Graham Corporation (NYSE:GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical, power and defense industries, announced today that
its Board of Directors has: (i) declared a 100% increase in the
Company's regular quarterly dividend; and (ii) authorized a stock
repurchase program of up to $18 million.
The quarterly dividend has been doubled to $0.08 per share from
$0.04 per share. The annual dividend rate has accordingly been
increased to $0.32 per share. This is the third consecutive year
that Graham has increased its dividend.
James R. Lines, Graham's President and Chief Executive Officer,
commented, "I believe that this third consecutive dividend increase
and the stock repurchase program are indicative of Graham's strong
cash generation capabilities as well as a statement of the Board's
confidence in the long-term outlook for our Company. Because
of our strong balance sheet and expectations of continued solid
performance, we expect to be able to retain the financial
flexibility to fund acquisitions and invest in organic growth while
providing a meaningful return of capital to our shareholders."
The announced quarterly dividend is payable on March 4, 2015 to
stockholders of record at the close of business on February 18,
2015.
Under the stock repurchase program, the Company intends to
repurchase shares of its common stock within certain defined
parameters, in the open market or through privately negotiated
transactions, block transactions, or other techniques, as
determined by the Company's management and in accordance with
prevailing market conditions and the requirements of the Securities
and Exchange Commission. The Board's authorization is
open-ended and does not establish a timeframe for any purchases
made under the program. The Company is not obligated to
acquire a particular number of shares, and the program may be
discontinued at any time at the Company's discretion.
Graham currently has approximately 10.1 million shares of its
common stock outstanding.
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat
transfer technology, Graham Corporation is a global designer,
manufacturer and supplier of custom-engineered ejectors, pumps,
condensers, vacuum systems and heat exchangers. For nearly 80
years, Graham has built a reputation for top quality, reliable
products and high-standards of customer service. Sold either
as components or complete system solutions, the principal markets
for Graham's equipment are energy, including oil and gas refining
and nuclear and other power generation, chemical/petrochemical and
other process industries. In addition, Graham's equipment can
be found in diverse applications, such as metal refining, pulp and
paper processing, shipbuilding, water heating, refrigeration,
desalination, food processing, pharmaceutical, heating, ventilating
and air conditioning, and in nuclear power installations, both
inside the reactor vessel and outside the containment
vessel.
Graham Corporation's subsidiary Energy Steel & Supply Co. is
a leading code fabrication and specialty machining company
dedicated exclusively to the nuclear power industry.
Graham Corporation's reach spans the globe. Its equipment
is installed in facilities from North and South America to Europe,
Asia, Africa and the Middle East. Graham routinely posts news
and other important information on its website, www.graham-mfg.com,
where additional comprehensive information on Graham Corporation
and its subsidiaries 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 "expects,"
"estimates," "projects," "typically," "anticipates," "believes,"
"appears," "could," "opportunities," seeking," "plans," 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, the expected performance of Energy Steel & Supply
Co, expected expansion and growth opportunities within the domestic
and international markets, anticipated revenue, the timing of
conversion of backlog to sales, market presence, profit margins,
tax rates, foreign sales operations, its ability to improve cost
competitiveness, 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, included under the heading
entitled "Risk Factors."
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.
CONTACT: For more information contact:
Jeffrey F. Glajch
Vice President - Finance and CFO
Phone: (585) 343-2216
Email: jglajch@graham-mfg.com
Deborah K. Pawlowski / Karen L. Howard
Kei Advisors LLC
Phone: (716) 843-3908 / (716) 843-3942
Email: dpawlowski@keiadvisors.com / khoward@keiadvisors.com
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