KREISLER MANUFACTURING CORPORATION 
By Highlights
Three Months Ended
-- Net Sales $6,040,000 compared with $7,567,000 at
December 31, 2007
-- Operating income Operating loss of $(31,000) compared with
operating income of $873,000 at December 31,
2007
-- Net income $76,000 compared with $543,000 at December 31,
2007
-- EPS $0.04 fully diluted earnings per common share
compared with $0.29 at December 31, 2007
-- Backlog $29,944,000 compared with $32,100,000 at
December 31, 2007
Six Months Ended
-- Net Sales $12,332,000 compared with $14,264,000 at
December 31, 2007
-- Operating income $235,000 compared with $1,641,000 at
December 31, 2007
-- Net income $295,000 compared with $1,029,000 at
December 31, 2007
-- EPS $0.16 fully diluted earnings per common share
compared with $0.54 at December 31, 2007
Kreisler CEO
"During the six months ended
Kreisler's total backlog as of
At
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
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.
Kreisler Manufacturing Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended December 31, 2008 2007
Net sales $6,039,547 $7,566,846
Cost of goods sold 5,411,038 5,960,283
Selling, general and administrative
expenses 659,032 733,915
Total costs and expenses 6,070,070 6,694,198
(Loss)/income from operations (30,523) 872,648
Interest and other income 23,521 61,571
Interest and other expenses (8,800) (6,311)
Foreign currency exchange adjustments 157,692 (21,470)
Income before income taxes 141,890 906,438
Income taxes 66,087 (363,919)
Net income $75,803 $542,519
Net income per common share:
Net income - basic $0.04 $0.29
Net income - diluted $0.04 $0.29
Weighted average common shares
- basic 1,867,948 1,867,948
Weighted average common shares
- diluted 1,867,948 1,896,086
Six Months Ended December 31, 2008 2007
Net sales $12,331,905 $14,263,793
Cost of goods sold 10,736,708 11,308,556
Selling, general and administrative
expenses 1,359,954 1,314,152
Total costs and expenses 12,096,662 12,622,708
Income from operations 235,243 1,641,085
Interest and other income 56,259 125,286
Interest and other expenses (19,344) (18,668)
Foreign currency exchange adjustments 232,295 (26,565)
Income before income taxes 504,453 1,721,138
Income taxes (209,348) (691,859)
Net income $295,105 $1,029,279
Net income per common share:
Net income - basic $0.16 $0.55
Net income - diluted $0.16 $0.54
Weighted average common shares
- basic 1,867,948 1,867,948
Weighted average common shares
- diluted 1,868,900 1,898,283
Kreisler Manufacturing Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, 2008 June 30, 2008
(Unaudited) (Audited)
Assets
Cash and cash equivalents $6,205,207 $7,243,565
Accounts receivable - trade (net of
$20,000 allowance for uncollectible
accounts at December 31, 2008 and
June 30, 2008) 1,647,293 2,052,124
Inventories 7,247,234 7,142,438
Deferred tax asset 31,271 31,271
Other current assets 302,268 620,614
Prepaid income taxes 68,207 -
Total current assets 15,501,480 17,090,012
Property and equipment, net 2,617,690 2,077,223
Deposits on property and equipment 412,761 456,989
Long-term investments - 700,000
Deferred tax asset 199,875 -
Total non-current assets 3,230,326 3,234,212
TOTAL ASSETS $18,731,806 $20,324,224
Liabilities and Stockholders' Equity
Liabilities
Accounts payable - trade $1,472,466 $1,812,515
Accrued expenses 508,618 867,167
Deferred revenue 637,564 1,259,505
Income taxes payable - 39,018
Obligation under capital leases,
current portion 133,523 127,731
Total current liabilities 2,752,171 4,105,936
Obligation under capital leases, net
of current portion 51,788 128,296
Deferred tax liability - 95,884
Accrued environmental costs 454,053 444,707
Total long-term liabilities 505,841 668,887
Commitments and contingencies
Stockholders' equity
Common stock, $.125 par value;
6,000,000 shares authorized;
1,867,948 shares issued and
outstanding at December 31, 2008 and
June 30, 2008 233,494 233,494
Additional paid-in capital 1,135,662 1,062,736
Retained earnings 14,089,851 13,794,746
Accumulated other comprehensive
(loss)/income 14,787 458,425
Total stockholders' equity 15,473,794 15,549,401
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $18,731,806 $20,324,224
SOURCE Kreisler Manufacturing Corporation
