Exhibit 99.1
Graham Corporation t 20 Florence Avenue t Batavia, NY 14020
IMMEDIATE RELEASE
Graham Corporation Provides Third Quarter Revenue Estimate and Updates Fiscal 2019 Revenue Expectations
| ● | Preliminary third quarter revenue of approximately $17 million to $17.4 million |
| ● | Timing of backlog conversion in second half results in updating fiscal 2019 annual revenue expectations to between $90 million and $95 million, a 16% to 22% increase over prior year |
| ● | Continued strong book-to-bill ratio drove record backlog at December 31, 2018 of approximately $133 million |
| ● | Outlook for fiscal 2020 signals further revenue growth |
| ● | Third quarter fiscal 2019 conference call scheduled for January 30 |
BATAVIA, NY, January 15, 2019 – Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, today announced that it expects revenue for its third quarter of fiscal year 2019, which ended on December 31, 2018, to be approximately $17 million to $17.4 million. Further, Graham is updating its annual revenue expectations for its fiscal year that will end on March 31, 2019 to between $90 million and $95 million. The Company also announced that it will release its financial results for the third quarter of fiscal 2019 before the opening of financial markets on Wednesday, January 30, 2019.
The Company’s third quarter estimated revenue level was primarily impacted by two factors. First, shipment of a large international order was deferred until the first half of January, and the resulting revenue will be entirely recognized in the Company’s fiscal fourth quarter in accordance with new revenue recognition rules. Second, revenue associated with certain components of a U.S. Navy project will be deferred into fiscal 2020. In addition to the revenue shift out of the third quarter, revenue previously anticipated in the fourth quarter will now be deferred into fiscal 2020.
To summarize, the timing of conversion on certain orders currently in the Company’s backlog caused the change in annual revenue expectations. The revised revenue guidance for fiscal 2019 represents approximately 16% to 22% growth over fiscal 2018.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “It is now evident that certain components of revenue previously expected in our fiscal third and fourth quarters are being pushed to the right. While such changes are a normal part of our engineered-to-order project business, the magnitude is larger than we normally experience. However, we do not believe that they are indicative of changes in our execution capability, business fundamentals or markets. Rather, we believe that they are merely normal changes in timing of our customers’ schedules. Although these changes impacting the second half of fiscal 2019 were not anticipated, we remain encouraged about our prospects for continued growth as this energy cycle advances and we execute our naval strategy.”
He continued, “Order levels remain solid and we will report record backlog of approximately $133 million for the fiscal third quarter when we announce our results later this month. Additionally, based on our pipeline, we anticipate a book-to-bill ratio greater than 1.0x for the full
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