THERMON REPORTS THIRD QUARTER FISCAL 2018 RESULTS
Thermon Announces Fiscal 2018 Third Quarter Revenue of $92.7 million
SAN MARCOS, Texas, February 8, 2018 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the third quarter of the fiscal year ending March 31, 2018 ("Q3 2018"). During Q3 2018, we completed our acquisition of CCI Thermal Technologies, Inc. ("CCI"). As part of the integration, we have renamed CCI and will operate the business going forward as Thermon Heating Systems, Inc.
Financial summary for Q3 2018 compared to the three months ended December 31, 2016 ("Q3 2017"). These amounts include the results of Thermon Heating Systems for the months of November and December:
Revenue of $92.7 million, 44% increase
Backlog of $167.7 million vs. $105.0 million, 60% growth
Orders of $105.3 million, 26% increase
Gross margin of 45.6% vs. 44.5%
Fully diluted GAAP EPS $0.02 compared to $0.16 and Adjusted EPS of $0.24 compared to $0.16
Thermon Heating Systems generated the following summary financial results during the two months of Q3 2018 they were included in Thermon's consolidated financial statements.
Revenue of $16.1 million
Backlog of $35.1 million
"We are pleased with our operating performance in the third quarter. The return of maintenance spending combined with improved backlog conversion drove year over year bookings, backlog and revenue growth. The US organic business showed especially strong order and backlog growth after a very slow start to the fiscal year. We especially thank the new team from CCI for their outstanding performance during the first two months as Thermon Heating Systems. With improving end markets and an integration that is progressing as planned, we are well positioned to finish the fiscal year on a very positive note," said Bruce Thames, President and Chief Executive Officer.
During Q3 2018, the Company generated revenue of $92.7 million versus $64.3 million in Q3 2017, an increase of $28.3 million or 44%. On a comparative basis, foreign currency translation effects positively impacted Q3 2018 revenue by $3.1 million or 5%. During Q3 2018, our sales mix (excluding Thermon Heating Systems) of Greenfield and MRO/UE (facility maintenance, repair and operations and upgrade or expansion) sales totaled 38% and 62% of revenue, respectively, compared to 33% and 67% in Q3 2017. Substantially all of the $16.1 million in revenue contributed by Thermon Heating Systems is considered MRO/UE under our current definition.
Gross margin during Q3 2018 was 45.6% compared to 44.5% in Q3 2017. Gross margin performance during the quarter was positively impacted by product mix that included more of Thermon's core manufactured products and strong project execution.
Q3 2018 orders were $105.3 million versus $83.7 million in Q3 2017, an increase of $21.6 million or 26%. Q3 2018 backlog of $167.7 million represents a 60% increase over Q3 2017 backlog of $105.0 million.
During Q3 2018, we incurred $0.8 million in tax expense resulting from a one-time initial estimate of the impact of the U.S. tax reform legislation. The expense is comprised of the estimated tax payable for the repatriation of historical foreign earnings and the estimated withholding tax in certain foreign jurisdictions, partially offset by the non-cash release of certain tax liabilities.
Q3 2018 Net Income attributable to Thermon and GAAP EPS were $0.6 million and $0.02 per fully diluted common share, respectively, compared to $5.4 million and $0.16 per fully diluted common share respectively, in Q3 2017. After taking into account certain non-recurring charges totaling $7.4 million (primarily related to transaction
The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, February 8, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.