Graham Corporation

Greetings. Welcome to Graham Corporation's third quarter fiscal year 2023 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Debbie Polowski, Investor Relations. Thank you. You may begin.

Thank you, Sherry, and good morning, everyone. We certainly appreciate your time today and your interest in Graham Corporation. Here with me on the call are Dan Thorin, our president and CEO, and Chris Thome, our chief financial officer. You should have a copy of the third quarter fiscal 23 financial results, which we released earlier this morning. And if not, you can access the release, as well as the slides that will accompany our conversation today, on our website at ir.gramcorp.com. Dan and Chris will provide their formal remarks, after which we will open the line for questions. If you would turn to slide two in the deck, I'll review the safe harbor statement. You should be aware that we may make some forward-looking statements during the formal discussion, 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 by the company with Securities and Exchange Commission. You can find those documents on our website or at SEC.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, 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 reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and 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. Before I get started, I'd like to congratulate the Barbara Nichols team for making Glassdoor's best small and medium places to work list for 2023. They notably ranked 10th out of the top 50 companies named. Our team and the culture of Barbara Nichols have created a cohesive and innovative environment that people enjoy, which is validated by rankings such as this. Throughout Graham Corporation, as we advance our strategy, I believe it's important for our businesses that we keep our workforce highly engaged, that we provide a work environment in which all feel welcome, and we strive to create opportunities for each to achieve the best of their abilities. I believe we accomplish this by providing our teams with the resources, inclusive culture, and professional development they need to be their best at addressing our customers' requirements. Now onto our results for the quarter. Our third quarter results reflect improved execution and demonstrate continued steady progress as we increase our sales and improve our profitability. Chris will walk you through much of the details, but let me touch on some important highlights. We delivered $40 million in revenue, achieved $0.03 per diluted share in earnings, and $0.08 in adjusted earnings per share. and we ended the quarter with $294 million in backlog. Driving this was strong gross profit, improved gross margins, and continued cost discipline. In fact, we generated $2.2 million in adjusted EBITDA this quarter. Our solid results enabled us to raise our fiscal 2023 revenue guidance to be in the range of $145 to $155 million, and tighten our adjusted EBITDA range to be between $7.5 and $8.5 million for the year. We believe the quarter is a proof point along our path to reach our strategic long-term goals of $200 million in revenue and 10% to 15% adjusted EBITDA margin by fiscal 2027. Our successes with the U.S. Navy have resulted in a very robust backlog of defense business, and we are continuing to strengthen our position in commercial aftermarket while increasing our presence in the growing space industry. In fact, I will dive a little deeper into the backlog and long-term visibility and growth potential of Navy projects later this call. While orders in the quarter of $20 million were soft, we believe it was primarily due to timing and a reflection of the general ebb and flow of large projects being released. Our trailing 12-month orders of approximately $176 million and the 114% book-to-bill ratio are a better representation of our growth and future potential. This is especially true given the large value of repeat orders we have received for critical US Navy projects, which we believe validates our position as a key supplier for the defense industry. I should note that January order rates have started out strong, which is very encouraging. I'll now turn the call over to Chris, who will provide more details on the quarter and expectations for the remainder of the year. Chris?