Slide 1: Q1 FY2023 Teleconference
Graham Corporation Q1 FY2023 Teleconference July 29, 2022 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 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 FY23 Overview
Q1 FY23 Overview Demonstrating Successful Execution of Strategy; Back on Schedule with Navy Projects; ▪ Sales increased 79%, or $15.9 million from growth in all markets and full quarter of Barber-Nichols ($8.9 million incremental sales) ▪ Defense and space contributed 45% of sales ➢ Delivery of two,
Slide 4: Q1 FY23: Diversified Revenue Sources and Improving Execution
Q1 FY23: Diversified Revenue Sources and Improving Execution ($ in millions, except per share data) SALES DILUTED EPS AND ADJUSTED DILUTED EPS(1) $0.12 $0.06 $36.1 $20.2 ($0.28) ($0.31) Q1 FY22 Q1 FY23 6.7% Q1 FY22 Q1 FY23 Diluted EPS Adjusted Diluted EPS Sales increased $15.9 million, or 79% over Q
Slide 5: Financial Stability
Financial Stability ($ in millions) CAPITALIZATION ▪ $0.7 million cash used in operations for inventory June 30, March 31, and project timing 2022 2022 ▪ Debt down $1.3 million at quarter end Cash and cash equivalents $12.9 $14.7 ▪ In compliance with debt covenants; expect to be in Total debt 17.1 1
Slide 6: Strength and Breadth of Orders Across Both Segments
Strength and Breadth of Orders Across Both Segments ($ in millions) ORDERS TTM ORDERS : $163.4 MILLION Space $68.0 11% Other 13% Defense 44% Chem/ $45.6 $40.3 Petrochem… Refining $31.4 $11.3 17% $23.7 $20.9 $12.4 $2.8 $2.4 Orders – Represented By a Strong and Diversified Base $29.0 $22.4 $20.9 ▪ 1Q2
Slide 7: Strong Defense Backlog
Strong Defense Backlog ($ in millions) TOTAL BACKLOG (1) Q1 FY23 : BY INDUSTRY Chem/Petrochem 5% $272.6 Space 6% $256.5 $260.7 Other 4% $235.9 $233.2 Defense 74% Refining 11% $210.1 $193.2 $194.8 $188.5 $181.3 Breadth Provides Longer-Term Visibility $67.5 ▪ 40% - 50% expected to convert within 12 mo
Slide 8: Graham Fiscal 2023 Guidance
Graham Fiscal 2023 Guidance(1) Revenue: $135 million to $150 million Gross margin: 16% to 17% SG&A: 15% to 16% of sales Adjusted EBITDA(2): $6.5 million to $9.5 million, adjusted EBITDA margin(2) of approximately 5% to 6% (1) FY2023 guidance as of July 29, 2022 The revenue, gross margin, SG&A, adjus
Slide 9: Supplemental Information
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Slide 10: Adjusted EBITDA and Adjusted Diluted EPS Reconciliations
Adjusted EBITDA and Adjusted Diluted EPS Reconciliations (Unaudited, $ in thousands) Three Months Ended June 30, 2022 2021 Net (loss) income $ 676 $ (3,126) Acquisition & integration costs 54 169 Debt amendment costs 153 - Net interest expense (income) 157 22 Income taxes 215 (745) Depreciation & am
Slide 11: Adjusted Net Income and Adjusted Diluted EPS Reconciliations
Adjusted Net Income and Adjusted Diluted EPS Reconciliations (Unaudited, $ in thousands) Three Months Ended June 30, 2022 2021 Net income (loss) $ 676 $ (3,126) Acquisition & integration costs 54 169 Amortization of intangible assets 619 225 Debt amendment costs 153 - Normalize tax rate(1) (173) (75