ELMWOOD PARK, N.J., Sept. 25 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced higher sales and earnings for fiscal 2007.
Fiscal 2007 Highlights
-- Net Income 69% increase to $1,960,000 (Fiscal 2006: $1,163,000)
-- EPS 65% increase in fully diluted GAAP earnings per common share of
$1.04 (Fiscal 2006: $0.63)
-- Net Sales 21% increase to $23,852,000 (Fiscal 2006: $19,723,000)
-- Backlog 44% increase to $29,876,000 (Fiscal 2006: $20,800,000) "Our 21% sales growth is indicative of the continued strong customer requirements for the engine components we manufacture," said Kreisler CEO Michael Stern. "We experienced double-digit sales increases in all three of our industry market areas -- commercial aircraft engines, military aircraft engine and industrial gas turbines. Our June 30, 2007 backlog of almost $30,000,000 increased 44%." Stern added, "Our net income growth of 69% reflects efficiencies achieved from higher production rates. We have also benefited from lower growth in certain costs such as purchased materials as well as lower costs attributable to detail components purchased by Kreisler Industrial from Kreisler Polska. By the end of fiscal 2007 we implemented production cells for most of our U.S. manufacturing operations which we believe will streamline our processes. During fiscal 2008 our operational focus is to improve our manufacturing operations resulting in higher quality and on-time delivery." Stern noted that, "Our purchases of $1,500,000 in capital equipment represented an increase of $1,000,000 compared to fiscal 2006. We expect to continue making appropriate capital equipment purchases using our own available resources as well as external sources of funding." The Company reported a sales increase of 21% to $23,852,000 for the year ended June 30, 2007 compared to sales of $19,723,000 for the year ended June 30, 2006. Net income increased 69% to $1,960,000. Income from operations increased to $3,069,000 compared to the prior year income from operations of $1,875,000, an increase of $1,194,000 or 64%. Gross margin increased to $4,954,000 compared to the prior year gross margin of $3,148,000, an increase of $1,806,000 or 57%. The Company reported diluted earnings per share of $1.04 compared to the prior year earnings per share of $0.63.
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.
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.
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Audited) Years ended June 30, 2007 2006 Net Sales $23,852,200 $19,723,254 Cost of goods sold 18,897,767 16,575,023
Selling, general and
administrative expenses 1,885,423 1,272,901 Total Costs and Expenses 20,783,190 17,847,924 Income (loss) from operations 3,069,010 1,875,330 Interest and other income 199,941 117,758
Interest and other expenses (57,143) (74,636) Income before income tax expense 3,211,808 1,918,452 Income taxes (1,251,410) (755,000) Net income (loss) $ 1,960,398 $1,163,452 Earnings per common share:
Net income - basic $1.06 $0.64
Net income - diluted $1.04 $0.63 Weighted average common shares - basic 1,842,031 1,827,620
Weighted average common shares - diluted 1,876,781 1,851,355 Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Audited) June 30, 2007 June 30, 2006
Assets
Cash and cash equivalents $5,068,325 $3,295,947
Short-term investments 550,000 --
Accounts receivable - trade (net) 2,366,177 4,480,295
Inventories 5,546,983 3,253,420
Deferred tax asset 96,312 42,654
Other current assets 66,200 109,814
Total Current Assets 13,693,997 11,182,130 Property, plant and equipment, net 2,425,098 1,590,879
Deferred tax asset, non-current 123,942 238,989
Total Non-Current Assets 2,549,040 1,829,868
$16,243,037 $13,011,998 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $1,130,990 $819,974
Accrued expenses 520,540 483,030
Deferred revenue 500,000 --
Product warranties 148,185 --
Income taxes payable -- 59,820
Line of credit payable -- 54,810
Obligation under capital leases 115,731 103,643
Total current liabilities 2,415,446 1,521,277 Obligation under capital leases 258,343 358,193
Accrued environmental cost 426,117 407,577
Total long term obligations 684,460 765,770 Total stockholders' equity 13,143,131 10,724,951
$16,243,037 $13,011,998
DATASOURCE: Kreisler Manufacturing Corporation CONTACT: Ned Stern, Chief Financial Officer, Kreisler Manufacturing Corporation, +1-201-791-0700, X222 Web site: http://www.kreisler-ind.com/
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