EDAC Technologies Reports Third Quarter/Nine Months Results|
Year-to-Date Pre-Tax Income Rises 129.4%, Sales up 32.7%
FARMINGTON, Conn.--(BUSINESS WIRE)--Oct. 30, 1998--EDAC Technologies Corporation (NASDAQ NMS: EDAC - news), which designs and manufactures tools, fixtures, special machines, jet engine components, injection molds and spindles, today reported results for its third fiscal quarter and nine months ended Oct. 3, 1998.
Third quarter net income was $279,625, or six cents per diluted share, compared with net income of $511,701, or 12 cents per diluted share for the third quarter of 1997. Sales for the third quarter of 1998 increased 50.6 percent, to $14,163,423, from $9,402,761 for last year's third quarter.
Net income for the nine months rose to $1,602,280, or 36 cents per diluted share, from net income of $1,030,080, or 24 cents per diluted share for the corresponding period of 1997. Nine-month sales were $37,495,437, up 32.7 percent from sales of $28,254,482 for 1997's first nine months.
The company reported a 129.4 percent increase in pre-tax income for the nine months, attributable in part to ongoing diversification of its customer base and the benefits of its continuing implementation of lean manufacturing techniques.
Commenting on the decline in third quarter net income, Edward J. McNerney, EDAC's president and CEO, said, ''We were affected adversely by a postponement, beginning at the end of August, of $3.7 million in orders scheduled for delivery in the third and fourth quarters to a major aerospace customer negatively affected by the Asian financial crisis. Delivery of those orders has been moved to 1999.
''We also incurred costs related to capital improvements at our Apex Machine Tool Company, which EDAC acquired in June 1998. Apex did not contribute significantly to results during the third quarter because of insufficient backlog in the months preceding the acquisition. Orders now have strengthened to a level that will generate satisfactory results for the fourth quarter, and Apex is maximizing its potential through the implementation of lean manufacturing techniques.
''We are very optimistic about the fourth quarter, based on the number of new accounts we are generating from our aggressive marketing efforts; the growing diversity of our customer base and strength of our existing markets; and our participation in new engine and aircraft programs. We are also beginning to realize the economic benefits of stringent cost control programs.''
EDAC Technologies Corporation's Gros-Ite Industries division primarily offers design and manufacturing services for the aerospace industry in such areas as jet engine parts, special tooling, equipment and gauges and components used in the manufacture, assembly and inspection of jet engines. Gros-Ite Spindle specializes in the design, manufacture and repair of precision spindles, which are an integral part of numerous machine tools which are found in virtually any type of manufacturing environment. Apex Machine Tool Company is manufacturing diversified, high-precision fixtures, gauges, dies and molds.
Certain matters described in this report are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
EDAC TECHNOLOGIES CORPORATION
Financial Highlights (Unaudited)
For the Three Months For the Nine Months
Ended (a) Ended (a)
10/3/98 9/30/97 10/3/98 9/30/97
Sales $14,163,423 $9,402,761 $37,495,437 $28,254,482
Net income 279,625 511,701 1,602,280 1,030,080
Basic $.07 $.12 $.38 $.25
Diluted $.06 $.12 $.36 $.24
Basic 4,261,580 4,215,429 4,239,447 4,176,318
Diluted 4,491,149 4,380,091 4,505,544 4,334,208
(a) The company changed its quarter-end dates beginning with the
first quarter of 1998. Quarter-end dates for 1998 are April
4, 1998, July 4, 1998, Oct. 3, 1998, and Jan. 2, 1999. This
change did not result in a material difference for the third
quarter or first nine months of 1998.
(b) Adjusted for 10-percent stock dividend paid July 1, 1998.