Graham Corporation · NYSE:GHM
Graham — Q1 FY2022 Earnings Presentation
12 slides from Graham's earnings presentation, Aug 10, 2021
Slide 1: Graham Corporation Q1 FY2022 Teleconference
GRAHAM CORPORATION Q1 FY2022 TELECONFERENCE NYSE: GHM • August 10, 2021 James R. Lines, Chief Executive Officer Daniel J. Thoren, President and Chief Operating Officer Jeffrey F. Glajch, Vice President & Chief Financial Officer © 2021 Graham Corp.
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 subject to risks, uncertainties and assumptions
Slide 3: Q1 FY22 Overview
Q1 FY22 Overview Transition toward growth and stronger margins Revenue of $20.2 million up 21%, driven by defense and refining industry sales Orders increased to $20.9 million including $11.4 million from the refining industry Backlog at quarter-end was $235.9 million • 80% of backlog was for the de
Slide 4: Slow Start to FY22; Continue to Expect Growth for Full Year
Slow Start to FY22; Continue to Expect Growth for Full Year ($ in millions, except per share data) Sales Adjusted EBITDA and Margin(1) $20.2 $16.7 (10.7%) (14.2%) ($1.8) ($2.9) Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Gross Profit and Margin GAAP and Adjusted Diluted EPS(1) • Sales increased 21% over easy co
Slide 5: Used Large Cash Reserves to Invest in Growth
Used Large Cash Reserves to Invest in Growth ($ in millions) CAPITALIZATION • Accretive acquisition expected to improve return on assets June 30, March 31, - Put cash to work to grow the business 2021 2021 - Invested $41.1 million of cash for acquisition Cash and cash equivalents and investments $ 1
Slide 6: Backlog Growth Driven by Defense
Backlog Growth Driven by Defense ($ in millions) Orders Q1 FY22 TTM Orders $61.8 Other 7% $131.1 million $52.3 $35.0 Refining $52.3 26% $12.6 Defense $20.9 56% $11.5 $13.4 $2.3 $22.4 $5.4 $18.3 $11.5 $9.5 $8.0 Chem/Petrochem 11% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Quarterly Net Orders (excl. Def
Slide 7: Building Opportunities on Two Primary Platforms
Building Opportunities on Two Primary Platforms Defense and Space Energy and Chemical/Petrochemical • Strong visibility into future naval programs • Expanding geographically and into more – ships and submarines price sensitive markets • Engaged in Space development programs • Expect petrochem to dec
Slide 8: Graham Fiscal 2022 Guidance Remains Unchanged
Graham Fiscal 2022 Guidance(1) Remains Unchanged Revenue: $130 million to $140 million • 45% to 50% anticipated to be associated with the defense industry • Inclusive of BN’s 10-month revenue contribution expected to be between $45 million to $48 million • Expect improvement sequentially by quarter
Slide 9: Transforming to Drive Value
Transforming to Drive Value Leveraging transformational acquisition to accelerate More efficient balance sheet growth in defense industry with capacity for additional acquisitions and financial flexibility to Preparing for refining invest in organic growth and petrochem upcycle expansion Strong oper
Slide 10: Supplemental Information
SUPPLEMENTAL INFORMATION © 2021 Graham Corp.
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended June 30, 2021 2020 Net (loss) $ (3,126) $ (1,818) Acquisition related inventory step-up expense - - Acquisition related costs 169 - Net interest expense (income) 22 (89) Income taxes (745) (372) Depreciation & amortization
Slide 12: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (Unaudited, $ in thousands) Three Months Ended June 30, 2021 2020 Net (loss) $ (3,126) $ (1,818) Acquisition related inventory step-up expense - - Acquisition related costs 169 - Amortization of intangible assets 225 - Normalize tax rate to 19%(1) (75) - Adjusted N