I am starting on Page 3.
Revenue has increased to $28.8 million, but we had a loss of $0.35 per share.
We had a huge bookings quarter at $68 million.
As of December 31, 2021, our Navy backlog in Batavia was over $100 million.
Now while the CVN-80 work is not a true first article job for us, the lack of process documentation from the previous work combined with severe labor challenges and use of contract welders new to the equipment caused challenges on the carrier work as well.
Let's turn to Page 5.
The chart on Page 5 shows our labor plan with blue bars, our actual labor, application in gray bars, and the resulting deficit of hours caused by actual being less than our planned hourly expenditure.
Sales were $28.8 million, up $1.6 million over last year's third quarter.
Barber-Nichols contributed $12 million in sales in the quarter, helping to offset the weak sales quarter of our legacy Graham manufacturing business.
The impact of the cost increases and required fully burdened contract costs in the quarter were $2 million.
In addition, the delayed revenue was approximately $6 million, and the delayed operating profit is approximately $750,000.
All of the above items contributed to an adjusted EBITDA of negative $2.6 million in the quarter and an adjusted net loss of $0.27 per share.
On the positive front, with the addition of Barber-Nichols, we had 58% of our sales to the defense industry, as well as 5% or $1.5 million to the space industry.
The impact of the third quarter results on top of a challenging first half of the year have yielded an unacceptable loss even as sales increased 16% or $11.3 million to $83.1 million.
In the seven months since the acquisition, BN has contributed $31.9 million in sales, offsetting significant declines in refining and petrochemical markets.
In fact, our diversification into defense, which is less cyclical than our commercial business, has resulted in 52% of our year-to-date revenue coming from that industry.
The year-to-date impact of increased cost on these two jobs is approximately $4.5 million.
In addition, the delayed revenue was approximately $12 million and the delayed operating profit is an additional $1.5 million.
The increased cost of outsourcing and higher costs has impacted the commercial business by $3 million.
All of the above items contributed to an adjusted EBITDA of negative $5.4 million year-to-date, and a year-to-date net loss of $0.70 a share and an adjusted loss of $0.60 per share.
In the seven months since the acquisition, BN sales are on track at $31.9 million, and EBITDA margins are well ahead of expectations.
I have noted in previous calls, that we were expecting $45 million to $48 million in sales and low double-digit EBITDA margins.
And as part of the waiver agreement, we have agreed not to utilize more than $15 million of our revolver.
In fact, in January alone, lowered our revolver debt from $9.75 million to $6 million.
As Dan noted, orders in Q3 were $68 million.
Our backlog at the end of Q3 is a record $272.6 million, with both Barber-Nichols and the legacy Graham business having a nice step-up in their respective backlogs during the quarter.
Defense represents 77% of total backlog.
This defense backlog extends over the next 6 years, though much of it converts in the next three to four years.
It has grown from $33 million at the end of March to $63 million now.
Another positive feature of the commercial backlog and its growth is that it has a much shorter conversion cycle than the defense backlog generally 12 to 18 months.
Our revenue guidance is now $120 million to $125 million, which implies $37 million to $42 million in Q4.
Let's turn to Page 12.

Summary:
Revenue has increased to $28.8 million, but we had a loss of $0.35 per share.
Sales were $28.8 million, up $1.6 million over last year's third quarter.
Our revenue guidance is now $120 million to $125 million, which implies $37 million to $42 million in Q4.