- Revenue of $39.7 million in the quarter, up 55% over prior-year
period; fiscal 2022 revenue increased 26% to $122.8 million
- Defense industry revenue in quarter of $18.7 million was 47% of
total and was $62.2 million, or 51% of total, for the fiscal year
demonstrating shift in business mix
- Yearend backlog was $256.5 million including $195 million, or
76%, related to the defense industry
- Barber-Nichols acquisition contributed 62% of orders in
quarter, or $14.6 million of $23.7 million total and continued to
outperform expectations
- Recorded fourth quarter net loss of $1.4 million and $0.4
million in adjusted EBITDA*; fiscal 2022 net loss of $8.8
million
- Recently shipped on schedule first article U.S. Navy project;
delivery advanced efforts to reduce cost overruns
- Expect fiscal 2023 revenue to grow to $135 million to $150
million, up 16% at mid-point over fiscal 2022; expect adjusted
EBITDA* to increase to $6.5 million to $9.5 million
Graham Corporation (NYSE: GHM), a global leader in the design
and manufacture of mission critical fluid, power, heat transfer and
vacuum technologies for the defense, space, energy and process
industries, today reported financial results for its fourth quarter
and full fiscal year ended March 31, 2022, (“fiscal 2022”).
Financial results include those of Barber-Nichols, LLC (“BN” or
“the acquisition”) from the date it was acquired on June 1,
2021.
Daniel J. Thoren, President and CEO, commented, “Fiscal 2022 was
a challenging year, but we made good progress in the quarter and
are validating our strategy to increase margins overall and in
markets with strong growth drivers such as defense and space.
Importantly, we are improving processes and have added talent to
mitigate the challenges in our Batavia, NY defense operations. In
addition, our fluid and power business is winning new contracts
that provide opportunity for more growth and long-term production,
and our aftermarket sales continue to be strong, which is a leading
indicator for future capital investment by our customers.
"Notably, we recently shipped a first article condenser for a
critical navy submarine application and are on schedule to ship
additional critical U.S. Navy projects throughout fiscal 2023. As
we make further progress on our production schedule and grow our
welding staff, we will be able to reduce our reliance on contract
welders. This is expected to help with margin improvement over the
coming quarters.”
Fiscal 2023 Outlook
Mr. Thoren concluded, “The future of Graham is very positive. At
the heart of the Company, we are engineering experts in complex
fluid, power, heat transfer and vacuum systems. Expanding our focus
to more growth-oriented markets of defense, space and alternative
energy, augments our legacy energy and process businesses where we
have a large global installed base. As we look out over the next
five years, a new, reenergized Graham has the platform to grow in
fluid and power technologies and plans to build a better heat
transfer and vacuum technologies business. We believe that over
time this strategy will create a stronger enterprise with
materially expanded adjusted EBITDA margins in the low to mid-teens
with high single-digit top-line growth as we continually
improve.”
Revenue in fiscal 2023 is expected to be $135 million to $150
million with gross margins of approximately 16% to 17% and selling,
general and administrative (“SG&A”) expenses to be
approximately 15% to 16% of sales. The expected effective tax rate
for fiscal 2023 is approximately 21% to 22%. Adjusted EBITDA for
fiscal 2023 is expected to be approximately $6.5 million to $9.5
million, yielding an adjusted EBITDA margin* of approximately 5% to
6% compared with a $5.0 million loss in fiscal 2022. The Company
expects the first quarter of fiscal 2023 to remain challenging and
for results to improve as the year progresses.
Capital expenditures for fiscal 2023 are expected to be $4.5
million to $5.5 million.
Separately today, the Company announced its new strategic plan
outlining its operating and financial goals.
Fourth Quarter Fiscal 2022 Sales Summary (All comparisons
are with the same prior-year period unless noted otherwise.)
Net sales of $39.7 million increased 55%, or $14.0 million, as
acquired revenue of $15.9 million and strong aftermarket sales were
partially offset by declines in the organic businesses. By
industry, improvements in the defense and space industry, which is
new to the Company with the acquisition of BN, offset weakness in
refining and chemical/petrochemical sales. See the accompanying
financial tables for a further breakdown of sales by industry and
region.
Fourth Quarter Fiscal 2022 Performance
Review (All comparisons are with the same prior-year period
unless noted otherwise.)
($ in millions except per share data)
Q4 FY22
Q4 FY21 Change Net sales
$
39.7
$
25.7
$
14.0
Gross profit
$
4.2
$
5.0
$
(0.8
)
Gross margin
10.6
%
19.4
%
Operating (loss) profit
$
(2.1
)
$
0.6
$
(2.7
)
Operating margin
(5.2
%)
2.3
%
Net (loss) income
$
(1.4
)
$
0.4
$
(1.8
)
Diluted EPS
$
(0.13
)
$
0.04
Adjusted EBITDA*
$
0.4
$
1.0
$
(0.6
)
Adjusted EBITDA margin*
1.0
%
4.0
%
*Graham believes that adjusted EBITDA (defined as consolidated
net (loss) income before net interest expense, income taxes,
depreciation, amortization, other acquisition related expenses
(income), and other unusual/nonrecurring expenses), and adjusted
EBITDA margin (adjusted EBITDA as a percentage of sales), which are
non-GAAP measures, help in the understanding of its operating
performance. Moreover, Graham’s credit facility also contains
ratios based on adjusted EBITDA as defined in the lending
agreement. Graham also believes that adjusted diluted (loss)
earnings per share, which excludes intangible amortization, other
costs related to the acquisition, and other unusual/nonrecurring
(income) expenses, provides a better representation of the cash
earnings of the Company. See the attached tables and other
information on pages 11 and 12 for important disclosures regarding
Graham’s use of adjusted EBITDA, adjusted EBITDA margin and
adjusted diluted (loss) earnings per share, as well as the
reconciliation of net (loss) income to adjusted EBITDA and diluted
(loss) earnings per share.
Compared with the prior year period, the decline in gross profit
and contraction of gross margin reflected challenges with the
defense business at Graham’s Batavia operations which had lower
sales and higher costs relating to material and labor over runs for
first article projects. Sequentially, gross margin improved 8.7
percentage points as the Company advanced these projects, improved
processes, and reduced related costs.
SG&A expenses in the fourth quarter of fiscal 2022 were $6.1
million, up $1.7 million over the prior-year period including $0.3
million of intangible amortization. The acquisition added $1.7
million in incremental SG&A expenses in the quarter and there
was an additional $0.2 million related to CFO transition costs and
$0.3 million of costs in connection with a credit agreement
amendment and waiver.
Net loss and loss per diluted share were $1.4 million and $0.13,
respectively. On a non-GAAP basis, which excludes intangible
amortization, other costs related to the acquisition, and other
unusual/nonrecurring (income) expenses, adjusted diluted loss per
share* was $0.02.
Full Year Fiscal 2022 Performance
Review (All comparisons are with the same prior-year period
unless noted otherwise.)
($ in millions except per share data)
YTD FY22
YTD FY21 Change Net sales
$
122.8
$
97.5
$
25.3
Gross profit
$
9.1
$
20.5
$
(11.4
)
Gross margin
7.4
%
21.0
%
Operating (loss) profit
$
(11.3
)
$
3.0
$
(14.3
)
Operating margin
(9.2
%)
3.1
%
Net (loss) income
$
(8.8
)
$
2.4
$
(11.2
)
Diluted EPS
$
(0.83
)
$
0.24
Adjusted EBITDA*
$
(5.0
)
$
5.1
$
(10.1
)
Adjusted EBITDA margin*
-4.1
%
5.2
%
Net sales for the full fiscal year of 2022 were $122.8 million,
up $25.3 million, or 26%, driven by sales of $47.9 million from the
BN acquisition and higher aftermarket sales. Sales to the defense
industry increased 160%, or $38.2 million, to $62.2 million,
representing 51% of total revenue. The expansion in defense was
partially offset by declines in the commercial refining and
chemical markets, primarily in Asia.
Sales in the U.S. increased $44.9 million, or 85%, to $97.6
million and was 80% of total sales in the full year of fiscal 2022,
as revenue from the acquisition is primarily in the U.S.
International sales, which accounted for 20% of total sales,
decreased by $19.6 million, or 44%, to $25.2 million.
Gross profit and margin were down compared with the prior-year
period due to the same factors which impacted the quarter. The
Company elected to over-resource certain critical defense orders in
its Batavia operation, which included increasing the use of
contract welders to meet delivery schedules and redirecting
resources away from commercial business. Combined with cost
overruns, Graham estimates that these factors were an impact of
over $10 million to gross profit in fiscal 2022. The BN acquisition
and strong aftermarket sales helped to offset those losses. The
impact of the low margin defense projects and related cost overruns
in the Batavia operations are expected to lessen over the coming
quarters and are expected to be completed before the end of fiscal
2023.
SG&A expenses in the full year of fiscal 2022 were $21.3
million, including intangible amortization of $0.9 million, an
increase of $3.8 million, compared with SG&A expenses of $17.5
million in the full year of fiscal 2021. The increase was primarily
due to the addition of the BN business which added $4.8 million in
incremental expenses as well as costs associated with the
acquisition, executive management transition and financing.
Offsetting these increases was reduced incentive compensation.
Net loss and loss per diluted share were $8.8 million and $0.83,
respectively. On a non-GAAP basis, which excludes intangible
amortization, other costs related to the acquisition, and other
unusual/nonrecurring (income) expenses, adjusted diluted loss per
share* was $0.62.
Cash Management and Balance Sheet
Cash generated from operations in the quarter was $12.3 million.
Cash, cash equivalents and investments at March 31, 2022, were
$14.7 million compared with $14.0 million at December 31, 2021, and
$65.0 million at the end of fiscal 2021, which was prior to the BN
acquisition. Capital expenditures in the quarter were $0.4 million
and for fiscal 2022 were $2.3 million.
Debt at the end of the fourth quarter was reduced by $10.4
million to $18.4 million compared with the end of the fiscal 2022
third quarter. Graham executed a waiver and amendments to its
credit agreement, which expanded availability for letters of credit
and changed the minimum EBITDA requirements. The Company is in
compliance with all financial covenants of that agreement.
Orders and Backlog
($ in millions)
Q1 21 Q2 21 Q3 21 Q4 21 FY2021
Q1 22 Q2 22 Q3 22 Q4 22 FY2022
Orders
$
11.5
$
35.0
$
61.8
$
13.4
$
121.6
$
20.9
$
31.4
$
68.0
$
23.7
$
143.9
Backlog
$
107.2
$
114.9
$
149.7
$
137.6
$
137.6
$
235.9
$
233.2
$
272.6
$
256.5
$
256.5
Orders for the three-month period ended March 31, 2022, were up
$10.3 million, or 77%, to $23.7 million compared with $13.4 million
for the same period of fiscal 2021. Orders related to the
acquisition were $14.6 million for the fiscal 2022 fourth
quarter.
Coming off strong orders in the third quarter of fiscal 2022,
defense industry orders in the fourth quarter were $2.8 million,
reflecting the timing of project releases. Space orders had a solid
sequential increase of 86% to $5.4 million. In the energy business,
refining was down 57% sequentially from the third quarter, but was
up 50% compared with the prior-year period. Orders from the
chemical and petrochemical market stabilized with a comparable
level of orders over the past three fiscal quarters.
Aftermarket and small parts orders for the refining and
chemical/petrochemical markets improved in the fourth quarter. This
business tends to be a leading indicator of future capital
investments by customers in this market.
Backlog at March 31, 2022, was $256.5 million, compared with
$272.6 million at December 31, 2021, and $137.6 million at March
31, 2021. The 6% sequential decrease primarily reflects backlog
being released for delivery. The acquisition added $117.8 million
to fiscal 2022 yearend backlog. Approximately 40% to 50% of orders
currently in our backlog are expected to be converted to sales
within one year. Most of the orders that are expected to convert
beyond twelve months are for the defense industry, specifically the
U.S. Navy.
Backlog by industry at March 31, 2022, was approximately:
- 76% for defense projects
- 10% for refinery projects
- 5% for chemical/petrochemical projects
- 4% for space projects
- 5% for other industrial applications
Corporate Strategy and Financial Results Webinar
The Company will host a webinar to discuss its corporate
strategy and fourth quarter and fiscal year 2022 financial results
tomorrow, June 9, 2022 at 11:00 a.m. Eastern Time. Internet webcast
link and accompanying slide presentations will be available here:
https://ir.grahamcorp.com/.
A question-and-answer session will follow the presentations.
Questions may be submitted through the webinar portal or,
alternatively, a teleconference number will be provided to ask any
questions live at the event.
A webcast replay will be available on the Company’s investor
relations website, where a transcript will also be posted once
available.
ABOUT GRAHAM CORPORATION
Graham is a global leader in the design and manufacture of
mission critical fluid, power, heat transfer and vacuum
technologies for the defense, space, energy and process industries.
The Graham Manufacturing and Barber-Nichols’ global brands are
built upon world-renowned engineering expertise in vacuum and heat
transfer, cryogenic pumps and turbomachinery technologies, as well
as its responsive and flexible service and the unsurpassed quality
customers have come to expect from the Company’s products and
systems.
Graham routinely posts news and other important information on
its website, www.grahamcorp.com, where additional information on
Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains 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.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as “expects,”
“estimates,” “outlook,” “anticipates,” “believes,” “could,”
“tends,” “opportunity,” “plans,” ”may,” “will,” and other similar
words. All statements addressing operating performance, events, or
developments that Graham Corporation expects or anticipates will
occur in the future, including but not limited to, its ability and
the timing needed to address challenges in its defense business,
including at the Batavia, NY operations, profitability of future
projects, the development and impact of improved processes, its
ability to meet customers’ delivery expectations, the future impact
of low margin defense projects and related cost overruns, expected
expansion and growth opportunities within its domestic and
international markets, anticipated revenue, adjusted EBITDA,
adjusted EBITDA margins, and SG&A expenses, the timing of
conversion of backlog to sales, market presence, profit margins,
tax rates, foreign sales operations, its ability to improve cost
competitiveness and productivity, customer preferences, changes in
market conditions in the industries in which it operates, labor
constraints, the effect on its business of volatility in
commodities prices, including, but not limited to, changes in
general economic conditions and customer behavior, forecasts
regarding the timing and scope of the economic recovery in its
markets, its acquisition and growth strategy and its operations in
China, India and other international locations, are forward-looking
statements. Because they are forward-looking, they should be
evaluated in light of important risk factors and uncertainties.
These risk factors and uncertainties are more fully described in
Graham Corporation’s most recent Annual Report filed with the
Securities and Exchange Commission, included under the heading
entitled “Risk Factors.”
Should one or more of these risks or uncertainties materialize
or should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on
Graham Corporation’s forward-looking statements. Except as required
by law, Graham Corporation disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
Forward-Looking Non-GAAP Measures
Forward looking adjusted EBITDA and adjusted EBITDA margin are
non-GAAP measures. The Company is unable to present a quantitative
reconciliation of these forward-looking non-GAAP financial measures
to their most directly comparable forward-looking GAAP financial
measures because such information is not available, and management
cannot reliably predict the necessary components of such GAAP
measures without unreasonable effort largely because forecasting or
predicting our future operating results is subject to many factors
out of our control or not readily predictable. In addition, the
Company believes that such reconciliations would imply a degree of
precision that would be confusing or misleading to investors. The
unavailable information could have a significant impact on the
Company’s fiscal 2023 financial results. These non-GAAP financial
measures are preliminary estimates and are subject to risks and
uncertainties, including, among others, changes in connection with
purchase accounting, quarter-end and year-end adjustments. Any
variation between the Company’s actual results and preliminary
financial estimates set forth above may be material.
FINANCIAL TABLES FOLLOW.
Graham Corporation
Consolidated Statements of
Operations - Unaudited
(Amounts in thousands, except per
share data)
Three Months Ended Year Ended March 31,
March 31,
2022
2021
% Change
2022
2021
% Change Net sales
$
39,737
$
25,671
55
%
$
122,814
$
97,489
26
%
Cost of products sold
35,526
20,690
72
%
113,685
77,020
48
%
Gross profit
4,211
4,981
(15
%)
9,129
20,469
(55
%)
Gross margin
10.6
%
19.4
%
7.4
%
21.0
%
Other expenses and income: Selling, general and
administrative
5,852
4,380
34
%
20,386
17,471
17
%
Selling, general and administrative – amortization
274
-
NA
913
-
NA Other operating expense (income), net
135
-
NA
(827
)
-
NA
Operating (loss) profit
(2,050
)
601
NA
(11,343
)
2,998
NA Operating margin
(5.2
%)
2.3
%
-9.2
%
3.1
%
Other (income) expense
(111
)
51
(318
%)
(527
)
(113
)
366
%
Interest income
(7
)
(24
)
(71
%)
(50
)
(167
)
(70
%)
Interest expense
150
2
7400
%
450
11
3991
%
(Loss) income before (benefit) provision for income taxes .
(2,082
)
572
NA
(11,216
)
3,267
NA (Benefit) provision for income taxes
(657
)
184
NA
(2,443
)
893
NA
Net (loss) income
$
(1,425
)
$
388
NA
$
(8,773
)
$
2,374
NA Per share data:
Basic:
Net (loss) income
$
(0.13
)
$
0.04
NA
$
(0.83
)
$
0.24
NA Diluted: Net (loss) income
$
(0.13
)
$
0.04
NA
$
(0.83
)
$
0.24
NA Weighted average common shares outstanding: Basic
10,645
9,989
10,541
9,959
Diluted
10,645
9,989
10,541
9,959
Dividends declared per share
$
-
$
0.11
$
0.33
$
0.44
Graham Corporation
Consolidated Balance Sheets –
Unaudited
(Amounts in thousands, except per
share data)
March 31, March 31,
2022
2021
Assets Current assets: Cash and cash equivalents
$
14,741
$
59,532
Investments
-
5,500
Trade accounts receivable, net of allowances ($87 and $29 at March
31, 2022 and 2021, respectively)
27,645
17,378
Unbilled revenue
25,570
19,994
Inventories
17,414
17,332
Prepaid expenses and other current assets
1,391
512
Income taxes receivable
459
-
Total current assets
87,220
120,248
Property, plant and equipment, net
24,884
17,618
Prepaid pension asset
7,058
6,216
Operating lease assets
8,394
95
Goodwill
23,523
-
Customer relationships
11,308
-
Technology and technical know-how
9,679
-
Other intangible assets, net
8,990
-
Deferred income tax asset
2,441
-
Other assets
194
103
Total assets
$
183,691
$
144,280
Liabilities and stockholders’ equity Current
liabilities: Current portion of long-term debt
$
2,000
$
-
Current portion of finance lease obligations
23
21
Accounts payable
16,662
17,972
Accrued compensation
7,991
6,106
Accrued expenses and other current liabilities
6,047
4,628
Customer deposits
25,644
14,059
Operating lease liabilities
1,057
46
Income taxes payable
-
741
Total current liabilities
59,424
43,573
Long-term debt
16,378
-
Finance lease obligations
11
34
Operating lease liabilities
7,460
37
Deferred income tax liability
62
635
Accrued pension and postretirement benefit liabilities
1,666
2,072
Other long-term liabilities
2,196
-
Total liabilities
87,197
46,351
Stockholders’ equity: Preferred stock, $1.00 par
value, 500 shares authorized
-
-
Common stock, $0.10 par value, 25,500 shares authorized, 10,801 and
10,748 shares issued and 10,636 and 9,959 shares outstanding at
March 31, 2022 and 2021, respectively
1,080
1,075
Capital in excess of par value
27,770
27,272
Retained earnings
77,076
89,372
Accumulated other comprehensive loss
(6,471
)
(7,397
)
Treasury stock (164 and 790 shares at March 31, 2022 and 2021,
respectively)
(2,961
)
(12,393
)
Total stockholders’ equity
96,494
97,929
Total liabilities and stockholders’ equity
$
183,691
$
144,280
Graham Corporation
Consolidated Statements of
Cash Flows – Unaudited
(Amounts in thousands)
Year Ended March 31,
2022
2021
Operating activities: Net (loss) income
$
(8,773
)
$
2,374
Adjustments to reconcile net (loss) income to net cash (used)
provided by operating activities: Depreciation
3,077
1,945
Amortization
2,522
-
Amortization of actuarial losses
996
1,066
Goodwill and other impairments
184
Equity-based compensation expense
809
864
Gain on disposal or sale of property, plant and equipment
23
2
Change in fair value of contingent consideration
(1,900
)
-
Deferred income taxes
(3,233
)
(561
)
(Increase) decrease in operating assets: Accounts receivable
(2,055
)
(1,791
)
Unbilled revenue
1,550
(5,298
)
Inventories
3,483
5,185
Prepaid expenses and other current and non-current assets
(340
)
416
Income taxes receivable
(1,208
)
1,215
Operating lease assets
1,059
155
Prepaid pension asset
(1,207
)
(841
)
Increase (decrease) in operating liabilities: Accounts payable
(3,238
)
3,556
Accrued compensation, accrued expenses and other current and
non-current liabilities
1,164
3,101
Customer deposits
5,523
(13,206
)
Operating lease liabilities
(962
)
(158
)
Long-term portion of accrued compensation, accrued pension
liability and accrued postretirement benefits
491
70
Net cash used by operating activities
(2,219
)
(1,722
)
Investing activities: Purchase of property, plant and
equipment
(2,324
)
(2,158
)
Proceeds from disposal of property, plant and equipment
-
7
Purchase of investments
-
(42,603
)
Redemption of investments at maturity
5,500
77,151
Acquisition of Barber-Nichols, LLC
(60,282
)
-
Net cash (used) provided by investing activities
(57,106
)
32,397
Financing activities: Principal repayments on debt
(39,750
)
(4,599
)
Proceeds from the issuance of debt
58,250
4,599
Principal repayments on finance lease obligations
(21
)
(40
)
Repayments on lease financing obligations
(225
)
-
Payment of debt issuance costs
(271
)
-
Dividends paid
(3,523
)
(4,391
)
Purchase of treasury stock
(41
)
(23
)
Net cash provided (used) by financing activities
14,419
(4,454
)
Effect of exchange rate changes on cash
115
356
Net (decrease) increase in cash and cash equivalents
(44,791
)
26,577
Cash and cash equivalents at beginning of period
59,532
32,955
Cash and cash equivalents at end of period
$
14,741
$
59,532
Graham Corporation
Adjusted EBITDA Reconciliation
- Unaudited
($ in thousands)
Three Months Ended Year Ended March 31,
March 31,
2022
2021
2022
2021
Net (loss) income
$
(1,425
)
$
388
$
(8,773
)
$
2,374
Acquisition related inventory step-up expense
27
-
95
-
Acquisition & integration costs
189
-
562
-
Change in fair value of contingent consideration
-
-
(1,900
)
-
CEO and CFO transition costs
244
-
1,182
-
Debt amendment costs
278
-
278
-
Net interest expense (income)
143
(22
)
400
(156
)
Income taxes
(657
)
184
(2,443
)
893
Depreciation & amortization
1,602
487
5,599
1,945
Adjusted EBITDA
$
401
$
1,037
$
(5,000
)
$
5,056
Adjusted EBITDA margin %
1.0
%
4.0
%
-4.1
%
5.2
%
Adjusted Net Income and
Adjusted Diluted (Loss) Earnings per Share Reconciliation -
Unaudited
($ in thousands, except per share
amounts)
Three Months Ended Year Ended March 31,
March 31,
2022
2021
2022
2021
Net (loss) income
$
(1,425
)
$
388
$
(8,773
)
$
2,374
Acquisition related inventory step-up expense
27
-
95
-
Acquisition & integration costs
189
-
562
-
Amortization of intangible assets
757
-
2,522
-
Change in fair value of contingent consideration
-
-
(1,900
)
-
CEO and CFO transition costs
244
-
1,182
-
Debt amendment costs
278
-
278
-
Normalize tax rate to 20%(1)
(299
)
-
(548
)
-
Adjusted net (loss) income
$
(229
)
$
388
$
(6,582
)
$
2,374
Adjusted diluted (loss) earnings per share
$
(0.02
)
$
0.04
$
(0.62
)
$
0.24
1) Applies a normalized tax rate of 20% to
non-GAAP adjustments above, which are each pre-tax.
Non-GAAP Financial Measures:
Adjusted EBITDA is defined as consolidated net (loss) income
before net interest expense, income taxes, depreciation,
amortization, other acquisition related expenses, and other
nonrecurring expenses. Adjusted EBITDA margin is defined as
Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and
Adjusted EBITDA margin are not measures determined in accordance
with generally accepted accounting principles in the United States,
commonly known as GAAP. Nevertheless, Graham believes that
providing non-GAAP information, such as Adjusted EBITDA and
Adjusted EBITDA margin, is important for investors and other
readers of Graham's financial statements, as it is used as an
analytical indicator by Graham's management to better understand
operating performance. Moreover, Graham’s credit facility also
contains ratios based on EBITDA. Because Adjusted EBITDA and
Adjusted EBITDA margin are non-GAAP measures and are thus
susceptible to varying calculations, Adjusted EBITDA and Adjusted
EBITDA margin, as presented, may not be directly comparable to
other similarly titled measures used by other companies.
Adjusted net income and adjusted diluted (loss) earnings per
share are defined as net income and diluted (loss) earnings per
share as reported, adjusted for certain items and at a normalized
tax rate. Adjusted net income and adjusted diluted (loss) earnings
per share are not measures determined in accordance with GAAP, and
may not be comparable to the measures as used by other companies.
Nevertheless, Graham believes that providing non-GAAP information,
such as adjusted net income and adjusted diluted (loss) earnings
per share, is important for investors and other readers of the
Company’s financial statements and assists in understanding the
comparison of the current quarter’s and current fiscal year's net
income and diluted (loss) earnings per share to the historical
periods' net income and diluted (loss) earnings per share. Graham
also believes that adjusted (loss) earnings per share, which adds
back intangible amortization expense related to acquisitions,
provides a better representation of the cash earnings of the
Company.
Graham Corporation
Additional Information –
Unaudited
($ in millions)
ORDERS BY INDUSTRY FY 2022*
Q1 % of Q2 % of Q3 % of
Q4 % of FY2022 % of
6/30/21 Total 9/30/21 Total
12/31/21 Total 3/31/22 Total
Total Refining
$
11.4
55
%
$
5.0
16
%
$
8.4
12
%
$
3.6
15
%
$
28.4
20
%
Chemical/ Petrochemical
$
3.4
16
%
$
6.1
19
%
$
6.2
9
%
$
6.5
28
%
$
22.1
15
%
Defense
$
2.4
12
%
$
12.4
40
%
$
45.6
67
%
$
2.8
12
%
$
63.2
44
%
Space
$
-
0
%
$
2.4
8
%
$
2.9
4
%
$
5.4
23
%
$
10.6
7
%
Other Commercial
$
3.6
17
%
$
5.6
17
%
$
5.0
8
%
$
5.5
22
%
$
19.6
14
%
Total
$
20.9
$
31.4
$
68.0
$
23.7
$
143.9
ORDERS BY INDUSTRY FY 2021*
Q1 % of Q2 % of Q3
% of Q4 % of FY2021 % of
6/30/20 Total 9/30/20
Total 12/31/20 Total 3/31/21
Total Total Refining
$
8.7
76
%
$
16.8
48
%
$
3.2
5
%
$
2.4
17
%
$
31.0
26
%
Chemical/ Petrochemical
$
1.6
14
%
$
3.3
9
%
$
4.6
7
%
$
2.7
20
%
$
12.3
10
%
Defense
$
(1.2
)
-10
%
$
12.6
36
%
$
52.3
85
%
$
5.4
41
%
$
69.2
57
%
Other Commercial
$
2.4
20
%
$
2.3
7
%
$
1.7
3
%
$
2.9
22
%
$
9.1
7
%
Total
$
11.5
$
35.0
$
61.8
$
13.4
$
121.6
*Quarters may not sum to
year-to-date/total fiscal year due to rounding.
Graham Corporation
Additional Information –
Unaudited
($ in millions)
SALES BY INDUSTRY FY 2022*
Q1 % of Q2 % of Q3 % of
Q4 % of FY2022 % of
6/30/21 Total 9/30/21 Total
12/31/21 Total 3/31/22 Total
Total Refining
$
4.6
23
%
$
6.3
19
%
$
4.0
14
%
$
9.5
24
%
$
24.4
20
%
Chemical/ Petrochemical
$
4.6
23
%
$
3.5
10
%
$
3.0
11
%
$
4.9
12
%
$
16.0
13
%
Defense
$
7.1
35
%
$
19.8
58
%
$
16.6
58
%
$
18.7
47
%
$
62.2
51
%
Space
$
0.7
4
%
$
1.3
4
%
$
1.5
5
%
$
2.2
6
%
$
5.7
5
%
Other Commercial
$
3.2
15
%
$
3.2
9
%
$
3.7
12
%
$
4.4
11
%
$
14.5
13
%
Total
$
20.2
$
34.1
$
28.8
$
39.7
$
122.8
SALES BY INDUSTRY FY 2021*
Q1 % of Q2 % of Q3
% of Q4 % of FY2021 % of
6/30/20 Total 9/30/20
Total 12/31/20 Total 3/31/21
Total Total Refining
$
2.7
16
%
$
10.3
37
%
$
16.5
60
%
$
10.3
40
%
$
39.7
41
%
Chemical/ Petrochemical
$
8.0
48
%
$
5.5
20
%
$
4.8
18
%
$
5.8
23
%
$
24.0
24
%
Defense
$
3.5
21
%
$
9.4
34
%
$
4.5
17
%
$
6.5
25
%
$
24.0
25
%
Other Commercial
$
2.5
15
%
$
2.8
10
%
$
1.4
5
%
$
3.1
12
%
$
9.8
10
%
Total
$
16.7
$
28.0
$
27.2
$
25.7
$
97.5
SALES BY REGION FY 2022*
Q1 % of Q2 % of Q3
% of Q4 % of FY2022 % of
6/30/21 Total 9/30/21
Total 12/31/21 Total 3/31/22
Total Total United States
$
13.9
69
%
$
26.2
77
%
$
24.7
86
%
$
32.8
83
%
$
97.6
80
%
Middle East
$
0.6
3
%
$
1.0
3
%
$
0.6
2
%
$
0.3
1
%
$
2.5
2
%
Asia
$
3.5
17
%
$
5.5
16
%
$
1.5
5
%
$
3.3
8
%
$
13.8
11
%
Other
$
2.2
11
%
$
1.4
4
%
$
2.0
7
%
$
3.3
8
%
$
8.9
7
%
Total
$
20.2
$
34.1
$
28.8
$
39.7
$
122.8
SALES BY REGION FY 2021*
Q1 % of Q2 % of Q3
% of Q4 % of FY2021 % of
6/30/20 Total 9/30/20
Total 12/31/20 Total 3/31/21
Total Total United States
$
9.4
56
%
$
17.3
62
%
$
10.7
39
%
$
15.3
60
%
$
52.7
54
%
Middle East
$
0.4
3
%
$
1.0
4
%
$
0.8
3
%
$
2.6
10
%
$
4.8
5
%
Asia
$
5.2
31
%
$
4.5
16
%
$
11.2
41
%
$
4.7
18
%
$
25.6
26
%
Other
$
1.7
10
%
$
5.2
18
%
$
4.5
17
%
$
3.1
12
%
$
14.4
15
%
Total
$
16.7
$
28.0
$
27.2
$
25.7
$
97.5
*Quarters may not sum to
year-to-date/total fiscal year due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220608006015/en/
Christopher J. Thome Vice President - Finance and CFO Phone:
(585) 343-2216 Deborah K. Pawlowski Kei Advisors LLC Phone: (716)
843-3908 dpawlowski@keiadvisors.com
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