Edac Technologies Corp. (EDAC, Financial) filed Quarterly Report for the period ended 2010-07-03.
Edac Technologies Corp. has a market cap of $22.1 million; its shares were traded at around $4.56 with a P/E ratio of 2.8 and P/S ratio of 0.5. EDAC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Sales for the EDAC Machinery product line increased $696, or 96.9%, and $1,396, or 110.4% for the three and six month periods ended July 3, 2010 as compared to the three and six month periods ended July 4, 2009 due primarily to the Companys August 10, 2009 acquisition of Service Network Incorporated (SNI), which contributed $468 and $854, respectively, for the three and six month periods ended July 3, 2010. The Company believes, based on indications from its customers, that demand for this product line will continue to improve for the remainder of 2010.
As of July 3, 2010, the Companys total sales backlog was approximately $135,100 compared to $125,900, as of January 2, 2010. Backlog consists of accepted purchase orders and long-term contracts that are cancelable by the customer without penalty, except for payment of costs incurred. The Company presently expects to complete approximately $29,000 of its July 3, 2010 backlog during the remainder of the 2010 fiscal year. The remaining $106,100 of backlog is deliverable in fiscal year 2011 and beyond. The increase in backlog was mainly due to additional aerospace orders.
Impacting cash flow for the first six months of 2010 was cash used by working capital items in the amount of $3,501, which consisted primarily of increases in accounts receivable and inventory of $2,796 and $1,061, respectively, due to the increase in sales and backlog.
During the six months ended July 3, 2010, payments of $948 against term debt were offset by borrowings on the revolving line of credit totaling $859 and the issuance of long-term debt in the amount of $2,243. Amounts advanced on the equipment line of credit converted to a term note on July 20, 2010.
On July 20, 2010, the Companys equipment line of credit with TD Bank N.A. was amended to provide up to $4,700 for eligible equipment purchases during the period July 21, 2010 through July 31, 2011. Amounts advanced on the equipment line of credit will convert to a term note on July 31, 2011, unless converted earlier at the option of the Company, with monthly payments of principal and interest in an amount to amortize the then existing principal balance in 60 equal monthly payments including interest at the then Federal Home Loan Bank of Boston 5 year Regular Amortizing Advance Rate plus 3%. As of July 20, 2010, advances on the equipment line of credit in the amount of $2,243 were converted to a term note due in 60 monthly installments of $42 including interest at 4.88%.
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Edac Technologies Corp. has a market cap of $22.1 million; its shares were traded at around $4.56 with a P/E ratio of 2.8 and P/S ratio of 0.5. EDAC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Sales for the EDAC Aero product line increased $4,394 or 53.7%, and $11,761, or 87.9% for the three and six month periods ended July 3, 2010, respectively, as compared to the three and six month periods ended July 4, 2009. The increase was due to the Companys May 27, 2009 acquisition of AERO which contributed $6,931 and $13,211 for the three and six month periods ended July 3, 2010. AEROs contribution for both the three and six month periods ended July 4, 2009 was $2,369. This was slightly offset by a decrease in shipments in our repair operation.Sales for the EDAC Machinery product line increased $696, or 96.9%, and $1,396, or 110.4% for the three and six month periods ended July 3, 2010 as compared to the three and six month periods ended July 4, 2009 due primarily to the Companys August 10, 2009 acquisition of Service Network Incorporated (SNI), which contributed $468 and $854, respectively, for the three and six month periods ended July 3, 2010. The Company believes, based on indications from its customers, that demand for this product line will continue to improve for the remainder of 2010.
As of July 3, 2010, the Companys total sales backlog was approximately $135,100 compared to $125,900, as of January 2, 2010. Backlog consists of accepted purchase orders and long-term contracts that are cancelable by the customer without penalty, except for payment of costs incurred. The Company presently expects to complete approximately $29,000 of its July 3, 2010 backlog during the remainder of the 2010 fiscal year. The remaining $106,100 of backlog is deliverable in fiscal year 2011 and beyond. The increase in backlog was mainly due to additional aerospace orders.
Impacting cash flow for the first six months of 2010 was cash used by working capital items in the amount of $3,501, which consisted primarily of increases in accounts receivable and inventory of $2,796 and $1,061, respectively, due to the increase in sales and backlog.
During the six months ended July 3, 2010, payments of $948 against term debt were offset by borrowings on the revolving line of credit totaling $859 and the issuance of long-term debt in the amount of $2,243. Amounts advanced on the equipment line of credit converted to a term note on July 20, 2010.
On July 20, 2010, the Companys equipment line of credit with TD Bank N.A. was amended to provide up to $4,700 for eligible equipment purchases during the period July 21, 2010 through July 31, 2011. Amounts advanced on the equipment line of credit will convert to a term note on July 31, 2011, unless converted earlier at the option of the Company, with monthly payments of principal and interest in an amount to amortize the then existing principal balance in 60 equal monthly payments including interest at the then Federal Home Loan Bank of Boston 5 year Regular Amortizing Advance Rate plus 3%. As of July 20, 2010, advances on the equipment line of credit in the amount of $2,243 were converted to a term note due in 60 monthly installments of $42 including interest at 4.88%.
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