Graham Corporation Reports Third Quarter Fiscal 2025 Results
-
Revenue increased
7.3% to$47.0 million -
Gross profit margin improved 260 basis points to
24.8% of sales, net margin increased 300 basis points to3.4% of sales, and adjusted EBITDA margin1 expanded 180 basis points to8.6% of sales -
Net income per diluted share increased
600% to$0.14 38% to$0.18 -
Orders of
$24.8 million $385 million -
Strong balance sheet with no debt,
$30.0 million $43 million - Reiterated full year guidance for Sales and adjusted EBITDA1
“Our strong performance through the first three quarters of our fiscal year reflects continually improving execution across our business. Customer demand for our diversified product portfolio is robust, driving margin expansion through improved product mix and operational efficiency. The progress we have shown to date, coupled with advancing discussions on both new programs and expansions with existing customers, reinforces our confidence in achieving our long-term growth targets,” said Daniel J. Thoren, Chief Executive Officer.
____________________
1 Adjusted EBITDA margin, Adjusted Net Income per Diluted Share and Adjusted EBITDA are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures.
2 Orders, backlog and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.
Third Quarter Fiscal 2025 Performance Review
(All comparisons are with the same prior-year period unless noted otherwise.)
($ in thousands except per share data) |
Q3 FY25 |
|
Q3 FY24 |
|
$ Change |
|
% Change |
||||||
Net sales |
$ |
47,037 |
|
$ |
43,818 |
|
$ |
3,219 |
|
||||
Gross profit |
$ |
11,686 |
|
|
$ |
9,723 |
|
|
$ |
1,963 |
|
|
|
Gross margin |
|
24.8 |
% |
|
|
22.2 |
% |
|
|
|
+260 bps |
||
Operating profit |
$ |
2,210 |
|
|
$ |
911 |
|
|
$ |
1,299 |
|
|
|
Operating margin |
|
4.7 |
% |
|
|
2.1 |
% |
|
|
|
+260 bps |
||
Net income |
$ |
1,588 |
|
|
$ |
165 |
|
|
$ |
1,423 |
|
|
|
Net income margin |
|
3.4 |
% |
|
|
0.4 |
% |
|
|
|
+300 bps |
||
Net income per diluted share |
$ |
0.14 |
|
|
$ |
0.02 |
|
|
$ |
0.12 |
|
|
|
Adjusted net income* |
$ |
1,966 |
|
$ |
1,451 |
|
$ |
515 |
|
||||
Adjusted net income per diluted share* |
$ |
0.18 |
|
|
$ |
0.13 |
|
|
$ |
0.05 |
|
|
|
Adjusted EBITDA* |
$ |
4,027 |
|
$ |
2,965 |
|
$ |
1,062 |
|
||||
Adjusted EBITDA margin* |
|
8.6 |
% |
|
|
6.8 |
% |
|
|
|
+180 bps |
||
*Graham believes that, when used in conjunction with measures prepared in accordance with
Quarterly net sales of
Gross profit for the quarter increased
Additionally, the third quarter of fiscal 2025 gross profit benefited
Selling, general and administrative expense (“SG&A”), including amortization, totaled
Included in other operating income for the third 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 December 31, 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 |
Q3 25 |
FY25 |
||||||||||||||||
Orders |
$ |
36.5 |
$ |
123.3 |
$ |
40.8 |
$ |
268.4 |
$ |
55.8 |
$ |
63.7 |
$ |
24.8 |
$ |
144.2 |
||||||||
Backlog |
$ |
313.3 |
$ |
399.2 |
$ |
390.9 |
$ |
390.9 |
$ |
396.8 |
$ |
407.0 |
$ |
384.7 |
$ |
384.7 |
||||||||
As expected, orders for the third quarter of fiscal 2025 declined to
Backlog at quarter end was
Fiscal 2025 Outlook
The Company’s outlook for 2025 was updated as follows:
(as of February 7, 2025) |
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 February 7, 2025 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, February 14, 2025. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13750971 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 |
|
Nine Months Ended |
||||||||||||||||||
December 31, |
|
December 31, |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Net sales |
$ |
47,037 |
|
$ |
43,818 |
|
|
|
$ |
150,551 |
|
|
$ |
136,463 |
|
|
||||
Cost of products sold |
|
35,351 |
|
|
34,095 |
|
|
|
|
113,698 |
|
|
|
108,572 |
|
|
||||
Gross profit |
|
11,686 |
|
|
9,723 |
|
|
|
|
36,853 |
|
|
|
27,891 |
|
|
||||
Gross margin |
|
24.8 |
% |
|
22.2 |
% |
|
|
|
24.5 |
% |
|
|
20.4 |
% |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Operating expenses and income: |
|
|
|
|
|
|
||||||||||||||
Selling, general and administrative |
|
9,260 |
|
|
8,429 |
|
|
|
|
26,821 |
|
|
|
21,563 |
|
|
||||
Selling, general and administrative – amortization |
|
436 |
|
|
383 |
|
|
|
|
1,309 |
|
|
|
930 |
|
|
||||
Other operating income |
|
(220 |
) |
|
- |
|
NA |
|
|
(946 |
) |
|
|
- |
|
NA |
||||
Operating profit |
|
2,210 |
|
|
911 |
|
|
|
|
9,669 |
|
|
|
5,398 |
|
|
||||
Operating margin |
|
4.7 |
% |
|
2.1 |
% |
|
|
|
6.4 |
% |
|
|
4.0 |
% |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Loss on extinguishment of debt |
|
- |
|
|
726 |
|
( |
|
|
- |
|
|
|
726 |
|
( |
||||
Other expense, net |
|
91 |
|
|
93 |
|
( |
|
|
273 |
|
|
|
280 |
|
( |
||||
Interest (income) expense, net |
|
(128 |
) |
|
37 |
|
NA |
|
|
(442 |
) |
|
|
277 |
|
NA |
||||
Income before provision (benefit) for income taxes |
|
2,247 |
|
|
55 |
|
NA |
|
|
9,838 |
|
|
4,115 |
|
|
|||||
Provision (benefit) for income taxes |
|
659 |
|
|
(110 |
) |
NA |
|
|
2,003 |
|
|
|
899 |
|
|
||||
Net income |
$ |
1,588 |
|
$ |
165 |
|
|
|
$ |
7,835 |
|
|
$ |
3,216 |
|
|
||||
|
|
|
|
|
|
|
||||||||||||||
Per share data: |
|
|
|
|
|
|
||||||||||||||
Basic: |
|
|
|
|
|
|
||||||||||||||
Net income |
$ |
0.15 |
|
$ |
0.02 |
|
|
|
$ |
0.72 |
|
$ |
0.30 |
|
|
|||||
Diluted: |
|
|
|
|||||||||||||||||
Net income |
$ |
0.14 |
|
$ |
0.02 |
|
|
|
$ |
0.71 |
|
$ |
0.30 |
|
|
|||||
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
||||||||||||||
Basic |
|
10,890 |
|
|
10,775 |
|
|
|
|
10,880 |
|
|
|
10,709 |
|
|
||||
Diluted |
|
11,057 |
|
|
10,920 |
|
|
|
|
11,016 |
|
|
|
10,792 |
|
|
||||
|
|
|
|
|
|
|
||||||||||||||
NA: Not Applicable |
||||||||||||||||||||
Graham Corporation Consolidated Balance Sheets – Unaudited (Amounts in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
|
|
December 31, |
|
March 31, |
||||
|
|
|
2024 |
|
|
|
2024 |
|
Assets |
|
|||||||
Current assets: |
|
|||||||
Cash and cash equivalents |
$ |
30,046 |
|
|
$ |
16,939 |
|
|
Trade accounts receivable, net of allowances ( |
|
34,951 |
|
|
|
44,400 |
|
|
Unbilled revenue |
|
37,777 |
|
|
|
28,015 |
|
|
Inventories |
|
39,026 |
|
|
|
33,410 |
|
|
Prepaid expenses and other current assets |
|
3,866 |
|
|
|
3,561 |
|
|
Income taxes receivable |
|
46 |
|
|
|
- |
|
|
Total current assets |
|
145,712 |
|
|
|
126,325 |
|
|
Property, plant and equipment, net |
|
44,133 |
|
|
|
32,080 |
|
|
Prepaid pension asset |
|
6,571 |
|
|
|
6,396 |
|
|
Operating lease assets |
|
6,433 |
|
|
|
7,306 |
|
|
Goodwill |
|
25,520 |
|
|
|
25,520 |
|
|
Customer relationships, net |
|
13,444 |
|
|
14,299 |
|
||
Technology and technical know-how, net |
|
10,499 |
|
|
11,065 |
|
||
Other intangible assets, net |
|
6,939 |
|
|
|
7,181 |
|
|
Deferred income tax asset |
|
2,928 |
|
|
|
2,983 |
|
|
Other assets |
|
2,071 |
|
|
724 |
|
||
Total assets |
$ |
264,250 |
|
$ |
233,879 |
|
||
|
|
|||||||
Liabilities and stockholders’ equity |
|
|||||||
Current liabilities: |
|
|||||||
Current portion of finance lease obligations |
$ |
21 |
|
|
$ |
20 |
|
|
Accounts payable |
|
25,390 |
|
|
|
20,788 |
|
|
Accrued compensation |
|
16,695 |
|
|
|
16,800 |
|
|
Accrued expenses and other current liabilities |
|
4,645 |
|
|
|
6,666 |
|
|
Customer deposits |
|
92,971 |
|
|
71,987 |
|
||
Operating lease liabilities |
|
1,138 |
|
|
1,237 |
|
||
Income taxes payable |
|
65 |
|
|
|
715 |
|
|
Total current liabilities |
|
140,925 |
|
|
|
118,213 |
|
|
Finance lease obligations |
|
51 |
|
|
|
65 |
|
|
Operating lease liabilities |
|
5,630 |
|
|
|
6,449 |
|
|
Accrued pension and postretirement benefit liabilities |
|
1,257 |
|
|
|
1,254 |
|
|
Other long-term liabilities |
|
1,956 |
|
|
|
2,332 |
|
|
Total liabilities |
|
149,819 |
|
|
128,313 |
|
||
|
|
|||||||
Stockholders’ equity: |
|
|||||||
Preferred stock, |
|
- |
|
|
|
- |
|
|
Common stock, |
|
1,106 |
|
|
|
1,099 |
|
|
Capital in excess of par value |
|
33,546 |
|
|
|
32,015 |
|
|
Retained earnings |
|
89,834 |
|
|
|
81,999 |
|
|
Accumulated other comprehensive loss |
|
(6,667 |
) |
|
|
(7,013 |
) |
|
Treasury stock (174 and 143 shares at December 31, and March 31, 2024, respectively) |
|
(3,388 |
) |
|
|
(2,534 |
) |
|
Total stockholders’ equity |
|
114,431 |
|
|
105,566 |
|
||
Total liabilities and stockholders’ equity |
$ |
264,250 |
|
$ |
233,879 |
|
||
Graham Corporation Consolidated Statements of Cash Flows – Unaudited (Amounts in thousands) |
||||||||
|
|
|
||||||
|
|
Nine Months Ended |
||||||
|
|
December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|||||
Net income |
|
$ |
7,835 |
|
|
$ |
3,216 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation |
|
|
2,712 |
|
|
|
2,375 |
|
Amortization of intangible assets |
|
|
1,663 |
|
|
|
1,487 |
|
Amortization of actuarial losses |
|
|
586 |
|
|
|
632 |
|
Amortization of debt issuance costs |
|
|
- |
|
|
|
131 |
|
Equity-based compensation expense |
|
|
1,204 |
|
|
|
1,002 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
726 |
|
Change in fair value of contingent consideration |
|
|
(946 |
) |
|
|
- |
|
Deferred income taxes |
|
|
(91 |
) |
|
|
935 |
|
(Increase) decrease in operating assets, net of acquisitions: |
|
|
|
|||||
Accounts receivable |
|
|
9,394 |
|
|
|
(11,335 |
) |
Unbilled revenue |
|
|
(9,879 |
) |
|
|
11,213 |
|
Inventories |
|
|
(5,628 |
) |
|
|
(4,357 |
) |
Prepaid expenses and other current and non-current assets |
|
|
(1,665 |
) |
|
|
(1,526 |
) |
Income taxes receivable |
|
|
(46 |
) |
|
|
(459 |
) |
Operating lease assets |
|
|
965 |
|
|
|
894 |
|
Prepaid pension asset |
|
|
(175 |
) |
|
|
(215 |
) |
Increase (decrease) in operating liabilities, net of acquisitions: |
|
|
|
|||||
Accounts payable |
|
|
3,914 |
|
|
|
(3,949 |
) |
Accrued compensation, accrued expenses and other current and non-current liabilities |
|
|
(1,380 |
) |
|
|
2,948 |
|
Customer deposits |
|
|
21,000 |
|
|
|
16,590 |
|
Operating lease liabilities |
|
|
(948 |
) |
|
|
(825 |
) |
Income taxes payable |
|
|
(646 |
) |
|
|
- |
|
Long-term portion of accrued compensation, accrued pension, and postretirement benefit liabilities |
|
|
4 |
|
|
|
- |
|
Net cash provided by operating activities |
|
|
27,873 |
|
|
19,483 |
|
|
Investing activities: |
|
|
|
|||||
Purchase of property, plant and equipment |
|
|
(13,800 |
) |
|
|
(5,193 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
- |
|
|
|
38 |
|
Acquisition of P3 Technologies, LLC |
|
|
(170 |
) |
|
|
(6,812 |
) |
Net cash used by investing activities |
|
|
(13,970 |
) |
|
|
(11,967 |
) |
Financing activities: |
|
|
|
|||||
Borrowings of short-term debt obligations |
|
|
- |
|
|
|
13,000 |
|
Principal repayments on debt |
|
|
- |
|
|
|
(22,522 |
) |
Payment of debt exit costs |
|
|
- |
|
|
|
(752 |
) |
Repayments on finance lease obligations |
|
|
(237 |
) |
|
|
(224 |
) |
Issuance of common stock |
|
|
334 |
|
|
|
225 |
|
Payment of debt issuance costs |
|
|
- |
|
|
|
(241 |
) |
Purchase of treasury stock |
|
|
(854 |
) |
|
|
(57 |
) |
Net cash used by financing activities |
|
|
(757 |
) |
|
|
(10,571 |
) |
Effect of exchange rate changes on cash |
|
|
(39 |
) |
|
|
(39 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
13,107 |
|
|
|
(3,094 |
) |
Cash and cash equivalents at beginning of period |
|
|
16,939 |
|
|
|
18,257 |
|
Cash and cash equivalents at end of period |
|
$ |
30,046 |
|
$ |
15,163 |
|
|
Graham Corporation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
1,588 |
|
$ |
165 |
|
|
$ |
7,835 |
|
$ |
3,216 |
|
|||
Acquisition & integration (income) expense |
|
(220 |
) |
|
|
274 |
|
|
|
(900 |
) |
|
|
274 |
|
|
Debt amendment costs |
|
- |
|
|
744 |
|
|
- |
|
|
744 |
|
||||
ERP Implementation costs |
|
157 |
|
|
|
56 |
|
|
|
704 |
|
|
|
56 |
|
|
Net interest (income) expense |
|
(128 |
) |
|
37 |
|
|
(442 |
) |
|
277 |
|
||||
Income tax expense (benefit) |
|
659 |
|
|
|
(110 |
) |
|
|
2,003 |
|
|
|
899 |
|
|
Equity-based compensation expense |
|
426 |
|
|
377 |
|
|
1,204 |
|
|
1,002 |
|
||||
Depreciation & amortization |
|
1,545 |
|
|
|
1,422 |
|
|
|
4,375 |
|
|
|
3,862 |
|
|
Adjusted EBITDA(1) |
$ |
4,027 |
|
$ |
2,965 |
|
$ |
14,779 |
|
$ |
10,330 |
|
||||
Net sales |
$ |
47,037 |
|
$ |
43,818 |
|
$ |
150,551 |
|
$ |
136,463 |
|
||||
Net income margin |
|
3.4 |
% |
|
0.4 |
% |
|
5.2 |
% |
|
2.4 |
% |
||||
Adjusted EBITDA margin |
|
8.6 |
% |
|
6.8 |
% |
|
9.8 |
% |
|
7.6 |
% |
||||
(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 |
|
Nine Months Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
1,588 |
|
$ |
165 |
|
$ |
7,835 |
|
$ |
3,216 |
|
||||
Acquisition & integration (income) expense |
|
(220 |
) |
|
|
274 |
|
|
|
(900 |
) |
|
274 |
|
||
Amortization of intangible assets |
|
554 |
|
|
596 |
|
|
1,663 |
|
|
1,487 |
|
||||
Debt amendment costs |
|
- |
|
|
|
744 |
|
|
|
- |
|
|
|
744 |
|
|
ERP Implementation costs |
|
157 |
|
|
56 |
|
|
704 |
|
|
56 |
|
||||
Normalized tax rate(1) |
|
(113 |
) |
|
|
(384 |
) |
|
|
(337 |
) |
|
|
(589 |
) |
|
Adjusted net income(2) |
$ |
1,966 |
|
$ |
1,451 |
|
$ |
8,965 |
|
$ |
5,188 |
|
||||
GAAP net income per diluted share |
$ |
0.14 |
|
$ |
0.02 |
|
$ |
0.71 |
|
$ |
0.30 |
|
||||
Adjusted net income per diluted share(2) |
$ |
0.18 |
|
|
$ |
0.13 |
|
|
$ |
0.81 |
|
|
$ |
0.48 |
|
|
Diluted weighted average common shares outstanding |
|
11,057 |
|
|
10,920 |
|
|
11,016 |
|
|
10,792 |
|
||||
(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) expense are incremental costs that are directly related to and as a result of the P3 acquisition. These costs (income) may include, among other things, professional, consulting and other fees, system integration costs, and contingent consideration fair value adjustments. ERP implementation costs primarily relate to consulting costs (training, data conversion, and project management) incurred in connection with the ERP system being implemented throughout our
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206161483/en/
Christopher J. Thome
Vice President - Finance and CFO
Phone: (585) 343-2216
Tom Cook
Investor Relations
(203) 682-8250
Tom.Cook@icrinc.com
Source: Graham Corporation
