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February 2, 2004
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
7 State Street 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:
February 2, 2004
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR THIRD QUARTER OF FISCAL YEAR ENDING MARCH 2004
Batavia, N.Y. (February 2, 2004) -- Graham Corporation (GHM:ASE)
announced today results for the third quarter (October - December 2003) of
its current fiscal year. Sales for the quarter ended December 31, 2003
were $10,027,000 producing a net loss of $787,000, or diluted loss per
share of $.48. This compares to sales for the quarter ending December 31,
2002 of $13,703,000, which produced a net loss of $178,000 or $.11 per
diluted share.
Sales for the nine months of the fiscal year (April - December 2003)
were $30,919,000 compared to sales of $35,308,000 for the first nine months
of the previous fiscal year; net loss was $1,289,000 versus $987,000 net
loss for the first nine months of the previous fiscal year; and the diluted
loss per share was $.78 versus $.59 loss per diluted share for the same
period the previous year.
Orders for the third quarter ended December 31, 2003 were $9,965,000
compared to $8,790,000 for the quarter ended December 31, 2002.
Consolidated backlog on December 31, 2003 was $22,222,000 compared to a
backlog at March 31, 2003 of $23,497,000.
Al Cadena, Graham's President and CEO, commented, "Although Graham's
markets are showing encouraging early signs of recovery, as seen in the
quality of inquiries and in the number of capital projects scheduled to
begin, our third quarter was affected by depressed margins generally and by
slow sales in the company's standard products. We expect improved results
for the fourth quarter."
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"Orders for numerous pending projects have been delayed as project
owners wait for clearer signs of improvement in the U.S. and worldwide
economies. Consequently, the outlook for the first half of the next fiscal
year, which will start in April 2004, is for continuing slow sales for much
of the first half, followed by improvement in the second half as our
markets recover. The strength of international currencies against the U.S.
dollar is expected to contribute to that recovery, since a significant
percentage of Graham's large products are sold for export."
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 Nine Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- --------- --------- ---------
Net Sales $10,027,000 $13,703,000 $30,919,000 $35,308,000
Costs and Expenses 11,153,000 13,980,000 33,270,000 36,798,000
Other Income (522,000)
----------- ----------- ----------- -----------
Loss Before Income
Taxes (1,126,000) (277,000) (1,829,000) (1,490,000)
Benefit for
Income Taxes (339,000) (99,000) (540,000) (503,000)
----------- ----------- ----------- -----------
Net Loss $ (787,000) $ (178,000) $(1,289,000) $ (987,000)
=========== =========== =========== ===========
Per Share Data
Net Loss Basic ($.48) ($0.11) ($.78) ($0.59)
===== ====== ===== ======
Diluted ($.48) ($0.11) ($.78) ($0.59)
===== ====== ===== ======
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dec. 31, March 31,
2003 2003
-------- --------
ASSETS
Cash and cash equivalents $ 202,000 $ 217,000
Investments 3,502,000 6,446,000
Accounts Receivable 7,619,000 7,295,000
Inventories 8,314,000 10,341,000
Prepaid Expenses and Other Current Assets 3,169,000 2,472,000
----------- -----------
Total Current Assets 22,806,000 26,771,000
Property, Plant & Equipment - Net 9,352,000 9,808,000
Other Assets 1,583,000 1,701,000
----------- -----------
Total $33,741,000 $38,280,000
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Short Term Debt & Current Portion
of Long-Term Debt $ 1,488,000 $ 1,604,000
Accounts Payable 2,378,000 4,629,000
Other Current Liabilities 7,700,000 7,759,000
----------- -----------
Total Current Liabilities 11,566,000 13,992,000
Long-Term Debt 106,000 127,000
Deferred Liabilities 4,341,000 5,368,000
Shareholders' Equity 17,728,000 18,793,000
----------- -----------
Total $33,741,000 $38,280,000
=========== ===========
UNQUOTE