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Dec 31, 2019
Thermon Q3 2020 Earnings Report
Reported a decrease in revenue and EPS compared to the same quarter last year, but showed strong free cash flow generation.
Key Takeaways
Thermon reported Q3 2020 results with a decrease in revenue by 16% to $100.5 million compared to Q3 2019. GAAP EPS decreased to $0.20 from $0.29, and adjusted EPS decreased to $0.28 from $0.40. The company generated $19.9 million in free cash flow and expects fiscal year 2020 revenues to be in the range of $383-390 million.
Revenue decreased by 16% to $100.5 million compared to Q3 2019.
GAAP EPS decreased to $0.20 from $0.29 year-over-year.
Adjusted EPS decreased to $0.28 from $0.40 year-over-year.
Generated $19.9 million of free cash flow in the quarter.
Thermon
Thermon
Forward Guidance
The company reduces fiscal year 2020 revenue guidance to $383-390 million.
Positive Outlook
- Prioritize capital allocation towards additional debt reduction
- Potential M&A opportunities
- Continue to see strength in our pipeline of opportunities
- Continue strong free cash flow generation
- Net debt to trailing twelve month Adjusted EBITDA ratio currently below 2.0x
Challenges Ahead
- Weaker capital projects in the second half of the fiscal year
- Results fell below expectations on weaker year-end discretionary spending during the third quarter
- Lower incoming order rates in the last two quarters
- Reducing Fiscal 2020 revenue guidance to $383-390 million
- Revenue of $100.5 million, a decrease of 16% compared to $119.4 million