Graham Corporation · NYSE:GHM
Graham — Q4 FY2022 Earnings Presentation
13 slides from Graham's earnings presentation, Jun 9, 2022
Slide 1: Q4 FY2022 Teleconference
G ra h a m C o rp o ra ti o n Q4 FY2022 Teleconference June 9, 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
S afe 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: Q4/FY22 Overview
Q4/FY22 Overview A Tale Of Two Businesses Acquisition Drives Growth; Revenue was $39.7 Million in Q4 FY22 and $122.8 Million in FY22 Acquired Barber-Nichols (BN) - specialty fluid and power technologies for the defense and space industries - June 2021 Drove 4Q22 and FY22 revenue growth of 55% an
Slide 4: Corrective Actions Taken/Improvements
Corrective Actions Taken/Improvements Margins benefit from Improvements in Defense at Batavia Batavia Navy Operations Labor Plan vs. Actual Actions Taken (in thousands) Redirected internal resources, outsourced more contract welders and added skilled welders from training program 50 Project mana
Slide 5: Q4 FY22: Sequential Improvements
Q4 FY22: S equential Improvements ($ in millions, except per share data) Sales Diluted EPS and Adjusted Diluted EPS(1) $0.04 $0.04 $39.7 ($0.35) ($0.02) $28.8 $25.7 ($0.27) $(0.13) 6.7% Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Diluted EPS Adjusted Diluted EPS Gross Margin Adjusted EBITDA and
Slide 6: FY2022: Strategic Diversification into Defense
FY2022: Strategic Diversification into Defense ($ in millions, except per share data) Sales Adjusted EBITDA and Margin (1) $122.8 $5.1 $97.5 5.2% $(5.0) (4.1%) FY 2021 FY 2022 FY 2021 FY 2022 Sales increased 26% driven by defense industry Gross Margin Diluted EPS & Adjusted Diluted EPS (1) + $47.9 m
Slide 7: New Lending Agreement in Place
New Lending Agreement in Place CAPITALIZATION Cash flow from operations were $12.3 million ($ in millions) in fourth quarter FY22 March 31, December 31, 2022 2021 Paid down $10.4 million in debt in Q4 Cash and cash equivalents $14.7 $14.0 Capital expenditures of $2.3 million for the Total debt
Slide 8: Market Diversity Solidifies Long-Term Outlook
Market Diversity Solidifies Long-Term Outlook ($ in millions) Orders FY 2022 Orders : $143.9 million Space $68.0 7% Other 14% Defense 44% Chem/ Petrochem 15% $45.6 $31.4 Refining 20% $23.7 $20.9 $12.4 $2.8 $13.4 $2.4 Orders – Sequential Ebb and Flow $5.4 $22.4 $20.9 4Q22 defense orders down sequen
Slide 9: Strong Defense Backlog
Strong Defense Backlog ($ in millions) Total Backlog (1) FY 2022 Backlog : By Industry Space 4% Chem/Petrochem 5% $272.6 $256.5 Other 5% $235.9 $233.2 Refining 10% Defense $210.1 $137.6 $194.8 76% $188.5 $181.3 $104.1 Reducing Cyclicality with Increasing Defense Backlog 40% - 50% expected to conve
Slide 10: 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 June 8, 2022 The revenue, gross margin, SG&A, adjust
Slide 11: Supplemental Information
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Slide 12: Adjusted EBITDA and Adjusted Diluted EPS Reconciliation
Adjusted EBITDA and Adjusted Diluted EPS Reconciliation (Unaudited, $ in thousands) Three Mont hs Ended Year Ended March 31, March 31, 2022 2021 2022 2021 Net (loss) income $ (1,425) $ 388 $ (8,773) $ 2,374 Acquisition related inventory step-up expense 27 - 95 - Acquisition & integration costs 189 -
Slide 13: Adjusted Net Income and Adjusted Diluted EPS Reconciliations
Adjusted Net Income and Adjusted Diluted EPS Reconciliations (Unaudited, $ in thousands) Three M ont hs Ended Year Ended M arch 31, M arch 31, 2022 2021 2022 2021 Net (loss) income $ (1,425) $ 388 $ (8,773) $ 2,374 Acquisition related inventory step-up expense 27 - 95 - Acquisition & integration cos