ELMWOOD PARK, N.J., May 14 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (NASDAQ:KRSL) announced sales and earnings for the three and nine months ended March 31, 2008.
Highlights Three Months Ended March 31, 2008
-- Net Sales 19% increase to $7,445,000 compared to $6,247,000 at
March 31, 2007
-- Net income 96% increase to $605,000 compared to $308,000 at
March 31, 2007
-- EPS $0.32 fully diluted earnings per common share compared to
$0.16 at March 31, 2007
-- Backlog 9% increase to $32,400,000 compared to $29,689,000 at
March 31, 2007
Nine Months Ended March 31, 2008
-- Net Sales 25% increase to $21,709,000 compared to $17,346,000 at
March 31, 2007
-- Net income 25% increase to $1,635,000 compared to $1,308,000 at
March 31, 2007
-- EPS $0.86 fully diluted earnings per common share compared to
$0.71 at March 31, 2007
Kreisler CEO Michael Stern commented that "We are pleased with our latest financial results. Our strategy remains focused on expanding global capabilities, making incremental improvements in product quality and, to further improve efficiencies, enhancing employee skills. Kreisler Polska's tube and pipe facility is on schedule to be operational this summer with the goal of supporting current and future U.S. and European customers. We continue positioning Kreisler to benefit from strategic opportunities while providing competitive pricing through process improvements and cost containment." "Our net income for the three and nine months ended March 31, 2008 increased 96% and 25%, respectively, compared to the prior fiscal year," said Kreisler CFO Ned Stern. "During our fiscal 2008 third quarter, sales of components for military aircraft engines and industrial gas turbines increased 24% and 179%, respectively, compared to our third quarter fiscal 2007 sales," said Ned Stern, "while our sales of commercial aircraft engine components were 7% lower. For the nine months ended March 31, 2008, all three of our industry market areas experienced sales increases compared to the same period in the prior fiscal year." The Company noted that the net income for the three months ended March 31, 2007 was affected by a $235,000 pre-tax product warranty expense and a $129,000 sales reduction attributable to a U.S. Government contract.
Ned Stern also noted that, "our order backlog as of March 31, 2008 increased 9% to $32,400,000 compared to $29,689,000 as of March 31, 2007. Approximately 74% of our order backlog is scheduled to ship over the next 12 months. Our March 31, 2008 cash on hand and short-term investments of $7,523,000 increased $1,900,000 compared to June 30, 2007 due to strong working capital management and advanced payments from our customers. We also held approximately $700,000 of AAA-rated auction rate securities as long-term investments. While we have no immediate need for liquidity, these long-term investments have been affected by the ability of the financial markets to trade such securities. We do not anticipate that the lack of liquidity of these long-term investments will affect our ability to execute our current business plan." 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
(Unaudited) Three Months Ended Nine Months Ended
March 31, March 31,
2008 2007 2008 2007 Net Sales $7,445,087 $6,247,219 $21,708,880 $17,345,535 Cost of goods sold 5,977,364 5,261,352 17,507,707 13,938,815
Selling, general and
administrative
expenses 507,768 540,520 1,626,698 1,320,777
Total Costs and
Expenses 6,485,132 5,801,872 19,134,405 15,259,592
Income from operations 959,955 445,347 2,574,475 2,085,943 Interest and other
income 76,774 45,886 202,060 131,309
Interest and other
expenses (25,305) (6,315) (43,973) (37,800) Income before income
taxes 1,011,424 484,918 2,732,562 2,179,452 Income taxes (406,019) (176,794) (1,097,878) (871,794)
Net income $605,405 $308,124 $ 1,634,684 $ 1,307,658
Net income per common
share:
Net income - basic shares $0.32 $0.17 $0.88 $0.71
Net income - diluted
shares $0.32 $0.16 $0.86 $0.71
Weighted average
common shares -
basic 1,867,948 1,842,792 1,867,948 1,834,781
Weighted average common
shares - diluted 1,881,431 1,881,523 1,893,508 1,853,960 Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2008 June 30, 2007
(Unaudited) (Audited)
Assets
Cash and cash equivalents $7,521,971 $5,068,325
Short-term investments -- 550,000
Accounts receivable - trade (net) 2,494,058 2,366,177
Inventories 6,581,027 5,546,983
Deferred tax asset 192 96,312
Other current assets 1,172,975 66,200
Total current assets 17,770,223 13,693,997 Property, plant and equipment, net 1,805,776 2,425,098
Long-term investments 700,000 --
Deferred tax asset 123,942 123,942
Total non-current assets 2,629,718 2,549,040
$20,399,941 $16,243,037 Liabilities and Stockholders' Equity Liabilities
Accounts payable - trade $1,721,159 $1,130,990
Accrued expenses 863,997 520,540
Deferred tax liability 139,720 --
Deferred revenue 1,657,812 500,000
Product warranties -- 148,185
Income taxes payable 124,711 --
Obligations under capital leases, current
portion 125,234 115,731
Total current liabilities 4,632,633 2,415,446 Obligations under capital leases, net of
current portion 161,192 258,343
Accrued environmental cost 440,085 426,117
Total long-term liabilities 601,277 684,460 Total stockholders' equity 15,166,031 13,143,131
$20,399,941 $16,243,037
Forward-Looking Statements
Certain oral statements made by management of Kreisler Manufacturing Corporation (the "Company") from time to time and certain statements contained herein or in other 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, as amended, 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, Chief Financial Officer, Kreisler Manufacturing Corporation, +1-201-791-0700 X222
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