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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended April 4, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 0-14275
 EDAC Technologies Corporation
  Wisconsin
    
    39-1515599(State or other jurisdiction of
    
    (I.R.S. employerincorporation or organization)
    
    Identification No.)
 1806 New Britain Avenue, Farmington, CT 06032
 (860) 677-2603
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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TABLE OF CONTENTS  PART I FINANCIAL INFORMATIONITEM 1 FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT INDEXEX-31.1EX-31.2EX-32.1    Table of Contents  
  
  
 April 4,
    
    
    January 3,2009
    
    
    2009(Unaudited)
    
    
    (Audited)ASSETSCURRENT ASSETS:Cash
    
    $
    657,791
    
    
    $
    1,311,092Trade accounts receivable, (net
of allowance for doubtful accounts
of $186,000 as of April 4, 2009
and January 3, 2009)
    
    
    7,107,831
    
    
    
    7,931,550Inventories, net
    
    
    9,130,132
    
    
    
    7,961,788Prepaid expenses and other current
assets
    
    
    227,200
    
    
    
    107,333Refundable income taxes
    
    
    161,708
    
    
    
    686,708Deferred income taxes
    
    
    983,298
    
    
    
    983,298TOTAL CURRENT ASSETS
    
    
    18,267,960
    
    
    
    18,981,769PROPERTY, PLANT, AND EQUIPMENT
    
    
    35,423,794
    
    
    
    35,347,124less-accumulated depreciation
    
    
    24,329,100
    
    
    
    23,992,87811,094,694
    
    
    
    11,354,246DEFERRED INCOME TAXES
    
    
    95,971
    
    
    
    105,971OTHER ASSETS:Deposits on equipment
    
    
    1,754,800
    
    
    
    981,300Other
    
    
    37,127
    
    
    
    40,338TOTAL ASSETS
    
    $
    31,250,552
    
    
    $
    31,463,624
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April 4,
    
    
    January 3,2009
    
    
    2009(Unaudited)
    
    
    (Audited)LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Equipment line of credit
    
    $
    2,448,490
    
    
    $
    1,674,990Current portion of long-term debt
    
    
    2,110,318
    
    
    
    2,376,018Trade accounts payable
    
    
    2,816,566
    
    
    
    3,485,192Accrued employee compensation
and amounts withheld
    
    
    1,264,594
    
    
    
    1,112,006Other accrued expenses
    
    
    341,646
    
    
    
    361,252Customer advances
    
    
    289,747
    
    
    
    261,643TOTAL CURRENT LIABILITIES
    
    
    9,271,361
    
    
    
    9,271,101LONG-TERM DEBT,less current portion
    
    
    4,503,139
    
    
    
    4,827,697OTHER LIABILITIES
    
    
    1,698,233
    
    
    
    1,698,233SHAREHOLDERS EQUITY:Common stock, $.0025 par value;
issued and outstanding: 4,825,303
on April 4, 2009 and on
January 3, 2009
    
    
    12,063
    
    
    
    12,063Additional paid-in capital
    
    
    10,989,549
    
    
    
    10,934,736Retained earnings
    
    
    7,215,013
    
    
    
    7,158,60018,216,625
    
    
    
    18,105,399Less: accumulated other
comprehensive loss
    
    
    2,438,806
    
    
    
    2,438,806TOTAL SHAREHOLDERS EQUITY
    
    
    15,777,819
    
    
    
    15,666,593TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY
    
    $
    31,250,552
    
    
    $
    31,463,624
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For the quarter endedApril 4,
    
    
    March 29,2009
    
    
    2008Sales
    
    $
    9,583,775
    
    
    $
    11,181,103Cost of sales
    
    
    8,503,339
    
    
    
    9,095,094Gross profit
    
    
    1,080,436
    
    
    
    2,086,009Selling, general and
administrative expenses
    
    
    861,256
    
    
    
    969,120Income from operations
    
    
    219,180
    
    
    
    1,116,889Non-operating income (expense):Interest expense
    
    
    (139,842
    )
    
    
    (164,577
    )Other
    
    
    6,875
    
    
    
    44,555Income before income taxes
    
    
    86,213
    
    
    
    996,867Provision for income taxes
    
    
    29,800
    
    
    
    367,000Net income
    
    $
    56,413
    
    
    $
    629,867Income per share data (Note A):Basic income per share
    
    $
    0.01
    
    
    $
    0.14Diluted income per share
    
    $
    0.01
    
    
    $
    0.13
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For the three months endedApril 4,
    
    
    March 29,2009
    
    
    2008Operating Activities:Net income
    
    $
    56,413
    
    
    $
    629,867Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:Depreciation and amortization
    
    
    366,209
    
    
    
    546,209Deferred income taxes
    
    
    10,000
    
    
    
    25,000Gain on sale of property,
plant & equipment
    
    
    (5,000
    )
    
    
    (20,350
    )Stock compensation expense
pursuant to stock options
    
    
    54,813
    
    
    
    55,749Excess tax benefit from
share-based compensation
    
    
    
    
    
    
    (81,836
    )Changes in working capital items
    
    
    (450,630
    )
    
    
    (1,194,535
    )Net cash provided by (used in)
operating activities
    
    
    31,805
    
    
    
    (39,896
    )Investing Activities:Additions to property, plant
and equipment
    
    
    (100,948
    )
    
    
    (146,629
    )Equipment deposits
    
    
    (773,500
    )
    
    
    (317,395
    )Proceeds from sale of property,
plant and equipment
    
    
    5,500
    
    
    
    20,350Net cash used in investing
activities
    
    
    (868,948
    )
    
    
    (443,674
    )Financing Activities:Increase in line of credit
    
    
    773,500
    
    
    
    Repayments of long-term debt
    
    
    (590,258
    )
    
    
    (560,284
    )Proceeds from exercise of options
and issuance of common stock
    
    
    
    
    
    
    47,354Excess tax benefit from
share-based compensation
    
    
    
    
    
    
    81,836Net cash provided by (used in)
financing activities
    
    
    183,242
    
    
    
    (431,094
    )Decrease in cash
    
    
    (653,901
    )
    
    
    (914,664
    )Cash at beginning of period
    
    
    1,311,092
    
    
    
    3,286,203Cash at end of period
    
    $
    657,791
    
    
    $
    2,371,539Supplemental Disclosure of
Cash Flow Information:Interest paid
    
    $
    139,842
    
    
    $
    164,577Income taxes paid (refunded)
    
    
    (511,000
    )
    
    
    31,000
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April 4,
    
    
    January 3,2009
    
    
    2009Raw materials
    
    $
    1,944,959
    
    
    $
    1,449,789Work-in-progress
    
    
    6,371,920
    
    
    
    5,789,839Finished goods
    
    
    1,457,655
    
    
    
    1,366,5629,774,534
    
    
    
    8,606,190Reserve for excess
and obsolete
    
    
    (644,402
    )
    
    
    (644,402
    )Inventories, net
    
    $
    9,130,132
    
    
    $
    7,961,788
  For the quarter endedApril 4,
    
    
    March 29,2009
    
    
    2008Basic:Average common shares outstanding
    
    
    4,825,303
    
    
    
    4,652,928Diluted:Dilutive effect of
stock options
    
    
    36,314
    
    
    
    323,987Average common shares diluted
    
    
    4,861,617
    
    
    
    4,976,915Options excluded since anti-dilutive
    
    
    425,334
    
    
    
    188,500
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April 4,
    
    
    January 3,2009
    
    
    2009Equipment line of credit
    
    $
    2,448,490
    
    
    $
    1,674,990Term notes
    
    
    3,412,920
    
    
    
    3,914,765Mortgage loans
    
    
    2,976,412
    
    
    
    3,010,677Capital lease obligations
    
    
    224,125
    
    
    
    278,2739,061,947
    
    
    
    8,878,705Less  equipment line of credit
    
    
    2,448,490
    
    
    
    1,674,990Less  current portion of
long-term debt
    
    
    2,110,318
    
    
    
    2,376,018$
    4,503,139
    
    
    $
    4,827,697
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For the quarter endedApril 4,
    
    
    March 29,2009
    
    
    2008Components of net periodic benefit cost:Interest cost
    
    $
    82
    
    
    $
    91Expected return on plan assets
    
    
    (62
    )
    
    
    (103
    )Amortization of actuarial loss
    
    
    33
    
    
    
    12Net periodic pension expense
    
    $
    53
    
    
    $
    0
    For the quarter endedApril 4,
    
    
    March 29,2009
    
    
    2008Current provision
    
    $
    20
    
    
    $
    342Deferred
    
    
    10
    
    
    
    25Total provision
    
    $
    30
    
    
    $
    367
  
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Sales.
  For the three months endedApril 4,
    
    
    March 29,Product Line
    
    2009
    
    
    2008
    
    
    ChangePrecision Aerospace
    
    $
    5,186
    
    
    $
    5,283
    
    
    $
    (97
    )Apex Machine Tool
    
    
    3,851
    
    
    
    5,046
    
    
    
    (1,195
    )Gros-Ite Spindles
    
    
    547
    
    
    
    852
    
    
    
    (305
    )Total
    
    $
    9,584
    
    
    $
    11,181
    
    
    $
    (1,597
    )
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For the quarter endedApril 4,
    
    
    March 29,2009
    
    
    2008Aerospace customers
    
    $
    6,948
    
    
    $
    8,445Non-aerospace customers
    
    
    2,636
    
    
    
    2,736$
    9,584
    
    
    $
    11,181
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Cost of Sales.
 Selling, General & Administrative Expenses.
 Interest Expense.
 Income Taxes.
 Liquidity and Capital Resources.
  Three Months EndedApril 4,
    
    March 29,2009
    
    2008Net cash flows provided by (used in)
operating activities:
    
    $
    32,000
    
    
    $
    (40,000
    )
   Three Months EndedApril 4,
    
    March 29,2009
    
    2008Net cash flows used in investing activities:
    
    $
    869,000
    
    
    $
    444,000
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Three Months EndedApril 4,
    
    March 29,2009
    
    2008Net cash flows provided by (used in)
financing activities:
    
    $
    183,000
    
    
    $
    (431,000
    )
     CRITICAL ACCOUNTING POLICIES AND ESTIMATES
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of disclosure and procedures
  Changes in internal control over financial reporting
  
  
 ITEM
6.       EXHIBITS
 3.1
    *
    
    EDACs Amended and Restated Articles of Incorporation3.2
    *
    
    Articles of Amendment to EDACs Amended and Restated Articles of Incorporation.3.3
    *
    
    EDACs Amended and Restated By-laws .31.1
    
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as amended.31.2
    
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as amended.
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32.1
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to
Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended.
 
 *
    
    Incorporated by reference 
   EDAC TECHNOLOGIES CORPORATIONApril 30, 2009By
    
    /s/ Glenn L. PurpleGlenn L. Purple, Chief FinancialOfficer and duly authorized officer
 
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NUMBER
    
    DESCRIPTION3.1
    
    
    EDACs Amended and Restated Articles of Incorporation (1)3.2
    
    
    Articles of Amendment to EDACs Amended and Restated Articles of Incorporation.
(2)3.3
    
    
    EDACs Amended and Restated By-laws (3)31.1
    *
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as amended.31.2
    *
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the
Securities Exchange Act of 1934, as amended.32.1
    *
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to
Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended.
 
 (1)
    
    Exhibit incorporated by reference to the Companys registration
statement on Form S-1 dated August 6, 1985, commission file
No. 2-99491, Amendment No.1.(2)
    
    Exhibit incorporated by reference to the Companys Report
on Form 10-Q dated July 30, 2008.(3)
    
    Exhibit incorporated by reference to the Companys Report
on Form 8-K dated February 19, 2002.*
    
    Filed herewith. 15