Graham Corporation Reports Record Revenue of $53.6 Million and Strong Margin Expansion in Second Quarter Fiscal 2025
Graham (NYSE: GHM) reported record Q2 FY2025 revenue of $53.6 million, a 19% increase year-over-year. The company achieved significant margin expansion with gross margin improving 790 basis points to 23.9%, and net margin increasing to 6.1%. Net income per diluted share reached $0.30, while adjusted EBITDA margin expanded to 10.5%. Strong orders of $63.7 million led to a book-to-bill ratio of 1.2x and a record backlog of $407 million. The company maintains a strong balance sheet with no debt and $32.3 million in cash. Based on improved profitability, Graham raised its full-year guidance for gross margin and adjusted EBITDA.
Graham (NYSE: GHM) ha riportato un fatturato record per il secondo trimestre dell'anno fiscale 2025 di 53,6 milioni di dollari, con un incremento del 19% rispetto all'anno precedente. L'azienda ha ottenuto un'importante espansione del margine, con il margine lordo che è migliorato di 790 punti base, raggiungendo il 23,9%, e il margine netto che è aumentato al 6,1%. L'utile netto per azione diluita ha raggiunto 0,30 dollari, mentre il margine EBITDA rettificato si è espanso al 10,5%. Forti ordini per 63,7 milioni di dollari hanno portato a un rapporto book-to-bill di 1,2x e un portafoglio ordini record di 407 milioni di dollari. L'azienda mantiene un forte bilancio senza debiti e 32,3 milioni di dollari in contante. In base al miglioramento della redditività, Graham ha alzato le proprie previsioni per l'intero anno riguardo al margine lordo e all'EBITDA rettificato.
Graham (NYSE: GHM) reportó ingresos récord en el segundo trimestre del año fiscal 2025 de 53,6 millones de dólares, un aumento del 19% en comparación con el año anterior. La compañía logró una expansión significativa del margen, con el margen bruto mejorando en 790 puntos básicos hasta el 23,9%, y el margen neto aumentando al 6,1%. El ingreso neto por acción diluida alcanzó 0,30 dólares, mientras que el margen EBITDA ajustado se amplió al 10,5%. Fuertes órdenes de 63,7 millones de dólares llevaron a una relación de book-to-bill de 1,2x y un backlog récord de 407 millones de dólares. La empresa mantiene un sólido balance sin deudas y 32,3 millones de dólares en efectivo. Con base en la mejora de la rentabilidad, Graham elevó su guía para todo el año respecto al margen bruto y al EBITDA ajustado.
그래험 (NYSE: GHM)이 2025 회계연도 2분기 기록적인 매출 5,360만 달러를 보고했으며, 이는 전년 대비 19% 증가한 수치입니다. 이 회사는 총 마진이 790bp 개선되어 23.9%에 달하고, 순 마진이 6.1%로 증가하는 등 상당한 마진 확대를 달성했습니다. 희석 주당 순이익은 0.30달러에 도달했고, 조정 EBITDA 마진은 10.5%로 확장되었습니다. 6,370만 달러에 달하는 강력한 주문으로 인해 book-to-bill 비율은 1.2x, 기록적인 백로그는 4억 700만 달러에 이릅니다. 이 회사는 부채가 없고 현금으로 3,230만 달러를 보유한 건전한 재무 상태를 유지하고 있습니다. 개선된 수익성을 바탕으로 그래험은 총 마진과 조정 EBITDA에 대한 연간 전망을 상향 조정했습니다.
Graham (NYSE: GHM) a annoncé un chiffre d'affaires record de 53,6 millions de dollars pour le deuxième trimestre de l'exercice fiscal 2025, soit une hausse de 19 % par rapport à l'année précédente. L'entreprise a réalisé une expansion significative de la marge, avec une amélioration de la marge brute de 790 points de base à 23,9 %, et une augmentation de la marge nette à 6,1 %. Le bénéfice net par action diluée a atteint 0,30 dollar, tandis que la marge EBITDA ajustée s'est étendue à 10,5 %. Des commandes solides de 63,7 millions de dollars ont conduit à un ratio book-to-bill de 1,2x et un carnet de commandes record de 407 millions de dollars. L'entreprise maintient un bilan solide sans dettes et 32,3 millions de dollars en liquidités. Sur la base de l'amélioration de la rentabilité, Graham a rehaussé ses prévisions pour l'année entière concernant la marge brute et l'EBITDA ajusté.
Graham (NYSE: GHM) berichtete über einen Rekordumsatz von 53,6 Millionen Dollar im zweiten Quartal des Geschäftsjahres 2025, was einem Anstieg von 19% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine signifikante Margenausweitung, mit einem Anstieg der Bruttomarge um 790 Basispunkte auf 23,9% und einer Nettomarge von 6,1%. Der Nettogewinn pro verwässerter Aktie erreichte 0,30 Dollar, während sich die angepasste EBITDA-Marge auf 10,5% erweiterte. Starke Bestellungen in Höhe von 63,7 Millionen Dollar führten zu einem Verhältnis von Buchungen zu Rechnungen von 1,2x und einem Rekordauftragsbestand von 407 Millionen Dollar. Das Unternehmen weist eine solide Bilanz ohne Schulden und 32,3 Millionen Dollar in bar auf. Aufgrund der verbesserten Rentabilität hob Graham die Prognose für das gesamte Jahr für Bruttomarge und angepasstes EBITDA an.
- Record quarterly revenue of $53.6 million, up 19% YoY
- Gross margin expanded 790 basis points to 23.9%
- Net income increased 698% to $3.281 million
- Strong order intake of $63.7 million with 1.2x book-to-bill ratio
- Record backlog of $407 million
- Debt-free balance sheet with $32.3 million cash
- Raised full-year guidance for gross margin and adjusted EBITDA
- SG&A expenses increased by $2.8 million
- Aftermarket sales declined $1.5 million from prior year levels
Insights
Graham delivered an exceptional quarter with
The robust order intake of
The diversification strategy into defense and space markets is proving successful, with defense sales growing
-
Revenue increased
19% to , driven by strength across its markets$53.6 million -
Margin expansion fueled by sales growth and execution: Gross margin improved 790 basis points to
23.9% of sales, net margin increased 520 basis points to6.1% of sales, and adjusted EBITDA1 margin expanded 550 basis points to10.5% of sales -
Net income per diluted share was
in the second quarter; adjusted net income per diluted share¹ was$0.30 $0.31 -
Strong orders of
, driven by demand from defense, space, and refining, resulted in a book-to-bill ratio of 1.2x and a record backlog of$63.7 million 1$407 million -
Strong balance sheet with no debt,
in cash, and access to$32.3 million under its revolving credit facility at quarter end to support growth initiatives$43 million - Raised full year guidance for gross margin and adjusted EBITDA¹ to reflect improved profitability
“Our team’s efforts to diversify and strengthen the business over the past few years are clearly yielding results, as shown by our record second-quarter performance,” commented Daniel J. Thoren, President and Chief Executive Officer. “Strong sales growth in our markets, along with exceptional execution throughout the business, have driven meaningful margin expansion. Our strategic emphasis on higher-margin opportunities and operational efficiencies has been a key driver of this success.”
Mr. Thoren added, “We are also focused on recruiting and retaining top talent, and have initiatives to enhance our supply chain, which helps us to improve performance and manage our risk. These initiatives, along with our strengthened balance sheet, robust orders2, and growing backlog2, we believe positions us well to sustain growth and profitability for the next several years. Importantly, we have raised our full-year adjusted EBITDA guidance, keeping us firmly on track to achieve our FY2027 target of low to mid-teen adjusted EBITDA margins.”
Second Quarter Fiscal 2025 Performance Review
(All comparisons are with the same prior-year period unless noted otherwise.)
($ in thousands except per share data) | Q2 FY25 | Q2 FY24 | $ Change | % Change | ||||||||
Net sales | $ |
53,563 |
|
$ |
45,076 |
|
$ |
8,487 |
|
|||
Gross profit | $ |
12,799 |
|
$ |
7,191 |
|
$ |
5,608 |
|
|||
Gross margin |
|
23.9 |
% |
|
16.0 |
% |
+790 bps |
|||||
Operating profit | $ |
4,235 |
|
$ |
803 |
|
$ |
3,432 |
|
|||
Operating margin |
|
7.9 |
% |
|
1.8 |
% |
+610 bps |
|||||
Net income | $ |
3,281 |
|
$ |
411 |
|
$ |
2,870 |
|
|||
Net income margin |
|
6.1 |
% |
|
0.9 |
% |
+520 bps |
|||||
Net income per diluted share | $ |
0.30 |
|
$ |
0.04 |
|
$ |
0.26 |
|
|||
Adjusted net income* | $ |
3,414 |
|
$ |
754 |
|
$ |
2,660 |
|
|||
Adjusted net income per diluted share* | $ |
0.31 |
|
$ |
0.07 |
|
$ |
0.24 |
|
|||
Adjusted EBITDA* | $ |
5,615 |
|
$ |
2,242 |
|
$ |
3,373 |
|
|||
Adjusted EBITDA margin* |
|
10.5 |
% |
|
5.0 |
% |
+550 bps |
*Graham believes that, when used in conjunction with measures prepared in accordance with
Record quarterly net sales of
Gross margin expanded 790 basis points to
Selling, general and administrative expense (“SG&A”), including amortization, totaled
Included in other operating income for the second quarter of fiscal 2025 was a
Cash Management and Balance Sheet
Cash provided by operating activities totaled
Capital expenditures of
The Company had no debt outstanding at September 30, 2024 with
Orders, Backlog, and Book-to-Bill Ratio
See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.
(in millions) |
Q2 24 | Q3 24 | Q4 24 | FY24 | Q1 25 | Q2 25 | YTD FY25 | |||||||||||||
Orders | $ |
36.5 |
$ |
123.3 |
$ |
40.8 |
$ |
268.4 |
$ |
55.8 |
$ |
63.7 |
$ |
119.4 |
||||||
Backlog | $ |
313.3 |
$ |
399.2 |
$ |
390.9 |
$ |
390.9 |
$ |
396.8 |
$ |
407.0 |
$ |
407.0 |
Orders for the three-month period ended September 30, 2024, were
Backlog at quarter end reached a record
Fiscal 2025 Outlook
The Company’s outlook for 2025 was updated as follows:
(as of November 8, 2024) |
Updated Fiscal 2025 Guidance |
Previous Guidance |
Net Sales |
|
|
Gross Margin |
|
|
SG&A expense (including amortization)(1) |
|
|
Adjusted EBITDA(2) |
|
|
Effective Tax Rate |
|
|
Capital Expenditures |
|
|
(1) |
Includes approximately |
|
(2) |
Excludes net interest expense, income taxes, depreciation, and amortization from net income, as well as approximately |
Webcast and Conference Call
GHM’s management will host a conference call and live webcast on November 8, 2024 at 11:00 a.m. Eastern Time (“ET”) to review its financial results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website.
A question-and-answer session will follow the formal presentation. GHM’s conference call can be accessed by calling (201) 689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website.
A telephonic replay will be available from 3:00 p.m. ET today through Friday, November 15, 2024. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13749103 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.
About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “future,” “outlook,” “anticipates,” “believes,” “could,” “guidance,” ”may”, “will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
Non-GAAP Financial Measures
Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in
Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year's net income and net income per diluted share to the historical periods' net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company.
Forward-Looking Non-GAAP Measures
Forward-looking adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2025 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material.
Key Performance Indicators
In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Management believes tracking orders and backlog are useful as they often times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.
The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales.
Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company's methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a non-GAAP measure, as that term is defined by the
FINANCIAL TABLES FOLLOW.
Graham Corporation Consolidated Statements of Operations - Unaudited (Amounts in thousands, except per share data) |
|||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
|
2024 |
|
|
2023 |
|
% Change |
|
2024 |
|
|
2023 |
|
% Change | ||||
Net sales | $ |
53,563 |
|
$ |
45,076 |
|
|
$ |
103,514 |
|
$ |
92,645 |
|
|
|||
Cost of products sold |
|
40,764 |
|
|
37,885 |
|
|
|
78,347 |
|
|
74,477 |
|
|
|||
Gross profit |
|
12,799 |
|
|
7,191 |
|
|
|
25,167 |
|
|
18,168 |
|
|
|||
Gross margin |
|
23.9 |
% |
|
16.0 |
% |
|
|
24.3 |
% |
|
19.6 |
% |
|
|||
|
|
||||||||||||||||
Operating expenses and income: |
|
|
|||||||||||||||
Selling, general and administrative |
|
8,723 |
|
|
6,115 |
|
|
|
17,561 |
|
|
13,134 |
|
|
|||
Selling, general and administrative – amortization |
|
437 |
|
|
273 |
|
|
|
873 |
|
|
547 |
|
|
|||
Other operating income |
|
(596 |
) |
|
- |
|
NA |
|
(726 |
) |
|
- |
|
NA |
|||
Operating profit |
|
4,235 |
|
|
803 |
|
|
|
7,459 |
|
|
4,487 |
|
|
|||
Operating margin |
|
7.9 |
% |
|
1.8 |
% |
|
|
7.2 |
% |
|
4.8 |
% |
|
|||
|
|
||||||||||||||||
Other expense, net |
|
91 |
|
|
94 |
|
( |
|
182 |
|
|
187 |
|
( |
|||
Interest (income) expense, net |
|
(153 |
) |
|
55 |
|
NA |
|
(314 |
) |
|
240 |
|
NA |
|||
Income before provision for income taxes |
|
4,297 |
|
|
654 |
|
|
|
7,591 |
|
|
4,060 |
|
|
|||
Provision for income taxes |
|
1,016 |
|
|
243 |
|
|
|
1,344 |
|
|
1,009 |
|
|
|||
Net income | $ |
3,281 |
|
$ |
411 |
|
|
$ |
6,247 |
|
$ |
3,051 |
|
|
|||
|
|
||||||||||||||||
Per share data: |
|
|
|||||||||||||||
Basic: |
|
|
|||||||||||||||
Net income | $ |
0.30 |
|
$ |
0.04 |
|
|
$ |
0.57 |
|
$ |
0.29 |
|
|
|||
Diluted: |
|
|
|||||||||||||||
Net income | $ |
0.30 |
|
$ |
0.04 |
|
|
$ |
0.57 |
|
$ |
0.28 |
|
|
|||
Weighted average common shares outstanding: | |||||||||||||||||
Basic |
|
10,887 |
|
|
10,699 |
|
|
10,875 |
|
|
10,675 |
|
|||||
Diluted |
|
11,024 |
|
|
10,810 |
|
|
10,995 |
|
|
10,761 |
|
|||||
NA: Not Applicable |
Graham Corporation Consolidated Balance Sheets – Unaudited (Amounts in thousands, except per share data) |
|||||||
September 30, | March 31, | ||||||
|
2024 |
|
|
2024 |
|
||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
32,318 |
|
$ |
16,939 |
|
|
Trade accounts receivable, net of allowances ( |
|
29,083 |
|
|
44,400 |
|
|
Unbilled revenue |
|
40,730 |
|
|
28,015 |
|
|
Inventories |
|
31,536 |
|
|
33,410 |
|
|
Prepaid expenses and other current assets |
|
4,414 |
|
|
3,561 |
|
|
Income taxes receivable |
|
124 |
|
|
- |
|
|
Total current assets |
|
138,205 |
|
|
126,325 |
|
|
Property, plant and equipment, net |
|
36,602 |
|
|
32,080 |
|
|
Prepaid pension asset |
|
6,513 |
|
|
6,396 |
|
|
Operating lease assets |
|
6,757 |
|
|
7,306 |
|
|
Goodwill |
|
25,520 |
|
|
25,520 |
|
|
Customer relationships, net |
|
13,729 |
|
|
14,299 |
|
|
Technology and technical know-how, net |
|
10,688 |
|
|
11,065 |
|
|
Other intangible assets, net |
|
7,019 |
|
|
7,181 |
|
|
Deferred income tax asset |
|
2,883 |
|
|
2,983 |
|
|
Other assets |
|
1,614 |
|
|
724 |
|
|
Total assets | $ |
249,530 |
|
$ |
233,879 |
|
|
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Current portion of finance lease obligations | $ |
20 |
|
$ |
20 |
|
|
Accounts payable |
|
21,887 |
|
|
20,788 |
|
|
Accrued compensation |
|
13,097 |
|
|
16,800 |
|
|
Accrued expenses and other current liabilities |
|
5,102 |
|
|
6,666 |
|
|
Customer deposits |
|
86,483 |
|
|
71,987 |
|
|
Operating lease liabilities |
|
1,142 |
|
|
1,237 |
|
|
Income taxes payable |
|
77 |
|
|
715 |
|
|
Total current liabilities |
|
127,808 |
|
|
118,213 |
|
|
Finance lease obligations |
|
57 |
|
|
65 |
|
|
Operating lease liabilities |
|
5,922 |
|
|
6,449 |
|
|
Accrued pension and postretirement benefit liabilities |
|
1,258 |
|
|
1,254 |
|
|
Other long-term liabilities |
|
2,011 |
|
|
2,332 |
|
|
Total liabilities |
|
137,056 |
|
|
128,313 |
|
|
Stockholders’ equity: | |||||||
Preferred stock, |
|
- |
|
|
- |
|
|
Common stock, |
|
1,106 |
|
|
1,099 |
|
|
Capital in excess of par value |
|
33,120 |
|
|
32,015 |
|
|
Retained earnings |
|
88,246 |
|
|
81,999 |
|
|
Accumulated other comprehensive loss |
|
(6,610 |
) |
|
(7,013 |
) |
|
Treasury stock (174 and 143 shares at September 30, and March 31, 2024, respectively) |
|
(3,388 |
) |
|
(2,534 |
) |
|
Total stockholders’ equity |
|
112,474 |
|
|
105,566 |
|
|
Total liabilities and stockholders’ equity | $ |
249,530 |
|
$ |
233,879 |
|
Graham Corporation Consolidated Statements of Cash Flows – Unaudited (Amounts in thousands) |
||||||||
Six Months Ended | ||||||||
September 30, | ||||||||
|
2024 |
|
|
2023 |
|
|||
Operating activities: | ||||||||
Net income | $ |
6,247 |
|
$ |
3,051 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation |
|
1,721 |
|
|
1,549 |
|
||
Amortization |
|
1,109 |
|
|
891 |
|
||
Amortization of unrecognized prior service cost and actuarial losses |
|
391 |
|
|
421 |
|
||
Amortization of debt issuance costs |
|
- |
|
|
119 |
|
||
Equity-based compensation expense |
|
778 |
|
|
625 |
|
||
Change in fair value of contingent consideration |
|
(726 |
) |
|
- |
|
||
Deferred income taxes |
|
2 |
|
|
1,162 |
|
||
(Increase) decrease in operating assets, net of acquisitions: | ||||||||
Accounts receivable |
|
15,387 |
|
|
(4,947 |
) |
||
Unbilled revenue |
|
(12,746 |
) |
|
4,620 |
|
||
Inventories |
|
1,886 |
|
|
(734 |
) |
||
Prepaid expenses and other current and non-current assets |
|
(1,738 |
) |
|
(1,343 |
) |
||
Income taxes receivable |
|
(124 |
) |
|
(489 |
) |
||
Operating lease assets |
|
643 |
|
|
589 |
|
||
Prepaid pension asset |
|
(117 |
) |
|
(144 |
) |
||
Increase (decrease) in operating liabilities, net of acquisitions: | ||||||||
Accounts payable |
|
1,505 |
|
|
(6,451 |
) |
||
Accrued compensation, accrued expenses and other current and non-current liabilities |
|
(4,801 |
) |
|
5 |
|
||
Customer deposits |
|
14,485 |
|
|
13,503 |
|
||
Operating lease liabilities |
|
(623 |
) |
|
(529 |
) |
||
Income taxes payable |
|
(634 |
) |
|
- |
|
||
Long-term portion of accrued compensation, accrued pension liability and accrued postretirement benefits |
|
4 |
|
|
- |
|
||
Net cash provided by operating activities |
|
22,649 |
|
|
11,898 |
|
||
Investing activities: | ||||||||
Purchase of property, plant and equipment |
|
(6,464 |
) |
|
(3,312 |
) |
||
Proceeds from disposal of property, plant and equipment |
|
- |
|
|
38 |
|
||
Acquisition of P3 Technologies, LLC |
|
(170 |
) |
|
- |
|
||
Net cash used by investing activities |
|
(6,634 |
) |
|
(3,274 |
) |
||
Financing activities: | ||||||||
Principal repayments on debt |
|
- |
|
|
(1,020 |
) |
||
Principal repayments on finance lease obligations |
|
(157 |
) |
|
(147 |
) |
||
Issuance of common stock |
|
334 |
|
|
225 |
|
||
Purchase of treasury stock |
|
(854 |
) |
|
(57 |
) |
||
Net cash used by financing activities |
|
(677 |
) |
|
(999 |
) |
||
Effect of exchange rate changes on cash |
|
41 |
|
|
(82 |
) |
||
Net increase in cash and cash equivalents |
|
15,379 |
|
|
7,543 |
|
||
Cash and cash equivalents at beginning of period |
|
16,939 |
|
|
18,257 |
|
||
Cash and cash equivalents at end of period | $ |
32,318 |
|
$ |
25,800 |
|
Graham Corporation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) |
|||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income | $ |
3,281 |
|
$ |
411 |
|
$ |
6,247 |
|
$ |
3,051 |
|
|||
Acquisition & integration income |
|
(587 |
) |
|
- |
|
|
(680 |
) |
|
- |
|
|||
ERP Implementation costs |
|
205 |
|
|
- |
|
|
547 |
|
|
- |
|
|||
Net interest (income) expense |
|
(153 |
) |
|
55 |
|
|
(314 |
) |
|
240 |
|
|||
Income tax expense |
|
1,016 |
|
|
243 |
|
|
1,344 |
|
|
1,009 |
|
|||
Equity-based compensation expense |
|
434 |
|
|
332 |
|
|
778 |
|
|
625 |
|
|||
Depreciation & amortization |
|
1,419 |
|
|
1,201 |
|
|
2,830 |
|
|
2,440 |
|
|||
Adjusted EBITDA(1) | $ |
5,615 |
|
$ |
2,242 |
|
$ |
10,752 |
|
$ |
7,365 |
|
|||
Net sales | $ |
53,563 |
|
$ |
45,076 |
|
$ |
103,514 |
|
$ |
92,645 |
|
|||
Net income margin |
|
6.1 |
% |
|
0.9 |
% |
|
6.0 |
% |
|
3.3 |
% |
|||
Adjusted EBITDA margin |
|
10.5 |
% |
|
5.0 |
% |
|
10.4 |
% |
|
7.9 |
% |
(1) Beginning in the fourth quarter of fiscal 2024, Adjusted EBITDA no longer excludes the Barber- |
Graham Corporation Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation (Unaudited, $ in thousands, except per share amounts) |
|||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income | $ |
3,281 |
|
$ |
411 |
|
$ |
6,247 |
|
$ |
3,051 |
|
|||
Acquisition & integration income |
|
(587 |
) |
|
- |
|
|
(680 |
) |
|
- |
|
|||
Amortization of intangible assets |
|
555 |
|
|
445 |
|
|
1,109 |
|
|
891 |
|
|||
ERP Implementation costs |
|
205 |
|
|
- |
|
|
547 |
|
|
- |
|
|||
Normalized tax rate(1) |
|
(40 |
) |
|
(102 |
) |
|
(224 |
) |
|
(205 |
) |
|||
Adjusted net income(2) | $ |
3,414 |
|
$ |
754 |
|
$ |
6,999 |
|
$ |
3,737 |
|
|||
GAAP net income per diluted share | $ |
0.30 |
|
$ |
0.04 |
|
$ |
0.57 |
|
$ |
0.28 |
|
|||
Adjusted net income per diluted share(2) | $ |
0.31 |
|
$ |
0.07 |
|
$ |
0.64 |
|
$ |
0.35 |
|
|||
Diluted weighted average common shares outstanding |
|
11,024 |
|
|
10,810 |
|
|
10,995 |
|
|
10,761 |
|
(1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate. | |||||||
(2) Beginning in the fourth quarter of fiscal 2024, Adjusted Net Income no longer excludes the Barber- |
Acquisition and Integration (Income) Costs are incremental costs that are directly related to the P3 acquisition. These costs (income) may include, among other things, professional, consulting and other fees, system integration costs, and fair value adjustments relating to contingent consideration. ERP Implementation Costs relate to consulting costs incurred in connection with the new ERP system being implemented throughout our
___________________________
1Adjusted EBITDA margin, Adjusted Net Income per Diluted Share and Adjusted EBITDA are non-GAAP measures. See attached tables and other information on pages 10 and 11 for important disclosures regarding Graham’s use of these non-GAAP measures.
2Orders, backlog and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.
3Supplemental performance bonus is related to the 2021 acquisition of Barber Nichols, LLC. The Barber-
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108640700/en/
For more information:
Christopher J. Thome
Vice President - Finance and CFO
Phone: (585) 343-2216
Deborah K. Pawlowski / Craig P. Mychajluk
Alliance Advisors IR
716-843-3908 / 716-843-3832
dpawlowski@allianceadvisors.com
cmychajluk@allianceadvisors.com
Source: Graham Corporation
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