Thermon Group Holdings (THR) has reported a 9.59 percent rise in profit for the quarter ended Mar. 31, 2015. The company has earned $10.50 million, or $0.32 a share in the quarter, compared with $9.58 million, or $0.30 a share for the same period last year. On an adjusted basis, net profit for the quarter was $8.94 million, when compared with $9.58 million in the last year period. Revenue during the quarter grew 10.05 percent to $74.26 million from $67.48 million in the previous year period. Gross margin for the quarter contracted 260 basis points over the previous year period to 45.93 percent. Total expenses were 83.02 percent of quarterly revenues, up from 78.73 percent for the same period last year. That has resulted in a contraction of 429 basis points in operating margin to 16.98 percent.
Operating income for the quarter was $12.61 million, compared with $14.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $17.08 million compared with $18.29 million in the prior year period. At the same time, adjusted EBITDA margin contracted 411 basis points in the quarter to 22.99 percent from 27.11 percent in the last year period.
"We are excited by our fiscal 2015 results. In our sixtieth year, Thermon achieved all-time highs in most of our financial metrics. Recently, we closed the first two acquisitions since our initial public offering. We recognize the headwinds that our business will face due to the recent downturn in the energy industry. In fiscal 2016, we intend to make strategic investments in our business and are targeting mid-single digit total revenue growth for the upcoming year," said Rodney Bingham, president and chief executive officer.
Working capital increases
Thermon Group Holdings has recorded an increase in the working capital over the last year. It stood at $158.35 million as at Mar. 31, 2015, up 19.60 percent or $25.95 million from $132.40 million on Mar. 31, 2014. Current ratio was at 3.98 as on Mar. 31, 2015, down from 4.03 on Mar. 31, 2014. Debt comes down
Thermon Group Holdings has recorded a decline in total debt over the last one year. It stood at $108 million as on Mar. 31, 2015, down 11.11 percent or $13.50 million from $121.50 million on Mar. 31, 2014. Total debt was 23.78 percent of total assets as on Mar. 31, 2015, compared with 27.46 percent on Mar. 31, 2014. Debt to equity ratio was at 0.40 as on Mar. 31, 2015, down from 0.49 as on Mar. 31, 2014. Interest coverage ratio improved to 14.17 for the quarter from 11.75 for the same period last year.
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