Fiscal 2008 Highlights -- Net Sales 23% increase to $29,279,000 compared with $23,852,000 June 30, 2007 -- Operating income 2% increase to $3,213,000 compared with $3,140,000 at June 30, 2007 -- Net income 5% decrease to $1,866,000 compared with $1,960,000 at June 30, 2007 -- EPS
-- Backlog 11% increase to $33,088,000 compared with $29,876,000 at June 30, 2007
Kreisler CEO
"Our additional investments in Kreisler Polska's tube and pipe facility
are nearing completion and we expect to start positioning equipment within the
facility in the next three months. We believe this will increase our capacity
enabling Kreisler Polska to attract and supply new international customers.
Additionally, our recent sales and marketing presence at the Farnborough Air
Show during
Mr. Stern added, "During fiscal 2008, we experienced growth in all three of our industry market areas, with sales of military aircraft engine and industrial gas turbine products increasing 33% and 51%, respectively, compared with fiscal 2007. The rise in military product sales was driven by increased sales of aircraft engine components used on the F-22 Raptor and F-15 aircraft as well as increased sales of spare parts to the U.S. Government. Sales growth for industrial gas turbine products were primarily attributable to increased demand for components used in large industrial gas turbines such as the Siemens 501F. Also, sales of products for commercial aircraft engines during fiscal 2008 increased 4% compared with the prior year. Strength was seen in components used in the CF34 and V2500 aircraft engines as well as short-term increases in GP7000 components.
"Turning to our fiscal fourth quarter, while we realized a 16% increase in
net sales to
"In this environment, we are focused on the overall disciplined execution
of our conservative business strategies including enhancing and expanding our
strong customer relationships, minimizing expenses and maintaining a strong
balance sheet. Our total backlog as of
Mr. Stern added, "At
Mr. Stern also noted that, "While remain optimistic in regards to the
future financial performance of Kreisler Polska, we decided to take a
conservative approach to Kreisler Polska's net operating loss (NOL)
carryfowards. This valuation allowance resulted in a
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
Kreisler Manufacturing Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS (Audited) Years ended June 30, 2008 2007 Net sales $29,278,635 $23,852,200 Cost of goods sold 23,374,081 18,480,441 Selling, general and administrative expenses 2,691,215 2,231,941 Total costs and expenses 26,065,296 20,712,382 Income from operations 3,213,339 3,139,818 Interest and other income 239,777 199,941 Interest and other expenses (56,579) (57,143) Translation and exchange adjustments (219,271) (70,808) Income before income taxes 3,177,266 3,211,808 Income taxes (1,251,410) (1,311,509) Net income $1,865,757 $1,960,398 Net Income per common share: Net income- basic $1.00 $1.06 Net income- diluted $0.99 $1.04 Weighted average common shares - basic 1,867,948 1,842,031 Weighted average common shares - diluted 1,891,138 1,876,781 Kreisler Manufacturing Corporation and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2008 2007 (Audited) (Audited) Assets Cash and cash equivalents $7,243,565 $5,068,325 Short-term investments - 550,000 Accounts receivable - trade (net of $20,000 allowance for uncollectible accounts at June 30, 2008 and 2007) 2,052,124 2,366,177 Inventories 7,142,438 5,546,983 Deferred tax asset 31,271 96,312 Other current assets 620,614 66,200 Total current assets 17,090,012 13,693,997 Property and equipment, net 2,077,223 2,425,098 Long-term investments 700,000 - Deferred tax asset - 123,942 Deposits on property and equipment 456,989 - Total non-current assets 3,234,212 2,549,040 TOTAL ASSETS $20,324,224 $16,243,037 Liabilities and Stockholders' Equity Liabilities Accounts payable - trade $1,812,515 $1,130,990 Accrued expenses 867,167 520,540 Deferred revenue 1,259,505 500,000 Product warranties - 148,185 Income taxes payable 39,018 - Obligation under capital leases, current portion 127,731 115,731 Total current liabilities 4,105,936 2,415,446 Obligation under capital leases, net of current portion 128,296 258,343 Deferred tax liability 95,884 - Accrued environmental costs 444,707 426,117 Total long-term liabilities 668,887 684,460 Total stockholders' equity 15,549,401 13,143,131 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $20,324,224 $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.
SOURCE Kreisler Manufacturing Corporation