THERMON REPORTS FISCAL 2015 RESULTS
Company Announces Fiscal 2015 Revenue of $308.6 million, EPS of $1.52, and Order Growth of 13%
SAN MARCOS, Texas, May 27, 2015 -- Thermon Group Holdings, Inc. (NYSE:THR) (“Thermon” or the “Company”) today announced consolidated financial results for the fourth quarter and fiscal year ended March 31, 2015 ("fiscal 2015").
Highlights for the full fiscal year include:
Revenue of $308.6 million, an increase of 11%
Gross margin percentage of 50.1% versus 48.7% in fiscal 2014
Orders of $301.7 million, an increase of 13% over fiscal 2014
Fully diluted Adjusted EPS of $1.38 and fully diluted GAAP EPS of $1.52
“We are excited by our fiscal 2015 results. In our sixtieth year, Thermon achieved all-time highs in most of our financial metrics. Recently, we closed the first two acquisitions since our initial public offering. We recognize the headwinds that our business will face due to the recent downturn in the energy industry. In fiscal 2016, we intend to make strategic investments in our business and are targeting mid-single digit total revenue growth for the upcoming year," said Rodney Bingham, President and Chief Executive Officer.
In fiscal 2015, the Company generated revenue of $308.6 million reflecting an increase of 11% over fiscal 2014 revenue of $277.3 million. In fiscal 2015, the mix of MRO/Greenfield revenue was approximately 59% MRO/UE and 41% Greenfield, whereas in fiscal 2014 MRO/UE revenue represented 67% of our total revenue and Greenfield revenue was 33% of total revenue. Greenfield revenue grew 37% or $34.3 million and MRO/UE revenue declined $3.0 million or 2% compared to fiscal 2014. On a pro-forma basis, adjusting for foreign currency fluctuations, we grew revenue in all geographic regions, with our growth most heavily concentrated in North America. In fiscal 2015, foreign currency fluctuations negatively impacted revenue by $12.8 million or 4% primarily attributable to the appreciation of the U.S. Dollar relative to the Canadian Dollar and the Euro.
Gross profit totaled $154.7 million compared to $135.2 million in fiscal 2014, an increase of 14%. Although we had a higher concentration of Greenfield revenue in fiscal 2015, our gross margin percentage increased from 48.7% in fiscal 2014 to 50.1% in fiscal 2015. We believe our gross margin improvement is largely attributable to a favorable product mix, where we sold more of our manufactured products in fiscal 2015 than fiscal 2014.
Orders placed during fiscal 2015 totaled $301.7 million compared to $266.9 million in fiscal 2014, representing growth of 13%. As of March 31, 2015, our backlog was $75.7 million compared to $84.8 million at March 31, 2014, a decline of $9.1 million or 11%. $7.0 million of this decline is attributable to foreign currency fluctuations.
Net income was $49.4 million in fiscal 2015 versus $25.8 million in fiscal 2014 and an increase of $23.6 million or 91%. After adjustments related to debt transactions, discrete tax benefits and a settlement with our Predecessor owners, our Adjusted net income per fully diluted share was $1.38 in fiscal 2015 compared to $1.20 in the prior fiscal year. In total, foreign currency negatively impacted GAAP earnings per share by $0.06.
Our cash balance increased 29% from $72.6 million at March 31, 2014 to $93.8 million at March 31, 2015. Free cash flow was $45.7 million and $42.7 million in fiscal 2015 and 2014, respectively.
Q4 2015 revenue totaled $74.3 million as compared to $67.5 million in Q4 2014, an increase of 10%. Greenfield revenue grew 50% or $9.8 million in Q4 2015 and MRO/UE revenue declined 6% or $3.0 million compared to Q4 2014. Greenfield revenue was 39% of total revenue in Q4 2015 and 29% of total revenue in Q4 2014, whereas MRO/UE revenue represented 61% and 71% of total revenue in Q4 2015 and Q4 2014, respectively. During Q4 2015, nearly all of our revenue growth was concentrated in the United States. Foreign currency fluctuations negatively impacted Q4 2015 revenue by $6.2 million or 8%.
The following information was filed by Thermon Group Holdings, Inc. (THR) on Wednesday, May 27, 2015 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.