ELMWOOD PARK, N.J., Sept. 28 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced sales and earnings growth for FY2005. Operating income improved to $243,000 versus a prior year loss of $1.1 million, an improvement of $1.3 million. Sales increased 18% to $14.4 million. Net income totaled $170,000 compared to the prior year loss of $660,000. The Company reported earnings per share of $0.10 compared to the prior year loss of $0.37 per share.
"Our latest fiscal year resulted in positive steps for the Company," said Kreisler CEO Michael Stern. "We experienced significant sales growth in our aerospace markets and a return to overall profitability. Sales of military- related components increased 29% compared to the prior year. Our sales to commercial aircraft engine programs increased 7% during this same period. The Company's order backlog as of June 30, 2005 increased 37% to $16.8 million compared to a $12.3 million order backlog a year earlier. Cash on hand as of June 30, 2005 of $3.4 million was unchanged." Stern added, "2005 saw the creation of our new European subsidiary, Kreisler Polska. In six months, Kreisler Polska has become a productive part of the Company and an important supplier to our Kreisler Industrial Corporation subsidiary. We believe Kreisler Polska will make positive contributions to the Company." Stern added, "The Company continues the implementation of more efficient manufacturing processes throughout our operations with the goal of increasing productivity and reducing scrap materials. The implementation of these processes will bring added benefits to the Company, as we seek to improve our position in a global and competitive industry. We believe cost management and superior operating performance are critical parameters for achieving success." Kreisler Manufacturing Corporation (NASDAQ:KRSL) 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.
Contact: Ned Stern - 201-791-0700 X222
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, "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) Year Ended June 30, 2005 2004 Revenues $14,447,801 $12,295,688 Cost of goods sold 13,848,357 12,722,800
Selling, general and administrative
expenses 356,395 679,726 Income (loss) from operations 243,049 (1,106,838) Other income:
Interest 74,141 49,990
Income (loss) before income taxes 317,190 (1,056,848) Income tax (expense) benefit (147,600) 398,600
Net income (loss) $169,590 $(658,248)
Income (loss) per share:
Net income (loss) - basic shares $0.10 $(0.37)
Net income (loss) - diluted shares $0.10 $(0.37) Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Audited) Year Ended Year Ended
6/30/2005 6/30/2004
Assets
Cash and cash equivalents $3,409,552 $3,367,494
Accounts receivable 3,201,376 2,563,526
Inventories 2,817,894 2,491,713
Other current assets 395,551 1,027,221
Total Current Assets 9,824,373 9,449,954
Property, plant & equip., at cost less
acc. depreciation 1,491,166 941,400
Deferred tax asset, non-current 261,800 264,900
Total Non-Current Assets 1,752,966 1,206,300
$11,577,339 $10,656,254 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $1,049,613 $528,099
Accrued expenses 112,837 302,565
Obligation under capital leases 76,869 --
Accrued environmental cost 426,825 158,574
Total Current Liabilities 1,666,144 989,238 Obligation under capital leases 345,978 --
Accrued environmental cost 16,541 443,369
Total long-term obligations 362,519 443,369 Total Stockholders' Equity 9,548,676 9,223,647
$11,577,339 $10,656,254
DATASOURCE: Kreisler Manufacturing Corporation CONTACT: Ned Stern, Kreisler Manufacturing Corporation, +1-201-791-0700, ext. 222, or Web site: http://www.kreisler-ind.com/
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