THR - Earnings call transcript Q1 2023 | Thermon Group Holdings, Inc.

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Operator

Greetings, ladies and gentlemen, and welcome to the Thermon Group Holdings First Quarter Fiscal 2023 Conference Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Ivonne Salem, Vice President, FP&A and Investor Relations. Thank you.

You may begin.

Ivonne Salem

Diego. you, Thank thank quarter and joining fiscal today's Good call. you first conference XXXX morning, for Earlier issued Form morning, section filed also this we on of with has release, available the been our which website. SEC Investor on the X-K is an and Relations earnings press

Additionally, for Call Conference QX call this can our found in Earnings the website IR under Calendar, slides IR News conference be and Events, XXXX.

generally discuss some items do accepted call, accounting the to principles. we will During not that conform

comparable that most the might press most the to measures information to for regarding measures would future our items during substitute forward-looking statements refer those we impact could with reconciled of performance company. end to, and earnings have tables for, regarding results. the annual the and should addition financial forward-looking report I the including like this a reported our release. GAAP at not filed in certain SEC call, We our in non-GAAP report the make as Please risks in and measures to statements, GAAP. uncertainties more be accordance that our of quarterly remind considered These recent you with

materially as and may differ whether be required to except may contemplated results law. forward-looking result those of statements, a as actual Our update any those developments future we otherwise, or by obligation no statement, undertake from publicly forward-looking new information, by

Chief our and Thames, Now Bruce Executive for I his would to like remarks. President Officer, opening introduce

Bruce Thames

QX into organic margin illustrates and start record revenue the fiscal 'XX. operating our momentum Thermon expansion an to fiscal had finish to morning, from growth, our bookings, year-over-year year Thank we today. the and exceptional you, better-than-anticipated excellent with Ivonne. thank carried strong that you and everyone, joining QX for leverage Good year quarter sales

investments by serve results executed and management. customers our largely fiscal our discipline persist team by globe driven share. cost well supply strong strategy, commitment These market challenges a quarter were in winning around and and with despite execution the Our continued to Thermon chain our the team extremely grow around that

acquired provide which America As line approximately later We're on We'll we seeing million strategy, part of more maintenance in $X in quarter. a strength recovery that call. on the growth acquisition month record, details this to contributed a in growing June. top spending year North by the in the May in and over first and of Powerblanket $XX.X the gas XX% oil quarter revenue, million prior driving XX,

the to with strong cash Adjusted share we the Free importantly, of EPS to a income. at more the million, increase leverage adjusted quarter More which saw an represented consecutive the our EPS of from the free over the doubling $XX.X in prior quarter was business, $XX.X quarter cash flow bringing for to flow of compared $X.XX quarter, team trailing the share quarter. EBITDA strong deliver more of was the than net $X.XX the a XX% XXX% second XX-month adjusted growth. prior year than revenue and as operating rate Xx particularly million for

are EPS in backlog weakening and seeing revenue business. a the raising in guidance the we're headwinds, Europe and we performance strong year While fiscal outlook FX strong the full given for and

diversification and to just 'XX achieved we've the To want on year fiscal our with during progress Turning end revenues in of oil tied gas to Slide during our now I the strategy to the markets XX% X market reemphasize external begin, year. our and environment. end

a oil of general commercial, markets our These and accelerates revenues investment in 'XX, wide to food like products end sector. and outside applications begin with and range XX% we Powerblanket our these fiscal roughly have beverage diversify being efforts acquired the of construction, the As year newly industrial. of in gas

this across strength to a with Turning and to see higher pass offset our price higher at and of continued of new utilization some the to has input wide related a in Much although markets. to is verticals. manufacturers lower on capacity. In growth, petrochemical, increases rate in with enabled sector improving chemical this range other fiscal and second throughput costs demand of end maintenance investments spending the half in We year.

orders not Texas While power and legislation along for additional we in plant. of Gulf a nuclear refurbishment seen received the in power at Coast. particularly 'XX, Winter pace fiscal We've the Uri, the opportunities from following see Storm also year sector multiple maintenance

energy emerging electric business expect Going multiyear Rail to in as small, we class X sector by transit, part new the other and well with recent Class driving the and growth. power traditional sources as growing transit our projects the world. although in product to remains from middle launches growth the of wins rail transition forward, a be in driven developing

industrial downstream in we're and opportunities hydrogen from electrical heavier recovery of nascent, While seeing number also significant and throughput. spending applications particularly maintenance. to gas-fired A utilization Europe. beginning is to a and in be also These investments to are debottlenecking, that related green a upon in and appears emerge heat exchangers oil upstream gas and transition underway, focused

America chart, to installed Hemisphere at years produce assets the end will These higher Here attractive in in and of Canada Geographically, the XX% see we materials revenues continue as upstream Latin many revenue the our relatively in war U.S. due lockdowns. COVID-XX and market the recurring with well roughly some the lagging and in is to of to impact tied XX% energy that costs for The Ukraine margins that base. robust. represents stable to as remains come. Eastern on

Turning backlog. now and on Slide orders X to

trailing million, the period. quarter bookings see growth $XXX XX% XX-month and over QX orders on record growing of continue the with XX% to strong in We

last X.XXx Excluding the our quarters. onetime contract, positive a for been healthy X was book-to-bill the and X of has

grew $XXX,XXX record Kevin constant-currency year up sequentially. review our also year revenue continued was results. Backlog a was on more in down X% and over is showing in is for turn year-over-year XX% a adjusted our customer I'd strength achieved Kevin? basis for financial activity. within record of million like Although of a which sequentially, With XX% now level year-over-year, overall the quotation was volume Backlog $XXX up and a in-depth to to EBITDA. XXXX, that, our call that fiscal of

Kevin Fox

Thanks, Bruce.

Page X. to Turning

contributed past America, want driving of believe we of a specifics, maintenance jump the Before million pleased $XX first early Revenue and orders XXXX onetime internal this exceeding the are XX% million, typical versus time in the quarter in I the that frame. levels and while $X global prior it's growth XXXX in expectations. was of to summer with $X up and customer of heating very remained in I the and to new season. reflection elevated note labor was into a the demand, North in timing revenue driven the this spring meeting team's by financials large commitment quarter, particularly demand after We elevated million in the level profitable to year quarter. The contract deferrals

revenues So versus excluding that were Thermon year. up XX% prior project,

previous material realized versus both dollar, business of America. regions in year continue As work higher our is sales revenue in by in combined on-site last, elevated was the America incremental ahead. mentioned U.S. our due expect in this with for materials to $X.X Canada the Revenue we the where completed contract this seeing U.S., a stronger impact to from $XX May. the installed to and million which both million our call, on negative regions quarters North FX we significantly demand Latin base impacted

in rates the order March, see business those for typically we daily June, to period. process the begin we through our off in While in observed seasonality drive helping elevated revenue late effect outperformance heating to the taper products

We power beverage XX% and our see in up continue year-over-year. diversified end markets up progress to food with XX% and

keeping include considerably, global executing of end Powerblanket is sales the month year-over-year. to and against was revenue teams fiscal of focused by $X to gas diversified long-term our overall drive approximately While X Thermon's markets are results revenues XX% period. the the maintenance our total growth of in spending we in of our XXXX. worth million at this oil financials of exposure goal organic Reported markets growing on least XX%

as acquisition time XX% a installed slides, a the quarter start the which trailing XX% the our Powerblanket going in months, in forward. XX off we are grew the spending team them global Point about few base. in across very of Thermon underscores more and discuss have and part but in will good strength maintenance to revenues excited We to the in

versus time, representative are basis, As and a time our represented over services. reminder, installation this contract, work aligned XX% with revenue both total are which or revenues, Over in TTM material our point in the project time point have revenues engineering of in time onetime XX%. we of where revenues quarter of XX% sales, material XX% revenues project the including a product on while up quarter and were or

large split and respectively. the XX%, XX% contract, labor Excluding this onetime was

XXX fiscal of an X. to last Volume time in year. In comparable figure XX.X%, first are by margins the giving million FY Western sales margins point the XX.X% points, had increase driven pieces gross $X 'XX XX.X% of revenue Now basis 'XX gross Hemisphere. was basis by us of points. call QX margins gross There strong a quarter a to contributed few margins expansion reported XX% for of Page onetime moving the on gross XXXX, basis over are yielding XXX out. in of fiscal a points versus in Reported XXX and contract the margin in an reported the in versus in SG&A a quarter and dilutive the

last manage with over this XXX XX basis the to compared a continue basis essentially de able quarter's days. points so price/cost flat the to to points, headwind positive XX be minimis equation being We quarter last

quick to of the was and versus deduct slide. general the expenses of the revenue arrive million SEC from $XX.X XX% or As million SG&A prior In reminder, the quarter, year. investing spend selling, to SG&A a at we basis, $XX SG&A on slightly or of the revenue. $XX.X up above On or year or of XX% We was on XX-month in million business reported depreciation XX% a in our revenue from prior profitable controllable drive revenue, highly focused trailing of managing $XX XX% while growth. the the remain million administrative

diversify continued towards we disciplined we profitability spend will and the on are in help clouds However, be the reviews the SG&A the cycle. scale the XXXX. will horizon, success near to Europe detailed business. capital dollars for to of to increase to ensure us We've business long the investing ensure highest for our positioning practice the investments and with directing in attractive we and the want aggregate economic continue the of some returning are balance term, most business through term, With notably we fiscal during will that

this cost share. to installed adjusted begins base, up margins contribute heating EBITDA XXX management our has to volatile doubled to XX.X%, within price/cost demand, base the than environment and adjusted is X from in now trailing with Thermon proactively Moving a execution yielded points. or EBITDA XX-month of very results it business The $X.X season strength is and to deliver on along prior more seasonal, the of of expect basis, basis on million from managing representative $XX Adjusted XX% earnings quite this Page combination points. model a expansion per and team we basis is strategic until has for not of of in $XX.X focusing positive line high Powerblanket's the Adjusted is customer of margin up an bottom EBITDA we the On with and This quarter. along sales quarter. objectives. of expected on and year. EBITDA our growth business year EBITDA million later XXX the equation million as was the execution is the expansion adjusted meaningfully

an was share, share fiscal XXXX. $X.XX versus loss year prior XXX versus a of EBITDA adjusted the increase last first As basis goal EPS are $X.XX per in $X.XX point in a and share, XXXX expansion quarter was per fiscal first EPS solid we XXX step towards XX.X%, GAAP margins in the achieving adjusted $X.XX still results share. per are and our forward to projecting year's reminder, per quarter from that a

adjusted the Page ended Cash and for trailing at Powerblanket. combination X, For balance GAAP sheet. $X.XX. of cash we'll available we used EPS a period, $X.XX borrowings million cover updated the as was EPS the of purchase On $XX and was XX-month additional

following remains execute we adjusted accounting collections in diversify Our we role which remains particularly providing at And an the strong. a offset in the heating in flexibility mixed next to to balance financial the believe supply allocation global the quarter the to economic seasons ended years. by chain. raw capital acquisition, necessary business X.Xx, disruptions continuing still capital the buffer will to investments typically debt M&A sheet after net uncertain a plans strong materials in the we've results completion the EBITDA our attractive as key seen play strategic quarter environment. for our see were Working few over inventory, in was option,

we On was flows the $X.X of side million $XX.X quarterly on of predominantly cash the continue the right to positive flow in page, with quarter. and cash million generate focused CapEx free maintenance.

a few in expect this to $XX quick as budget and investments Powerblanket over our to our we update have million XX. CapEx invest strategic and on We year activities. initiatives conclude maintenance some A larger in on Page begin invest

year and customers XX% of from of we team. we to which happy of with was are markets. very $XX the deal, outside wanted last those a have pause the oil Powerblanket With this of gas few quarter, acquisition the revenues minutes part the of Powerblanket about as revenue to million for on

quarter team XX% accretive around delivering start Powerblanket portal great plan we our year-over-year. were is e-commerce distribution we integration. business a in a XXXX, April that with within patents their planning heat and upon team on temperature North incredibly solutions to For has their against up build can June and already high of are spreading technology believe American business engaged to as growth the revenues in of been and technology, report and a the XXXX. guidance an we of application. network, has Thermon mentioned trailing off XX forma leadership expected The with accretive The had factored to we a will in set calendar The believe cash revenue, $XX EPS XXXX deal hours that financial will are million using for we borrowings, of purchased to fiscal results to into going GAAP be the the $XX EBITDA additional closing. We business and contribute will in We on which be months EBITDA or Thermon earlier. is our forward. fiscal million approximately basis of XX XXx margins pro

quarter the significant year a great start and incremental This was record to revenues expansion. with margin

choppy of team communities that weak its Thermon live with the and shareholders enables thank to lead are continues to may is our the and external our considerable of team improve strategic chains be pre-COVID I'll that, the concern demand runway it particular ahead results nowhere cost the where our want in against and to and environment short- initiatives. I Europe deliver or there Bruce we near While for And places, times and is along pass in from long-term for to supply here. us plans, customers, collaboration levels for work. the on broader to an update execute

Bruce Thames

lead India fiscal $X the CapEx our To developing now Thank 'XX Pacific year platforms XX to attention manufacturing SG&A growth fragmented and incremental X I'd strategic Kevin. you, in initiatives. have our meet capabilities million points for expense $X on to direct Slide a very fiscal process strategic and drive investments environmental across your our Asia to on we roughly in expanding plan, in we're and times like of market. in heaters in markets, million In these year. capitalize price to

to While this quarter slow a the lockdowns, XX% XX% we're start top fiscal to the line anticipate due in off COVID in to growth we region across year. first

this in The markets end have and oil last of focus and has cover the OEMs and on market research been billion. to can beverage, diversification gain initial market opens by dollars and anticipate our first opportunities year. with sales new and gas software secured of Genesis And Genesis fiscal order of transit range and with digital we our we upon East applications quarter, with growth, updated this on maintenance, brownfield which expands where and relationships wider later third $X systems Technology-enabled manage commercial our Network based in for pipeline tripling traction and opportunities. and approximately over continue a controllers food our to development product transit year now recently noted monitor platform A the development our We've strategic new -- the third-party manager XX% transit underway. transformation As the invest addressable this also of really commercial rail for our fiscal We've sector. begun in the efforts year. to our to on launches outside large planned up business rail leverage Middle sector. European capitalizes hired Network the

enabling X Slide a by lowering range a future. more and their cleaner to now Turning are both emissions. solutions environmental There are and how to illustrate to Thermon enable Thermon of solutions Scope wide footprint X XX customers that improve sustainable

see customers we are efficient, emissions the to XX% X and the the carbon for in converts the the water, reducing installed effect Scope field. savings. by that gas emissions first have Unit economically methane This to reduce due associated we technology are be Methane the XX units COX helps left, lower and the orders EnviroDyne-patented to These their emissions greenhouse On Destruction tax and impact fugitive of and attractive XXx.

being we right, recovery X on-site Scope gas-fired XX-year-old a reduce the were with replaced of heaters heaters. example On that sulfur heaters and X see both in These emissions control X energy replacement unit lower hydrocarbon operating Caloritech an of electrical a wide a increased fuel installed heaters to due industries electric. of There's large to across costs evaluated efficiency of range base for unit. that the are conversion the and

believe sizable there the early the a coming market we While in years. enable transition to opportunity in is transition, this

see a we by X-year on driven year was for year in growth end year of being the in the and in fiscal $XXX COVID-XX year strategic fiscal of our which we the business is believe see Moving plan. 'XX on revised With we chart, growth strategic XX on objectives. our 'XX, of million base fiscal the our year to plan. this forecast as successful In the achieve 'XX fiscal to 'XX that stages of impact Slide strategic to our markets Subsequently, X-year fiscal and recovery revenue estimate year, early initiatives. million $XXX execution of our track the

targeting year As of are also part of markets the efforts, to diversification and we of XX% revenues oil XX% represent industrial of fiscal our sector end by to outside gas 'XX. the

EBITDA expect our mid-XX% low costs, we combined same to returning to period. that range the excellence, fixed on with operational Finally, leverage margins over

guidance. year update XXXX Turning an now on to full fiscal our

of FX weakening Looking forward, areas and in chain number with there headwinds macro demand Europe. challenges, of are supply a environment current in uncertainty the

the seeing bookings However, give Fiscal raise at momentum full revenue EPS guidance of the midpoint Powerblanket, we the to our 'XX are includes impact positive confidence of to year being $XXX backlog raised quotations, 'XX represents $XXX year prior the million, growth over in the and our which fiscal acquisition. us and revenue is to range. year recent XX% which million

prior in the the Excluding raised margin year the the XX% by business 'XX, of for the core anticipate productivity basis to is $X.XX the improve our offset to at points. in onetime the share, a over an midpoint full We initiatives, to from gains year. XXX EBITDA being GAAP combined price with to over year guidance prior year increase remainder contract operational growth excellence is year. of for to profile the fiscal the XX% EPS inflation $X.XX XXX a share

growth of the prior also over full delivered year in year, 'XX adjusted our a the share of on the increase are for $X.XX EPS We fiscal XX% year. top XXX% $X.XX initiating of to an share guidance a

generates cash of base resilience recognition industries customers revenues create [investmentalized] the call Thermon geographies I that portion Diego, industry turn very the at strength large 'XX that brand recurring well-established now to of our you. over The deliver and broad of global entry. an installed fiscal barriers this range Q&A wide of our to global I'd and moderator, of a solutions, across back loyal business a cycles, beyond. of profitable the and in the significant the for strong certifications this a to flows a like this with our leadership generates look call. business, positioned business, and to Thank that well team portfolio model Thermon position As of across has growth

Operator

first Capital. [Operator Kansas Instructions] with Our from question Jon Braatz comes City

Jon Braatz

questions. of see it more at of change Can of I Bruce, pluses is And you get color and what or couple the guess a the European point? bit talked about little business? might your on revenue to of a much negatives. Number one, improvement I some this And some the in to a take Europe how some expectations? headwind

Bruce Thames

Yes.

area So contraction where obviously and as the Europe Ukraine of as is any down well in we've demand. energy impact some We is are war in Asia modestly higher year-over-year. on It's uncertainty seeing really only seen just the flat. roughly prices the depressed

that Hemisphere, forward. projecting seeing we in expect revised of that. we're forecast shortfalls going just revenue Canada. So in America We're some of U.S., certainly, these as well the kind our Latin as But factors the strength Western

recovery oil levels upside business gas and potential that as great quarter, talked Our we're start And seeing in in we've Jon, also And first about to robust. being the a a the to quite are this really certainly, got that. year. quarter, last fiscal that we spending

Jon Braatz

talked about legs you be maintenance capital forward? that in industry quarters? the and spending and have for -- kind strength in of new does to and of on your maintenance And the in oil maybe on X, additional for then projects about the continue expectation kind continuing Bruce, gas what would spending moving What elsewhere. some some another and maybe gas spending X oil the

Bruce Thames

Yes, that's a great question.

we're very different look in So the oil think fiscal cycle, at return lot new we a in sector, to a and seeing really focus Jon, around shareholders. CapEx this I discipline on more gas and investments behaviors as

see just seen deferred been here maintenance what lot with as of that's so And upstream spending as just is this and downstream, for a is well demand this a couple of recovery, the we've we and years.

of really the that on the have a there. around get most the, and out activity lot of are of focusing investments utilization, the driving what's those debottlenecking, investments is capital some throughput, groundswell there's really ground. activity think just I So to the really they the that currently types But maximizing of assets

of So we being and war on strong the the demand kind a just relatively is of even demand that really supply-demand -- maybe the remaining the heels by given picture if of tight this some there I recession. we forward that's anticipate exacerbated think going see, in slowing Ukraine,

resilient So several come. think this a going to we quarters -- for fairly is be fairly to

Jon Braatz

Okay.

an question, Okay. talked one, lot a this obviously, Obviously, about these on. initial XX got about that? units things. ordered. there's and and And And revenue how you bit Bruce. methane big of of can talk be? terms One last are what Two releases days a little you controlling is EnviroDyne, business on Number How we talking significant in about orders? XX so

Bruce Thames

mean it's $X I than less million.

really So have in would fugitive for huge this the be of how order, electricity systems, where it's more a A don't remote emissions you question of not gathering be. sources. are around and smaller this big areas. availability in a from These particularly could lot use but you targeted have

So this best. this kind where plays of is

of from push think one perspective. a Scope about things tax X and this, of carbon ethical really economically driving the reduce is you kind what's from just if and and that it, to a so And are -- both certainly, environmental standards emissions

available. So particularly areas infrastructure win today. But advantages a not carbon clear sequestration and opportunity. certainly what technologies, of distinct and competing There's it's other be remote not in really be and this alternatives, may for over could other has would some where the electricity some some this sizable capture

Operator

Drab question comes Blair. William Brian from Our with next

Brian Drab

upward and million like revenue so million related to organic. to $XX is upward be $XX just how that? a clear, $XX the about the think to that Is revision to about So Powerblanket revision, million

Kevin Fox

of plus -- in quarter well. Yes, We Brian, right outperformance consolidate that's as we'll XX for it, Powerblanket, you're 'XX call the fiscal about on. think the revenue first months our the

Brian Drab

And points fiscal is saw through we Are that points right. you to the year? XXX a do above run like had think, XXX then or How maybe 'XX basis of that, at margin Right, gross be basis move XXX in a as we rate gross potentially? margin improvement, you so you going year-over-year. nice or sustainable

Kevin Fox

we that So an volume leveraging Brian, to gross we line where some the when to going think be and I bottom margin, gross costs, when of the look with at see higher, have fixed we clearly, environment should is margins. fall

I gap, think we've the you've of past to the seen price/cost able quarters, equation. that value couple manage been over

we expect since what he's the lot to but the where we the to some that really want able improvement expect getting team, well. in I excitement through to in a the to gross think of I it we be point the I certainly continuous there's additional continuous year. really And that really transformation the continue value number initiatives, margins to do Roberto, improvement would see is to think and operational on a a And is put lot we joined related as plants. think the don't more come specifically, to to traction, of opportunity efforts

Bruce Thames

that. I also to add would Brian,

margins. single-digit large it's only it's labor the quarter, and onetime completed this we've As contract

as going drop gross year, better next X in the we to to significantly off, mix be see next what that's over we we X quarters believe the in I and contribute also -- the last envision we that So quarters. the to margin expansion experienced

Brian Drab

that project? X to was margin headwind a big gross How

Bruce Thames

you do that? Kevin, have

Kevin Fox

it's Brian. significant, Yes,

low-margin in, and about The of the year. as bulk think you it mentioned, about But it pretty that of that million revenue contract. QX then end a of $XX If was at last of all the was day, in this was Bruce started QX QX.

comps, And upside so reported we margins on just the lap there's as those as well. some certainly

Brian Drab

that was $X in much about terms in revenue you does per then of was run revenue at there Russia last -- the Russia Okay. like going that on quarter from how million the I first about was that running off. was, call, And it And and then think How quarter? thereabouts, off mentioned timing? in to run

Bruce Thames

Yes.

numbers year. been have the may business of last the more think you were kind referencing I

$XX We to backlog close roughly in Russia. have about million in

run off the months. kind of next We over expect to that XX

million roughly contracts. would on in year the in we in we $XX in and revenue to we revenue $X in think the as quarter, did first fiscal I somewhere expect million execute $X those million maybe

Brian Drab

were orders million. that just Okay. -- my And is so to And sequentially last first seasonality? quarter is maybe are we $XXX of The down million then Europe? from starting start last largely that Or questions. the impact from question. But to $XXX see that's couple

Bruce Thames

Yes.

you these point business. business. tell We're order and the bookings mean very know rates sequential far, really is revenue much I Brian, don't So weakest would the to you, quite -- in I frankly, this really incoming this our business. seasonal. And By you in and QX

to to prior is year over it factor due just because have seasonality really pronounced. You it so the the

point sequential for And really rates. would I every because the order you it I So quarter not would the depends. to year-over-year and -- relative improvements that's

at over really both are you just can be Some if look misled due to seasonality. sequentials you directions under and

Kevin Fox

And the focus, at this TTM range we point. when where million $XXX think, at look in we Brian, numbers orders, the I that's,

of it of So well. the kind as right you guide the middle in puts

Brian Drab

Got it.

all what in Can year-over-year change America, of -- for Okay. lastly, you Asia? can at just terms orders North Europe you saw talk and about you in

Bruce Thames

Yes.

very of of Western we in Latin Canada lot really, really were revenue, really activity bulk, industrials. and said, a So the broad only like the the America, was a order And base strong the well, not of U.S. strength. and incoming really Hemisphere. rates but as

building a Russia pipeline the are We see was but And rate having the of year-over-year. order some and Asia, do the the in opportunities part incoming back Europe. kind solid, weakness -- of off. that's big fall the

year. performance headwind orders in the really just comparisons. certainly, oil drive entity, that on focused and for incoming but we're But anticipated, we've when results really a some we as really driving that's legal our Western gas Europe that year-over-year to this suspended look of particularly Europe in fiscal So at rates so and the order we

Brian Drab

On minor. Okay. And in become one. last expense, it's sneaking relatively just one interest

in we of terms what for what matter and the interest similar is quarters fiscal to we for 'XX? should -- first subsequent expense that quarter that saw is tax in rate in Now expect this the

Kevin Fox

Yes. I you've rising mean, interest Brian, rate got obviously environment.

of think as I base types quarters. up, the But don't can So will think that of we we over those generally expect But accrue next changes have in the over. it's couple you control of through. indicative goes what that I factor

Brian Drab

rate, tax Yes. And too?

Kevin Fox

Yes, rate. Oh, No same. on sorry. changes tax

year. I think XX% for still we're the at

Brian Drab

it. Got

year? plugged have the we what that expecting rate in effective rest seeing in Maybe typo. was for model you're tax that today. I I'm the Is of -- that Okay. XX% a higher the just than

Kevin Fox

No, we're I I at XX%. think for but Brian, double you that total year, with the check still can off-line,

operations think the me driving items might can in But check and we we that quarter. off-line. to discrete up with the with I be let that, it related double had some European follow you

Operator

Thank remarks. you. the turn floor questions I'll this for There are Mr. no back further Bruce to Thames closing time. at

Bruce Thames

Thank our Enjoy call in the appreciate Well, for joining We your and all your day. you you. Thermon. today. of rest thank investment interest

Operator

All parties conference. good you. concludes disconnect. Have Thank may day. today's a This

Thermon (THR) 6 Aug 222023 Q1 Earnings call transcript