Thermon Group Holdings, Inc.
) reported mixed results for the fourth quarter of fiscal 2014
(ended Mar 31, 2014). While revenues dropped, earnings increased
year over year. Adjusted earnings came in at 30 cents per share, up
66.7% year over year, primarily due to lower costs of goods sold
and operating expenses. However, results missed the Zacks Consensus
Estimate of 32 cents.
For fiscal 2014, Thermon generated adjusted earnings of $1.20
per share, up 31.9% year over year, while missing the Zacks
Consensus Estimate of $1.22 by 2 cents. On a GAAP-basis, yearly
earnings came in at 80 cents per share, down 5.9% year over
Thermon generated revenues of $67.5 million in fiscal
fourth-quarter 2014, down 5.9% year over year. Foreign currency
transactions negatively impacted revenues by $1.4 million. Reported
revenues also missed the Zacks Consensus Estimate of $72.0
Fiscal revenues were $277.3 million, well below the Zacks
Consensus Estimate of $282.0 million and down 2.4% year over year.
Exiting the fiscal year, backlog totaled $84.8 million compared
with $95.2 million as on Mar 31, 2013.
Cost of sales in fiscal fourth-quarter 2014 decreased 12.7% year
over year and represented 51.5% of total revenue, versus 55.5% in
the year-ago quarter. Gross margin increased 400 basis points year
over year to 48.5% backed by hike in maintenance, repair,
operations/upgrade and expansion revenues.
Marketing, general and administrative and engineering expenses
of Thermon, as a percentage of total revenue, stood at 22.3%.
Adjusted earnings before interest, taxes, depreciation and
amortization were $18.3 million, up from $15.7 million in the
Balance Sheet & Cash Flow
Exiting fiscal 2014, cash and cash equivalents were $72.6
million, up 7.9% sequentially. Long-term debt, net of current
portion, decreased 3.1% to $108.0 million.
Thermon's net cash flow from operating activities declined 38.0%
year over year to $9.6 million. Capital spending on purchase of
property, plant and equipment was $929,000, down from $1.0 million
in the comparable prior-year quarter.
In fiscal 2015, Thermon expects revenue growth in the mid-single
Other Stocks to Consider
Thermon currently has a market capitalization of $755.1 million
and carries a Zacks Rank #4 (Sell). Some better-ranked stocks worth
considering in the industry include
Roper Industries Inc.
). While Gorman-Rupp sports a Zacks Rank #1 (Strong Buy), both
Roper Industries and Woodward hold a Zacks Rank #2 (Buy).
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