Edac Technologies Corp. (EDAC, Financial) filed Quarterly Report for the period ended 2009-04-04.
EDAC TECHNOLOGIES CORP. currently offers design and manufacturing services for the aerospace industry in areas such as special tooling equipment and gauges and components used in themanufacture assembly and inspection of jet engines. Edac also offers design and manufacturing services for the medical instruments industry in such areas as components used in the manufacture of medical instruments and special tooling. Edac also designs and manufactures specialized machines for a variety of other applications. Edac Technologies Corp. has a market cap of $11.8 million; its shares were traded at around $2.46 with a P/E ratio of 10.7 and P/S ratio of 0.3.
Sales to aerospace customers decreased $1,497,000, or 17.7%, for the three month period ended April 4, 2009, as compared to the three month period ended March 29, 2008, primarily due to decreased sales within the Apex Machine Tool product line to aerospace customers and by the decrease in shipments of certain commercial jet engine parts resulting from modification of delivery schedules on the part of the customers. While the first quarter sales to the aerospace market decreased by $377,000 from the fourth quarter of 2008, we believe based on our customers current schedules that sales to the aerospace market for the second quarter of 2009 will improve over the first quarter of 2009.
Impacting operating cash flow for the first three months of 2009 was the use of cash for working capital items of $450,000. The Companys accounts receivable decreased by $824,000 due to lower sales levels and it received refundable federal income taxes in the amount of $525,000. This was offset by an increase in inventory of $1,257,000, mainly due to the receipt of raw material for our aerospace orders.
Cash used in investing activities reflects deposits placed on and the acquisition of machinery and equipment. Capital expenditures, including deposits, for the current fiscal year are targeted at $4.0 to $6.3 million.
During the three months ended April 4, 2009, payments of $590,000 against term debt were offset by borrowings on the equipment line of credit totaling $774,000. Amounts advanced on the equipment line of credit will convert to a term note on July 31, 2009, unless converted earlier at the option of the Company.
As of April 4, 2009, approximately $2,448,000 was outstanding on the equipment line of credit with $5,000,000 and approximately $2,252,000 available for additional borrowings on the revolving line of credit and the equipment line of credit, respectively.
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EDAC TECHNOLOGIES CORP. currently offers design and manufacturing services for the aerospace industry in areas such as special tooling equipment and gauges and components used in themanufacture assembly and inspection of jet engines. Edac also offers design and manufacturing services for the medical instruments industry in such areas as components used in the manufacture of medical instruments and special tooling. Edac also designs and manufactures specialized machines for a variety of other applications. Edac Technologies Corp. has a market cap of $11.8 million; its shares were traded at around $2.46 with a P/E ratio of 10.7 and P/S ratio of 0.3.
Highlight of Business Operations:
As of April 4, 2009, the Companys total sales backlog was approximately $53,400,000 compared to $52,400,000 as of January 3, 2009. Backlog consists of accepted purchase orders that are cancelable by the customer without penalty, except for payment of costs incurred. The Company presently expects to complete approximately $22,000,000 of its April 4, 2009 backlog during the remainder of the 2009 fiscal year. The remaining $31,400,000 of backlog is deliverable in fiscal year 2010 and beyond.Sales to aerospace customers decreased $1,497,000, or 17.7%, for the three month period ended April 4, 2009, as compared to the three month period ended March 29, 2008, primarily due to decreased sales within the Apex Machine Tool product line to aerospace customers and by the decrease in shipments of certain commercial jet engine parts resulting from modification of delivery schedules on the part of the customers. While the first quarter sales to the aerospace market decreased by $377,000 from the fourth quarter of 2008, we believe based on our customers current schedules that sales to the aerospace market for the second quarter of 2009 will improve over the first quarter of 2009.
Impacting operating cash flow for the first three months of 2009 was the use of cash for working capital items of $450,000. The Companys accounts receivable decreased by $824,000 due to lower sales levels and it received refundable federal income taxes in the amount of $525,000. This was offset by an increase in inventory of $1,257,000, mainly due to the receipt of raw material for our aerospace orders.
Cash used in investing activities reflects deposits placed on and the acquisition of machinery and equipment. Capital expenditures, including deposits, for the current fiscal year are targeted at $4.0 to $6.3 million.
During the three months ended April 4, 2009, payments of $590,000 against term debt were offset by borrowings on the equipment line of credit totaling $774,000. Amounts advanced on the equipment line of credit will convert to a term note on July 31, 2009, unless converted earlier at the option of the Company.
As of April 4, 2009, approximately $2,448,000 was outstanding on the equipment line of credit with $5,000,000 and approximately $2,252,000 available for additional borrowings on the revolving line of credit and the equipment line of credit, respectively.
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