<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 1, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period _____________ to _______________
Commission file number: 0-14275
Edac Technologies Corporation
(Exact name of registrant as specified in its charter)
Wisconsin 39-1515599
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) Identification No.)
1806 New Britain Avenue, Farmington, CT 06032
(Address of principal executive offices)
(860) 677-2603
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by section 13 or 15 (d) of the Securities'
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes X No ____
APPLICABLE ONLY TO CORPORATE ISSUERS:
On August 4, 2000 there were outstanding 4,269,080 shares of
the Registrant's Common Stock, $0.0025 par value per share.
<PAGE> 2
PART 1 FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
July 1 January 1
2000 2000
(Unaudited) (Note)
----------- ------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 672,720 $ 145,386
Trade accounts receivable 5,906,191 4,811,993
Inventories 7,698,097 8,804,497
Prepaid expenses and other 352,368 442,133
Refundable income taxes 22,487 556,159
Deferred income taxes 699,649 699,649
----------- -----------
TOTAL CURRENT ASSETS 15,351,512 15,459,817
PROPERTY, PLANT, AND EQUIPMENT 28,036,111 28,571,872
less-accumulated depreciation 11,533,951 10,628,387
----------- -----------
16,502,160 17,943,485
OTHER ASSETS:
Goodwill 10,807,749 10,949,972
Other 435,684 401,562
----------- -----------
$43,097,105 $44,754,836
=========== ===========
</TABLE>
Note: The balance sheet at January 1, 2000 has been derived from the audited
financial statements at that date.
The accompanying notes are an integral part of these financial statements.
<PAGE> 3
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
July 1 January 1
2000 2000
(Unaudited) (Note)
----------- ------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $ 7,226,009 $ 6,151,925
Current portion of long-term debt
and long-term debt in default 20,717,412 22,430,798
Trade accounts payable 3,073,276 3,348,140
Employee compensation and
amounts withheld 1,384,199 1,137,120
Accrued expenses 1,478,499 1,985,264
------------ ------------
TOTAL CURRENT LIABILITIES 33,879,395 35,053,247
LONG-TERM DEBT,
less current portion 2,386,687 2,494,686
OTHER LIABILITIES 303,498 419,346
DEFERRED INCOME TAXES 700,000 700,000
SHAREHOLDERS' EQUITY:
Common stock, par value $.0025 per
share; 10,000,000 shares authorized;
issued and outstanding--4,269,080
on July 1, 2000 and
on January 1, 2000 10,673 10,673
Additional paid-in-capital 9,153,941 9,153,941
Accumulated deficit (3,337,089) (3,077,057)
------------ ------------
5,827,525 6,087,557
$ 43,097,105 $ 44,754,836
============ ============
</TABLE>
Note: The balance sheet at January 1, 2000 has been derived from the audited
financial statements at that date.
The accompanying notes are an integral part of these financial statements.
<PAGE> 4
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
For the quarter ended Six months ended
July 1 July 3 July 1 July 3
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $ 11,776,242 $ 14,945,132 $ 24,025,480 $ 30,115,417
Cost of sales 9,804,799 15,135,172 20,212,077 27,911,555
------------ ------------ ------------ ------------
Gross profit(loss) 1,971,443 (190,040) 3,813,403 2,203,862
Selling, general and
and administrative
expenses 1,278,256 1,348,218 2,532,425 2,705,094
------------ ------------ ------------ ------------
INCOME (LOSS)
FROM OPERATIONS 693,187 (1,538,258) 1,280,978 (501,232)
Non-operating income
(expense):
Interest expense (846,002) (639,482) (1,564,192) (1,274,874)
Other (7,398) 6,284 23,182 31,440
------------ ------------ ------------ ------------
(853,400) (633,198) (1,541,010) (1,243,434)
LOSS BEFORE
INCOME TAXES (160,213) (2,171,456) (260,032) (1,744,666)
Benefit for
income taxes -- (501,800) -- (361,000)
------------ ------------ ------------ ------------
NET LOSS $ (160,213) $ (1,669,656) $ (260,032) $ (1,383,666)
============ ============ ============ ============
Basic and diluted
loss per
common share (Note A) $ (0.04) $ (0.39) $ (0.06) $ (0.32)
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 5
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
July 1 July 3
2000 1999
---- ----
<S> <C> <C>
Operating Activities:
Net loss $ (260,032) $(1,383,666)
Depreciation and amortization 1,191,603 1,462,731
Changes in working capital items 101,089 2,276,787
Other (101,892) (2,965)
----------- -----------
Net cash provided by
operating activities 930,768 2,352,887
----------- -----------
Investing Activities:
Additions to property, plant
and equipment (69,683) (561,848)
Proceeds from sales of property
plant and equipment 475,800 2,965
Other -- 9,998
----------- -----------
Net cash provided by (used in)
investing activities 406,117 (548,885)
----------- -----------
Financing Activities:
Increase (decrease) in revolving
line of credit, net 1,074,084 (1,593,485)
Issuance of long term debt -- 457,283
Payments of long term debt (1,821,385) (820,455)
Proceeds from exercise of options
for common stock -- 10,339
Financing costs (62,250) --
----------- -----------
Net cash used in
financing activities (809,551) (1,946,318)
----------- -----------
Increase (decrease) in cash 527,334 (142,316)
Cash at the beginning of period 145,386 229,480
----------- -----------
Cash at end of period $ 672,720 $ 87,164
=========== ===========
Supplemental Disclosure of
Cash Flow Information:
Interest paid $ 1,450,790 $ 1,495,245
Income taxes (refunded) paid (533,672) $ 570,262
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 6
EDAC TECHNOLOGIES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
JULY 1, 2000
NOTE A - FINANCIAL CONDITION AND BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have been
prepared in accordance with the generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals and adjustments to previously established loss
provisions) considered necessary for a fair presentation have been included.
Operating results for the six month period ending July 1, 2000 are not
necessarily indicative of the results that may be expected for the year ending
December 30, 2000. For further information, refer to the financial statements
and footnotes thereto included in the Company's annual report on Form 10-K for
the year ended January 1, 2000.
As of August 1, 2000, the Company remained in violation of certain of its
financial covenants contained in its primary financing arrangement with a bank
which includes revolving credit and term financing (the "Agreement") and was
operating under a forbearance agreement. As a result, as of July 1, 2000, all
obligations to the lender of $26.9 million are included in current liabilities
due to cross default provisions.
The Company is operating under a forbearance agreement with respect to its
principal financing arrangements, including revolving credit and term financing,
of $26.9 million as of July 1, 2000. As of August 1, 2000, the Company is
working to arrange alternative financing to replace its current financing
arrangements. The Company's lender has indicated a willingness to cooperate with
the Company as it seeks to obtain alternative financing. The Company has entered
into a series of short-term forbearance agreements with the bank which prevents
the acceleration and collection of the indebtedness until August 18, 2000. If
the Company is unable to obtain alternative financing by August 18, 2000 or to
receive an extension of the forbearance agreement, the bank would then have the
right to demand repayment of the amount outstanding. Although the Company
believes it has made significant progress toward refinancing its existing bank
debt, there can be no assurance that alternative financing will be available on
terms acceptable to the Company, if at all. The Company received an extension to
August 18, 2000 from its bank for financing arrangements with an affiliate to
which the Company has guaranteed a maximum of $300,000 ($223,065 outstanding at
July 1, 2000). The Company's management team has taken several actions to
improve the Company's financial performance in 2000. These actions include, but
are not limited to, reducing overhead costs and indirect staffing levels,
expanding marketing activities to diversify the Company's customers and markets,
disposing of underutilized assets (including property , plant and equipment),
re-negotiating unfavorable contracts and combining operating units to improve
resource utilization. Management believes, but has no
<PAGE> 7
assurance, that these initiatives will improve the Company's operating
performance in 2000.
As indicated in the report of independent public accountants related to the
Company's consolidated financial statements as of and for the year ended January
1, 2000, the status of the Company's financing arrangements raises substantial
doubt about the Company's ability to continue as a going concern. The
accompanying condensed consolidated financial statements do not include any
adjustments relating to the recoverability and classification of asset carrying
amounts or the amount and classification of liabilities that might result should
the Company be unable to continue as a going concern.
The Company has been advised by its independent public accountants that, if the
indebtedness does not meet the requirements to be classified as long-term prior
to the issuance of their audit report on the Company's consolidated financial
statements for the year ending December 30, 2000, their auditors' report on
those consolidated financial statements will continue to include an explanatory
paragraph indicating the existence of substantial doubt as to the Company's
ability to continue as a going concern subject to the ultimate resolution of the
repayment requirements under the Company's bank debt.
Inventories: Inventories are stated at the lower of cost (first-in, first-out
method) or market. As of July 1, 2000 and January 1, 2000, inventories consisted
of the following:
<TABLE>
<CAPTION>
July 1, January 1,
2000 2000
---- ----
<S> <C> <C>
Raw materials $ 885,830 $ 1,926,177
Work-in-progress 5,975,155 6,685,644
Finished goods 1,833,068 1,222,133
----------- -----------
8,694,053 9,833,954
Reserve for excess
and obsolete (995,956) (1,029,457)
----------- -----------
Inventories $ 7,698,097 $ 8,804,497
=========== ===========
</TABLE>
New Accounting Standards: In June 1999, the FASB issued SFAS No. 137,
"Accounting for Derivative Instruments and Hedging Activities-Deferral of the
Effective Date of FASB No. 133 - an Amendment of FASB No. 133" for the sole
purpose of updating the effective date of adoption of SFAS No. 133 to January 1,
2001. SFAS No. 133 establishes accounting and reporting standards requiring that
each derivative instrument (including certain derivative instruments embedded in
other contracts) be recorded in the balance sheet as either an asset or
liability measured at its fair value. On May 2, 2000, the Company sold its only
derivative instrument for $177,350 (interest rate swap agreements related to
certain long-term debt). The Company is amortizing the deferred gain associated
with this sale as a reduction of interest expense over the period of the
associated financing. Accordingly, the Company does not anticipate any impact
related to the adoption of this standard.
<PAGE> 8
In December 1999, Staff Accounting Bulletin No. 101 (SAB 101) Revenue
Recognition, was issued. SAB 101 will require a company to defer revenue
recognition on product shipments until contractual terms of customer acceptance,
including inspection and installation requirements, as defined, are met. The
Company will be required to adopt this new accounting pronouncement through a
cumulative charge to earnings in accordance with the provisions of APB Opinion
No. 20 no later than the fourth quarter of fiscal 2000. The Company is in the
process of quantifying the effect of the new standard and plans to adopt the new
standard in the fourth quarter of 2000.
Comprehensive Loss: Comprehensive loss is the same as net loss for the quarters
and six month periods ended July 1, 2000 and July 3, 1999.
Earnings (Loss) Per Share: The number of shares used in the earnings (loss) per
common share computation for the three and six month periods ended July 1, 2000
and July 3, 1999 are as follows:
<TABLE>
<CAPTION>
Quarter ended Six months ended
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic:
Average common
shares outstanding 4,269,080 4,269,080 4,269,080 4,267,830
Diluted:
Dilutive effect of (a) (b) (a) (b)
stock options 0 0 0 0
--------- --------- --------- ---------
Average shares diluted 4,269,080 4,269,080 4,269,080 4,267,830
========= ========= ========= =========
</TABLE>
(a) Options to purchase 523,157 shares of common stock were not included in the
computation of (loss) earnings per share for the periods ended July 1, 2000
since their effect was antidilutive.
(b) Options to purchase 479,158 shares of common stock were not included in the
computation of (loss) earnings per share for the periods ended July 3, 1999
since their effect was antidilutive.
NOTE B -- SEGMENT INFORMATION
The following amounts are in thousands:
<TABLE>
<CAPTION>
For the quarter ended July 1, 2000
Engineered Precision Precision Apex
Precision Engineered Large Machine
Components Technologies Machining Tool Co. Total
---------- ------------ --------- -------- -----
<S> <C> <C> <C> <C> <C>
Sales from
external
customers $ 4,102 $ 1,534 $ 1,265 $ 4,875 $ 11,776
-------- -------- -------- -------- --------
Segment
profit (loss) (291) (53) 144 40 (160)
-------- -------- -------- -------- --------
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
For the six months ended July 1, 2000
Engineered Precision Precision Apex
Precision Engineered Large Machine
Components Technologies Machining Tool Co. Total
---------- ------------ --------- -------- -----
<S> <C> <C> <C> <C> <C>
Sales from
external
customers $ 8,245 $ 3,331 $ 2,246 $ 10,203 $ 24,025
-------- -------- -------- -------- --------
Segment
profit (loss) (632) 25 176 171 (260)
-------- -------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
For the quarter ended July 3, 1999
Engineered Precision Precision Apex
Precision Engineered Large Machine
Components Technologies Machining Tool Co. Total
---------- ------------ --------- -------- -----
<S> <C> <C> <C> <C> <C>
Sales from
external
customers $ 4,626 $ 3,542 $ 2,067 $ 4,710 $ 14,945
Intersegment -- -- -- 56 56
-------- -------- -------- -------- --------
Total sales 4,626 3,542 2,067 4,766 15,001
-------- -------- -------- -------- --------
Segment profit (loss) (1,517) 126 (130) (148) (1,669)
</TABLE>
<TABLE>
<CAPTION>
For the six months ended July 3, 1999
Engineered Precision Precision Apex
Precision Engineered Large Machine
Components Technologies Machining Tool Co. Total
---------- ------------ --------- -------- -----
<S> <C> <C> <C> <C> <C>
Sales from
external
customers $ 9,234 $ 6,583 $ 4,620 $ 9,678 $ 30,115
Intersegment -- -- -- 88 88
-------- -------- -------- -------- --------
Total sales 9,234 6,583 4,620 9,766 30,203
-------- -------- -------- -------- --------
Segment
profit (loss) (1,477) 223 (3) (127) (1,384)
</TABLE>
Asset information is unavailable by segment.
<PAGE> 10
NOTE C - DEFERRED LOAN FEES
The Company has incurred $62,250 of financing costs classified as deferred
financing costs. These costs will be deferred until such time as it is
determined that they will be amortized over the life of any new financing or
expensed if unrelated to a new financing.
NOTE D - STOCK BASED COMPENSATION
During the three months ended July 1, 2000, the Company granted options to
purchase 214,000 shares of common stock at a weighted average exercise price of
$1.00 per share.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
SALES: The Company's sales decreased $3,169,000 or 21.2% for the three months
and $6,090,000 or 20.2% for the six months ended July 1, 2000 from the
comparable periods of 1999. The decrease in sales is due primarily to the
overall decrease in business from the Company's major customers. Sales increases
(decreases) were $(524,000), $(2,008,000), $(802,000) and $165,000 and
$(989,000), $(3,252,000), $(2,374,000) and $525,000 in the Engineered Precision
Components, Precision Engineered Technologies, Precision Large Machining and
Apex areas for the quarter and six months ended July 1, 2000, respectively. The
Company continues to expand its marketing activities to diversify into other
markets and reduce its dependence on the aerospace industry. In the Apex area
sales to aerospace customers have decreased as a percentage of total Apex sales
to 39% for the six months ended July 1, 2000 from 59% for the year ended January
1, 2000. As of July 1, 2000, sales backlog was approximately $31,700,000,
compared to $27,200,000 at April 1, 2000 and $29,800,000 at January 1, 2000.
Backlog consists of accepted purchase orders that are cancelable by the customer
without penalty, except for payment of costs incurred. The Company presently
expects to complete approximately $14,000,000 of its July 1, 2000 backlog during
the remainder of the 2000 fiscal year.
COST OF SALES: Cost of sales as a percentage of sales decreased in the 2000
period to 83.3% from 101.3% and to 84.1% from 92.7% for the three and six months
ended July 1, 2000 compared to 1999. Cost of sales as a percentage of sales
decreased primarily due to the recording of an inventory reserve of $1,200,000
in the second quarter of 1999.
SELLING GENERAL AND ADMINISTRATIVE: Selling, general and administrative costs
decreased by $70,000 or 5.2% and by $173,000 or 6.4 % for the three and six
months ended July 1, 2000 compared to the 1999 periods. This is due to lower
compensation costs and employee benefits partially offset by higher professional
fees in the 2000 periods.
INTEREST: Interest expense increased by $207,000 and $289,000 for the three and
six months ended July 1, 2000 compared to 1999. This was the result of the bank
charging the Company a default rate of interest
<PAGE> 11
representing as additional 1 -1/4% per annum commencing September 1, 1999 in
accordance with the forbearance agreements.
LIQUIDITY AND CAPITAL RESOURCES: During 1999 and the first half of 2000, the
Company was in violation of certain of its financial covenants contained in its
primary financing arrangement with a bank which includes revolving credit and
term financing (the "Agreement"). As of July 1, 2000, the Company had aggregate
borrowings under the Agreement and other borrowings with the bank of
$26,941,000. The Agreement provides the bank a first priority security interest
in substantially all of the Company's assets and is generally cross
collateralized and cross defaulting with other borrowings with the bank.
Accordingly, as of July 1, 2000 and January 1, 2000, all amounts outstanding to
the bank are classified as current in the condensed consolidated balance sheet.
The Company has entered into a series of short-term forbearance agreements with
the bank which prevents the acceleration and collection of the indebtedness
until August 18, 2000. In accordance with the forbearance agreements, starting
September 1, 1999, the bank began charging a default rate of interest
representing an additional 1 1/4% per annum and will charge a $87,500 success
fee payable on demand by the bank and $750 per day beginning on June 4, 2000.
The forbearance agreements decreased the amount the Company can borrow on its
revolving line of credit to an amount which is the lesser of $9,000,000 or an
amount determined by a formula based on percentages of the Company's receivables
and inventory. As of July 1, 2000, $1,501,000 was available for additional
borrowings under the terms of the most recent forbearance agreement. The bank
has requested that the Company seek alternative financing to replace its current
bank agreement. Alternative financing will most likely be at higher interest
rates than the Company's currently pays its bank. The Company's bank has
indicated a willingness to cooperate with the Company as it seeks to obtain
alternative financing. Although the Company believes it has made significant
progress toward refinancing its existing bank debt, there can be no assurance
that alternative financing will be available on terms acceptable to the Company,
if at all. Any inability to obtain such alternative financing would seriously
harm the Company's ability to continue as a going concern. If the Company is
unable to obtain alternative financing by August 18, 2000, the end of the
current forbearance period, the Company would need to negotiate a new
forbearance agreement with the bank. The bank has indicated a willingness to
consider such extensions in the near term, although there is no assurance that
the Company will be able to extend the maturity of the forbearance agreement if
required.
As of July 1, 2000, the Company's current liabilities exceeded current assets by
$18,528,000. This is due primarily to the reclassification of $16,540,000 to
current liabilities from long-term liabilities as a result of the current
forbearance agreement. The Company's working capital deficit of $18,528,000 on
July 1, 2000 represents a decrease in the working capital deficit of $2,307,000
from the working capital deficit of $20,835,000 the Company had on July 3, 1999.
The Company has been advised by its independent public accountants that, if the
indebtedness does not meet the requirements to be classified as long-term prior
to the issuance of their audit report on the Company's consolidated financial
statements for the year ending December 30, 2000,
<PAGE> 12
their auditors' report on those consolidated financial statements will continue
to include an explanatory paragraph indicating the existence of substantial
doubt as to the Company's ability to continue as a going concern subject to the
ultimate resolution of the repayment requirements under the Company's bank debt.
All statements other than historical statements contained in this report on Form
10-Q constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Without limitation, these forward
looking statements include statements regarding the Company's business strategy
and plans, statements about the adequacy of the Company's working capital and
other financial resources and other statements herein that are not of a
historical nature. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties and other factors, many of which are outside of the Company's
control, that could cause actual results to differ materially from such
statements. These include, but are not limited to, factors which could affect
demand for the Company's products and services such as general economic
conditions and economic conditions in the aerospace industry and the other
industries in which the Company competes; competition from the Company's
competitors; the Company's ability to arrange alternative financing to replace
its current bank financing and the terms of any such alternative financing; the
Company's ability to continue as a going concern if it is unable to arrange
alternative financing; the Company's ability to dispose of underutilized assets;
the Company's ability to complete $14,000,000 of its July 1, 2000 backlog during
the remainder of the 2000 fiscal year; and other factors discussed in this
report and in the Company's annual report on Form 10-K for the year ended
January 1, 2000. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
<PAGE> 13
PART II -- OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 16, 2000 the Company held its annual meeting of shareholders. The
following directors were elected at the meeting.
<TABLE>
<CAPTION>
Votes Cast
Votes Against or
Director Cast For Withheld
-------- -------- --------
<S> <C> <C>
John J. DiFrancesco 2,801,156 1,143,033
William J. Gallagher 2,957,708 986,481
Robert J. Gilchrist 2,975,272 968,917
Lee Morris 2,969,956 974,233
Arnold J. Sargis 2,776,506 1,167,683
Daniel C. Tracy 2,969,272 974,917
Stephen G.W. Walk 2,784,638 1,159,551
</TABLE>
At the same meeting the appointment of Arthur Andersen LLP as auditors for the
Company for the fiscal year ending December 30, 2000 was ratified with a vote of
3,656,635 for and 287,554 against or withheld.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3.1 Edac's Amended and Restated Articles of Incorporation
3.2 Edac's By-laws
10.1 Stock Pledge Agreement
10.2 Second Amendment to Forbearance Agreement
10.3 Third Amendment to Forbearance Agreement
10.4 Fourth Amendment to Forbearance Agreement
10.5 Agreement for Extension of Expiration Date
10.6 Second Agreement for Extension of Expiration Date
10.7 Third Agreement for Extension of Expiration Date
10.8 Consulting Agreement between John DiFrancesco and Edac dated
June 1, 2000
27 Financial Data Schedule
<PAGE> 14
(b) Reports on Form 8-K
None
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EDAC TECHNOLOGIES CORPORATION
August 4, 2000 By /s/ Ronald G. Popolizio
-----------------------------------
Ronald G. Popolizio, Chief Financial
Officer and duly authorized officer
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page Number
in Sequential
NUMBER DESCRIPTION Numbering System
<S> <C> <C>
3.1 Edac's Amended and Restated Articles of (1)
Incorporation
3.2 Edac By-laws (2)
10.1 Stock Pledge Agreement dated as of
January 26, 2000 by and between Edac
and Fleet National Bank
10.2 Second Amendment to Forbearance Agreement
dated as of April 30, 2000 by and between Edac
and Fleet National Bank
10.3 Third Amendment to Forbearance Agreement
dated as of June 3, 2000 by and between Edac
and Fleet National Bank
10.4 Fourth Amendment to Forbearance Agreement
Dated July 31, 2000 by and between Edac
and Fleet National Bank
10.5 Agreement for Extension of Expiration Date
Pegos Machine Corp. dated as of March 31, 2000
10.6 Second Agreement for Extension of Expiration
Date Pegos Machine Corp. dated as of
May 31, 2000
10.7 Third Agreement for Extension of Expiration
Date Pegos Machine Corp. dated as of
July 31, 2000
10.8 Consulting Agreement between John DiFrancesco
and Edac dated June 1, 2000
27 Financial Data Schedule
</TABLE>
(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 Annual Report on
Form 10-K for the year ended December 31, 1995.
