THERMON REPORTS FISCAL 2018 RESULTS

SAN MARCOS, Texas, May 24, 2018 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the fourth quarter ("Q4 2018") and the fiscal year ended March 31, 2018 ("Fiscal 2018").

Fiscal 2018 highlights, compared to the fiscal year ended March 31, 2017 ("Fiscal 2017")

Acquired Thermon Heating Systems ("THS"), expanding our addressable market by approximately 50%
Increased revenue, orders and backlog by 17%, 13% and 49%, respectively
Improved gross margin by 420 basis points to 46.6%
Fully diluted GAAP EPS for Fiscal 2018 was $0.36, a decrease of 20% compared to $0.45
Non-GAAP Adjusted EPS* was $0.99 for Fiscal 2018, an increase of 46% compared to $0.68

Q4 2018 highlights, compared to the three months ended March 31, 2017 ("Q4 2017")

Increased revenue by 52%
Improved gross margin by 380 basis points to 45.6%
Fully diluted GAAP EPS for Q4 2018 was $0.18 per share, an increase of 80% compared to $0.10
Non-GAAP Adjusted EPS* for Q4 2018 was $0.34 per share, an increase of 113% compared to $0.16
Executed optional debt prepayment of $25.0 million or 10% of aggregate principal

*
Please note that the Company now presents Non-GAAP Adjusted EPS to include the impact of intangible amortization. See the table "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" for an explanation of the adjustments.

"We are pleased with the progress of the integration of the THS business and with its financial performance, which exceeded expectations in the first five months of ownership. Our organic business had a strong fourth quarter as well, with sales increasing 15%, operating income increasing 78% and backlog remaining near historic record levels. As we move past the peak heating season into lower seasonality of the summer months, we are encouraged by the strength in our backlog. Looking forward to the upcoming fiscal year, we anticipate that the combined organization will grow top line revenue approximately 17% to 20% compared to Fiscal 2018," said Bruce Thames, Thermon's President and Chief Executive Officer.

During Q4 2018, the Company generated revenue of $102.6 million versus $67.6 million in Q4 2017, an increase of $35.0 million or 52%. Organic revenue was $77.6 million and revenue from THS was $25.0 million in Q4 2018. During Q4 2018, organic Greenfield and MRO/UE (facility maintenance, repair and operations and upgrade or expansion) activity accounted for 42% and 58% of revenue, respectively. Most of the revenue contributed by THS would be considered MRO/UE.

Gross margin during Q4 2018 was 45.6% compared to 41.8% in Q4 2017. Gross margin was favorably impacted by improved Greenfield pricing leverage and project execution from our organic business. THS product mix during the peak heating season also favorably impacted gross margin by 130 basis points in Q4 2018.

Q4 2018 orders were $94.5 million versus $69.4 million in Q4 2017, an increase of $25.1 million or 36%. In Q4 2018, organic orders were $72.9 million and orders from THS were $21.6 million. Q4 2018 backlog of $159.6 million represents a $52.7 million increase, or 49%, over Q4 2017 backlog of $106.9 million. For Q4 2018, organic backlog was $128.0 million and backlog from THS was $31.7 million.

Q4 2018 net income attributable to Thermon and GAAP EPS were $6.1 million and $0.18 per fully diluted common share, respectively, compared to $3.3 million and $0.10 per fully diluted common share, respectively, in Q4 2017. 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 (former presentation) in Q4 2018 of $7.1 million and Adjusted EPS (former presentation) of $0.22 per fully diluted common share compared to $3.3 million and $0.10 per fully diluted common share, respectively, in Q4 2017.




The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, May 24, 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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