- Revenue increased 19% to $53.6 million, driven by strength
across its markets
- Margin expansion fueled by sales growth and execution: Gross
margin improved 790 basis points to 23.9% of sales, net margin
increased 520 basis points to 6.1% of sales, and adjusted EBITDA1
margin expanded 550 basis points to 10.5% of sales
- Net income per diluted share was $0.30 in the second quarter;
adjusted net income per diluted share¹ was $0.31
- Strong orders of $63.7 million, driven by demand from defense,
space, and refining, resulted in a book-to-bill ratio of 1.2x and a
record backlog of $407 million1
- Strong balance sheet with no debt, $32.3 million in cash, and
access to $43 million under its revolving credit facility at
quarter end to support growth initiatives
- Raised full year guidance for gross margin and adjusted EBITDA¹
to reflect improved profitability
Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a
global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the
defense, space, energy, and process industries, today reported
financial results for its second quarter for the fiscal year ending
March 31, 2025 (“fiscal 2025”). Results for the quarter include the
P3 Technologies, LLC (“P3”) acquisition, which closed on November
9, 2023.
“Our team’s efforts to diversify and strengthen the business
over the past few years are clearly yielding results, as shown by
our record second-quarter performance,” commented Daniel J. Thoren,
President and Chief Executive Officer. “Strong sales growth in our
markets, along with exceptional execution throughout the business,
have driven meaningful margin expansion. Our strategic emphasis on
higher-margin opportunities and operational efficiencies has been a
key driver of this success.”
Mr. Thoren added, “We are also focused on recruiting and
retaining top talent, and have initiatives to enhance our supply
chain, which helps us to improve performance and manage our risk.
These initiatives, along with our strengthened balance sheet,
robust orders2, and growing backlog2, we believe positions us well
to sustain growth and profitability for the next several years.
Importantly, we have raised our full-year adjusted EBITDA guidance,
keeping us firmly on track to achieve our FY2027 target of low to
mid-teen adjusted EBITDA margins.”
Second Quarter Fiscal 2025 Performance Review
(All comparisons are with the same prior-year period unless
noted otherwise.)
($ in thousands except per share data)
Q2 FY25 Q2
FY24 $ Change % Change Net sales
$
53,563
$
45,076
$
8,487
19%
Gross profit
$
12,799
$
7,191
$
5,608
78%
Gross margin
23.9
%
16.0
%
+790 bps
Operating profit
$
4,235
$
803
$
3,432
427%
Operating margin
7.9
%
1.8
%
+610 bps
Net income
$
3,281
$
411
$
2,870
698%
Net income margin
6.1
%
0.9
%
+520 bps
Net income per diluted share
$
0.30
$
0.04
$
0.26
650%
Adjusted net income*
$
3,414
$
754
$
2,660
353%
Adjusted net income per diluted share*
$
0.31
$
0.07
$
0.24
343%
Adjusted EBITDA*
$
5,615
$
2,242
$
3,373
150%
Adjusted EBITDA margin*
10.5
%
5.0
%
+550 bps
*Graham believes that, when used in conjunction with measures
prepared in accordance with U.S. generally accepted accounting
principles, adjusted net income, adjusted net income per diluted
share, adjusted EBITDA and adjusted EBITDA margin, which are
non-GAAP measures, help in the understanding of its operating
performance. See attached tables and other information on pages 10
and 11 for important disclosures regarding Graham’s use of these
non-GAAP measures.
Record quarterly net sales of $53.6 million increased 19%, or
$8.5 million, and included $0.9 million of incremental sales from
P3. Sales to the defense market grew by $5.8 million, or 23%,
driven by the expansion of new defense programs, the ramp-up of
existing programs, and the timing of key project milestones.
Additionally, higher refining and chemical/petrochemical sales
contributed $2.2 million to the growth, largely reflecting the
timing of capital improvement projects. Aftermarket sales to the
refining, chemical/petrochemical, and defense markets of $9.8
million remained strong but were $1.5 million lower than the prior
year record levels. See supplemental data for a further breakdown
of sales by market and region.
Gross margin expanded 790 basis points to 23.9%, driven by the
leverage on higher volume, a favorable mix toward higher margin
projects, improved pricing, and better execution. Additionally,
gross profit for the quarter benefited $0.4 million, or
approximately 80 basis points, due to the $2.1 million grant from
the BlueForge Alliance. This grant is reimbursing the Company for
the cost of its defense welder training programs in Batavia and
related equipment. Graham expects to realize similar gross profit
benefits from the grant over the next two quarters, or for the
remainder of fiscal 2025.
Selling, general and administrative expense (“SG&A”),
including amortization, totaled $9.2 million, or 17.1% of sales, up
$2.8 million compared with the prior year. This increase reflects
the Company’s continued investments in its operations, employees,
and technology. Notable contributors to the increase included $0.4
million of incremental costs related to P3, $0.3 million increase
in the supplemental performance bonus for Barber-Nichols
employees2, $0.2 million for enterprise resource planning (“ERP”)
conversion costs at the Batavia facility, and $0.2 million of
incremental research and development expenses. The remainder of the
increase in SG&A was primarily related to increased costs
associated with the Company’s growth and various other
initiatives.
Included in other operating income for the second quarter of
fiscal 2025 was a $0.6 million reversal of a previously accrued
contingent earnout liability for P3. The reversal was not due to
any lost orders, but rather a delayed project that extended beyond
the earnout period.
Cash Management and Balance Sheet
Cash provided by operating activities totaled $22.6 million for
the six month period ending September 30, 2024, nearly double the
amount from the comparable period in fiscal 2024. As of September
30, 2024, cash and cash equivalents were $32.3 million, up from
$16.9 million at the end of fiscal 2024.
Capital expenditures of $6.5 million for the first six months of
fiscal 2025 were focused on capacity expansion and productivity
improvements. The Company increased its expected fiscal 2025
capital expenditures to be in the range of $13.0 million to $18.0
million from its previous expectations of $10.0 million to $15.0
million due to a land purchase in Arvada, CO, and plans to build a
liquid hydrogen and oxygen testing facility to support future
growth and customer needs.
The Company had no debt outstanding at September 30, 2024 with
$43 million available on its senior secured revolving credit
facility after taking into account outstanding letters of
credit.
Orders, Backlog, and Book-to-Bill Ratio
See supplemental data filed with the Securities and Exchange
Commission on Form 8-K and provided on the Company’s website for a
further breakdown of orders and backlog by market. See “Key
Performance Indicators” below for important disclosures regarding
Graham’s use of these metrics.
(in millions)
Q2 24 Q3 24 Q4 24
FY24 Q1 25 Q2 25 YTD
FY25 Orders
$
36.5
$
123.3
$
40.8
$
268.4
$
55.8
$
63.7
$
119.4
Backlog
$
313.3
$
399.2
$
390.9
$
390.9
$
396.8
$
407.0
$
407.0
Orders for the three-month period ended September 30, 2024, were
$63.7 million, resulting in a book-to-bill ratio of 1.2x. Defense
orders represented 48% of total orders and included a contract to
supply the MK19 air turbine pump for the torpedo ejection system on
the Columbia-class submarine. Space orders, which can fluctuate due
to the timing of projects, saw a meaningful increase to $13.5
million, which included a contract for the cryogenic recirculation
pump that provides thermal conditioning for upper stage engines on
launch vehicles in space. Refining orders totaled $10.6 million and
were driven by continued strength in aftermarket demand and the
timing of new capital projects.
Backlog at quarter end reached a record $407.0 million, up 30%
over the prior-year period and up 3% sequentially. Approximately
35% to 45% of orders currently in backlog are expected to be
converted to sales in the next twelve months and another 30% to 40%
is expected to convert to sales over the following year. The
majority of orders expected to convert beyond twelve months are for
the defense industry, specifically the U.S. Navy.
Fiscal 2025 Outlook
The Company’s outlook for 2025 was updated as follows:
(as of November 8, 2024)
Updated Fiscal 2025
Guidance
Previous Guidance
Net Sales
$200 million to $210 million
$200 million to $210 million
Gross Margin
23% to 24% of sales
22% to 23% of sales
SG&A expense (including
amortization)(1)
17.0% to 18.0% of sales
16.5% to 17.5% of sales
Adjusted EBITDA(2)
$18.0 million to $21.0 million
$16.5 million to $19.5 million
Effective Tax Rate
20% to 22%
20% to 22%
Capital Expenditures
$13.0 million to $18.0 million
$10.0 million to $15.0 million
(1)
Includes approximately $6.5 million to $7.5 million of BN
supplemental performance bonus, equity-based compensation, and ERP
conversion costs included in SG&A expense.
(2)
Excludes net interest expense, income taxes, depreciation, and
amortization from net income, as well as approximately $2.0 million
to $3.0 million of equity-based compensation and ERP conversion
costs included in SG&A expense and approximately $0.7 million
of acquisition and integration income, net.
Webcast and Conference Call
GHM’s management will host a conference call and live webcast on
November 8, 2024 at 11:00 a.m. Eastern Time (“ET”) to review its
financial results as well as its strategy and outlook. The review
will be accompanied by a slide presentation, which will be made
available immediately prior to the conference call on GHM’s
investor relations website.
A question-and-answer session will follow the formal
presentation. GHM’s conference call can be accessed by calling
(201) 689-8560. Alternatively, the webcast can be monitored from
the events section of GHM’s investor relations website.
A telephonic replay will be available from 3:00 p.m. ET today
through Friday, November 15, 2024. To listen to the archived call,
dial (412) 317-6671 and enter conference ID number 13749103 or
access the webcast replay via the Company’s website at
ir.grahamcorp.com, where a transcript will also be posted once
available.
About Graham Corporation
Graham is a global leader in the design and manufacture of
mission critical fluid, power, heat transfer and vacuum
technologies for the defense, space, energy, and process
industries. Graham Corporation and its family of global brands are
built upon world-renowned engineering expertise in vacuum and heat
transfer, cryogenic pumps, and turbomachinery technologies, as well
as its responsive and flexible service and the unsurpassed quality
customers have come to expect from the Company’s products and
systems. Graham Corporation routinely posts news and other
important information on its website, grahamcorp.com, where
additional information on Graham Corporation and its businesses can
be found.
Safe Harbor Regarding Forward Looking Statements
This news 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,”
“future,” “outlook,” “anticipates,” “believes,” “could,”
“guidance,” ”may”, “will,” “plan” 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, profitability of
future projects and the business, its ability to deliver to plan,
its ability to continue to strengthen relationships with customers
in the defense industry, its ability to secure future projects and
applications, expected expansion and growth opportunities,
anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA
margins, capital expenditures and SG&A expenses, the timing of
conversion of backlog to sales, orders, market presence, profit
margins, tax rates, foreign sales operations, customer preferences,
changes in market conditions in the industries in which it
operates, changes in general economic conditions and customer
behavior, forecasts regarding the timing and scope of the economic
recovery in its markets, and its acquisition and growth 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 Report filed
with the Securities and Exchange Commission (the “SEC”), included
under the heading entitled “Risk Factors”, and in other reports
filed with the SEC.
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 news release.
Non-GAAP Financial Measures
Adjusted EBITDA is defined as consolidated net income (loss)
before net interest expense, income taxes, depreciation,
amortization, other acquisition related expenses, and other
unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as
Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and
Adjusted EBITDA margin are not measures determined in accordance
with generally accepted accounting principles in the United States,
commonly known as GAAP. Nevertheless, Graham believes that
providing non-GAAP information, such as Adjusted EBITDA and
Adjusted EBITDA margin, is important for investors and other
readers of Graham's financial statements, as it is used as an
analytical indicator by Graham's management to better understand
operating performance. Moreover, Graham’s credit facility also
contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA
and Adjusted EBITDA margin are non-GAAP measures and are thus
susceptible to varying calculations, Adjusted EBITDA, and Adjusted
EBITDA margin, as presented, may not be directly comparable to
other similarly titled measures used by other companies.
Adjusted net income and adjusted net income per diluted share
are defined as net income and net income per diluted share as
reported, adjusted for certain items and at a normalized tax rate.
Adjusted net income and adjusted net income per diluted share are
not measures determined in accordance with GAAP, and may not be
comparable to the measures as used by other companies.
Nevertheless, Graham believes that providing non-GAAP information,
such as adjusted net income and adjusted net income per diluted
share, is important for investors and other readers of the
Company’s financial statements and assists in understanding the
comparison of the current quarter’s and current fiscal year's net
income and net income per diluted share to the historical periods'
net income and net income per diluted share. Graham also believes
that adjusted net income per share, which adds back intangible
amortization expense related to acquisitions, provides a better
representation of the cash earnings of the Company.
Forward-Looking Non-GAAP Measures
Forward-looking adjusted EBITDA and adjusted EBITDA margin are
non-GAAP measures. The Company is unable to present a quantitative
reconciliation of these forward-looking non-GAAP financial measures
to their most directly comparable forward-looking GAAP financial
measures because such information is not available, and management
cannot reliably predict the necessary components of such GAAP
measures without unreasonable effort largely because forecasting or
predicting our future operating results is subject to many factors
out of our control or not readily predictable. In addition, the
Company believes that such reconciliations would imply a degree of
precision that would be confusing or misleading to investors. The
unavailable information could have a significant impact on the
Company’s fiscal 2025 financial results. These non-GAAP financial
measures are preliminary estimates and are subject to risks and
uncertainties, including, among others, changes in connection with
purchase accounting, quarter-end, and year-end adjustments. Any
variation between the Company’s actual results and preliminary
financial estimates set forth above may be material.
Key Performance Indicators
In addition to the foregoing non-GAAP measures, management uses
the following key performance metrics to analyze and measure the
Company’s financial performance and results of operations: orders,
backlog, and book-to-bill ratio. Management uses orders and backlog
as measures of current and future business and financial
performance, and these may not be comparable with measures provided
by other companies. Orders represent written communications
received from customers requesting the Company to provide products
and/or services. Backlog is defined as the total dollar value of
net orders received for which revenue has not yet been recognized.
Management believes tracking orders and backlog are useful as they
often times are leading indicators of future performance. In
accordance with industry practice, contracts may include provisions
for cancellation, termination, or suspension at the discretion of
the customer.
The book-to-bill ratio is an operational measure that management
uses to track the growth prospects of the Company. The Company
calculates the book-to-bill ratio for a given period as net orders
divided by net sales.
Given that each of orders, backlog, and book-to-bill ratio are
operational measures and that the Company's methodology for
calculating orders, backlog and book-to-bill ratio does not meet
the definition of a non-GAAP measure, as that term is defined by
the U.S. Securities and Exchange Commission, a quantitative
reconciliation for each is not required or provided.
FINANCIAL TABLES FOLLOW.
Graham Corporation
Consolidated Statements of
Operations - Unaudited
(Amounts in thousands, except per
share data)
Three Months Ended Six Months Ended
September 30, September 30,
2024
2023
% Change
2024
2023
% Change Net sales
$
53,563
$
45,076
19%
$
103,514
$
92,645
12%
Cost of products sold
40,764
37,885
8%
78,347
74,477
5%
Gross profit
12,799
7,191
78%
25,167
18,168
39%
Gross margin
23.9
%
16.0
%
24.3
%
19.6
%
Operating expenses and income:
Selling, general and administrative
8,723
6,115
43%
17,561
13,134
34%
Selling, general and administrative – amortization
437
273
60%
873
547
60%
Other operating income
(596
)
-
NA
(726
)
-
NA
Operating profit
4,235
803
427%
7,459
4,487
66%
Operating margin
7.9
%
1.8
%
7.2
%
4.8
%
Other expense, net
91
94
(3%)
182
187
(3%)
Interest (income) expense, net
(153
)
55
NA
(314
)
240
NA
Income before provision for income taxes
4,297
654
557%
7,591
4,060
87%
Provision for income taxes
1,016
243
318%
1,344
1,009
33%
Net income
$
3,281
$
411
698%
$
6,247
$
3,051
105%
Per share data:
Basic:
Net income
$
0.30
$
0.04
650%
$
0.57
$
0.29
97%
Diluted:
Net income
$
0.30
$
0.04
650%
$
0.57
$
0.28
104%
Weighted average common shares outstanding: Basic
10,887
10,699
10,875
10,675
Diluted
11,024
10,810
10,995
10,761
NA: Not Applicable
Graham Corporation
Consolidated Balance Sheets –
Unaudited
(Amounts in thousands, except per
share data)
September 30, March 31,
2024
2024
Assets Current assets: Cash and cash equivalents
$
32,318
$
16,939
Trade accounts receivable, net of allowances ($56 and $79 at
September 30, and March 31, 2024, respectively)
29,083
44,400
Unbilled revenue
40,730
28,015
Inventories
31,536
33,410
Prepaid expenses and other current assets
4,414
3,561
Income taxes receivable
124
-
Total current assets
138,205
126,325
Property, plant and equipment, net
36,602
32,080
Prepaid pension asset
6,513
6,396
Operating lease assets
6,757
7,306
Goodwill
25,520
25,520
Customer relationships, net
13,729
14,299
Technology and technical know-how, net
10,688
11,065
Other intangible assets, net
7,019
7,181
Deferred income tax asset
2,883
2,983
Other assets
1,614
724
Total assets
$
249,530
$
233,879
Liabilities and stockholders’ equity Current
liabilities: Current portion of finance lease obligations
$
20
$
20
Accounts payable
21,887
20,788
Accrued compensation
13,097
16,800
Accrued expenses and other current liabilities
5,102
6,666
Customer deposits
86,483
71,987
Operating lease liabilities
1,142
1,237
Income taxes payable
77
715
Total current liabilities
127,808
118,213
Finance lease obligations
57
65
Operating lease liabilities
5,922
6,449
Accrued pension and postretirement benefit liabilities
1,258
1,254
Other long-term liabilities
2,011
2,332
Total liabilities
137,056
128,313
Stockholders’ equity: Preferred stock, $1.00 par
value, 500 shares authorized
-
-
Common stock, $0.10 par value, 25,500 shares authorized, 11,064 and
10,993 shares issued and 10,890 and 10,850 shares outstanding at
September 30 and March 31, 2024, respectively
1,106
1,099
Capital in excess of par value
33,120
32,015
Retained earnings
88,246
81,999
Accumulated other comprehensive loss
(6,610
)
(7,013
)
Treasury stock (174 and 143 shares at September 30, and March 31,
2024, respectively)
(3,388
)
(2,534
)
Total stockholders’ equity
112,474
105,566
Total liabilities and stockholders’ equity
$
249,530
$
233,879
Graham Corporation
Consolidated Statements of
Cash Flows – Unaudited
(Amounts in thousands)
Six Months Ended September 30,
2024
2023
Operating activities: Net income
$
6,247
$
3,051
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
1,721
1,549
Amortization
1,109
891
Amortization of unrecognized prior service cost and actuarial
losses
391
421
Amortization of debt issuance costs
-
119
Equity-based compensation expense
778
625
Change in fair value of contingent consideration
(726
)
-
Deferred income taxes
2
1,162
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable
15,387
(4,947
)
Unbilled revenue
(12,746
)
4,620
Inventories
1,886
(734
)
Prepaid expenses and other current and non-current assets
(1,738
)
(1,343
)
Income taxes receivable
(124
)
(489
)
Operating lease assets
643
589
Prepaid pension asset
(117
)
(144
)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable
1,505
(6,451
)
Accrued compensation, accrued expenses and other current and
non-current liabilities
(4,801
)
5
Customer deposits
14,485
13,503
Operating lease liabilities
(623
)
(529
)
Income taxes payable
(634
)
-
Long-term portion of accrued compensation, accrued pension
liability and accrued postretirement benefits
4
-
Net cash provided by operating activities
22,649
11,898
Investing activities: Purchase of property, plant and
equipment
(6,464
)
(3,312
)
Proceeds from disposal of property, plant and equipment
-
38
Acquisition of P3 Technologies, LLC
(170
)
-
Net cash used by investing activities
(6,634
)
(3,274
)
Financing activities: Principal repayments on debt
-
(1,020
)
Principal repayments on finance lease obligations
(157
)
(147
)
Issuance of common stock
334
225
Purchase of treasury stock
(854
)
(57
)
Net cash used by financing activities
(677
)
(999
)
Effect of exchange rate changes on cash
41
(82
)
Net increase in cash and cash equivalents
15,379
7,543
Cash and cash equivalents at beginning of period
16,939
18,257
Cash and cash equivalents at end of period
$
32,318
$
25,800
Graham Corporation
Adjusted EBITDA
Reconciliation
(Unaudited, $ in thousands)
Three Months Ended Six Months Ended
September 30, September 30,
2024
2023
2024
2023
Net income
$
3,281
$
411
$
6,247
$
3,051
Acquisition & integration income
(587
)
-
(680
)
-
ERP Implementation costs
205
-
547
-
Net interest (income) expense
(153
)
55
(314
)
240
Income tax expense
1,016
243
1,344
1,009
Equity-based compensation expense
434
332
778
625
Depreciation & amortization
1,419
1,201
2,830
2,440
Adjusted EBITDA(1)
$
5,615
$
2,242
$
10,752
$
7,365
Net sales
$
53,563
$
45,076
$
103,514
$
92,645
Net income margin
6.1
%
0.9
%
6.0
%
3.3
%
Adjusted EBITDA margin
10.5
%
5.0
%
10.4
%
7.9
%
(1) Beginning in the fourth quarter of fiscal 2024, Adjusted EBITDA
no longer excludes the Barber-Nichols supplemental performance
bonus, but now excludes the impact of non-cash equity-based
compensation expense in order to be more consistent with market
practice. Prior period results have been adjusted to reflect these
changes on a comparable basis. The Barber-Nichols supplemental
performance bonus expense was $1.1 million and $2.2 million for the
second quarter and first six months of fiscal 2025, respectively,
and $0.8 million and $1.6 million for the second quarter and first
six months of fiscal 2024, respectively, and will be completed at
the end of fiscal year 2026.
Graham Corporation
Adjusted Net Income
and
Adjusted Net Income per
Diluted Share Reconciliation
(Unaudited, $ in thousands,
except per share amounts)
Three Months Ended Six Months Ended
September 30, September 30,
2024
2023
2024
2023
Net income
$
3,281
$
411
$
6,247
$
3,051
Acquisition & integration income
(587
)
-
(680
)
-
Amortization of intangible assets
555
445
1,109
891
ERP Implementation costs
205
-
547
-
Normalized tax rate(1)
(40
)
(102
)
(224
)
(205
)
Adjusted net income(2)
$
3,414
$
754
$
6,999
$
3,737
GAAP net income per diluted share
$
0.30
$
0.04
$
0.57
$
0.28
Adjusted net income per diluted share(2)
$
0.31
$
0.07
$
0.64
$
0.35
Diluted weighted average common shares outstanding
11,024
10,810
10,995
10,761
(1) Applies a normalized tax rate to non-GAAP adjustments, which
are pre-tax, based upon the statutory tax rate. (2) Beginning in
the fourth quarter of fiscal 2024, Adjusted Net Income no longer
excludes the Barber-Nichols supplemental performance bonus. Prior
period results have been adjusted to reflect this change on a
comparable basis. The Barber-Nichols supplemental performance bonus
expense, net-of-tax, was $0.8 million and $1.7 million for the
second quarter and first six months of fiscal 2025, respectively,
and $0.6 million and $1.2 million for the second quarter and first
six months of fiscal 2024, respectively, and will be completed at
the end of fiscal year 2026.
Acquisition and Integration (Income) Costs are incremental costs
that are directly related to the P3 acquisition. These costs
(income) may include, among other things, professional, consulting
and other fees, system integration costs, and fair value
adjustments relating to contingent consideration. ERP
Implementation Costs relate to consulting costs incurred in
connection with the new ERP system being implemented throughout our
Batavia, N.Y. facility and are not expected to recur once the
project is completed.
___________________________
1Adjusted EBITDA margin, Adjusted Net Income per Diluted Share
and Adjusted EBITDA are non-GAAP measures. See attached tables and
other information on pages 10 and 11 for important disclosures
regarding Graham’s use of these non-GAAP measures. 2Orders, backlog
and book-to-bill ratio are key performance metrics. See “Key
Performance Indicators” below for important disclosures regarding
Graham’s use of these metrics. 3Supplemental performance bonus is
related to the 2021 acquisition of Barber Nichols, LLC. The
Barber-Nichols performance bonus expense will be completed at the
end of fiscal year 2026.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241108640700/en/
For more information: Christopher J. Thome Vice President
- Finance and CFO Phone: (585) 343-2216
Deborah K. Pawlowski / Craig P. Mychajluk Alliance Advisors IR
716-843-3908 / 716-843-3832 dpawlowski@allianceadvisors.com
cmychajluk@allianceadvisors.com
Graham (NYSE:GHM)
Historical Stock Chart
From Nov 2024 to Dec 2024
Graham (NYSE:GHM)
Historical Stock Chart
From Dec 2023 to Dec 2024
