Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Feb. 03, 2014 | |
Entity Listings [Line Items] | ' | ' |
Entity Registrant Name | 'Thermon Group Holdings, Inc. | ' |
Entity Central Index Key | '0001489096 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 31,834,928 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $67,340 | $43,847 |
Accounts receivable, net of allowance for doubtful accounts of $858 and $1,434 as of December 31, 2012 and March 31, 2012, respectively | 48,616 | 56,123 |
Inventories, net | 40,093 | 34,391 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 4,040 | 3,515 |
Income taxes receivable | 3,281 | 5,287 |
Prepaid expenses and other current assets | 5,204 | 6,203 |
Deferred income taxes | 3,811 | 2,211 |
Total current assets | 172,385 | 151,577 |
Property, plant and equipment, net | 31,465 | 31,211 |
Goodwill | 115,836 | 116,303 |
Intangible assets, net | 123,177 | 131,916 |
Debt issuance costs, net | 1,646 | 4,373 |
Other long term assets | 137 | 143 |
Total assets | 444,646 | 435,523 |
Current liabilities: | ' | ' |
Accounts payable | 19,263 | 20,370 |
Accrued liabilities | 11,120 | 18,715 |
Current portion of long term debt | 13,500 | 0 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,582 | 1,629 |
Income taxes payable | 1,014 | 1,706 |
Obligations due to settle the CHS Transactions | 567 | 3,239 |
Total current liabilities | 47,046 | 45,659 |
Long-term debt, net of current maturities | 111,375 | 118,145 |
Deferred income taxes | 39,865 | 42,599 |
Other noncurrent liabilities | 2,188 | 3,073 |
Total liabilities | 200,474 | 209,476 |
Shareholders' equity | ' | ' |
Common stock: $.001 par value; 150,000,000 authorized; 31,830,428 and 31,307,582 shares issued and outstanding at December 31, 2013 and March 31, 2013, respectively | 32 | 31 |
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding | 0 | 0 |
Additional paid in capital | 207,354 | 203,027 |
Accumulated other comprehensive income | -3,495 | -1,075 |
Retained earnings (accumulated deficit) | 40,281 | 24,064 |
Shareholders’ equity | 244,172 | 226,047 |
Total liabilities and shareholders' equity | $444,646 | $435,523 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 31,830,428 | 31,307,582 |
Common stock, shares outstanding | 31,830,428 | 31,307,582 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Thermon Holding Corp. | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,151 | $1,141 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Sales | $71,465 | $76,830 | $209,848 | $212,369 |
Cost of sales | 35,409 | 41,879 | 107,423 | 111,440 |
Gross profit | 36,056 | 34,951 | 102,425 | 100,929 |
Operating expenses: | ' | ' | ' | ' |
Marketing, general and administrative and engineering | 15,516 | 16,885 | 49,810 | 47,394 |
Amortization of intangible assets | 2,782 | 2,813 | 8,349 | 8,405 |
Income from operations | 17,758 | 15,253 | 44,266 | 45,130 |
Other income/(expenses): | ' | ' | ' | ' |
Interest income | 66 | 36 | 141 | 93 |
Interest expense | -1,369 | -3,116 | -8,693 | -12,176 |
Loss on retirement of senior secured notes | 0 | 0 | -15,485 | 0 |
Miscellaneous expense | -118 | -274 | -350 | -137 |
Income before provision for income taxes | 16,337 | 11,899 | 19,879 | 32,910 |
Income tax expense | 3,754 | 4,161 | 3,662 | 11,585 |
Net income (loss) | 12,583 | 7,738 | 16,217 | 21,325 |
Comprehensive income: | ' | ' | ' | ' |
Net income (loss) | 12,583 | 7,738 | 16,217 | 21,325 |
Foreign currency translation adjustment | -3,023 | -180 | -2,510 | -216 |
Derivative valuation, net of tax | 256 | 0 | 58 | 0 |
Comprehensive income | $9,816 | $7,558 | $13,765 | $21,109 |
Income per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.40 | $0.25 | $0.51 | $0.70 |
Diluted (in dollars per share) | $0.39 | $0.24 | $0.51 | $0.67 |
Weighted-average shares used in computing net income per common share: | ' | ' | ' | ' |
Basic (in shares) | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 |
Diluted (in shares) | 32,224,559 | 31,871,097 | 32,086,570 | 31,725,724 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | ' | ' |
Net income (loss) | $16,217 | $21,325 |
Adjustment to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 10,633 | 10,306 |
Amortization of debt costs | 4,454 | 3,124 |
Stock compensation expense | 1,572 | 869 |
Deferred income taxes | -6,021 | -2,975 |
Loss on retirement of senior secured notes | 15,485 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 7,390 | -5,902 |
Inventories | -5,676 | -2,811 |
Increase (Decrease) in Billing in Excess of Cost of Earnings | -588 | -356 |
Other current and noncurrent assets | 439 | 371 |
Accounts payable | -1,099 | 8,375 |
Accrued liabilities and noncurrent liabilities | -7,734 | -6,928 |
Income taxes payable and receivable | 1,492 | 746 |
Net cash provided by operating activities | 36,564 | 26,144 |
Investing activities | ' | ' |
Purchases of property, plant and equipment | -2,438 | -5,245 |
Cash paid to settle the CHS Transactions | -2,055 | -203 |
Net cash used in investing activities | -4,493 | -5,448 |
Financing activities | ' | ' |
Payments on senior secured notes | -118,145 | -21,000 |
Proceeds from long term debt | 135,000 | 0 |
Payments on long term debt | -10,125 | 0 |
Issuance costs associated with revolving line of credit and long term debt | -1,728 | -248 |
Proceeds from exercise of stock options | 2,756 | 4,571 |
Benefit from excess tax deduction from option exercises | 0 | 3,369 |
Premiums paid on redemptions | -15,485 | -630 |
Capital Lease Obligations Incurred | -17 | 0 |
Net cash used in financing activities | -7,744 | -13,938 |
Effect of exchange rate changes on cash and cash equivalents | -834 | 163 |
Change in cash and cash equivalents | 23,493 | 6,921 |
Cash and cash equivalents at beginning of period | 43,847 | 21,468 |
Cash and cash equivalents at end of period | $67,340 | $28,389 |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policy Information | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Basis of Presentation and Accounting Policy Information | ' | ||||||||
Basis of Presentation and Accounting Policy Information | |||||||||
On April 30, 2010, a group of investors led by entities affiliated with CHS Capital LLC (“CHS”) and two other private equity firms (together with CHS, our “former private equity sponsors”) acquired a controlling interest in Thermon Holding Corp. and its subsidiaries from Thermon Holdings, LLC (“Predecessor”) for approximately $321,500 in a transaction that was financed by approximately $129,252 of equity investments by our former private equity sponsors and certain members of our current and former management team (collectively, the “management investors”) and $210,000 of debt raised in an exempt Rule 144A senior secured note offering to qualified institutional investors (collectively, the “CHS Transactions”). The proceeds from the equity investments and debt financing were used both to finance the acquisition and pay related transaction costs. As a result of the CHS Transactions, Thermon Group Holdings, Inc. became the ultimate parent of Thermon Holding Corp. Thermon Group Holdings, Inc. and its direct and indirect subsidiaries are referred to collectively as “we”, “our”, the “Company” or “Successor” herein. | |||||||||
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended March 31, 2013. In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly our financial position at December 31, 2013 and March 31, 2013, and the results of our operations for the three and nine months ended December 31, 2013 and 2012. Certain reclassifications have been made to prior period presentation of our geographic operating income to conform to the current period presentation. The reclassifications had no effect on the reported sales or operating income in prior periods. | |||||||||
Use of Estimates | |||||||||
Generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. While our management has based their assumptions and estimates on the facts and circumstances existing at December 31, 2013, actual results could differ from those estimates and affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the corresponding revenues and expenses as of the date of the financial statements. The operating results for the nine months ended December 31, 2013 are not necessarily indicative of the results that may be achieved for the fiscal year ending March 31, 2014. | |||||||||
Corrections of classification errors in previously reported Condensed Consolidated Statements of Comprehensive Income | |||||||||
During fiscal 2013, we identified a classification error in our condensed consolidated statements of comprehensive income for all previously reported periods. We determined that charges that were invoiced to customers had been recorded as a reduction to cost of sales instead of as additional sales. The result of this error was an understatement of sales and cost of sales of $80 and $1,048 for the three and nine months ended December 31, 2012, respectively. The classification errors had no effect on the reported gross profit, income from operations or net income and also had no effect on the condensed consolidated balance sheet, or the condensed consolidated statement of cash flows. | |||||||||
Though the correction of the classification errors had no effect on our gross profit, it did result in a slight reduction to our previously reported gross profit as a percentage of revenue as follows below: | |||||||||
Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2012 | ||||||||
As reported: | |||||||||
Sales | $ | 76,750 | $ | 211,321 | |||||
Cost of sales | 41,799 | 110,392 | |||||||
Gross profit | 34,951 | 100,929 | |||||||
Gross profit as a percentage of revenue | 45.5 | % | 47.8 | % | |||||
Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2012 | ||||||||
As corrected: | |||||||||
Sales | $ | 76,830 | $ | 212,369 | |||||
Cost of sales | 41,879 | 111,440 | |||||||
Gross profit | 34,951 | 100,929 | |||||||
Gross profit as a percentage of revenue | 45.5 | % | 47.5 | % | |||||
Recent Accounting Pronouncements | |||||||||
Presentation of Comprehensive Income - In February 2013, the Accounting Standards Codification (ASC) ASC Topic 220, "Comprehensive Income," was amended to require an entity to disclose information about the amounts reclassified out of accumulated other comprehensive income by component. For amounts required to be reclassified out of accumulated other comprehensive income in their entirety in the same reporting period, the guidance requires entities to present significant amounts by their respective line items of net income, either on the face of the income statement or in the notes to the financial statements. For other amounts that are not required to be reclassified to net income in their entirety, a cross-reference is required to other disclosures that provide additional details about those amounts. These provisions are effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance effective April 1, 2013 did not have a material impact on our condensed consolidated financial statements. | |||||||||
Fair Value Measurements and Disclosures - The FASB issued an Accounting Standard Update ("ASU") in December 2011, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of these arrangements on its financial position. The guidance requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB amended and clarified the scope of the disclosures to include only derivative instruments, repurchase agreements and securities lending transactions. The provisions for this ASU are effective for annual periods and interim periods within those years beginning on or after January 1, 2013. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Fair Value. We measure fair value based on authoritative accounting guidance, which defines fair value, establishes a framework for measuring fair value and expands on required disclosures regarding fair value measurements. | ||||||||||||||||||
Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy. | ||||||||||||||||||
• | Level 1 — uses quoted prices in active markets for identical assets or liabilities we have the ability to access. | |||||||||||||||||
• | Level 2 — uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
• | Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. | |||||||||||||||||
Financial assets and liabilities with carrying amounts approximating fair value include cash, trade accounts receivable, accounts payable, accrued expenses and other current liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. At December 31, 2013 and March 31, 2013, no assets or liabilities were valued using Level 3 criteria. | ||||||||||||||||||
Information about our long-term debt that is not measured at fair value is as follows: | ||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | Valuation Technique | ||||||||||||||
Value | Value | |||||||||||||||||
Financial Liabilities | ||||||||||||||||||
Long-term debt | $ | 124,875 | $ | 124,875 | $ | 118,145 | $ | 131,436 | Level 2 - Market Approach | |||||||||
At December 31, 2013, the fair value of our variable rate term loan approximates its carrying value as we pay interest based on the current market rate. As the quoted price is only available for similar financial assets, the Company concluded the pricing is indirectly observable through dealers and has been classified as Level 2. Differences between the fair value and the carrying value for the senior secured notes as of March 31, 2013 are primarily due to the instruments' fixed interest rate. Inherently, such instruments are subject to fluctuations in fair value due to movements in interest rates. | ||||||||||||||||||
Foreign Currency Forward Contracts | ||||||||||||||||||
We transact business in various foreign currencies and have established a program that primarily utilizes foreign currency forward contracts to offset the risk associated with the effects of certain foreign currency exposures. Under this program, increases or decreases in our foreign currency exposures are offset by gains or losses on the forward contracts to mitigate foreign currency transaction gains or losses. These foreign currency exposures typically arise from intercompany transactions. Our forward contracts generally have terms of 30 days. We do not use forward contracts for trading purposes or designate these forward contracts as hedging instruments pursuant to ASC 815. We adjust the carrying amount of all contracts to their fair value at the end of each reporting period and unrealized gains and losses are included in our results of operations for that period. These gains and losses largely offset gains and losses resulting from settlement of payments received from our foreign operations which are settled in U.S. dollars. The fair value is determined by quoted prices from active foreign currency markets (Level 2 fair value). The condensed consolidated balance sheets reflect unrealized gains within accounts receivable, net and unrealized losses within accrued liabilities. Our ultimate realized gain or loss with respect to currency fluctuations will depend on the currency exchange rates and other factors in effect as the contracts mature. As of December 31, 2013 and March 31, 2013, the notional amounts of forward contracts we held to buy U.S. Dollars in exchange for other major international currencies were as follows: | ||||||||||||||||||
Notional amount of foreign currency forward contracts by currency | ||||||||||||||||||
31-Dec-13 | March 31, 2013 | |||||||||||||||||
Russian Ruble | $ | 544 | $ | 4,233 | ||||||||||||||
Euro | 7,077 | 2,510 | ||||||||||||||||
Canadian Dollar | 2,034 | 2,134 | ||||||||||||||||
South Korean Won | — | 919 | ||||||||||||||||
Other | — | 329 | ||||||||||||||||
Total notional amounts | $ | 9,655 | $ | 10,125 | ||||||||||||||
The following table represents the fair value of our foreign currency forward contracts: | ||||||||||||||||||
31-Dec-13 | March 31, 2013 | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 2 | $ | 16 | $ | 87 | $ | 32 | ||||||||||
Foreign currency gains or losses related to our forward contracts in the accompanying condensed consolidated statements of comprehensive income were losses of $144 and $350 for the three and nine months ended December 31, 2013, respectively, and losses of $425 and $164 for the three and nine months ended December 31, 2012, respectively. Gains and losses from our forward contracts were offset by transaction gains or losses incurred with the settlement of transactions denominated in foreign currencies. Our net foreign currency losses were $117 and $353 for the three and nine months ended December 31, 2013, respectively, and losses of $242 and $181 for the three and nine months ended December 31, 2012, respectively. | ||||||||||||||||||
Interest Rate Swap | ||||||||||||||||||
On June 13, 2013, the Company entered into an interest rate swap contract to reduce the exposure to interest rate fluctuations associated with its variable rate term loan. Under the agreement we will pay a fixed amount and receive or make payments based on a variable rate. Effective July 1, 2013, the Company designated the interest rate swap contract as a cash flow hedge pursuant to ASC 815. The Company formally documents all relationships between the hedging instrument and hedged item, its risk management objective and strategy, as well as counter-party creditworthiness. At each reporting period our interest rate swap contract is adjusted to fair value based on dealer quotes, which consider forward curves and volatility levels (Level 2 Fair Value). Unrealized gains, representing derivative assets, are reported within accounts receivable, net and unrealized losses, representing derivative liabilities, are reported within accrued liabilities on the accompanying condensed consolidated balance sheets. As of December 31, 2013, the fair value of the interest rate swap contract was an unrealized gain of $90. The change in fair value of the derivative instruments is recorded in accumulated other comprehensive income to the extent the derivative instruments are deemed effective. Ineffectiveness is measured based on the changes in fair value of the interest rate swap contract and the change in fair value of the hypothetical derivative and is recognized in earnings in the period in which ineffectiveness is realized. Based on the criteria established by ASC 815, the interest rate swap contract is deemed to be highly effective. Any realized gains or losses resulting from the interest rate swap contract are recognized within interest expense. Gains and losses from our interest rate swap contract are offset by changes in the variable interest rate on our term loan. Since the effective date of our interest rate swap contract, interest expense on outstanding principal was 3.62%. We have hedged 100% of the outstanding principal on our variable rate term loan through its maturity date. | ||||||||||||||||||
The following table summarizes the aggregate unrealized gain in accumulated other comprehensive loss, and the losses reclassified into earnings for the three and nine months ended December 31, 2013 (amounts in thousands): | ||||||||||||||||||
Three Months Ended December 31, 2013 | Nine Months Ended December 31, 2013 | |||||||||||||||||
Unrealized gain/(loss) at beginning of the period | $ | (304 | ) | $ | — | |||||||||||||
Add: gain/(loss) from change in fair value of cash flow hedge | 91 | (418 | ) | |||||||||||||||
Less: Loss reclassified to earnings from effective hedge | (303 | ) | (508 | ) | ||||||||||||||
Unrealized gain at end of the period | $ | 90 | $ | 90 | ||||||||||||||
We did not have any interest rate swaps during the three and nine months ended December 31, 2012. | ||||||||||||||||||
Transfers out of accumulated other comprehensive loss | ||||||||||||||||||
During the three and nine months ended December 31, 2013 and 2012, there were no transfers out of accumulated other comprehensive loss except for realized losses from our interest rate swap contract presented in the preceding table, which were recorded within interest expense. During the three and nine months ended December 31, 2013, there were no reclassifications out of other comprehensive loss due to hedge ineffectiveness. |
Earnings_and_Net_Income_Loss_p
Earnings and Net Income (Loss) per Common Share | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings and Net Income (Loss) per Common Share | ' | |||||||||||||||
Earnings and Net Income per Common Share | ||||||||||||||||
Basic earnings per share ("EPS") per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options and both restricted and performance stock units, is computed using the treasury stock method. With regard to the performance stock units, we assumed that the target number of shares would be issued within the calculation of diluted net income per common share. | ||||||||||||||||
The reconciliations of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended December 31, 2013 and 2012, respectively, are as follows: | ||||||||||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Basic net income per common share | ||||||||||||||||
Net income | $ | 12,583 | $ | 7,738 | $ | 16,217 | $ | 21,325 | ||||||||
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 | ||||||||||||
Basic net income per common share | $ | 0.4 | $ | 0.25 | $ | 0.51 | $ | 0.7 | ||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Diluted net income per common share | ||||||||||||||||
Net income | $ | 12,583 | $ | 7,738 | $ | 16,217 | $ | 21,325 | ||||||||
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 | ||||||||||||
Common share equivalents: | ||||||||||||||||
Stock options | 473,364 | 868,110 | 543,376 | 1,028,056 | ||||||||||||
Restricted and performance stock units | 61,308 | 55,923 | 36,449 | 24,865 | ||||||||||||
Weighted average shares outstanding – dilutive (1) | 32,224,559 | 31,871,097 | 32,086,570 | 31,725,724 | ||||||||||||
Diluted net income per common share | $ | 0.39 | $ | 0.24 | $ | 0.51 | $ | 0.67 | ||||||||
(1) 50,307 and 168,211 equity awards were not included in the calculation of diluted net income per common share since they would have had an anti-dilutive effect for the three and nine months ended December 31, 2013, respectively. For the three and nine months ended December 31, 2012 56,532, equity awards were not included in the calculation of diluted net income per common share as they were anti-dilutive. |
Inventories
Inventories | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consisted of the following: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 12,532 | $ | 10,232 | ||||
Work in process | 3,383 | 1,685 | ||||||
Finished goods | 25,411 | 23,550 | ||||||
41,326 | 35,467 | |||||||
Valuation reserves | (1,233 | ) | (1,076 | ) | ||||
Inventories, net | $ | 40,093 | $ | 34,391 | ||||
Goodwill
Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
The carrying amount of goodwill as of December 31, 2013 is as follows: | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Balance as of March 31, 2013 | $ | 116,303 | |||||||||||||||||||||||
Foreign currency translation impact | (467 | ) | |||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 115,836 | |||||||||||||||||||||||
The excess purchase price over the fair value of assets acquired is recorded as goodwill. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test will be performed as of January 1, 2014. At December 31, 2013, there were no indicators of a goodwill impairment. Goodwill is not deductible for tax purposes. | |||||||||||||||||||||||||
Other intangible assets consisted of the following: | |||||||||||||||||||||||||
Gross Carrying Amount at December 31, 2013 | Accumulated Amortization | Net Carrying Amount at December 31, 2013 | Gross Carrying Amount at March 31, 2013 | Accumulated Amortization | Net Carrying Amount at March 31, 2013 | ||||||||||||||||||||
Trademarks | $ | 47,646 | $ | — | $ | 47,646 | $ | 47,693 | $ | — | $ | 47,693 | |||||||||||||
Developed technology | 10,919 | (2,062 | ) | 8,857 | 10,929 | (1,659 | ) | 9,270 | |||||||||||||||||
Customer relationships | 100,825 | (35,281 | ) | 65,544 | 101,355 | (27,723 | ) | 73,632 | |||||||||||||||||
Backlog | 10,038 | (10,038 | ) | — | 10,167 | (10,167 | ) | — | |||||||||||||||||
Certification | 498 | — | 498 | 498 | — | 498 | |||||||||||||||||||
Other | 1,630 | (998 | ) | 632 | 1,630 | (807 | ) | 823 | |||||||||||||||||
Total | $ | 171,556 | $ | (48,379 | ) | $ | 123,177 | $ | 172,272 | $ | (40,356 | ) | $ | 131,916 | |||||||||||
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ||||||||
Accrued current liabilities consisted of the following: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Accrued employee compensation and related expenses | $ | 5,772 | $ | 8,047 | ||||
Interest | 23 | 4,703 | ||||||
Customer prepayment | 1,723 | 2,197 | ||||||
Warranty reserve | 687 | 552 | ||||||
Professional fees | 1,499 | 1,436 | ||||||
Sales tax payable | 704 | 175 | ||||||
Other | 712 | 1,605 | ||||||
Total accrued current liabilities | $ | 11,120 | $ | 18,715 | ||||
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
Related-Party Transactions | |
Included in our condensed consolidated balance sheets is “Obligations due to settle the CHS Transactions,” which totaled $567 and $3,239 at December 31, 2013 and March 31, 2013, respectively. These amounts represent amounts due to the Predecessor owners in final settlement of the acquisition by our former private equity sponsors of a controlling interest in us that was completed on April 30, 2010. During the three and nine months ended December 31, 2013, we paid $1,960 and $2,055, respectively, to the Predecessor owners, and in the three and nine months ended December 31, 2012, we paid $67 and $203, respectively, to the Predecessor owners, in each case reflected in "Obligations due to settle the CHS Transactions". During the three months ended December 31, 2013, we received an income tax refund from the United States Internal Revenue Service which we paid to the Predecessor owners because the refund related to tax periods in which they were in control of the Company. During the three months ended December 31, 2013, our "Obligations due to settle the CHS Transactions" was additionally reduced by $617, of which $42 was withheld for professional fees incurred by the Company in connection with a concluded audit by the United States Internal Revenue Service and the remaining $575 was determined not to be payable to the Predecessor owners of the Company. At December 31, 2013, the remaining $567 outstanding represents remaining encumbered cash to be released as letters of credit expire. |
ShortTerm_Revolving_Lines_of_C
Short-Term Revolving Lines of Credit | 9 Months Ended |
Dec. 31, 2013 | |
Short-term Debt [Abstract] | ' |
Short-Term Revolving Credit Facilities | ' |
Short-Term Revolving Credit Facilities | |
The Company’s subsidiary in the Netherlands has a revolving credit facility in the amount of Euro 4,000 (equivalent to $5,507 at December 31, 2013). The facility is collateralized by receivables, inventory, equipment, furniture and real estate. No amounts were outstanding under this facility at December 31, 2013 or March 31, 2013. | |
The Company’s subsidiary in India has a revolving credit facility in the amount of 80,000 Rupees (equivalent to $1,292 at December 31, 2013). The facility is collateralized by receivables, inventory, real estate, a letter of credit and cash. No amounts were outstanding under this facility at December 31, 2013 or March 31, 2013. | |
The Company’s subsidiary in Australia has a revolving credit facility in the amount of $325 Australian Dollars (equivalent to $288 at December 31, 2013). The facility is collateralized by real estate. No amounts were outstanding under this facility at December 31, 2013 or March 31, 2013. | |
The Company’s subsidiary in Japan has a revolving credit facility in the amount of 45,000 Japanese Yen (equivalent to $428 at December 31, 2013). No amounts were outstanding under this facility at December 31, 2013 or March 31, 2013. | |
Under the Company’s principal revolving credit facility described below in Note 9, “Long-Term Debt,” there were no outstanding borrowings at either December 31, 2013 or March 31, 2013, respectively. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consisted of the following: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
9.500% Senior Secured Notes, due May 2017 | $ | — | $ | 118,145 | ||||
Variable Rate Term Loan, due April 2018 | 124,875 | — | ||||||
124,875 | 118,145 | |||||||
Less current portion | (13,500 | ) | — | |||||
$ | 111,375 | $ | 118,145 | |||||
Revolving Credit Facility and Senior Secured Debt | ||||||||
Credit facility. On April 19, 2013, we entered into an amended and restated credit agreement with a group of lenders in the United States and Canada with JP Morgan Chase Bank, N.A. continuing to serve as lead administrative agent, which provided for (i) a five-year $135,000 senior secured term loan facility and (ii) a five-year $60,000 senior secured revolving credit facility, which we refer to collectively as our "credit facility". The term loan borrowings were used to redeem our outstanding senior secured notes, see "senior secured notes and refinancing under a term loan" below. | ||||||||
Under our credit facility, in no case shall availability exceed commitments thereunder. The credit facility will mature in April 2018. Any credit facility borrowings will bear interest, at our option, at a rate equal to either (i) a base rate determined by reference to the greatest of (a) JPMorgan Chase Bank's prime rate in New York City, (b) the federal funds effective rate in effect on such day plus ½ of 1% and (c) the adjusted LIBOR rate for a one month interest period on such day plus 1%, in each case plus an applicable margin dictated by our leverage ratio, or (ii) the LIBOR rate, plus an applicable margin dictated by our leverage ratio. Borrowings denominated in Canadian Dollars under the Canadian sub-facility bear interest at our option, at a rate equal to either (i) a base rate determined by reference to the greater of (a) JPMorgan Chase Bank, Toronto branch's prime rate and (b) the sum of (x) the yearly interest rate to which the one-month Canadian deposit offered rate is equivalent plus (y) 1.0%, in each case plus an applicable margin dictated by our leverage ratio, or (ii) a Canadian deposit offered rate determined by the sum of (a) the annual rate of interest determined with reference to the arithmetic average of the discount rate quotations of all institutions listed in respect of the relevant period for Canadian dollar-denominated bankers' acceptances plus (b) 0.10% per annum, plus an applicable margin dictated by our leverage ratio. In addition to paying interest on outstanding borrowings under our credit facility, we are currently required to pay a 0.4% per annum commitment fee to the lenders in respect of the unutilized commitments thereunder, which commitment fee could change based on our leverage ratio, and letter of credit fees equal to the LIBOR margin or the Canadian deposit offered rate, as applicable, on the undrawn amount of all outstanding letters of credit, in addition to a 0.125% annual fronting fee. At December 31, 2013, we had no outstanding borrowings under our revolving credit facility. Had there been any outstanding borrowings thereunder, the interest rate would have been 2.69%. As of December 31, 2013, we had $57,287 of capacity available under our revolving credit facility after taking into account the borrowing base, outstanding loan advances and letters of credit. The variable rate term loan bears interest at the LIBOR rate plus an applicable margin dictated by our leverage ratio. As of December 31, 2013, our interest rate was 2.69%. The term loan includes monthly principal payments of $1,125 through March 31, 2016, increasing to $1,688 for the last two years of the loan. The remaining $54,000 is due in April 2018. | ||||||||
Senior secured notes and refinancing under a term loan. On May 20, 2013, we utilized the proceeds from our new variable rate term loan to redeem the remaining $118,145 of aggregate principal amount outstanding of our 9.5% senior secured notes. In conjunction with the redemption, we paid a total of $15,485 in call premiums and expensed the remaining $4,010 of associated deferred debt issuance costs. | ||||||||
Interest rate swap. On June 13, 2013, the Company entered into an interest rate swap to reduce the exposure to interest rate fluctuations associated with its variable rate term loan. Under the agreement we will pay a fixed amount and receive payments based on a variable interest rate. The terms of the interest rate swap are identical to our commitments and obligations under our variable rate term loan. The swap became effective as of July 31, 2013 and fixed the interest rate of the term loan at 3.62%. | ||||||||
Guarantees; security. The obligations under our credit facility are guaranteed on a senior secured basis by each of our existing and future domestic restricted subsidiaries, including Thermon Industries, Inc., the U.S. borrower under our credit facility. The obligations under our credit facility are secured by a first priority perfected security interest in substantially all of our assets, subject to certain exceptions, permitted liens and encumbrances reasonably acceptable to the administrative agent under our credit facility. | ||||||||
Restrictive covenants. The credit facility contains various restrictive covenants that include restrictions or limitations on our ability to: incur additional indebtedness or issue disqualified capital stock unless certain financial tests are satisfied; pay dividends, redeem subordinated debt or make other restricted payments; make certain investments or acquisitions; issue stock of subsidiaries; grant or permit certain liens on our assets; enter into certain transactions with affiliates; merge, consolidate or transfer substantially all of our assets; incur dividend or other payment restrictions affecting certain of our subsidiaries; transfer or sell assets, including capital stock of our subsidiaries; and change the business we conduct. As of December 31, 2013, we were in compliance with all restrictive covenants of the credit facility. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At December 31, 2013, the Company had in place letter of credit guarantees and performance bonds securing performance obligations of the Company. These arrangements totaled approximately $16,127. Of this amount, $1,040 is secured by cash deposits at the Company’s financial institutions. The remaining $15,087 represents a reduction of the available amount of the Company’s short term and long term revolving lines of credit and performance bonds that the Company has secured. Included in prepaid expenses and other current assets at December 31, 2013 and March 31, 2013, was approximately $1,040 and $1,978, respectively, of cash deposits pledged as collateral on performance bonds and letters of credit. Our Indian subsidiary also has $3,845 in customs bonds outstanding to secure the Company's customs duties obligations in India. | |
The Company is involved in various legal and administrative proceedings that arise from time to time in the ordinary course of doing business. Some of these proceedings may result in fines, penalties or judgments being assessed against us, which may adversely affect our financial results. In addition, from time to time, the Company is involved in various disputes, which may or may not be settled prior to legal proceedings being instituted and which may result in losses in excess of accrued liabilities, if any, relating to such unresolved disputes. As of December 31, 2013, management believes that adequate reserves have been established for any probable losses. Expenses related to litigation reduce operating income. We do not believe that the outcome of any of these proceedings or disputes would have a significant adverse effect on our financial position, long-term results of operations, or cash flows. It is possible, however, that charges related to these matters could be significant to our results of operations or cash flows in any one accounting period. | |
The Company has no outstanding legal matters outside of matters arising in the ordinary course of business, except as described below. We can give no assurances we will prevail in any of these matters. | |
Notice of Tax Dispute with the Canada Revenue Agency. On June 13, 2011, we received notice from the Canada Revenue Agency, which we refer to as the "Agency", advising us that they disagree with the tax treatment we proposed with respect to certain asset transfers that were completed in August 2007 by our Predecessor owners. During fiscal 2013, we were informed by the Agency that their initial audit was concluded but they intended to make an assessment under Canada's General Anti Avoidance Rule. Under this rule, the Agency may assess a withholding tax on dividends deemed to have been made on loans made to our Canadian subsidiary during 2007. Such assessment could be $3,000 plus penalties and interest. At December 31, 2013, we have not recorded a tax liability reserve due for this matter with the Agency as we consider it more likely than not that our tax position will be fully sustained. While we intend to vigorously contest any assessment the Agency may make against us in this matter, we expect that any liability will be covered under an indemnity agreement with the Predecessor owners. | |
Russia Tax Audit. As of December 31, 2013, the Russian tax authority has ongoing tax audits related to our Russian tax returns for the three years ended December 31, 2012. It is reasonably possible that the Russian tax authority will issue an assessment on these open periods. We believe that our tax liabilities are fairly stated and properly reflected in our financial statements. The Russian tax authority has not issued an assessment of tax liability and we have not recorded a contingent liability for any possible assessment, as no loss is reasonably estimable. |
StockBased_Compensation_Expens
Stock-Based Compensation Expense | 9 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation Expense | ' |
Stock-Based Compensation Expense | |
Since the completion of the CHS Transactions on April 30, 2010, the board of directors has adopted and the shareholders have approved two stock option award plans. The 2010 Thermon Group Holdings, Inc. Restricted Stock and Stock Option Plan (“2010 Plan”) was approved on July 28, 2010. The 2010 Plan authorized the issuance of 2,767,171 stock options or restricted shares (on a post-stock split basis). On April 8, 2011, the board of directors approved the Thermon Group Holdings, Inc. 2011 Long-Term Incentive Plan (“2011 LTIP”). The 2011 LTIP made available 2,893,341 shares of the Company’s common stock that may be awarded to employees, directors or non-employee contractor's compensation in the form of stock options, restricted stock awards or restricted stock units. | |
At December 31, 2013, there were 648,903 options outstanding. For the three months ended December 31, 2013 and 2012, stock compensation expense was $663, and $475, respectively, and $1,572 and $869 for the nine months ended December 31, 2013 and 2012, respectively. | |
During the nine months ended December 31, 2013, we issued various stock compensation awards to our directors and employees. During the nine months ended December 31, 2013, 117,904 restricted stock units were granted to certain of our employees. On August 1, 2013, 17,416 restricted stock awards were issued to our directors and a target amount of 43,554 performance stock units were granted to our named executive officers. The closing price on the date of the grants ranged from $19.48 to $22.02. | |
The restricted stock units that were issued to our employees have a total fair value of $2,375 as determined by the closing price of our stock on the date of the grants. The awards will be expensed on a straight-line basis over the service period which ranges from 3 to 5 years. At each anniversary of the restricted stock units' grant date, a proportionate number of restricted stock units will become vested for the employees and the shares will become issued and outstanding. | |
The restricted stock awards issued to our directors have a total fair value of $350 as determined by the closing price of our stock on August 1, 2013 and will be expensed on a straight-line basis over one year. The stock associated with the directors' awards has already been issued and is included in our shares outstanding with voting rights. On the anniversary of the grant date, the restricted stock will fully vest. | |
The performance stock units issued to our four named executive officers have a total fair value at grant date of $480. The performance indicator for these stock awards is based on the market performance of our stock price as compared to a pre-determined peer group of companies with similar business characteristics as ours. Since the performance indicator is market based, we prepared a Monte Carlo valuation model to calculate the probable outcome of the performance measure to arrive at fair value. We will expense the fair value over three years at each of our fiscal year ends during the performance period, whether or not the market condition is met. At the end of each fiscal year, one-third of the performance units will be evaluated. It will then be determined how many shares will be issued. In each year, the possible number of shares that will be issued ranges from zero to 87,108 in aggregate. Shares that are not awarded in a given year will be forfeited. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our anticipated annual effective tax rate before discrete events of approximately 26.1% has been applied to our consolidated pre-tax income for the nine month period ended December 31, 2013. After accounting for discrete events including the benefit of $1,047 for the release of a liability for uncertain tax positions and $575 related to the reduction of previously estimated tax benefits that was determined not to be payable to the Predecessor owners, our effective rate was 18.4%. For the nine months ended December 31, 2012, the Company’s provision for income taxes reflects an effective rate of approximately 34.8% and an after discrete event effective rate of 35.2%. | |
During the nine months ended December 31, 2013, we have adopted a permanent reinvestment position whereby we expect to reinvest our foreign earnings for most of our foreign subsidiaries and do not expect to repatriate future earnings. As a result of this policy change, we will no longer accrue a tax liability in anticipation of future dividends from our foreign subsidiaries. The estimated annual effective tax rate for the fiscal year ending March 31, 2014 reflects the estimated taxable earnings of our various foreign subsidiaries and the applicable local tax rates and after accounting for certain permanent differences, such as nondeductible compensation expenses. | |
For the three month period ended December 31, 2013 and 2012, the Company recorded tax expense of $3,754 and $4,161 on pre-tax income of $16,337 and $11,899, respectively. For the nine month period ended December 31, 2013 and 2012, the Company recorded tax expense of $3,662 and $11,585 on pre-tax income of $19,879 and $32,910, respectively. | |
As of December 31, 2013, we have established a long-term liability for uncertain tax positions in the amount of $672. During the nine month period ended December 31, 2013, we concluded an income tax audit with the United States Internal Revenue Service. As a result of this, we released reserves for uncertain tax positions taken on the periods under examination and recorded a related tax benefit of $1,047 for the nine months ended December 31, 2013. Our remaining unrecognized tax benefits at December 31, 2013 would affect our effective income tax rate if recognized, though the Company does not expect to recognize any tax benefits in the next twelve months. The Company recognizes related accrued interest and penalties as income tax expense and has accrued $45 for the nine months ended December 31, 2013. | |
With the conclusion of the audit with the United States Internal Revenue Service, we received a refund of $2,000. This amount related to tax periods associated with our Predecessor owners and was therefore payable as part of "Obligations due to settle the CHS Transactions", see Note 7. Related -Party Transactions. The payment of this refund represented the final transaction tax benefit due to the Predecessor owners. Accordingly, we released $575 of additional estimated tax benefits as a reduction of tax expense that we determined would not be realized and are no longer payable. | |
As of December 31, 2013, the tax years 2006 through 2013 remain open to examination by the major taxing jurisdictions to which we are subject, except for the United States federal income tax returns, where the federal income tax return for fiscal 2012 and 2013 remain open. The Company's Canadian federal income tax returns are under exam for the Predecessor's tax years ended March 31, 2008, 2009 and 2010. See Note 10. Commitments and Contingencies. |
Geographic_Information
Geographic Information | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Geographic Information | ' | |||||||||||||||
Geographic Information | ||||||||||||||||
We have defined our operating segments based on geographic regions. These regions share similar economic characteristics, product mix, customers and distribution methods. Accordingly, we have elected to aggregate these geographic regions into a single reportable segment. | ||||||||||||||||
Within our one reportable segment, we present additional detail for those countries or regions that generate significant revenue and operating income. For purposes of this note, revenue is attributed to individual countries or regions on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services. | ||||||||||||||||
Total sales and income from operations are classified by major geographic area in which the Company operates are as follows: | ||||||||||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Sales by geographic area: | ||||||||||||||||
United States | $ | 22,921 | $ | 21,922 | $ | 67,759 | $ | 61,614 | ||||||||
Canada | 23,282 | 27,996 | 74,450 | 73,707 | ||||||||||||
Europe | 16,824 | 13,703 | 44,317 | 44,586 | ||||||||||||
Asia | 8,438 | 13,209 | 23,322 | 32,462 | ||||||||||||
$ | 71,465 | $ | 76,830 | $ | 209,848 | $ | 212,369 | |||||||||
Operating income: | ||||||||||||||||
United States | $ | 5,306 | $ | 3,427 | $ | 9,645 | $ | 12,706 | ||||||||
Canada | 8,716 | 10,559 | 26,616 | 25,859 | ||||||||||||
Europe | 3,453 | (343 | ) | 7,138 | 3,234 | |||||||||||
Asia | 1,239 | 2,471 | 3,381 | 5,434 | ||||||||||||
Unallocated: | ||||||||||||||||
Stock compensation | (663 | ) | (475 | ) | (1,572 | ) | (869 | ) | ||||||||
Public company costs | (293 | ) | (386 | ) | (942 | ) | (1,234 | ) | ||||||||
$ | 17,758 | $ | 15,253 | $ | 44,266 | $ | 45,130 | |||||||||
Basis_of_Presentation_and_Acco1
Basis of Presentation and Accounting Policy Information (Policies) | 9 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
Generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. While our management has based their assumptions and estimates on the facts and circumstances existing at December 31, 2013, actual results could differ from those estimates and affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the corresponding revenues and expenses as of the date of the financial statements. The operating results for the nine months ended December 31, 2013 are not necessarily indicative of the results that may be achieved for the fiscal year ending March 31, 2014. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Presentation of Comprehensive Income - In February 2013, the Accounting Standards Codification (ASC) ASC Topic 220, "Comprehensive Income," was amended to require an entity to disclose information about the amounts reclassified out of accumulated other comprehensive income by component. For amounts required to be reclassified out of accumulated other comprehensive income in their entirety in the same reporting period, the guidance requires entities to present significant amounts by their respective line items of net income, either on the face of the income statement or in the notes to the financial statements. For other amounts that are not required to be reclassified to net income in their entirety, a cross-reference is required to other disclosures that provide additional details about those amounts. These provisions are effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance effective April 1, 2013 did not have a material impact on our condensed consolidated financial statements. | |
Fair Value Measurements and Disclosures - The FASB issued an Accounting Standard Update ("ASU") in December 2011, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of these arrangements on its financial position. The guidance requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB amended and clarified the scope of the disclosures to include only derivative instruments, repurchase agreements and securities lending transactions. The provisions for this ASU are effective for annual periods and interim periods within those years beginning on or after January 1, 2013. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. |
Basis_of_Presentation_and_Acco2
Basis of Presentation and Accounting Policy Information (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' | ||||||||
Though the correction of the classification errors had no effect on our gross profit, it did result in a slight reduction to our previously reported gross profit as a percentage of revenue as follows below: | |||||||||
Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2012 | ||||||||
As reported: | |||||||||
Sales | $ | 76,750 | $ | 211,321 | |||||
Cost of sales | 41,799 | 110,392 | |||||||
Gross profit | 34,951 | 100,929 | |||||||
Gross profit as a percentage of revenue | 45.5 | % | 47.8 | % | |||||
Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2012 | ||||||||
As corrected: | |||||||||
Sales | $ | 76,830 | $ | 212,369 | |||||
Cost of sales | 41,879 | 111,440 | |||||||
Gross profit | 34,951 | 100,929 | |||||||
Gross profit as a percentage of revenue | 45.5 | % | 47.5 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Schedule of long-term debt that is not measured at fair value | ' | |||||||||||||||||
Information about our long-term debt that is not measured at fair value is as follows: | ||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | Valuation Technique | ||||||||||||||
Value | Value | |||||||||||||||||
Financial Liabilities | ||||||||||||||||||
Long-term debt | $ | 124,875 | $ | 124,875 | $ | 118,145 | $ | 131,436 | Level 2 - Market Approach | |||||||||
Schedule of notional amounts of forward contracts held in foreign currencies | ' | |||||||||||||||||
As of December 31, 2013 and March 31, 2013, the notional amounts of forward contracts we held to buy U.S. Dollars in exchange for other major international currencies were as follows: | ||||||||||||||||||
Notional amount of foreign currency forward contracts by currency | ||||||||||||||||||
31-Dec-13 | March 31, 2013 | |||||||||||||||||
Russian Ruble | $ | 544 | $ | 4,233 | ||||||||||||||
Euro | 7,077 | 2,510 | ||||||||||||||||
Canadian Dollar | 2,034 | 2,134 | ||||||||||||||||
South Korean Won | — | 919 | ||||||||||||||||
Other | — | 329 | ||||||||||||||||
Total notional amounts | $ | 9,655 | $ | 10,125 | ||||||||||||||
Schedule of fair value of foreign currency forward contracts | ' | |||||||||||||||||
The following table represents the fair value of our foreign currency forward contracts: | ||||||||||||||||||
31-Dec-13 | March 31, 2013 | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 2 | $ | 16 | $ | 87 | $ | 32 | ||||||||||
Schedule of unrealized loss in accumulated other comprehensive loss | ' | |||||||||||||||||
The following table summarizes the aggregate unrealized gain in accumulated other comprehensive loss, and the losses reclassified into earnings for the three and nine months ended December 31, 2013 (amounts in thousands): | ||||||||||||||||||
Three Months Ended December 31, 2013 | Nine Months Ended December 31, 2013 | |||||||||||||||||
Unrealized gain/(loss) at beginning of the period | $ | (304 | ) | $ | — | |||||||||||||
Add: gain/(loss) from change in fair value of cash flow hedge | 91 | (418 | ) | |||||||||||||||
Less: Loss reclassified to earnings from effective hedge | (303 | ) | (508 | ) | ||||||||||||||
Unrealized gain at end of the period | $ | 90 | $ | 90 | ||||||||||||||
Earnings_and_Net_Income_Loss_p1
Earnings and Net Income (Loss) per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of reconciliation of the denominators used to calculate basic EPS and diluted EPS | ' | |||||||||||||||
The reconciliations of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended December 31, 2013 and 2012, respectively, are as follows: | ||||||||||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Basic net income per common share | ||||||||||||||||
Net income | $ | 12,583 | $ | 7,738 | $ | 16,217 | $ | 21,325 | ||||||||
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 | ||||||||||||
Basic net income per common share | $ | 0.4 | $ | 0.25 | $ | 0.51 | $ | 0.7 | ||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Diluted net income per common share | ||||||||||||||||
Net income | $ | 12,583 | $ | 7,738 | $ | 16,217 | $ | 21,325 | ||||||||
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 | ||||||||||||
Common share equivalents: | ||||||||||||||||
Stock options | 473,364 | 868,110 | 543,376 | 1,028,056 | ||||||||||||
Restricted and performance stock units | 61,308 | 55,923 | 36,449 | 24,865 | ||||||||||||
Weighted average shares outstanding – dilutive (1) | 32,224,559 | 31,871,097 | 32,086,570 | 31,725,724 | ||||||||||||
Diluted net income per common share | $ | 0.39 | $ | 0.24 | $ | 0.51 | $ | 0.67 | ||||||||
(1) 50,307 and 168,211 equity awards were not included in the calculation of diluted net income per common share since they would have had an anti-dilutive effect for the three and nine months ended December 31, 2013, respectively. For the three and nine months ended December 31, 2012 56,532, equity awards were not included in the calculation of diluted net income per common share as they were anti-dilutive. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 12,532 | $ | 10,232 | ||||
Work in process | 3,383 | 1,685 | ||||||
Finished goods | 25,411 | 23,550 | ||||||
41,326 | 35,467 | |||||||
Valuation reserves | (1,233 | ) | (1,076 | ) | ||||
Inventories, net | $ | 40,093 | $ | 34,391 | ||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of carrying amount of goodwill | ' | ||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Balance as of March 31, 2013 | $ | 116,303 | |||||||||||||||||||||||
Foreign currency translation impact | (467 | ) | |||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 115,836 | |||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
At December 31, 2013, there were no indicators of a goodwill impairment. Goodwill is not deductible for tax purposes. | |||||||||||||||||||||||||
Other intangible assets consisted of the following: | |||||||||||||||||||||||||
Gross Carrying Amount at December 31, 2013 | Accumulated Amortization | Net Carrying Amount at December 31, 2013 | Gross Carrying Amount at March 31, 2013 | Accumulated Amortization | Net Carrying Amount at March 31, 2013 | ||||||||||||||||||||
Trademarks | $ | 47,646 | $ | — | $ | 47,646 | $ | 47,693 | $ | — | $ | 47,693 | |||||||||||||
Developed technology | 10,919 | (2,062 | ) | 8,857 | 10,929 | (1,659 | ) | 9,270 | |||||||||||||||||
Customer relationships | 100,825 | (35,281 | ) | 65,544 | 101,355 | (27,723 | ) | 73,632 | |||||||||||||||||
Backlog | 10,038 | (10,038 | ) | — | 10,167 | (10,167 | ) | — | |||||||||||||||||
Certification | 498 | — | 498 | 498 | — | 498 | |||||||||||||||||||
Other | 1,630 | (998 | ) | 632 | 1,630 | (807 | ) | 823 | |||||||||||||||||
Total | $ | 171,556 | $ | (48,379 | ) | $ | 123,177 | $ | 172,272 | $ | (40,356 | ) | $ | 131,916 | |||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued current liabilities | ' | |||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Accrued employee compensation and related expenses | $ | 5,772 | $ | 8,047 | ||||
Interest | 23 | 4,703 | ||||||
Customer prepayment | 1,723 | 2,197 | ||||||
Warranty reserve | 687 | 552 | ||||||
Professional fees | 1,499 | 1,436 | ||||||
Sales tax payable | 704 | 175 | ||||||
Other | 712 | 1,605 | ||||||
Total accrued current liabilities | $ | 11,120 | $ | 18,715 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of long-term debt | ' | |||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
9.500% Senior Secured Notes, due May 2017 | $ | — | $ | 118,145 | ||||
Variable Rate Term Loan, due April 2018 | 124,875 | — | ||||||
124,875 | 118,145 | |||||||
Less current portion | (13,500 | ) | — | |||||
$ | 111,375 | $ | 118,145 | |||||
Geographic_Information_Tables
Geographic Information (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Total sales and operating income classified by major geographic area in which the company operates | ' | |||||||||||||||
Three Months Ended December 31, 2013 | Three Months Ended December 31, 2012 | Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Sales by geographic area: | ||||||||||||||||
United States | $ | 22,921 | $ | 21,922 | $ | 67,759 | $ | 61,614 | ||||||||
Canada | 23,282 | 27,996 | 74,450 | 73,707 | ||||||||||||
Europe | 16,824 | 13,703 | 44,317 | 44,586 | ||||||||||||
Asia | 8,438 | 13,209 | 23,322 | 32,462 | ||||||||||||
$ | 71,465 | $ | 76,830 | $ | 209,848 | $ | 212,369 | |||||||||
Operating income: | ||||||||||||||||
United States | $ | 5,306 | $ | 3,427 | $ | 9,645 | $ | 12,706 | ||||||||
Canada | 8,716 | 10,559 | 26,616 | 25,859 | ||||||||||||
Europe | 3,453 | (343 | ) | 7,138 | 3,234 | |||||||||||
Asia | 1,239 | 2,471 | 3,381 | 5,434 | ||||||||||||
Unallocated: | ||||||||||||||||
Stock compensation | (663 | ) | (475 | ) | (1,572 | ) | (869 | ) | ||||||||
Public company costs | (293 | ) | (386 | ) | (942 | ) | (1,234 | ) | ||||||||
$ | 17,758 | $ | 15,253 | $ | 44,266 | $ | 45,130 | |||||||||
Basis_of_Presentation_and_Acco3
Basis of Presentation and Accounting Policy Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Apr. 30, 2010 | Dec. 31, 2013 | Apr. 30, 2010 |
Scenario, Previously Reported | Scenario, Previously Reported | Restatement Adjustment | Restatement Adjustment | Thermon Holding Corp. | Thermon Holding Corp. | Thermon Holding Corp. | |||||
Scenario, Previously Reported | Group of investors and other private equity firms | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other private equity firms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Cost of selling controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | $321,500 | ' | ' |
Business Combination, Acquirer's Disclosure, Consideration Transferred, Equity Interests | ' | ' | ' | ' | ' | ' | ' | ' | 129,252 | ' | ' |
Business Combination, Acquirer's Disclosure, Consideration Transferred, Liabilities Incurred | ' | ' | ' | ' | ' | ' | ' | ' | 210,000 | ' | ' |
Sales | 71,465 | 76,830 | 209,848 | 212,369 | 76,750 | 211,321 | 80 | 1,048 | ' | ' | ' |
Cost of sales | 35,409 | 41,879 | 107,423 | 111,440 | 41,799 | 110,392 | ' | ' | ' | ' | ' |
Gross profit | $36,056 | $34,951 | $102,425 | $100,929 | $34,951 | $100,929 | ' | ' | ' | ' | ' |
Gross profit as a percentage of revenue | ' | 45.50% | ' | 47.50% | 45.50% | ' | ' | ' | ' | 47.80% | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Liabilities, Long-term debt | ' | ' |
Carrying Value | $124,875 | $118,145 |
Fair Value | $124,875 | $131,436 |
Fair_Value_Measurements_Foreig
Fair Value Measurements - Foreign Exchange Contracts (Details) (Thermon Holding Corp., USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Maximum term of forward contracts | ' | ' | '30 days | ' | ' |
Net Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $117 | $242 | $353 | $181 | ' |
Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Foreign exchange contract forwards, assets | 2 | ' | 2 | ' | 87 |
Foreign exchange contract forwards, liabilities | 16 | ' | 16 | ' | 32 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $144 | ($425) | $350 | ($164) | ' |
Fair_Value_Measurements_Foreig1
Fair Value Measurements - Foreign Exchange Contracts by Currency (Details) (Thermon Holding Corp., USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Foreign Currency Transaction Gain (Loss), Net of Impact of Foreign Currency Derivatives on Earnings | ($117) | ($242) | ($353) | ($181) | ' |
Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 144 | -425 | 350 | -164 | ' |
Notional amount | 9,655 | ' | 9,655 | ' | 10,125 |
Russian Rubles | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Notional amount | 544 | ' | 544 | ' | 4,233 |
Euro | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Notional amount | 7,077 | ' | 7,077 | ' | 2,510 |
Canadian Dollars | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Notional amount | 2,034 | ' | 2,034 | ' | 2,134 |
South Korean Won | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Notional amount | 0 | ' | 0 | ' | 919 |
Other | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Notional amount | $0 | ' | $0 | ' | $329 |
Fair_Value_Measurements_Swap_D
Fair Value Measurements - Swap (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Unrealized Loss In Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' |
Unrealized net gain (loss), beginning of period | ($304) | $0 |
Add: gain/(loss) from change in fair value of cash flow hedge | 91 | -418 |
Less: Loss reclassified to earnings from effective hedge | -303 | -508 |
Unrealized net gain (loss), end of period | 90 | 90 |
Interest Rate Contract [Member] | ' | ' |
Unrealized Loss In Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $90 | $90 |
Earnings_and_Net_Income_Loss_p2
Earnings and Net Income (Loss) per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,307 | 50,307 | 168,211 | 56,532 |
Basic net income (loss) per common share | ' | ' | ' | ' |
Net income (loss) | $12,583 | $7,738 | $16,217 | $21,325 |
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 |
Basic net income (loss) per common share (in dollars per share) | $0.40 | $0.25 | $0.51 | $0.70 |
Diluted net income (loss) per common share | ' | ' | ' | ' |
Net income (loss) | $12,583 | $7,738 | $16,217 | $21,325 |
Weighted-average common shares outstanding | 31,689,887 | 30,947,064 | 31,506,745 | 30,672,803 |
Diluted (in shares) | 32,224,559 | 31,871,097 | 32,086,570 | 31,725,724 |
Diluted net income (loss) per common share (in dollars per share) | $0.39 | $0.24 | $0.51 | $0.67 |
Equity Option | ' | ' | ' | ' |
Diluted net income (loss) per common share | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 473,364 | 868,110 | 543,376 | 1,028,056 |
Restricted Stock Units | ' | ' | ' | ' |
Diluted net income (loss) per common share | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 61,308 | 55,923 | 36,449 | 24,865 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Line Items] | ' | ' |
Raw materials | $12,532 | $10,232 |
Work in process | 3,383 | 1,685 |
Finished goods | 25,411 | 23,550 |
Inventories, gross | 41,326 | 35,467 |
Valuation reserves | -1,233 | -1,076 |
Inventories, net | $40,093 | $34,391 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill | ' |
Balance at the beginning of the period | $116,303 |
Foreign currency translation impact | -467 |
Balance at the end of the period | $115,836 |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ($48,379) | ($40,356) |
Intangible Assets, Net (Excluding Goodwill) | 123,177 | 131,916 |
Intangible Assets, Gross (Excluding Goodwill) | 171,556 | 172,272 |
Developed Technology Rights [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 10,919 | 10,929 |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,062 | -1,659 |
Finite-Lived Intangible Assets, Net | 8,857 | 9,270 |
Customer Relationships [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 100,825 | 101,355 |
Finite-Lived Intangible Assets, Accumulated Amortization | -35,281 | -27,723 |
Finite-Lived Intangible Assets, Net | 65,544 | 73,632 |
Order or Production Backlog [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 10,038 | 10,167 |
Finite-Lived Intangible Assets, Accumulated Amortization | -10,038 | -10,167 |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Other Intangible Assets [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,630 | 1,630 |
Finite-Lived Intangible Assets, Accumulated Amortization | -998 | -807 |
Finite-Lived Intangible Assets, Net | 632 | 823 |
Trademarks [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 47,646 | 47,693 |
Certification Marks [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $498 | $498 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued employee compensation and related expenses | $5,772 | $8,047 |
Interest | 23 | 4,703 |
Customer prepayment | 1,723 | 2,197 |
Warranty reserve | 687 | 552 |
Professional fees | 1,499 | 1,436 |
Sales tax payable | 704 | 175 |
Other | 712 | 1,605 |
Total accrued current liabilities | $11,120 | $18,715 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' | ' |
Obligations due to settle the CHS Transactions | $567 | ' | $567 | ' | $3,239 |
Payments to Acquire Businesses, Net of Cash Acquired | 1,960 | 67 | 2,055 | 203 | ' |
Non-cash Reduction of Related Party Liability | 617 | ' | ' | ' | ' |
Professional Fees Withheld to Settle Related Party Transactions | 42 | ' | ' | ' | ' |
Amounts Determined not to be Payable to Predecessor Owners | $575 | ' | ' | ' | ' |
ShortTerm_Revolving_Lines_of_C1
Short-Term Revolving Lines of Credit (Details) | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Netherlands | India | India | Australia | Australia | Japan | Japan | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Euro Member Countries, Euro | India, Rupees | Australia, Dollars | Japan, Yen | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Netherlands | India | Australia | Japan | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | |
USD ($) | USD ($) | USD ($) | USD ($) | Netherlands | India | Australia | Japan | ||||||||||
EUR (€) | INR | AUD | JPY (¥) | ||||||||||||||
Short-Term Revolving Lines of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,507,000 | $1,292,000 | $288,000 | $428,000 | € 4,000,000 | 80,000,000 | 325,000 | ¥ 45,000,000 |
Outstanding borrowings | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | 20-May-13 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
9.500% Senior Secured Notes, due May 2017 | 9.500% Senior Secured Notes, due May 2017 | 9.500% Senior Secured Notes, due May 2017 | Loans Payable [Member] | Loans Payable [Member] | Revolving credit facility | Revolving credit facility | London Interbank Offered Rate (LIBOR) [Member] | Minimum | Maximum | Through March 31, 2016 | Last Two Years Of Loan | Due in April 2018 | |||
Thermon Industries, Inc. | Base Rate [Member] | Base Rate [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | $135,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 2.69% | ' | 2.69% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 124,875,000 | 118,145,000 | 118,145,000 | 0 | 118,145,000 | 124,875,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption Premium | ' | ' | 15,485,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion | -13,500,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, noncurrent | 111,375,000 | 118,145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' |
Capacity available under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 57,287,000 | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 2.69% | ' | ' | ' | ' | ' | ' |
Interest rate in addition to LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 0.50% | 1.00% | ' | ' | ' |
Annual commitment fee on unutilized commitments (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.40% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fee | ' | ' | ' | ' | ' | ' | ' | '.00125 | ' | ' | ' | ' | ' | ' | ' |
Deferred debt amortization | ' | ' | 4,010,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,125,000 | $1,688,000 | $54,000,000 |
Derivative, Fixed Interest Rate | 3.62% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Notice of Tax Dispute with the Canada Revenue Agency | ||
Commitments and Contingencies | ' | ' | ' |
Totaled arrangements under letter of credit guarantees and performance bonds securing performance obligations | $16,127 | ' | ' |
Guarantee obligations secured by cash deposits | 1,040 | ' | ' |
Guarantee obligations represented by a reduction of the available amount of the company's short term and long term revolving lines of credit | 15,087 | ' | ' |
Cash deposits pledged as collateral on performance bonds and letters of credit | 1,040 | 1,978 | ' |
Indian Custom Bonds Outstanding [Member] | 3,845 | ' | ' |
Tax due that is requested by the Agency | ' | ' | $3,000 |
StockBased_Compensation_Expens1
Stock-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 28, 2010 | Jul. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Stock_Option_Award_Plans | Minimum | Maximum | Restricted Stock and Stock Option Plan [Member] | 2011 Long-term Incentive Plan | Restricted Stock Units | Restricted Stock | Performance Shares | ||||
Stock-Based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock option award plans | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of the company's common stock that may be awarded | ' | ' | ' | ' | ' | ' | 2,767,171 | 2,893,341 | ' | ' | ' |
Options outstanding (in shares) | 648,903 | ' | 648,903 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | $663 | $475 | $1,572 | $869 | ' | ' | ' | ' | ' | ' | ' |
Stock awards granted in period | ' | ' | ' | ' | ' | ' | ' | ' | 117,904 | 17,416 | 43,554 |
Closing price per share | ' | ' | ' | ' | $19.48 | $22.02 | ' | ' | ' | ' | ' |
Assumptions used to estimate grant date fair value of employee stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | $2,375 | $350 | $480 |
Share Based Compensation Arrangement, Possible Number Of Shares Issued Each Year | ' | ' | ' | ' | 0 | 87,108 | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2010 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Annual effective tax rate before discrete events | ' | ' | 26.10% | 34.80% | ' |
Annual effective tax rate after discrete events | ' | ' | 18.40% | 35.20% | ' |
Income tax expense | $3,754 | $4,161 | $3,662 | $11,585 | ' |
Pre-tax income (loss) | 16,337 | 11,899 | 19,879 | 32,910 | ' |
Long-term liability for uncertain tax positions | 672 | ' | 672 | ' | ' |
Income tax expense (benefit) recorded due to release of liability recorded for income tax uncertainties | ' | ' | -1,047 | ' | ' |
Amounts Determined not to be Payable to Predecessor Owners | 575 | ' | ' | ' | ' |
Interest and penalties accrued as income tax expense | ' | ' | 45 | ' | ' |
Proceeds from Income Tax Refunds | ' | ' | ' | ' | $2,000 |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segments | ||||
Sales by geographic area: | ' | ' | ' | ' |
Revenues | $71,465 | $76,830 | $209,848 | $212,369 |
Operating income | ' | ' | ' | ' |
Public company costs | -293 | -386 | -942 | -1,234 |
Operating income (loss) | 17,758 | 15,253 | 44,266 | 45,130 |
Number of Reportable Segments | ' | ' | 1 | ' |
United States | ' | ' | ' | ' |
Sales by geographic area: | ' | ' | ' | ' |
Revenues | 22,921 | 21,922 | 67,759 | 61,614 |
Operating income | ' | ' | ' | ' |
Operating income (loss) | 5,306 | 3,427 | 9,645 | 12,706 |
Canada | ' | ' | ' | ' |
Sales by geographic area: | ' | ' | ' | ' |
Revenues | 23,282 | 27,996 | 74,450 | 73,707 |
Operating income | ' | ' | ' | ' |
Operating income (loss) | 8,716 | 10,559 | 26,616 | 25,859 |
Europe | ' | ' | ' | ' |
Sales by geographic area: | ' | ' | ' | ' |
Revenues | 16,824 | 13,703 | 44,317 | 44,586 |
Operating income | ' | ' | ' | ' |
Operating income (loss) | 3,453 | -343 | 7,138 | 3,234 |
Asia | ' | ' | ' | ' |
Sales by geographic area: | ' | ' | ' | ' |
Revenues | 8,438 | 13,209 | 23,322 | 32,462 |
Operating income | ' | ' | ' | ' |
Operating income (loss) | 1,239 | 2,471 | 3,381 | 5,434 |
Unallocated | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' |
Other | ($663) | ($475) | ($1,572) | ($869) |