Kreisler Manufacturing Corporation Releases Improved Third
Quarter FY2005 Financial Results and Announces the Creation of a Subsidiary in
Poland
ELMWOOD PARK, N.J., May 16 /PRNewswire-FirstCall/ -- Kreisler Manufacturing
Corporation (NASDAQ:KRSL) achieved third quarter FY2005 earnings of $98,900, an
improvement of $322,800 compared to the third quarter FY2004 loss of $223,902.
Overall sales for the third quarter increased 23% to $3.8 million compared to
$3.1 million the prior year.
"After two very difficult years, Kreisler is achieving profitable growth," said
Kreisler CEO Michael Stern. "Our order backlog as of March 31, 2005 has
increased 17% to $15.4 million relative to our $13.2 million backlog a year
earlier and our cash on-hand of $3.7 million remains strong. As we continue to
improve our processes through the use of lean manufacturing techniques, we
expect cost savings that will help us better manage the current downward
pricing pressures and significant increases in raw material costs. However, we
remain cautious looking forward due to the economic turmoil of the commercial
airlines and the budgetary constraints that could affect military programs
Kreisler supports." "Our year-to-date earnings of $72,381 are $806,633 better compared to the
year-to-date earlier loss of $734,252. Sales increased 16% to $10.2 million
compared to $8.8 million. Sales growth in commercial and military products of
14% and 20%, respectively, fueled this growth." The Company is also pleased to announce the formation of Kreisler Polska Sp. z
o.o. Kreisler Polska is located in Krakow, Poland and will initially provide
machined components primarily to Kreisler Industrial Corporation, a wholly
owned subsidiary of the Company. "Kreisler has had a presence in Poland since
2000," Stern said. "We fully expect Kreisler Polska to provide the Company
access to new opportunities in aerospace and other markets throughout Europe.
We are also excited to be located in the historic city of Krakow." 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 - 201-693-9222
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
(Unaudited) Three Months Ended March 31, 2005 2004 Revenues $3,800,795 $3,098,326 Cost of goods sold 3,579,060 3,334,891
Selling, general and administrative
expenses 79,114 143,920
3,658,174 3,478,811
Income (loss) from operations 142,621 (380,485) Other income:
Interest 20,278 6,349
Income (loss) before income taxes 162,899 (374,136) Income tax (expense) benefit (64,000) 150,234
Net income (loss) $98,899 $(223,902)
Income (loss) per share:
Net income (loss) - basic shares $.06 $(.13)
Net income (loss) - diluted shares $.05 $(.13) Nine Months Ended March 31, 2005 2004
Revenues $10,152,483 $8,750,821 Cost of goods sold 9,764,625 9,429,682
Selling, general and administrative
expenses 318,598 537,368
10,083,223 9,967,050
Income (loss) from operations 69,260 (1,216,229) Other income:
Interest 53,121 32,016
Income (loss) before income taxes 122,381 (1,184,213) Income tax (expense) benefit (50,000) 449,961
Net income (loss) $72,381 $(734,252)
Income (loss) per share:
Net income (loss) - basic shares $.04 $(.42)
Net income (loss) - diluted shares $.04 $(.42)
Kreisler Manufacturing Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited) (Audited)
Third Quarter End Year Ended
3/31/2005 6/30/2004
Assets
Cash and cash equivalents $3,692,523 $3,367,494
Accounts receivable 2,898,939 2,563,526
Inventories 2,567,980 2,491,713
Other current assets 286,703 1,027,221
Total Current Assets 9,446,145 9,449,954
Property, plant & equip., at cost less
acc. depreciation 1,448,633 941,400
Deferred tax asset, non-current 280,000 264,900
Total Non-Current Assets 1,728,633 1,206,300
$11,174,778 $10,656,254 Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $884,944 $528,099
Accrued expenses 75,918 302,565
Obligation under capital leases 78,083 --
Accrued environmental cost 465,751 158,574
Total Current Liabilities 1,504,696 989,238 Obligation under capital leases 357,513 --
Accrued environmental cost 16,541 443,369
Total long term obligations 374,054 443,369 Total Stockholders' Equity 9,296,028 9,223,647
$11,174,778 $10,656,254
DATASOURCE: Kreisler Manufacturing Corporation CONTACT: Ned Stern, Kreisler Manufacturing Corporation, +1-201-693-9222, or Web site: http://www.kreisler-ind.com/
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