Quarterly Report (10-q)
November 07 2022 - 07:36AM
Edgar (US Regulatory)
one
yearQ2false33.330000716314P1Y33.33--03-31One
year0000716314us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-09-300000716314us-gaap:CommonStockMember2021-09-300000716314srt:MinimumMember2022-04-012022-09-300000716314ghm:BarberNicholsIncMember2022-09-3000007163142021-03-310000716314us-gaap:TreasuryStockMember2021-04-012021-06-300000716314srt:SouthAmericaMember2022-04-012022-09-300000716314country:CA2021-04-012021-09-300000716314us-gaap:PrimeRateMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LetterOfCreditMember2021-06-012021-06-010000716314ghm:OtherCommercialMember2021-07-012021-09-300000716314us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000716314country:US2021-07-012021-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:OfficersAndKeyEmployeesMemberghm:TimeVestedRestrictedStockMember2021-04-012021-06-300000716314us-gaap:PensionPlansDefinedBenefitMember2022-09-300000716314us-gaap:LetterOfCreditMemberghm:HSBCBankUSAMember2021-05-310000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000716314us-gaap:MiddleEastMember2021-07-012021-09-300000716314ghm:BarberNicholsIncMemberghm:BacklogMember2022-04-012022-09-300000716314us-gaap:RevolvingCreditFacilityMember2022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMember2021-07-012021-09-300000716314us-gaap:LineOfCreditMember2022-09-3000007163142021-06-012021-06-010000716314us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-03-310000716314ghm:BarberNicholsIncMemberus-gaap:TradeNamesMember2022-04-012022-09-300000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310000716314ghm:AllOtherCountriesMember2021-04-012021-09-300000716314us-gaap:OtherOperatingIncomeExpenseMemberghm:TransactionAgreementMember2022-09-300000716314us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300000716314us-gaap:AdditionalPaidInCapitalMember2021-09-300000716314ghm:DefenseMember2021-07-012021-09-300000716314us-gaap:CommonStockMember2021-04-012021-06-300000716314srt:MaximumMembersrt:ScenarioForecastMember2022-04-012023-03-310000716314ghm:SpaceMember2021-07-012021-09-300000716314us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000716314us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300000716314ghm:DirectorsMember2022-04-012022-09-300000716314us-gaap:TreasuryStockMember2021-03-310000716314us-gaap:LineOfCreditMembersrt:MaximumMember2022-09-300000716314us-gaap:StockCompensationPlanMember2022-04-012022-09-3000007163142023-01-01srt:MaximumMember2022-09-300000716314us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-3000007163142022-04-012022-06-300000716314ghm:FiveYearTermLoanWithBankOfAmericaMember2021-06-010000716314ghm:AllOtherCountriesMember2022-07-012022-09-300000716314ghm:OtherCommercialMember2021-04-012021-09-300000716314ghm:EmployeeStockPurchasePlanMember2022-04-012022-09-300000716314ghm:TwoThousandIncentivePlanMemberus-gaap:EmployeeStockOptionMember2021-04-012021-09-300000716314country:US2021-04-012021-09-300000716314ghm:OtherCommercialMember2022-07-012022-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000716314us-gaap:TreasuryStockMember2022-06-300000716314us-gaap:RetainedEarningsMember2021-06-3000007163142022-01-01srt:MinimumMember2022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMember2022-07-012022-09-300000716314us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300000716314ghm:BloombergShortTermBankYieldIndexMemberus-gaap:LineOfCreditMember2021-06-012021-06-010000716314ghm:EmployeeStockPurchasePlanMember2021-07-012021-09-300000716314us-gaap:RetainedEarningsMember2022-06-300000716314us-gaap:CustomerRelationshipsMemberghm:BarberNicholsIncMember2022-04-012022-09-300000716314ghm:BankOfAmericaTermLoanMember2022-09-300000716314us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-09-300000716314ghm:AccumulatedDefinedBenefitPlansAdjustmentNetActuarialLossesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-04-012022-09-300000716314ghm:BarberNicholsIncMemberus-gaap:LeaseAgreementsMember2021-06-010000716314ghm:RefiningMember2022-07-012022-09-300000716314ghm:CustomerDepositsMember2022-03-310000716314us-gaap:LineOfCreditMember2021-06-010000716314us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000716314srt:MaximumMemberghm:TwoThousandIncentivePlanMemberus-gaap:StockCompensationPlanMember2022-09-300000716314us-gaap:LatestTaxYearMemberus-gaap:StateAndLocalJurisdictionMember2022-04-012022-09-300000716314ghm:BarberNicholsIncMember2021-06-300000716314ghm:EmployeeStockPurchasePlanMember2022-06-300000716314ghm:SpaceMember2021-04-012021-09-300000716314ghm:LetterOfCreditSecuredByCashMember2021-06-012021-06-010000716314us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-09-300000716314us-gaap:RetainedEarningsMember2022-07-012022-09-300000716314ghm:TwoThousandIncentivePlanMemberus-gaap:EmployeeStockOptionMember2021-07-012021-09-300000716314ghm:BarberNicholsIncMember2021-07-012021-09-300000716314us-gaap:CommonStockMember2021-07-012021-09-300000716314ghm:BankOfAmericaMember2022-09-300000716314ghm:TechnologyAndTechnicalKnowHowMemberghm:BarberNicholsIncMember2022-09-300000716314us-gaap:AdditionalPaidInCapitalMember2022-09-300000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-3000007163142021-06-300000716314us-gaap:CustomerRelationshipsMember2022-03-3100007163142022-07-012022-09-300000716314ghm:AccumulatedDefinedBenefitPlansAdjustmentNetActuarialLossesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-09-300000716314us-gaap:CustomerRelationshipsMemberghm:BarberNicholsIncMember2022-09-300000716314us-gaap:CommonStockMember2022-04-012022-06-300000716314us-gaap:CommonStockMember2021-03-310000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMembersrt:ScenarioForecastMembersrt:OfficerMember2022-04-012023-03-310000716314us-gaap:CommonStockMember2022-03-310000716314ghm:BarberNicholsIncMember2022-04-012022-09-300000716314us-gaap:TreasuryStockMember2022-09-300000716314us-gaap:CommonStockMember2022-06-3000007163142024-01-012022-09-300000716314us-gaap:AdditionalPaidInCapitalMember2022-06-300000716314ghm:SpaceMember2022-07-012022-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000716314ghm:AllOtherCountriesMember2021-07-012021-09-300000716314us-gaap:CustomerRelationshipsMember2022-09-300000716314srt:OfficerMember2022-04-012022-09-300000716314us-gaap:CommonStockMember2022-09-300000716314us-gaap:RetainedEarningsMember2021-07-012021-09-300000716314us-gaap:LetterOfCreditMember2021-06-012021-06-010000716314us-gaap:RetainedEarningsMember2021-03-310000716314us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000716314ghm:TechnologyAndTechnicalKnowHowMember2022-09-300000716314ghm:FloorRateMemberus-gaap:LineOfCreditMember2021-06-012021-06-010000716314us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMembersrt:OfficerMember2021-07-012021-09-300000716314us-gaap:TreasuryStockMember2021-07-012021-09-300000716314ghm:EmployeeStockPurchasePlanMember2021-04-012021-09-300000716314us-gaap:LineOfCreditMember2022-03-310000716314us-gaap:DomesticCountryMemberus-gaap:EarliestTaxYearMember2022-04-012022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:OfficersAndKeyEmployeesMemberghm:TimeVestedRestrictedStockMember2022-04-012022-09-300000716314ghm:BloombergShortTermBankYieldIndexMemberghm:FiveYearTermLoanWithBankOfAmericaMember2021-06-012021-06-010000716314us-gaap:ForeignCountryMemberus-gaap:LatestTaxYearMemberus-gaap:StateAdministrationOfTaxationChinaMember2022-04-012022-09-300000716314us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000007163142022-11-010000716314srt:MaximumMember2022-04-012022-09-300000716314country:CA2022-07-012022-09-3000007163142021-04-012021-09-300000716314country:CA2021-07-012021-09-300000716314us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-012022-09-300000716314ghm:FloorRateMemberghm:FiveYearTermLoanWithBankOfAmericaMember2021-06-012021-06-010000716314ghm:BankOfAmericaMember2022-04-012022-09-300000716314ghm:DefenseMember2022-04-012022-09-300000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300000716314ghm:EmployeeStockPurchasePlanMember2022-07-012022-09-300000716314us-gaap:RetainedEarningsMember2022-03-310000716314us-gaap:TreasuryStockMember2022-04-012022-06-300000716314us-gaap:MiddleEastMember2021-04-012021-09-300000716314country:US2022-07-012022-09-300000716314us-gaap:MiddleEastMember2022-04-012022-09-300000716314us-gaap:CommonStockMember2021-06-300000716314ghm:AccumulatedDefinedBenefitPlansAdjustmentNetActuarialGainLossesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-3000007163142022-01-01srt:MaximumMember2022-09-300000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-09-300000716314us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000716314us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-09-3000007163142021-04-012021-06-300000716314us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-09-300000716314us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-3000007163142022-06-300000716314ghm:CustomerDepositsMember2022-09-300000716314ghm:BankOfAmericaTermLoanMember2022-03-310000716314us-gaap:RestrictedStockMemberghm:OfficersAndKeyEmployeesMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMember2022-04-012022-06-300000716314srt:SouthAmericaMember2022-07-012022-09-300000716314us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-09-300000716314ghm:BarberNicholsIncMember2021-06-012021-06-010000716314ghm:TwoThousandIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-07-012022-09-300000716314us-gaap:LetterOfCreditMemberghm:HSBCBankUSAMember2021-06-010000716314us-gaap:LineOfCreditMember2022-07-012022-09-300000716314ghm:FiveYearTermLoanWithBankOfAmericaMember2021-06-012021-06-010000716314ghm:TechnologyAndTechnicalKnowHowMember2022-03-3100007163142022-04-012022-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000716314country:CA2022-04-012022-09-300000716314us-gaap:StockCompensationPlanMember2021-07-012021-09-300000716314ghm:BarberNicholsIncMemberus-gaap:TradeNamesMember2022-09-300000716314us-gaap:LetterOfCreditMember2022-03-310000716314us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-04-012022-09-3000007163142021-07-012021-09-300000716314srt:ScenarioForecastMember2022-04-012023-03-310000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMembersrt:DirectorMemberghm:TimeVestedRestrictedStockMember2022-04-012022-09-3000007163142023-01-01srt:MinimumMember2022-09-300000716314us-gaap:LetterOfCreditMember2022-09-300000716314srt:MaximumMember2022-01-012022-12-310000716314us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMember2022-04-012022-09-300000716314us-gaap:RetainedEarningsMember2022-09-300000716314us-gaap:StockCompensationPlanMember2022-07-012022-09-300000716314ghm:HSBCBankUSAMember2022-09-300000716314ghm:ChemicalPetrochemicalMember2021-07-012021-09-300000716314us-gaap:RevolvingCreditFacilityMemberus-gaap:LetterOfCreditMembersrt:MinimumMember2021-06-012021-06-010000716314ghm:TwoThousandIncentivePlanMemberghm:StockCompensationPriorPlanMember2022-03-310000716314us-gaap:RevolvingCreditFacilityMemberus-gaap:LetterOfCreditMember2021-06-012021-06-010000716314srt:MinimumMember2022-01-012022-12-310000716314us-gaap:AccumulatedTranslationAdjustmentMember2021-09-3000007163142021-09-300000716314us-gaap:RetainedEarningsMember2021-04-012021-06-300000716314ghm:BarberNicholsIncMember2021-06-010000716314ghm:TechnologyAndTechnicalKnowHowMemberghm:BarberNicholsIncMember2021-06-010000716314us-gaap:CommonStockMember2022-07-012022-09-300000716314srt:AsiaMember2022-07-012022-09-300000716314ghm:TwoThousandIncentivePlanMember2021-07-012021-09-300000716314us-gaap:ForeignCountryMemberus-gaap:LatestTaxYearMemberus-gaap:MinistryOfFinanceIndiaMember2022-04-012022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:TimeVestedRestrictedStockMembersrt:OfficerMember2022-04-012022-09-300000716314us-gaap:CustomerRelationshipsMemberghm:BarberNicholsIncMember2021-06-010000716314us-gaap:AdditionalPaidInCapitalMember2021-03-310000716314us-gaap:TreasuryStockMember2021-09-300000716314us-gaap:EarliestTaxYearMemberus-gaap:StateAndLocalJurisdictionMember2022-04-012022-09-300000716314us-gaap:TreasuryStockMember2022-07-012022-09-300000716314us-gaap:ForeignCountryMemberus-gaap:EarliestTaxYearMemberus-gaap:MinistryOfFinanceIndiaMember2022-04-012022-09-300000716314ghm:TwoThousandIncentivePlanMemberus-gaap:EmployeeStockOptionMember2020-08-112020-08-110000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMember2021-04-012021-09-300000716314srt:SouthAmericaMember2021-07-012021-09-300000716314srt:SouthAmericaMember2021-04-012021-09-300000716314srt:AsiaMember2021-04-012021-09-300000716314us-gaap:RetainedEarningsMember2021-09-300000716314ghm:RefiningMember2022-04-012022-09-300000716314us-gaap:RetainedEarningsMember2022-04-012022-06-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMembersrt:DirectorMemberghm:PerformanceVestedRestrictedStockMember2022-04-012022-06-300000716314ghm:DefenseMember2022-07-012022-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000716314us-gaap:RevolvingCreditFacilityMemberus-gaap:LetterOfCreditMembersrt:MaximumMember2021-06-012021-06-010000716314us-gaap:AdditionalPaidInCapitalMember2022-03-310000716314us-gaap:TreasuryStockMember2021-06-300000716314ghm:OtherCommercialMember2022-04-012022-09-300000716314us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-09-300000716314us-gaap:OtherOperatingIncomeExpenseMemberghm:BarberNicholsIncMember2021-09-300000716314us-gaap:TreasuryStockMember2022-03-310000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000716314us-gaap:ForeignCountryMemberus-gaap:StateAdministrationOfTaxationChinaMemberus-gaap:EarliestTaxYearMember2022-04-012022-09-300000716314ghm:BarberNicholsIncMember2021-04-012021-09-3000007163142022-03-310000716314ghm:ChemicalPetrochemicalMember2022-07-012022-09-300000716314srt:AsiaMember2022-04-012022-09-300000716314ghm:RefiningMember2021-07-012021-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000716314country:US2022-04-012022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMember2020-08-110000716314us-gaap:MiddleEastMember2022-07-012022-09-300000716314ghm:AllOtherCountriesMember2022-04-012022-09-300000716314ghm:DefenseMember2021-04-012021-09-300000716314us-gaap:PensionPlansDefinedBenefitMember2022-04-012022-09-3000007163142022-09-300000716314ghm:BarberNicholsIncMemberghm:BacklogMember2022-09-300000716314ghm:ChemicalPetrochemicalMember2022-04-012022-09-300000716314ghm:SpaceMember2022-04-012022-09-300000716314ghm:AccumulatedDefinedBenefitPlansAdjustmentNetActuarialGainLossesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000716314ghm:TwoThousandIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-04-012022-09-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000716314ghm:TechnologyAndTechnicalKnowHowMemberghm:BarberNicholsIncMember2022-04-012022-09-300000716314us-gaap:AdditionalPaidInCapitalMember2021-06-300000716314us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000716314us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-012022-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMembersrt:DirectorMemberghm:TimeVestedRestrictedStockMember2022-04-012022-06-300000716314ghm:RefiningMember2021-04-012021-09-300000716314ghm:BarberNicholsIncMembersrt:MaximumMember2021-06-010000716314us-gaap:StockCompensationPlanMember2021-04-012021-09-300000716314us-gaap:RestrictedStockMemberghm:TwoThousandIncentivePlanMemberghm:PerformanceVestedRestrictedStockMembersrt:OfficerMember2022-04-012022-09-300000716314us-gaap:DomesticCountryMemberus-gaap:LatestTaxYearMember2022-04-012022-09-300000716314ghm:ChemicalPetrochemicalMember2021-04-012021-09-300000716314srt:AsiaMember2021-07-012021-09-30iso4217:USDxbrli:sharesxbrli:purexbrli:sharesiso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended
September 30,
2022
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to
___________
Commission File Number
001-08462
GRAHAM CORPORATION
(Exact name of registrant as specified in its charter)
|
|
|
Delaware
|
16-1194720
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
20 Florence Avenue,
Batavia,
New York
|
14020
|
|
(Address of principal executive offices)
|
(Zip Code)
|
585-343-2216
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the
Act:
|
|
|
|
|
|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange on which registered
|
|
Common Stock, Par Value $0.10 Per Share
|
|
GHM
|
|
NYSE
|
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, a
smaller reporting company, or an emerging growth company. See the
definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule
12b-2 of the Exchange Act.
|
|
|
|
|
|
Large accelerated filer
|
☐
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☒
|
|
Smaller reporting company
|
☒
|
|
Emerging growth company
|
☐
|
|
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No
☒
As of November 1, 2022, there were outstanding
10,611,061
shares of the registrant’s common stock, par value $0.10 per
share.
Graham Corporation and Subsidiaries
Index to Form 10-Q
As of September 30, 2022 and March 31, 2022 and for the three and
six months ended September 30, 2022 and 2021
2
GRAHAM CORPORATION AND SUBSIDIARIES
FORM 10-Q
SEPTEMBER 30, 2022
PART I – FINANCIAL
INFORMATION
Item 1. Unaudited Condensed Consolidated
Financial Statements
GRAHAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
(Amounts in thousands, except per share data)
|
|
|
(Amounts in thousands, except per share data)
|
|
|
|
Net sales
|
|
$
|
38,143
|
|
|
$
|
34,146
|
|
|
$
|
74,218
|
|
|
$
|
54,303
|
|
|
|
Cost of products sold
|
|
|
32,863
|
|
|
|
30,703
|
|
|
|
62,194
|
|
|
|
49,946
|
|
|
|
Gross profit
|
|
|
5,280
|
|
|
|
3,443
|
|
|
|
12,024
|
|
|
|
4,357
|
|
|
|
Other expenses and income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
5,059
|
|
|
|
4,973
|
|
|
|
10,544
|
|
|
|
9,805
|
|
|
|
Selling, general and administrative – amortization
|
|
|
273
|
|
|
|
274
|
|
|
|
547
|
|
|
|
365
|
|
|
|
Other operating income, net
|
|
|
—
|
|
|
|
(1,102
|
)
|
|
|
—
|
|
|
|
(1,102
|
)
|
|
|
Operating income (loss)
|
|
|
(52
|
)
|
|
|
(702
|
)
|
|
|
933
|
|
|
|
(4,711
|
)
|
|
|
Other income, net
|
|
|
(62
|
)
|
|
|
(145
|
)
|
|
|
(125
|
)
|
|
|
(305
|
)
|
|
|
Interest income
|
|
|
(24
|
)
|
|
|
(14
|
)
|
|
|
(32
|
)
|
|
|
(31
|
)
|
|
|
Interest expense
|
|
|
270
|
|
|
|
129
|
|
|
|
435
|
|
|
|
168
|
|
|
|
Income (loss) before provision (benefit) for income
taxes
|
|
|
(236
|
)
|
|
|
(672
|
)
|
|
|
655
|
|
|
|
(4,543
|
)
|
|
|
Provision (benefit) for income taxes
|
|
|
(40
|
)
|
|
|
(180
|
)
|
|
|
175
|
|
|
|
(925
|
)
|
|
|
Net income (loss)
|
|
$
|
(196
|
)
|
|
$
|
(492
|
)
|
|
$
|
480
|
|
|
$
|
(3,618
|
)
|
|
|
Per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.35
|
)
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.35
|
)
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
10,617
|
|
|
|
10,681
|
|
|
|
10,614
|
|
|
|
10,442
|
|
|
|
Diluted
|
|
|
10,617
|
|
|
|
10,681
|
|
|
|
10,618
|
|
|
|
10,442
|
|
|
|
Dividends declared per share
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
—
|
|
|
$
|
0.22
|
|
|
See Notes to Condensed Consolidated Financial
Statements.
3
GRAHAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
(Amounts in thousands)
|
|
|
|
Net income (loss)
|
|
$
|
(196
|
)
|
|
$
|
(492
|
)
|
|
$
|
480
|
|
|
$
|
(3,618
|
)
|
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
(337
|
)
|
|
|
(35
|
)
|
|
|
(680
|
)
|
|
|
93
|
|
|
|
Defined benefit pension and other postretirement plans net
of income tax expense of $37 and
$72 for
the three months
ended September 30, 2022 and 2021, respectively, and
$74 and
$121 for
the six months ended September 30, 2022 and 2021,
respectively
|
|
|
131
|
|
|
|
251
|
|
|
|
262
|
|
|
|
421
|
|
|
|
Total other comprehensive (loss) income
|
|
|
(206
|
)
|
|
|
216
|
|
|
|
(418
|
)
|
|
|
514
|
|
|
|
Total comprehensive income (loss)
|
|
$
|
(402
|
)
|
|
$
|
(276
|
)
|
|
$
|
62
|
|
|
$
|
(3,104
|
)
|
|
See Notes to Condensed Consolidated Financial
Statements.
4
GRAHAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022
|
|
|
March 31, 2022
|
|
|
|
|
|
(Amounts in thousands, except per share data)
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
14,122
|
|
|
$
|
14,741
|
|
|
|
Trade accounts receivable, net of allowances ($84 and
$87 at
September 30 and
March 31, 2022, respectively)
|
|
|
27,109
|
|
|
|
27,645
|
|
|
|
Unbilled revenue
|
|
|
30,670
|
|
|
|
25,570
|
|
|
|
Inventories
|
|
|
19,848
|
|
|
|
17,414
|
|
|
|
Prepaid expenses and other current assets
|
|
|
2,235
|
|
|
|
1,391
|
|
|
|
Income taxes receivable
|
|
|
570
|
|
|
|
459
|
|
|
|
Total current assets
|
|
|
94,554
|
|
|
|
87,220
|
|
|
|
Property, plant and equipment, net
|
|
|
24,354
|
|
|
|
24,884
|
|
|
|
Prepaid pension asset
|
|
|
7,384
|
|
|
|
7,058
|
|
|
|
Operating lease assets
|
|
|
7,887
|
|
|
|
8,394
|
|
|
|
Goodwill
|
|
|
23,523
|
|
|
|
23,523
|
|
|
|
Customer relationships, net
|
|
|
11,013
|
|
|
|
11,308
|
|
|
|
Technology and technical know-how, net
|
|
|
9,427
|
|
|
|
9,679
|
|
|
|
Other intangible assets, net
|
|
|
8,300
|
|
|
|
8,990
|
|
|
|
Deferred income tax asset
|
|
|
2,288
|
|
|
|
2,441
|
|
|
|
Other assets
|
|
|
175
|
|
|
|
194
|
|
|
|
Total assets
|
|
$
|
188,905
|
|
|
$
|
183,691
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term debt obligations
|
|
$
|
2,500
|
|
|
$
|
—
|
|
|
|
Current portion of long-term debt
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
Current portion of finance lease obligations
|
|
|
23
|
|
|
|
23
|
|
|
|
Accounts payable
|
|
|
20,149
|
|
|
|
16,662
|
|
|
|
Accrued compensation
|
|
|
9,745
|
|
|
|
7,991
|
|
|
|
Accrued expenses and other current liabilities
|
|
|
4,781
|
|
|
|
6,047
|
|
|
|
Customer deposits
|
|
|
26,079
|
|
|
|
25,644
|
|
|
|
Operating lease liabilities
|
|
|
972
|
|
|
|
1,057
|
|
|
|
Income taxes payable
|
|
|
8
|
|
|
|
—
|
|
|
|
Total current liabilities
|
|
|
66,257
|
|
|
|
59,424
|
|
|
|
Long-term debt
|
|
|
14,625
|
|
|
|
16,378
|
|
|
|
Finance lease obligations
|
|
|
—
|
|
|
|
11
|
|
|
|
Operating lease liabilities
|
|
|
7,103
|
|
|
|
7,460
|
|
|
|
Deferred income tax liability
|
|
|
104
|
|
|
|
62
|
|
|
|
Accrued pension and postretirement benefit liabilities
|
|
|
1,663
|
|
|
|
1,666
|
|
|
|
Other long-term liabilities
|
|
|
2,187
|
|
|
|
2,196
|
|
|
|
Total liabilities
|
|
|
91,939
|
|
|
|
87,197
|
|
|
|
Commitments and contingencies (Note
10)
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $1.00 par
value,
500 shares
authorized
|
|
|
—
|
|
|
|
—
|
|
|
|
Common stock, $0.10 par
value,
25,500 shares
authorized,
10,758 and
10,801 shares
issued and
10,611 and
10,636 shares
outstanding at September 30 and March 31, 2022,
respectively
|
|
|
1,076
|
|
|
|
1,080
|
|
|
|
Capital in excess of par value
|
|
|
27,849
|
|
|
|
27,770
|
|
|
|
Retained earnings
|
|
|
77,556
|
|
|
|
77,076
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(6,889
|
)
|
|
|
(6,471
|
)
|
|
|
Treasury stock (147 and
164 shares
at September 30 and March 31, 2022, respectively)
|
|
|
(2,626
|
)
|
|
|
(2,961
|
)
|
|
|
Total stockholders’ equity
|
|
|
96,966
|
|
|
|
96,494
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
188,905
|
|
|
$
|
183,691
|
|
|
See Notes to Condensed Consolidated Financial
Statements.
5
GRAHAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Operating activities:
|
|
(Dollar amounts in thousands)
|
|
|
Net income (loss)
|
|
$
|
480
|
|
|
$
|
(3,618
|
)
|
|
Adjustments to reconcile net income (loss) to net cash used by
operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,724
|
|
|
|
1,399
|
|
|
Amortization
|
|
|
1,238
|
|
|
|
1,009
|
|
|
Amortization of actuarial losses
|
|
|
336
|
|
|
|
455
|
|
|
Amortization of debt issuance costs
|
|
|
93
|
|
|
|
—
|
|
|
Equity-based compensation expense
|
|
|
312
|
|
|
|
330
|
|
|
Gain on disposal or sale of property, plant and
equipment
|
|
|
—
|
|
|
|
13
|
|
|
Change in fair value of contingent consideration
|
|
|
—
|
|
|
|
(1,900
|
)
|
|
Deferred income taxes
|
|
|
174
|
|
|
|
693
|
|
|
(Increase) decrease in operating assets:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
38
|
|
|
|
(2,289
|
)
|
|
Unbilled revenue
|
|
|
(5,283
|
)
|
|
|
(1,944
|
)
|
|
Inventories
|
|
|
(2,560
|
)
|
|
|
3,278
|
|
|
Prepaid expenses and other current and non-current
assets
|
|
|
(782
|
)
|
|
|
(1,233
|
)
|
|
Income taxes receivable
|
|
|
(136
|
)
|
|
|
(2,894
|
)
|
|
Operating lease assets
|
|
|
901
|
|
|
|
432
|
|
|
Prepaid pension asset
|
|
|
(325
|
)
|
|
|
(603
|
)
|
|
Increase (decrease) in operating liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
3,730
|
|
|
|
(4,477
|
)
|
|
Accrued compensation, accrued expenses and other current and
non-current
liabilities
|
|
|
553
|
|
|
|
779
|
|
|
Customer deposits
|
|
|
544
|
|
|
|
1,835
|
|
|
Operating lease liabilities
|
|
|
(840
|
)
|
|
|
(387
|
)
|
|
Long-term portion of accrued compensation, accrued pension
liability
and accrued postretirement benefits
|
|
|
(595
|
)
|
|
|
420
|
|
|
Net cash used by operating activities
|
|
|
(398
|
)
|
|
|
(8,702
|
)
|
|
Investing activities:
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(1,176
|
)
|
|
|
(1,227
|
)
|
|
Redemption of investments at maturity
|
|
|
—
|
|
|
|
5,500
|
|
|
Acquisition of Barber-Nichols, LLC
|
|
|
—
|
|
|
|
(59,563
|
)
|
|
Net cash used by investing activities
|
|
|
(1,176
|
)
|
|
|
(55,290
|
)
|
|
Financing activities:
|
|
|
|
|
|
|
|
Borrowings of short-term debt obligations
|
|
|
5,000
|
|
|
|
4,000
|
|
|
Principal repayments on debt
|
|
|
(3,511
|
)
|
|
|
(510
|
)
|
|
Proceeds from the issuance of debt
|
|
|
—
|
|
|
|
20,000
|
|
|
Repayments on lease financing obligations
|
|
|
(136
|
)
|
|
|
(91
|
)
|
|
Payment of debt issuance costs
|
|
|
(122
|
)
|
|
|
(150
|
)
|
|
Dividends paid
|
|
|
—
|
|
|
|
(2,353
|
)
|
|
Purchase of treasury stock
|
|
|
(22
|
)
|
|
|
(41
|
)
|
|
Net cash provided by financing activities
|
|
|
1,209
|
|
|
|
20,855
|
|
|
Effect of exchange rate changes on cash
|
|
|
(254
|
)
|
|
|
68
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(619
|
)
|
|
|
(43,069
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
14,741
|
|
|
|
59,532
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
14,122
|
|
|
$
|
16,463
|
|
See Notes to Condensed Consolidated Financial
Statements.
6
GRAHAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’
EQUITY
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Capital in
|
|
|
|
|
|
Accumulated
Other
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Par
|
|
|
Excess of
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Treasury
|
|
|
Stockholders'
|
|
|
|
|
Shares
|
|
|
Value
|
|
|
Par Value
|
|
|
Earnings
|
|
|
Loss
|
|
|
Stock
|
|
|
Equity
|
|
|
Balance at April 1, 2022
|
|
|
10,801
|
|
|
$
|
1,080
|
|
|
$
|
27,770
|
|
|
$
|
77,076
|
|
|
$
|
(6,471
|
)
|
|
$
|
(2,961
|
)
|
|
$
|
96,494
|
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
676
|
|
|
|
(212
|
)
|
|
|
|
|
|
464
|
|
|
Forfeiture of shares
|
|
|
(32
|
)
|
|
|
(3
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Recognition of equity-based
compensation expense
|
|
|
|
|
|
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|
|
(21
|
)
|
|
Balance at June 30, 2022
|
|
|
10,769
|
|
|
|
1,077
|
|
|
|
27,887
|
|
|
|
77,752
|
|
|
|
(6,683
|
)
|
|
|
(2,982
|
)
|
|
|
97,051
|
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
(196
|
)
|
|
|
(206
|
)
|
|
|
|
|
|
(402
|
)
|
|
Issuance of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Forfeiture of shares
|
|
|
(11
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Recognition of equity-based
compensation expense
|
|
|
|
|
|
|
|
|
198
|
|
|
|
|
|
|
|
|
|
|
|
|
198
|
|
|
Issuance of treasury stock
|
|
|
|
|
|
|
|
|
(237
|
)
|
|
|
|
|
|
|
|
|
356
|
|
|
|
119
|
|
|
Balance at September 30, 2022
|
|
|
10,758
|
|
|
$
|
1,076
|
|
|
$
|
27,849
|
|
|
$
|
77,556
|
|
|
$
|
(6,889
|
)
|
|
$
|
(2,626
|
)
|
|
$
|
96,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Capital in
|
|
|
|
|
|
Accumulated
Other
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Par
|
|
|
Excess of
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Treasury
|
|
|
Stockholders'
|
|
|
|
|
Shares
|
|
|
Value
|
|
|
Par Value
|
|
|
Earnings
|
|
|
Loss
|
|
|
Stock
|
|
|
Equity
|
|
|
Balance at April 1, 2021
|
|
|
10,748
|
|
|
$
|
1,075
|
|
|
$
|
27,272
|
|
|
$
|
89,372
|
|
|
$
|
(7,397
|
)
|
|
$
|
(12,393
|
)
|
|
$
|
97,929
|
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
(3,126
|
)
|
|
|
298
|
|
|
|
|
|
|
(2,828
|
)
|
|
Issuance of shares
|
|
|
135
|
|
|
|
13
|
|
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Forfeiture of shares
|
|
|
(9
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
(1,177
|
)
|
|
|
|
|
|
|
|
|
(1,177
|
)
|
|
Recognition of equity-based
compensation expense
|
|
|
|
|
|
|
|
|
353
|
|
|
|
|
|
|
|
|
|
|
|
|
353
|
|
|
Issuance of treasury stock
|
|
|
|
|
|
|
|
|
(194
|
)
|
|
|
|
|
|
|
|
|
9,158
|
|
|
|
8,964
|
|
|
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(41
|
)
|
|
|
(41
|
)
|
|
Balance at June 30, 2021
|
|
|
10,874
|
|
|
|
1,087
|
|
|
|
27,419
|
|
|
|
85,069
|
|
|
|
(7,099
|
)
|
|
|
(3,276
|
)
|
|
|
103,200
|
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
(492
|
)
|
|
|
216
|
|
|
|
|
|
|
(276
|
)
|
|
Issuance of shares
|
|
|
27
|
|
|
|
3
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Forfeiture of shares
|
|
|
(91
|
)
|
|
|
(9
|
)
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
(1,177
|
)
|
|
|
|
|
|
|
|
|
(1,177
|
)
|
|
Recognition of equity-based
compensation expense
|
|
|
|
|
|
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(23
|
)
|
|
Issuance of treasury stock
|
|
|
|
|
|
|
|
|
(63
|
)
|
|
|
|
|
|
|
|
|
191
|
|
|
|
128
|
|
|
Balance at September 30, 2021
|
|
|
10,810
|
|
|
$
|
1,081
|
|
|
$
|
27,339
|
|
|
$
|
83,400
|
|
|
$
|
(6,883
|
)
|
|
$
|
(3,085
|
)
|
|
$
|
101,852
|
|
See Notes to Condensed Consolidated Financial
Statements.
7