Edac Technologies Corp. (EDAC, Financial) filed Quarterly Report for the period ended 2009-07-04.
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 $19.6 million; its shares were traded at around $4.05 with a P/E ratio of 36.9 and P/S ratio of 0.4.
Sales to aerospace customers increased $950,000, or 12.3%, and decreased $548,000, or 3.4%, for the three and six month periods ended July 4, 2009, respectively, as compared to the three and six month periods ended June 28, 2008, due to the inclusion of the sales of the Companys acquisition commencing on May 27th. This was partially offset by the decrease in shipments of certain commercial jet engine parts resulting from modification of delivery schedules on the part of the customers. Sales to non-aerospace customers increased $1,830,000 or 58.9%, for the three month period ended July 4, 2009, as compared to the three month period ended June 28, 2008. Sales to non-aerospace customers decreased $638,000, or 10.9%, for the six month period ended July 4, 2009, as compared to the six month period ended June 28, 2008, primarily due to the decrease in the sales of spindles.
Other Income. The Company recognized a gain on the acquisition of AERO in the amount of $11,875,000. The gain has been offset by $136,000 of acquisition expenses and is reflected in Other income for the three and six months ended July 4, 2009.
Impacting operating cash flow for the first six months of 2009 was the use of cash for working capital items of $812,000. Exclusive of the AERO acquisition, the Companys inventory increased by $1,006,000, mainly due to the receipt of raw material for our aerospace orders. This was offset by the receipt of refundable federal income taxes in the amount of $525,000.
Cash flows provided by financing activities primarily reflect $9.5 million of new debt to finance the Companys business acquisition. Also, during the six months ended July 4, 2009, payments of $1,226,000 against term debt were offset by borrowings on the equipment line of credit totaling $1,109,000. 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 July 4, 2009, $475,000 and approximately $2,783,000 was outstanding on the revolving line of credit and the current equipment line of credit, respectively with $4,525,000 and approximately $1,917,000 available for additional borrowings on the revolving line of credit and the current 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 $19.6 million; its shares were traded at around $4.05 with a P/E ratio of 36.9 and P/S ratio of 0.4.
Highlight of Business Operations:
As of July 4, 2009, the Companys total sales backlog was approximately $134,000,000 compared to $52,400,000 as of January 3, 2009. 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 $26,000,000 of its July 4, 2009 backlog during the remainder of the 2009 fiscal year. The remaining $108,000,000 of backlog is deliverable in fiscal year 2010 and beyond. The increase in the backlog was mainly due to the acquisition of AERO.Sales to aerospace customers increased $950,000, or 12.3%, and decreased $548,000, or 3.4%, for the three and six month periods ended July 4, 2009, respectively, as compared to the three and six month periods ended June 28, 2008, due to the inclusion of the sales of the Companys acquisition commencing on May 27th. This was partially offset by the decrease in shipments of certain commercial jet engine parts resulting from modification of delivery schedules on the part of the customers. Sales to non-aerospace customers increased $1,830,000 or 58.9%, for the three month period ended July 4, 2009, as compared to the three month period ended June 28, 2008. Sales to non-aerospace customers decreased $638,000, or 10.9%, for the six month period ended July 4, 2009, as compared to the six month period ended June 28, 2008, primarily due to the decrease in the sales of spindles.
Other Income. The Company recognized a gain on the acquisition of AERO in the amount of $11,875,000. The gain has been offset by $136,000 of acquisition expenses and is reflected in Other income for the three and six months ended July 4, 2009.
Impacting operating cash flow for the first six months of 2009 was the use of cash for working capital items of $812,000. Exclusive of the AERO acquisition, the Companys inventory increased by $1,006,000, mainly due to the receipt of raw material for our aerospace orders. This was offset by the receipt of refundable federal income taxes in the amount of $525,000.
Cash flows provided by financing activities primarily reflect $9.5 million of new debt to finance the Companys business acquisition. Also, during the six months ended July 4, 2009, payments of $1,226,000 against term debt were offset by borrowings on the equipment line of credit totaling $1,109,000. 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 July 4, 2009, $475,000 and approximately $2,783,000 was outstanding on the revolving line of credit and the current equipment line of credit, respectively with $4,525,000 and approximately $1,917,000 available for additional borrowings on the revolving line of credit and the current equipment line of credit, respectively.
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