Revenue during the quarter grew 14.90 percent to $25.62 million from $22.30 million in the previous year period. Gross margin for the quarter expanded 586 basis points over the previous year period to 26.30 percent. Total expenses were 90.17 percent of quarterly revenues, down from 97.22 percent for the same period last year. This has led to an improvement of 704 basis points in operating margin to 9.83 percent.

Operating income for the quarter was $2.52 million, compared with $0.62 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.10 million compared with $1.21 million in the prior year period. At the same time, adjusted EBITDA margin improved 668 basis points in the quarter to 12.09 percent from 5.41 percent in the last year period.

James R. Lines, Graham’s president and chief executive officer, commented, "The benefit of our revenue diversification efforts is evident in our fiscal 2017 results. Approximately 30% of revenue was for the nuclear power and U.S. Navy markets. Energy markets remained deeply contracted during fiscal 2017 and our bidding activity hasn’t yet indicated a rebound in the energy markets we serve. Our fiscal 2017 total orders, net of cancellations, were at their lowest level in six years, resulting in backlog at its lowest level in eight years. We believe the long-term outlook for energy markets is strong. Also, our development of M&A prospects continues to build in support of our strategy to expand and diversify our revenue mix."

For financial year 2018, Graham Corporation expects revenue to be in the range of $80 million to $90 million.

Cash flow from investing activities was $6.68 million from investing activities during the year as against cash outgo of $9.15 million in the last year. It has incurred net capital expenditure of $0.32 million on net basis during the year, down 71.83 percent or $0.83 million from year ago.

The company has spent $3.46 million cash to carry out financing activities during the year as against cash outgo of $12.69 million in the last year period.

Cash and cash equivalents stood at $39.47 million as on Mar. 31, 2017, up 63.98 percent or $15.40 million from $24.07 million on Mar. 31, 2016.

Working capital increases
Graham Corporation has recorded an increase in the working capital over the last year. It stood at $78.69 million as at Mar. 31, 2017, up 5.19 percent or $3.88 million from $74.81 million on Mar. 31, 2016. Current ratio was at 3.46 as on Mar. 31, 2017, down from 3.68 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 55 days for the last year period. Days sales outstanding went down to 48 days for the quarter compared with 54 days for the same period last year.

Days inventory outstanding has decreased to 22 days for the quarter compared with 28 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 26 for the same period last year.