Graham Corporation Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2015; Provides Earnings Guidance for the Full Year of 2016
January 29, 2016 at 06:55 am EST
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Graham Corporation announced unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2015. For the quarter, the company reported net sales of $17,323,000 compared to $33,646,000 a year ago. Operating profit was $1,570,000 compared to $5,620,000 a year ago. Income before provision for income taxes was $1,638,000 compared to $5,668,000 a year ago. Net income was $1,274,000 or $0.13 per basic and diluted share compared to $3,992,000 or $0.39 per basic and diluted share a year ago. EBITDA was $2,177,000 compared to $6,199,000 a year ago.
For the nine months, the company reported net sales of $67,738,000 compared to $97,714,000 a year ago. Operating profit was $7,858,000 compared to $15,435,000 a year ago. Income before provision for income taxes was $8,027,000 compared to $15,566,000 a year ago. Net income was $5,611,000 or $0.56 per basic and diluted share compared to $10,570,000 or $1.04 per basic and diluted share a year ago. EBITDA was $9,708,000 compared to $17,167,000 a year ago. Net cash provided by operating activities was $22,171,000 compared to $7,505,000 a year ago. Purchase of property, plant and equipment was $883,000 compared to $4,965,000 a year ago. Capital expenditures were $0.9 million in the first nine months of fiscal 2016, compared with $5 million in the same prior-year period.
The company provided earnings guidance for the full year of 2016. The company expects capital expenditures for fiscal 2016 to be between $1.5 million and $2 million, primarily for equipment upgrades and productivity enhancements. The company expects fiscal 2016 revenue to be between $90 million and $95 million, down from a previous range of $95 million to $105 million, as a result of lower revenue in the third quarter. Gross margin for fiscal 2016 is still expected to be between 27% and 28% and the guidance on SG&A expense as a percent of sales is unchanged at between 17% and 18%.
Graham Corporation is engaged in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy and process industries. For the defense industry, its equipment is used in nuclear and non-nuclear propulsion, power, fluid transfer, and thermal management systems. For the space industry, its equipment is used in propulsion, power, and energy management systems and for life support systems. For the chemical and petrochemical industries, its equipment is used in fertilizer, ethylene, methanol and downstream chemical facilities. It manufactures custom-engineered products for critical applications, such as power plant systems, torpedo ejection, heat transfer and vacuum systems, power generation systems, rocket propulsion systems, cooling systems, life support systems, aircraft carrier program, Ethanol plants, ethylene, methanol and nitrogen producing plants, hydrogen fuel cell power, propellant recirculation pumps, and others.
Graham Corporation Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2015; Provides Earnings Guidance for the Full Year of 2016