EDO Corporation First Quarter Net Earnings Increase 28%
Is In Final Negotiations For A New $40 Million Credit Agreement
NEW YORK--(BUSINESS WIRE)--April 28, 1998--EDO Corp. (NYSE:EDO - news) tuesday announced that net
earnings after payment of preferred dividends for the first quarter ended March 28, 1998 increased 28% to $1,628,000, or
$0.22 per diluted share ($0.25 per basic share).
This compares with net earnings of $1,271,000, or $0.18 per diluted share ($0.21 per basic share), for the first quarter of
1997. Revenue for the period was $23,301,000 compared to $23,704,000 a year earlier.
Chairman and Chief Executive Officer Frank Fariello explained that the growth in earnings for the first quarter of 1998, relative
to the first quarter of 1997, reflected an increase in operating margin to 8.3% from 7.5%, the result of a favorable revenue mix
and the company's continuing program to enhance efficiency.
''We expect operating margin to remain above 8.0% for the balance of 1998 ,'' he said (see note). He added that a decline in
net interest expense to $38,000 from $223,000 also contributed to the gain in earnings for the quarter.
Fariello continued: ''EDO is running efficiently and producing solid earnings with a highly liquid balance sheet. The reduction in
backlog of unfilled orders to $98,818,000 at March 28, 1998 from $113,320,000 a year earlier should be recovered upon
receipt of a large contract expected in the second quarter (see note). These results demonstrate the extent to which we have
rebuilt the company through internal efforts alone.''
Fariello added: ''In 1997 we initiated a continuing, formal strategic planning process to identify ways to build on our core
defense and aerospace competence. We recognize that to fully realize EDO's potential and to further increase shareholder
value, we must supplement internally generated growth with acquisitions that fit this plan.''
Fariello also announced that the company is in final negotiations for a new $30 million secured multi-year revolving credit facility
with a syndicate led by Mellon Bank. In addition to taking a portion of the new revolving credit facility, Mellon also will finance
the remaining approximately $10 million balance on EDO's existing ESOP loan.
''This new credit facility will be a considerable improvement over the facility it replaces, both in terms of cost and credit
availability. It will double our revolving credit to $30 million. Coupled with our current $35 million cash balance and positive
cash flow from operations, this new facility will enhance our ability to pursue acquisition candidates that meet our long term
strategic objectives,'' Fariello concluded.
EDO designs and manufactures advanced electro optical, electronic, mechanical, acoustic and composite products for the
defense and aerospace industries. |
