-2- February 2, 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: February 2, 2004 GRAHAM CORPORATION ANNOUNCES RESULTS FOR THIRD QUARTER OF FISCAL YEAR ENDING MARCH 2004 Batavia, N.Y. (February 2, 2004) -- Graham Corporation (GHM:ASE) announced today results for the third quarter (October - December 2003) of its current fiscal year. Sales for the quarter ended December 31, 2003 were $10,027,000 producing a net loss of $787,000, or diluted loss per share of $.48. This compares to sales for the quarter ending December 31, 2002 of $13,703,000, which produced a net loss of $178,000 or $.11 per diluted share. Sales for the nine months of the fiscal year (April - December 2003) were $30,919,000 compared to sales of $35,308,000 for the first nine months of the previous fiscal year; net loss was $1,289,000 versus $987,000 net loss for the first nine months of the previous fiscal year; and the diluted loss per share was $.78 versus $.59 loss per diluted share for the same period the previous year. Orders for the third quarter ended December 31, 2003 were $9,965,000 compared to $8,790,000 for the quarter ended December 31, 2002. Consolidated backlog on December 31, 2003 was $22,222,000 compared to a backlog at March 31, 2003 of $23,497,000. Al Cadena, Graham's President and CEO, commented, "Although Graham's markets are showing encouraging early signs of recovery, as seen in the quality of inquiries and in the number of capital projects scheduled to begin, our third quarter was affected by depressed margins generally and by slow sales in the company's standard products. We expect improved results for the fourth quarter." "Orders for numerous pending projects have been delayed as project owners wait for clearer signs of improvement in the U.S. and worldwide economies. Consequently, the outlook for the first half of the next fiscal year, which will start in April 2004, is for continuing slow sales for much of the first half, followed by improvement in the second half as our markets recover. The strength of international currencies against the U.S. dollar is expected to contribute to that recovery, since a significant percentage of Graham's large products are sold for export." 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 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. GRAHAM CORPORATION SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED)
Three Months Ended Nine Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2003 2002 2003 2002 -------- --------- --------- --------- Net Sales $10,027,000 $13,703,000 $30,919,000 $35,308,000 Costs and Expenses 11,153,000 13,980,000 33,270,000 36,798,000 Other Income (522,000) ----------- ----------- ----------- ----------- Loss Before Income Taxes (1,126,000) (277,000) (1,829,000) (1,490,000) Benefit for Income Taxes (339,000) (99,000) (540,000) (503,000) ----------- ----------- ----------- ----------- Net Loss $ (787,000) $ (178,000) $(1,289,000) $ (987,000) =========== =========== =========== =========== Per Share Data Net Loss Basic ($.48) ($0.11) ($.78) ($0.59) ===== ====== ===== ====== Diluted ($.48) ($0.11) ($.78) ($0.59) ===== ====== ===== ======
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) Dec. 31, March 31, 2003 2003 -------- -------- ASSETS Cash and cash equivalents $ 202,000 $ 217,000 Investments 3,502,000 6,446,000 Accounts Receivable 7,619,000 7,295,000 Inventories 8,314,000 10,341,000 Prepaid Expenses and Other Current Assets 3,169,000 2,472,000 ----------- ----------- Total Current Assets 22,806,000 26,771,000 Property, Plant & Equipment - Net 9,352,000 9,808,000 Other Assets 1,583,000 1,701,000 ----------- ----------- Total $33,741,000 $38,280,000 =========== =========== LIABILITIES & SHAREHOLDERS' EQUITY Short Term Debt & Current Portion of Long-Term Debt $ 1,488,000 $ 1,604,000 Accounts Payable 2,378,000 4,629,000 Other Current Liabilities 7,700,000 7,759,000 ----------- ----------- Total Current Liabilities 11,566,000 13,992,000 Long-Term Debt 106,000 127,000 Deferred Liabilities 4,341,000 5,368,000 Shareholders' Equity 17,728,000 18,793,000 ----------- ----------- Total $33,741,000 $38,280,000 =========== ===========
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