November 18, 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:
November 18, 2004
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR SECOND QUARTER OF FISCAL YEAR ENDING MARCH 2005
(Dollar amounts in thousands except per share data)
Batavia, N.Y. (November 18, 2004) -- Graham Corporation (GHM:ASE)
announced today results for the second quarter of its current fiscal year.
Sales for the quarter ended September 30, 2004 were $10,927, compared to
$12,554 for the same quarter the previous year. Net income, which included
a pre-tax gain of $1,592 from settlement of a lawsuit, was $381 or $.22 per
diluted share, compared to $209 or $.13 per diluted share for the same
quarter of the prior year.
Sales for the first six months of the fiscal year (April - September
2004) were $20,843, compared to sales of $21,124 for the first six months
of the previous fiscal year. Net loss for the six months was $596,
compared to $496 net loss for the first six months of the previous fiscal
year, which included a pre-tax gain of $522 for curtailment of a benefit
plan for post-retirement medical coverage. Diluted loss per share for the
first six months was $.36 versus $.30 loss per diluted share for the same
period the previous year.
Orders for the second quarter ended September 30, 2004 were $10,355
compared to $7,854 for the quarter ended September 30, 2003.
Consolidated backlog on September 30, 2004 was $21,225. Backlog at
September 30, 2003 stood at $15,707.
Al Cadena, Graham's President and Chief Executive Officer said, "The
market is showing signs of recovery. During the past six months inquiry
levels have increased by 10% as compared to the same period a year ago.
2
New project start-ups are significantly higher than last year. We are
seeing strong activity in the petroleum refining market as well as in
petrochemicals and increased activity in the geothermal market."
"Margins on product sales are increasing and it is clear that the last
half of Graham's current fiscal year will see increased shipments. We are
forecasting a profitable second half for the current fiscal year."
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)
(In thousands except per share data)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
--------- --------- --------- ---------
Net Sales $10,927 $12,554 $20,843 $21,124
Costs and Expenses 11,926 12,254 23,356 22,336
Other Income (1,592) (1,592) (522)
------- ------- ------- -------
Income (Loss) Before
Income Taxes 593 300 (921) (690)
Provision (Benefit) for
Income Taxes 212 91 (325) (194)
------- ------- ------- -------
Net Income (Loss) $ 381 $ 209 $ (596) $ (496)
======= ======= ======= =======
Per Share Data
Net Income (Loss) -
Basic $0.23 $0.13 $(0.36) $(0.30)
===== ===== ====== ======
Diluted $0.22 $0.13 $(0.36) $(0.30)
===== ===== ====== ======
4
CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
(UNAUDITED)
Sept. 30, March 31,
2004 2004
--------- ---------
ASSETS
Cash and cash equivalents $ 611 $ 467
Investments 3,098 5,296
Accounts Receivable 6,681 8,950
Inventories 8,147 6,984
Prepaid Expenses and Other Current Assets 3,004 2,710
------- -------
Total Current Assets 21,541 24,407
Property, Plant & Equipment - Net 8,808 9,227
Other Assets 2,309 2,106
------- -------
Total $32,658 $35,740
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Short-Term Debt & Current Portion of Long-Term Debt $ 2,158 $ 1,969
Accounts Payable 3,124 3,230
Other Current Liabilities 5,016 7,556
------- -------
Total Current Liabilities 10,298 12,755
Long-Term Debt 70 93
Deferred Liabilities 4,929 4,790
Shareholders' Equity 17,361 18,102
------- -------
Total $32,658 $35,740
======= =======
END QUOTE