EDAC Technologies Reports Second Quarter Results

FARMINGTON, Conn., July 29  /PRNewswire-FirstCall/ -- EDAC Technologies Corporation (NASDAQ:EDAC), a designer and manufacturer of jet engine components, tools, fixtures, injection molds and spindles, today reported results for the second quarter of 2009.

Sales for the second quarter of 2009 were $13,629,000 and net income was $7,376,000 or $1.50 per diluted share, versus sales of $10,849,000 and net income of $533,000 or $0.11 per diluted share for the second quarter of 2008.

For the six months ended July 4, 2009, sales were $23,213,000 and net income was $7,433,000 or $1.52 per diluted share versus sales of $22,030,000 and net income of $1,163,000 or $0.23 per diluted share for the six months ended June 28, 2008.

As previously announced, EDAC acquired the assets of the manufacturing unit of MTU AENA, located in Newington, Connecticut on May 27, 2009.  Operating now as EDAC Aero, the new operation primarily manufactures rotating components such as disks, rings and shafts for the aerospace industry.  As prescribed by generally accepted accounting principles, the net assets acquired were recorded at fair value, which exceeded the purchase price by approximately $11,700,000.  This difference has been recorded primarily as property, plant and equipment and other income in the financial statements.

Dominick A. Pagano, President and Chief Executive Officer, said, "Our results include the operations of our newest acquisition, EDAC Aero, since May 27th.  EDAC Aero contributed sales of $2,369,000 for the period and contributed to EDAC's operating income.  Among its domestic and international aerospace customers, EDAC Aero continues as a supplier to MTU Aero Engines in Germany.  Organically, our sales increased by $1,676,000 over the first quarter of 2009 and by $411,000 over the second quarter of 2008."

Pagano added, "We expect the EDAC Aero transaction to be accretive to our earnings per share and is consistent with our long term strategic plan of incorporating growth through organic operations and acquisitions.  The new product lines, customers and technologies will complement our existing business, and will provide us with a platform to further leverage our assets and resources to further enhance shareholder value.  Our balance sheet is strong and our shareholders' equity is $23,228,000 at July 4, 2009.

As always, our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization.  We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."

About EDAC Technologies Corporation

EDAC Technologies Corporation is a diversified manufacturing company primarily offering (i) manufacturing and design 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.

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



  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  UNAUDITED



                       For the three months ended   For the six months ended

                              July 4,     June 28,      July 4,     June 28,
                               2009         2008         2009         2008

  Sales                  $13,628,817  $10,849,161  $23,212,592  $22,030,264

  Cost of sales           11,933,020    9,019,185   20,436,359   18,114,279


    Gross profit           1,695,797    1,829,976    2,776,233    3,915,985

  Selling, general and
   administrative expenses 1,180,605      864,244    2,041,861    1,833,364

    Income from operations   515,192      965,732      734,372    2,082,621

  Non-operating income
   (expense):
    Interest expense        (190,583)    (155,048)    (330,425)    (319,625)
    Other income          11,739,578        9,374   11,746,453       53,929

    Income before income
     taxes                12,064,187      820,058   12,150,400    1,816,925

  Provision for income
   taxes                   4,688,024      287,000    4,717,824      654,000

    Net income            $7,376,163     $533,058   $7,432,576   $1,162,925

  Income per common share
   data:
    Basic income per share     $1.53        $0.11        $1.54        $0.25
    Diluted income per share   $1.50        $0.11        $1.52        $0.23

  Weighted average shares
   outstanding:
    Basic                  4,829,678    4,666,970    4,827,803    4,658,946
    Diluted                4,918,711    4,956,739    4,892,184    4,970,310



  EDAC TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED BALANCE SHEETS

                                         (Unaudited)               (Audited)
                                             July 4,              January 3,
                                               2009                    2009

                                  ASSETS
  CURRENT ASSETS:
    Cash                                   $308,484              $1,311,092
    Accounts receivable, net             13,059,271               7,931,550
    Inventories, net                     18,191,098               7,961,788
    Prepaid expenses and other current
     assets                                 383,066                 107,333
    Refundable income taxes                 111,883                 686,708
    Deferred income taxes                   918,567                 983,298

              Total current assets       32,972,369              18,981,769


  PROPERTY, PLANT AND EQUIPMENT          47,640,684              35,347,124
    Less: accumulated depreciation       24,861,164              23,992,878

                                         22,779,520              11,354,246

  DEFERRED INCOME TAXES                           -                 105,971


  OTHER ASSETS                            2,307,682               1,021,638

  TOTAL ASSETS                          $58,059,571             $31,463,624


                         LIABILITIES AND SHAREHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Equipment line of credit             $3,258,490              $1,674,990
    Current portion of long-term debt     2,434,928               2,376,018
    Trade accounts payable                6,433,669               3,485,192
    Employee compensation and amounts
     withheld                             1,586,690               1,112,006
    Accrued expenses                      1,526,851                 361,252
    Customer advances                       438,530                 261,643

              Total current liabilities  15,679,158               9,271,101


  LONG-TERM DEBT, less current portion   13,042,605               4,827,697


  OTHER LONG-TERM LIABILITIES             1,698,233               1,698,233


  DEFERRED INCOME TAXES                   4,411,868                       -


  SHAREHOLDERS' EQUITY:
    Common stock                             12,095                  12,063
    Additional paid-in capital           11,063,241              10,934,736
    Retained earnings                    14,591,177               7,158,600
    Accumulated other comprehensive loss (2,438,806)             (2,438,806)

              Total shareholders' equity 23,227,707              15,666,593

  TOTAL LIABILITIES AND SHAREHOLDERS'
   EQUITY                               $58,059,571             $31,463,624


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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