Record Revenue, Adjusted EBITDA, and Adjusted EPS for Fiscal 2024
Grew Revenue from Diversified End Markets to 68% of Total Revenue in Fiscal 2024
Introducing Fiscal 2025 Revenue Guidance of $527 million - $553 million

AUSTIN, TX / ACCESSWIRE / May 29, 2024 / Thermon Group Holdings, Inc. (NYSE:THR) ("Thermon"), a global leader in industrial process heating solutions, today announced consolidated financial results for the fourth quarter ("Q4 2024") of the fiscal year ended March 31, 2024 ("Fiscal 2024"). Key highlights for Q42024 as compared to the three months ended March 31, 2023 ("Q42023") include:

Produced record revenue of $127.7 million, an increase of 4%, driven by sales growth across diversified end markets and decarbonization projects
Realized fully diluted GAAP earnings per share ("EPS") of $0.29, an increase of 26%, driven by higher volume and pricing, and non-GAAP Adjusted EPS of $0.34, a decline of 17%
Generated net income of $10.1 million, an increase of 31% and Adjusted EBITDA of $23.6 million, a decrease of 6%, driven by planned investment to support long-term strategy
Achieved gross profit of $52.4 million, an increase of 2% and gross margin of 41.0%, compared to 42.1%, a contraction of approximately 110 basis points
Delivered bookings of $117.0 million, a contraction of 12%, with 73% of orders in diversified end markets, and a book-to-bill ratio of 0.92x

Key highlights for Fiscal 2024 as compared to the twelve months ended March 31, 2023 ("Fiscal 2023") include:

Produced record revenue of $494.6 million, an increase of 12%, driven by diversified end markets and decarbonization projects
Realized fully diluted GAAP EPS of $1.51, an increase of 52%, and record non-GAAP adjusted EPS of $1.82, an increase of 17%, largely driven by higher volume
Generated net income of $51.6 million, an increase of 53%, and record Adjusted EBITDA of $104.2 million, an increase of 12%
Achieved gross profit of $211.6 million, an increase of 14%, and gross margin of 42.8%, as compared to 42.0%, an expansion of approximately 80 basis points due to improved margins on over-time sales
Delivered bookings of $472.1 million, an expansion of 3%, with 72% of orders in diversified end markets, and a book-to-bill ratio of 0.95x

"By successfully executing our strategy, the Thermon team delivered outstanding results in Fiscal 2024, including record revenue, Adjusted EBITDA, and Adjusted EPS," said Bruce Thames, President and CEO. "In line with our disciplined capital allocation strategy, we deployed our strong balance sheet to acquire Vapor Power, an innovative company specializing in electric- and gas-fired boilers, in the fourth quarter. We made significant progress on our end market diversification strategy, with revenue from non-oil and gas end markets comprising 68% of Thermon's total revenue for the year, inclusive of revenue from Vapor Power in Q4. This achievement positions us within striking distance of our 70% revenue diversification target two years ahead of schedule. Additionally, in Fiscal 2024, we more than doubled our revenue associated with decarbonization and accelerated the expansion of the Genesis Network, our digital solution for heat trace system controls and monitoring. As we look ahead to Fiscal 2025, while we expect the operating environment to remain dynamic, the Thermon team will be laser-focused on realizing continuous improvement, implementing our strategy and creating long-term value for our shareholders."


Financial Highlights	Three Months Ended March 31,									Twelve Months Ended March 31,

Unaudited, in millions, except per share data	2024			2023			% Change			2024			2023			% Change

Sales ¹	$	127.7		$	122.5			4.2	%	$	494.6		$	440.6			12.3	%
Point-in-Time		86.0			77.8			10.5	%		300.6			277.3			8.4	%
Over Time - Small Projects		18.3			18.8			(2.7	)%		74.5			65.4			13.9	%
Over Time - Large Projects		23.4			25.9			(9.7	)%		119.6			97.9			22.2	%
Net Income		10.1			7.7			31.2	%		51.6			33.7			53.2	%
GAAP EPS		0.29			0.23			26.1	%		1.51			1.00			51.8	%
Adjusted Net Income ²		11.6			14.0			(17.1	)%		61.9			52.8			17.3	%
Adjusted EPS²		0.34			0.41			(17.1	)%		1.82			1.56			16.5	%
Adjusted EBITDA³		23.6			25.1			(6.0	)%		104.2			93.3			11.7	%

% of Sales:
Point in Time		67.3	%		63.5	%	380 bps				60.8	%		62.9	%	-210 bps
Over Time - Small Projects		14.3	%		15.3	%	-100 bps				15.1	%		14.8	%	30 bps
Over Time - Large Projects		18.3	%		21.1	%	-280 bps				24.2	%		22.2	%	200 bps
Net Income		7.9	%		6.3	%	160 bps				10.4	%		7.6	%	280 bps
Adjusted Net Income ²		9.1	%		11.4	%	-230 bps				12.5	%		12.0	%	50 bps
Adjusted EBITDA ³		18.5	%		20.5	%	-200 bps				21.1	%		21.2	%	-10 bps

₁_{Over Time sales were previously reported as a single figure and are now presented as Over Time - Small Projects and Over Time - Large Projects. Over Time - Small Projects are each less than $0.5 million in total revenue and Over Time - Large Projects are each equal to or greater than $0.5 million in total revenue.}
₂_{Adjusted net income represents net Income (Loss) after the impact of acquisition costs, restructuring, costs associated with impairments and other charges, amortization of intangible assets and the tax expense/(benefit) for impact of foreign rate increases (see table, "Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS").}
₃_{See table, "Reconciliation of Net Income to Adjusted EBITDA."}

Sales attributable to the recent Vapor Power acquisition were $10.9 million in the quarter, with integration in progress and on schedule. Organic sales (excluding contribution from Vapor Power) were $116.8 million as compared to $122.5 million in Q4 2023, a decrease of $5.7 million, or 5% driven by a slowdown in Oil and Gas end markets partially offset by growth in diversified end markets as well as investments in decarbonization and electrification projects.

Backlog was $186.1 million as of March 31, 2024, representing a $22.8 million increase, or 14%, as compared to Q4 2023 backlog of $163.3 million. Orders in Q4 2024 were $117.0 million compared to $133.2 million in Q4 2023, a decrease of $16.2 million or 12%.

Balance Sheet, Liquidity and Cash Flow

Thermon maintained a strong and flexible balance sheet during Q4 2024. The Net Debt-to-Adjusted EBITDA ratio increased to 1.2x from 0.8x in the prior year period and decreased by 0.3x compared to Q3 2024. The sequential reduction was due to the repayment of $40.6 million of debt during the quarter. Gross outstanding debt increased year-over-year by $59.6 million to $172.5 million, driven by the acquisition of Vapor Power. Available liquidity at the end of the quarter totaled $141.3 million, including $48.6 million in cash and cash equivalents and $92.7 million available under credit agreements.

Working capital increased by 6% to $162.2 million during Q42024 largely related to the Vapor Power acquisition. Capital expenditures during the quarter were $3.1 million, a decrease of $1.2 million from the prior year period. Cash from operating activities was $37.4 million and Free Cash Flow was a record $35.1 million in the quarter.

The Company's withdrawal from its operations in the Russian Federation through a disposition of its Russian subsidiary (the "Russia Exit") was completed in the fourth quarter of Fiscal 2024 following the receipt of all requisite regulatory approvals.

Balance Sheet Highlights	Three Months Ended March 31,
Unaudited, in millions, except ratio	2024			2023			% Change


Cash and Cash Equivalents	$	48.6		$	35.6			36.5	%
Total Debt		172.5			112.9			52.8	%
Net Debt¹/ TTM Adjusted EBITDA		1.2	x		0.8	x		0.4	x
Working Capital ²		162.2			152.4			6.4	%
Capital Expenditures		3.1			4.3			(27.9	)%
Free Cash Flow³		35.1			21.9			60.3	%

₁_{Total company debt, net of cash and cash equivalents.}
₂_{Working Capital equals Accounts Receivable plus Inventory less Accounts Payable.}
₃_{See table, Reconciliation of Cash Provided by Operating Activities to Free Cash Flow.}

Fiscal 2025 Outlook

Greg Lucas, Thermon's Vice President, Corporate Controller, added, "For the coming fiscal year ending March 31, 2025 ("Fiscal 2025"), we expect our customers to remain cautious with respect to large capital projects under the current macroeconomic backdrop. Nonetheless, we are optimistic about our ability to deliver revenue and earnings growth in Fiscal 2025 as we continue to execute our strategy and improve our cost structure through operational efficiency. We anticipate revenue to be in the range of approximately $527 million to $553 million, which represents year-over-year growth of 9% at the midpoint and Adjusted EBITDA to be approximately $112 million to $120 million representing 11% growth at the midpoint of the range. We expect GAAP EPS to be approximately $1.57 to $1.73 and Adjusted EPS to be approximately $1.90 to $2.06. We will continue to prudently invest to advance our strategy and position Thermon for success over both the near and long term."

Conference Call and Webcast Information

Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, and Greg Lucas, Vice President, Corporate Controller, will discuss Q4 2024 results during a conference call today, May 29, 2024 at 10:00 a.m. (Central Time). The call will be simultaneously webcast and the accompanying slide presentation containing financial information can be accessed on Thermon's investor relations website located at http://ir.thermon.com. Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and (412) 902-0031 from outside of the United States/Canada. A replay of the webcast will be available on Thermon's investor relations website after the conclusion of the call.

About Thermon

Through its global network, Thermon provides safe, reliable and mission critical industrial process heating solutions. Thermon specializes in providing complete flow assurance, process heating, temperature maintenance, freeze protection and environmental monitoring solutions. Thermon is headquartered in Austin, Texas. For more information, please visit www.thermon.com.

Non-GAAP Financial Measures

Disclosure in this release of "Adjusted EPS," "Adjusted EBITDA," "Adjusted EBITDA margin," "Adjusted Net Income/(Loss)," "Free Cash Flow," "Organic Sales" and "Net Debt," which are "non-GAAP financial measures" as defined under the rules of the Securities and Exchange Commission (the "SEC"), are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). "Adjusted Net Income/(Loss)" and "Adjusted EPS" (or "Adjusted fully diluted EPS") represent net income/(loss) before the impact of restructuring and other charges/(income), costs associated with impairments and other charges, acquisition costs, amortization of intangible assets, tax expense for impact of foreign rate increases, and any tax effect of such adjustments. "Adjusted EBITDA" represents net income/(loss) before interest expense (net of interest income), income tax expense, depreciation and amortization expense, stock-based compensation expense, acquisition costs and costs associated with restructuring and other income/(charges), costs associated with impairments and other charges. "Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of total revenue. "Free Cash Flow" represents cash provided by operating activities less cash used for the purchase of property, plant, and equipment, net of sales of rental equipment and proceeds from sales of land and buildings. "Organic Sales" represents revenue excluding the impact of the Company's December 29, 2023, acquisition of Vapor Power. "Net Debt" represents total outstanding principal debt less cash and cash equivalents on hand.

We believe these non-GAAP financial measures are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin or Adjusted Net Income/(Loss). Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income/(Loss) Free Cash Flow and Organic Sales should be considered in addition to, and not as substitutes for, income from operations, net income/(loss), net income/(loss) per share, revenue and other measures of financial performance reported in accordance with GAAP. We provide Free Cash Flow as a measure of liquidity. Our calculation of Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income/(Loss) and Free Cash Flow may not be comparable to similarly titled measures reported by other companies. For a description of how Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income/(Loss) and Free Cash Flow are calculated and reconciliations to the corresponding GAAP measures, see the sections of this release titled "Reconciliation of Net Income/(Loss) to Adjusted EBITDA," "Reconciliation of Net Income/(Loss) to Adjusted Net Income/(Loss) and Adjusted EPS" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow." We are unable to reconcile projected Fiscal 2025 Adjusted EPS to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, we are unable to provide a reconciliation for projected Fiscal 2025 Adjusted EPS without unreasonable effort.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information such as the anticipated financial performance of our Vapor Power acquisition, our execution of our strategic initiatives, and our ability to achieve our financial performance targets for Fiscal 2026 and our Fiscal 2025 full-year guidance. When used herein, the words "anticipate," "assume," "believe," "budget," "continue," "contemplate," "could," "should" "estimate," "expect," "intend," "may," "plan," "possible," "potential," "predict," "project," "will," "would," "future," and similar terms and phrases are intended to identify forward-looking statements in this release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows.

Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of our key end markets and related capital investments; (iii) our ability to operate successfully in foreign countries; (iv) the outbreak of a global pandemic, including COVID-19 and its variants; (v) our ability to successfully develop and improve our products and successfully implement new technologies; (vi) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (vii) our ability to deliver existing orders within our backlog; (viii) our ability to bid and win new contracts; (ix) the imposition of certain operating and financial restrictions contained in our debt agreements; (x) our revenue mix; (xi) our ability to grow through strategic acquisitions; (xii) our ability to manage risk through insurance against potential liabilities (xiii) changes in relevant currency exchange rates; (xiv) tax liabilities and changes to tax policy; (xv) impairment of goodwill and other intangible assets; (xvi) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xvii) our ability to protect our trade secrets; (xviii) our ability to protect our intellectual property; (xix) our ability to protect data and thwart potential cyber-attacks; (xx) a material disruption at any of our manufacturing facilities; (xxi) our dependence on subcontractors and third-party suppliers; (xxii) our ability to profit on fixed-price contracts; (xxiii) the credit risk associated to our extension of credit to customers; (xxiv) our ability to achieve our operational initiatives; (xxv) unforeseen difficulties with expansions, relocations, or consolidations of existing facilities; (xxvi) potential liability related to our products as well as the delivery of products and services; (xxvii) our ability to comply with foreign anti-corruption laws; (xxviii) export control regulations or sanctions; (xxix) changes in government administrative policy; (xxx) environmental and health and safety laws and regulations as well as environmental liabilities; (xxxi) climate change and related regulation of greenhouse gases and (xxxii) those factors listed under Item 1A "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, which we anticipate filing with the Securities and Exchange Commission (the "SEC") on May 29, 2024, and in any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K or other filings that we have filed or may file with the SEC. Any one of these factors or a combination of these factors could materially affect our future results of operations and could influence whether any forward-looking statements contained in this release ultimately prove to be accurate.

Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.

CONTACT:
Greg Lucas, Vice President, Corporate Controller
Ivonne Salem, Vice President, FP&A and Investor Relations
(512) 690-0600
Investor.Relations@thermon.com

Thermon Group Holdings, Inc. Consolidated Statements of Operations (Unaudited, in thousands except per share data)

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2024			2023			2024			2023
Sales	$	127,654		$	122,481		$	494,629		$	440,590
Cost of sales		75,267			70,957			283,065			255,465
Gross profit		52,387			51,524			211,564			185,125
Operating expenses:
Selling, general and administrative expenses		32,823			33,957			123,820			117,003
Deferred compensation plan expense/(income)		554			291			1,231			(208	)
Amortization of intangible assets		3,423			2,375			10,158			9,447
Restructuring and other charges/(income)		(1,237	)		1,025			984			3,693
Income from operations		16,824			13,876			75,371			55,190
Other income/(expenses):
Interest expense, net		(3,582	)		(1,751	)		(8,845	)		(5,871	)
Other income/(expense)		421			506			1,148			(86	)
Income before provision for taxes		13,663			12,631			67,674			49,233
Income tax expense/(benefit)		3,580			4,930			16,086			15,567
Net income	$	10,083		$	7,701		$	51,588		$	33,666

Net income/(loss) per common share:
Basic income per share	$	0.30		$	0.23		$	1.53		$	1.01
Diluted income per share	$	0.29		$	0.23		$	1.51		$	1.00
Weighted-average shares used in computing net income/(loss) per common share:
Basic common shares		33,723			33,505			33,671			33,469
Fully-diluted common shares		34,239			33,980			34,067			33,746

Thermon Group Holdings, Inc. Consolidated Balance Sheets (Unaudited, in thousands, except share and per share data)

	March 31, 2024			March 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	48,631		$	35,635
Accounts receivable, net of allowances of $1,428 and $2,682 as of March 31, 2024 and March 31, 2023, respectively		107,318			97,627
Inventories, net		86,321			82,132
Contract assets		16,690			16,272
Prepaid expenses and other current assets		14,010			16,138
Income tax receivable		1,630			3,138
Total current assets		274,600			250,942
Property, plant and equipment, net of depreciation and amortization of $73,422 and $67,450 as of March 31, 2024 and March 31, 2023, respectively		68,335			63,288
Goodwill		270,786			219,612
Intangible assets, net		127,092			93,970
Operating lease right-of-use assets		13,613			13,570
Deferred income taxes		1,074			688
Other non-current assets		12,240			7,559
Total assets	$	767,740		$	649,629
Liabilities and equity
Current liabilities:
Accounts payable		31,396			27,330
Accrued liabilities		31,624			39,364
Current portion of long-term debt		14,625			10,222
Borrowings under revolving credit facility		5,000			14,500
Contract liabilities		20,531			8,483
Lease liabilities		3,273			3,364
Income taxes payable		2,820			6,809
Total current liabilities	$	109,269		$	110,072
Long-term debt, net of current maturities and deferred debt issuance costs and debt discounts of $918 and $429 as of March 31, 2024 and 2023, respectively		151,957			87,710
Deferred income taxes		9,439			12,084
Non-current lease liabilities		12,635			12,479
Other non-current liabilities		9,553			8,296
Total liabilities	$	292,853		$	230,641
Equity
Common stock: $.001 par value; 150,000,000 authorized; 33,730,243 and 33,722,225 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively	$	34		$	33
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding		-			-
Additional paid in capital		243,555			239,860
Treasury stock, common stock, at cost; 8,018 and zero shares at March 31, 2024 and 2023, respectively		(250	)		-
Accumulated other comprehensive loss		(57,235	)		(58,100	)
Retained earnings		288,783			237,195
Total equity	$	474,887		$	418,988
Total liabilities and equity	$	767,740		$	649,629

Thermon Group Holdings, Inc. Consolidated Statements of Cash Flows (Unaudited, in thousands)
	Twelve Months Ended March 31,
	2024			2023			2022
Operating activities
Net income/(loss)	$	51,588		$	33,666		$	20,092
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation and amortization		18,837			19,231			20,205
Amortization of debt costs		489			317			596
Loss on extinguishment of debt		-			-			2,569
Impairment of property, plant and equipment		-			298			-
Stock compensation expense		5,754			5,954			3,803
Deferred income taxes		(2,079	)		(4,562	)		(1,648	)
Reserve for uncertain tax positions, net		84			36			77
(Gain)/Loss on long-term cross currency swap		-			-			(774	)
Remeasurement (gain)/loss on intercompany balances		(784	)		(914	)		(247	)
Loss on sale of business, net of cash surrendered		-			-			306
Changes in operating assets and liabilities:
Accounts receivable		(540	)		(2,912	)		(21,739	)
Inventories		3,778			(8,839	)		(8,598	)
Contract assets		(101	)		4,051			(3,292	)
Other current and non-current assets		(4,935	)		57			(2,891	)
Accounts payable		2,707			(7,119	)		13,752
Accrued liabilities and non-current liabilities		(6,355	)		11,147			2,227
Income taxes payable and receivable		(2,488	)		7,303		$	4,316
Net cash provided by/(used in) operating activities	$	65,955		$	57,714		$	28,754
Investing activities
Purchases of property, plant and equipment		(11,016	)		(9,453	)		(5,220	)
Sale of rental equipment		99			197			689
Proceeds from sale of property, plant and equipment		840			-			-
Proceeds from disposal of business		1,027			-			-
Cash paid for acquisitions, net of cash acquired		(100,472	)		(35,299	)		-
Net cash provided by/(used in) in investing activities	$	(109,522	)	$	(44,555	)	$	(4,531	)
Financing activities
Proceeds from Term Loan A		100,000			-			139,793
Payments on Term Loan A		(30,872	)		(27,180	)		(170,780	)
Proceeds from revolving credit facility		18,000			34,500			18,459
Payments on revolving credit facility		(27,500	)		(20,000	)		(8,134	)
Issuance costs associated with debt financing		(759	)		-			(1,265	)
Lease financing		(28	)		(142	)		(155	)
Issuance of common stock including exercise of stock options		-			-			97
Repurchase of treasury shares under authorized program		(250	)		-			-
Repurchase of employee stock units on vesting		(2,058	)		(643	)		(673	)
Net cash provided by/(used in) financing activities	$	56,533		$	(13,465	)	$	(22,658	)
Less: Net change in cash balances classified as assets held-for-sale		-			(3,939	)		-
Effect of exchange rate changes on cash and cash equivalents		(1,055	)		(1,166	)		(84	)
Change in cash and cash equivalents	$	11,911		$	(5,411	)	$	1,481
Cash, cash equivalents and restricted cash at beginning of period		38,520			43,931			42,450
Cash, cash equivalents and restricted cash at end of period	$	50,431		$	38,520		$	43,931

Thermon Group Holdings, Inc. Reconciliation of Net Income/(Loss) to Adjusted EBITDA (Unaudited, in thousands)

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2024			2023			2024			2023
GAAP Net income/(loss)	$	10,083		$	7,701		$	51,588		$	33,666
Interest expense, net		3,582			1,751			8,845			5,871
Income tax expense/(benefit)		3,580			4,930			16,086			15,567
Depreciation and amortization expense		5,762			4,674			18,837			19,231
EBITDA (non-GAAP)	$	23,007		$	19,056		$	95,356		$	74,335
Stock compensation expense		1,622			1,516			5,754			5,954
Transaction-related costs		248			209			2,107			335
Restructuring and other charges/(income)¹		(1,237	)		1,025			984			3,693
Other impairment charges/(income)¹		-			3,279			-			8,945
Adjusted EBITDA (non-GAAP)	$	23,640		$	25,085		$	104,201		$	93,262
Adjusted EBITDA %		18.5	%		20.5	%		21.1	%		21.2	%

₁_{Charges related to the Russia Exit}


Thermon Group Holdings, Inc. Reconciliation of Net Income/(Loss) to Adjusted Net Income/(Loss) and Adjusted EPS (Unaudited, in thousands except per share amounts)
	Three Months Ended March 31,						Twelve Months Ended March 31,
	2024			2023			2024			2023
GAAP Net income/(loss)	$	10,083		$	7,701		$	51,588		$	33,666
Transaction-related costs		248			209			2,107			335		Operating expense
Amortization of intangible assets		3,423			2,375			10,158			9,447		Intangible amortization
Restructuring and other charges/(income)¹		(1,237	)		1,025			984			3,693		Operating expense
Impairments and other charges/(income)¹		-			3,279			-			8,945		Cost of Sales and Operating expense
Tax effect of adjustments		(881	)		(598	)		(2,947	)		(3,307	)
Adjusted Net Income/(Loss) (non-GAAP)	$	11,636		$	13,991		$	61,890		$	52,779

Adjusted Fully Diluted Earnings per Common Share (Adjusted EPS) (non-GAAP)	$	0.34		$	0.41		$	1.82		$	1.56

Fully-diluted common shares		34,239			33,980			34,067			33,746

₁_{Charges related to the Russia Exit}


Thermon Group Holdings, Inc. Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited, in thousands)
	Three Months Ended March 31,						Twelve Months Ended March 31,
	2024			2023			2024			2023
Cash provided by/(used in) by operating activities	$	37,367		$	26,109		$	65,955		$	57,714
Cash provided by/(used in) by investing activities		(1,243	)		(4,246	)		(109,522	)		(44,555	)
Cash provided by/(used in) by financing activities		(41,005	)		(20,194	)		56,533			(13,465	)

Cash provided by operating activities	$	37,367		$	26,109		$	65,955		$	57,714
Less: Cash used for purchases of property, plant and equipment		(3,134	)		(4,280	)		(11,016	)		(9,453	)
Plus: Sales of rental equipment		24			34			99			197
Free cash flow provided (non-GAAP)	$	35,097		$	21,863		$	55,878		$	48,458

SOURCE: Thermon Group Holdings, Inc.

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