Graham Corporation · NYSE:GHM
Graham — Q2 2023 Earnings Presentation
11 slides from Graham's earnings presentation, Nov 7, 2022
Slide 1: Q2 FY2023 Teleconference
Graham Corporation Q2 FY2023 Teleconference November 7, 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: Q2 FY23 Overview
Q2 FY23 Overview (All comparisons are with the same prior-year period) Continued Execution of Strategy Revenue Record Orders Record Backlog $38.1M +12% $91.5M +192% $313.3M +34% Sales growth reflects solid demand in Space and Refining/Petrochemical Commercial Aftermarket Shipped an additional U.S. N
Slide 4: Diversified Revenue Sources and Improved Execution
Diversified Revenue Sources and Improved Execution ($ in millions, except per share data) SALES DILUTED EPS AND ADJUSTED DILUTED EPS(1) $38.1 $0.12 $36.1 $34.1 $0.06 $0.03 ($0.02) ($0.05) ($0.06) Q2 FY22 Q1 FY23 Q2 FY23 6.7% Q2 FY22 Q1 FY23 Q2 FY23 Diluted EPS Adjusted Diluted EPS Sales increased $4
Slide 5: Financial Stability
Financial Stability ($ in millions) CAPITALIZATION Net debt (debt minus cash and cash September 30, March 31, 2022 2022 equivalents) at quarter end was $5.0 million Cash and cash equivalents $14.1 $14.7 Continued compliance with debt covenants Total debt 19.1 18.4 • Expect to be in line with origina
Slide 6: Orders
Orders ($ in millions) ORDERS TTM ORDERS : $223.8 MILLION Space Other 9% $91.5 9% Chem/ Defense Petrochem 10% $68.0 58% Refining $69.6 14% $45.6 $40.3 $31.4 $11.3 $23.7 Strong and Diversified Base $12.5 $2.9 ▪ Q2 FY23 defense industry driven by repeat orders for critical $29.0 U.S. Navy programs $18
Slide 7: Backlog
Backlog ($ in millions) TOTAL BACKLOG (1) Q2 FY23 : BY INDUSTRY $313.3 Other 4% $272.6 $256.5 $260.7 Defense Space 4% 79% Chem/ $233.2 Petrochem… Refining 9% $248.7 $210.1 $194.8 $193.2 $181.3 Longer-Term Visibility ▪ Q2 FY23 backlog up 20% sequentially $62.5 $61.7 $67.5 $64.6 $51.9 ▪ 40% to 45% of
Slide 8: Graham Reaffirms Fiscal 2023 Guidance
Graham Reaffirms 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% Effective tax rate: 21% to 22% (1) FY2023 guidance as of November 7,
Slide 9: Supplemental Information
=G6HM SUPPLEMENTAL INFORMATION
Slide 10: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) $ (196) $ (492) $ 480 $ (3,618) Acquisition related inventory step-up expense - 41 - 41 Acquisition & integration costs - 93 54 262 Change
Slide 11: Adjusted Net Income and Adjusted Diluted EPS Reconciliation
Adjusted Net Income and Adjusted Diluted EPS Reconciliation (Unaudited, $ in thousands) Non-GAAP Financial Measure: Adjusted net income (loss) and adjusted diluted EPS are defined as net income (loss) and diluted EPS as reported, adjusted for certain items and at a normalized tax rate. Adjusted net