June 10, 2004
Businesswire
1185 Avenue of the Americas, 3rd Floor
New York, NY 10036
FROM: William A. Smith, Jr. ACCOUNT: Graham Corporation
Smith Law Office PC 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:
June 10, 2004
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR FISCAL YEAR AND FOURTH QUARTER ENDED MARCH 31, 2004
(Dollar amounts in thousands except per share data)
Batavia, N.Y. (June 10, 2004) -- Graham Corporation (GHM:ASE) today
reported results for the fiscal year and fourth quarter ended March 31,
2004.
Sales for the fiscal year ended March 31, 2004 were $43,321. Net loss
for the year was $1,070 or diluted loss per share of $.65. Sales for the
fourth quarter of the fiscal year were $12,402. Net income for the fourth
quarter was $219 or diluted earnings per share of $.13.
By comparison, sales for the previous fiscal year were $49,378
producing a net income of $133, or diluted earnings per share of $.08.
Sales for the fourth quarter of the previous fiscal year were $14,070
producing net income of $1,120 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.
Orders for the fiscal year ended March 31, 2004 were $41,113 compared
to $40,596 for the previous full fiscal year. New orders for the fourth
quarter of the fiscal year ended March 31, 2004 were $12,061, the highest
level of quarterly bookings for the year. This compares to $12,372 for
the fourth quarter of the previous fiscal year and to $9,965 for the third
quarter of the fiscal year ended March 31, 2004.
2
Consolidated backlog on March 31, 2004 was $21,988 compared to $23,497
on March 31, 2003.
Al Cadena, President and Chief Executive Officer of Graham, commented,
"A drop in the condenser business reflecting a general slow-down in the
power-generating industry contributed significantly to the overall loss for
the year. This was accompanied by two quarters of lower than usual
bookings for Graham's standard products. Bookings for the second and third
quarters of the fiscal year in general were low, a consequence of the most
severe recession in the history of Graham's markets."
"The fourth quarter showed substantial improvement in bookings, which
has continued. Inquiries are up and we expect continued improvement in
order levels as the current fiscal year progresses. Following the
Company's restructuring a year ago, Graham retains the workforce it needs
to take advantage of improved market conditions and the Company is well
situated with respect to the recovery now in sight."
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.
3
GRAHAM CORPORATION
SUMMARY OF CONSOLIDATED SALES AND EARNINGS (In thousands except per share data)
Three Months Ended Twelve Months Ended
(Unaudited) (Audited)
March 31, March 31, March 31, March 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Net Sales $12,402 $14,070 $43,321 $49,378
Costs and Expenses 12,420 13,531 45,690 50,329
Other Income (1,143) (522) (1,143)
------- ------- ------- -------
Income (Loss) Before
Income Taxes (18) 1,682 (1,847) 192
Provision (Benefit) for
Income Taxes (237) 562 (777) 59
------- ------- ------- -------
Net Income $ 219 $ 1,120 $(1,070) $ 133
======= ======= ======= =======
Per Share Data
Net Income (Loss) - Basic $.13 $0.67 $(.65) $0.08
==== ===== ===== =====
Diluted $.13 $0.67 $(.65) $0.08
==== ===== ===== =====
4
CONDENSED CONSOLIDATED BALANCE SHEET (AUDITED) (In thousands)
March 31, March 31,
2004 2003
--------- ---------
ASSETS
Cash and cash equivalents $ 467 $ 217
Investments 5,296 6,446
Accounts Receivable 8,950 7,295
Inventories 7,015 10,341
Prepaid Expenses and Other Current Assets 2,727 2,472
------- -------
Total Current Assets 24,455 26,771
Property, Plant & Equipment - Net 9,227 9,808
Other Assets 2,106 1,701
------- -------
Total $35,788 $38,280
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Short-Term Debt & Current Portion of Long-Term Debt $ 1,969 $ 1,604
Accounts Payable 3,230 4,629
Other Current Liabilities 7,556 7,759
------- -------
Total Current Liabilities 12,755 13,992
Long-Term Debt 93 127
Deferred Liabilities 4,790 5,368
Shareholders' Equity 18,150 18,793
------- -------
Total $35,788 $38,280
======= =======
END QUOTE