Graham Corporation Wins $8 Million of Orders for Global Oil Refining Projects
Jun 10 14
Graham Corporation announced that it has been awarded three refinery orders for projects valued at approximately $8 million in total. One of the orders relates to the upgrade of a refinery in China and the other two orders are for replacement components at North American refineries. Shipments are expected to occur within the next 9 to 12 months. The China refinery upgrade order calls for a new Graham ejector system engineered to improve conversion of crude oil to transportation fuels. The other two orders, one of which is for the Canadian Oil Sands and the other for the U.S., are for ejector system components that must be replaced due to corrosion resulting from their harsh operating environments. Demand for upgraded, revamped and replacement equipment to the oil refining market has been strong, especially given the industry's desire to extend intervals between planned shutdowns for inspection and maintenance. The operating environments for equipment used in such facilities can be harsh and corrosive, which in turn drives refineries to make investments to improve throughput and performance.
Graham Corp. Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended March 31, 2014; Provides Earnings Guidance for the Full Year of Fiscal 2015
May 30 14
Graham Corp. reported consolidated earnings results for the fourth quarter and year ended March 31, 2014. Net sales were $26.1 million, down from net sales of $30.9 million in the fourth quarter of the fiscal year ended March 31, 2013. EBITDA was $3.7 million, or 14.3% of sales, compared with $6.2 million, or 20.1% of sales, in the same period of the prior fiscal year and $2.5 million, or 10.8% of sales, in the trailing third quarter. Net income was $2.3 million, or $0.23 per diluted share, compared with $4.1 million, or $0.41 per diluted share, in the prior year's fourth quarter.
Fiscal 2014 net sales of $102.2 million decreased by $2.7 million, or 2.6%, from fiscal 2013. U.S. sales increased by $8.2 million, or 14.6%, to $63.8 million for fiscal 2014, driven by sales to the petrochemical industry. EBITDA was $16.8 million, or 16.5% of sales, compared with $17.3 million, or 16.5% of sales, in fiscal 2013. Net income was $10.1 million, down $1.0 million, or 9.0%, from the prior year. Per diluted share, fiscal 2014 earnings were $1.00 compared with $1.11 in the prior year. Fiscal 2013 benefitted from the previously mentioned reversal of the earn-out reserve associated with the Energy Steel acquisition. Cash provided by operations in fiscal 2014 was $15.2 million, up from $12.4 million of cash provided by operations during fiscal 2013. Capital expenditures were $5.3 million in fiscal 2014 compared with $1.7 million in fiscal 2013. The majority of the increase in capital expenditures in fiscal 2014 was related to the production expansion at the Company's Batavia, New York facility, which is on track for completion in the second quarter of fiscal 2015.
Capital expenditures in fiscal 2015 are expected to be in the range of $5.5 million to $6.0 million, of which approximately 60% is expected to be utilized for the Batavia facility expansion. The company expects sales will be in a range of $120 to $130 million in fiscal 2015, which represents anticipated growth of approximately 17% to 27% compared with fiscal 2014. Gross margin for fiscal 2015 is expected to be between 30% and 32%, as pricing power is still consistent with historic early-cycle margins. Tax rate to be within a range of 33% to 34%.
Graham Corporation Wins $10 Million of Orders for North American Oil Refining and Petrochemical Projects
May 30 14
Graham Corporation announced that it was recently awarded four orders for projects valued at approximately $10 million. The orders are for upgrades of Graham ejector system components at three oil refineries and an ethylene capacity expansion project in North America. Shipments are expected to occur during the next 9 to 15 months. The three orders for equipment at existing North American oil refineries include replacement parts for two Canadian oil sands refineries and another oil refinery in the U.S. Due to the highly corrosive nature of feedstocks being processed, upgrading of Graham's critical components is required to enhance the throughput of these plants. These upgrades include improved metallurgy to help extend the amount of time between planned plant maintenance and inspection shut downs. The fourth order is for a project adding ethylene production capacity on the U.S. Gulf Coast, as the abundance of readily available natural gas in North America resulting from recent technological advances has led to attractive feedstock prices. Due to its strong brand and reputation in the North American ethylene market, Graham has been selected to supply surface condensers for this project.