Graham Corporation · NYSE:GHM
Graham — Gabelli Funds 33rd Annual Pump, Valve, and Water Symposium (February 2023)
16 slides from Graham's conference presentation, Feb 23, 2023
Slide 1: Gabelli Funds 33rd Annual Pump, Valve, and Water Symposium
Graham Corporation Gabelli Funds 33rd Annual Pump, Valve, and Water Symposium February 23, 2023 Daniel J. Thoren, President and Chief Executive Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer www.GrahamCorp.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Regarding Forward Looking Statements This presentation 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
Slide 3: Critical Equipment Supplier for Defense, Space, Energy & Process Industries
Critical Equipment Supplier for Defense, Space, Energy & Process Industries Our Mission: Build Better Companies to Deliver Superior Performance How We Do It: Our People Our Culture Our Structure Our Process Locations: Batavia, NY; Arvada, CO; Products: Condensers, ejectors, heat Ahmedabad, India; Su
Slide 4: Corporate Strategies and Initiatives
Corporate Strategies and Initiatives Build better companies through environment assessment, strategic evaluation, best business practices and smart investments Leverage board and industry connections to comprehend and shape an environment advantageous to our companies and stakeholders Advance strate
Slide 5: A Different Company Today → Expect More Positive Change
A Different Company Today → Expect More Positive Change Great promise bringing our heat transfer and vacuum technology business together with our new fluid and power business gained through the Barber-Nichols acquisition Platform and strategic • Reduced dependence on highly cyclical energy and petro
Slide 6: U.S. Navy Program Provides Long-term Stability and Visibility
U.S. Navy Program Provides Long-term Stability and Visibility • Long-term U.S. Navy contracts drive visibility and Secured Contracts recurring revenue Advantage over • Sole supplier with high barriers to entry Competition • Improved efficiencies, execution, and supply chain Margin Expansion manageme
Slide 7: Growth Potential of U.S. Navy Projects
Growth Potential of U.S. Navy Projects Build Timeline¹ GHM Future Build Plan¹ (based on current plan) Revenue Potential2 2 Completed 1 every 2 Under Construction $40M - $50M/Ship four years ~$400M ~$1.0 - 8 Remaining Expected completion by FY2055 CVN Ford Class Carrier 22 Completed 2 per year ~$300M
Slide 8: Large Energy & Petrochemical Installed Base and New Energy Opportunity
Large Energy & Petrochemical Installed Base and New Energy Opportunity • Leveraging installed base with improved lead management process; Domestic aftermarket budgets returning after industry and pandemic downturn • Expanding international presence into more price sensitive markets • Implemented Per
Slide 9: Growth Businesses with Strategies for Expanding Margins
Visual: Growth Businesses with Strategies for Expanding Margins Graham Positioning Higher “New” BN Energy Space Growth Index BN DoD Operational Graham BN improvements Graham Navy Rebuilds Aftermarket Energy + Petchem. Global Energy Global Upcycle GDP Lower competition Lower Differentiation + Higher
Slide 10: Demonstrating Steady Progress Through Solid Execution
Demonstrating Steady Progress Through Solid Execution ($ in millions, except per share data) SALES ADJUSTED EBITDA AND MARGIN(1) $39.7 $39.9 $2.7 $38.1 $2.2 $36.1 $1.5 $28.8 $0.4 1.0% 7.6% 4.0% 5.6% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 (9.0%) Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ($2.6) GROSS M
Slide 11: Diversified Revenue Base & Strong Defense Backlog
Diversified Revenue Base & Strong Defense Backlog TOTAL BACKLOG (1) BACKLOG BY INDUSTRY ($ in millions) $313.3 Other 3% $293.7 $272.6 Defense Space 4% $256.5 $260.7 80% Chem/ Petrochem 4% Refining 9% $248.7 $234.5 $210.1 $194.8 $193.2 TTM ORDERS : $175.5 MILLION Space 10% Other… $62.5 $61.7 $67.5 $6
Slide 12: Fiscal 2023 Outlook Updated – On Track to Reach 2027 Goals
Fiscal 2023 Outlook Updated(1) – On Track to Reach 2027 Goals 2027 Strategic Goals: Revenue: $145 million to $155 million • $200 million in revenue, and Gross margin: ~16% • 10% to 15% in Adjusted EBITDA SG&A: ~15% of sales Margin Adjusted EBITDA(2): $7.5 million to $8.5 million Effective tax rate:
Slide 13: For More Information
Graham Corporation For More Information: Christopher J. Thome Deborah K. Pawlowski Vice President - Finance, CFO and CAO Kei Advisors LLC Phone: (585) 343-2216 Phone: (716) 843-3908 dpawlowski@keiadvisors.com www.GrahamCorp.com
Slide 14: Supplemental Information
=G6HM Supplemental Information
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended Nine Months Ended December 31, December 31, 2022 2021 2022 2021 Net income (loss) $ 368 $ (3,730) $ 848 $ (7,348) Acquisition related inventory step-up expense - 27 - 68 Acquisition & integration costs - 111 54 373 Change
Slide 16: Adjusted Net Income and Adjusted Diluted EPS Reconciliation
Adjusted Net Income and Adjusted Diluted EPS Reconciliation (Unaudited, $ in thousands) Three Months Ended Nine Months Ended December 31, December 31, 2022 2021 2022 2021 Net income (loss) $ 368 $ (3,730) $ 848 $ (7,348) Acquisition related inventory step-up expense - 27 - 68 Acquisition & integrati
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