CSW Industrials, Inc. (Nasdaq: CSWI or the "Company") today
reported record results for the fiscal 2023 fourth quarter and full
year periods ended March 31, 2023.
Fiscal 2023
Fourth Quarter Highlights
(comparisons to fiscal 2022 fourth quarter)
- Total revenue increased 12.9% to
$195.7 million, with an organic growth rate of 10.5%
- Net income attributable to CSWI
increased 46.7% to $27.1 million, compared to $18.4 million, with
no adjustments to earnings in either period
- Earnings per diluted share (EPS)
increased 48.7% to $1.74, compared to $1.17
- EBITDA increased 32.8% to $49.4
million, with margin expansion of 370 bps to 25.2%
- Paid down $23.5 million of debt and
improved balance sheet strength with a leverage ratio (Debt to
EBITDA), in accordance with our credit facility, of approximately
1.3x
- Executed an interest rate swap to
fix the interest rate at 3.85% plus margin for the first $100
million borrowing under our Revolving Credit Facility
Fiscal 2023
Full Year Highlights (comparisons to fiscal 2022
full year)
- Total revenue increased 21.0% to
$757.9 million, with an organic growth rate of 15.3%
- Net income attributable to CSWI
increased 39.1% to $96.4 million, compared to $69.3 million,
adjusted to exclude the final TRUaire purchase accounting effect
from the GAAP amount of $66.4 million
- EPS of $6.20 increased 41.2%,
compared to $4.39, adjusted to exclude the final TRUaire purchase
accounting effect from the GAAP EPS of $4.20
- EBITDA increased 30.6% to $174.1
million, with margin expansion of 170 bps to 23.0%
- Record operating cash flows of
$121.5 million (75.8% increase)
- Invested $58.3 million in
acquisitions and $14.0 million in organic capital expenditures,
while returning total cash of $46.3 million to shareholders through
share repurchases ($35.7 million) and dividends
($10.6 million)
Comments from the Chairman, President,
and Chief Executive Officer
Joseph B. Armes, CSW Industrials’ Chairman,
President, and Chief Executive Officer, commented, "I am very
pleased with our financial results in fiscal 2023. We had a record
year, driven by both strong organic growth and our accretive
acquisitions. This growth has driven an improvement in
profitability as we continue to leverage our revenue growth,
resulting in higher margins and higher free cash flow."
Armes continued, "We exited the year with
positive momentum which positions us well for another year of
growth and record profit in fiscal 2024, despite macroeconomic
uncertainty. We expect revenue and profit growth, with expanding
margins in each of our three operating segments. I continue to be
proud of CSWI's strong employee-centric culture as we work together
to create value for our shareholders. Importantly, our team members
participate meaningfully in our success through our Employee Stock
Ownership Plan, creating an alignment of interests between our
workforce and shareholders. The future for CSWI is very
encouraging."
Fiscal 2023
Fourth Quarter Consolidated
Results
Fiscal fourth quarter revenue was $195.7
million, a $22.4 million (12.9%) increase from the prior year
period. Total revenue growth included $18.1 million of organic
growth (80.8% of total revenue growth), with the remainder
contributed by the Cover Guard, AC Guard and Falcon Stainless Inc.
("Falcon") acquisitions. In the current quarter, price actions
contributed to revenue growth across all segments.
Gross profit in the fiscal fourth quarter was
$85.3 million, representing 18.0% growth from $72.3 million in the
prior year period. Gross profit margin was 43.6%, compared to 41.7%
in the prior year period. The gross profit margin increase resulted
from pricing actions.
Operating expenses as a percent of revenue were
23.3% in the current period, compared to the prior year period of
25.0%, as strong revenue growth outpaced the increased operating
expenses. Operating expenses were $45.6 million in the current year
period, compared to $43.4 million in the prior year period.
Operating income in the current period was $39.8
million, compared to $28.9 million in the prior year period.
Operating income as a percent of revenue was 20.3% in fiscal 2023
fourth quarter, compared to 16.7% in the prior year period. The 360
bps improvement in operating income margin resulted from the
previously discussed improvement in gross profit margin and
operating expense margin.
Net income attributable to CSWI (net of
non-controlling interest in the joint venture) increased 46.7% to
$27.1 million, compared to the prior year period of $18.4 million,
while EPS increased 48.7% to $1.74, compared to $1.17 in the prior
year period.
Fiscal 2023 fourth quarter EBITDA increased to
$49.4 million, representing 32.8% growth from
$37.2 million in the prior year period. As revenue growth
outpaced incremental expenses, the EBITDA margin improved to 25.2%,
from 21.5% in the prior year period.
During fiscal fourth quarter, we paid down $23.5
million of debt, using the strong cash flows generated by our
operations. In addition, we entered into an interest rate swap to
hedge our exposure to variability in cash flows from interest
payments on the first $100.0 million borrowing under our
Revolving Credit Facility.
Following quarter end, the Company declared a
12% increase in its quarterly cash dividend, to $0.19 per share.
This dividend, which was paid on May 12, 2023, to shareholders
of record on April 28, 2023, was the seventeenth consecutive
quarterly regular cash dividend.
On a GAAP basis, the Company’s effective tax
rate for the fiscal fourth quarter was 25.1%, which differed from
the statutory rate primarily due to state tax expense, net of
federal benefit, nondeductible executive compensation and the lift
of our assertion of permanent reinvestment in a foreign
subsidiary.
Fiscal 2023
Fourth Quarter Segment
Results
The Contractor Solutions segment revenue was
$133.9 million, a $13.5 million (11.2%) increase from the prior
year period, comprised of inorganic growth from Cover Guard, AC
Guard and Falcon ($4.3 million), and organic growth of $9.2 million
(68.1% of total revenue growth), driven by pricing actions that
were partially offset by a decrease in unit volumes. As compared to
the prior year period, net revenue growth was driven by the HVAC/R,
architecturally-specified building products, and plumbing end
markets. Segment operating income improved to $35.8 million,
compared to $28.5 million in the prior year period. The incremental
profit resulted from revenue growth and the inclusion of recent
acquisitions of Cover Guard, AC Guard and Falcon. This incremental
profit was partially offset by increased spending on employee
compensation as well as depreciation and amortization expenses.
Segment operating income margin in the fiscal fourth quarter was
26.7%, compared to 23.7% in the prior year period. The increase in
segment operating income margin resulted primarily from pricing
actions, as well as reduced growth in operating expense as a
percentage of revenue. Segment EBITDA in the fiscal fourth quarter
was $42.7 million, or 31.9% of revenue, compared to $34.9 million,
or 28.9% of revenue in the prior year period.
The Engineered Building Solutions segment
revenue was $25.0 million, a 4.5% increase compared to $23.9
million in the prior year period, driven by commercial initiatives
and pricing actions. Segment operating income was $2.7 million, or
10.9% of revenue, compared to the prior year period of $1.7
million, or 7.2% of revenue, due to improved project margins.
Segment EBITDA and EBITDA margin were $3.1 million and 12.4% in the
fiscal fourth quarter, compared to $2.2 million and 9.1% in the
prior year period.
The Specialized Reliability Solutions segment
revenue was $38.5 million, a $7.7 million (25.1%) increase from the
prior year period, primarily due to unit volume growth as well as
pricing actions. Increased net revenue was driven by growth in all
end markets including the energy, general industrial, mining and
rail transportation end markets. Segment operating income improved
significantly to $6.5 million, as compared to $3.7 million in the
prior year period. Strong organic revenue growth was achieved
without an increase in operating expense spend, resulting in an
increase in operating income of 75.3% from the prior year period.
Segment operating income margin in the fiscal fourth quarter
improved to 16.9%, compared to the prior year period of 12.1%.
Segment EBITDA improved by 55.1% to $8.2 million in the fiscal
fourth quarter, compared to $5.3 million, with a current period
margin of 21.3% as compared to 17.2% in the prior year period.
Fiscal Full Year 2023
Consolidated Results
Consolidated revenue was $757.9 million,
representing 21.0% growth from $626.4 million in the prior year,
with all segments reporting organic growth. Of the
$131.5 million total growth, $95.6 million (72.7% of total
revenue growth) resulted from organic growth attributable to
pricing actions, with the remainder ($35.9 million)
contributed by the Shoemaker, Cover Guard, AC Guard and Falcon
acquisitions.
GAAP consolidated gross profit in the current
year was $318.2 million, representing $62.3 million
(24.3%) growth from the $256.0 million of gross profit in the
prior year, with growth in all three reporting segments.
Incremental gross profit resulted predominantly from revenue growth
due to pricing actions, the acquisitions of Shoemaker, Cover Guard,
AC Guard and Falcon, along with the prior year TRUaire purchase
accounting effect ($3.9 million) and TRUaire Vietnam's COVID
related expenses ($1.7 million) that did not recur. Gross profit
margin as a percentage of sales was 42.0%, compared to the prior
year period of 40.9%, or 41.5% as adjusted for the final TRUaire
purchase accounting effect.
Operating expenses as a percent of revenue
improved to 23.6%, compared to 25.3% in the prior year period, as
revenue growth outpaced the increase in operating expenses.
Operating expenses in the current year were $179.1 million,
compared to the prior year of $158.6 million. The additional
operating expenses were primarily due to the inclusion of Shoemaker
in the current year, incremental expenses related to employee
compensations, third-party sales commissions, marketing and travel
to support revenue growth, increased professional fees to support
business growth and recent acquisitions, along with increased
depreciation and amortization.
In the current year, GAAP operating income was
$139.1 million, compared to $97.4 million or
$101.3 million adjusted for the aforementioned purchase
accounting effect. The incremental operating income resulted from
the increased gross profit, partially offset by the increase in
operating expenses. Operating income margin improved to 18.3%,
compared to the prior year of 15.5%, or 16.2% as adjusted for the
purchase accounting effect.
In the current year, net income attributable to
CSWI improved to $96.4 million, representing growth of
39.1%, or $6.20 per diluted share, an increase of 41.2%. In
the prior year, reported net income attributable to CSWI was
$66.4 million, or $4.20 of EPS, and when adjusted to exclude
the purchase accounting effect was $69.3 million, $4.39 of EPS.
Fiscal 2023 adjusted EBITDA increased 30.6% to
$174.1 million from $133.3 million in the prior year.
EBITDA as percent of revenue improved to 23.0%, compared to 21.3%,
in the prior year.
Net cash provided by operating activities for
the fiscal 2023 year improved significantly to $121.5 million, or
75.8%, compared to $69.1 million in the prior year, driven by
increased profit and working capital improvements.
In line with the stated capital allocation
strategy, during fiscal 2023, the Company invested in organic
capital expenditures, acquisitions, dividends and share
repurchases. Organic capital expenditures during the current and
prior fiscal years were $14.0 million and $15.7 million,
respectively. Organic capital expenditures have been focused on
capacity expansion, enterprise resource planning systems, new
product introductions, continuous improvement and automation.
During the year ended March 31, 2023 we acquired Falcon for an
aggregate purchase price of $37.1 million, comprised of $33.6
million in cash consideration (net of cash received), the assets of
Cover Guard and AC Guard and the related intellectual property for
$19.7 million in cash consideration and additional $0.3 million
annuity payments, and other acquisitions for $2.7 million in cash
consideration. These acquisitions were funded through a combination
of cash on hand and borrowings under our Revolving Credit Facility.
Repurchases of shares under our share repurchase programs during
the current and prior fiscal years were $35.7 million (336,347
shares) and $14.4 million (126,115 shares), respectively. Dividend
payments of $10.6 million and $9.5 million were paid
during the current and prior fiscal years, respectively.
As of March 31, 2023, $253.0 million was
outstanding on the $500.0 million Revolving Credit Facility,
resulting in borrowing capacity of $247.0 million. As of fiscal
year end, CSWI reported a leverage ratio, in accordance with our
credit facility, of approximately 1.3x debt to EBITDA.
The Company’s effective tax rate for the current
year was 23.3% on a GAAP basis, which was in the range of the
Company’s previous expectation of 23%-24.0%.
Fiscal 2023
Full Year Segment Results
The Contractor Solutions segment revenue was
$513.8 million, a $97.3 million (23.4%) increase from the
prior year. Revenue growth was comprised of inorganic growth of
$35.9 million from the acquisitions of Shoemaker, Cover Guard,
AC Guard and Falcon, organic growth of $61.4 million (63.1% of
total revenue growth) due to pricing actions that were partially
offset by a slight decrease in unit volumes. As compared to the
prior year period, strong net revenue growth was driven by the
HVAC/R, architecturally-specified building products, and plumbing
end markets. Segment operating income was $126.2 million,
compared to the prior year of $96.1 million, or
$100.0 million, adjusted to exclude the previously mentioned
purchase price accounting effect. The incremental profit resulted
from solid revenue growth, inclusion of recent acquisitions of
Shoemaker, Cover Guard, AC Guard and Falcon, as well as the prior
year TRUaire purchase accounting effect ($3.9 million) and TRUaire
Vietnam's COVID related expenses ($1.7 million) that did not recur.
This incremental profit was partially offset with increased
spending due to the inclusion of Shoemaker, employee compensation
as the segment continues to build the infrastructure to support
growth, increased third-party sales commissions and professional
fees, as well as increased depreciation and amortization expenses.
Segment operating income margin in the current year was 24.6%,
compared to the prior year of 23.1% (24.0% as adjusted), as revenue
growth outpaced the increased expenses discussed above. Segment
EBITDA in the current year was $153.2 million, or 29.8% of revenue,
compared to $123.9 million, or 29.7% of revenue in the prior
year.
The Engineered Building Solutions segment
revenue was $104.0 million, a $6.7 million (6.9%)
increase from the prior year, primarily due to sustained commercial
activity, retention of market share and successful pricing actions.
Segment operating income was $12.9 million, a 16.1% increase
compared to the prior year of $11.1 million, due to
incremental profit and a reduction in operating expense spend,
partially offset by completion of lower margin legacy projects.
Segment operating income margin in the current year was 12.4%,
compared to the prior year of 11.4%. Segment EBITDA and EBITDA
margin in the current year were $14.4 million and 13.9%, compared
to $13.1 million and 13.4% in the prior year.
The Specialized Reliability Solutions segment
revenue improved to $147.4 million, a $31.4 million (27.1%)
increase from the prior year of $116.0 million, all of which was
organic, due to pricing actions and increased unit volumes, with
growth in all end markets served. In the current year, segment
operating income improved to $20.2 million, or 13.7% of revenue,
compared to the prior year of $9.0 million, or 7.8% of revenue.
Improved segment operating income resulted from revenue growth as
well as gross margin improvement as a result of leverage from unit
volume increase, paired with reduced growth in operating expenses
as a percentage of revenue. Segment EBITDA and EBITDA margin
improved to $26.0 million and 17.6% in the fiscal year, compared to
$15.1 million and 13.0% in the prior year.
Conference Call Information
The Company will host a conference call today at
10:00 a.m. ET to discuss the results, followed by a
question-and-answer session for the investment community. A live
webcast of the call can be accessed at
https://cswindustrials.gcs-web.com/. To access the call,
participants may dial 1-877-407-0784, international callers may use
1-201-689-8560, and request to join the CSW Industrials earnings
call.
A telephonic replay will be available shortly
after the conclusion of the call and until, Thursday, June 8, 2023.
Participants may access the replay at 1-844-512-2921, international
callers may use 1-412-317-6671, and enter access code 13738518. The
call will also be available for replay via webcast link on the
Investors portion of the CSWI website www.cswindustrials.com.
Safe Harbor Statement
This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, as amended. Words
or phrases such as "may," "should," "expects," "could," "intends,"
"plans," "anticipates," "estimates," "believes," "forecasts,"
"predicts" or other similar expressions are intended to identify
forward-looking statements, which include, without limitation,
earnings forecasts, effective tax rate, statements relating to our
business strategy and statements of expectations, beliefs, future
plans and strategies and anticipated developments concerning our
industry, business, operations, and financial performance and
condition.
The forward-looking statements included in this
press release are based on our current expectations, projections,
estimates, and assumptions. These statements are only predictions,
not guarantees. Such forward-looking statements are subject to
numerous risks and uncertainties that are difficult to predict.
These risks and uncertainties may cause actual results to differ
materially from what is forecast in such forward-looking
statements, and include, without limitation, the risk factors
described from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K.
All forward-looking statements included in this
press release are based on information currently available to us,
and we assume no obligation to update any forward-looking statement
except as may be required by law.
Non-GAAP Financial Measures
This press release includes an analysis of
adjusted diluted earnings per share attributable to CSWI, adjusted
net income attributable to CSWI, adjusted operating income and free
cash flows, which are non-GAAP financial measures of performance.
Attributable to CSWI is defined to exclude the income attributable
to the non-controlling interest in the Whitmore JV.
CSWI utilizes adjusted EBITDA (earnings before
interest, tax, depreciation and amortization) as an additional
consolidated, non-GAAP financial measure, which consists of
consolidated net income including income attributable to the
non-controlling interest in the Whitmore JV, adjusted to remove the
impact of income taxes, interest expense, depreciation and
amortization, and significant nonrecurring items.
For a reconciliation of these measures to the
most directly comparable GAAP measures and for a discussion of why
we consider these non-GAAP measures useful, see the “Reconciliation
of Non-GAAP Measures” section of this release.
About CSW Industrials, Inc.
CSW Industrials is a diversified industrial
growth company with industry-leading operations in three segments:
Contractor Solutions, Engineered Building Solutions, and
Specialized Reliability Solutions. CSWI provides niche, value-added
products with two essential commonalities: performance and
reliability. The primary end markets we serve with our well-known
brands include: HVAC/R, plumbing, general industrial,
architecturally-specified building products, energy, mining, and
rail transportation. For more information, please visit
www.cswindustrials.com.
Investor Relations
Alexa HuertaVice President, Investor Relations and
Treasurer214-489-7113alexa.huerta@cswindustrials.com
CSW INDUSTRIALS,
INC.CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except
per share amounts) |
|
Three Months EndedMarch
31,(Unaudited) |
|
Year Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
|
$ |
195,686 |
|
|
$ |
173,299 |
|
|
$ |
757,904 |
|
|
$ |
626,435 |
|
Cost of
revenues |
|
|
(110,341 |
) |
|
|
(100,957 |
) |
|
|
(439,690 |
) |
|
|
(370,473 |
) |
Gross
profit |
|
|
85,345 |
|
|
|
72,342 |
|
|
|
318,214 |
|
|
|
255,962 |
|
Selling, general and administrative expenses |
|
|
(45,580 |
) |
|
|
(43,405 |
) |
|
|
(179,148 |
) |
|
|
(158,582 |
) |
Operating income |
|
|
39,765 |
|
|
|
28,937 |
|
|
|
139,066 |
|
|
|
97,380 |
|
Interest expense, net |
|
|
(4,107 |
) |
|
|
(1,298 |
) |
|
|
(13,197 |
) |
|
|
(5,449 |
) |
Other income (expense), net |
|
|
570 |
|
|
|
(34 |
) |
|
|
42 |
|
|
|
(466 |
) |
Income
before income taxes |
|
|
36,228 |
|
|
|
27,605 |
|
|
|
125,911 |
|
|
|
91,465 |
|
Provision for income taxes |
|
|
(9,105 |
) |
|
|
(9,080 |
) |
|
|
(29,337 |
) |
|
|
(24,146 |
) |
Net
income |
|
|
27,123 |
|
|
|
18,525 |
|
|
|
96,574 |
|
|
|
67,319 |
|
Income
attributable to redeemable noncontrolling interest |
|
|
(60 |
) |
|
|
(79 |
) |
|
|
(139 |
) |
|
|
(934 |
) |
Net income attributable to CSW
Industrials, Inc. |
|
$ |
27,062 |
|
|
$ |
18,446 |
|
|
$ |
96,435 |
|
|
$ |
66,385 |
|
|
|
|
|
|
|
|
|
|
Net
income per share attributable to CSW Industrials, Inc. |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.75 |
|
|
$ |
1.17 |
|
|
$ |
6.22 |
|
|
$ |
4.21 |
|
Diluted |
|
|
1.74 |
|
|
|
1.17 |
|
|
|
6.20 |
|
|
|
4.20 |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
15,475 |
|
|
|
15,766 |
|
|
|
15,509 |
|
|
|
15,755 |
|
Diluted |
|
|
15,523 |
|
|
|
15,800 |
|
|
|
15,546 |
|
|
|
15,807 |
|
CSW INDUSTRIALS,
INC.CONSOLIDATED BALANCE SHEETS
|
|
March 31, |
(Amounts in thousands, except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
18,455 |
|
|
$ |
16,619 |
|
Accounts receivable, net |
|
|
122,753 |
|
|
|
122,804 |
|
Inventories, net |
|
|
161,569 |
|
|
|
150,114 |
|
Prepaid expenses and other current assets |
|
|
20,279 |
|
|
|
10,610 |
|
Total
current assets |
|
|
323,056 |
|
|
|
300,147 |
|
Property, plant and equipment, net |
|
|
88,235 |
|
|
|
87,032 |
|
Goodwill |
|
|
242,740 |
|
|
|
224,658 |
|
Intangible assets, net |
|
|
318,903 |
|
|
|
300,837 |
|
Other
assets |
|
|
70,519 |
|
|
|
82,686 |
|
Total
assets |
|
$ |
1,043,453 |
|
|
$ |
995,360 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
40,651 |
|
|
$ |
47,836 |
|
Accrued and other current liabilities |
|
|
67,388 |
|
|
|
69,005 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
561 |
|
Total
current liabilities |
|
|
108,039 |
|
|
|
117,402 |
|
Long-term debt |
|
|
253,000 |
|
|
|
252,214 |
|
Retirement benefits payable |
|
|
1,158 |
|
|
|
1,027 |
|
Other
long-term liabilities |
|
|
137,117 |
|
|
|
140,306 |
|
Total
liabilities |
|
|
499,314 |
|
|
|
510,949 |
|
Commitments and contingencies (Note 17) |
|
|
|
|
Redeemable noncontrolling interest |
|
|
18,464 |
|
|
|
15,325 |
|
Equity: |
|
|
|
|
Common shares, $0.01 par value |
|
|
163 |
|
|
|
162 |
|
Additional paid-in capital |
|
|
123,336 |
|
|
|
112,924 |
|
Treasury shares, at cost (902 and 576 shares, respectively) |
|
|
(82,734 |
) |
|
|
(46,448 |
) |
Retained earnings |
|
|
493,319 |
|
|
|
407,522 |
|
Accumulated other comprehensive loss |
|
|
(8,409 |
) |
|
|
(5,074 |
) |
Total
equity |
|
|
525,675 |
|
|
|
469,086 |
|
Total
liabilities and equity |
|
$ |
1,043,453 |
|
|
$ |
995,360 |
|
CSW INDUSTRIALS,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Year Ended March 31, |
(Amounts in thousands) |
|
|
2023 |
|
|
|
2022 |
|
Cash
flows from operating activities: |
|
|
|
|
Net income |
|
$ |
96,574 |
|
|
$ |
67,319 |
|
Adjustments to reconcile net income to net cash provided by
operating |
|
|
|
|
Depreciation |
|
|
12,838 |
|
|
|
11,572 |
|
Amortization of intangible and other assets |
|
|
22,716 |
|
|
|
25,314 |
|
Provision for inventory reserves |
|
|
1,522 |
|
|
|
1,553 |
|
Provision for doubtful accounts |
|
|
2,013 |
|
|
|
1498 |
|
Share-based and other executive compensation |
|
|
9,751 |
|
|
|
8,450 |
|
Net gain on disposals of property, plant and equipment |
|
|
104 |
|
|
|
(85 |
) |
Net pension benefit |
|
|
150 |
|
|
|
31 |
|
Impairment of intangible assets |
|
|
156 |
|
|
|
— |
|
Net deferred taxes |
|
|
(6,011 |
) |
|
|
(3,261 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
1,105 |
|
|
|
(26,729 |
) |
Inventories |
|
|
(11,422 |
) |
|
|
(49,403 |
) |
Prepaid expenses and other current assets |
|
|
(1,282 |
) |
|
|
3,479 |
|
Other assets |
|
|
458 |
|
|
|
626 |
|
Accounts payable and other current liabilities |
|
|
(7,000 |
) |
|
|
27,983 |
|
Retirement benefits payable and other liabilities |
|
|
(219 |
) |
|
|
742 |
|
Net cash
provided by operating activities |
|
|
121,453 |
|
|
|
69,089 |
|
Cash
flows from investing activities: |
|
|
|
|
Capital expenditures |
|
|
(13,951 |
) |
|
|
(15,653 |
) |
Proceeds from sale of assets |
|
|
120 |
|
|
|
139 |
|
Cash paid for acquisitions |
|
|
(58,335 |
) |
|
|
(35,942 |
) |
Net cash
used in investing activities |
|
|
(72,166 |
) |
|
|
(51,456 |
) |
Cash
flows from financing activities: |
|
|
|
|
Borrowings on lines of credit |
|
|
143,177 |
|
|
|
94,000 |
|
Repayments of lines of credit |
|
|
(142,952 |
) |
|
|
(83,561 |
) |
Payments of deferred loan costs |
|
|
(710 |
) |
|
|
(2,328 |
) |
Purchase of treasury shares |
|
|
(39,072 |
) |
|
|
(19,311 |
) |
Proceeds from stock option activity |
|
|
272 |
|
|
|
1,327 |
|
Proceeds from acquisition of redeemable noncontrolling
interest |
|
|
3,000 |
|
|
|
6,293 |
|
Dividends paid to shareholders |
|
|
(10,555 |
) |
|
|
(9,459 |
) |
Net cash
(used in) provided by financing activities |
|
|
(46,840 |
) |
|
|
(13,039 |
) |
Effect
of exchange rate changes on cash and equivalents |
|
|
(611 |
) |
|
|
1,937 |
|
Net
change in cash and cash equivalents |
|
|
1,836 |
|
|
|
6,531 |
|
Cash and
cash equivalents, beginning of period |
|
|
16,619 |
|
|
|
10,088 |
|
Cash and
cash equivalents, end of period |
|
$ |
18,455 |
|
|
$ |
16,619 |
|
Supplemental non-cash
disclosure: |
|
|
|
|
Cash paid during the year for interest |
|
$ |
12,502 |
|
|
$ |
4,955 |
|
Cash paid during the year for income taxes |
|
|
41,476 |
|
|
|
20,485 |
|
Reconciliation of Non-GAAP
Measures
We use adjusted earnings per share attributable
to CSWI, adjusted net income attributable to CSWI, adjusted
operating income, and adjusted EBITDA, together with financial
measures prepared in accordance with GAAP, such as revenue, cost of
revenue, operating expense, operating income and net income
attributable to CSWI, to assess our historical and prospective
operating performance and to enhance our understanding of our core
operating performance. Free cash flow is a non-GAAP financial
measure and is defined as cash flow from operations less capital
expenditures. We also believe these measures are useful for
investors to assess the operating performance of our business
without the effect of non-recurring items. In the following tables,
there could be immaterial differences in amounts presented due to
rounding.
CSW INDUSTRIALS, INC. |
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CSWI TO
ADJUSTED NET INCOME ATTRIBUTABLE TO CSWI |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
Fiscal Year EndedMarch 31, |
(Amounts in thousands, except share data) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
GAAP Net income attributable
to CSWI |
|
$ |
27,062 |
|
$ |
18,446 |
|
$ |
96,435 |
|
$ |
66,385 |
|
|
|
|
|
|
|
|
|
Adjusting items, net of
tax: |
|
|
|
|
|
|
|
|
Purchase accounting
effect |
|
|
— |
|
|
— |
|
|
— |
|
|
2,959 |
Adjusted Net Income
attributable to CSWI |
|
$ |
27,062 |
|
$ |
18,446 |
|
$ |
96,435 |
|
$ |
69,344 |
|
|
|
|
|
|
|
|
|
GAAP Net Income attributable
to CSW Industrials, Inc. per diluted common share |
|
$ |
1.74 |
|
$ |
1.17 |
|
$ |
6.20 |
|
$ |
4.20 |
|
|
|
|
|
|
|
|
|
Adjusting items, per diluted
common share: |
|
|
|
|
|
|
|
|
Purchase accounting
effect |
|
|
— |
|
|
— |
|
|
— |
|
|
0.19 |
Adjusted Net Income
attributable to CSW Industrials, Inc. per diluted common share |
|
$ |
1.74 |
|
$ |
1.17 |
|
$ |
6.20 |
|
$ |
4.39 |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CSWI TO
ADJUSTED EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
|
Three Months EndedMarch 31, |
|
Fiscal Year EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
GAAP Net Income attributable
to CSWI |
|
$ |
27,062 |
|
|
$ |
18,446 |
|
|
$ |
96,435 |
|
|
$ |
66,385 |
|
Plus: Income attributable to
redeemable noncontrolling interest |
|
|
60 |
|
|
|
79 |
|
|
|
139 |
|
|
|
934 |
|
GAAP Net Income |
|
$ |
27,123 |
|
|
$ |
18,525 |
|
|
$ |
96,574 |
|
|
$ |
67,319 |
|
|
|
|
|
|
|
|
|
|
Adjusting Items: |
|
|
|
|
|
|
|
|
Interest Expense |
|
|
4,107 |
|
|
|
1,298 |
|
|
|
13,197 |
|
|
|
5,449 |
|
Income Tax Expense |
|
|
9,105 |
|
|
|
9,080 |
|
|
|
29,337 |
|
|
|
24,146 |
|
Depreciation & Amortization |
|
|
9,053 |
|
|
|
8,289 |
|
|
|
34,957 |
|
|
|
36,408 |
|
EBITDA |
|
$ |
49,388 |
|
|
$ |
37,191 |
|
|
$ |
174,067 |
|
|
$ |
133,323 |
|
EBITDA % Revenue |
|
|
25.2 |
% |
|
|
21.5 |
% |
|
|
23.0 |
% |
|
|
21.3 |
% |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF SEGMENT OPERATING INCOME TO ADJUSTED
SEGMENT OPERATING INCOME AND TO ADJUSTED SEGMENT
EBITDA |
(Unaudited) |
|
|
|
|
|
|
(Amounts in thousands) |
Three Months Ended March 31, 2023 |
|
|
Engineered |
Specialized |
|
|
|
Contractor |
Building |
Reliability |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
133,945 |
|
$ |
24,991 |
|
$ |
38,487 |
|
$ |
(1,738 |
) |
$ |
195,686 |
|
|
|
|
|
|
|
Operating Income |
$ |
35,788 |
|
$ |
2,716 |
|
$ |
6,517 |
|
$ |
(5,257 |
) |
$ |
39,765 |
|
Operating Income % Revenue |
|
26.7 |
% |
|
10.9 |
% |
|
16.9 |
% |
|
|
20.3 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
(167 |
) |
|
(42 |
) |
|
146 |
|
|
632 |
|
|
570 |
|
Depreciation & Amortization |
|
7,056 |
|
|
428 |
|
|
1,517 |
|
|
52 |
|
|
9,053 |
|
EBITDA |
$ |
42,677 |
|
$ |
3,103 |
|
$ |
8,181 |
|
$ |
(4,573 |
) |
$ |
49,388 |
|
EBITDA % Revenue |
|
31.9 |
% |
|
12.4 |
% |
|
21.3 |
% |
|
|
25.2 |
% |
|
|
|
|
|
|
(Amounts in thousands) |
Three Months Ended March 31, 2022 |
|
|
Engineered |
Specialized |
|
|
|
Contractor |
Building |
Reliability |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
120,439 |
|
$ |
23,907 |
|
$ |
30,753 |
|
$ |
(1,801 |
) |
$ |
173,299 |
|
|
|
|
|
|
|
Operating Income |
$ |
28,526 |
|
$ |
1,713 |
|
$ |
3,717 |
|
$ |
(5,020 |
) |
$ |
28,937 |
|
Operating Income % Revenue |
|
23.7 |
% |
|
7.2 |
% |
|
12.1 |
% |
|
|
16.7 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
44 |
|
|
(41 |
) |
|
104 |
|
|
(142 |
) |
|
(34 |
) |
Depreciation & Amortization |
|
6,292 |
|
|
498 |
|
|
1,453 |
|
|
45 |
|
|
8,289 |
|
EBITDA |
$ |
34,863 |
|
$ |
2,170 |
|
$ |
5,274 |
|
$ |
(5,116 |
) |
$ |
37,191 |
|
EBITDA % Revenue |
|
28.9 |
% |
|
9.1 |
% |
|
17.2 |
% |
|
|
21.5 |
% |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF SEGMENT OPERATING INCOME TO ADJUSTED
SEGMENT OPERATING INCOME AND TO ADJUSTED SEGMENT
EBITDA |
(Unaudited) |
|
|
|
|
|
|
(Amounts in thousands) |
Fiscal Year Ended March 31, 2023 |
|
|
Engineered |
Specialized |
|
|
|
Contractor |
Building |
Reliability |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
513,776 |
|
$ |
103,969 |
|
$ |
147,445 |
|
$ |
(7,287 |
) |
$ |
757,904 |
|
|
|
|
|
|
|
Operating Income |
$ |
126,204 |
|
$ |
12,889 |
|
$ |
20,176 |
|
$ |
(20,202 |
) |
$ |
139,066 |
|
Operating Income % Revenue |
|
24.6 |
% |
|
12.4 |
% |
|
13.7 |
% |
|
|
18.3 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
76 |
|
|
(231 |
) |
|
(228 |
) |
|
425 |
|
|
42 |
|
Depreciation & Amortization |
|
26,951 |
|
|
1,771 |
|
|
6,035 |
|
|
201 |
|
|
34,958 |
|
EBITDA |
$ |
153,231 |
|
$ |
14,429 |
|
$ |
25,983 |
|
$ |
(19,576 |
) |
$ |
174,067 |
|
EBITDA % Revenue |
|
29.8 |
% |
|
13.9 |
% |
|
17.6 |
% |
|
|
23.0 |
% |
|
|
|
|
|
|
(Amounts in thousands) |
Fiscal Year Ended March 31, 2022 |
|
|
Engineered |
Specialized |
|
|
|
Contractor |
Building |
Reliability |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
416,487 |
|
$ |
97,297 |
|
$ |
116,042 |
|
$ |
(3,390 |
) |
$ |
626,435 |
|
|
|
|
|
|
|
GAAP Operating Income |
$ |
96,115 |
|
$ |
11,101 |
|
$ |
9,007 |
|
$ |
(18,843 |
) |
$ |
97,380 |
|
Adjusting Items: |
|
|
|
|
|
Purchase Accounting Effect |
|
3,919 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,919 |
|
Operating Income |
$ |
100,034 |
|
$ |
11,101 |
|
$ |
9,007 |
|
$ |
(18,843 |
) |
$ |
101,299 |
|
Operating Income % Revenue |
|
24.0 |
% |
|
11.4 |
% |
|
7.8 |
% |
|
|
16.2 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
(130 |
) |
|
(107 |
) |
|
32 |
|
|
(261 |
) |
|
(466 |
) |
Depreciation & Amortization |
|
27,879 |
|
|
2,063 |
|
|
6,016 |
|
|
450 |
|
|
36,408 |
|
Purchase Accounting Effect |
|
(3,919 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,919 |
) |
EBITDA |
$ |
123,864 |
|
$ |
13,058 |
|
$ |
15,055 |
|
$ |
(18,655 |
) |
$ |
133,323 |
|
EBITDA % Revenue |
|
29.7 |
% |
|
13.4 |
% |
|
13.0 |
% |
|
|
21.3 |
% |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY
OPERATING CASH FLOWS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
|
Three Months EndedMarch 31, |
|
Fiscal Year EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating
activities |
|
$ |
37,381 |
|
|
$ |
(383 |
) |
|
$ |
121,453 |
|
|
$ |
69,089 |
|
Less: Capital
Expenditures |
|
|
(5,683 |
) |
|
|
(7,297 |
) |
|
|
(13,951 |
) |
|
|
(15,653 |
) |
Free Cash Flow |
|
$ |
31,698 |
|
|
$ |
(7,680 |
) |
|
$ |
107,502 |
|
|
$ |
53,436 |
|
Free Cash Flow % Net
Income |
|
|
116.9 |
% |
|
|
(41.5 |
)% |
|
|
111.3 |
% |
|
|
79.4 |
% |
CSW Industrials (NASDAQ:CSWI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
CSW Industrials (NASDAQ:CSWI)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024