Exhibit 99.1
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News Release |
Graham Corporation 20 Florence Avenue Batavia, NY 14020
IMMEDIATE RELEASE
Graham Corporation Reports 4% Increase in Sales to $23.9 million for the
Second Quarter of Fiscal 2009 and 20% Increase in Sales for the First Half of Fiscal 2009
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Achieved gross margin of 43.9% |
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59% of orders in first half of fiscal 2009 from international markets, primarily Asia |
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Backlog at quarter-end of $69.7 million |
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$42.9 million in cash and no debt provides financial strength and flexibility |
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Maintains 15% to 20% growth expectation for fiscal 2009, but cautions to lower
end of range |
BATAVIA, NY, November 3, 2008 – Graham Corporation (NYSEAlternextUS: GHM), a manufacturer of
critical equipment for the oil refinery, petrochemical and power industries, today reported net
sales of $23.9 million in its second quarter ended September 30, 2008, up $0.8 million, or 4%,
compared with net sales of $23.1 million in the prior year’s second quarter. Net income was
relatively consistent at $4.4 million, or $0.43 per diluted share, in the second quarter of fiscal
2009, compared with $4.4 million, or $0.44 per diluted share, in the same period the prior fiscal
year. Graham’s fiscal year 2009 ends March 31, 2009.
Year-over-year sales growth of condensers, heat exchangers, pump packages and aftermarket products
was mostly offset by a decrease in sales of ejector systems. Condenser sales were $5.1 million in
the second quarter of fiscal 2009, a 24.1% increase compared with $4.1 million in the same period
the prior year. Pump package sales increased more than four-fold to $2.6 million, or 10.7% of
total net sales, in the second quarter of fiscal 2009 compared with $0.5 million, or 2.2% of net
sales, in the second quarter of fiscal 2008. Heat exchanger sales increased 35.5% year-over-year
to $3.1 million in the second quarter of fiscal 2009 compared with $2.3 million in the same period
the prior fiscal year. Aftermarket product sales increased 7.9% to $4.2 million in the second
quarter of fiscal 2009 compared with $3.9 million in the prior fiscal year’s second quarter. The
year-over-year increases in pump package and aftermarket product sales were due to three large
refinery orders. Ejector system sales fell to $8.9 million, or 37.4% of total net sales, compared
with $12.3 million, or 53.2% of total net sales, in the same period the prior fiscal year. The
prior year’s second quarter included the sales of two large ejector systems for the refinery
market. Because of the magnitude of certain individual orders and shipment timing, there can be
significant variability in sales from quarter-to-quarter. Graham does not believe such
fluctuations are indicative of business trends.
Mr. James R. Lines, President and Chief Executive Officer of Graham, commented, “As we had
expected, the second quarter did not have the robust level of growth that we have been realizing
over the course of the last two years, which was considered in the growth range we have provided.
Looking beyond this fiscal year, both the rapid change in the price of oil and the significance of
the global financial crisis, have caused a hesitation on the part of our customers to place large
orders. Nonetheless, based on our research, we believe the long-term fundamentals of the markets
we serve have not changed. We believe that Asia and the Middle East still need to expand their
refining capacity and power facilities to meet their growing requirements. Likewise, we expect
that refiners will continue to invest in existing facilities to provide the flexibility necessary
to process lower quality crude oil.”
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Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
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Domestic sales were $15.0 million, or 63% of total sales, in the second quarter of fiscal 2009,
down slightly from 67% of total sales, or $15.6 million, in the same period the prior fiscal year.
International sales were 37% of total sales in the second quarter of fiscal 2009, up from 33% in
the second quarter of fiscal 2008. Increased sales to the Middle East and Western Europe were
somewhat offset by decreases in sales to South America and Asia. Fluctuations in sales among
products and geographic locations can vary measurably from quarter-to-quarter based on the timing
and magnitude of projects, and we do not believe that such fluctuations are indicative of business
trends.
By industry, 47% of sales in the second quarter of fiscal 2009 were to the refining industry, down
from 52% in the same period the prior fiscal year. Approximately 27% of sales were to the
chemical/petrochemical industry, 8% to the power industry and 18% to other industrial applications,
as compared with 28%, 2% and 18% in the second quarter of fiscal 2008, respectively.
Additional historical information regarding sales by industry and region are contained in the
tables at the end of this news release.
Costs and expenses
Gross profit was $10.5 million, or 43.9% of sales, in the second quarter of fiscal 2009 compared
with $9.9 million, or 42.9% of sales, in the same period the prior fiscal year. Increased
selectivity of orders accepted and improved operating leverage on higher sales from efficiencies
gained on costs such as direct labor and production overhead, contributed to the year-over-year
profitability increase. Approximately 6% of manufacturing production hours were outsourced in the
second quarter of fiscal 2009.
Selling, general and administrative (“SG&A”) expenses were $3.9 million, or 16.4% of sales, in the
second quarter of fiscal 2009 compared with $3.4 million, or 14.9% of sales, in the second quarter
of fiscal 2008, but were relatively flat compared with SG&A expenses of $3.8 million, or 13.8% of
sales in the trailing first quarter of fiscal 2009. Additionally, consulting costs were incurred
in the second quarter for information technology, and engineering and manufacturing projects that
are expected to contribute to reduced cycle times and lead to greater efficiencies and capacity
expansion. For the remainder of fiscal 2009, SG&A expenses are expected to be in the range of 15%
to 16% of sales.
Mr. Lines commented, “We were careful not to add excessive fixed costs while we rapidly grew during
the last couple of years. We believe that our strategy to adopt a flexible cost model while
driving improvements will aid us during a pull-back in our markets. We believe that we are better
positioned than we have ever been to address a potential slowdown in our markets.”
Interest income in the second quarter of fiscal 2009 declined to $172 thousand compared with
$264 thousand in the same period the prior fiscal year primarily as a result of lower interest
rates.
The effective tax rate was 34.5%, in the second quarter of fiscal 2009. The effective annual tax
rate for fiscal 2009 is expected to be approximately 33.5%. The higher effective rate in the
second quarter was due to the tax benefit of the Chinese subsidiary’s taxable loss being recognized
at a lower foreign statutory rate.
Six-Month Review
Net sales for the first six months of fiscal 2009 were $51.6 million, up 20% compared with $43.0
million in the first six months of fiscal 2008. Gross margin was 44.1% for the first six months of
fiscal 2009 compared with 38.5% in the same period the prior fiscal year. Higher aftermarket
sales, particularly in the first quarter, improved product mix and engineering and manufacturing
operating efficiencies contributed to the year-over-year increase. Approximately 10% of
manufacturing production hours were outsourced in the first half of fiscal 2009. The Company
expects that outsourced manufacturing hours will be in the range of 8% to 10% for the full fiscal
year 2009.
SG&A expenses were $7.8 million, or 15.0% of sales, in the first half of fiscal 2009 compared with
$6.5 million, or 15.1% of sales, in the same period the prior fiscal year. Higher variable costs,
such as sales
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Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
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Page 3 |
commissions and variable compensation, contributed to the expense increase, as well as consulting
costs.
Net income for the first six months of fiscal 2009 was $10.1 million, or $0.99 per diluted share,
compared with $7.1 million, or $0.71 per diluted share, in the same period the prior fiscal year.
Balance Sheet and Cash Management
Cash, cash equivalents and investments at September 30, 2008 were $42.9 million compared with
$36.8 million at March 31, 2008 and $45.0 million at June 30, 2008. Net cash provided by operating
activities was $4.4 million in the first half of fiscal 2009 compared with $9.0 million in the same
period the prior fiscal year. The year-over year decrease was due to higher working capital
requirements, primarily from an increase in the accounts receivable balance due to the timing of
customer billings, a $3.5 million pension plan contribution and higher inventory. Inventory was
increased in the quarter to provide for greater flexibility to address customers’ changing
requirements. The Company has approximately
$37.8 million invested in United States Treasury notes with maturity periods of 91 to 120 days at
September 30, 2008. As of September 30, 2008, the Company had $8.8 million of outstanding letters
of credit and no borrowings outstanding on its $30.0 million revolving line of credit.
Capital expenditures were $576 thousand in the second quarter of fiscal 2009 and $795 thousand for
the six-month period compared with $284 thousand and $447 thousand in the first quarter and
six-month period of fiscal 2008, respectively. Capital expenditures for the fiscal year ending
March 31, 2009 are expected to be in the range of $1.8 to $2.2 million, of which approximately 33%
will be allocated for machinery and equipment, 53% for information technology and 14% for other
expenditures. An estimated 68% of the fiscal 2009 capital spending is expected to be used for
productivity improvements and the remaining 32% for capitalized maintenance and other general
purposes.
Outlook
Orders received in the second quarter of fiscal 2009 were $17.5 million compared with orders of
$20.5 million in the same period the prior fiscal year. Although we believe the long-term
fundamentals of the markets we serve have not changed, the decrease was primarily due to a sudden
change in the rate by which our customers are releasing orders as a result of the ongoing global
financial crisis. The Company’s backlog was $69.7 million at September 30, 2008, up 23% compared
with $56.8 million at September 30, 2007. Approximately 51% of projects in the backlog are for oil
refinery projects, 30% for chemical and petrochemical projects and 19% for power and other
industrial commercial applications compared with 50%, 26% and 24% at the end of the second quarter
of fiscal 2008, respectively. Substantially all of the projects in backlog are expected to be
converted to sales within the next twelve months.
Ejector system orders contributed 31% of total orders in the second quarter of fiscal 2009, up from
16% in the same period the prior fiscal year. Aftermarket orders increased to 19% of total orders
in the second quarter of fiscal 2009 compared with 17% in the same period the prior year, and heat
exchanger orders increased to 17% from 15% in the comparable year-over-year periods. Second
quarter condenser orders decreased to 31% of total orders in fiscal 2009 compared with 35% in
fiscal 2008, while pump package orders decreased to 2% of the total in the second quarter of fiscal
2009, down from 17% in the same period the prior fiscal year. Domestic orders contributed 52% and
international orders 48% of the total in the second quarter of fiscal 2009 compared with 58% and
42% in the same period the prior year.
For the first half of fiscal 2009, international orders represented 59% of total orders, or
$26,491, compared with international orders being 29% of total orders, or $13,221, in the first six
months of 2008. The increase in international orders for the first six months of fiscal 2009 came
primarily from Asia, up $16,174, which represented 36% of total orders for fiscal 2009 through the
second quarter. Domestic orders in both periods were comprised mostly of refinery projects.
International orders were for refinery, petrochemical and power generation applications. By
industry, increases in orders from the chemical/petrochemical industry of $5,170, or 76%, combined
with a $3,999, or 42.3%, increase in other
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Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
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industrial and commercial applications were not enough to offset the 25.0%, or $6,478, decline in
orders from the refining industry and the $2,814 decline in orders from the power industry in the
first half of fiscal 2009 when compared with the same period in fiscal 2008.
Due to the large value of ejector and condenser orders, timing of order acceptance by product or
region can significantly impact any particular reporting period similar to the variability in
sales. Graham does not believe that quarter-to-quarter comparisons are indicative of future
business trends.
Mr. Lines noted, “As mentioned previously, we believe that the rapid change in energy prices, the
strengthening of the dollar and the severity of the global financial crisis in the quarter ended
September 30, 2008 caused many of our customers to wait until the market becomes more stable and
the outlook has greater clarity before placing orders. Our backlog remains solid, and we expect
that we can achieve the 15% to 20% growth rate for fiscal 2009 that we had previously projected,
although I anticipate that we may trend to the lower end of our expectations. Gross margins will
trend toward our previous guidance of approximately 39% to 42%. We believe that the lower level of
gross margin anticipated in the third and fourth quarters will reflect the orders in backlog which
are weighted more toward international orders.”
Mr. Lines concluded, “I believe that this is an ideal environment for companies like ours that have
positioned themselves to be very strong in a challenging environment. In fact, we believe that a
sustained downturn could present potential attractive acquisition prospects for us. Our
acquisition objective is to extend our engineered-to-order products and services for the process
industries and expand our geographic market share.”
Webcast and Conference Call
Graham’ will host a conference call and live webcast tomorrow, November 4, 2008, at 8:30 a.m. EST.
During the conference call and webcast, James R. Lines, President and Chief Executive Officer, and
Jennifer Condame, Chief Accounting Officer, will review Graham’s financial and operating results
for the second quarter of fiscal 2009 as well as Graham’s strategy and outlook. A
question-and-answer session will follow.
Graham’s conference call and live webcast can be accessed as follows:
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The live webcast can be found at http://www.graham-mfg.com. Participants should
go to the website 10 -15 minutes prior to the scheduled conference in order to
register and download any necessary audio software. |
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The teleconference can be accessed by dialling 1-201-689-8560 and referencing
conference ID number 300426 approximately 5 — 10 minutes prior to the call. |
The conference call and webcast will be archived and can be reviewed as follows:
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The webcast will be archived at http://www.graham-mfg.com and a transcript will
be posted once available. The webcast and transcript will remain available on the
website for approximately 30 days. |
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A replay can be heard by calling 1-201-612-7415, and entering the account number
3055 and conference ID number 300426. The telephonic replay will be available
through
November 11, 2008 at 11:59 p.m. Eastern Time. |
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham
Corporation is a global designer, manufacturer and supplier of ejectors, pumps, condensers, vacuum
systems and heat exchangers. Over the past 72 years, Graham has built a reputation for top
quality, reliable products and high-standards of customer service. Sold either as components or
complete system solutions, the principal markets for Graham’s equipment are the petrochemical, oil
refining and electric power generation industries, including cogeneration and geothermal plants.
Graham’s equipment can be found in diverse applications, such as metal refining, pulp and paper
processing, ship-building, water heating, refrigeration, desalination,
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Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
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food processing, pharmaceutical, heating, ventilating and air conditioning.
Graham Corporation’s reach spans the globe. Its equipment is installed in facilities from North
and South America to Europe, Asia, Africa and the Middle East. More information regarding Graham
can be found at its website: www.graham-mfg.com
About NYSEAlternext US
In September 2008, the NYSE acquired the American Stock Exchange where Graham Corporation’s Common
Stock had been traded under the symbol “GHM”. With the acquisition, the NYSE placed the majority
of the former AMEX traded companies on their NYSEAlternext exchange. Therefore, Graham
Corporation’s Common Stock now trades on the NYSEAlternext exchange under the symbol “GHM”.
Safe Harbor Statement
This press 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,” “estimates,” “projects,” “anticipates,” “believes,” “could,”
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, statements relating to anticipated revenues, profit margins, foreign sales operations, its
strategy to build its global sales representative channel, the effectiveness of automation in
expanding its engineering capacity, its ability to improve cost competitiveness, customer
preferences, changes in market conditions in the industries in which Graham Corporation operates,
changes in general economic conditions and customer behavior and Graham Corporation’s acquisition
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 and Quarterly Reports filed with the
Securities and Exchange Commission, including under the heading entitled “Risk Factors.” 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 press release.
For more information contact:
Deborah K. Pawlowski, Kei Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com
FINANCIAL TABLES FOLLOW.
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November 3, 2008
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Graham Corporation Second Quarter Fiscal 2009
Consolidated Statements of Operations and Retained Earnings
(Amounts in thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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September 30, |
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September 30, |
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2008 |
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2007 |
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2008 |
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2007 |
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Net sales |
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$ |
23,915 |
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$ |
23,060 |
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$ |
51,562 |
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$ |
43,047 |
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Cost of products sold |
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13,416 |
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13,163 |
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28,845 |
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26,471 |
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Gross profit |
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10,499 |
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9,897 |
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22,717 |
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16,576 |
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Gross profit margin |
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43.9 |
% |
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42.9 |
% |
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44.1 |
% |
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38.5 |
% |
Other expenses: |
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Selling, general and administrative |
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3,931 |
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3,438 |
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7,753 |
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6,516 |
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Operating profit |
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6,568 |
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6,459 |
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14,964 |
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10,060 |
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Operating profit margin |
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27.5 |
% |
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28.0 |
% |
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29.0 |
% |
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23.4 |
% |
Interest income |
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(172 |
) |
|
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(264 |
) |
|
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(303 |
) |
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(494 |
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Interest expense |
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2 |
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2 |
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3 |
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8 |
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Total other expenses and income |
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3,761 |
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3,176 |
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7,453 |
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6,030 |
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Income before income taxes |
|
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6,738 |
|
|
|
6,721 |
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|
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15,264 |
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|
10,546 |
|
Provision for income taxes |
|
|
2,326 |
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|
|
2,299 |
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5,168 |
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3,466 |
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Net income |
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4,412 |
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4,422 |
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10,096 |
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7,080 |
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Retained earnings at beginning of period |
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42,786 |
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25,236 |
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37,216 |
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22,675 |
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Dividends |
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(203 |
) |
|
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(99 |
) |
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(354 |
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(196 |
) |
Effect of adoption of measurement date
provisions of Statement of Financial
Accounting Standards No. 158 |
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— |
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— |
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37 |
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— |
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Retained earnings at end of period |
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$ |
46,995 |
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$ |
29,559 |
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$ |
46,995 |
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$ |
29,559 |
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Per Share Data: |
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Basic: |
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Net income |
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$ |
.43 |
|
|
$ |
.45 |
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$ |
1.00 |
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$ |
.72 |
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Diluted: |
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Net income |
|
$ |
.43 |
|
|
$ |
.44 |
|
|
$ |
.99 |
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$ |
.71 |
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Weighted average common shares outstanding: |
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Basic: |
|
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10,169 |
|
|
|
9,859 |
|
|
|
10,127 |
|
|
|
9,835 |
|
Diluted: |
|
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10,249 |
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|
|
10,029 |
|
|
|
10,227 |
|
|
|
10,030 |
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Dividends declared per share |
|
$ |
.02 |
|
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$ |
.01 |
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$ |
.035 |
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$ |
.02 |
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| Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
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Page 7 |
Graham Corporation Second Quarter Fiscal 2009
Consolidated Balance Sheets
(Amounts in thousands, except per share data)
(Unaudited)
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September 30, |
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March 31, |
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2008 |
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2008 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
5,044 |
|
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$ |
2,112 |
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Investments |
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37,811 |
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34,681 |
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Trade accounts receivable, net of allowances ($26 and
$41 at September 30, and March 31, 2008,
respectively) |
|
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8,649 |
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|
5,052 |
|
Unbilled revenue |
|
|
5,899 |
|
|
|
8,763 |
|
Inventories |
|
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6,033 |
|
|
|
4,797 |
|
Income taxes receivable |
|
|
2,779 |
|
|
|
1,502 |
|
Prepaid expenses and other current assets |
|
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581 |
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|
463 |
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Total current assets |
|
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66,796 |
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|
57,370 |
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Property, plant and equipment, net |
|
|
9,458 |
|
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|
9,060 |
|
Deferred income tax asset |
|
|
86 |
|
|
|
70 |
|
Prepaid pension asset |
|
|
6,959 |
|
|
|
4,186 |
|
Other assets |
|
|
19 |
|
|
|
25 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
83,318 |
|
|
$ |
70,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of capital lease obligations |
|
$ |
27 |
|
|
$ |
20 |
|
Accounts payable |
|
|
5,510 |
|
|
|
5,461 |
|
Accrued compensation |
|
|
4,391 |
|
|
|
4,517 |
|
Accrued expenses and other liabilities |
|
|
2,070 |
|
|
|
2,114 |
|
Customer deposits |
|
|
5,617 |
|
|
|
5,985 |
|
Deferred income tax liability |
|
|
2,275 |
|
|
|
2,275 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
19,890 |
|
|
|
20,372 |
|
Capital lease obligations |
|
|
46 |
|
|
|
36 |
|
Accrued compensation |
|
|
253 |
|
|
|
232 |
|
Deferred income tax liability |
|
|
1,347 |
|
|
|
315 |
|
Accrued pension liability |
|
|
282 |
|
|
|
271 |
|
Accrued postretirement benefits |
|
|
932 |
|
|
|
949 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
22,750 |
|
|
|
22,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $1 par value – Authorized, 500 shares
Common stock, $.10 par value — Authorized, 25,500 and
6,000 shares at September 30 and March 31, 2008,
respectively
Issued 10,127 and 9,982 shares at September 30
and March 31, 2008, respectively |
|
|
1,013 |
|
|
|
499 |
|
Capital in excess of par value |
|
|
14,808 |
|
|
|
12,674 |
|
Retained earnings |
|
|
46,995 |
|
|
|
37,216 |
|
Accumulated other comprehensive loss |
|
|
(2,203 |
) |
|
|
(1,820 |
) |
Other |
|
|
(45 |
) |
|
|
(33 |
) |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
60,568 |
|
|
|
48,536 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
83,318 |
|
|
$ |
70,711 |
|
|
|
|
|
|
|
|
- MORE -
|
|
|
| |
|
|
Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
November 3, 2008
|
Page 8 |
Graham Corporation Second Quarter Fiscal 2009
Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
| |
|
September 30, |
|
| |
|
2008 |
|
|
2007 |
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,096 |
|
|
$ |
7,080 |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
530 |
|
|
|
462 |
|
Discount accretion on investments |
|
|
(293 |
) |
|
|
(421 |
) |
Stock-based compensation expense |
|
|
257 |
|
|
|
78 |
|
Loss on disposal of property, plant and equipment |
|
|
(1 |
) |
|
|
— |
|
Deferred income taxes |
|
|
1,267 |
|
|
|
3,014 |
|
(Increase) decrease in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(3,591 |
) |
|
|
487 |
|
Unbilled revenue |
|
|
2,864 |
|
|
|
(475 |
) |
Inventories |
|
|
(1,236 |
) |
|
|
1,231 |
|
Income taxes receivable/payable |
|
|
(1,277 |
) |
|
|
(781 |
) |
Prepaid expenses and other current and non-current assets |
|
|
(117 |
) |
|
|
(268 |
) |
Prepaid pension asset |
|
|
(3,574 |
) |
|
|
(19 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(18 |
) |
|
|
182 |
|
Accrued compensation, accrued expenses and other current and non-current liabilities |
|
|
(176 |
) |
|
|
474 |
|
Customer deposits |
|
|
(379 |
) |
|
|
(2,093 |
) |
Long-term portion of accrued compensation, accrued pension liability and accrued postretirement benefits |
|
|
50 |
|
|
|
46 |
|
|
|
|
|
|
|
|
Total adjustments |
|
|
(5,694 |
) |
|
|
1,917 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
4,402 |
|
|
|
8,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(795 |
) |
|
|
(447 |
) |
Proceeds from sale of property, plant and equipment |
|
|
1 |
|
|
|
25 |
|
Purchase of investments |
|
|
(61,437 |
) |
|
|
(37,053 |
) |
Redemption of investments at maturity |
|
|
58,600 |
|
|
|
27,750 |
|
|
|
|
|
|
|
|
Net cash used by investing activities |
|
|
(3,631 |
) |
|
|
(9,725 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
2,450 |
|
|
|
14 |
|
Principal repayments on long-term debt |
|
|
(2,464 |
) |
|
|
(33 |
) |
Issuance of common stock |
|
|
695 |
|
|
|
273 |
|
Dividends paid |
|
|
(354 |
) |
|
|
(196 |
) |
Excess tax deduction on stock awards |
|
|
1,696 |
|
|
|
— |
|
Other |
|
|
(12 |
) |
|
|
18 |
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
2,011 |
|
|
|
76 |
|
|
|
|
|
|
|
|
Effect of exchange rates on cash |
|
|
150 |
|
|
|
15 |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
2,932 |
|
|
|
(637 |
) |
Cash and cash equivalents at beginning of period |
|
|
2,112 |
|
|
|
1,375 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
5,044 |
|
|
$ |
738 |
|
|
|
|
|
|
|
|
- MORE -
| |
|
|
Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
|
|
Page 9 |
November 3, 2008 |
|
|
Graham Corporation Second Quarter Fiscal 2009
Additional Information
ORDER AND BACKLOG TREND
($, in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q108 |
|
Q208 |
|
Q308 |
|
Q408 |
|
FY 2008 |
|
Q109 |
|
Q209 |
| |
|
6/30/07 |
|
9/30/07 |
|
12/31/07 |
|
3/31/08 |
|
3/31/08 |
|
6/30/08 |
|
9/30/08 |
Orders |
|
$ |
24.9 |
|
|
$ |
20.5 |
|
|
$ |
26.6 |
|
|
$ |
35.1 |
|
|
$ |
107.1 |
|
|
$ |
27.8 |
|
|
$ |
17.5 |
|
Backlog |
|
$ |
59.2 |
|
|
$ |
56.8 |
|
|
$ |
63.0 |
|
|
$ |
75.7 |
|
|
$ |
75.7 |
|
|
$ |
76.0 |
|
|
$ |
69.7 |
|
SALES BY INDUSTRY FISCAL 2009
($, in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q109 |
|
% |
|
Q209 |
|
% |
| |
|
6/30/08 |
|
Total |
|
9/30/08 |
|
Total |
Refining |
|
$ |
14.4 |
|
|
|
52 |
% |
|
$ |
11.1 |
|
|
|
47 |
% |
Chem/ Petrochemical |
|
$ |
5.3 |
|
|
|
19 |
% |
|
$ |
6.4 |
|
|
|
27 |
% |
Power |
|
$ |
1.3 |
|
|
|
5 |
% |
|
$ |
2.0 |
|
|
|
8 |
% |
Other |
|
$ |
6.6 |
|
|
|
24 |
% |
|
$ |
4.4 |
|
|
|
18 |
% |
Total |
|
$ |
27.6 |
|
|
|
|
|
|
$ |
23.9 |
|
|
|
|
|
SALES BY INDUSTRY FISCAL 2008
($, in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q108 |
|
% |
|
Q208 |
|
% |
|
Q308 |
|
% |
|
Q408 |
|
% |
|
FY 2008 |
|
% |
| |
|
6/30/07 |
|
Total |
|
9/30/07 |
|
Total |
|
12/31/07 |
|
Total |
|
3/31/08 |
|
Total |
|
3/31/08 |
|
Total |
Refining |
|
$ |
9.7 |
|
|
|
48 |
% |
|
$ |
12.0 |
|
|
|
52 |
% |
|
$ |
7.8 |
|
|
|
38 |
% |
|
$ |
7.5 |
|
|
|
33 |
% |
|
$ |
37.0 |
|
|
|
43 |
% |
Chem/ Petrochemical |
|
$ |
4.6 |
|
|
|
23 |
% |
|
$ |
6.5 |
|
|
|
28 |
% |
|
$ |
8.5 |
|
|
|
41 |
% |
|
$ |
7.3 |
|
|
|
32 |
% |
|
$ |
26.9 |
|
|
|
31 |
% |
Power |
|
$ |
0.8 |
|
|
|
4 |
% |
|
$ |
0.4 |
|
|
|
2 |
% |
|
$ |
0.1 |
|
|
|
1 |
% |
|
$ |
0.1 |
|
|
|
0 |
% |
|
$ |
1.4 |
|
|
|
2 |
% |
Other |
|
$ |
4.9 |
|
|
|
25 |
% |
|
$ |
4.2 |
|
|
|
18 |
% |
|
$ |
4.1 |
|
|
|
20 |
% |
|
$ |
7.9 |
|
|
|
35 |
% |
|
$ |
21.1 |
|
|
|
24 |
% |
Total |
|
$ |
20.0 |
|
|
|
|
|
|
$ |
23.1 |
|
|
|
|
|
|
$ |
20.5 |
|
|
|
|
|
|
$ |
22.8 |
|
|
|
|
|
|
$ |
86.4 |
|
|
|
|
|
- MORE -
| |
|
|
Graham Corporation Reports 4% Increase in Sales to $23.9 Million in Second Quarter Fiscal 2009
|
|
Page 10 |
November 3, 2008 |
|
|
SALES BY REGION FISCAL 2009
($, in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q109 |
|
% |
|
Q209 |
|
% |
| |
|
6/30/08 |
|
Total |
|
9/30/08 |
|
Total |
North America |
|
$ |
20.9 |
|
|
|
76 |
% |
|
$ |
17.0 |
|
|
|
71 |
% |
Middle East |
|
$ |
2.0 |
|
|
|
7 |
% |
|
$ |
3.0 |
|
|
|
13 |
% |
Asia |
|
$ |
3.0 |
|
|
|
11 |
% |
|
$ |
1.0 |
|
|
|
4 |
% |
Other |
|
$ |
1.7 |
|
|
|
6 |
% |
|
$ |
2.9 |
|
|
|
12 |
% |
Total |
|
$ |
27.6 |
|
|
|
|
|
|
$ |
23.9 |
|
|
|
|
|
SALES BY REGION FISCAL 2008
($, in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q108 |
|
% |
|
Q208 |
|
% |
|
Q308 |
|
% |
|
Q408 |
|
% |
|
FY 2008 |
|
% |
| |
|
6/30/07 |
|
Total |
|
9/30/07 |
|
Total |
|
12/31/07 |
|
Total |
|
3/31/08 |
|
Total |
|
3/31/08 |
|
Total |
North America |
|
$ |
11.7 |
|
|
|
59 |
% |
|
$ |
17.8 |
|
|
|
77 |
% |
|
$ |
11.2 |
|
|
|
55 |
% |
|
$ |
12.0 |
|
|
|
53 |
% |
|
$ |
52.7 |
|
|
|
61 |
% |
Middle East |
|
$ |
4.2 |
|
|
|
21 |
% |
|
$ |
0.5 |
|
|
|
2 |
% |
|
$ |
1.6 |
|
|
|
8 |
% |
|
$ |
3.7 |
|
|
|
16 |
% |
|
$ |
10.0 |
|
|
|
11 |
% |
Asia |
|
$ |
2.5 |
|
|
|
12 |
% |
|
$ |
2.1 |
|
|
|
9 |
% |
|
$ |
3.9 |
|
|
|
19 |
% |
|
$ |
4.3 |
|
|
|
19 |
% |
|
$ |
12.8 |
|
|
|
15 |
% |
Other |
|
$ |
1.6 |
|
|
|
8 |
% |
|
$ |
2.7 |
|
|
|
12 |
% |
|
$ |
3.8 |
|
|
|
18 |
% |
|
$ |
2.8 |
|
|
|
12 |
% |
|
$ |
10.9 |
|
|
|
13 |
% |
Total |
|
$ |
20.0 |
|
|
|
|
|
|
$ |
23.1 |
|
|
|
|
|
|
$ |
20.5 |
|
|
|
|
|
|
$ |
22.8 |
|
|
|
|
|
|
$ |
86.4 |
|
|
|
|
|
- END -