January 28, 2005 EXHIBIT 99.1
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:
January 28, 2005
GRAHAM CORPORATION ANNOUNCES RESULTS
FOR THIRD QUARTER OF FISCAL YEAR ENDING MARCH 2005
(Dollar amounts in thousands except per share data)
Batavia, N.Y. (January 28, 2005) -- Graham Corporation (GHM:ASE)
announced today results for the third quarter of its current fiscal year.
Sales for the quarter ended December 31, 2004 were $12,937, up 27% compared
to $10,224 for the same quarter the previous year. Net loss of $21
included a pre-tax charge of $648 incurred in connection with the
retirement of the former President and CEO. This compares to a net loss of
$749 for the same quarter of the prior year. Diluted loss per share for
the quarter was $.01 compared to $.46 loss per diluted share for the same
period the previous year.
Sales for the nine months of the fiscal year (April - December 2004)
were $33,781, up 8% compared to sales of $31,348 for the first nine months
of the previous fiscal year. Net loss for the nine months ended December
31, 2004 was $615 and included a pre-tax gain of $1,592 from settlement of
a lawsuit and the pre-tax charge noted above. This compares to a $1,245
net loss for the first nine 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 nine months
was $.37 versus $.76 loss per diluted share for the same period the
previous year.
Orders for the third quarter ended December 31, 2004 were $16,195, up
63% compared to $9,965 for the quarter ended December 31, 2003.
Consolidated backlog on December 31, 2004 was $24,722 compared to a
backlog at March 31, 2004 of $16,339 and $15,759 at December 31, 2003.
<Page>2
Bill Johnson, Graham's President and CEO, commented, "I am very
encouraged by my first sixty days at Graham. Our principal markets are
recovering nicely and profit margins are climbing. We are currently
undertaking a reorganization of the Company along business unit lines,
which is approaching completion. This organizational model will sharpen
the Company's focus on its products at every step of production, from
market to aftermarket. We expect the results to be lean operations and
increased sales, assuring accountability at every step and significantly
improved profitability in FYE 2006 and beyond".
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. Graham's stock is
listed on the American Stock Exchange. The company's website address is
www.graham-mfg.com.
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.
<Page>3
GRAHAM CORPORATION
SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED)
(In thousands except per share data)
<Table>
<Caption>
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
-------- -------- -------- --------
Net Sales $12,937 $10,224 $33,781 $31,348
Costs and Expenses 12,308 11,295 35,664 33,631
Other Income (1,592) (522)
Other Expense 648 648
------- ------- ------- -------
Loss Before Income Taxes (19) (1,071) (939) (1,761)
Provision (Benefit) for
Income Taxes 2 (322) (324) (516)
------- ------- ------- -------
Net Loss $ (21) $ (749) $ (615) $(1,245)
======= ======= ======= =======
Per Share Data
Net Loss
Basic $(.01) $(.46) $(.37) $(.76)
===== ===== ===== =====
Diluted $(.01) $(.46) $(.37) $(.76)
===== ===== ===== =====
</Table>
<Page>4
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
<Table>
<Caption>
(Unaudited)
Dec. 31, March 31,
2004 2004
----------- ---------
ASSETS
Cash and cash equivalents $ 825 $ 467
Investments 1,896 5,296
Accounts Receivable 6,977 8,950
Inventories 10,571 6,984
Prepaid Expenses and Other Current Assets 2,203 2,710
-------- --------
Total Current Assets 22,472 24,407
Property, Plant & Equipment - Net 8,652 9,227
Other Assets 2,221 2,106
-------- --------
Total $ 33,345 $ 35,740
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Short Term Debt & Current Portion
of Long-Term Debt $ 1,914 $ 1,969
Accounts Payable 2,771 3,230
Other Current Liabilities 5,326 7,556
-------- --------
Total Current Liabilities 10,011 12,755
Long-Term Debt 58 93
Deferred Liabilities 5,819 4,790
Shareholders' Equity 17,457 18,102
-------- --------
Total $ 33,345 $ 35,740
======== ========
</Table>
UNQUOTE