ELMWOOD PARK, N.J., May 15 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (Nasdaq: KRSL) announced sales for the nine months ended March 31, 2006 of $14.0 million and net income of $922,000 compared to sales for the nine months ended March 31, 2005 of $10.2 million and net income of $72,000 . Operating income for the period improved to $1.5 million as compared to operating income of $90,000 for the nine months ended March 31, 2005 . Year-over-year sales increased 37%. For the three months ended March 31, 2006 , the Company's sales totaled $5.4 million compared to $3.8 million for the same period last year, an increase of 42%. Net income for the three months ended March 31, 2006 totaled $441,000 compared to the prior year net income of $99,000 . The Company reported diluted earnings per share of $0.24 and $0.50 , respectively, for the three and nine months ended March 31, 2006 compared to diluted earnings per share of $0.05 and $0.04 , respectively, for the three and nine months ended March 31, 2005 .
'The Company continued to benefit from sales growth in the markets in
which it participates,' said Kreisler CEO
Stern added, 'The Company's order backlog as of March 31, 2006 increased 36% to $20.9 million compared to a $15.4 million order backlog a year earlier. Backlog increased 24% compared to the $16.8 million backlog at June 30, 2005 . The $375,000 decline in cash on hand from $3.4 million as of June 30, 2005 to $3.0 million at March 31, 2006 reflects the increased working capital needs associated with the Company's sales growth, including the increased reliance on Kreisler Polska as a supplier of machined components to Kreisler Industrial.'
Stern also noted that Kreisler Industrial continued shipping fuel manifolds for the Trent 1000 engine used on the Boeing 787 Dreamliner and is scheduled to produce approximately 2 engine sets per month through December 2007 . The Boeing 787 Dreamliner is scheduled to enter service in 2008. 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, New Jersey, and Kreisler Polska Sp. z o.o located in Krakow, Poland .
Contact: Ned Stern - 201-791-0700 X222
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
March 31, December 31,
2006 2005 2006 2005
Revenues $5,396,317 $3,800,795 $13,952,824 $10,152,483
Cost of goods sold 4,379,805 3,454,906 11,585,220 9,389,599
Selling, general and
administrative
expenses 325,618 194,989 901,706 672,784
Total costs and
expenses 4,705,423 3,649,895 12,486,926 10,062,383
Income (loss) from
operations 690,894 150,900 1,465,898 90,100
Other income and
(expense):
Interest income 31,970 20,278 87,229 53,121
Interest expense (7,375) (8,279) (51,674) (20,840)
Total interest
income and
(expense) 24,595 11,999 35,555 32,281
Income before income
taxes 715,489 162,899 1,501,453 122,381
Income tax (expense)
benefit (274,261) (64,000) (579,836) (50,000)
Net income (loss) $441,228 $98,899 $921,617 $72,381
Income per share:
Net income - basic
shares $0.24 $0.06 $0.50 $0.04
Net income - diluted
shares $0.24 $0.05 $0.50 $0.04
Certain amounts in prior years' financial statements have been
reclassified to conform to March 31, 2006 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 $124,154 and $375,026, respectively, for the three and nine months
ended March 31, 2005 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 nine months ended March 31, 2005. The Company
has also separated interest expense from selling, general and
administrative expenses for the three and nine months ended March 31,
2006 and March 31, 2005. This separation increases income from
operations but has no effect on the income before income taxes of the
Company for the three months and nine months ended March 31, 2006 and
March 31, 2005.
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited Audited
Nine Months
Ended Year Ended
3/31/2006 6/30/2005
Assets
Cash and cash equivalents $3,034,905 $3,409,552
Accounts receivable 4,182,947 3,201,376
Inventories 3,826,330 2,817,894
Other current assets 306,312 395,551
Total Current Assets 11,350,494 9,824,373
Property, plant & equip., at cost less
acc. depreciation 1,604,096 1,491,166
Deferred tax asset, non-current 181,652 261,800
Total Non-Current Assets 1,785,748 1,752,966
Total Assets 13,136,242 $11,577,339
Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade 1,039,438 $1,049,613
Accrued expenses 406,009 112,837
Income taxes payable 286,352 --
Line of credit payable 76,270 --
Obligation under capital leases 101,897 76,869
Accrued environmental cost -- 426,825
Total Current Liabilities 1,909,966 1,666,144
Obligation under capital leases 381,354 345,978
Accrued environmental cost 366,890 16,541
Total long term liabilities 748,244 362,519
Total Stockholders' Equity 10,478,032 9,548,676
Total Liabilities and Stockholders'
Equity 13,136,242 $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
