July 29, 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:
July 29, 2004
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR FIRST QUARTER OF FISCAL YEAR ENDING MARCH 2005
(Dollar amounts in thousands except per share data)
Batavia, N.Y. (July 29, 2004) -- Graham Corporation (GHM:ASE) announced
today results for the first quarter (April - June 2004) of its current
fiscal year. Compared to the first quarter of the previous fiscal year,
sales were $9,397 versus $8,435; net loss was $1,098 versus a $658 net loss
for the same quarter of the previous year; and diluted net loss per share
was $.66 versus a net loss of $.40 per share for the same quarter of the
previous year. During the first quarter of the previous year the Company
recorded a pre-tax gain of $522 resulting from curtailment of a benefit
plan for post-retirement medical coverage.
Orders for the first quarter were $15,157, a $3,924, 34.9%, increase
over the prior year of $11,233. Consolidated backlog on June 30, 2004 was
at $27,844, compared to $21,988 at March 31, 2004 and $26,430 at June 30,
2003.
Al Cadena, President and Chief Executive Officer of Graham Corporation
commented, "Last year's anemic bookings clearly impacted the first quarter
results. We expect the consequences of the low booking period to be felt
as well in the second quarter. However, new orders have increased
appreciably, reflecting a substantial upturn in global projects."
"Although recovery in domestic U.S. markets is slow, new projects
overseas have picked up substantially, especially in the petrochemical and
refining markets. The result for Graham has been significantly increased
bookings for condensers and vacuum systems bound for the Far East and
Mexico."
2
"The company has continued to optimize its cost structure effectively.
On the basis of these steps and with the growing strength of bookings
experienced this year, we expect a profitable third quarter and
considerable continued improvement in results for the fourth."
Graham Corporation designs and builds vacuum and heat transfer
equipment for process industries throughout the world. The Company is a
worldwide leader in vacuum technology. The principal markets for our
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. Ejectors, liquid ring and dry
vacuum pumps, condensers, heat exchangers and other products we sell, sold
either as components or as complete systems, are used by our 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 (UNAUDITED)
(In thousands except per share data)
Three Months Ended
June 30, June 30,
2004 2003
-------- --------
Net Sales $ 9,397 $ 8,435
Costs and Expenses 11,054 9,884
Other Income (522)
------- -------
Loss Before Income Taxes (1,657) (927)
Benefit for Income Taxes (559) (269)
------- -------
Net Loss $(1,098) $ (658)
======= =======
Per Share Data
Net Loss - Basic
($.66) ($.40)
===== =====
Diluted ($.66) ($.40)
===== =====
4
CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
(UNAUDITED)
June 30, March 31,
2004 2004
-------- ---------
ASSETS
Cash and cash equivalents $ 1,110 $ 467
Investments 4,495 5,296
Accounts Receivable 6,244 8,950
Inventories 6,792 7,015
Prepaid Expenses and Other Current Assets 3,016 2,727
------- -------
Total Current Assets 21,657 24,455
Property, Plant & Equipment - Net 9,034 9,227
Other Assets 2,511 2,106
------- -------
Total $33,202 $35,788
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Short Term Debt & Current Portion of Long-Term Debt $ 1,622 $ 1,969
Accounts Payable 2,545 3,230
Other Current Liabilities 6,928 7,556
------- -------
Total Current Liabilities 11,095 12,755
Long-Term Debt 82 93
Deferred Liabilities 5,082 4,790
Shareholders' Equity 16,943 18,150
------- -------
Total $33,202 $35,788
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UNQUOTE