ELMWOOD PARK, N.J., Feb. 14 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (Nasdaq: KRSL) announced sales for the three months ended December 31, 2005 of $4.4 million and net income of $290,000 . Operating income for the period improved to $436,000 as compared to an operating loss of $(247,000) for the three months ended December 31, 2004 . Sales of $4.4 million represent a year-over-year sales increase of 37%. For the six months ended December 31, 2005 , the Company's sales totaled $8.6 million compared to $6.4 million for the same period last year, an increase of 34%. Net income for the six months ended December 31, 2005 totaled $480,000 compared to the prior year net loss of $(27,000). The Company reported earnings per share of $0.16 and $0.26 , respectively, for the three and six months ended December 31, 2005 compared to a loss per share of $(0.08) and $(0.02), respectively, for the three and six months ended December 31, 2004 .
'The improvement in our sales and earnings that began during the last
fiscal year has continued through our most recent quarter,' said Kreisler CEO
Stern added, 'The Company's order backlog as of December 31, 2005 increased 23% to $17.5 million compared to a $14.2 million order backlog a year earlier. Backlog increased 4% compared to the $16.8 million backlog at June 30, 2005 . Cash on-hand of $3.7 million at December 31, 2005 was $300,000 higher than June 30 , 2005.'
Stern also noted that the Company's Kreisler Industrial Corporation subsidiary achieved an important milestone during the quarter with the shipment of the first set of fuel manifolds for the Trent 1000 engine used on the Boeing 787 Dreamliner. The fuel manifolds were shipped under a 10-year long-term agreement.
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, NJ, and Kreisler Polska Sp. z o.o located in Krakow, Poland .
Contact: Ned Stern - 201-791-0700 X222
eastern@kreisler-ind.com
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenues $4,427,267 $3,237,765 $8,556,507 $6,351,688
Cost of goods sold 3,653,883 3,242,474 7,205,415 5,934,693
Selling, general and
administrative expenses 337,222 242,741 620,387 490,356
Total Costs and Expenses 3,991,105 3,485,215 7,825,802 6,425,049
Income (loss) from operations 436,162 (247,450) 730,705 (73,361)
Other income:
Interest 29,607 21,737 55,290 32,844
Income (loss) before income
taxes 465,769 (225,713) 785,995 (40,517)
Income tax (expense) benefit (175,975) 84,000 (305,575) 14,000
Net income (loss) $289,794 (141,713) $480,420 $(26,517)
Income per share:
Net income - basic shares $0.16 $(0.08) $0.26 $(0.02)
Net income - diluted shares $0.16 $(0.08) $0.26 $(0.02)
Certain amounts in prior years' financial statements have been
reclassified to conform to December 31, 2005 presentation. The Company
has reclassified certain employee payroll and benefit expenses from Cost
of goods sold to Selling, general and administrative expenses. This
resulted in an increase in Selling, general and administrative expenses of
$134,000 and $251,000, respectively, for the three and six months ended
December 31, 2004 and a corresponding equivalent decrease in Cost of goods
sold. This reclassification has no effect on the net income of the
Company for the three and six months ended December 30, 2004.
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited Audited
Six Months
Ended Year Ended
12/31/2005 6/30/2005
Assets
Cash and cash equivalents $3,722,001 $3,409,552
Accounts receivable 3,013,289 3,201,376
Inventories 3,314,546 2,817,894
Other current assets 319,856 395,551
Total Current Assets $10,369,692 9,824,373
Property, plant & equip., at cost less
acc. depreciation 1,490,477 1,491,166
Deferred tax asset, non-current 181,800 261,800
Total Non-Current Assets 1,672,277 1,752,966
Total Assets $12,041,969 $11,577,339
Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $775,212 $1,049,613
Accrued expenses 227,457 112,837
Income taxes payable 256,575 --
Obligation under capital leases 79,912 76,869
Accrued environmental cost -- 426,825
Total Current Liabilities 1,339,156 1,666,144
Obligation under capital leases 305,246 345,978
Accrued environmental cost 366,890 16,541
Total long term obligations 672,136 362,519
Total Stockholders' Equity 10,030,677 9,548,676
Total Liabilities and Stockholders'
Equity $12,041,969 $11,577,339
Forward-Looking Statements
Certain oral statements made by management of the Company from time to time and certain statements contained herein or in 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 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.
SOURCE Kreisler Manufacturing Corporation
