As recently announced, our Precision Aerospace product line has received over $10.6 million in orders since the beginning of the year including EDAC's first military contract in excess of $1 million. We are also pleased that all of our long-term debt is at fixed rates of interest.  Our 2006 capital plan includes approximately $3.7 million in machinery and equipment additions to increase production requirements and capacity.  Through the first quarter we have invested over $1 million in machinery and equipment and have made commitments for an additional $1.5 million. We've made these investments to meet our sales backlog requirements and to further position us for future growth.  We 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 1,       April 2,
                                                  2006           2005


  Sales                                         $9,595,579     $8,016,174

  Cost of Sales                                  7,970,934      6,668,892

    Gross Profit                                 1,624,645      1,347,282

  Selling, General and Administrative
   Expenses                                      1,013,865        726,891

    Income From Operations                         610,780        620,391

  Non-Operating Income (Expense):
    Interest Expense                             (153,399)      (160,335)
    Gain on Debt Forgiveness                             -        750,000
    Other                                           14,388         13,646

    Income Before Income Taxes                     471,769      1,223,702

  Provision for Income Taxes                       179,000        261,000

    Net Income                                   $ 292,769      $ 962,702

  Income per common share data:
    Basic income per share                           $0.06          $0.22
    Diluted income per share                         $0.06          $0.20

  Weighted average shares outstanding:
    Basic                                        4,506,145      4,459,203
    Diluted                                      4,791,735      4,718,209



  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                 April 1,     December 31,
                                                   2006           2005
                        ASSETS

  CURRENT ASSETS:
    Cash                                        $1,817,258     $2,468,964
    Accounts receivable                          6,641,032      5,587,305
    Inventories, net                             4,059,222      4,296,839
    Prepaid expenses and other current
     assets                                        270,801         81,210
    Refundable income taxes                         54,984         54,984
    Deferred income taxes                          769,864        769,864
      Total current assets                      13,613,161     13,259,166

  PROPERTY, PLANT AND EQUIPMENT                 28,852,023     27,829,014
    Less: accumulated depreciation              19,350,155     18,861,156
                                                 9,501,868      8,967,858

  DEFERRED INCOME TAXES                          1,440,989      1,440,989

  OTHER ASSETS                                     103,124        108,833
  TOTAL ASSETS                                 $24,659,142    $23,776,846

                 LIABILITIES AND SHAREHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Current portion of long-term debt          $ 1,552,472    $ 1,404,053
    Trade accounts payable                       2,991,476      2,427,866
    Employee compensation and amounts
     withheld                                    1,297,621      1,397,897
    Accrued expenses                               572,405        706,861
    Customer advances                               68,776        284,671
      Total current liabilities                  6,482,750      6,221,348

  LONG-TERM DEBT, less current portion           8,107,246      7,791,530

  OTHER LONG-TERM LIABILITIES                      965,823        965,823

  SHAREHOLDERS' EQUITY:
    Common stock                                    11,267         11,261
    Additional paid-in capital                   9,464,928      9,452,525
    Retained earnings                            1,309,553      1,016,784
    Accumulated other comprehensive loss       (1,682,425)    (1,682,425)
      Total shareholders' equity                 9,103,323      8,798,145

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $24,659,142    $23,776,846


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


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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