Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2025 Results
-
Fourth quarter 2025 results reflect continued strength in the business
-
Revenue grew
21% to$59.3 million -
Gross margin expanded 110 basis points to
27.0% and achieved operating margin of9.3% compared to3.1% in the prior-year period -
Net Income was
$4.4 million $4.8 million $7.7 million 12.9% of sales
-
Revenue grew
-
Fiscal 2025 results demonstrate strong execution on Graham’s long-term strategic plan
-
Sales growth of
13% driven by Defense projects and Space demand -
Gross Margin Expanded 330 Basis Points to
25.2% -
Net Income was
$12.2 million $4.6 million $22.4 million 10.7% of sales -
Received full year orders2 of
$231.1 million -
Record Backlog of
$412.3 million
-
Sales growth of
-
Initiated fiscal 2026 guidance with revenue of
$225 million $235 million 10% at Mid-Point over fiscal 2025 with Adjusted EBITDA1 in the range of$22 million $28 million 12% at the mid-point over fiscal 2025
“We closed fiscal 2025 with strong momentum, as our fourth quarter results reflected solid execution and sustained demand across our diversified product portfolio,” said Daniel J. Thoren, Chief Executive Officer. “We continue to advance projects with an expected
Mr. Thoren continued, “Looking ahead to fiscal 2026, we are well-positioned to achieve our long-term growth and profitability targets and are strategically looking to invest in key organic and inorganic growth opportunities.”
Management Transition
As previously announced on February 6, 2025, Graham began a planned management transition aligned with its succession strategy. Effective June 10, 2025, Chief Executive Officer Daniel J. Thoren will transition to Executive Chairman and Strategic Advisor. Matt
Jonathan W. Painter, Chairman of the Board, will transition to Lead Independent Director. Additionally, Michael E. Dixon, promoted to General Manager of Barber-
“It has been a career highlight and honor to lead Graham Corporation over the last four years and I want to thank our Board and each one of our employees for their commitment and belief in our mission to build better companies, supply mission critical equipment to our customers, and deliver superior performance to our investors,” said Mr. Thoren. “The company is well positioned to achieve its 2027 goals we set in 2022, and I have every confidence in Matt to lead the company to even greater achievements beyond that.”
| 1 Adjusted net income, Adjusted EBITDA and ROIC are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures. |
| 2 Orders, backlog and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics. |
Fourth Quarter Fiscal 2025 Performance Review (All comparisons are with the same prior-year period unless noted otherwise.) |
|||||||||||||
($ in thousands except per share data) |
Q4 FY25 |
|
Q4 FY24 |
|
$ Change |
|
% Change |
||||||
Net sales |
$ |
59,345 |
|
$ |
49,070 |
|
$ |
10,275 |
|
||||
Gross profit |
$ |
16,008 |
|
|
$ |
12,694 |
|
|
$ |
3,314 |
|
|
|
Gross margin |
|
27.0 |
% |
|
|
25.9 |
% |
|
|
|
+110 bps |
||
Operating profit |
$ |
5,519 |
|
|
$ |
1,524 |
|
|
$ |
3,995 |
|
|
|
Operating margin |
|
9.3 |
% |
|
|
3.1 |
% |
|
|
|
+620 bps |
||
Net income |
$ |
4,395 |
|
|
$ |
1,340 |
|
|
$ |
3,055 |
|
|
|
Net income margin |
|
7.4 |
% |
|
|
2.7 |
% |
|
|
|
+470 bps |
||
Net income per diluted share |
$ |
0.40 |
|
|
$ |
0.12 |
|
|
$ |
0.28 |
|
|
|
Adjusted net income* |
$ |
4,752 |
|
$ |
1,608 |
|
$ |
3,144 |
|
||||
Adjusted net income per diluted share* |
$ |
0.43 |
|
|
$ |
0.15 |
|
|
$ |
0.28 |
|
|
|
Adjusted EBITDA* |
$ |
7,650 |
|
$ |
2,955 |
|
$ |
4,695 |
|
||||
Adjusted EBITDA margin* |
|
12.9 |
% |
|
|
6.0 |
% |
|
|
|
+690 bps |
||
*Graham believes that, when used in conjunction with measures prepared in accordance with
We have updated our end market disclosures to better align with how management evaluates the business and product portfolio. As part of this change, revenue previously classified as Refining, Chemical/Petrochemical, and Other, which included New Energy product sales, will now be consolidated into one market, which has been renamed “Energy & Process.” The Defense and Space end market classifications remain unchanged. Prior period amounts have been updated to reflect this change.
Quarterly net sales of
Gross profit for the quarter increased
Selling, general and administrative expense (“SG&A”), including amortization, totaled
Full Year Fiscal 2025 Performance Review (All comparisons are with the same prior-year period unless noted otherwise.) |
||||||||||||||
($ in thousands except per share data) |
|
FY 2025 |
|
FY 2024 |
|
Change |
% Change |
|||||||
Net sales |
|
$ |
209,896 |
|
$ |
185,533 |
|
$ |
24,363 |
|
||||
Gross profit |
|
$ |
52,861 |
|
|
$ |
40,585 |
|
|
$ |
12,276 |
|
||
Gross margin |
|
|
25.2 |
% |
|
|
21.9 |
% |
|
|
+330 bps |
|||
Operating profit |
|
$ |
15,188 |
|
|
$ |
6,922 |
|
|
$ |
8,266 |
|
||
Operating margin |
|
|
7.2 |
% |
|
|
3.7 |
% |
|
|
+350 bps |
|||
Net income |
|
$ |
12,230 |
|
|
$ |
4,556 |
|
|
$ |
7,674 |
|
||
Net income margin |
|
|
5.8 |
% |
|
|
2.5 |
% |
|
|
|
+330 bps |
||
Net income per diluted share |
|
$ |
1.11 |
|
|
$ |
0.42 |
|
|
$ |
0.69 |
|
|
|
Adjusted net income* |
$ |
13,716 |
|
$ |
6,796 |
|
$ |
6,920 |
|
|||||
Adjusted net income per diluted share* |
|
$ |
1.24 |
|
|
$ |
0.63 |
|
|
$ |
0.61 |
|
|
|
Adjusted EBITDA* |
$ |
22,429 |
|
$ |
13,285 |
|
$ |
9,144 |
|
|||||
Adjusted EBITDA margin* |
|
|
10.7 |
% |
|
|
7.2 |
% |
|
|
|
+350 bps |
||
*Graham believes that, when used in conjunction with measures prepared in accordance with
Net sales of
Gross profit for the year increased
SG&A, including amortization, totaled
Cash Management and Balance Sheet
Cash provided by operating activities totaled
Capital expenditures for fiscal 2025 were
The Company had no debt outstanding March 31, 2025 with
Orders, Backlog, and Book-to-Bill Ratio
See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics ($ in millions).
|
Q4 24 |
FY24 |
Q1 25 |
Q2 25 |
Q3 25 |
Q4 25 |
FY25 |
|||||||||||||
Orders |
$ |
40.8 |
$ |
268.4 |
$ |
55.8 |
$ |
63.7 |
$ |
24.8 |
$ |
86.9 |
$ |
231.1 |
||||||
Backlog |
$ |
390.9 |
$ |
390.9 |
$ |
396.8 |
$ |
407.0 |
$ |
384.7 |
$ |
412.3 |
$ |
412.3 |
||||||
Orders for the fourth quarter of fiscal 2025 increased to
For fiscal 2025, orders decreased to
Orders tend to be lumpy given the nature of our business (i.e. large capital projects) and in particular, orders to the Defense industry, which span multiple years and can be significantly larger in size. Book-to-bill for fiscal 2025 was 1.1x.
Backlog as of March 31, 2025, was
Fiscal 2026 Outlook
“I am pleased to announce our fiscal 2026 outlook, which reflects the continued momentum in our business and the initial impacts of the strategic investments we have made. The Company is deploying capital to support our organic and inorganic growth initiatives, while making strategic improvements to enhance our operations and drive margin expansion, which is being enabled by our strong balance sheet. The outlook we are providing reflects the expected impact of tariffs on our fiscal 2026 results, which we estimate to be approximately
(as of June 9, 2025) |
Fiscal 2026 Guidance |
Net Sales |
|
Gross Margin(1) |
|
SG&A expense (including amortization)(2) |
|
Adjusted EBITDA(1)(3) |
|
Effective Tax Rate |
|
Capital Expenditures |
|
(1) |
Includes the estimated impact of increased tariffs over the prior year of approximately |
|
(2) |
Includes approximately |
|
(3) |
Excludes net interest expense (income), income taxes, depreciation, and amortization from net income, as well as approximately |
Our expectations for sales and profitability assumes that we will be able to operate our production facilities at planned capacity, have access to our global supply chain including our subcontractors, do not experience any global disruptions, and experience no impact from any other unforeseen events.
Webcast and Conference Call
GHM’s management will host a conference call and live webcast on June 9, 2025 at 11:00 a.m. Eastern Time (“ET”) to review its financial results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website.
A question-and-answer session will follow the formal presentation. GHM’s conference call can be accessed by calling (201) 689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website.
A telephonic replay will be available from 3:00 p.m. ET today through Monday, June 16, 2025. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13753289 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.
About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the Defense, Energy & Process, and Space industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release 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 and are identified by words such as “continue,” “expects,” “future,” “goal,” “outlook,” “anticipates,” “believes,” “could,” “guidance,” ”may”, “will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the Defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
Non-GAAP Financial Measures
Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in
Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year's net income and net income per diluted share to the historical periods' net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company.
ROIC is defined as a return on invested capital and is calculated by dividing net operating profit after taxes by the total invested capital. ROIC is not a measure determined in accordance with GAAP. Nevertheless, Graham believes that providing ROIC is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand profitability and efficiency of use of capital for certain projects. Because ROIC is a non-GAAP measure and is thus susceptible to varying calculations, ROIC, as presented, may not be directly comparable to other similarly titled measures used by other companies.
Forward-Looking Non-GAAP Measures
Forward-looking ROIC, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2025 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material.
Key Performance Indicators
In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Management believes tracking orders and backlog are useful as they often times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.
The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales.
Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company's methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a non-GAAP measure, as that term is defined by the
Consolidated Statements of Operations - Unaudited ($ in thousands, except per share data) |
||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||
March 31, |
March 31, |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
2025 |
|
|
2024 |
|
%
|
|
|
2025 |
|
|
2024 |
|
%
|
|||||
Net sales |
$ |
59,345 |
|
$ |
49,070 |
|
|
|
$ |
209,896 |
|
|
$ |
185,533 |
|
|
||||
Cost of products sold |
|
43,337 |
|
|
36,376 |
|
|
|
|
157,035 |
|
|
|
144,948 |
|
|
||||
Gross profit |
|
16,008 |
|
|
12,694 |
|
|
|
|
52,861 |
|
|
|
40,585 |
|
|
||||
Gross margin |
|
27.0 |
% |
|
25.9 |
% |
|
|
|
|
25.2 |
% |
|
|
21.9 |
% |
|
|||
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses and income: |
|
|
|
|
|
|
|
|||||||||||||
Selling, general and administrative |
|
10,322 |
|
|
10,654 |
|
( |
|
|
37,143 |
|
|
|
32,217 |
|
|
||||
Selling, general and administrative – amortization |
|
436 |
|
|
436 |
|
|
|
|
1,745 |
|
|
|
1,366 |
|
|
||||
Other operating (income) expense, net |
|
(269 |
) |
|
80 |
|
NA |
|
|
(1,215 |
) |
|
|
80 |
|
NA |
||||
Operating profit |
|
5,519 |
|
|
1,524 |
|
|
|
|
15,188 |
|
|
|
6,922 |
|
|
||||
Operating margin |
|
9.3 |
% |
|
3.1 |
% |
|
|
|
|
7.2 |
% |
|
|
3.7 |
% |
|
|||
|
|
|
|
|
|
|
|
|||||||||||||
Loss on extinguishment of debt |
|
- |
|
|
- |
|
NA |
|
|
- |
|
|
|
726 |
|
NA |
||||
Other expense, net |
|
91 |
|
|
94 |
|
( |
|
|
364 |
|
|
|
374 |
|
NA |
||||
Interest (income) expense, net |
|
(141 |
) |
|
(29 |
) |
|
|
|
(583 |
) |
|
|
248 |
|
NA |
||||
Income before provision for income taxes |
|
5,569 |
|
|
1,459 |
|
|
|
|
15,407 |
|
|
5,574 |
|
|
|||||
Provision for income taxes |
|
1,174 |
|
|
119 |
|
|
|
|
3,177 |
|
|
|
1,018 |
|
|
||||
Net income |
$ |
4,395 |
|
$ |
1,340 |
|
|
|
$ |
12,230 |
|
|
$ |
4,556 |
|
|
||||
|
|
|
|
|
|
|
|
|||||||||||||
Per share data: |
|
|
|
|
|
|
|
|||||||||||||
Basic: |
|
|
|
|
|
|
|
|||||||||||||
Net income |
$ |
0.40 |
|
$ |
0.12 |
|
|
|
$ |
1.12 |
|
$ |
0.42 |
|
|
|||||
Diluted: |
|
|
|
|
||||||||||||||||
Net income |
$ |
0.40 |
|
$ |
0.12 |
|
|
|
$ |
1.11 |
|
$ |
0.42 |
|
|
|||||
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
||||||||||||||
Basic |
|
10,898 |
|
|
10,844 |
|
|
|
|
10,884 |
|
|
|
10,743 |
|
|
||||
Diluted |
|
11,115 |
|
|
10,988 |
|
|
|
|
11,066 |
|
|
|
10,844 |
|
|
||||
NA: Not Applicable |
||||||||||||||||||||
Consolidated Balance Sheets (Amounts in thousands, except per share data) |
|||||||
|
March 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Assets |
|
||||||
Current assets: |
|
||||||
Cash and cash equivalents |
$ |
21,577 |
|
|
$ |
16,939 |
|
Trade accounts receivable, net of allowances ( |
|
35,507 |
|
|
|
44,400 |
|
Unbilled revenue |
|
38,494 |
|
|
|
28,015 |
|
Inventories |
|
40,025 |
|
|
|
33,410 |
|
Prepaid expenses and other current assets |
|
4,249 |
|
|
|
3,561 |
|
Income taxes receivable |
|
1,520 |
|
|
|
- |
|
Total current assets |
|
141,372 |
|
|
|
126,325 |
|
Property, plant and equipment, net. |
|
50,649 |
|
|
|
32,080 |
|
Prepaid pension asset |
|
5,950 |
|
|
|
6,396 |
|
Operating lease assets |
|
6,386 |
|
|
|
7,306 |
|
Goodwill |
|
25,520 |
|
|
|
25,520 |
|
Customer relationships, net |
|
13,159 |
|
|
14,299 |
|
|
Technology and technical know-how, net |
|
10,310 |
|
|
11,065 |
|
|
Other intangible assets, net |
|
6,858 |
|
|
|
7,181 |
|
Deferred income tax asset |
|
1,502 |
|
|
|
2,983 |
|
Other assets |
|
2,404 |
|
|
724 |
|
|
Total assets |
$ |
264,110 |
|
$ |
233,879 |
|
|
|
|
||||||
Liabilities and stockholders’ equity |
|
||||||
Current liabilities: |
|
||||||
Current portion of finance lease obligations |
$ |
21 |
|
|
$ |
20 |
|
Accounts payable |
|
27,309 |
|
|
|
20,788 |
|
Accrued compensation |
|
19,161 |
|
|
|
16,800 |
|
Accrued expenses and other current liabilities |
|
4,322 |
|
|
|
6,666 |
|
Customer deposits |
|
84,062 |
|
|
71,987 |
|
|
Operating lease liabilities |
|
1,275 |
|
|
1,237 |
|
|
Income taxes payable |
|
- |
|
|
|
715 |
|
Total current liabilities |
|
136,150 |
|
|
|
118,213 |
|
Finance lease obligations |
|
44 |
|
|
|
65 |
|
Operating lease liabilities |
|
5,514 |
|
|
|
6,449 |
|
Accrued pension and postretirement benefit liabilities |
|
1,192 |
|
|
|
1,254 |
|
Other long-term liabilities |
|
1,633 |
|
|
|
2,332 |
|
Total liabilities |
|
144,533 |
|
|
128,313 |
|
|
|
|
||||||
Stockholders’ equity: |
|
||||||
Preferred stock, |
|
- |
|
|
|
- |
|
Common stock, |
|
||||||
11,077 and 10,993 shares issued and 10,903 and 10,850 shares |
|
||||||
outstanding at March 31, 2025 and 2024, respectively |
|
1,107 |
|
|
|
1,099 |
|
Capital in excess of par value |
|
34,616 |
|
|
|
32,015 |
|
Retained earnings |
|
94,229 |
|
|
|
81,999 |
|
Accumulated other comprehensive loss |
|
(6,987 |
) |
|
|
(7,013 |
) |
Treasury stock (174 and 143 shares at March 31, 2025 and 2024, respectively) |
|
(3,388 |
) |
|
|
(2,534 |
) |
Total stockholders’ equity |
|
119,577 |
|
|
105,566 |
|
|
Total liabilities and stockholders’ equity |
$ |
264,110 |
|
$ |
233,879 |
|
|
Consolidated Statements of Cash Flows (Amounts in thousands) |
||||||||
|
|
Year Ended |
||||||
|
|
March 31, |
||||||
|
|
|
2025 |
|
|
2024 |
|
|
Operating activities: |
|
|
||||||
Net income |
|
$ |
12,230 |
|
$ |
4,556 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
Depreciation |
|
|
3,718 |
|
|
|
3,275 |
|
Amortization |
|
|
2,218 |
|
|
|
2,157 |
|
Virgin Orbit and other bad debt reserves |
|
|
829 |
|
|
|
95 |
|
Amortization of unrecognized prior service cost and actuarial losses |
|
|
781 |
|
|
|
843 |
|
Amortization of debt issuance costs |
|
|
- |
|
|
|
131 |
|
Equity-based compensation expense |
|
|
1,957 |
|
|
|
1,279 |
|
Gain on disposal or sale of property, plant and equipment |
|
|
- |
|
|
|
(5 |
) |
Change in fair value of contingent consideration |
|
|
(1,215 |
) |
|
|
80 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
726 |
|
Deferred income taxes |
|
|
1,471 |
|
|
|
(472 |
) |
(Increase) decrease in operating assets, net of acquisitions: |
|
|
||||||
Accounts receivable |
|
|
7,999 |
|
|
|
(20,724 |
) |
Unbilled revenue |
|
|
(10,595 |
) |
|
|
11,855 |
|
Inventories |
|
|
(6,627 |
) |
|
|
(6,220 |
) |
Income taxes receivable |
|
|
(2,235 |
) |
|
|
998 |
|
Prepaid expenses and other current and non-current assets |
|
|
(2,190 |
) |
|
|
(2,199 |
) |
Operating lease assets |
|
|
1,294 |
|
|
|
1,212 |
|
Prepaid pension asset |
|
|
(234 |
) |
|
|
(287 |
) |
Increase (decrease) in operating liabilities, net of acquisitions: |
|
|
||||||
Accounts payable |
|
|
3,491 |
|
|
|
401 |
|
Accrued compensation, accrued expenses and other current and non-current liabilities |
|
|
639 |
|
|
|
6,011 |
|
Customer deposits |
|
|
12,090 |
|
|
|
25,572 |
|
Operating lease liabilities |
|
|
(1,272 |
) |
|
|
(1,119 |
) |
Long-term portion of accrued compensation, accrued pension liability and accrued postretirement benefits |
|
|
(33 |
) |
|
|
(45 |
) |
Net cash provided by operating activities |
|
|
24,316 |
|
|
28,120 |
|
|
Investing activities: |
|
|
||||||
Purchase of property, plant and equipment |
|
|
(18,957 |
) |
|
|
(9,226 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
- |
|
|
|
44 |
|
Acquisition of P3 Technologies, LLC, net of cash acquired |
|
|
(170 |
) |
|
|
(6,812 |
) |
Net cash used by investing activities |
|
|
(19,127 |
) |
|
|
(15,994 |
) |
Financing activities: |
|
|
||||||
Principal repayments on debt |
|
|
- |
|
|
|
(25,500 |
) |
Proceeds from the issuance of debt |
|
|
- |
|
|
|
13,000 |
|
Repayments on finance lease obligations |
|
|
(320 |
) |
|
|
(316 |
) |
Payment of debt exit costs |
|
|
- |
|
|
|
(752 |
) |
Payment of debt issuance costs |
|
|
- |
|
|
|
(241 |
) |
Issuance of common stock |
|
|
653 |
|
|
|
476 |
|
Purchase of treasury stock |
|
|
(854 |
) |
|
|
(58 |
) |
Net cash used by financing activities |
|
|
(521 |
) |
|
|
(13,391 |
) |
Effect of exchange rate changes on cash |
|
|
(30 |
) |
|
|
(53 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
4,638 |
|
|
|
(1,318 |
) |
Cash and cash equivalents at beginning of year |
|
|
16,939 |
|
|
|
18,257 |
|
Cash and cash equivalents at end of year |
|
$ |
21,577 |
|
$ |
16,939 |
|
|
Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
March 31, |
|
March 31, |
||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|||
Net income |
$ |
4,395 |
|
$ |
1,340 |
|
|
$ |
12,230 |
|
$ |
4,556 |
|
||
Acquisition & integration (income) expense |
|
(270 |
) |
|
|
158 |
|
|
|
(1,170 |
) |
|
|
432 |
|
ERC tax credit, net |
|
- |
|
|
(702 |
) |
|
- |
|
|
(702 |
) |
|||
Debt amendment costs |
|
- |
|
|
|
37 |
|
|
|
- |
|
|
|
781 |
|
ERP Implementation costs |
|
178 |
|
|
185 |
|
|
882 |
|
|
241 |
|
|||
Net interest (income) expense |
|
(141 |
) |
|
|
(29 |
) |
|
|
(583 |
) |
|
|
248 |
|
Income tax expense |
|
1,174 |
|
|
119 |
|
|
3,177 |
|
|
1,018 |
|
|||
Equity-based compensation expense |
|
753 |
|
|
|
277 |
|
|
|
1,957 |
|
|
|
1,279 |
|
Depreciation & amortization |
|
1,561 |
|
|
1,570 |
|
|
5,936 |
|
|
5,432 |
|
|||
Adjusted EBITDA |
$ |
7,650 |
|
|
$ |
2,955 |
|
|
$ |
22,429 |
|
|
$ |
13,285 |
|
Net sales |
$ |
59,345 |
|
|
$ |
49,070 |
|
|
$ |
209,896 |
|
|
$ |
185,533 |
|
Net income margin |
|
7.4 |
% |
|
|
2.7 |
% |
|
|
5.8 |
% |
|
|
2.5 |
% |
Adjusted EBITDA margin |
|
12.9 |
% |
|
6.0 |
% |
|
10.7 |
% |
|
7.2 |
% |
|||
Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation (Unaudited, $ in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
March 31, |
|
March 31, |
||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|||
Net income |
$ |
4,395 |
|
$ |
1,340 |
|
$ |
12,230 |
|
$ |
4,556 |
|
|||
Acquisition & integration (income) expense |
|
(270 |
) |
|
|
158 |
|
|
|
(1,170 |
) |
|
432 |
|
|
Amortization of intangible assets |
|
555 |
|
|
670 |
|
|
2,218 |
|
|
2,157 |
|
|||
ERC tax credit, net |
|
- |
|
|
|
(702 |
) |
|
|
- |
|
|
|
(702 |
) |
Debt amendment costs |
|
- |
|
|
37 |
|
|
- |
|
|
781 |
|
|||
ERP Implementation costs |
|
178 |
|
|
185 |
|
|
|
882 |
|
|
241 |
|
||
Normalized tax rate(1) |
|
(106 |
) |
|
(80 |
) |
|
(444 |
) |
|
(669 |
) |
|||
Adjusted net income |
$ |
4,752 |
|
|
$ |
1,608 |
|
|
$ |
13,716 |
|
|
$ |
6,796 |
|
GAAP net income per diluted share |
$ |
0.40 |
|
$ |
0.12 |
|
$ |
1.11 |
|
$ |
0.42 |
|
|||
Adjusted net income per diluted share |
$ |
0.43 |
|
|
$ |
0.15 |
|
|
$ |
1.24 |
|
|
$ |
0.63 |
|
Diluted weighted average common shares outstanding |
|
11,115 |
|
|
10,988 |
|
|
11,066 |
|
|
10,844 |
|
|||
(1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate. |
|||||||||||||||
Acquisition and integration (income) expense are incremental costs that are directly related to and as a result of the P3 acquisition or the subsequent accounting for the contingent earn-out liability. These costs (income) may include, among other things, professional, consulting and other fees, system integration costs, and contingent consideration fair value adjustments. ERP implementation costs primarily relate to consulting costs (training, data conversion, and project management) incurred in connection with the ERP system being implemented throughout our
View source version on businesswire.com: https://www.businesswire.com/news/home/20250609336473/en/
Christopher J. Thome
Vice President - Finance and CFO
Phone: (585) 343-2216
Tom Cook
Investor Relations
(203) 682-8250
Tom.Cook@icrinc.com
Source: Graham Corporation
