July 22, 2003
Businesswire
1185 Avenue of the Americas, 3rd Floor
New York, NY 10036
FROM: William A. Smith, Jr. ACCOUNT: Graham Corporation
Smith Law Office, P.C. 20 Florence Avenue
21 Callingham Road Batavia, NY 14020
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:
July 22, 2003
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR FIRST QUARTER OF FISCAL YEAR ENDING MARCH 2004
Batavia, N.Y. (July 22, 2003) -- Graham Corporation (GHM:ASE) announced
today results for the first quarter (April - June 2003) of its current
fiscal year. Compared to the first quarter of the previous fiscal year,
sales were $8,435,000 versus $10,168,000; net loss was $658,000 versus a
$456,000 loss for the same quarter of the previous year; and diluted loss
per share was $.40 versus a loss of $.27 per share for the same quarter of
the previous year. During the quarter the Company recorded a pre-tax gain
of $522,000 resulting from curtailment of a benefit plan for post-
retirement medical coverage.
Orders for the first quarter were $11,233,000. By comparison, orders
for the same quarter in the previous fiscal year were $8,140,000.
Consolidated backlog on June 30, 2003 was at $28,002,000, compared to
$25,069,000 at March 31, 2003 and $31,896,000 at June 30, 2002.
Al Cadena, President and Chief Executive Officer of Graham Corporation
commented, "In its first quarter of the new fiscal year the Company has
begun to see the early stages of recovery in its foreign markets, in
particular in the petrochemical and fertilizer processing segments." Mr.
Cadena said that, "The Company is forecasting a profitable fiscal year with
a modest increase in sales. First quarters historically have been the
least robust for Graham. This year, in particular, results for the quarter
were adversely affected by a large job of unusual complexity, involving
changes that demanded a significantly greater proportion of time and
resources than we would normally expect on a project of its type. However,
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the Company remains in a very favorable financial position and we believe
that the cost savings implemented at the end of the last fiscal year will
allow us to reap greater advantage from the emerging recovery in our
foreign markets. We are putting in place a plan that contemplates growth
in sales over the next five years measurably exceeding underlying economic
growth in the markets we serve."
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.
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GRAHAM CORPORATION
SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED)
Three Months Ended
June 30, June 30,
2003 2002
-------- --------
Net Sales $8,435,000 $10,168,000
Costs and Expenses 9,884,000 10,859,000
Other Income (522,000)
---------- -----------
Loss Before Income Taxes (927,000) (691,000)
Benefit for Income Taxes (269,000) (235,000)
---------- -----------
Net Loss $ (658,000) $ (456,000)
========== ===========
Per Share Data
Net Loss - Basic ($.40) ($0.27)
===== ======
Diluted ($.40) ($0.27)
===== ======
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CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
June 30, March 31,
2003 2003
-------- ---------
ASSETS
Cash and cash equivalents $ 318,000 $ 217,000
Investments 4,467,000 6,446,000
Accounts Receivable 5,977,000 7,295,000
Inventories 9,818,000 10,341,000
Prepaid Expenses and Other Current Assets 3,074,000 2,472,000
----------- -----------
Total Current Assets 23,654,000 26,771,000
Property, Plant & Equipment - Net 9,676,000 9,808,000
Other Assets 1,498,000 1,701,000
----------- -----------
Total $34,828,000 $38,280,000
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Short Term Debt & Current Portion
of Long-Term Debt $ 1,880,000 1,604,000
Accounts Payable 2,416,000 4,629,000
Other Current Liabilities 7,147,000 7,759,000
----------- -----------
Total Current Liabilities 11,443,000 13,992,000
Long-Term Debt 127,000 127,000
Deferred Liabilities 5,019,000 5,368,000
Shareholders' Equity 18,239,000 18,793,000
----------- -----------
Total $34,828,000 $38,280,000
=========== ===========
UNQUOTE