October 27, 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
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:
October 27, 2003
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR SECOND QUARTER OF FISCAL YEAR 2003 - 2004
Batavia, N.Y. (October 27, 2003) -- Graham Corporation (GHM:ASE)
announced today results for the second quarter of its current fiscal year.
Sales for the quarter ended September 30, 2003 were $12,457,000 producing
net income of $156,000 or $.09 per diluted share. This compares to sales
for the quarter ended September 30, 2002 of $11,437,000, which produced a
net loss of $353,000 or $.21 per diluted share.
Sales for the first six months of the fiscal year (April - September
2003) were $20,892,000, compared to sales of $21,605,000 for the first six
months of the previous fiscal year; net loss was $502,000 versus $809,000
net loss for the first six months of the previous fiscal year; and the
diluted loss per share was $.31 versus $.49 loss per diluted share for the
same period the previous year.
Orders for the second quarter ended September 30, 2003 were $7,854,000
compared to $11,294,000 for the quarter ended September 30, 2002. Orders
for the quarter ended June 30, 2003 were $11,233,000. Orders for the
current quarter were down due to temporary postponements in placing orders.
Consolidated backlog on September 30, 2003 was $23,545,000. Backlog at
June 30, 2003 stood at $28,002,000 and on September 30, 2002 at
$31,793,000.
2
Al Cadena, Graham's President and Chief Executive Officer said, "In the
second quarter the Company has begun to see signs of recovery in its
principal markets, especially overseas. New orders for the quarter were
less than expected due to customer rescheduling of certain large projects;
the Company expects to enter orders for these projects in the current
quarter. While the situation remains highly competitive, we believe that
the downturn in demand for the Company's standard products has reached
bottom and is now beginning to recover. The Company remains in a strong
financial position, with an excellent balance sheet."
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 every day 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.
3
GRAHAM CORPORATION
SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net Sales $12,457,000 $11,437,000 $20,892,000 $21,605,000
Costs and Expenses 12,233,000 11,959,000 22,117,000 22,818,000
Other Income (522,000)
----------- ----------- ----------- -----------
Income (Loss) Before
Income Taxes 224,000 (522,000) (703,000) (1,213,000)
Provision (Benefit) for
Income Taxes 68,000 (169,000) (201,000) (404,000)
----------- ----------- ----------- -----------
Net Income (Loss) $ 156,000 $ (353,000) $ (502,000) $ (809,000)
=========== =========== =========== ===========
Per Share Data
Net Income (Loss)-Basic $0.09 ($0.21) ($0.31) ($0.49)
===== ====== ====== ======
Diluted $0.09 ($0.21) ($0.31) ($0.49)
===== ====== ====== ======
<
PAGE>4
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
Sept. 30, March 31,
2003 2003
--------- ---------
ASSETS
Cash and cash equivalents $ 280,000 $ 217,000
Investments 5,428,000 6,446,000
Accounts Receivable 6,341,000 7,295,000
Inventories 9,330,000 10,341,000
Prepaid Expenses and Other Current Assets 2,951,000 2,472,000
----------- -----------
Total Current Assets 24,330,000 26,771,000
Property, Plant & Equipment - Net 9,481,000 9,808,000
Other Assets
1,570,000 1,701,000
----------- -----------
Total $35,381,000 $38,280,000
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Short-Term Debt & Current Portion
of Long-Term Debt $ 1,626,000 $ 1,604,000
Accounts Payable 2,782,000 4,629,000
Other Current Liabilities 8,021,000 7,759,000
----------- -----------
Total Current Liabilities 12,429,000 13,992,000
Long-Term Debt 116,000 127,000
Deferred Liabilities 4,466,000 5,368,000
Shareholders' Equity 18,370,000 18,793,000
----------- -----------
Total $35,381,000 $38,280,000
=========== ===========
END QUOTE