ELMWOOD PARK, N.J., Nov. 14 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced sales for the three months ended September 30, 2005 of $4.1 million and net income of $191,000. Operating income for the period improved to $295,000 versus operating income of $174,000 for the three months ended September 30, 2004, an increase of $121,000. Sales increased 33% to $4.1 million. Net income totaled $191,000 compared to the prior year net income of $115,000. The Company reported earnings per share of $0.10 compared to $0.07 earnings per share for the prior year.
"We are pleased by the positive performance of the Company in the first quarter of fiscal year 2006," said Kreisler CEO Michael Stern. "We saw year- over-year sales improvements in all of our market segments -- sales of commercial, military and industrial gas turbine-related components increased 19%, 50% and 4%, respectively. The Company's order backlog as of September 30, 2005 increased 37% to $16.8 million compared to a $12.3 million order backlog a year earlier. Backlog remained at the same level as June 30, 2005. Cash on-hand as of September 30, 2005 of $3.7 million was $300,000 higher than June 30, 2005." Stern added, "We are also pleased that our Kreisler Industrial Corporation subsidiary reached a 10-year agreement with Parker Hannifin Corporation's Gas Turbine Fuel Systems Division to provide the fuel manifolds used on the Rolls- Royce Trent 1000 engine. This engine is one of two engines offered for the all new Boeing 787 Dreamliner and has garnered the majority of announced engine selections." 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, NJ 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 September 30, 2005 2004 Revenues $4,129,240 $3,113,923 Cost of goods sold 3,551,532 2,692,219
Selling, general and administrative
expenses 283,165 247,615
Total Costs and Expenses 3,834,697 2,939,834
Income from operations 294,543 174,089 Other income:
Interest 25,683 11,107
Income before income taxes 320,226 185,196 Income tax (expense) benefit (129,600) (70,000)
Net income $190,626 $115,196
Income per share:
Net income - basic shares $0.10 $0.07
Net income - diluted shares $0.10 $0.06
Certain amounts in prior years' financial statements have been reclassified to conform to September 30, 2005 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 $135,000 for the three months ended September 30, 2005 and $117,000 for the three months ended September 30, 2004 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 months ended September 30, 2005 and September 30, 2004, respectively.
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
Three Months Audited
Ended Year Ended
9/30/2005 6/30/2005
Assets
Cash and cash equivalents $3,654,628 $3,409,552
Accounts receivable 2,947,006 3,201,376
Inventories 3,032,037 2,817,894
Other current assets 290,904 395,551
Total Current Assets $9,924,575 9,824,373
Property, plant & equip., at cost less
acc. depreciation 1,498,939 1,491,166
Deferred tax asset, non-current 132,200 261,800
Total Non-Current Assets 1,631,139 1,752,966
Total Assets $11,555,714 $11,577,339 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $886,943 $1,049,613
Accrued expenses 123,829 112,837
Obligation under capital leases 75,362 76,869
Accrued environmental cost 388,363 426,825
Total Current Liabilities 1,474,497 1,666,144 Obligation under capital leases 325,809 345,978
Accrued environmental cost 16,541 16,541
Total long term obligations 342,350 362,519 Total Stockholders' Equity 9,738,867 9,548,676
Total Liabilities and Stockholders'
Equity $11,555,714 $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, Kreisler Manufacturing Corporation, +1-201-791-0700, ext. 222, or Web site: http://www.kreisler-ind.com/
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