THERMON REPORTS THIRD QUARTER FISCAL 2021 RESULTS
AUSTIN, Texas, February 4, 2021 -- Thermon Group Holdings, Inc. (NYSE:THR) ("Thermon"), a global leader in industrial process heating solutions, today announced consolidated financial results for the third quarter ("Q3 2021") of the fiscal year ending March 31, 2021 ("Fiscal 2021"). Key highlights for Q3 2021 include:
•Revenue of $79.6 million
•Income from Operations of $10.2 million and Net Income of $6.2 million
•Fully diluted GAAP earnings per share ("EPS") of $0.18
•Non-GAAP Adjusted EPS of $0.30
•Non-GAAP Adjusted EBITDA of $18.5 million, or 23.3% of revenue
•Generated cash provided by operating activities of $2.9 million
•Completed additional debt repayment of $5.6 million
"I am pleased with the solid execution by our team in an uncertain environment, delivering a strong quarter of profit and positive cash flow. We have seen accelerating interest in our industry leading Genesis Network mesh control and monitoring technology since its launch last quarter, and we continue to invest in other exciting new technologies through our R&D program. Our teams have executed the previously announced continuous improvement and restructuring programs, resulting in gross profit margin expansion of 310 basis points to 46.4% and Adjusted EBITDA margins of 23.3%--the highest in any quarter since December 2017. We expect our customer's capital spending levels to remain depressed in the near term, but have observed positive trends in maintenance spending in recent months. In the long-term, we will drive value creation for our shareholders by delivering industry leading technology and safety while continuing to manage our overall cost structure for the level of incoming business," said Bruce Thames, Thermon's President and Chief Executive Officer.
During Q3 2021, the Company generated revenue of $79.6 million versus $100.5 million in Q3 2020, a decrease of $20.9 million, or 21%. During Q3 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 38% and 62% of revenue, respectively, which compares to 38% and 62%, respectively, in Q3 2020. Gross margin during Q3 2021 was 46.4%, as compared to 43.3% in Q3 2020.
Q3 2021 total orders were $71.0 million versus $99.0 million in Q3 2020, a decrease of $28.0 million, or 28%. Q3 2021 backlog of $110.1 million represents a $7.6 million increase, or 7%, as compared to Q3 2020 backlog of $102.5 million.
Q3 2021 net income attributable to Thermon and EPS were $6.2 million and $0.18, respectively, compared to net income and EPS of $6.5 million and $0.20, respectively, in Q3 2020. After taking into account the impact of restructuring, the benefit from the Canadian Emergency Wage Subsidy (the "CEWS") 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 Q3 2021 of $10.0 million and Adjusted EPS of $0.30 compared to $9.5 million and $0.28, respectively, in Q3 2020.
Adjusted EBITDA was $18.5 million in Q3 2021 as compared to $20.9 million in Q3 2020, a decrease of $2.4 million, or 11% (see table, Reconciliation of Net Income (Loss) Attributable to Thermon to Adjusted EBITDA).
During the first nine months of the fiscal year ending March 31, 2021 ("YTD 2021"), the Company generated revenue of $202.9 million compared to $295.1 million in the first nine months of the fiscal year ended March 31, 2020 ("YTD 2020"), a decrease of $92.2 million, or 31%.
YTD 2021 orders were $207.4 million compared to $274.9 million in YTD 2020, a decrease of $67.5 million, or 25%.
YTD 2021 Net Income (Loss) attributable to Thermon and EPS were $1.9 million and $0.06, respectively, compared to $14.9 million and $0.45 in YTD 2020. After taking into account the impact of restructuring, the benefit from the CEWS and intangible amortization (see table, Reconciliation of Net Income (Loss) Attributable to Thermon to Adjusted Net Income (Loss) and Adjusted EPS), the Company generated Adjusted Net Income in YTD 2021 of $10.3 million and Adjusted EPS of $0.31 compared to $23.8 million and $0.72, respectively, during YTD 2020. Adjusted EBITDA was $30.4 million in YTD 2021 as compared to $55.0 million in YTD 2020, a decrease of $24.6 million, or 45%.
The following information was filed by Thermon Group Holdings, Inc. (THR) on Thursday, February 4, 2021 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.