EDAC Technologies Reports Record Results

FARMINGTON, Conn., March 7  /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 fourth quarter of 2005 and the fiscal year 2005.

For the fiscal year 2005, sales were $35,045,000 and net income was $3,299,000 or $0.69 per diluted share versus sales of $33,247,000 and net income of $2,862,000 or $0.62 per diluted share for the fiscal year 2004. Both years benefited from income tax credits and debt forgiveness ($1,092,000 in 2005 and $2,081,000 in 2004).  Income from operations nearly doubled, increasing to $2,800,000 in 2005 from $1,416,000 in 2004.

Sales for the fourth quarter of 2005 were $9,442,000 and net income was $631,000 or $0.13 per diluted share, versus sales of $9,631,000 and net income of $2,012,000 or $0.43 per diluted share for the fourth quarter of 2004.  The fourth quarter of 2004 benefited from an income tax credit of $1,567,000. Income from operations for the quarter increased from $605,000 in 2004 to $841,000 in 2005.

Commenting on the fiscal year 2005, Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the continued strong results.  Net income before income taxes and gains on debt forgiveness or restructuring as a percentage of sales for 2005, was the highest in the last 18 years.  Our financial position also improved.  Working capital at year end increased by $1,295,000 over 2004 and our debt to equity ratio improved from 1.96 to 1 in 2004 to 1.05 to 1 in 2005.  Our backlog increased from $18,300,000 at the end of the fiscal 2004 to $26,600,000 at February 28, 2006."

  "We believe that 2006 will be another positive and exciting year."

  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
  CONSOLIDATED STATEMENTS OF OPERATIONS


                      For the three months ended For the twelve months ended
                         December 31,  January 1, December 31,  January 1,
                            2005         2005        2005         2005


  Sales                   $9,441,833   $9,631,166  $35,045,033  $33,247,019
  Cost of sales            7,829,528    8,275,184   29,075,091   29,199,047
    Gross profit           1,612,305    1,355,982    5,969,942    4,047,972

  Selling, general and
   and administrative
   expenses                  771,740      751,317    3,170,002    2,632,084
    Income from
     operations              840,565      604,665    2,799,940    1,415,888

  Non-operating income
   (expense):
    Gain on debt
     forgiveness                   -            -      750,000      250,000
    Other                      9,914            -       26,299            -

    Interest                (141,979)    (159,620)    (619,452)    (634,618)

    Income before
     income taxes            708,500      445,045    2,956,787    1,031,270

  Provision for
   (Benefit from)
   income taxes               77,959   (1,566,541)    (342,041)  (1,830,695)

    Net income             $ 630,541  $ 2,011,586  $ 3,298,828  $ 2,861,965



  Income per common share
   data:
    Basic                     $0.14        $0.45        $0.74        $0.64
    Diluted                   $0.13        $0.43        $0.69        $0.62


  Weighted average shares
   outstanding:
    Basic                 4,504,270    4,444,203    4,487,080    4,444,438
    Diluted               4,785,643    4,644,647    4,772,666    4,644,647



  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                 December 31,     January 1,
                                                     2005           2005

  ASSETS

  CURRENT ASSETS:
    Cash                                         $ 2,468,964       $549,198

    Accounts receivable (net of allowance
     for doubtful accounts of $184,000 as of
     December 31, 2005 and $234,000
     as of January 1, 2005)                        5,587,305      6,573,114
    Inventories, net                               4,296,839      4,454,937
    Prepaid expenses and other current assets         81,210         57,290
    Refundable income taxes                           54,984        330,869
    Deferred income taxes                            769,864        733,583

      Total current assets                        13,259,166     12,698,991


  PROPERTY, PLANT AND EQUIPMENT, at cost:
    Land                                             632,821        632,821
    Buildings and improvements                     6,316,490      6,289,625
    Machinery and equipment                       20,879,703     18,954,913

                                                  27,829,014     25,877,359
    Less: accumulated depreciation                18,861,156     17,297,856

                                                   8,967,858      8,579,503

  DEFERRED INCOME TAXES                            1,440,989        766,417


  OTHER ASSETS                                       108,833        102,183

  TOTAL ASSETS                                   $23,776,846    $22,147,094


  LIABILITIES AND SHAREHOLDERS' EQUITY
   CURRENT LIABILITIES:
    Revolving line of credit                              $-       $580,555
    Current portion of long-term debt              1,404,053      1,030,282
    Trade accounts payable                         2,427,866      3,249,892
    Employee compensation and amounts withheld     1,397,897      1,228,975
    Accrued expenses                                 706,861        502,450
    Customer advances                                284,671        363,745
      Total current liabilities                    6,221,348      6,955,899


  LONG-TERM DEBT, less current portion             7,791,530      8,564,927


  OTHER LONG-TERM LIABILITIES                        965,823      1,423,054


  SHAREHOLDERS' EQUITY:
    Common stock, par value $.0025 per
     Share; 10,000,000 shares authorized;
     issued and outstanding -- 4,504,270
     on December 31, 2005 and 4,444,438
     on January 1, 2005                                11,261        11,111
    Additional paid-in capital                      9,452,525     9,377,508
    Retained earnings (accumulated deficit)         1,016,784    (2,282,044)
                                                   10,480,570     7,106,575

    Less: accumulated other comprehensive           1,682,425     1,903,196
     loss treasury stock, 0 shares on
     December 31, 2005 and 235 shares on
     January 1, 2005                                        -           165
       Total shareholders' equity                   8,798,145     5,203,214

   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $23,776,846   $22,147,094


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


DATASOURCE: EDAC Technologies Corporation



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

[phone] 



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

Copyright