June 5, 2003
Businesswire
1185 Avenue of the Americas, 3rd Floor
New York, NY 10036
FROM: William A. Smith, Jr. ACCOUNT: Graham Corporation
Smith Law Office 20 Florence Avenue
21 Callingham Road Batavia, NY 14020
P.O. Box 841
Pittsford, NY 14534 ATT: Carole M. Anderson
Please distribute the following press release on your National wire.
Please send us by fax (585-343-1177) copies of Dow Jones, Reuters, and any
other wire service reports of this release when you receive them.
QUOTE
FOR GRAHAM CORPORATION
Company Contact: J. Ronald Hansen
Batavia, New York 14020 - Phone (585) 343-2216
PRESS RELEASE
FOR IMMEDIATE RELEASE:
June 5, 2003
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR FISCAL YEAR AND FOURTH QUARTER ENDED MARCH 31, 2003
Batavia, N.Y. (June 5, 2003) -- Graham Corporation (GHM:ASE) today
reported results for the fiscal year and fourth quarter ended March 31,
2003.
Sales for the fiscal year ended March 31, 2003 were $49,378,000. Net
income for the year was $133,000 or diluted earnings per share of $.08.
Sales for the fourth quarter of the fiscal year were $14,070,000. Net
income for the fourth quarter was $1,120,000 or diluted earnings per share
of $.67. Two significant transactions affected the fourth quarter. The
Company had reserved capacity in previous quarters for a large electrical
power condenser that was placed on hold. During the fourth quarter this
order was formally cancelled, which resulted in a before income tax gain of
$1,801,000. Also, the Company recorded a provision for employee severance
expense of $658,000.
By comparison, sales for the previous fiscal year were $47,396,000
producing a net income of $2,305,000, or diluted earnings per share of
$1.38. Sales for the fourth quarter of the previous fiscal year were
$11,923,000 producing net income of $2,211,000 or diluted earnings per
share of $1.32. Four electric power condenser orders were cancelled in the
fourth quarter. The effect on income before tax of these terminated orders
was $3,989,000.
<PAGE 2>
New orders for the fiscal year ended March 31, 2003 were $40,596,000
compared to $54,464,000 for the previous full fiscal year. New orders for
the fourth quarter of the fiscal year ended March 31, 2003 were
$12,372,000, the highest level of quarterly bookings for the year. This
compares to $16,764,000 for the fourth quarter of the previous fiscal year
and to $8,790,000 for the third quarter of the fiscal year ended March 31,
2003.
Consolidated backlog on March 31, 2003 was $25,069,000 compared to
$33,871,000 on March 31, 2002.
Al Cadena, President and Chief Executive Officer of Graham, commented,
"Graham's markets continue to be extremely competitive. However, we see
new opportunities coming from overseas markets such as China. We have re-
sized the Company to bring its cost structure into line with anticipated
conditions. The Company remains in a very strong financial position,
enabling it to take advantage of such opportunities as we may identify for
expanding the product base. We will continue executing our strategies for
developing new products to increase the breadth of our vacuum product line.
This is one of our important investments in the Company's future."
Graham designs and builds vacuum and heat transfer equipment for
process industries throughout the world. It is a worldwide leader in
vacuum technology. The principal markets for Graham's equipment are the
chemical, petrochemical, petroleum refining and electric power generating
industries, including cogeneration and geothermal plants. Other markets
served include metal refining, pulp and paper, shipbuilding, water heating,
refrigeration, desalination, food processing, drugs, heating, ventilating
and air conditioning. Graham's ejectors, liquid ring and dry vacuum pumps,
condensers, heat exchangers and other products, sold either as components
or as complete systems, are used by its customers to produce synthetic
fibers, chemicals, petroleum products (including gasoline), electric power,
processed food (including canned, frozen and dairy products),
pharmaceutical products, paper, steel, fertilizers and numerous other
products used everyday by people throughout the world.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are subject to certain risks, uncertainties and
assumptions. These risks and uncertainties, which are more fully described
in Graham's Annual and Quarterly Reports filed with the Securities and
Exchange Commission, include changes in market conditions in the industries
in which the Company operates. Should one or more of these risks or
uncertainties materialize, or should the assumptions prove incorrect,
actual results may vary in material aspects from those currently
anticipated.
<PAGE 3>
GRAHAM CORPORATION
SUMMARY OF CONSOLIDATED SALES AND EARNINGS
Three Months Ended Twelve Months Ended
(Unaudited) (Audited)
March 31, March 31, March 31, March 31,
2003 2002 2003 2002
--------- --------- --------- ---------
Net Sales $14,070,000 $11,923,000 $49,378,000 $47,396,000
Costs and Expenses 13,531,000 12,555,000 50,329,000 47,908,000
Other Income (1,143,000) (3,989,000) (1,143,000) (3,989,000)
Income Before Income
Taxes 1,682,000 3,357,000 192,000 3,477,000
Provision for Income
Taxes 562,000 1,146,000 59,000 1,172,000
Net Income 1,120,000 2,211,000 133,000 2,305,000
Per Share Data
Net Income - Basic $0.67 $1.33 $0.08 $1.40
Diluted 0.67 1.32 0.08 1.38
<PAGE 4>
GRAHAM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET (AUDITED)
March 31, March 31,
2003 2002
--------- ---------
ASSETS
Cash and cash equivalents $ 217,000 $ 2,901,000
Investments 6,446,000 2,496,000
Accounts Receivable 7,295,000 17,053,000
Inventories 10,341,000 8,342,000
Prepaid Expenses and Other Current Assets 2,472,000 1,595,000
----------- -----------
Total Current Assets 26,771,000 32,387,000
Property, Plant & Equipment - Net 9,808,000 9,726,000
Other Assets 1,701,000 1,591,000
----------- -----------
Total $38,280,000 $43,704,000
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Short-Term Debt & Current Portion
of Long-Term Debt $ 1,604,000 $ 1,135,000
Accounts Payable 4,629,000 4,333,000
Other Current Liabilities 7,759,000 13,107,000
----------- -----------
Total Current Liabilities 13,992,000 18,575,000
Long-Term Debt 127,000 150,000
Deferred Liabilities 5,368,000 5,343,000
Shareholders' Equity 18,793,000 19,636,000
----------- -----------
Total $38,280,000 $43,704,000
=========== ===========
END QUOTE