THERMON REPORTS FOURTH QUARTER AND FISCAL YEAR 2020 RESULTS
AUSTIN, Texas, June 1, 2020 -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company," "Thermon," "we" or "our") today announced consolidated financial results for the fourth quarter ("Q4 2020") and the fiscal year ended March 31, 2020 ("Fiscal 2020").
Q4 2020 highlights, as compared to the three months ended March 31, 2019 ("Q4 2019"), include:
Revenue of $88.4 million, a decrease of 23% compared to $114.2 million
Fully diluted GAAP EPS for Q4 2020 was $(0.09) per share, a decrease of 145% compared to $0.20
Non-GAAP Adjusted EPS for Q4 2020 was $0.01 per share, a decrease of 97% compared to $0.32
Net loss of $3.0 million, a decrease in net income of 144% compared to net income of $6.8 million
Adjusted EBITDA of $9.2 million, a decrease of 58% as compared to $21.7 million
Fiscal 2020 highlights, as compared to the fiscal year ended March 31, 2019 ("Fiscal 2019"), include:
•Revenue of $383.5 million, a decrease of 7% compared to $412.6 million
•Fully diluted GAAP EPS for Fiscal 2020 was $0.36, a decrease of 48% compared to $0.69
•Non-GAAP Adjusted EPS was $0.75 for Fiscal 2020, a decrease of 37% compared to $1.19
•Net Income of $11.9 million, a decrease of 48% compared to $22.8 million
•Adjusted EBITDA of $64.3 million, a decrease of 23% in Fiscal 2020 as compared to $83.5 million
•Net Debt to Adjusted EBITDA ratio at March 31, 2020 of 2.1x
•Generated Free Cash Flow of $60.7 million an increase of 398% as compared to $12.2 million
Bruce Thames, Thermon's President and Chief Executive Officer said, "Thermon has always been a company that prioritizes health and safety, and that culture has never been more valuable than in today's environment. As a supplier to critical infrastructure, we continue to operate and serve our customers despite the significant and rapid changes in the global economy due to the COVID-19 pandemic. In response to lower demand in our end-markets, we have proactively taken actions to reduce our run-rate costs, enhance our liquidity position and ensure the continued strength of our balance sheet for the coming year. I am proud of how our employees have responded to the current challenges while exemplifying our values of care, commitment and collaboration every day. Our balance sheet is strong, and we expect to continue to deliver industry leading innovation and technology while generating positive free cash flow during the next twelve months."
During Q4 2020, the Company generated revenue of $88.4 million versus $114.2 million in Q4 2020, a decrease of $25.8 million or 23%. During Q4 2020, new facility construction (or "Greenfield") and facility maintenance, repair and operations and upgrade or expansion ("MRO/UE") activity from our legacy heat tracing business accounted for approximately 40% and 60% of revenue, respectively. Gross margin during Q4 2020 was 40.3% compared to 39.4% in Q4 2019. Gross margins were negatively impacted during the quarter by a one-time adjustment related to operational execution for $3.5 million, representing a 390 basis point impact to Q4 2020 gross margins.
Q4 2020 total orders were $90.5 million versus $105.7 million in Q4 2019, a decrease of $15.2 million or 14%. Q4 2020 backlog of $105.7 million represents a $14.3 million, or 12%, decrease as compared to Q4 2019 backlog of $120.0 million.
Q4 2020 net loss attributable to Thermon and GAAP earnings per share ("GAAP EPS") were $3.0 million and $(0.09) per fully diluted common share, respectively, compared to net income of $6.8 million and $0.20 per fully diluted common share, respectively, in Q4 2019. After taking into account certain one-time charges and the impact of intangible amortization (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income in Q4 2020 of $0.4 million and Adjusted EPS of $0.01 per fully diluted common share compared to $10.5 million and $0.32 per fully diluted common share, respectively, in Q4 2019. Adjusted EBITDA was $9.2 million in Q4 2020 as compared to $21.7 million in Q4 2019, a decrease of $12.5 million or 58% (see table, Reconciliation of Net Income attributable to Thermon to Adjusted EBITDA).
In Fiscal 2020, the Company generated revenue of $383.5 million compared to $412.6 million in Fiscal 2019, a decrease of $29.1 million or 7%. Gross margin during Fiscal 2020 was 42.1% compared to 42.6% in Fiscal 2019.