THERMON REPORTS FISCAL 2016 RESULTS
Thermon Announces Fiscal 2016 Revenue of $282 million
SAN MARCOS, Texas, May 25, 2016 -- Thermon Group Holdings, Inc. (NYSE:THR) (“Thermon” or the “Company”) today announced consolidated financial results for the fourth quarter ("Q4 2016") and fiscal year ended March 31, 2016 ("fiscal 2016").
Financial summary for the quarter:
Revenue of $72.3 million, a decrease of 3% compared to Q4 2015
Q4 2016 orders were $72.6 million, a 39% increase over Q4 2015
Backlog of $81.2 million compared to $75.7 million at the end of Q4 2015
Gross margin percentage of 44% compared to 46% in Q4 2015
Fully diluted GAAP EPS of $0.10 and Adjusted EPS of $0.20
“We were encouraged by the Company’s revenue performance in the fourth quarter in light of the challenging industry conditions. Our margins were negatively impacted in the fourth quarter due to increased pricing pressure and product mix, which we expect to continue in the near-term. Our strong cash flow reflects the strength of our fundamental business model, even in a difficult environment. In the upcoming fiscal year, we will focus on implementing and executing our strategic plan, including several investment initiatives. We believe these efforts will position us to achieve our long-term revenue and earnings growth objectives to drive value for both shareholders and customers,” said Bruce Thames, President and Chief Executive Officer.
In fiscal 2016 the Company generated revenue of $281.9 million, a 9% decrease versus $308.6 million in fiscal 2015. Fiscal 2016 includes $26.0 million of revenue generated by our three recently acquired businesses. Foreign currency translation effects caused a comparative decline in revenue of $19.9 million. Excluding the impact of foreign currency translation effects, our organic revenue declined $32.8 million, or 10.6% compared to fiscal 2015. During fiscal 2016, Greenfield and MRO/UE(facility maintenance, repair and operations and upgrade or expansion) revenue represented 34% and 66% of revenue, respectively. This compares to fiscal 2015 when Greenfield and MRO/UE revenue represented 41% and 59% of revenue, respectively.
Gross margin during fiscal 2016 decreased to 46.6%, which is within our expected historical range of approximately 45% to 50%. This result was down from 50.1% in fiscal 2015, which was at the high end of our expected historical range.
Orders placed during fiscal 2016 were $287.4 million compared to $301.7 million in fiscal 2015, a decrease of 5%. Our backlog was $81.2 million as of March 31, 2016 compared to $75.7 million as of March 31, 2015. Foreign currency translation effects reduced our backlog by $1.2 million as of March 31, 2016
Net income attributable to Thermon and GAAP earnings per share were $23.0 million and $0.71 per fully diluted common share in fiscal 2016 versus $49.4 million and $1.52 per fully diluted common share in fiscal 2015, respectively. After taking into account certain one-time charges (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted net income in fiscal 2016 of $28.9 million and Adjusted EPS of $0.89 per fully diluted common share in fiscal 2016.
During Q4 2016, the Company generated revenue of $72.3 million versus $74.3 million in Q4 2015, a decrease of $2.0 million or 3%. On a comparative basis, foreign currency translation effects negatively impacted Q4 2016 revenue by $2.3 million or 3%. For Q4 2016, revenue generated from recent acquisitions totaled $7.0 million. During Q4 2016, Greenfield and MRO/UE revenue were 40% and 60% of revenue, respectively. This compares to Q4 2015 when Greenfield and MRO/UE were 39% and 61% of revenue, respectively.
Gross margins during Q4 2016 were 44.4% compared to 45.9% in Q4 2015. Q4 2016 gross margins were negatively impacted by product mix within our MRO/UE sales as well as competitively bid orders within our Greenfield sales.
The following information was filed by Thermon Group Holdings, Inc. (THR) on Wednesday, May 25, 2016 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.