Graham Corporation · NYSE:GHM
Graham — Gabelli Aerospace & Defense Symposium 2022
9 slides from Graham's conference presentation, Sep 8, 2022
Slide 1: Gabelli Aerospace & Defense Symposium
Graham Corporation Gabelli Aerospace & Defense Symposium September 8, 2022 Daniel J. Thoren, President and Chief Executive Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer Matthew Malone, VP and General Manager of Barber-Nichols 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: Deepening Presence in Defense and Space Industry
Deepening Presence in Defense and Space Industry • Highly specialized propulsion and ejection systems for a variety of undersea defense applications • Customized, highly engineered surface condensers for Naval Nuclear Propulsion Program • Serving the private space exploration market; Leader in speci
Slide 4: Strong Visibility: Current Defense Programs and Pipeline
Strong Visibility: Current Defense Programs and Pipeline CVN Carrier SSN Virginia Class Subs SSBN Columbia Class Subs Content Condensers, ejectors, heat exchangers, pumps and regulators Value $40 to $50 million / carrier $30 to $40 million / sub $30 to $40 million / sub U.S. Navy strategic ship budg
Slide 5: 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 6: Growth Index
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 7: Long-term Goals: Expect High Single Digit Growth and Expanded Margins
Long-term Goals: Expect High Single Digit Growth and Expanded Margins Growth Drivers: Barber-Nichols opportunities, building legacy Navy business and steady commercial business Expect to deliver low double digit to mid-teens adjusted EBITDA margins¹ ~$200 $135-$150 $122.8 10%-15% $90.6 $97.5 5.6% 5.
Slide 8: 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 9: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended Year Ended June 30, March 31, 2022 2021 2022 2021 Net income (loss) $ 676 $ (3,126) $ (8,773) $ 2,374 Acquisition related inventory step-up expense - - 95 - Acquisition & integration costs 54 169 562 - Change in fair value