THR - Earnings call transcript Q2 2018 | Thermon Group Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to the Thermon Manufacturing Company’s Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] I would now like to introduce your host for today’s presentation, Ms. Alexander. Sarah begin. please Ma’am,

Sarah Alexander

with the Good section today’s thank issued earnings this on been press Howard. and Form joining also our is an Any all of will via webcast us release available retransmission available filed has at which A for conference Investor this This morning SEC morning in you, without website on call. be any you www.thermon.com. Thermon. X-K company replay consent Relations and the the for earnings also the of of prohibited. property Thank broadcast rebroadcast call. We or expressed is the redistribution, of today’s conclusion of is call form after the written

forward-looking actual subject and today. this and uncertainties may risks results statements are the During comments statements. our call, views our to materially may differ from include expressed These forward-looking

have of and report our annual release these forth Some press XX-K May. risks in the in in Form been on set filed

advise growth, forward-looking like Safe of also that intended the acquisitions, our future others, provisions fall statements our within include, Act XXXX. aspects may synergies statements call other ratios, revenue today’s outlook These Private you various are of of We performance, made Harbor Litigation the on profitability, among Reform leverage to would to Securities acquisition for all and business.

conform During the call, Accepted Generally to not Principles. items also Accounting discuss do we will that some

measures it’s Executive accordance President release. my at not in Bruce in Officer. performance call and considered We Thames, have Chief These now, addition be our for pleasure And over tables as GAAP should measures earnings to reconciled the measures a in substitute the financial comparable GAAP. items end to reported most non-GAAP of of to those and the turn with the the press to

Bruce Thames

call. increase project quarters $X saw orders, operations. restoring next Otherwise, million assist an modestly at safely Good second an during me in the by backlog, morning, Jay you and for with conversion improved Sarah. conference thank in XX% in the improved the of the CFO, North U.S., in on Jay projects Today, and improved and quarter. the on everyone XX% do The backlog your customers joining interest XX% Greenfield Greenfield approximately XX% by we growth year-over-year details Overall, Thermon. our basis me we larger levels Harvey of negatively the respectively and as lower management and XXX year. continued U.S. drivers but on mix margins In down the points America. two were Margins in conference slower MRO/UE in the Peterson, XXXX present and begin QX. our fiscal Hemisphere. the of the call XX% we and Eastern financial for over will Thank with execution and field we with follow anticipate have we joining you, versus financials. stronger and business revenues in To in our overview to improved Greenfield operating in quarters. overall in impacted were activity prior short-term, particularly Revenues performance Hurricane are the pleased a MRO/UE EBITDA margins, our

in X% XXX to the lowest saw averages and during from oil but X% our below the we levels X% improvement backlog QX Backlog downturn. advance historical approximately addition, continued in margin and In increased gas of margins of points. have point, basis remain

increased recover. order U.S. XXXX Weakness EMEA of projects in the projects cycle Latin pricing the power we EPS in order rate and per $X.XX bookings America margin share flat fiscal steady, in seeing a to and oil prior U.S. a America. second and geographic Greenfield backlog market was GAAP to projects Canada, and Eastern respectively. a half. materialize million robust in we have Latin From projects U.S. wave begins XX% With year QX U.S. the as also in and While share finished $X.XX power at sustained the competitive year. in Both revenue QX getting the versus the for $XX.X continued QX Overall, will a spending Eastern Visibility and are the perspective, increase the million as growth QX. in and petrochemical maintenance the over of of margin U.S. Canada largely conversion record are are year-over-year was $X.XX Greenfield and the the and project some share began remains continued consecutively. adjusted very Asia-Pacific with a XX% second were was we by in anticipated America Hemisphere, of XX% highly prior be and on showing chemical and showed gas to improved into capital the and the coming the pleased early remains The the a and overall signs Combined consecutively the and After sectors sector of XX% slow is bookings headwinds, Eastern particularly recovery North down and throughout see up of to the $XXX the was created The spending quarter new strength year-over-year, geography. on maintenance backlog the pressure backlog projects from attributable active to Backlog although half as pleased petrochemical are second petrochemical shift from book-to-bill with in year. whereas anticipate remain Hemisphere very projects. but upcoming Hemisphere. Geographically, the we XX% smaller of shipments XXX%, incoming moderating increase the to in into improving some is very at underway. of trend second and spending majority growth

the year. in second the increasing Looking of we see ahead, Greenfield half activity this

achieve ability are reductions our anticipated EBITDA of earlier the targets from revenues implemented quarter. down the in prior the cost and to margins have Although on year, to stronger favorable impact be we

in projects to on project approximately and The opportunities relatively our in pipeline. XXX at total number $XXX within of value respectively. our revenues identified over pipeline million remains stable Moving

in ultimately power for to leverages the believe Thermon and The standard we We in launching continue a a any with intended business WebExpress, drive are heat smaller of of business. projects circuits CompuTrace success. less. new material suite become generates design projects. maintenance is device, the our The mobile to database the future for for and new smaller the design intended or full application development product is MRO/UE on XX software position bill to industry tracing the will Today, invest easy-to-use application we and

later have announcements year. The several We CCI we new in as the within product and progressing closing fiscal acquisition Thermal weeks. next more anticipate the is will planned

add please excluding million to revenues the purchase-related note from in year to is expect We in for expenses. this fiscal $XX an this estimated at XXXX. margin inorganic EBITDA $XX million any XX% And XX% acquisition to one-time

provide will more We on the earnings information detailed QX acquisition our call. during

remains robust, the pipeline to M&A shift allocation capital will debt our near-term in reduction. our While

to higher Based Looking our strong backlogs and revenues year. status improvements Canada organic the year. relative backlog translate second into in the of to to of projects anticipate for forward, in the engineering, prior in the we half achieve plans line the provide revenue upon the sight

timing we and more XXXX. the lower Any range to offset of be project end actions. exposed result, single-digit impact favorable exposure our being fiscal by prior confirming a of are for guidance of prior mid to to due should organic margins upward low decline year the to relative than As cost revenue the

acquisition end-markets. the optimistic operating with address Jay the our and performance the improved positioned are seeing on two These with are the for for details Thermal we recovery cautiously will now of XXXX. combined well for performance We our the Thank future positive again CCI many of our remain you factors of us a company QX CFO pleased signs pending Jay? joining today. in Peterson, success. financial

Jay Peterson

would you, fiscal start guidance by Good to of morning. then year. this and I discussing our Thank results the financial updated revenue conclude QX balance Bruce. with for like

to financial financials month. earlier the of relative of all ended this to off, pre-release selected First of in the results range our our mid high-end

off experienced both hemispheres. in growth orders for revenue, Let’s grew orders and XX% terms year-on-year and with top order the quarter XX% in we and start line, of our sequentially

$XXX revenues, XX% Our XX% Greenfield whereas approximately to declined positively up MRO/UE of by decreased year MRO/UE And for that’s year-on-year. $X.X quarter over backlog translation QX by impacted record XX% capital totaled whereas million quarter by the due XX%. a of X%. Greenfield ended currency million. the revenues prior mix with FX and continued spending, was delays We revenue our in

in basis In we backlog continue several our addition, protraction last our in are also over the experience a to And points in up turns year, the mentioned margins XXX times, backlog. as year-on-year.

approximately within quarter to XX continued to fourth to quarter at turns positive would XX capital months. marks XXX% the our backlog in of for depression our And have present, the example, our was XX book-to-bill contributed this to At our ago, turn the XX positive a in consecutive due in to XX months turns and our performance. protraction months. typically book-to-bill spending, backlog increased For

gross favorable cost XXX basis and to to margins this on Greenfield points strong margins, Moving improved pricing to past by controls. and continued continued mix MRO/UE quarter due

For the increased Greenfield margins the period, XXX margins prior XXX quarter, basis over increased basis points. points MRO/UE by by whereas

$XX.X amortization transaction acquisition. totaled this expense excludes $XX.X in SG&A core of $XXX,XXX intangibles upcoming and headcount, quarter expenses the and OpEx to prior approximately versus for million quarter, And quarter. in related million the year this to operating the the Turning that and is depreciation of includes CCI

revenue of as September amortization. September excluding OpEx the of at as a of XXXX. number Our and versus depreciation was employees was full-time again end of percent calendar XXX XX%, The XXX

share quarter to of increase due from share GAAP levels. cash increase and an the earnings, inventory of prior and prior $X.XX terms our $X.XX share a down a free year In XX% flow primarily the per compared EPS $X.XX to in totaled a totaled that’s of for year an EPS

historical percent in EBITDA million and and that the XXXX. quarter acquired companies much EBITDA as the $XX.X anticipate what we totaled by a to the and deliver we impacted Our positively in of our closer XX% grew future. by improved was revenue fiscal to in to year XX.X% our note levels And EBITDA

sheet, months, balance ended EBITDA Next, sheet. the to we balance million and debt by investment balance at debt million prior leverage on we our our our have our million. will quarter. this $XX acquisition, our And decreased Post $XX net will with X.Xx at cash in be cash concurrent XX worldwide cash million our approximately balance $XX.X over and $XX growing by balance past

our costs service Strong Our EBITDA cash will $XX excludes will approximately guidance debt de-levering X.Xx de-levered net capability currently million. increasing We while levels, debt leverage EBITDA flows this current levels anticipate how to quite businesses is million down debt post forma And with annual associated XX%. actually from the create issuance to our by next business. within by approach more IPO. $XX for combined debt financial from this business and And XX% XX business to our or lastly, the the the similar from balance operate we concurrent this the of year. to comfortably decrease approximately pro the debt and months our to

our a mid decline maintaining fiscal to are low to ‘XX. single-digit organic We year guidance for

order lower revenue our backlog were we we strong guidance. us increasing growth and enable levels will Although anticipated, than achieve this QX believe to our

session. In year. anticipate Q&A of revenue call to like Howard our $XX in the over and fiscal to generate to of now with CCI the $XX the transaction end would million Howard? between the addition, to million turn we moderate to our I close

Operator

comes comment [Operator Brian the or Instructions] Our from first Drab line question Blair. from William of

Your is open. line

Brian Drab

Hi, questions. Thanks taking for my good morning.

Bruce Thames

Brian. morning, Good

Brian Drab

guess that topic First flow through are approximately expenses in just EPS? XX% XX% specifically you costs. reduction on as just to adjusted giving a the service interest about of Can reduction guidance the little one, I your interest you the the relates amount to debt can – expense, in talk expense, just about you it interest the clarify, maybe more would

Jay Peterson

Yes.

So, is component. there amortization

and amortization to component, from the X.X% the or X.X% Excluding rate will plus approximately increase interest X.XX% minus.

latter, component on we loan we that B. our provide more However, and in guidance will once it’s close only larger significantly a the term

Brian Drab

– probably from I notes numbers what can guess, total the have Okay. in But my look balance? call going – here you say up on going these to just these numbers debt I can total debt the the for balance but from is I what

Jay Peterson

debt is So, our $XX balance today million.

closed loan of tells our couple term million going whatever to it, so it’s will that on debt weeks And to And the X.X%, at math in you. again so out be X.XX% we forward, how the open somewhere B $XXX X.X%. that’s this next

Brian Drab

do of Okay, XX% component there through difference of with got you. statement? it. everything a figures the reduction debt the between just those has doesn’t Thank income that much And large that to discount the pretty went and we that flow through amortization

Jay Peterson

the on a a amortization the years year B next X% will be Exactly. is for X term and loan balloon. there then The

started XX% out to amortization the of With grew A, term that April of with year we loan and this XX%. in

Brian Drab

okay. it, Got

Just gears revenue but mentioned of out of in to a shifting CCI keep I great, a the think we you I growth just and if know remove outlook, for just the backlog moment, at back guidance modest is the record a the decline half orders order level, the still or CCI FX? year. is there is numbers an implies the I the think

Bruce Thames

this hold the we flat. year obviously, $XX down that I – when to expect expect be given guess quarter, million have guidance when we And See, No. quarter we the quarter. in would said were that first is we for were guidance we quarters. first We year-over-year. the to this what we down but we last are of have revised said but And similar balance to XX%, we a range, relatively we three about revenues revenues that

would coming quarters. guidance. our the we That’s in of expect revenue QX makeup shortfall to any we in So, saw range

million to lower will we expose we we for of range, digits this we from have So, that, end low – are then point prior for be seeing and add cost kind saying we looking down made margins half are revenue the margins the at if be fiscal And XXXX so in the I $XXX exposed of in as as revenue, well improvements backlog in would like to to a year. up what year-over-year. will that second by we in – mid-single improved or feel are

will timing. that we did project upon range lower So, than the we revenue offset end we the any fall believe of more if based in

Brian Drab

collect ‘XX have that mentioned this least time Okay, you bookings thanks. a And have PowerGen talk the really happening are and from the in that’s or sales bookings you fiscal Jay, can or the about now now, backlog that’s start activity quarter primarily some projects see extended to petrochem to that to impact going taking then at of you real and is those activity you to and going that these impact when you complete or the the cycle on place?

Bruce Thames

as begin to U.S. some as projects. We this last that quarter projects QX, midsized booked of nice the some them in materialize, will early their some

really And second them into we in to next projects start are Western protracted kind of in will QX, see some would with of seeing carry we and in some environment so more to some Hemisphere expect we of projects times and with lower historical will QX see the this the year. on in is Hemisphere the the spending. over the are Eastern the half What our but fiscal combined that of the capital year, current cycle than some

We move have slowly. seen those projects more

Brian Drab

would could opportunity you year could a year – opportunity which activity a given that sense Okay. UE great the generate MRO really refining back large and back hurricane the this flooding, that is of the in of in fiscal of half provide in this will which more, just tailwind? of the half were me to or Is I activity material makes affected one potentially modest could that half ask a And in actually or year. it of teams tailwind the seems the mentioned the you petrochem it very type then back lot and describe by facilities a

Bruce Thames

were There but and impact with second customers expect and see some of were storms. had modest or fairly positive up a number a that saw tailwind. Katrina that level facilities There were we to that that the had were year. of would working impact are we significant operational much impacted less others significant other some we didn’t more and in quickly, more of of It’s the flooding. half impact the some large with We see

Brian Drab

Okay. very much. Thanks

Bruce Thames

you. Thank

Jay Peterson

Brian. Thanks,

Operator

you. Thank

Our from comes Charley the Brady of next SunTrust question Robinson. line comment or from

is line Your open.

Charley Brady

Good guys. morning, thanks. Hi,

Bruce Thames

morning. Good

Charley Brady

now talk Just what’s getting in can terms of put to about degree terms in can terms that in which you that are pricing of – to you doing the and you of maybe that pricing top are Are you that. you positive increase. any sounds offsetting you Ross increases? or getting It on is getting cost price – of top positive material maybe of like that are price or on

Bruce Thames

Yes.

seeing are We more on a will Greenfield improved margins focus and I for the moment.

more very we two and are well From pent-up seeing the in stronger made also margins adjustments those have of a maintenance some fact profile which the higher of backlog. we the perspective, the favorable and We we have through tightly execute in lot have we a is done structure lot a of better very execution year we that largely an reality business. our we on seeing all cost I products, just management Also, Greenfield and business as some margins has Canada both contributing see had which position positive. project the book come been business of spending but combination we And and be to what still think better that to and And has are on to of can’t margins. and MRO/UE the tend misrepresent field our reality than execution our mix that don’t been done of margin I price manufacturing the factors. want a our of it’s are so I think return as is we on ago. better things the competitive discount really based we had electrical in a impact have to today book those of had operationally continues, factors to a

Charley Brady

Great.

on it’s historically. being terms been from of what In duration your stretched the commentary

unusual rest as if of third to kind been look mix quarter out you years? past the or of as couple normal anything quarter, the have for year, terms far In fourth we what cadence of the seeing the of quarterly

Bruce Thames

would We first will see saw shipments than weigh going to towards and are we in in Greenfield do half the on expect expect be be we some of do that – what the to and mix Eastern to to heavier year a lot or shift it of shift margins. Hemisphere we the the

saw as quarter that. won’t based be healthy in we they what upon as So, this

we a XXXX. So, by based business look in ahead, see margins exposed of half the again, over mix in point we what we of second believe be half about fiscal we upon the second as would the upward saw

Charley Brady

Thank Great. you.

Bruce Thames

you. Thank

Operator

you. Thank

or next from BMO of line from Scott Markets. comment the Graham comes Our question Capital

Your line is open.

Scott Graham

Hi, good morning.

Bruce Thames

morning, Scott. Good

Scott Graham

ask last helpful very that information about maybe I So, basis talk margins horizon assuming for of of backlog XXX or margins was to if piece course this we your on basis that, the are am you of up versus term I here up fiscal ended kind longer up being points a XXXX? this in little what next within points two bit your quarters. gross on assume that’s what want more of XXX I gross

Bruce Thames

year a That’s ago. That’s correct.

Scott Graham

Right.

Bruce Thames

side the at the bottom. was at That

Scott Graham

Agreed.

So on that XX% quarters, of what least a forward? the basis, gross least forward a that’s kind be that at here be is but is margin all not fourth usually go should quarter at we XX%, should are saying lower, little going

Bruce Thames

Yes.

and say quarter. at of seeing the mix in what that Greenfield any very we given that forward. XX% depend XX% on in you is And least, believe know this Scott, well I are we We going to it will would range say

way be shipments large we a it projects, worked conversely, mix upside could down. skews if that Greenfield of to if that And there some be So, we towards and have could it number. heavier that MRO, get more

Scott Graham

course. Of

tell this and what you cost to us the P&L run the savings, through is On year remaining dollars? next could

Bruce Thames

which a mind. that X number months we a probably about any we cost, cost provide saw other don’t but little could on, in quarter only this Jay have further impacted and in detail of more things have We do actions

going couple within so quarter. structure as here on of to you is we things it And just our the cost Jay, a the would anticipate but is what want touch forward,

Jay Peterson

$XXX,XXX transaction acquisition of the to Scott. QX charitable CCI by had about $XXX,XXX transaction a impact One There costs in $XXX,XXX. hit am contributions for that those The to Yes. three amount, three due in hurricane due cost quarter the – muted our there P&L the some last occurred we FX was prior Logan things. that and were the increasing amounted in impacted expenses P&L We is Harvey this and in reductions smaller quarter, sorry that $XXX,XXX then was had QX. reported as to the I

Bruce Thames

SG&A.

Jay Peterson

SG&A, yes.

Scott Graham

supposed am difficult to Right, kind be what saying okay. exactly, And before I have saying that by there offsets, of you cost results our that, what don’t are been quarter second fiscal is ago to but quarter forgive might wasn’t am is and benefit from next of if that a about $X.X And that initiated the I of me but that I second the I when a that that remember year. X understand million. I XX-month do months quarter, ‘XX guess I to about. impact sort had it first that, quarter there That’s asking benefit were actions was am what

So, off through. there to of that is math roll still my

Bruce Thames

would those SG&A QX roll to started in see in cost. Well, through and both have

If had was flow impact to our down will and have that next cost quarter. majority FX the then we I QX not XXX,XXX goods not current in QX the and quarter. cost relative mix I ago just certain XX% but you year to look a this, items of prior that mentioned in do QX versus on sold year will am and I buyout what the an in the through that realized of at

Scott Graham

Understood.

Okay, understand.

question is running we from ex kind a D&A at we higher the SG&A, downturn. than into level are much were third So, still when heading we so of on out SG&A,

is – that? to up catch XXX something revenues where or waiting the about there I do for Is you that points. can XXX is that XXX the situation like just number are we a basis think something to

Bruce Thames

and we so revenues. Right we the have, work that’s have you now, with just in lag in Scott, backlog a significant it’s engineering see amount a of

Scott Graham

would margins be, on Bruce, XX% you fourth the a that I are assuming that talking said my about for characterizing what question about last sustainable, company an comment because am a lower understood. being of the are I always basis EBITDA you margins am annual as I sort correctly? Okay, And you obviously guess made quarter

Bruce Thames

that, to may that be is annualized would I I should Actually, Jay basis. that might We when we think We I see seeing And said everything think basis see said have going then on is to some, an think we have and should yes, more your quarter going than expect operate I better in from but that that what business expect point what approach well. would XX lower, forward, range are that don’t an going of are – in business next north annualized we now do the on but XX the and forward. that seeing and we this absolutely.

ScottGraham

Got Thank you. it.

Bruce Thames

would the exclude is acquisition, of this the And organically. impact this CCI

ScottGraham

Yes, understood. Thank you.

Bruce Thames

Thank you, Scott.

Operator

Thank you.

comment Our Braatz Kansas Capital. of City from next or from comes Jon the line

is line open. Your

Jon Braatz

Jay. Good Bruce, morning,

Bruce Thames

morning. Good

Jon Braatz

more over business been the Hemisphere is protracted, that? that Bruce, Eastern why mentioned you has in

BruceThames

historically take they Just North think execute project America there, cycle just to in particularly. longer just I do they than

Jon Braatz

Okay. If change? reason see to continue that you any oil would for rise, prices

BruceThames

and entities much really term. related are projects and so – to national I being different are their at these accelerated mean, you can lot as that and and Russia, not impact, the drivers Caspian longer – see tend oil those state look the can be can the extent to but owned you up, petrochemical if go have East to Yes, you oil all Middle a a favorable projects of when companies, you prices more may actually

customers elsewhere And of the differ in might so from behaviors would what the see we those industry.

Jon Braatz

okay. Okay,

great and Secondly, of CCI. over they by way Thermal and past say things some the the the week reps spoke about CCI reps I with all CCI

– serve? made a that talk the roughneck correct about being gold does – line, they I industries you standard think it roughneck And the am looks like and what gas a couple Katahdin, and Katahdin, is but oil have am an correct if but of think acquisition, of I I is much I pretty that industry. their wonderful what not I you made products a product

BruceThames

It’s is heater for and well used a metering heating different for as not is the available applications. stations things Katahdin in gas-fired stations, as gas like midstream electrical that, areas, remote catalytic it’s in lot upstream natural environments. particularly catalytic used hazardous where of so a compressor

Jon Braatz

Okay. And roughneck is operations? on drilling

BruceThames

electrical applications. – it used be, will of is area it but a heater be an wide can can range in environmental hazardous it No, actually that

Jon Braatz

Okay.

BruceThames

for used it see in tend it downstream And hazardous midstream environments, from applications. so upstream you is to to and to

Jon Braatz

Okay, okay. very Alright. you much. Thank

BruceThames

you. Thank

Operator

Thank you.

next comes from Wolfe the or question Our Josh Pokrzywinski of Research. from comment line

line open. Your is

Josh Pokrzywinski

Hi, stuff on that Close one. good morning.

BruceThames

Josh. morning, Good

Josh Pokrzywinski

I get I know to it if it. don’t am I used anymore.

I versus some the XX% is strong, to on converted that guess Just the dimension of back gross side? the margins, that out pricing with better really being MRO so much how you could Greenfield just backlog maybe

BruceThames

Yes.

in America a heavier electrical. lot had So, the shift XXX I of mean North to MRO and shift a And of that saw mix quarter. we was the margins were up basis points the in we

impacted manufacturing. are plus things noted those in changes some it So, of the

So, those contributing were all factors.

mix are particularly mix would a will there quarter-to-quarter and manufacturing with numbers what the expect forward well believe But that And on do mix influence mix impact on as we seeing we upon what as product going so we also is those the and sustainable. those depending basis. changes will in based we geographic believe

Josh Pokrzywinski

you normalized mix it presumes I I binary that shift what it deferral going sort I up, more signaled ago? the catch of we on And have violent MRO on of that go see months the it. this guess activity to America you are as swing is I kind margins was is today do a But XX%ish guess performance. gross start because think range. some mean, I or X are North is as in booking front. strong a to be something pretty get consistent versus Got I that mean, margin – in guess pretty forward

BruceThames

quarter up last so. margins Well, Yes. our were

Josh Pokrzywinski

guess good? mean, sequential profitability in pretty I I was the move

BruceThames

yes, So, absolutely.

around heavily And beginning American so we impact meaningful to the are and our the good very look again big had Eastern positive. a still Hemisphere. rates recover gist the backlog some has in backlog, way fact business to really MRO improved of business if a at that our North But is see seeing the and our been weighted you order incoming has Canada

we current as so that will see in of these of Greenfield you And saw through, some quarter. increase offset projects some that come this they

So, Greenfield the this down will as mix quarter. the well what saw geographic mix of you as weigh

margins do not – don’t going I we expect XX% So, forward.

Josh Pokrzywinski

Canada cleanup this of of work any that related as up some been to I catch in of of is back delta versus front that any of some though the posts and On has is a business margin mean, of volatility and in know specifically, on kind Understood. usual at I Canada? fires to kind recovery there there more whatnot, there

BruceThames

positive some first quarter, power over so that carried into business temporary that positive a some impact is in particularly some that broad-based. Our QX, had has of of but did impact, have more from that this

has it seen first We in some in the activity. gas saw have that quarter continued. of We and

in beginning also that market as we up and mean, $XXX tracing over to see heat million years Canadian $XXX put of We million electrical come we that’s the I maintenance. in to now last have, the XX for

of we are so flow some that seeing through. spending And

maintenance and been are very those capital now and and released around have in of being all that’s positive, small projects some expansion demand pent-up all so some small of upgrades finally we And factors. those so contributing saw

Josh Pokrzywinski

the it. color. Appreciate Got

BruceThames

you. Thank

Jay Peterson

you. Thank

Operator

Thank you.

of from question next Brady Robinson. or Charley the from comment SunTrust comes line Our

open. is line Your

Charley Brady

and were EMEA can you down in the a quarter? what Hey, quantify just quick U.S. follow-up,

BruceThames

was down Yes. XX%, XX% in the aggregate EMEA The X%. and down for was U.S. quarter

Charley Brady

Thanks.

BruceThames

Charley. Thank you,

Operator

additional you. at sir. audio Instructions] I [Operator Thank showing questions this no am time,

Bruce Thames

Thermon. quarter. joining. I Well, talking Thank to you. you for interest your to all Alright. forward thank next you in you Thank for look

Operator

This in for concludes gentlemen, conference. and today’s thank the participating program. Ladies you

You may now Everyone a day. have wonderful disconnect.

Thermon (THR) 23 Oct 172018 Q2 Earnings call transcript