THERMON REPORTS FIRST QUARTER FISCAL 2021 RESULTS
AUSTIN, Texas, August 6, 2020 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the first quarter ("Q1 2021") of the fiscal year ending March 31, 2021 ("Fiscal 2021").
Q1 2021 highlights, as compared to the three months ended June 30, 2019 ("Q1 2020"), include:
•Revenue of $56.8 million, a decrease of 38% compared to $91.7 million
•Backlog of $109.9 million, with the second consecutive quarter of a positive book to bill ratio
•Fully diluted GAAP loss per fully diluted common share ("EPS") of $(0.18), a decrease of $0.22 compared to $0.04
•Non-GAAP Adjusted EPS of $(0.11), a decrease of $0.26 compared to $0.15
•Net loss of $(6.1) million as compared to net income of $1.5 million
•Generated $3.4 million of cash provided by operating activities, consistent with Q1 2020
•Preserving the strength of our balance sheet, with $48.2 million of cash and cash equivalents and a net debt to Adjusted EBITDA ratio of 2.5x
Bruce Thames, Thermon's President and Chief Executive Officer said, "During a challenging quarter, I am proud of the team's resilience and execution to plan. While we experienced lower demand in our end markets, we remained focused on our customer relationships, the health and safety of our global employees, developing world-class technology and continuing to generate positive cash from operations. We took decisive action to reduce run-rate costs by $17 million and will continue to manage our cost structure in line with the level of incoming business going forward. We continue to prioritize cash management and maintaining our strong balance sheet, and while we expect the impact from both COVID-19 and volatility in energy related markets to continue, we are positioning our business for success as the global economy recovers."
During Q1 2021, the Company generated revenue of $56.8 million versus $91.7 million in Q1 2020, a decrease of $34.9 million or 38%. During Q1 2021, new facility construction (or "Greenfield") and facility maintenance, repair and operations and upgrade or expansion (or "MRO/UE") activity from our legacy heat tracing business accounted for 32% and 68% of revenue, respectively, which compares to 49% and 51% in Q1 2020. Gross margin during Q1 2021 was 42.4%, as compared to 40.5% in Q1 2020.
Q1 2021 total orders were $60.6 million versus $82.8 million in Q1 2020, a decrease of $22.2 million or 27%. Q1 2021 backlog of $109.9 million represents a $1.6 million decrease, or 1%, as compared to Q1 2020 backlog of $111.5 million.
Q1 2021 net loss attributable to Thermon and GAAP EPS were $(6.1) million and $(0.18), respectively, compared to net income and GAAP EPS of $1.5 million and $0.04, respectively, in Q1 2020. After taking into account the impact of the cost of a workforce reduction in the Western Hemisphere, the benefit from the Canadian Emergency Wage Subsidy and intangible amortization related to prior acquisition activities (see table, Reconciliation of Net (Loss) Income attributable to Thermon to Adjusted Net (Loss) Income and Adjusted EPS), the Company generated an Adjusted Net Loss in Q1 2021 of $(3.5) million and Adjusted EPS of $(0.11) compared to Adjusted Net Income and Adjusted EPS of $4.8 million and $0.15, respectively, in Q1 2020.
Adjusted EBITDA was $1.4 million in Q1 2021 as compared to $13.1 million in Q1 2020, a decrease of $11.8 million or 90% (see table, Reconciliation of Net Income attributable to Thermon to Adjusted EBITDA).
As of June 30, 2020, the Company had $179.0 million of gross outstanding debt and $48.2 million of cash and cash equivalents representing net debt of $130.8 million. During the quarter we amended our existing credit agreement whereby the debt within the leverage ratio may be reduced by cash in excess of $20.0 million. Based on the trailing twelve month Adjusted EBITDA of the Company, our net debt to trailing twelve month Adjusted EBITDA ratio was 2.5x as of June 30, 2020.
Conference Call and Webcast Information
Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, and Jay Peterson, Chief Financial Officer, will discuss Q1 2021 results during a conference call today at 10:00 a.m. (Central
The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, August 6, 2020 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.