EX-99 3 ex99-1fm8k205.txt EXHIBIT 99-1 - PRESS RELEASE November 18, 2004 Businesswire 1185 Avenue of the Americas, 3rd Floor New York, NY 10036 FROM: William A. Smith, Jr. ACCOUNT: Graham Corporation Smith Law Office, P.C. 20 Florence Avenue 7 State Street Batavia, NY 14020 Pittsford, NY 14534 ATT: Carole M. Anderson Please distribute the following press release on your National wire. Please send us by fax (585-343-1177) copies of Dow Jones, Reuters, and any other wire service reports of this release when you receive them. QUOTE FOR GRAHAM CORPORATION Company Contact: J. Ronald Hansen. Batavia, New York 14020 - Phone (585) 343-2216 PRESS RELEASE FOR IMMEDIATE RELEASE: November 18, 2004 GRAHAM CORPORATION ANNOUNCES RESULTS FOR SECOND QUARTER OF FISCAL YEAR ENDING MARCH 2005 (Dollar amounts in thousands except per share data) Batavia, N.Y. (November 18, 2004) -- Graham Corporation (GHM:ASE) announced today results for the second quarter of its current fiscal year. Sales for the quarter ended September 30, 2004 were $10,927, compared to $12,554 for the same quarter the previous year. Net income, which included a pre-tax gain of $1,592 from settlement of a lawsuit, was $381 or $.22 per diluted share, compared to $209 or $.13 per diluted share for the same quarter of the prior year. Sales for the first six months of the fiscal year (April - September 2004) were $20,843, compared to sales of $21,124 for the first six months of the previous fiscal year. Net loss for the six months was $596, compared to $496 net loss for the first six months of the previous fiscal year, which included a pre-tax gain of $522 for curtailment of a benefit plan for post-retirement medical coverage. Diluted loss per share for the first six months was $.36 versus $.30 loss per diluted share for the same period the previous year. Orders for the second quarter ended September 30, 2004 were $10,355 compared to $7,854 for the quarter ended September 30, 2003. Consolidated backlog on September 30, 2004 was $21,225. Backlog at September 30, 2003 stood at $15,707. Al Cadena, Graham's President and Chief Executive Officer said, "The market is showing signs of recovery. During the past six months inquiry levels have increased by 10% as compared to the same period a year ago. 2 New project start-ups are significantly higher than last year. We are seeing strong activity in the petroleum refining market as well as in petrochemicals and increased activity in the geothermal market." "Margins on product sales are increasing and it is clear that the last half of Graham's current fiscal year will see increased shipments. We are forecasting a profitable second half for the current fiscal year." Graham designs and builds vacuum and heat transfer equipment for process industries throughout the world. It is a worldwide leader in vacuum technology. The principal markets for Graham's equipment are the chemical, petrochemical, petroleum refining and electric power generating industries, including cogeneration and geothermal plants. Other markets served include metal refining, pulp and paper, shipbuilding, water heating, refrigeration, desalination, food processing, drugs, heating, ventilating and air conditioning. Graham's ejectors, liquid ring and dry vacuum pumps, condensers, heat exchangers and other products, sold either as components or as complete systems, are used by its customers to produce synthetic fibers, chemicals, petroleum products (including gasoline), electric power, processed food (including canned, frozen and dairy products), pharmaceutical products, paper, steel, fertilizers and numerous other products used every day by people throughout the world. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Graham's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. 3 GRAHAM CORPORATION SUMMARY OF CONSOLIDATED SALES AND EARNINGS (UNAUDITED) (In thousands except per share data)
Three Months Ended Six Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2004 2003 2004 2003 --------- --------- --------- --------- Net Sales $10,927 $12,554 $20,843 $21,124 Costs and Expenses 11,926 12,254 23,356 22,336 Other Income (1,592) (1,592) (522) ------- ------- ------- ------- Income (Loss) Before Income Taxes 593 300 (921) (690) Provision (Benefit) for Income Taxes 212 91 (325) (194) ------- ------- ------- ------- Net Income (Loss) $ 381 $ 209 $ (596) $ (496) ======= ======= ======= ======= Per Share Data Net Income (Loss) - Basic $0.23 $0.13 $(0.36) $(0.30) ===== ===== ====== ====== Diluted $0.22 $0.13 $(0.36) $(0.30) ===== ===== ====== ======
4 CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
(UNAUDITED) Sept. 30, March 31, 2004 2004 --------- --------- ASSETS Cash and cash equivalents $ 611 $ 467 Investments 3,098 5,296 Accounts Receivable 6,681 8,950 Inventories 8,147 6,984 Prepaid Expenses and Other Current Assets 3,004 2,710 ------- ------- Total Current Assets 21,541 24,407 Property, Plant & Equipment - Net 8,808 9,227 Other Assets 2,309 2,106 ------- ------- Total $32,658 $35,740 ======= ======= LIABILITIES & SHAREHOLDERS' EQUITY Short-Term Debt & Current Portion of Long-Term Debt $ 2,158 $ 1,969 Accounts Payable 3,124 3,230 Other Current Liabilities 5,016 7,556 ------- ------- Total Current Liabilities 10,298 12,755 Long-Term Debt 70 93 Deferred Liabilities 4,929 4,790 Shareholders' Equity 17,361 18,102 ------- ------- Total $32,658 $35,740 ======= =======
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