Graham Corporation

Greetings. Welcome to Graham Corporation's second quarter of fiscal year 2023 financial results conference call. At this time, all participants are in a listen-only mode. In question and answer session, we'll follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. At this time, I'll turn the conference over to Deborah Pulaski, Investor Relations. Ms. Pulaski, you may now begin.

Thank you, Rob, and good morning, everyone. We certainly appreciate your time today and your interest in Graham Corporation. Joining me here are Dan Thorne, our President and CEO, and Chris Thome, our Chief Financial Officer. You should have a copy of the second quarter fiscal year 2023 financial results, which we released this morning before the market. Also for your information and posted on our website are slides that will accompany today's conversation as well as supplemental information that provides greater detail regarding sales, bookings, and backlog by industry and geography on our website. Those can be found at ir.gramcorp.com. I will first have Stan and Chris do a formal presentation, after which we will then open the lines for Q&A. So if you'll turn to slide two in that deck that I mentioned, I'll review the Safe Harbor Statement. You should be aware that we may make some forward-looking statements during the formal discussions, as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed with Securities and Exchange Commission. These documents can be found on our website, ir.gramcorp.com, or at sec.gov. During today's call, we will also make some non-GAAP financial measure disclosures. We believe these measures will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided the reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and the slides. So with that, if you would please advance to slide three. I'll turn the call over to Dan to begin. Dan?

Thank you, Debbie, and good morning, everyone. I am pleased to report that we are tracking to plan, our results are as we expected, and we are on track to achieve our fiscal year guidance. Our second quarter was a big bookings quarter with over $90 million in new orders. Approximately $70 million was attributed to our defense market and another $20 million to space and refinery petrochem. All of these newly booked orders have better margins than in the past. We were able to increase pricing on both our Navy and energy jobs. We are seeing continued strong demand in our refinery Petrochem aftermarket business. We have not seen an increase in commercial capital equipment orders yet, but our customers tell us they expect those orders to come in calendar 2023. Execution is improving through continual improvement in the short term and with capital investments for the long term. Both business units are working hard to improve manufacturing processes and seeing improved cost and yield because of the effort. This quarter, our board approved the acquisition of an automated welding machine, a new mill turn machining tool, a pump test rig, and a facility expansion. The automated welding machine will reduce cost and rework on some of our heat exchangers we are making in Batavia. The new mill turn machine tool will significantly reduce manufacturing time on production torpedo programs, while the facility expansion will enable a higher production delivery rate for these programs. The pump test rig will be used to demonstrate lifecycle for high compliance production pumps that we are making in Arvada. As we clear the low margin jobs through the year, We expect profitability to continue improvement. For the quarter, given the product mix, GAAP loss was about $200,000 and EBITDA was $1.5 million. With that, I'd like to hand it over to Chris Thome for a discussion of our financial performance.