Slide 1: Supplemental Slides Fourth Quarter Fiscal 2011 Earnings Call
Supplemental Slides Fourth Quarter Fiscal 2011 Earnings Call PUTTING OUR BRAND TO WORK 1 NYSE Amex: GHM 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: Jim Lines, President and Chief Executive Officer
Jim Lines President and Chief Executive Officer PUTTING OUR BRAND TO WORK NYSE Amex: GHM
Slide 4: Highlights of 4Q FY2011
HIGHLIGHTS OF 4Q FY2011 BRAHAM Orders: Geographic and market diversity + $5 milion for nuclear power + $6 million for renewable and alternative energy + Two petroleum refinery projects + 50/50 domestic/international Sales: Sequential and comparable period growth + Energy Steel contributed $5.8 milio
Slide 5: Highlights of FY2011
5 Highlights of FY2011 *Adjusted EBITDA excluding $0.7 million of acquisition transaction expenses is 15.1%
Slide 6: Improving Economic Environment: Sales by Region and Market
Improving Economic Environment Sales by Region International sales at 55% of total 6 Sales by Market Oil Refining 35% Chemical Processing 22% Power 22% Other 21% FY2011 Revenue: $74.2million Revenue ($ in millions) Energy Steel: $5.8 million
Slide 7: Energy Steel Acquisition
ENERGY STEEL ACQUISITION tegration proceeding well FY 2011 Impact + $6.1 million in new orders + $5.8 million in sales + $8.4 million in backlog at 3/31 Nuclear Market Outlook: Post Fukushima Daiichi + Continued focus and opportunity in existing plants + Safety inspections and upgrades + Long-term o
Slide 8: FY 2012 Outlook and Guidance
FY 2012 Outlook and Guidance 8 8
Slide 9: Strategic Actions to Drive Growth
9 Strategic Actions to Drive Growth
Slide 10: Jeff Glajch, Vice President and Chief Financial Officer
Jeff Glajch Vice President and Chief Financial Officer PUTTING OUR BRAND TO WORK NYSE Amex: GHM
Slide 11: Strong Geographic and Industry Mix
Strong Geographic and Industry Mix 11 Emerging economies driving next cycle: Asia (China), Middle East, South America Sales rebounded after four-quarter trough Energy Steel acquisition adding to Graham's growth rate Quarterly Revenue International 55% U.S. 45% $74.2 million FY2011 Revenue $25.9
Slide 12: Recovering Order Trend and Strong Backlog
Recovering Order Trend and Strong Backlog *GHM won an order in Q3 FY10 from Northrup Grumman for a US Navy carrier program in excess of $25 million ** Energy Steel had $8.4 million in backlog at March 31, 2011. 12 Backlog (In millions) Quarterly Orders Annual Orders (In millions) (In millions)
Slide 13: Operational Review: Q4 FY2011
(CHART) (CHART) (CHART) Operational Review: Q4 FY2011 SG&A 13 Gross Margin Operating Margin ($ in millions) * Excludes $0.6 million in restructuring expenses **Excludes $0.1 million in restructuring expenses ***Excludes $0.7 million in transaction costs related to the acquisition of Energy Steel on
Slide 14: FY2011 Financial Review
FY2011 Financial Review 14 Estimates based on full year fiscal 2012 guidance of revenue between $95 and $105 million and gross margin between 29% and 32% Margins impacted by orders won in more competitive pricing environment At the peak of the next business cycle GHM expects margins in the mid- to-
Slide 15: Raised the Floor on Margins
(CHART) (CHART) ($ in millions) Previous Cycle: FY1993 to 2000* Current Cycle: FY2005 to Present * Data from FY1993 though FY2000 excludes discontinued operations. ** 1997 was a three-month transition year and is excluded from this comparison; 1996 reflects a 12-month period. Note: See supplemental
Slide 16: Strong Cash Position
($ in millions) Strong Cash Position Cash and Cash Equivalents No bank debt at 3/31/11 16 Cash available to continue growth from acquisitions Energy Steel: all cash $18 million acquisition
Slide 17: Supplemental Slides Fourth Quarter Fiscal 2011 Earnings Call
Supplemental Slides Fourth Quarter Fiscal 2011 Earnings Call PUTTING OUR BRAND TO WORK 17 NYSE Amex: GHM 17
Slide 18: EBITDA Reconciliation
EBITDA Reconciliation * Data from FY1993 though FY2000 excludes discontinued operations and is unaudited; 1997 was a three-month transition year and is excluded from this comparison; 1996 reflects a 12-month period. 18