ELMWOOD PARK, N.J., Sept. 28 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced sales and earnings growth for fiscal 2006. Record sales of $19,700,000 were reported, an increase of 37% compared to fiscal 2005 sales of $14,400,000. Operating income improved to $1,875,000 compared to the prior year operating income of $243,000, an increase of $1,632,000. Net income totaled $1,160,000 compared to prior year net income of $170,000. The Company reported basic earnings per share of $0.64 compared to the prior year amount of $0.10 per share.
"Our latest fiscal year results reflect the continued strength of our aerospace markets," said Kreisler CEO Michael Stern. "We are pleased with our year-over-year sales and profitability growth. Our Kreisler Industrial and Kreisler Polska subsidiaries responded well to this sales increase. Sales of commercial, military and industrial gas turbine-related components increased 45%, 17% and 133%, respectively, compared to the prior year. The Company's order backlog as of June 30, 2006 increased 24% to $20,800,000 compared to $16,800,000. Cash on-hand as of June 30, 2006 of $3,296,000 declined $114,000 compared to June 30, 2005." Stern added "The Company will continue to invest in our manufacturing capabilities at Kreisler Industrial and Kreisler Polska with estimated fiscal 2007 capital expenditures of $1,200,000." Stern also noted that, "Our fiscal 2006 year-end results were negatively impacted by charges totaling $286,000 due to changes in our estimates for inventory obsolescence, an increase in the cost of the environmental remediation due to a change in payment timing and an increase in the allowance for accounts receivable that are unlikely to be collected by the Company.
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
(Audited) Year Ended June 30, 2006 2005 Net sales $19,723,254 $14,447,801 Cost of goods sold 16,575,023 13,342,311
Selling, general and administrative expenses 1,272,901 862,441
Total costs and expenses 17,847,924 14,204,752
Income (loss) from operations 1,875,330 243,049 Other Income and (expense):
Interest and other income 117,758 74,141
Interest and other expenses (74,636) --
Income (loss) before income taxes 1,918,452 317,190 Income tax (expense) benefit (755,000) (147,600)
Net income $1,163,452 $169,590
Income per share:
Net income - basic shares $0.64 $0.10
Net income - diluted shares $0.63 $0.10 Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Audited) Year Ended Year Ended
6/30/2006 6/30/2005
Assets
Cash and cash equivalents $3,295,947 $3,409,552
Accounts receivable, net 4,480,295 3,201,376
Inventories 3,253,420 2,817,894
Other current assets 152,468 395,551
Total Current Assets 11,182,130 9,824,373
Property, plant and equipment, net 1,590,879 1,491,166
Deferred tax asset, non-current 238,989 261,800
Total Non-Current Assets 1,829,868 1,752,966
$13,011,998 $11,577,339 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $819,974 $1,049,613
Accrued expenses 483,030 112,837
Income taxes payable 59,820 --
Line of credit payable 54,810 --
Obligation under capital leases 103,643 76,869
Accrued environmental cost -- 426,825
Total current liabilities 1,521,277 1,666,144 Obligation under capital leases 358,193 345,978
Accrued environmental cost 407,577 16,541
Total long term obligations 765,770 362,519 Total stockholders' equity 10,724,951 9,548,676
$13,011,998 $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. DATASOURCE: Kreisler Manufacturing Corporation CONTACT: Ned Stern of Kreisler Manufacturing Corporation, +1-201-791-0700 X222 Web site: http://www.kreisler-ind.com/
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