THR - Earnings call transcript Q4 2018 | Thermon Group Holdings, Inc.

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Operator

Good day, ladies and gentlemen and welcome to the Thermon Fiscal 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following management’s prepared remarks, we will host a question-and-answer session and our instructions will be given at that time. [Operator Instructions] As a reminder, this conference call may be recorded. It is now my pleasure to hand the conference over to Ms. Counsel. General Alexander, Sarah begin. may you Ma'am,

Sarah Alexander

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

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

risks these quarterly of press our in forth in SEC. Some and the reports been release have with annual the and set filed

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

conference full Good XXXX joining interest morning, call. you all Sarah. the thank our me have moment Thermon. everyone to here to I’d for fourth CFO, continued Russia, Today, financial XXXX. in to industrial joining follow process QX, operation our details present large me your our Jay in fiscal and growing in call access Peterson, and some a our year. on in fiscal just to conference our and In like production quarter, the and Jay provide fiscal we Thank will reflect on heating. accomplishments began market we key for back for take you, of a

We continue the that development research in to invest in products lead and our the marketplace. with solutions to industry differentiate

improve to rate product added talent the pace, the we and overall year, accelerate robust the key the of to success processes During and new team build launches.

We impact positive a also year. systems of globally, tools project business profitability build which in had and productivity, invested that processes, improved in the and operations, to execution, all scalable a

our solution Finally, Systems platform growth. grow we now Heating addressable Thermal set to and Thermon as to market, provide CCI enhance the an our expanded for customers, we known acquired create

had of points MRO/UE year-over-year. of $XXX.X XX.X% of results All to show mix in positive our pleased this up improved We delivered Inorganic impact year-over-year. million, quarter and saw very XXX overall the Margins the quarter increased million the of the revenues very beginning Greenfield the points for overall exceed We of XXX $XX.X by team XX% versus in Organically the double-digit revenues the quarter. of basis growth second with represented basis also with on consecutive were on XX%. year-over-year margins a of a performance positive impact these operating company. QX. investments XX.X% expectations are

a amortization and in of share an was the and $.XXX year-over-year. $X.XX result deducting a million leverage a strong $X.X $XX.X transaction adjusted increase XXX% up in we overall million with and of one-time $X.XX October months of able end adjusted Amortization business EPS related million the to were net their EPS very debt retire was now As a strong adjusted the X.X to share business, in quarter, saw quarter, we acquisition, in later flows just operating $XX EBITDA EBITDA the from Given quarter. following the been expenses, the X.X. of After a up we the XXX% year-over-year quarter. that reduced to of At cash had XXX% debt share for is during the five

capitalize continue reduction to debt is future to focus business on well-positioned opportunities. on We to the ensure investment will

the convert and in fiscal revenue, which for For million up to essentially year. the slow year, the year-over-year adjusting finished backlog the year Thermon a growth for XX.X% flat begin we into solid second generated full to of translated over after after currency. at half during Organically prior up million Revenues start the $XXX.X XX.X% XXXX, very saw year. $XXX.X

However, over Systems revenues generating revenues an million a year-over-year, $XX period, XX% which constant end as our year, additional basis, in range. on up positive upper was recover. in a Thermon in Heating had began HX a XX% markets Inorganically, our success currency contribution the to end our the were to five-month on of very

XXX maintenance better improved project and a execution for basis due in the to better mix. spending basis points to saw XX.X year, the also points year. a margins XXX Canada, by -- during also up Organically We margin were return of

into Overall the year-over-year. of Thermon but the million adjusted seeing performance up EPS strong the and expenses, and fiscal with months the amortization, As a Fully Heating new up $X.XX leverage in we EBITDA positive the were XXX see further material margins. debt in margin experiencing and end related share share burning due up book-to-bill, with fiscal we adjusted our will inflation the System Bookings headwinds but positive carrying saw are X% business, EBITDA the in that a contribution material are likely operational year. XXXX. five were business of coming or $XX.X mute increases adjusted basis. slow we on consecutively, grew transaction shipments a cost positive We a and acquisition exceed but saw After contributed quarters improving, XX.X% to basis down $X.XX expansion to Margins result, pro EPS XX.X% XX% for backlog consecutive expect Adjusted momentum year-over-year trends year-over-year. orders. year. We one-time excluding of do in also incoming points margins acquisition year-over-year five we this and of generating a in are XX% raw increases on forma year. price during the offset

basis. backlog exception the and upstream projects are Both the was Although combined book-to-bill with power market was on chemical relatively Geographically, XXXX. in remain sectors in pipeline of XX% XX%, active particularly North in oil project flat perspective, up and million the forma petrochemical activity half a as America sands. showed pro is second U.S. the the a strength North improving fiscal America Canadian year-over-year of From the improves, cycle $XXX the

larger Eastern investments. of of into the and takeaway In further fiscal and we the of into began second in to half in the forward and continue – year. we move this capacity the Going XXXX, the continue coming Latin see Hemisphere, anticipate XXXX. limiting lack backlog first projects the into to the XXXX, fiscal we take stall fiscal to expect America, to we pipeline U.S. growth half with expect In Canada fiscal growth

value these accelerate Thermon revenue our marketplace, technology to the our for and result We differentiate development new are product team business. solutions streams to and the roadmaps, R&D of our create in unlock will portfolio in roadmaps expanding customers for of expanded

new We coming planned have in product five introductions the year.

remains our priority. pipeline capital M&A debt will to allocation robust, Our as dedicated reduction but near-term be the first

to X by X execute plans grow our to to times on our end market the addressable continue We XXXX. of fiscal by

our and billion XXXX, million near-term Our reach for in ultimately that XXX double-digit of goal annual revenue, the compounded is to end translate growth by EBITDA in $XXX to will shareholders. fiscal

investments key access, also continue build to our presence to our geographies addressable solutions set. in with cycle, make strong our increasing to while by Eurasia Thermal economic the CCI XX%. bring market a team, approximately We’ve growth research established in we development of improve in market grown to an targeted During the and industry The acquisition our has we’ll and expanded management the solutions investment operating differentiate potential.

investments these to All the recovery. Thermon growth of generate pace exceeding of position the market

Thermon a that into million to The of the we X% forward, half range anticipated Heating fiscal to to million in up M&A million the $XX XX%. revenue is organic second $XXX more pleased growth backlog begin higher within Looking XXXX are for $XX $XXX Revenues momentum seen of year to fiscal anticipate range XXXX to confidence. year, projections. XXXX. the to continue No is with in these have Systems. of level the robust and fiscal revenues We are we a X% positive of to XX% and forecast of in comprehended for

opportunity XXXX. is X% year. to year-over-year approximately of heating experiences year to on of in our double-digit on shareholder the with us pro create second Thermon will while by peak of the Thank efforts and drive QX we channels anticipate seeing look collective of comparison. performance have a Systems quarter typically of given a volumes I the they take Historically, of fiscal the continued expansion well the basis, what serve any year customers include but XXXX. Our this and call to Thermon XX% further their spending today. fiscal of I to the that fiscal the forma of half Jay? margins XXXX to revenues our is around our value thank like in the growth not for much to do employees revenue. seasonality XXXX. QX Organically, increasing will address and Greenfield XXXX forward Jay revenue our globe mix our typical market for to R&D XX% full projects year. down to be stronger QX to you again joining the will anticipated details growth dilutive the XX% would from slowest versus XX% our first in seasonality Heating season Peterson, deliver also financial Due year-over-year, business, for CFO fiscal anticipate we on in half plans of

Jay Peterson

start discussing of our with then Bruce. finally fiscal a and conclude you, year I Good morning, to year will QX guidance Thank XXXX. results, high-level for by our summary results fiscal turn

revenue and orders. off, First

in our to on revenue and revenue XX%. a experience quarter, this increased the Heating followed past pro XX% forma quarter. year’s by quarter in by of a revenue In Pac XX%, in over revenue X% that’s constant the with X% revenue positive signs quarter. to quarter, Our quarter, Asia an we revenue at and basis, revenue grew in currency FX pro Thermon continued and increase total million contributed prior Systems that’s and contributed a on XX% our basis. the the by organic XX% Canadian business grew forma and Thermon record And M&A Organic growth XX% totaled and the $XXX.X for up

mix whereas was that’s revenues, construct. and MRO/UE $XX.X an of of see revenues, for quarter, $XX.X orders and double XX%. QX organic XX% quarter for totaled Our total the increase order organic versus million in we U.S. And both is digit growth of in Canada that the and XX% were the and did Greenfield in on million an prior

ended book-to-bill to million backlog XX% our fiscal of end our from $XXX.X Our backlog grew the growth was the million the and of business forma XX% $X.XX. orders of XXXX, systems increase with March $XXX.X at year And the pro quarter And basis, organic contributing $XXX.X thermal on of million. a heating million an $XXX.X XX%. XX% for at versus acquisition

in versus and dollars in dollars And by margins by due basis gross they points. revenue margin totaled million. basis grew Moving an a our prior Heating margin margins million points this pro quarter on year the $XX.X basis, Thermon XX% to past primarily Systems quarter the higher margins, XX% our corporate than increase increased Greenfield from quarter of or million Margins $XX.X from XXX grew margins. XXX to by to by XX.X% were forma $XX.X

pro our operating core to core million the any quarter, this $XX.X in prior forma expenses $XX.X that quarter the million XX%. transaction $XX.X on In in by versus our And year terms SG&A operating amortization quarter intangibles is or from excludes of basis, expenses, related and XX%. depreciation and totaled or increased a the spending $XX.X and million for million of expenses

XXX $X.X expense Our the XX% quarter, revenue for intangible And a percent level year amortization excludes as expense operating down and of was from totaled that’s the of and million. this prior bips DNA XX%.

of to increasing the earnings, and million grew that’s former share related the adjusted Thermon that’s X.Xx, expense quarter share construct our are $XX.X Systems forward of prior due in year due to expenses to comparison a both XX%. will relative GAAP this basis model $X.XX gross and a EPS quarter resident and communicating for $X.XX the a the to our X.Xx prior any this XX% share grew expense $X.XX high pro EBITDA basis. through quarter management organic EPS, are growth margins, XXX% increase revenue Heating this our defined $X.XX is and leverage statement. amortization share we that’s to a totaled with related at only, our in on level for leverage XXX%. transaction expense. a the contributed transaction a quarter $X.XX and and of $X.XX EBITDA revenue of to was increase percent these past our the including each of and Moving to compared with with and totaled relative expense adjusted our incremental EBITDA EBITDA per Adjusted GAAP in And X.Xx. on quarter And an expensing of be a to and or GAAP by GAAP $X.XX burdened were a to to expenses quarter versus EPS and our earnings growth basis forma per of business quarter, and EPS year the share this interest continued all pro construct, amortization and by and XX%. Systems XX% share business less share as a our income to forma fully And this Heating at And both GAAP able XX% of is by to was we an revenue an of present, EBITDA running annual $X.XX totaled amounting million $X.XX relative now and leverage totaled we that’s going non-cash $X.X on Adjusting sheet. after-tax. balance Thermon leverage quarter

this we $XX after-tax During an add a our million, optional interest expense. due share to reduced on $X.XX nearly earnings made loan, term million reduction of XX% reducing $XXX payment debt the and by quarter, the principal syndicated balance annual in will to

growth reduction balance cash X.Xx month and a ratio period. Our to we EBITDA million our the net delevered at and acquisition the business the time all debt through and and at October to ended investments recall have was net five EBITDA of a $XX.X in debt the X.Xx year within and

million. of following. five-month guidance $XX.X EBITDA production fiscal record this and total and we about grew year, points And significant in to the revenue the I’d by many XX% fiscal made facility manufacturing XXXX. million performance. lastly Heating over XX% margin to like acquisition, EBITDA this a Next by We by Systems year XX% exceeded Systems a XXXX since in in $XXX.X concurrent during $XXX.X for at EBITDA. $XX our Thermon the we revenue, acquired Thermon this with We backlog revenue business Heating the expectations. Russian delivered talk We integrating business inroads and achieved and to year million to tracing year and heat the ended million. our accomplishments Thermon including over finalized And in some XX% period the And in growing with XX%

in but heating will Thermon we First the a is in targets not it not of to off, are Systems are Heating note $XXX revenue we million in comprehending M&A. due actionable be be are that we believe And reminder, the the however, accretive Also, and Thermon QX from have million will adjusted any prime lower typically is we $XXX any season. in in for EPS, a revenue, present we topline in that contribution excluding while the M&A normalize guidance, entire the XX% the Thermon And Also to not margins saw year during this believe possible of season, Heating coming planning delivered XX% the EPS. EBITDA Systems heating GAAP this fiscal slower at fiscal range year, year. as QX half XXXX. to we fiscal second we will the quarter over our

expenses QX year, and X in to million future operating approximately realize synergies. of amortization to to last expenses be this million and and excludes the range XX one-time Consistent We this includes million modestly. depreciation expenses expect XXXX adjusted XX with and investment to to in and and we EPS going fiscal for research growth grow and QX. in Note we that EBITDA development year be operating an significant anticipate year Thermon is expect

be due growth and EPS GAAP However, will muted of the to amortization impact expense. interest

XXXX. with In X.X% year addition our for the in will fiscal million CapEx this plan $X and that's million totaled flat year approximately revenue of or X

expect net half our over to session. Brian? we the this moderate EBITDA back to turn Q&A to reduce of any excludes M&A transactions. excess now debt returns Lastly, call our leverage would to to I like and Brian in one

Operator

sir. of with Scott [Operator Instructions] you, from first Capital Graham will BMO Markets. And question come Thank our the line

for Your line session. Pardon, your is Graham now now open Mr. line is open. Q&A

Scott Graham

I'm Thanks. here.

– So questions got you. of a I've couple we've got here for

at a looking of comment, how getting what your much being is You're you that are growth this not on So, is X% -- Canada from How year? to of year of that costing organic you much Bruce? based X%.

Bruce Thames

Yes.

year, very has some growth So, growth with significant a about level just plateau second recovery mean impact a that further do a our some we've maintenance lack of – to at the see been capacity, some if takeaway we had in look growth. and to seeing so pent-up what half there But spending pipeline, you seeing. investments in I the We really begin of modest above unlikely demand. the and Canada are really some

timing, the project projecting impact rate is particularly significant forward. the a and do growing on coming flatten that we've going there expect so are that just is with see year, U.S. of of to well-positioned in backlog We the growth we that having growth Canada the bit. a seen So the we -- other globe the parts

Scott Graham

Thank Understood. you.

I materials about Can first was for is, I which of think being a misunderstood. was is? kind there? pricing headwind. unless a the that, had I that you you takeaway a there materials question exceed What's Another comment then inflation And inflation, comment would me tell there

Bruce Thames

Yes. it My offset. that would comment was

offset. it I would say – my were didn't would it that's words So exceed

to So into that the we'll I expansion XXXX, don't we don't think had going offset fiscal -- of I in I as see in forward margin opportunities we see experienced it. XXXX. level seen the expand

Scott Graham

Fair enough.

for Sorry there. you misquoting

Bruce Thames

welcome. You're

Scott Graham

a you This is gross on for question the Hey. maybe margin.

as maybe me I that like sounds maybe thought in bit, don't to margins say I in offsetting Bruce. flat ominously we or little XXXX. margin cost guys thermal expecting you misheard know. price for that come triangulate to have business the this So, to there? those lower like I to well. around math according heard some a CCI, I sounds It help Could me you gross you're

Bruce Thames

There see We maybe flat. upside. Yes. some modest

I Heating important comments really saw think margins around point. season. is Systems heating Thermon our really during healthy We the

the If volume. margins because margins difference the so that's What cost at fixed really leverage very remain on business lower The product you is volumes. see in But there the we on consistent. volume basis, the look good. that off the is the just effect EBITDA of real actual were season

And and in see compression the so of expand half. we margins during the see year in that half the we then second first

But picking that we're on have and exceptional lower so full up that probably were to what be them the about volume. expect as giving heating in a during that's margins we messaging the lower we HX, on We the year. QX the five-month And the owned volume. significantly do and you that season particularly you're on

Scott Graham

organic does up And that, pure year next of to to X% include that but to my the you X% right? kind that Understood. back FX, refer not for hog line, question. I don't here's last to organic, mean is that the

Bruce Thames

We don't speculate absolutely. FX, so correct. is on That

Scott Graham

you. Thank good. Very

Jay Peterson

Thanks Scott.

Bruce Thames

Thank you.

Operator

William Drab question will from come you. Brian of next our Thank line Blair. And with

Your line open. is now

Brian Drab

Thanks morning. my Hey, taking questions. good for

Bruce Thames

Good morning, Brian. are you? How

Brian Drab

Hey. right. all I'm

so and always So interesting the of months far? about? can in can talked and we're some that it's you the continuing fourth on Is us May what you May you the but know geographies, about And seasonally in this I anything about April there tell are given next into think period, but report, April little least quarter the momentum two I bit seeing quarter. you

Bruce Thames

Yes.

just margins, Greenfield growth in that QX So, dilutive do certainly the first mix also made seeing some half a given of mix QX. healthy had but see the year first I we we We very see much and QX growth are around expect healthier we and -- comments the year around in do we volume to year-over-year. quarter. some last significant in see We be year-over-year to

Brian Drab

do you X quarter? digit better that growth to above healthy in really assume just than really first So, growth Bruce, probably I we X – the means organic double did given growth, if healthy

Bruce Thames

Yes.

Brian Drab

-- going just there to XQ? of look as a that on Is the below X to you though, Or you does much year half call for know want half so is the moment? we're XQ the you materially mean a make and year at back don't to back be there conservatism the X this through of at

Bruce Thames

Yes.

the quarter-over-quarter So, into positive want if up our look, positive emphasize year. I all, some highest by highest had a we the two large was to first we fourth that in fourth momentum backlog haven't quarter are – This want since is that. first I of And QX. we had in The did very you booked project X%. a we've last XXXX. And book-to-bill. Canada. quarter bookings in organically to had bookings going about quarter the we in But drawdown see don't overall were the a We reiterate quarters see

And are seeing projects. is, reality the lot we're a a we environment. booking seeing more healthy So

cycle. Our concern to reiterate. timing. We're is just late It's over important project fairly

So a later likely timing positive momentum. The and of be year to the in can move. we project lot see is

I some that's we is of oil. of spending forecast. before the as increases our get couple We in to impact having a we'd rate on to think probably we more end see accelerate of volatility customers. there our on finally, quarters that aggressive price And are I'd some have seeing lot And of in to seen say movement projects, but like begin a

Brian Drab

if us? you you maybe at know -- terms order, XXXX. a PowerGen, could and take you for petrochem oil Could fiscal contribution ask in of could rank that I the if to Okay, growth don't gas, potential to I in And great. stab

Bruce Thames

far I is third Petrochem would gas, and be oil second the would would by say strongest. be And and Power.

Brian Drab

you'd would what that's I And Okay. say. thought

guess the U.S.? U.S. the Okay. I – it And within is is in petrochem the specifically strongest

Bruce Thames

are East in lot we well. the opportunities And of a Middle as continue seeing Yes.

Brian Drab

Okay, great. And full projects if policy one of impact have can take depreciation? I more, ask tax your the that are forward just from seen to customers pulling advantage you

Bruce Thames

anything We back we that the haven't tie to could directly seen change in tax law.

Brian Drab

Okay. Thanks much. very

Bruce Thames

you. Thank

Jay Peterson

Brian. Thanks

Operator

come Thank SunTrust. you. with question next Brady And Charley our will line of from the

Your is open. line now

Charley Brady

Hey. Thanks. Good morning, guys.

Bruce Thames

Charley. morning, Good

Charley Brady

on impact Just another slower as XXXX it the to fiscal but you that move just be increasing the know of something margin on this is be sense that basis, us a level wondering, after or you give expect should investment to year? the percentage out that maybe And expense, can to about continues question higher? talk the doing might far what R&D year. I as the you

Bruce Thames

on the investment our really and which levels and like pacing are we roadmaps directly market there opportunity and research to see and in potential technology realize. would and our They to pace in at those product tied We development. see the

market we've years. last increasing under we've to historically some but to opportunities to new bring see accordingly. increase few we're significant some the going feel slightly I question, in the and see So, your likely will least we at solutions invested invest historically, there. I like it, And we guess, answer over future years been to

begin plateau expect Now, we overall with the points to spending volume saying the and I growth to down is of SG&A were pace do XXX basis we're year-over-year. we

some And continue grow. overall leverage we so as spend on the begin we to to in should get the SG&A business

Charley Brady

MRO/UE coming mix you're XXXX that the then interpreting the a I XXXX, half what on know it Am than Greenfield talked second timing terms saying mix half get percentage XXXX. of Greenfield in to I'm from correctly? was timing could of with sounds fiscal it But some second maybe I And in later pipeline be about higher is of Thanks. stuff you fiscal in the just fiscal versus like project wondering and wise. through.

Bruce Thames

this to mix. just It sense anticipate time. and could but it's projects, hard general projects in can movement a – one they of impact have to be of do a at of really can significant timing have that that move or two We

to points would modeling there you pretty For purposes or minus plus but to use its some I we're historical quarter given consistent. of outliers, within that are I the in a encourage XX/XX, mean, couple any

Charley Brady

Understood. if And you one don't XXXX me; from expectation just it, with debt know interest paydown? I expense more mentioned the for

Jay Peterson

Yes.

on it will expense charges. be at cash in a deferred So, of million and $XX amortization debt the X% all interest basis, is including approximately

the it balance. would So on million be X% $XXX

Charley Brady

Thanks.

Operator

Thank you. And City our will next the Kansas question Jon Braatz Capital. come with from line of

now line Your open. is

Jon Braatz

morning, Bruce. Good Good morning, Jay.

Bruce Thames

morning. Good

Jay Peterson

Good morning, Jon.

Jon Braatz

the that understanding your basically at the look for I assumption we And Canadian next revenue in when Bruce, sort because of am year, expectations is THS softness correctly, mostly area? and is for THS of year-over-year? flattish

Bruce Thames

we a have X% that on X% business. growth in basis pro forma about to Actually

Jon Braatz

Okay.

Bruce Thames

those and the are and less other they are comment I -- tied tied cycle. much to less guess more in oil products gas earlier And much is

with see products they sales see access heat-tracing those do synergies plug in into Hemisphere. we translate the opportunities project also into we And we some opportunities. market So Eastern there as our opportunities before

the things impacting positively So all are see Systems forma basis. the of rates growth Thermon on a those we in business pro Heating

Jon Braatz

think as Okay, I charges for the was XXXX, that Jay, about then little XXXX? will work bit sort with backlog? will it that you decline of on -- constant the amortization with be the Or reduce it? okay. a associate And expenses amortization

Jay Peterson

look to for so impact, when negligible a based is slight at the very a we be X.X impact, a will was year. it's margins on expense gross modest next operating the impact million It Yes. backlog, nominal the There impact per the but impact quarter.

Jon Braatz

per X.X quarter? continuous So, million

Jay Peterson

It That does. based would $X.X. move It will on be Yes. slightly FX.

Jon Braatz

Thank Okay. you. All right.

Bruce Thames

Thank you.

Jay Peterson

Jon. Thanks,

Operator

with question Capital Graham you. next from Thank BMO Markets. Our come Scott line Instructions] of [Operator will the

Your now line open. is

Scott Graham

a more XXXX? of have the in you'd guys. you Do that mind. have fiscal if couple on an Hi, ship you I don't backlog of estimate percentage

Jay Peterson

the slight to we we numbers, in period. earlier Rough We're Scott, a backlog be track seeing XX%. our Recall XX guided Yes. to on that. years saw per improvement XX month that would burn

would XX% So XX next invoiced starting model backlog or to our months approximately of be I year.

Scott Graham

Hey. in versus your And also tell of of MRO/UE? the dollars THS split Greenfield that you could us are

Jay Peterson

Yes.

we numbers the gave So were construct the organic only.

Scott Graham

okay. Well,

Jay Peterson

virtually same And would definition. based of be all on THS's considered MRO/UE backlog that

Bruce Thames

would of did been XX% Greenfield. MRO/UE. about projects We that considered a couple The been would've be another XX% shipped; that -- represent balance have would've nuclear

Scott Graham

there Got you. on as something a well, finally is of digit mid-single Canada is that's now; And sort which orders of the or quarters that couple look number? then that restraining for else

Bruce Thames

order that's kind incoming again largely plateaued. And I it. rate of the has Canada, Yes. think

We I seen say said, in we orders Eastern we a have as do – in me let well, this, Hemisphere. the slowdown have

Although, to line lumpy significant tend sight that fairly in we of of part globe. and they to the bookings some have be

while order in -- some to growth. of particularly We incoming significant down and coming contributed slower that a our do sight have the that EMEA projects rates So, been close that to in expect we order order to have line months.

Scott Graham

Okay.

of So pulled -- it should me it continue what down? pace Bruce, with this like at then, to growth Canada but to to your from the level I words orders mouth, put in want sounds least having don't

Bruce Thames

sort of That expectation.

Scott Graham

sort able think? weak this things organic single be you to should do couple should going to Canada. digit including a of in of be mid But America we forward here, better, stay

Bruce Thames

That's our our we expectation the in and organic for projected growth coming year. influence that that business rates the

Scott Graham

Very a good. lot. Thanks

Bruce Thames

All right.

Operator

next William from question of Brian will Drab Thank Blair. come you. the line with And our

open. Your line now is

Brian Drab

Hey.

question. more one Just

those could five categories us those into, and fiscal what could if in new and new generation fall Thanks. this would I'm tell or they either curious products be from maybe products, the there about anything On revenue year products? any material if XXXX you

Bruce Thames

actually our products, a roadmaps technology wait but of fairly those are launched I'd in expanding some set connectivity, Well, that focus [ph] well our in and until heating there of They on wide product and again execution we'll following and like controls, products. the we've line. products as range solution accessories communication other to as around

you really for following the I'd expectations and give of retrospect So tell launches that to time in about more details prefer our announcement. at those we'll

Brian Drab

the the legacy anything acquisition business that, you between that synergies ideas [Indiscernible] a Bruce there's came and synergies? you Can result if any and say, THS have as of

Bruce Thames

plans the would some of There synergies. have for It that are laid longer technology those. take be more to out business business. with realize will we These growth organic consistent us that and

Brian Drab

would So, that fair the conclusion? all within products Is be and new legacy these business within a five THS. of not

Bruce Thames

Yes.

Brian Drab

lot. Okay. Thanks a

Bruce Thames

you. Thank

Operator

further Thank I'm you. no questions this showing time. at And

Thames, my So turn some conference to for Mr. Bruce remarks. it's now Officer back to the pleasure Chief closing comments Executive and

Bruce Thames

for of we're XXXX. team your results in with about fiscal thank enthusiastic on coming thank quarter for fourth the interest the call the in pleased ahead us We're Again, in the you with accomplishments Thermon has joining what and this the pleased that made year. you and all We lies overall really today.

Operator

may thank Ladies This disconnect. a day. and today's your on have gentlemen, our for does Everybody conference. you program all and you conclude participation wonderful

Thermon (THR) 24 May 182018 Q4 Earnings call transcript