Financial Report Card at a Glance - Report on Graham Corporation

Aug 06, 2015, 09:10 ET from www.aciassociation.com

NEW YORK, August 6, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Graham Corporation (NYSE: GHM). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=GHM

Highlights from our GHM Report include:

  • Slight Dip in Sales Numbers - On July 30, 2015, Graham Corporation reported Q1 net sales of $27.6 million, versus net sales of $28.5 million in the first quarter of the fiscal year ended March 31, 2015. Net income came in at $2.4 million, unchanged from the prior year. On a per diluted share basis, net income was $0.23 compared with $0.24 in the prior year's first quarter. Net income margin came in at 9% in the current year's first quarter.
  • Mixed Regional and Industrial Performance - In the Middle East, Asia, and Other markets, the Company posted a sales increase of $1.8 million, $0.5 million, and $1.4 million, respectively; while sales in the U.S. dropped $4.6 million. International sales represented 36% of fiscal 2016's first quarter sales, compared with 22% in the prior year first quarter. Refining sales rose by $1.2 million, or 18%, compared to the corresponding period prior year. Further, sales to the chemical/petrochemical, power and the Company's other commercial and industrial markets, including defense, declined by $0.4 million, $1.2 million, and $0.5 million, respectively.
  • Profitability Margins Maintained - Company's EBITDA was $4.0 million and $4.2 million in the current and prior year quarter, respectively, both representing 15% of their corresponding period's sales. Graham's gross profit was $8.0 million, or 29% of sales, compared with $7.9 million, or 28% of sales, in the same period prior year, reflecting a more favorable product mix.
  • First Quarter Fiscal 2016 Orders and Backlog - The Company highlighted that the orders during the reported period were $24.0 million, approximately 32% of which came from the refining market. Orders reported same quarter last year was $31.1.  Graham's backlog stood at $110.1 million, compared to $114.8 million at June 30, 2014.
  • Guidance update - For fiscal 2016, Graham is expecting its sales to be in the range of $95 million to $105 million. Gross margin is expected to be between 26% and 28%, resulting from anticipated lower production facility utilization and increased pricing pressure. Further, the Company is expecting c.45% to 50% of orders currently in backlog to be converted to sales within one year, 5% to 10% expected to convert in 1-2 years and 40% - 45% beyond two years.

To find out how this influences our rating on Graham Corporation, read the full report in its entirety here: http://www.aciassociation.com/?c=GHM

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