Thermon Group Holdings, Inc. (THR) SEC Filing 10-K Annual report for the fiscal year ending Sunday, March 31, 2019

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Thermon Group Holdings, Inc.
Ticker: THR CIK: 1489096

THERMON REPORTS FISCAL 2019 RESULTS; RECORD REVENUE OF $413MM WITH 34% GROWTH AS COMPARED TO FISCAL 2018

AUSTIN, Texas, June 6, 2019 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the fourth quarter ("Q4 2019") and the fiscal year ended March 31, 2019 ("Fiscal 2019").

Fiscal 2019 highlights, compared to the fiscal year ended March 31, 2018 ("Fiscal 2018"), include:

•Record annual revenue of $412.6 million, an increase of 34% compared to $308.6 million

•Successful integration of the Thermon Heating Systems ("THS") acquisition

•Fully diluted GAAP EPS for Fiscal 2019 was $0.69, an increase of 92% compared to $0.36

•Non-GAAP Adjusted EPS was $1.19 for Fiscal 2019, an increase of 20% compared to $0.99

•Net Income of $22.8 million, an increase of 91% compared to $11.9 million

•Record Adjusted EBITDA of $83.5 million, an increase of 29% in Fiscal 2019 as compared to $64.8 million

Q4 2019 highlights, compared to the three months ended March 31, 2018 ("Q4 2018"), include:


•	Revenue of $114.2 million, an increase of 11% compared to $102.6 million


•	Fully diluted GAAP EPS for Q4 2019 was $0.20 per share, an increase of 11% compared to $0.18


•	Non-GAAP Adjusted EPS for Q4 2019 was $0.32 per share, a decrease of 6% compared to $0.34


•	Net Debt to Adjusted EBITDA ratio at March 31, 2019 of 2.2x

"During Q4 2019, we continued to see strong growth in our installed base with revenue of $114 million up 11% over the prior year. Revenue growth was driven by a record mix of Heat Tracing Greenfield projects which represented nearly 50% of revenues for the quarter as compared to a 38% historical average since the 2012 fiscal year. This higher Greenfield mix was dilutive to margins in the quarter, but the expanding installed base positions the Company to grow the recurring maintenance business in future periods at a higher margin profile. We expect to see continued growth in Fiscal 2020 and beyond due to our new product introductions and the continued growth of our installed base." said Bruce Thames, Thermon's President and Chief Executive Officer.

During Q4 2019, the Company generated revenue of $114.2 million versus $102.6 million in Q4 2018, an increase of $11.6 million or 11%. Organic revenue was $91.4 million and revenue from THS was $22.8 million in Q4 2019. During Q4 2019, organic Greenfield and MRO/UE activity each accounted for approximately 50% of revenue, respectively. Most of the revenue contributed by THS is considered MRO/UE (facility maintenance, repair and operations and upgrade or expansion).

Gross margin during Q4 2019 was 39.4% compared to 45.6% in Q4 2018. Gross margins were negatively impacted by a record high mix of Greenfield project revenue in combination with turn-key Greenfield projects containing a higher proportion of labor and third-party materials than Q4 2018.

Q4 2019 total orders were $105.7 million versus $94.5 million in Q4 2018, an increase of $11.2 million or 12%. Q4 2019 backlog of $120.0 million represents a $39.6 million, or 25%, decrease as compared to Q4 2018 backlog of $159.6 million.

Q4 2019 net income attributable to Thermon and GAAP earnings per share ("EPS") were $6.8 million and $0.20 per fully diluted common share, respectively, compared to $6.1 million and $0.18 per fully diluted common share, respectively, in Q4 2018. After taking into account certain one-time charges and the impact of intangible amortization (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income in Q4 2019 of $10.5 million and Adjusted EPS of $0.32 per fully diluted common share compared to $11.2 million and $0.34 per fully diluted common share, respectively, in Q4 2018.

Adjusted EBITDA was $21.7 million in Q4 2019 as compared to $22.6 million in Q4 2018, a decrease of $0.9 million or 4% (see table, Reconciliation of Net Income attributable to Thermon to Adjusted EBITDA).

The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, June 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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