ELMWOOD PARK, N.J., Feb. 14, 2008 (PRIME NEWSWIRE) -- Kreisler Manufacturing Corporation (Nasdaq:KRSL) announced sales and earnings for the three and six months ended December 31, 2007.
Highlights
Three Months Ended December 31, 2007
* Net Sales 26% increase to $7,567,000 compared to $6,015,000 at
Dec. 31, 2006
* Net income $543,000 compared to $607,000 at Dec. 31, 2006
* EPS $0.29 fully diluted earnings per common share compared
to $0.33 at Dec. 31, 2006
* Backlog 38% increase to $32,100,000 compared to $23,300,000 at
Dec 31, 2006
Six Months Ended December 31, 2007
* Net Sales 29% increase to $14,264,000 compared to $11,098,000 at
Dec. 31, 2006
* Net income 3% increase to $1,029,000 compared to $1,000,000 at
Dec. 31, 2006
* EPS Unchanged fully diluted earnings per common share of
$0.54
"All three of our industry market areas -- components for military aircraft engines, commercial aircraft engines and industrial gas turbines -- experienced period-over-period double digit sales growth," said Kreisler CEO Michael Stern. "We benefited from higher margin development work during the second quarter of the prior fiscal year, the reduction of which, coupled with changes in our product mix, impacted our margins in the latest fiscal quarter.
"Our order backlog as of December 31, 2007 increased 38% to $32,100,000 compared to $23,300,000 as of December 31, 2006. Approximately 70% of our order backlog is scheduled to ship over the next 12 months. Our December 31, 2007 cash on hand and short-term investments of $7,999,000 increased $2,380,000 compared to June 30, 2007 due to strong working capital management and advanced payments from our customers."
Stern further noted that, "We continue to pursue organic sales opportunities and other strategic initiatives while seeking to manage our costs through further productivity improvements and working with our supply chain. We continue to expand our global manufacturing capabilities and expect Kreisler Polska's tube and pipe facility, when operational in the second half of calendar year 2008, to provide a platform to serve existing and future U.S and European customers."
Kreisler Manufacturing Corporation is a manufacturer of precision metal components and assemblies for use in military and commercial aircraft engines and industrial gas turbines. These products primarily include tube and manifold assemblies. The Company has two wholly owned subsidiaries: Kreisler Industrial Corporation located in Elmwood Park, New Jersey, and Kreisler Polska Sp. z o.o located in Krakow, Poland.
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended Six Months Ended
December 31, December 31,
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2007 2006 2007 2006
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Net Sales $7,566,846 $6,015,331 $14,263,793 $11,098,316
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Cost of goods sold 6,081,882 4,512,828 11,530,343 8,677,463
Selling, general
and administrative
expenses 633,786 481,661 1,118,930 780,257
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Total Costs
and Expenses 6,715,668 4,994,489 12,649,273 9,457,720
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Income from
operations 851,178 1,020,842 1,614,520 1,640,596
Interest and
other income 61,571 37,314 125,286 85,423
Interest and
other expenses (6,311) (17,926) (18,668) (31,485)
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Income before
income taxes 906,438 1,040,230 1,721,138 1,694,534
Income taxes (363,919) (433,000) (691,859) (695,000)
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Net income $542,519 $607,230 $1,029,279 $999,534
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Net income per
common share:
Net income -
basic shares $0.29 $0.33 $0.55 $0.55
Net income -
diluted shares $0.29 $0.33 $0.54 $0.54
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Weighted average
common shares -
basic 1,867,948 1,831,279 1,867,948 1,830,863
Weighted average
common shares -
diluted 1,896,086 1,854,337 1,898,283 1,854,493
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Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
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Dec 31, 2007 June 30, 2007
(Unaudited) (Audited)
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Assets
Cash and cash equivalents $7,448,818 $5,068,325
Short-term investments 550,000 550,000
Accounts receivable - trade (net) 2,570,081 2,366,177
Inventories 5,655,761 5,546,983
Deferred tax asset -- 96,312
Other current assets 567,631 66,200
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Total current assets 16,792,291 13,693,997
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Property, plant and equipment, net 1,759,617 2,425,098
Deferred tax asset 123,942 123,942
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Total non-current assets 1,883,559 2,549,040
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$18,675,850 $16,243,037
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Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $1,269,279 $1,130,990
Accrued expenses 571,404 520,540
Deferred tax liability 45,402 --
Deferred revenue 1,500,000 500,000
Product warranties -- 148,185
Income taxes payable 161,692 --
Obligations under capital leases,
current portion 114,754 115,731
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Total current liabilities 3,662,531 2,415,446
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Obligations under capital leases,
net of current portion 201,466 258,343
Accrued environmental cost 435,463 426,117
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Total long-term liabilities 636,929 684,460
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Total stockholders' equity 14,376,390 13,143,131
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$18,675,850 $16,243,037
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Forward-Looking Statements
Certain oral statements made by management of Kreisler Manufacturing Corporation (the "Company") from time to time and certain statements contained herein or in other periodic reports filed by the Company with the Securities and Exchange Commission are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to results of operations and the business of the Company. All such statements, other than statements of historical facts, including those regarding market trends, the Company's financial position and results of operations, business strategy, projected costs, and plans and objectives of management for future operations, are forward-looking statements. In general, such statements are identified by the use of forward-looking words or phrases including, but not limited to, "estimates," "intended," "will," "should," "may," "believes," "expects," "expected," "anticipates," and "anticipated" or the negative thereof or variations thereon or similar terminology. These forward-looking statements are based on the Company's current expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These forward-looking statements represent the Company's current judgment. The Company disclaims any intent or obligation to update its forward looking statements. Because forward-looking statements involve risks and uncertainties, the Company's actual results could differ materially from those set forth in or underlying the forward-looking statements.
CONTACT: Kreisler Manufacturing Corporation
Ned Stern, Chief Financial Officer
(201) 791-0700 X222
