ELMWOOD PARK, N.J., Feb. 14 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (Nasdaq: KRSL) announced sales and earnings for the three and six months ended December 31, 2006 .
Highlights
Second Quarter 2006
* 35% increase in Q2 06 revenues to $6.015 million (Q2 05: $4.427m)
* Net income for Q2 06 increased by 109% to $0.607 million (Q2 05:
$0.290m)
* 106% increase in fully diluted earnings per common share of $0.33 for
Q2 06 (Q2 05: $0.16)
* Backlog rose to $23.3 million at December 31, 2006, an increase of 33%
from prior year levels.
First Half Results
* 35% increase in first half of 2006 revenues to $11.1 million (2005:
$8.56m)
* Net income for the first half of 2006 increased by 108% to
$0.999 million (2005: $0.480 million)
* 106% increase in fully diluted earnings per common share of $0.54 for
the first half of 2006 (2005: $0.26)
'Our financial results continue to reflect the strong product demand in
the aerospace and industrial gas turbine markets,' said Kreisler CEO
We are also pleased to report that our latest backlog of $23.3 million , an increase of 33% compared to our backlog of $17.5 million as of December 31, 2005 , and includes new orders received by our Kreisler Polska subsidiary. These are their first aerospace orders received from an unrelated company and highlight the opportunities for Kreisler within the EU aerospace market.'
The Company reported a sales increase of 30% to $11,098,000 for the six months ended December 31, 2006 compared to sales of $8,557,000 for the six months ended December 31, 2005 . Net income more than doubled to $1,000,000 . Operating income increased to $1,641,000 compared to the prior year operating income of $775,000 , an increase of $866,000 or 112%. The Company reported diluted earnings per share of $0.54 compared to the prior year earnings per share of $0.26 .
'Our sales for the three and six months ended December 31, 2006 reached $6,000,000 and $11,098,000 compared to sales of $4,400,000 and $8,557,000 for the three and six months ended December 31, 2005 . Our net income for these same periods improved to $607,000 and $1,000,000 , respectively, compared to $290,000 and $480,000 , respectively, for the prior year.'
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)
Three Months Ended Six Months Ended
December 31, December 31,
2006 2005 2006 2005
Net Sales $6,015,331 $4,427,267 $11,098,316 $8,556,507
Cost of goods sold 4,512,828 3,653,883 8,677,463 7,205,415
Selling, general and
administrative
expenses 481,661 301,864 780,257 576,088
Total Costs and
Expenses 4,994,489 3,955,747 9,457,720 7,781,503
Income (loss) from
operations 1,020,842 471,520 1,640,596 775,004
Interest and other
income 37,314 29,607 85,423 55,290
Interest and other
expenses (17,926) (35,358) (31,485) (44,299)
Income before income
taxes 1,040,230 465,769 1,694,534 785,995
Income taxes (433,000) (175,975) (695,000) (305,575)
Net income (loss) $607,230 $289,794 $999,534 $480,420
Net income per common
share:
Net income - basic
shares $0.33 $0.16 $0.55 $0.26
Net income - diluted
shares $0.33 $0.16 $0.54 $0.26
Certain amounts in prior years' financial statements have been
reclassified to conform to the current presentation. The Company has
separated interest expense from selling, general and administrative
expenses for the three and six months ended December 31, 2005. This
separation increases income from operations but has no effect on the
income before income taxes of the Company for the three and six months
ended December 31, 2005.
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
12/31/2006 6/30/2006
(Unaudited) (Audited)
Assets
Cash and cash equivalents $3,873,803 $3,295,947
Accounts receivable, net 4,072,975 4,480,295
Inventories 3,851,521 3,253,420
Other current assets 112,144 152,468
Total Current Assets 11,910,443 11,182,130
Property, plant and equipment, net 2,138,625 1,590,879
Deferred tax asset, non-current 186,564 238,989
Total Non-Current Assets 2,325,189 1,829,868
$14,235.632 $13,011,998
Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $964,573 $819,974
Accrued expenses 379,261 483,030
Income taxes payable 238,336 59,820
Line of credit payable -- 54,810
Obligation under capital leases 113,471 103,643
Total current liabilities 1,695,641 1,521,277
Obligation under capital leases 360,214 358,193
Accrued environmental cost 407,577 407,577
Total long term obligations 767,791 765,770
Total stockholders' equity 11,772,200 10,724,951
$14,234,632 $13,011,998
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
