Slide 1: BNI Acquisition Announcement and Q4FY2021 Teleconference
NYSE: GHM • June 1, 2021 BNI Acquisition Announcement and Q4FY2021 Teleconference James R. Lines Chief Executive Officer Jeffrey F. Glajch Vice President & Chief Financial Officer Dan Thoren President and Chief Operating Officer © 2021 Graham Corp. 1
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: BNI Announcement & FY2021 Results Agenda
BNI Announcement & FY2021 Results Agenda Financial BNI Introductions Results Acquisition Q4 FY2021 Strategic BNI Rationale and Announcement Deal Structure/ Financing FY 2021 Management About BNI Addition Outlook with Key BNI Takeaways © 2021 Graham Corp. 3
Slide 4: BNI Acquisition Validates Strategy
BNI Acquisition Validates Strategy Diversify Revenue Streams – Reduce Energy Cycle Impact • Execute Defense backlog; increase share of wallet • Focus on core installed base • Acquire new products for core and defense markets Expand TAM – Compete in Price Sensitive Markets • Adjust business to serve
Slide 5: Solid Execution for FY21
Solid Execution for FY21 • Q4 fiscal 2021 sales up 11% to $25.7 million – Defense industry sales up 16% to $6.5 million; contributed to record annual level of defense industry sales of $24.0 million in FY21 – Growth in refining sales to previously underserved markets • Net income of $0.4 million • $
Slide 6: Q4 FY 21: Growth in Defense and Refining Sales
Q4 FY 21: Growth in Defense and Refining Sales ($ in millions, except per share data) Sales Gross Profit and Margin $23.1 $25.7 $5.0 $4.4 19.4% 19.2% Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 EBITDA and Margin(1) Diluted EPS $0.9 $1.0 $0.06 $0.04 3.9% 4.0% Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 (1) See supplemental
Slide 7: FY2021: Record Defense Sales
FY2021: Record Defense Sales ($ in millions, except per share data) Sales Gross Profit and Margin $97.5 $90.6 $20.5 $18.1 20.0% 21.0% FY2020 FY2021 FY2020 FY2021 EBITDA and Margin(1) Diluted EPS $5.1 $3.0 $0.24 $0.19 3.3% 5.2% FY2020 FY2021 FY2020 FY2021 (1) See supplemental slide for EBITDA reconci
Slide 8: Orders and Backlog
Orders and Backlog (in millions) $61.8 ORDERS $52.3 Defense industry up $5.3 million to $5.4 million $32.6 $35.0 Refining industry up $2.2 million to $2.3 million $1.4 $20.1 $12.6 Chemical/petrochemical industry down $6.7 $15.1 $7.1 $12.3 $11.5 $13.4 million to $2.7 million $31.2 $22.4 $5.4 $1
Slide 9: FY22 Guidance
FY22 Guidance(1) Includes acquisition of BNI FY 22 Revenue and Adjusted EBITDA Guidance Revenue: $130 million to $140 million • Includes $45 million to $48 million for BNI Adjusted EBITDA: $7.0 million to $9.0 million Exciting start to FY 2022 Expanded defense industry platform with BNI acquisitio
Slide 10: Supplemental Information
NYSE: GHM • June 1, 2021 Supplemental Information © 2021 Graham Corp. 10
Slide 11: EBITDA Reconciliation
EBITDA Reconciliation (Unaudited) ($ in thousands) Three Months Ended Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Net income $ 388 $ 576 $ 2,374 $ 1,872 Net interest income (22) (241) (156) (1,312) Income taxes 184 76 893 440 Depreciation & amortization 487 489 1,945 1,968 EBITDA $ 1
Slide 12: BNI Acquisition Announcement and Q4FY2021 Teleconference
NYSE: GHM • June 1, 2021 BNI Acquisition Announcement and Q4FY2021 Teleconference © 2021 Graham Corp. 12