- Third Quarter Sales Grew 10% to $43.8 Million Driven by Defense
Projects and Aftermarket Sales in Support of Refining and
Petrochemical Markets
- Gross Margin Expanded 660 Basis Points to 22.2% on Favorable
Mix, Better Pricing and Improved Execution
- Achieved Net Income of $0.2 Million; Adjusted Net Income1 and
Adjusted EBITDA1 Improved to $2.4 Million and $3.9 Million,
Respectively
- Received a Record $123.3 Million in Orders, Primarily Related
to Follow-on Orders for U.S. Navy Programs, Which Drove Backlog to
Increase to $399.2 Million, of Which 84% Was Defense
- Generated $7.6 Million of Cash From Operations and Reduced Debt
Balance $7.9 Million During the Third Quarter
- Expanded Turbomachinery Capabilities and Technology Solutions
With P3 Technologies Acquisition
- Increased Full Year Revenue and Adjusted EBITDA1 Guidance to
Reflect Acquisition, Strong Core Growth, and Profitability
Initiatives
Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a
global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the
defense, space, energy, and process industries, today reported
financial results for its third quarter ended December 31, 2023
(“third quarter fiscal 2024”). Results include approximately two
months of operations from the P3 Technologies, LLC (“P3”)
acquisition, which was completed on November 9, 2023.
“Third quarter results were strong and we believe further
demonstrated the continued execution of our strategy that is
centered on driving quality top-line growth with margin accretive
projects in order to improve our future earnings power,” commented
Daniel J. Thoren, President and Chief Executive Officer. “There
were several highlights during the quarter, which included improved
financial performance with expanded gross and adjusted EBITDA
margins1, strong bookings which drove record backlog of nearly $400
million, and a new lower cost, more flexible credit facility.
“Equally noteworthy was the acquisition of P3, a strategic bolt
on business that is already enhancing our turbomachinery solutions
and Graham’s margin profile. Importantly, our strong cash
generation during the quarter enabled us to pay off nearly all the
debt utilized in acquiring P3.”
Mr. Thoren concluded, “We believe our business is in a
much-improved position given the strategic and necessary actions
taken over the last few years. As we look forward, we are confident
we can continue to execute our strategy and capitalize on the many
opportunities in front of us. We are also focused on further
elevating GHM by driving a collaborative spirit across our brands,
leveraging best practices, and progressing employee development in
support of our core capabilities.”
__________________________ 1 Adjusted Net Income, Adjusted
EBITDA and Adjusted EBITDA margin are non-GAAP measures. See
attached tables and other information on pages 10 and 11 for
important disclosures regarding Graham’s use of these non-GAAP
measures.
Third Quarter Fiscal 2024 Performance
Review
(All comparisons are with the same
prior-year period unless noted otherwise.)
($ in millions except per share
data)
Q3 FY24 Q3 FY23 $
Change % Change Net sales
$
43.8
$
39.9
$
3.9
10%
Gross profit
$
9.7
$
6.2
$
3.5
56%
Gross margin
22.2%
15.6%
+660 bps
Operating income
$
0.9
$
0.7
$
0.2
36%
Operating margin
2.1%
1.7%
+40 bps
Net income
$
0.2
$
0.4
$
(0.2)
-55%
Net income per diluted share
$
0.02
$
0.03
$
(0.01)
-33%
Adjusted net income*
$
2.4
$
0.9
$
1.6
183%
Adjusted net income per diluted share*
$
0.22
$
0.08
$
0.14
176%
Adjusted EBITDA*
$
3.9
$
2.2
$
1.6
72%
Adjusted EBITDA margin*
8.8%
5.6%
+320 bps
*Graham believes that adjusted net income,
adjusted net income per diluted share, adjusted EBITDA (defined as
consolidated net income before net interest expense, income taxes,
depreciation, amortization, other acquisition related expenses
(income), and other unusual/nonrecurring expenses), and adjusted
EBITDA margin (adjusted EBITDA as a percentage of net sales), which
are non-GAAP measures, help in the understanding of its operating
performance. Moreover, Graham’s credit facility also contains
ratios based on adjusted EBITDA as defined in the lending
agreement. Graham also believes that adjusted net income and
adjusted net income per diluted share, which excludes intangible
amortization, other costs related to the acquisition, and other
unusual/nonrecurring (income) expenses, provides a better
representation of the cash earnings of the Company. See the
attached tables and other information on pages 10 and 11 for
important disclosures regarding Graham’s use of adjusted EBITDA,
adjusted EBITDA margin, adjusted net income, and adjusted net
income per diluted share, as well as the reconciliation of net
income to adjusted EBITDA, adjusted net income, and adjusted net
income per diluted share.
Net sales of $43.8 million increased 10%, or $3.9 million, and
included approximately $1.0 million of incremental sales from P3.
Sales to the defense market increased $2.6 million, or 12%.
Aftermarket sales to the refining and petrochemical markets were
$8.6 million, up $3.2 million, or 59%. Declines in the space market
reflect timing of projects and the loss of a customer in April 2023
due to bankruptcy partially offset by revenue from P3. See
supplemental data for a further breakdown of sales by market and
region.
Gross margin expanded 660 basis points to 22.2%, which reflected
higher volume and related improved absorption, higher margin
commercial aftermarket sales, P3 margin accretive sales, improved
execution and better pricing on defense contracts.
Selling, general and administrative expense (“SG&A”),
excluding amortization, was $8.4 million, or 19% of sales, for the
third quarter of fiscal 2024 compared with $5.3 million, or 13% of
sales for the comparable prior-year period. The increase reflects
higher performance-based compensation including supplemental
performance bonus for Barber-Nichols employees (the “BN performance
bonus”) in connection with the 2021 acquisition of Barber-Nichols
LLC. Also contributing to the increase in SG&A was P3
acquisition-related costs, increased professional fees and initial
enterprise resource planning (“ERP”) conversion costs.
Third quarter results reflected approximately $0.7 million of
debt amendment costs.
Cash Management and Balance Sheet
Cash provided by operating activities was $19.5 million for the
year-to-date period compared with $8.9 million in the prior-year
period. The increase reflected higher net income along with
improved working capital which was largely due to changes in
payment terms related to large defense customers and stronger
financial discipline.
Capital expenditures of $5.2 million year-to-date were focused
on capacity expansion, productivity improvements and the start of
the ERP implementation. The Company has adjusted its expected
fiscal 2024 capital expenditures to be in the range of $8.0 million
to $10.0 million from its previous expectations of $12.0 million to
$13.5 million due to updated projected timing of cash outflows.
The Company acquired P3 on November 9, 2023 with a combination
of cash, stock and contingent earn-out based upon the future
performance of P3.
During the third quarter of fiscal 2024, the Company refinanced
its debt with a new, five-year $50 million senior secured revolving
credit facility. The new facility provides expanded flexibility
with reduced borrowing costs. Total debt at quarter-end was $3.0
million, down from $11.7 million at year-end fiscal 2023.
Subsequent to quarter-end, in January 2024, the remaining $3.0
million of debt was paid off.
Orders and Backlog (See supplemental data filed with the
Securities and Exchange Commission on Form 8-K and provided on the
Company’s website for a further breakdown of orders and backlog by
market)
($ in millions)
Q1 23 Q2 23 Q3 23
Q4 23 FY23 Q1 24 Q2
24 Q3 24 YTD FY24 Orders
$
40.3
$
91.5
$
20.0
$
50.9
$
202.7
$
67.9
$
36.5
$
123.3
$
227.7
Backlog
$
260.7
$
313.3
$
293.7
$
301.7
$
301.7
$
322.0
$
313.3
$
399.2
$
399.2
Orders for the three-month period ended December 31, 2023, were
a record $123.3 million. This included orders received in October
primarily related to follow-on orders for critical U.S. Navy
programs. These defense orders are expected to be recognized in
revenue beginning in the fourth quarter of fiscal 2025 through
early fiscal 2030. Aftermarket orders for the refining and
petrochemical markets continued to be strong and were $7.8 million
in the third quarter.
Backlog reached a record $399.2 million and was up 36% over the
prior-year period and 27% sequentially. P3 added approximately $6
million to the backlog level. Approximately 40% of orders currently
in backlog are expected to be converted to sales in the next twelve
months and another 25% to 30% is expected to convert to sales over
the following twelve months. The majority of orders expected to
convert beyond twelve months are for the defense industry,
specifically the U.S. Navy.
Fiscal 2024 Outlook Increased
The Company increased guidance for fiscal 2024 as follows:
(as of February 5, 2024)
Updated Fiscal 2024
Guidance
Previous Guidance
Net Sales:
$175 million to $185 million
$170 million to $180 million
Gross Margin:
Approx. 20% of sales
18% to 19% of sales
SG&A expense(1)
16% to 17% of sales
15% to 16% of sales
Adjusted EBITDA(2)
$15.0 million to $16.0
million
$11.5 million to $13.5
million
Effective Tax Rate
22% to 23%
22% to 23%
CapEx
$8.0 million to $10.0 million
$12.0 million to $13.5
million
(1)
Includes approximately $4.5 million to $5
million of BN Performance Bonus, P3 acquisition and integration,
and ERP conversion costs included in SG&A expense.
(2)
Excludes approximately $4.5 million to $5
million of BN performance bonus, P3 acquisition and integration,
and ERP conversion costs included in SG&A expense and
approximately $0.7 million of debt extinguishment charges.
Webcast and Conference Call
GHM’s management will host a conference call and live webcast
today at 11:00 a.m. Eastern Time (“ET”) to review its financial
condition and operating 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 on the
day of the teleconference through Monday, February 12, 2024. To
listen to the archived call, dial (412) 317-6671 and enter
conference ID number 13743383 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 GHM is a global leader in the
design and manufacture of mission critical fluid, power, heat
transfer and vacuum technologies for the defense, space, energy,
and process industries. The Graham Manufacturing and
Barber-Nichols’ 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 “expects,”
“outlook,” “anticipates,” “believes,” “could,” “guidance,”
“should,” ”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.
Forward-Looking Non-GAAP Measures Forward-looking
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 2024 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, and backlog. 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 it often times is a leading indicator of future
performance. In accordance with industry practice, contracts may
include provisions for cancellation, termination, or suspension at
the discretion of the customer.
Given that each of orders and backlog are operational measures
and that the Company's methodology for calculating orders and
backlog does not meet the definition of a non-GAAP measure, as that
term is defined by the U.S. Securities and Exchange Commission, a
quantitative reconciliation for each is not required or
provided.
FINANCIAL TABLES FOLLOW.
Graham Corporation
Consolidated Statements of
Operations - Unaudited
(Amounts in thousands, except per
share data)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2023
2022
% Change
2023
2022
% Change
Net sales
$
43,818
$
39,873
10
%
$
136,463
$
114,091
20
%
Cost of products sold
34,095
33,646
1
%
108,572
95,840
13
%
Gross profit
9,723
6,227
56
%
27,891
18,251
53
%
Gross margin
22.2
%
15.6
%
20.4
%
16.0
%
Other
expenses and income:
Selling, general and administrative
8,429
5,284
60
%
21,563
15,828
36
%
Selling, general and administrative – amortization
383
274
40
%
930
821
13
%
Operating profit
911
669
36
%
5,398
1,602
237
%
Operating margin
2.1
%
1.7
%
4.0
%
1.4
%
Loss on
extinguishment of debt
726
-
NA
726
-
NA Other (income) expense, net
93
(63
)
NA
280
(188
)
NA Interest expense, net
37
294
(87
%)
277
697
(60
%)
Income before provision (benefit) for income taxes
55
438
(87
%)
4,115
1,093
276
%
(Benefit) provision for income taxes
(110
)
70
NA
899
245
267
%
Net income
$
165
$
368
(55
%)
$
3,216
$
848
279
%
Per share data:
Basic:
Net income
$
0.02
$
0.03
(33
%)
$
0.30
$
0.08
275
%
Diluted: Net income
$
0.02
$
0.03
(33
%)
$
0.30
$
0.08
275
%
Weighted average
common shares outstanding:
Basic
10,775
10,611
10,709
10,613
Diluted
10,920
10,660
10,792
10,632
N/A: Not
Applicable
Graham Corporation
Consolidated Balance Sheets –
Unaudited
(Amounts in thousands, except per
share data)
December 31,
March 31,
2023
2023
Assets Current assets: Cash and
cash equivalents
$
15,163
$
18,257
Trade accounts receivable, net of allowances ($1,834 and $1,841 at
December 31 and March 31, 2023, respectively)
35,666
24,000
Unbilled revenue
28,671
39,684
Inventories
31,078
26,293
Prepaid expenses and other current assets
4,011
1,534
Income taxes receivable
745
302
Total current assets
115,334
110,070
Property, plant and equipment, net
29,027
25,523
Prepaid pension asset
6,322
6,107
Operating lease assets
7,626
8,237
Goodwill
25,087
23,523
Customer relationships, net
14,584
10,718
Technology and technical know-how, net
11,254
9,174
Other intangible assets, net
7,378
7,610
Deferred income tax asset
1,734
2,798
Other assets
368
158
Total assets
$
218,714
$
203,918
Liabilities and stockholders’ equity
Current liabilities: Short-term debt
obligations
$
3,000
$
-
Current portion of long-term debt
-
2,000
Current portion of finance lease obligations
19
29
Accounts payable
16,365
20,222
Accrued compensation
14,726
10,401
Accrued expenses and other current liabilities
5,255
6,434
Customer deposits
63,005
46,042
Operating lease liabilities
1,221
1,022
Income taxes payable
-
16
Total current liabilities
103,591
86,166
Long-term debt
-
9,744
Finance lease obligations
72
85
Operating lease liabilities
6,760
7,498
Deferred income tax liability
61
108
Accrued pension and postretirement benefit liabilities
1,341
1,342
Other long-term liabilities
3,133
2,042
Total liabilities
114,958
106,985
Stockholders’ equity:
Preferred stock, $1.00 par value, 500 shares authorized
-
-
Common stock, $0.10 par value, 25,500 shares authorized, 10,971 and
10,774 shares issued and 10,828 and 10,635 shares outstanding at
December 31, 2023 and March 31, 2023, respectively
1,097
1,075
Capital in excess of par value
31,678
28,061
Retained earnings
80,659
77,443
Accumulated other comprehensive loss
(7,144
)
(7,463
)
Treasury stock (143 and 138 shares at December 31 and March 31,
2023, respectively) respectively)
(2,534
)
(2,183
)
Total stockholders’ equity
103,756
96,933
Total liabilities and stockholders’ equity
$
218,714
$
203,918
Graham Corporation
Consolidated Statements of
Cash Flows – Unaudited
(Amounts in thousands)
Nine Months Ended
December 31,
2023
2022
Operating activities: Net income
$
3,216
$
848
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
2,375
2,611
Amortization
1,487
1,857
Amortization of actuarial losses
632
504
Amortization of debt issuance costs
131
153
Equity-based compensation expense
1,002
582
Loss on extinguishment of debt
726
-
Deferred income taxes
935
232
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable
(11,335
)
(7,755
)
Unbilled revenue
11,213
(8,082
)
Inventories
(4,357
)
(6,801
)
Prepaid expenses and other current and non-current assets
(1,526
)
(500
)
Income taxes receivable
(459
)
(137
)
Operating lease assets
894
913
Prepaid pension asset
(215
)
(488
)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable
(3,949
)
5,511
Accrued compensation, accrued expenses and other current and
non-current liabilities
2,948
2,116
Customer deposits
16,590
18,776
Operating lease liabilities
(825
)
(802
)
Long-term portion of accrued compensation, accrued pension
liability and accrued postretirement benefits
-
(592
)
Net cash provided by operating activities
19,483
8,946
Investing activities: Purchase of property,
plant and equipment
(5,193
)
(2,394
)
Proceeds from disposal of property, plant and equipment
38
-
Acquisition of P3 Technologies, LLC, net of cash acquired
(6,812
)
-
Net cash used by investing activities
(11,967
)
(2,394
)
Financing activities: Borrowings of short-term
debt obligations
13,000
5,000
Principal repayments on debt
(22,522
)
(8,517
)
Payment of debt exit costs
(752
)
-
Principal repayments on finance lease obligations
(224
)
(205
)
Issuance of common stock
225
-
Payment of debt issuance costs
(241
)
(122
)
Purchase of treasury stock
(57
)
(22
)
Net cash used by financing activities
(10,571
)
(3,866
)
Effect of exchange rate changes on cash
(39
)
(212
)
Net (decrease) increase in cash and cash equivalents
(3,094
)
2,474
Cash and cash equivalents at beginning of period
18,257
14,741
Cash and cash equivalents at end of period
$
15,163
$
17,215
Graham Corporation
Adjusted EBITDA
Reconciliation**
(Unaudited, $ in thousands)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net income
$
165
$
368
$
3,216
$
848
Acquisition & integration costs
274
274
54
Barber-Nichols performance bonus
1,264
-
2,833
-
Debt amendment costs
744
-
744
194
ERP Implementation costs
56
-
56
-
Net interest expense
37
294
277
697
Income taxes
(110
)
70
899
245
Depreciation & amortization
1,422
1,506
3,862
4,468
Adjusted EBITDA
$
3,852
$
2,238
$
12,161
$
6,506
Adjusted EBITDA margin %
8.8
%
5.6
%
8.9
%
5.7
%
Adjusted Net Income
and
Adjusted Net Income Per
Diluted Share Reconciliation**
(Unaudited, $ in thousands,
except per share amounts)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net income
$
165
$
368
$
3,216
$
848
Acquisition & integration costs
274
-
274
54
Amortization of intangible assets
596
619
1,487
1,857
Barber-Nichols performance bonus
1,264
-
2,833
-
Debt amendment costs
744
-
744
194
ERP Implementation costs
56
-
56
-
Normalized tax rate(1)
(675
)
(130
)
(1,241
)
(442
)
Adjusted net income
$
2,424
$
857
$
7,369
$
2,511
GAAP net income per diluted share
$
0.02
$
0.03
$
0.30
$
0.08
Adjusted net income per diluted share
$
0.22
$
0.08
$
0.68
$
0.24
Diluted weighted average common shares outstanding
10,920
10,660
10,792
10,632
(1) Applies a normalized tax rate
to non-GAAP adjustments, which are pre-tax, based upon the
statutory tax rate.
** Acquisition and Integration Costs are incremental
costs that are directly related to the P3 acquisition. These costs
may include, among other things, professional, consulting and other
fees, system integration costs, and fair value adjustments relating
to contingent consideration. In connection with the acquisition of
BN, we entered into the BN Performance Bonus agreement to provide
employees of BN with a supplemental performance-based award based
on the achievement of BN performance objectives for fiscal years
ending March 31, 2024, 2025, and 2026 which can range between
$2,000 to $4,000 per year. Debt Amendment Costs consists of
accelerated write-offs of unamortized deferred debt issuance costs
and discounts, prepayment penalties and attorney fees in connection
with the amendment of our credit facility in October 2023. ERP
Implementation Costs relate to consulting costs incurred in
connection with the new ERP system being implemented throughout our
Batavia, N.Y. facility and are not expected to reoccur once the
project is completed.
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 the United States, commonly known as GAAP.
Nevertheless, Graham believes that providing non-GAAP information,
such as Adjusted EBITDA and Adjusted EBITDA margin, 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 operating performance. Moreover, Graham’s credit
facility also contains ratios based on EBITDA. Because Adjusted
EBITDA and Adjusted EBITDA margin are non-GAAP measures and are
thus susceptible to varying calculations, Adjusted EBITDA, and
Adjusted EBITDA margin, as presented, may not be directly
comparable to other similarly titled measures used by other
companies.
Adjusted net income (loss) and adjusted net income (loss) per
diluted share are defined as net income (loss) and diluted earnings
(loss) per share as reported, adjusted for certain items and at a
normalized tax rate. Adjusted net income (loss) and adjusted net
income (loss) per diluted share are not measures determined in
accordance with GAAP and may not be comparable with the measures
used by other companies. Nevertheless, Graham believes that
providing non-GAAP information, such as adjusted net income (loss)
and adjusted net income (loss) 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 (loss) and net
income (loss) per diluted share to the historical periods' net
income (loss) and net income (loss) per diluted share. Graham also
believes that adjusted net income (loss) per diluted share, which
adds back intangible amortization expense related to acquisitions,
provides a better representation of the cash earnings of the
Company.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240205958541/en/
Christopher J. Thome Vice President - Finance and CFO (585)
343-2216
Deborah K. Pawlowski Kei Advisors LLC (716) 843-3908
dpawlowski@keiadvisors.com
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