EDAC Technologies Reports Third Consecutive Quarterly Profit

EDAC Technologies Reports Third Consecutive Quarterly Profit



FARMINGTON, Conn., Nov. 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 third quarter of 2004.

Sales for the third quarter of 2004 were $7,542,000 and net income was $298,000
or $0.06 per diluted share versus sales of $6,438,000 and a net loss of $52,000
or a loss of $0.01 per diluted share for the third quarter of 2003. The third
quarter benefited from the determination of an income tax refund of $331,000.

For the nine months ended October 2, 2004, sales were $23,616,000 and net
income was $850,000 (including a gain of $250,000 from debt forgiveness and the
determination of an income tax refund of $331,000) or $0.18 per diluted share
versus sales of $19,685,000 and net income of $6,686,000 or $1.49 per diluted
share for the nine months ended September 27, 2003.  The nine months ended
September 27, 2003 benefited from a gain of $7,253,000 from debt restructuring.
 Without the gain, the net loss for the nine months ended September 27, 2003
would have been $567,000 or a loss of $(0.13) per diluted share.

Commenting on the third quarter, Dominick A. Pagano, President and Chief
Executive Officer, said,  "We are very pleased with the $1,105,000 increase in
sales for the 3rd quarter over the 3rd quarter of 2003 and the $3,931,000
increase for the nine months over the 9 months of 2003.  Our sales backlog of
$21,100,000 at the end of the third quarter represents increases of $1,300,000
in the third quarter and $3,100,000 since the start of the fiscal year.  Our
operating profit increased by $50,000 for the quarter as compared to the third
quarter of 2003, and $904,000 for the first nine months in the current year
compared with the first nine months of 2003.  Since the fourth quarter of 2001,
this was the third consecutive quarter that EDAC has generated a positive net
income exclusive of gains on debt restructuring.  In September we reached a
major milestone by making the final of 18 monthly payments on a note resulting
from the 2003 debt restructuring, thereby reducing our monthly debt service
going forward by $75,000.  We remain optimistic about the 4th quarter and the
coming year and 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 three months ended    For the nine months ended
                      October 2,     Sept. 27,      October 2,   Sept. 27,
                   2004          2003            2004           2003

  Sales               $7,542,469   $6,437,696  $23,615,853  $19,684,841
  Cost of sales        6,764,848    5,655,411   20,923,863   17,640,983
    Gross profit         777,621      782,285    2,691,990    2,043,858

  Selling, general and
    and administrative
    expenses             608,481      663,023    1,880,767    2,136,584

    Income (loss)
     from operations     169,140      119,262      811,223      (92,726)

  Non-operating income
    (expense):
    Interest           (152,684)     (171,474)    (474,998)    (518,407)
    Gain on debt
     forgiveness               -            -      250,000            -
    Gain on debt
     restructuring             -            -            -    7,253,203
    Other                      -          500            -       43,713

    Income (loss) before
     income taxes         16,456      (51,712)     586,225    6,685,783

   Benefit from income
    taxes                281,154            -      264,154            -



     Net income (loss)  $297,610    $ (51,712)    $850,379   $6,685,783

  Income (loss) per
   common share data:
      Basic                $0.07       $(0.01)        $0.19       $1.51
      Diluted              $0.06       $(0.01)        $0.18       $1.49

  Weighted average
   shares outstanding:
      Basic            4,444,438    4,425,270    4,444,438    4,419,011
      Diluted          4,661,848    4,425,270    4,638,506    4,491,919


  EDAC TECHNOLOGIES CORPORATION
  Condensed Consolidated Balance Sheets

                                                October 2,        January 3,
                                                  2004                2004
                                               (Unaudited)           (Note)


                                    ASSETS


  CURRENT ASSETS:
   Cash                                           $711,806        $94,151
   Trade accounts receivable, net                5,504,954      3,154,498
   Inventories, net                              4,558,271      4,611,253
   Prepaid expenses and other                      270,215         60,424
   Refundable income taxes                         331,154              -
      TOTAL CURRENT ASSETS                      11,376,400      7,920,326


  PROPERTY, PLANT, AND EQUIPMENT                25,842,995     25,485,628
   less-accumulated depreciation                16,921,660     15,542,501
                                                 8,921,335      9,943,127

  OTHER ASSETS:
   Deferred income taxes                           258,608        258,608
   Other                                            60,588         43,751
                                              $ 20,616,931   $ 18,165,812



                   LIABILITIES AND SHAREHOLDERS' EQUITY


  CURRENT LIABILITIES:
   Revolving line of credit                     $4,388,965     $2,550,832
   Current portion of long-term debt             1,477,864      2,254,142
   Trade accounts payable                        3,635,924      2,098,415
   Accrued employee compensation
    and amounts withheld                           988,339        972,630
   Other accrued expenses                          371,551        412,201
   Customer advances                               354,581         77,138
   Deferred income taxes                           258,959        258,959
      TOTAL CURRENT LIABILITIES                 11,476,183      8,624,317

  LONG-TERM DEBT,
   less current portion                          4,420,064      5,671,190

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


  SHAREHOLDERS' EQUITY:
   Common stock, par value $.0025 per
     share; 10,000,000 shares authorized;
     4,444,438 shares issued                        11,111         11,111

   Additional paid-in capital                    9,377,508      9,377,508
   Accumulated deficit                          (4,293,630)   (5,144,009)
                                                 5,094,989      4,244,610
   Less: accumulated other
     comprehensive loss                          1,499,203      1,499,203
     treasury stock, 235 shares                        165            165
                                                 3,595,621      2,745,242
                                               $20,616,931   $ 18,165,812




Note:  The balance sheet at January 3, 2004 has been derived from the audited
consolidated financial statements at that date.

  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, +1-860-677-

2603



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

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