ELMWOOD PARK, N.J., Nov. 13 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced sales and earnings for the three months ended September 30, 2006. The Company reported a sales increase of 23% to $5,083,000 compared to sales of $4,129,000 for the three months ended September 30, 2005. Net income more than doubled to $392,000. Operating income increased to $620,000 compared to the prior year operating income of $303,000, an increase of $317,000. The Company reported basic earnings per share of $0.21 compared to the prior year earnings per share of $0.10.
"Our sales and profitability increases reflect the continued demand for the aerospace and industrial gas turbine components we produce," said Kreisler CEO Michael Stern. "Year-over-year sales of commercial and industrial gas turbine-related components increased 36% and 128%, respectively, while sales of military-related components were unchanged. Our order backlog as of September 30, 2006 increased 42% to $23,800,000 compared to $16,800,000 as of September 30, 2005. September 30, 2006 cash on hand of $3,509,000 increased $213,000 compared to June 30, 2006." Stern added, "We continued our investment in the manufacturing capacity and capabilities of Kreisler Industrial and Kreisler Polska. For the three months ended September 30, 2006, $200,000 was provided to Kreisler Polska towards the purchase of new capital equipment. We will provide an estimated $756,000 in additional funding to Kreisler Polska during fiscal 2007 in conjunction with a European Union program that contributes 40% of the cost of Kreisler Polska's purchases of capital equipment. Under the European Union program, we expect Kreisler Polska to receive funding of approximately $382,000 related to its purchases of capital equipment during calendar year 2007." Stern also noted that, "During the three months ended September 30, 2006, our inventories increased to $3,935,000, or $682,000, compared to our inventory as of June 30, 2006. This increase in inventory is due to detail components required for the manufacture of F119 and F135 engine components as well as detail components and raw materials needed for a number of programs we support." 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) Three Months Ended September 30, 2006 2005 Net sales $5,082,985 $4,129,240 Cost of goods sold 4,164,635 3,551,532
Selling, general and administrative
expenses 298,596 274,224
Total costs and expenses 4,463,231 3,825,756
Income from operations 619,754 303,484 Interest and other income 48,109 25,683
Interest and other expenses (13,559) (8,941) Income before income taxes 654,304 320,226 Income taxes (262,000) (129,600)
Net income $392,304 $190,626
Income per share:
Net income - basic shares $0.21 $0.10
Net income - diluted shares $0.21 $0.10
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 months ended September 30, 2005. This separation increases income from operations but has no effect on the income before income taxes of the Company for the three months ended September 30, 2005.
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Audited) 9/30/2006 6/30/2006
Assets
Cash and cash equivalents $3,509,233 $3,295,947
Accounts receivable, net 4,308,826 4,480,295
Inventories 3,935,198 3,253,420
Other current assets 173,846 152,468
Total Current Assets 11,927,103 11,182,130
Property, plant and equipment, net 1,830,155 1,590,879
Deferred tax asset, non-current 221,564 238,989
Total Non-Current Assets 2,051,719 1,829,868
$13,978,822 $13,011,998 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $1,403,457 $819,974
Accrued expenses 233,018 483,030
Income taxes payable 306,971 59,820
Line of credit payable -- 54,810
Obligation under capital leases 119,996 103,643
Total current liabilities 2,063,442 1,521,277 Obligation under capital leases 382,799 358,193
Accrued environmental cost 407,577 407,577
Total long term obligations 790,376 765,770 Total stockholders' equity 11,125,004 10,724,951
$13,978,822 $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. 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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