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. 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. 3 GRAHAM CORPORATION SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED) (In thousands except per share data)
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) ===== ===== ===== =====
4 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(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 ======== ========
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