THERMON REPORTS SECOND QUARTER FISCAL 2021 RESULTS
AUSTIN, Texas, November 5, 2020 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the second quarter ("Q2 2021") of the fiscal year ending March 31, 2021 ("Fiscal 2021").
Q2 2021 highlights, as compared to the three months ended September 30, 2019, ("Q2 2020"), include:
•Revenue of $66.4 million, a decrease of 35% compared to $102.9 million
•Backlog of $118.7 million, up 16% over prior year marking the third consecutive quarter with a positive book to bill ratio (at 1.14 for the quarter)
•Fully diluted GAAP earnings per-fully diluted common share ("EPS") of $0.06, a decrease of $0.15 compared to $0.21
•Non-GAAP Adjusted EPS of $0.12, a decrease of $0.17 compared to $0.29
•Net income of $1.8 million as compared to net income of $6.9 million
•Adjusted EBITDA of $10.5 million, a decrease of $10.6 million compared to $21.1 million.
•Generated $9.3 million of cash provided by operating activities, a decrease of $17.4 million compared to $26.7 million
Bruce Thames, Thermon's President and Chief Executive Officer said, "As our customers continue to adapt to this environment, we remain committed to executing our strategic, operating and financial plans. The successful launch of our Genesis Network extends our industry leading technology in controls and monitoring while providing our customers with real-time visibility and smart data analytics for their heat tracing systems. We are seeing improvements in the demand environment with bookings growing 25% sequentially and backlog up 16% over prior year. We continue to generate cash, including $7.2 million of free cash flow this quarter, and our balance sheet remains strong. We have reduced SG&A costs by an additional $9 million during the quarter, which we expect will deliver meaningful improvement in operating performance during the second half of the fiscal year and position the business to generate significant operating leverage in the coming recovery."
During Q2 2021, the Company generated revenue of $66.4 million versus $102.9 million in Q2 2020, a decrease of $36.5 million or 35%. During Q2 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 36% and 64% of revenue, respectively, which compares to 47% and 53%, respectively, in Q2 2020. Gross margin during Q2 2021 was 43.6%, as compared to 44.1% in Q2 2020.
Q2 2021 total orders were $75.7 million versus $92.6 million in Q2 2020, a decrease of $16.9 million or 18% while increasing 25% sequentially. Q2 2021 backlog of $118.7 million represents a $16.4 million increase, or 16%, as compared to Q2 2020 backlog of $102.3 million, which is the highest level since the fourth quarter of Fiscal 2019.
Q2 2021 net income attributable to Thermon and GAAP EPS were $1.8 million and $0.06, respectively, compared to net income and GAAP EPS of $6.9 million and $0.21, respectively, in Q2 2020. After taking into account the impact of the cost of a workforce reduction, the benefit from the Canadian Emergency Wage Subsidy and intangible amortization related to prior acquisition activities (see table, Reconciliation of Net Income (Loss) Attributable to Thermon to Adjusted Net Income (Loss) and Adjusted EPS), the Company generated an Adjusted Net Income in Q2 2021 of $3.8 million and Adjusted EPS of $0.12 compared to $9.5 million and $0.29, respectively, in Q2 2020.
Adjusted EBITDA was $10.5 million in Q2 2021 as compared to $21.1 million in Q2 2020, a decrease of $10.6 million or 50% (see table, Reconciliation of Net Income (Loss) Attributable to Thermon to Adjusted EBITDA).
During the first six months of the fiscal year ending March 31, 2021 ("YTD 2021"), the Company generated revenue of $123.3 million compared to $194.6 million in the first six months of the fiscal year ended March 31, 2020 ("YTD 2020"), a decrease of $71.4 million or 37%.
YTD 2021 orders were $136.4 million compared to $175.4 million in YTD 2020, a decrease of $39.0 million or 22%.
YTD 2021 net income (loss) attributable to Thermon and GAAP EPS were $(4.2) million and $(0.13), respectively, compared to $8.4 million and $0.25 in YTD 2020. After taking into account certain one-time charges and the impact of intangible amortization (see table, Reconciliation of Net Income (Loss) Attributable to Thermon to Adjusted Net
The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, November 5, 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.