EDAC Technologies Reports Second Quarter Results

FARMINGTON, Conn., Aug. 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 second quarter of 2005.

Sales for the second quarter of 2005 were $8,899,000 and net income was $1,316,000 or $0.27 per diluted share, versus sales of $8,767,000 and net income of $264,000 or $0.06 per diluted share for the second quarter of 2004. The second quarter of 2005 included an income tax benefit of $787,000.

For the six months ended July 2, 2005, sales were $16,916,000 and net income was $2,278,000 or $0.48 per diluted share versus sales of $16,073,000 and net income of $553,000 or $0.12 per diluted share for the six months ended July 3, 2004.  The six months ended July 3, 2004 benefited from debt forgiveness of $250,000.  The six months ended July 2, 2005 included an income tax benefit of $526,000 and debt forgiveness of $750,000.

Commenting on the second quarter, Dominick A. Pagano, President and Chief Executive Officer, said, "We are very pleased with the second quarter's results.  Operating profit of $690,000 for the quarter exceeded the operating profit for any quarter over the past three and 1/2 years.  Sales backlog increased by $3.4 million to $21.7 million since the start of the fiscal year. We have taken delivery of $1.0 million of new machinery and equipment and expect to invest another $1.0 million in additional machinery over the next six months to increase our production requirements and capacity.  Net worth as reported on our balance sheet has increased by $11,920,000 to $7,519,000 at July 2, 2005 from a deficit of ($4,401,000) at the end of 2002.  We will continue to pursue opportunities that we believe 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


                    For the three months ended   For the six months ended
                        July 2,      July 3,        July 2,      July 3,
                         2005         2004           2005         2004


  Sales               $8,899,338   $8,766,891    $16,915,512  $16,073,384
  Cost of sales        7,363,611    7,697,022     14,032,503   14,159,015

    Gross profit       1,535,727    1,069,869      2,883,009    1,914,369

  Selling, general and
   administrative
   expenses              845,891      634,617      1,572,782    1,272,286

    Income from
     operations          689,836      435,252      1,310,227      642,083

  Non-operating income
   (expense):
    Gain on debt forgiveness   -            -        750,000      250,000
    Interest expense    (161,056)    (163,221)      (321,391)    (322,314)
    Other                      -            -         13,646            -


    Income before
      income taxes       528,780      272,031      1,752,482      569,769

  Provision for
   income taxes         (787,000)       8,000       (526,000)      17,000

    Net income        $1,315,780     $264,031    $ 2,278,482     $552,769



  Income per common share data:

    Basic                  $0.29        $0.06          $0.51        $0.12
    Diluted                $0.27        $0.06          $0.48        $0.12


  Weighted average
   shares outstanding:
    Basic              4,494,870    4,444,438      4,477,037    4,444,438
    Diluted            4,791,243    4,633,146      4,745,207    4,625,185



  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED BALANCE SHEETS
                                                 (Unaudited)      (Audited)
                                                     July 2,     January 1,
                                                       2005           2005
                                  ASSETS
  CURRENT ASSETS:
    Cash                                            $801,564       $549,198
    Accounts receivable, net                       6,081,697      6,573,114
    Inventories, net                               4,895,430      4,454,937
    Prepaid expenses and other current assets        338,319         57,290
    Refundable income taxes                                -        330,869
    Deferred income taxes                            469,135        733,583
                          Total current assets    12,586,145     12,698,991

  PROPERTY, PLANT AND EQUIPMENT                   26,686,378     25,877,359
    Less: accumulated depreciation                18,085,269     17,297,856
                                                   8,601,109      8,579,503
  OTHER ASSETS:
    Deferred income taxes                          1,930,865        766,417
    Other                                            125,918        102,183
  TOTAL ASSETS                                  $ 23,244,037   $ 22,147,094

                   LIABILITIES AND SHAREHOLDERS' EQUITY
  CURRENT LIABILITIES:
    Revolving line of credit                              $-       $580,555
    Current portion of long-term debt              1,213,729      1,030,282
    Trade accounts payable                         3,340,577      3,249,892
    Employee compensation and amounts withheld     1,271,160      1,228,975
    Accrued expenses                                 775,552        502,450
    Customer advances                                164,052        363,745
                       Total current liabilities   6,765,070      6,955,899

  LONG-TERM DEBT, less current portion             7,536,692      8,564,927

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

  SHAREHOLDERS' EQUITY:
    Common stock                                      11,257         11,111
    Additional paid-in capital                     9,414,722      9,377,508
    Accumulated deficit                               (3,562)    (2,282,044)
    Accumulated other comprehensive loss          (1,903,196)    (1,903,196)
    Treasury stock                                         -           (165)
                       Total shareholders' equity  7,519,221      5,203,214

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 23,244,037   $ 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/

Copyright