Thermon Group Holdings, Inc.
) reported its financial results for the fourth quarter and the
fiscal year 2013 (ended Mar 31, 2013) on Jun 5, 2013. The results
were weak in the quarter as adjusted earnings per share came in
at 18 cents, down from 21 cents reported in the year-ago quarter
and the Zacks Consensus Estimate of 25 cents.
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For the fiscal year 2013, adjusted earnings per share increased
7.1% year over year to 91 cents but lagged the Zacks Consensus
Estimate of 98 cents.
Thermon Group reported a 3.0% year-over-year increase in revenues
that settled at $71.7 million. For the fiscal year 2013, revenues
were $284.0 million, up 4.3% year over year. The results were
adversely impacted by a negative foreign currency translation
amounting to $7.1 million.
Cost of sales in the fourth quarter soared 13.3% year over year
and represented 55.5% of total revenue; up from 50.4% in the
year-ago quarter. Marketing, general and administrative and
engineering expenses of Thermon group, as a percentage of total
revenue, stood at 23.4%. Operating margin in the quarter was
16.5%, down from 21.6% in the year-ago quarter.
Exiting the fiscal fourth quarter, cash and cash equivalents of
Thermon Group were approximately $43.8 million, up 54.2%
sequentially. On the other hand, long-term debt, net of current
portion was stable at $118.1 million.
In May 2013, Thermon Group completed redemption of 9.5% senior
notes by using a new loan with lower interest rates. This new
adjustment is likely to reduce interest expense by $7.5 million
or 23 cents per share on an annual basis, resulting in nearly $30
million savings in the next four years.
Cash flow from operating activities in the fourth quarter was
$15.4 million, up from $9.6 million in the year-ago quarter while
capital expenditure by Thermon Group was at $1.0 million versus
$2.7 million in the year-ago quarter.
For fiscal year 2013, cash flow from operating activities grew
significantly from $3.1 million in 2012 to $41.3 million in 2013.
Capital spending plummeted 29.5% to $6.3 million.
Thermon Group currently has a $614 million market capitalization
and carries a Zacks Rank #3 (Hold). Other stocks to watch out for
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