Thermon Group Holdings, Inc.
) reported its financial results for the second quarter of the
fiscal year 2014 (ended Sep 30, 2013) on Nov 7, 2013. Adjusted
earnings per share in the quarter came in at 30 cents, up 15.4%
year over year and above the Zacks Consensus Estimate of 27
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Thermon Group generated revenues of $72.8 million, up 7.3% year
over year. The increase can be attributed to healthy performance
in the United States and Canada. Revenues in Europe also
stabilized in the quarter.
Cost of sales in the second quarter 2014 increased 6.3% year over
year and represented 51.4% of total revenue; down from 51.9% in
the year-ago quarter. Gross margin increased 50 basis points year
over year to 48.6% on the back of favorable product mix.
Marketing, general and administrative and engineering expenses of
Thermon group, as a percentage of total revenue, stood at 24.2%.
Operating margin in the quarter was 19.9%, down from 22.6% in the
Exiting the fiscal second quarter 2014, cash and cash equivalents
of Thermon Group were $53.4 million, up 17.6% sequentially.
Long-term debt, net of current portion decreased 2.8% to $114.8
Thermon Group's net cash flow generation from operating
activities were down 19.1% year over year totaling at $10.9
million. Capital spending on purchase of property, plant and
equipment was $0.85 million, down 47.4% from that spent in the
year-ago quarter. Free cash flow in the quarter went down 15.3%
to $10.0 million.
For the fiscal year 2014, management of Thermon Group expects
mid-single digit revenue growth.
Thermon Group currently has a $823.7 million market
capitalization and carries a Zacks Rank #2 (Buy). Other stocks to
watch out for in the industry are
), with a Zacks Rank #1 (Strong Buy) while
), each come with a Zacks Rank #2 (Buy).