Graham(GHM) - 2021 Q1 - Quarterly Report

Financial Performance - Net sales for the first quarter of fiscal 2021 were $16,710, down 19% compared to $20,593 for the first quarter of fiscal 2020[64] - Net loss for the first quarter of fiscal 2021 was ($1,818), resulting in a diluted loss per share of ($0.18), compared to a net income of $82 and diluted income per share of $0.01 in the first quarter of fiscal 2020[64] - Gross profit margin for the first quarter of fiscal 2021 was 9%, down from 23% in the first quarter of fiscal 2020[64] - Orders booked in the first quarter of fiscal 2021 were $11,468, compared to $15,089 in the first quarter of fiscal 2020[64] - SG&A expenses for the first quarter of fiscal 2021 were $3,902, a decrease of $665 compared to $4,567 in the first quarter of fiscal 2020[64] - The effective tax rate in the first quarter of fiscal 2021 was 17%, compared to 23% in the first quarter of fiscal 2020[64] - Cash flow was negative in Q1 fiscal 2021, but positive cash flow from operations is expected for the remainder of the fiscal year[96] Sales and Backlog - Domestic sales decreased by $5,010, or 35%, in the first quarter of fiscal 2021, while international sales increased by $1,127, or 18%[64] - The backlog was $107,220 at June 30, 2020, compared to $112,389 at March 31, 2020[64] - Backlog as of June 30, 2020, was $107,220 million, down 5% from $112,389 million at March 31, 2020, with 70% to 75% expected to convert to sales within one year[90] - The company anticipates defense programs in backlog will generate $20 million to $25 million in annual revenue in fiscal 2021 and beyond[91] Cash and Investments - Cash and short-term investments at June 30, 2020, were $67,172, down from $73,003 at March 31, 2020[64] - Cash and investments decreased to $67,172 million as of June 30, 2020, from $73,003 million on March 31, 2020[86] - The company had a $25,000 million revolving credit facility with JP Morgan Chase, which can be increased to $50,000 million if needed[88] Future Projections and Plans - Fiscal 2021 revenue is projected to be between $90,000 million and $95,000 million, with a gross profit margin of 20% to 22%[95] - Production capability was approximately 50% of normal in Q1 fiscal 2021 due to COVID-19, but the company expects to operate at near normal capacity for the remaining quarters[93] - The company expects growth in its naval nuclear propulsion business due to strategic actions to increase market share, with 51% of total backlog related to U.S. Navy defense[64] - The company plans to continue seeking organic growth opportunities and potential acquisitions to expand its market presence[92] Dividend and Capital Expenditures - Dividend payments in Q1 fiscal 2021 were $1,097 million, up from $988 million in Q1 fiscal 2020, while capital expenditures increased to $338 million from $294 million[84]