CSW Industrials, Inc. (Nasdaq: CSWI or the "Company") today
reported record results for the fiscal 2024 second quarter and
first half periods ended September 30, 2023.
Fiscal 2024
Second Quarter Highlights
(comparisons to fiscal 2023 second quarter)
- Total revenue increased 7% to a
record $203.7 million, of which 5%, or $10.1 million was organic
growth, and 1% or $2.4 million was inorganic revenue from
acquisitions within the last twelve months
- Net income attributable to CSWI
increased 24% to $30.1 million, compared to
$24.3 million
- Earnings per diluted share (EPS)
improved 23% to a record $1.93, compared to $1.57
- EBITDA increased 21% to
$53.0 million, with margin expansion of 300 bps to 26%
- Cash flow from operations of
$44.7 million, compared to $30.5 million, an increase of
47%
- Paid down $37 million of debt,
significantly improving strength of the balance sheet, resulting in
a leverage ratio (Debt to EBITDA), in accordance with our credit
facility, of 0.85x
Fiscal 2024
First Half Highlights (comparisons to fiscal 2023
first half)
- Total revenue increased 4% to
$407.0 million, of which 2%, or $8.4 million was organic
growth, with all segments contributing to organic growth
- Net income attributable to CSWI
increased 13% to $60.7 million, compared to
$53.8 million
- EPS improved 13% to a record $3.90,
compared to $3.45
- EBITDA increased 15% to
$107.4 million, with margin expansion of 250 bps to 26%
- Record cash flow from operations of
$94.9 million, compared to $47.3 million, an increase of
101%
- Paid down $80 million of debt and
returned cash to shareholders of $5.9 million in dividends and
$1.1 million in share repurchases
Comments from the Chairman, President,
and Chief Executive Officer
Joseph B. Armes, CSW Industrials’ Chairman,
President, and Chief Executive Officer, commented, "Our team
continues to outperform the markets we serve, as exhibited in the
record fiscal second quarter results delivered against strong prior
year period results. Our second quarter and fiscal first half
results demonstrate our ability to leverage our strong distributor
relationships, drive operational execution, and carefully manage
expenses. In the second quarter we once again delivered impressive
operating leverage as EBITDA grew by 21% on 7% revenue growth, with
equally impressive EBITDA margin expansion of 300 bps to 26%. The
Company generated $45 million in cash flow from operations, an
increase of almost 50% over the prior year period, facilitating the
further reduction of our outstanding debt, which strengthened our
balance sheet, increased our liquidity, and further reduced our
leverage ratio and interest expense."
Mr. Armes continued, "We expect to deliver
second half revenue, EBITDA, and EPS growth for the Company, as
well as a continuation of our strong cash generation."
Fiscal 2024
Second Quarter Consolidated
Results
Fiscal second quarter revenue was a record
$203.7 million, representing 6.5% growth from $191.2 million in the
prior year period. Of the $12.5 million of total revenue
growth, organic revenue increased by $10.1 million, primarily due
to pricing actions and a slight increase in unit volumes due to the
late summer heat wave in certain portions of the U.S., with the
$2.4 million of inorganic revenue due to last year's
acquisition of Falcon. Revenue increased in the general industrial,
HVAC/R, architecturally-specified building product, and plumbing
end markets.
Gross profit in the fiscal second quarter was
$91.0 million, representing 12.8% growth from $80.6 million in
the prior year period. Gross profit as a percent of revenue
increased 250 bps to 44.7%, compared to 42.2% in the prior year
period. Gross margin improvement was the result of pricing actions,
and a reduction in ocean and domestic freight costs.
Operating expenses as a percent of revenue were
24.0%, compared to 23.7% in the prior year period. Operating
expenses were $49.0 million, compared to $45.3 million in the prior
year period. The additional expenses were primarily due to
increased employee compensation, insurance costs, and sales
commissions driven by revenue growth.
Operating income increased to $42.0 million, or
20.6% as a percent of revenue, compared to the prior year period of
$35.3 million, or 18.5% as a percent of revenue. The 210 bps
improvement in operating income margin resulted from the
improvement in gross profit margin, partially offset by the
increase in operating expenses.
Other income, net was $1.9 million, compared to
the prior year period of less than $0.1 million. The increase of
$1.9 million was primarily related to a gain of $1.4 million
recognized from the sale of a property previously held for
investment, in addition to gains arising from transactions in
currencies other than functional currencies.
Net income attributable to CSWI increased 23.5%
to $30.1 million, compared to the prior year period of $24.3
million, while EPS increased 22.9% to $1.93, compared to $1.57 in
the prior year period.
Fiscal 2024 second quarter EBITDA increased to
$53.0 million, representing 20.5% growth from
$43.9 million in the prior year period. As revenue growth
outpaced incremental expenses, EBITDA as a percent of revenue
improved by more than 300 bps to 26.0%, compared to 23.0% in the
prior year period.
The Company’s effective tax rate for the fiscal
second quarter was 25.7%.
During the fiscal second quarter, the Company
paid down $37 million of debt, utilizing the record fiscal
second quarter cash flows from operations of $44.7 million, a
47% increase over the prior year period. As of September 30,
2023, $173.0 million was outstanding on our $500 million
Revolving Credit Facility, which resulted in borrowing capacity of
$327.0 million. Our interest rate swap executed in February 2023
hedges our exposure to variability in cash flows from interest
payments on the first $100 million of borrowing under our Revolving
Credit Facility. As of fiscal quarter end, CSWI reported a leverage
ratio, in accordance with our Revolving Credit Facility, of 0.85x
debt to EBITDA as compared to the 1.1x ratio reported for the
fiscal first quarter ended June 30, 2023.
Following quarter end, the Company declared its
nineteenth consecutive quarterly regular cash dividend in the
amount of $0.19 per share, which will be paid on November 10,
2023, to shareholders of record on October 27, 2023.
Fiscal 2024
Second Quarter Segment
Results
Contractor Solutions segment revenue was $139.9
million, a $9.6 million, or 7.4% increase from the prior year
period. Revenue growth was comprised of organic growth of
$7.2 million, and inorganic growth of $2.4 million from
the Falcon acquisition. The 5.5% increase in organic revenue was
primarily due to pricing initiatives and a slight increase in unit
volume due to the late summer heat wave in certain portions of the
U.S. As compared to the prior year period, net revenue growth was
driven by both the HVAC/R and plumbing end markets. Segment
operating income improved to $39.0 million, compared to $32.3
million in the prior year period. The incremental profit compared
to the prior year period resulted from the reduction in ocean and
domestic freight expenses, pricing actions, and the inclusion of
the Falcon acquisition. This incremental profit was partially
offset by increased expenses related to employee compensation,
sales commissions, and amortization of intangibles. Segment
operating income margin improved to 27.9%, compared to 24.8% in the
prior year period, due to gross margin improvement driven primarily
by pricing and a reduction in ocean and domestic freight costs.
Segment EBITDA in the current year period was $46.6 million, or
33.3% of revenue, compared to $39.1 million, or 30.0% of revenue in
the prior year period.
Specialized Reliability Solutions segment
revenue was $36.6 million, a $0.3 million, or 0.7% decrease,
over the prior year period. Segment operating income improved to
$4.8 million, a 4.1% increase from $4.6 million in the prior year
period, driven by management of operating expenses. Segment
operating income margin in the fiscal second quarter improved to
13.2%, compared to 12.6% in the prior year period. Segment EBITDA
improved to $6.3 million, or 17.2% of revenue, compared to $6.1
million, or 16.5% of revenue, in the prior year period.
Engineered Building Solutions segment revenue
was $29.2 million, a 13.0% increase from the prior year period, due
to timing, leveraging the backlog, and pricing. The project mix of
the current backlog skews more toward larger jobs in the
architecturally-specified building products end market, which can
take over two years to convert to revenue. Segment operating income
was $5.2 million, or 17.9% of revenue, compared to the prior year
period of $3.5 million, or 13.5% of revenue. Segment EBITDA
was $5.7 million, or 19.5% of revenue, compared to $3.9 million, or
15.0% of revenue, in the prior year period.
Fiscal 2024
First Half Consolidated Results
Fiscal first half revenue was
$407.0 million, representing 4.1% growth from
$391.1 million in the prior year period, with growth in all
three reporting segments. Of the $15.9 million total growth,
$8.4 million (2.1% of the 4.1% total growth) resulted from
organic growth with the remainder ($7.5 million) contributed
by the Cover Guard, AC Guard and Falcon acquisitions.
Gross profit in the fiscal first half was
$183.1 million, representing $16.1 million (9.6%) growth
from $167.1 million in the prior year period, with the
incremental profit resulting predominantly from revenue growth
driven by pricing actions, a reduction in ocean and domestic
freight expenses and the acquisitions of Cover Guard, AC Guard and
Falcon. Gross profit as a percentage of sales was 45.0%, compared
to 42.7% in the prior year period. Gross margin improvement was
also the result of pricing actions, and a reduction in overall
freight costs.
Operating expenses as a percent of revenue were
23.6%, compared to 23.2% in the prior year period, as the increase
in operating expenses outpaced revenue growth. Operating expenses
in the current year period were $95.9 million, compared to
$90.9 million in the prior year period. The additional
expenses were related to employee compensation, amortization of
intangible assets as a result of recent acquisitions, travel,
insurance costs, and sales commissions.
In the current period, operating income was
$87.2 million, compared to $76.2 million in the prior
year period. The incremental operating income resulted from the
gross profit increase, partially offset by the operating expense
increase as discussed above. Operating income margin in the current
period improved to 21.4%, compared to the prior year period of
19.5%. During the comparative periods, the enhanced operating
income margin was due to the improvement in gross profit margin,
slightly offset by higher operating expenses.
Other income, net was $2.2 million, compared to
$0.2 million in the prior year period. The increase of $2.0 million
was primarily related to a gain of $1.4 million recognized from the
sale of a property previously held for investment, in addition to
gains arising from transactions in currencies other than functional
currencies.
In the current period, reported net income
attributable to CSWI improved to $60.7 million, or $3.90 per
diluted share. In the prior year period, reported net income
attributable to CSWI was $53.8 million, or $3.45 per diluted
share.
Fiscal 2024 first half EBITDA increased 14.9% to
$107.4 million from $93.5 million in the prior year
period. EBITDA as a percent of revenue improved 250 bps to 26.4%,
compared to 23.9%, in the prior year period.
Net cash provided by operating activities for
the fiscal 2024 first half was a record $94.9 million,
compared to $47.3 million in the prior year's first half, as
improved profit and working capital management led to a 101%
increase compared to the prior year period. The Company paid down
$80 million of debt in the first half utilizing our record cash
flow from operations.
The Company’s effective tax rate for the fiscal
first half was 25.4% on a GAAP basis.
The Company expects an adjusted tax rate of
approximately 25% - 26% for fiscal year 2024, after excluding the
$8.6 million of other expense and the related $1.1 million income
tax benefit. The $8.6 million of other expense is a result of the
expiration of the tax indemnification assets in the fiscal third
quarter related to the TRUaire and Falcon acquisitions.
Fiscal 2023
First Half Segment Results
Contractor Solutions segment revenue was
$279.9 million, a $11.9 million or 4.5% increase from the
prior year period. Revenue growth was comprised of inorganic growth
from Cover Guard, AC Guard and Falcon acquisitions
($7.5 million), and organic growth of $4.4 million (1.7% of
the total 4.5% growth) due to pricing initiatives that were
partially offset by a decline in unit volumes. As compared to the
prior year period, net revenue growth was driven primarily by the
HVAC/R and plumbing end markets. Segment operating income in the
current year period was $78.7 million, compared to
$68.6 million in the prior year period. The incremental profit
resulted from a reduction in ocean and domestic freight expenses,
pricing actions, and the inclusion of recent acquisitions,
partially offset by increased expenses related to employee
compensation as the segment builds the infrastructure to support
growth, increased amortization of intangible assets related to
recent acquisitions, and third-party sales commissions associated
with revenue growth. Segment operating income margin was 28.1%,
compared to 25.6% in the prior year period, driven primarily by the
gross margin improvement resulting from the aforementioned
reduction in ocean and domestic freight expenses and revenue growth
from pricing actions. Segment EBITDA in the current period was
$93.4 million, or 33.4% of revenue, compared to
$82.1 million, or 30.7% of revenue in the prior year
period.
Specialized Reliability Solutions segment
revenue grew to $74.3 million, a $1.7 million or 2.3%
increase from the prior year period of $72.6 million,
primarily due to pricing initiatives, with growth in the general
industrial end market and a decrease in rail, energy and mining. In
the current year period, Segment operating income improved by 21.1%
to $11.8 million, or 15.9% of revenue, compared to the prior
year period of $9.7 million, or 13.4% of revenue. Improved
segment operating income resulted from revenue growth, enhanced
margins due to operational efficiencies, and prudent management of
operating expenses. Segment EBITDA in the current period was
$14.7 million, or 19.8% of revenue, compared to
$12.7 million, or 17.5% of revenue in the prior year
period.
Engineered Building Solutions segment revenue
was $56.8 million, a $2.4 million or 4.5% increase over
the prior year period, primarily due to the conversion of backlog
into revenue and pricing actions. Segment operating income
increased 19.9% to $9.5 million, or 16.7% of revenue, compared
to the prior year period of $7.9 million, or 14.6% of revenue,
due to the increased net revenue, improved gross margin as a result
of operating leverage, and management of operating expenses.
Segment EBITDA in the current period was $10.4 million, or
18.3% of revenue, compared to $8.7 million, or 15.9% of
revenue in the prior year period.
All percentages are calculated based upon the
attached financial statements.
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 1-877-300-8521,
international callers may use 1-412-317-6026, and request to join
the CSW Industrials earnings call.
A telephonic replay will be available shortly
after the conclusion of the call and until November 16, 2023.
Participants may access the replay at 1-844-512-2921, international
callers may use 1-412-317-6671, and enter access code 10183482. The
call will also be available for replay via webcast link on the
Investors portion of the CSWI website at
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 earnings per share attributable to CSWI, adjusted net
income attributable to CSWI, and adjusted operating income, 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. Free cash flow is
a non-GAAP financial measure and is defined as cash flow from
operations less capital expenditures.
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, Specialized Reliability Solutions and
Engineered Building 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 &
Treasurer214-489-7113alexa.huerta@cswindustrials.com
CSW INDUSTRIALS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Amounts in thousands, except
per share amounts) |
|
Three Months EndedSeptember
30, |
|
Six Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
|
$ |
203,653 |
|
|
$ |
191,192 |
|
|
$ |
407,013 |
|
|
$ |
391,126 |
|
Cost of revenues |
|
|
(112,694 |
) |
|
|
(110,545 |
) |
|
|
(223,887 |
) |
|
|
(224,054 |
) |
Gross profit |
|
|
90,959 |
|
|
|
80,647 |
|
|
|
183,126 |
|
|
|
167,072 |
|
Selling, general and administrative expenses |
|
|
(48,966 |
) |
|
|
(45,330 |
) |
|
|
(95,927 |
) |
|
|
(90,882 |
) |
Operating income |
|
|
41,993 |
|
|
|
35,317 |
|
|
|
87,199 |
|
|
|
76,190 |
|
Interest expense, net |
|
|
(3,306 |
) |
|
|
(3,106 |
) |
|
|
(7,315 |
) |
|
|
(4,891 |
) |
Other income, net |
|
|
1,926 |
|
|
|
40 |
|
|
|
2,240 |
|
|
|
210 |
|
Income before income
taxes |
|
|
40,613 |
|
|
|
32,251 |
|
|
|
82,124 |
|
|
|
71,509 |
|
Provision for income
taxes |
|
|
(10,431 |
) |
|
|
(7,936 |
) |
|
|
(20,885 |
) |
|
|
(17,557 |
) |
Net income |
|
|
30,182 |
|
|
|
24,315 |
|
|
|
61,239 |
|
|
|
53,952 |
|
Less: (Income) Loss
attributable to redeemable noncontrolling interest |
|
|
(127 |
) |
|
|
16 |
|
|
|
(572 |
) |
|
|
(179 |
) |
Net income attributable to CSW
Industrials, Inc. |
|
$ |
30,055 |
|
|
$ |
24,331 |
|
|
$ |
60,667 |
|
|
$ |
53,773 |
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to CSW Industrials, Inc. |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.93 |
|
|
$ |
1.58 |
|
|
$ |
3.91 |
|
|
$ |
3.46 |
|
Diluted |
|
$ |
1.93 |
|
|
$ |
1.57 |
|
|
$ |
3.90 |
|
|
$ |
3.45 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
15,544 |
|
|
|
15,439 |
|
|
|
15,532 |
|
|
|
15,541 |
|
Diluted |
|
|
15,588 |
|
|
|
15,477 |
|
|
|
15,568 |
|
|
|
15,574 |
|
CSW INDUSTRIALS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEET |
(Unaudited) |
|
|
September 30, 2023 |
|
March 31, 2023 |
(Amounts in thousands, except
for per share amounts) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
13,846 |
|
|
$ |
18,455 |
|
Accounts receivable, net of allowance for expected credit losses of
$767 and $1,365, respectively |
|
|
126,320 |
|
|
|
122,753 |
|
Inventories, net |
|
|
151,203 |
|
|
|
161,569 |
|
Prepaid expenses and other current assets |
|
|
27,278 |
|
|
|
20,279 |
|
Total current assets |
|
|
318,647 |
|
|
|
323,056 |
|
Property, plant and equipment,
net of accumulated depreciation of $98,926 and $92,703,
respectively |
|
|
88,655 |
|
|
|
88,235 |
|
Goodwill |
|
|
242,994 |
|
|
|
242,740 |
|
Intangible assets, net |
|
|
310,145 |
|
|
|
318,903 |
|
Other assets |
|
|
50,865 |
|
|
|
70,519 |
|
Total assets |
|
$ |
1,011,306 |
|
|
$ |
1,043,453 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
47,114 |
|
|
$ |
40,651 |
|
Accrued and other current liabilities |
|
|
65,588 |
|
|
|
67,388 |
|
Total current liabilities |
|
|
112,702 |
|
|
|
108,039 |
|
Long-term debt |
|
|
173,000 |
|
|
|
253,000 |
|
Retirement benefits
payable |
|
|
1,138 |
|
|
|
1,158 |
|
Other long-term
liabilities |
|
|
118,503 |
|
|
|
137,117 |
|
Total liabilities |
|
|
405,343 |
|
|
|
499,314 |
|
Commitments and
contingencies |
|
|
|
|
Redeemable noncontrolling
interest |
|
|
19,036 |
|
|
|
18,464 |
|
Equity: |
|
|
|
|
Common shares, $0.01 par value |
|
|
163 |
|
|
|
163 |
|
Additional paid-in capital |
|
|
131,224 |
|
|
|
123,336 |
|
Treasury shares, at cost (894 and 902 shares, respectively) |
|
|
(84,219 |
) |
|
|
(82,734 |
) |
Retained earnings |
|
|
548,044 |
|
|
|
493,319 |
|
Accumulated other comprehensive loss |
|
|
(8,285 |
) |
|
|
(8,409 |
) |
Total equity |
|
|
586,927 |
|
|
|
525,675 |
|
Total liabilities, redeemable
noncontrolling interest and equity |
|
$ |
1,011,306 |
|
|
$ |
1,043,453 |
|
CSW INDUSTRIALS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
(Amounts in thousands) |
|
Six Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
|
Net income |
|
$ |
61,239 |
|
|
$ |
53,952 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation |
|
|
6,613 |
|
|
|
6,419 |
|
Amortization of intangible and other assets |
|
|
11,730 |
|
|
|
10,917 |
|
Provision for inventory reserves |
|
|
2,490 |
|
|
|
1,509 |
|
Provision for doubtful accounts |
|
|
227 |
|
|
|
1,350 |
|
Share-based and other executive compensation |
|
|
5,556 |
|
|
|
4,730 |
|
Loss (gain) on disposals of property, plant and |
|
|
(1,446 |
) |
|
|
(11 |
) |
Net pension benefit |
|
|
33 |
|
|
|
52 |
|
Impairment of assets |
|
|
91 |
|
|
|
— |
|
Deferred taxes |
|
|
411 |
|
|
|
(652 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(3,917 |
) |
|
|
(3,180 |
) |
Inventories |
|
|
7,739 |
|
|
|
(23,109 |
) |
Prepaid expenses and other current assets |
|
|
(5,478 |
) |
|
|
(4,533 |
) |
Other assets |
|
|
(466 |
) |
|
|
(238 |
) |
Accounts payable and other current liabilities |
|
|
8,975 |
|
|
|
(939 |
) |
Retirement benefits payable and other liabilities |
|
|
1,139 |
|
|
|
1,026 |
|
Net cash provided by operating
activities |
|
|
94,936 |
|
|
|
47,293 |
|
Cash flows from investing
activities: |
|
|
|
|
Capital expenditures |
|
|
(7,785 |
) |
|
|
(4,516 |
) |
Proceeds from sale of assets held for investment |
|
|
1,665 |
|
|
|
29 |
|
Proceeds from sale of assets |
|
|
42 |
|
|
|
— |
|
Cash paid for acquisitions |
|
|
(2,623 |
) |
|
|
(21,500 |
) |
Net cash used in investing
activities |
|
|
(8,701 |
) |
|
|
(25,987 |
) |
Cash flows from financing
activities: |
|
|
|
|
Borrowings on line of credit |
|
|
38,681 |
|
|
|
77,797 |
|
Repayments of line of credit and term loan |
|
|
(118,681 |
) |
|
|
(61,078 |
) |
Purchase of treasury shares |
|
|
(3,928 |
) |
|
|
(37,567 |
) |
Proceeds from stock option activity |
|
|
— |
|
|
|
273 |
|
Proceeds from acquisition of redeemable noncontrolling interest
shareholder |
|
|
— |
|
|
|
2,000 |
|
Dividends |
|
|
(5,900 |
) |
|
|
(5,293 |
) |
Net cash used in financing
activities |
|
|
(89,828 |
) |
|
|
(23,868 |
) |
Effect of exchange rate
changes on cash and equivalents |
|
|
(1,016 |
) |
|
|
(499 |
) |
Net change in cash and cash
equivalents |
|
|
(4,609 |
) |
|
|
(3,061 |
) |
Cash and cash equivalents,
beginning of period |
|
|
18,455 |
|
|
|
16,619 |
|
Cash and cash equivalents, end
of period |
|
$ |
13,846 |
|
|
$ |
13,558 |
|
Reconciliation of Non-GAAP Measures
We use adjusted earnings per share attributable
to CSWI, adjusted net income attributable to CSWI, adjusted
operating income, adjusted EBITDA, and free cash flow, together
with financial measures prepared in accordance with GAAP, such as
revenue, cost of revenue, operating expense, operating income, net
income attributable to CSWI and cash flows provided by operating
activities, to assess our historical and prospective operating
performance and to enhance our understanding of our core operating
performance. 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
EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
|
Three Months Ended September 30, |
|
Six Months Ended September
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net Income attributable to
CSWI |
|
$ |
30,055 |
|
|
$ |
24,331 |
|
|
$ |
60,667 |
|
|
$ |
53,773 |
|
Plus: Income (Loss)
attributable to redeemable noncontrolling interest |
|
|
127 |
|
|
|
(16 |
) |
|
|
572 |
|
|
|
179 |
|
Net Income |
|
$ |
30,182 |
|
|
$ |
24,315 |
|
|
$ |
61,239 |
|
|
$ |
53,952 |
|
|
|
|
|
|
|
|
|
|
Adjusting Items: |
|
|
|
|
|
|
|
|
Interest Expense |
|
|
3,306 |
|
|
|
3,106 |
|
|
|
7,315 |
|
|
|
4,891 |
|
Income Tax Expense |
|
|
10,431 |
|
|
|
7,936 |
|
|
|
20,886 |
|
|
|
17,556 |
|
Depreciation & Amortization |
|
|
9,045 |
|
|
|
8,582 |
|
|
|
17,960 |
|
|
|
17,052 |
|
EBITDA |
|
$ |
52,964 |
|
|
$ |
43,939 |
|
|
$ |
107,399 |
|
|
$ |
93,452 |
|
EBITDA % Revenue |
|
|
26.0 |
% |
|
|
23.0 |
% |
|
|
26.4 |
% |
|
|
23.9 |
% |
|
|
|
|
|
|
|
|
|
CSW INDUSTRIALS, INC. |
RECONCILIATION OF SEGMENT OPERATING INCOME TO SEGMENT
EBITDA |
(Unaudited) |
|
|
|
|
|
|
(Amounts in thousands) |
Three Months Ended September 30, 2023 |
|
|
Specialized |
Engineered |
|
|
|
Contractor |
Reliability |
Building |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
139,903 |
|
$ |
36,615 |
|
$ |
29,211 |
|
$ |
(2,075 |
) |
$ |
203,653 |
|
|
|
|
|
|
|
Operating Income |
$ |
39,025 |
|
$ |
4,829 |
|
$ |
5,233 |
|
$ |
(7,095 |
) |
$ |
41,993 |
|
% Revenue |
|
27.9 |
% |
|
13.2 |
% |
|
17.9 |
% |
|
|
20.6 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
575 |
|
|
(54 |
) |
|
3 |
|
|
1,402 |
|
|
1,926 |
|
Depreciation & Amortization |
|
7,045 |
|
|
1,505 |
|
|
453 |
|
|
42 |
|
|
9,045 |
|
EBITDA |
$ |
46,645 |
|
$ |
6,280 |
|
$ |
5,690 |
|
$ |
(5,651 |
) |
$ |
52,964 |
|
% Revenue |
|
33.3 |
% |
|
17.2 |
% |
|
19.5 |
% |
|
|
26.0 |
% |
|
|
|
|
|
|
(Amounts in thousands) |
Three Months Ended September 30, 2022 |
|
|
Specialized |
Engineered |
|
|
|
Contractor |
Reliability |
Building |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
130,303 |
|
$ |
36,887 |
|
$ |
25,845 |
|
$ |
(1,841 |
) |
$ |
191,192 |
|
|
|
|
|
|
|
Operating Income |
$ |
32,298 |
|
$ |
4,640 |
|
$ |
3,501 |
|
$ |
(5,122 |
) |
$ |
35,317 |
|
% Revenue |
|
24.8 |
% |
|
12.6 |
% |
|
13.5 |
% |
|
|
18.5 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
242 |
|
|
(55 |
) |
|
(79 |
) |
|
(67 |
) |
|
40 |
|
Depreciation & Amortization |
|
6,581 |
|
|
1,494 |
|
|
458 |
|
|
49 |
|
|
8,582 |
|
EBITDA |
$ |
39,121 |
|
$ |
6,079 |
|
$ |
3,880 |
|
$ |
(5,140 |
) |
$ |
43,939 |
|
% Revenue |
|
30.0 |
% |
|
16.5 |
% |
|
15.0 |
% |
|
|
23.0 |
% |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF SEGMENT OPERATING INCOME TO SEGMENT
EBITDA |
(Unaudited) |
|
|
|
|
|
|
(Amounts in thousands) |
Six Months Ended September 30, 2023 |
|
|
Specialized |
Engineered |
|
|
|
Contractor |
Reliability |
Building |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
279,856 |
|
$ |
74,326 |
|
$ |
56,799 |
|
$ |
(3,967 |
) |
$ |
407,013 |
|
|
|
|
|
|
|
Operating Income |
$ |
78,692 |
|
$ |
11,794 |
|
$ |
9,493 |
|
$ |
(12,780 |
) |
$ |
87,199 |
|
% Revenue |
|
28.1 |
% |
|
15.9 |
% |
|
16.7 |
% |
|
|
21.4 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
747 |
|
|
(91 |
) |
|
11 |
|
|
1,573 |
|
|
2,240 |
|
Depreciation & Amortization |
|
13,940 |
|
|
3,035 |
|
|
895 |
|
|
90 |
|
|
17,960 |
|
EBITDA |
$ |
93,380 |
|
$ |
14,738 |
|
$ |
10,398 |
|
$ |
(11,117 |
) |
$ |
107,399 |
|
% Revenue |
|
33.4 |
% |
|
19.8 |
% |
|
18.3 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
(Amounts in thousands) |
Six Months Ended September 30, 2022 |
|
|
Specialized |
Engineered |
|
|
|
Contractor |
Reliability |
Building |
Corporate |
Consolidated |
|
Solutions |
Solutions |
Solutions |
and Other |
Operations |
Revenue, net |
$ |
267,932 |
|
$ |
72,624 |
|
$ |
54,359 |
|
$ |
(3,789 |
) |
$ |
391,126 |
|
|
|
|
|
|
|
Operating Income |
$ |
68,587 |
|
$ |
9,737 |
|
$ |
7,915 |
|
$ |
(10,049 |
) |
$ |
76,190 |
|
% Revenue |
|
25.6 |
% |
|
13.4 |
% |
|
14.6 |
% |
|
|
19.5 |
% |
Adjusting Items: |
|
|
|
|
|
Other Income (Expense) |
|
551 |
|
|
(51 |
) |
|
(158 |
) |
|
(133 |
) |
|
210 |
|
Depreciation & Amortization |
|
12,989 |
|
|
3,055 |
|
|
909 |
|
|
99 |
|
|
17,052 |
|
EBITDA |
$ |
82,127 |
|
$ |
12,742 |
|
$ |
8,666 |
|
$ |
(10,084 |
) |
$ |
93,452 |
|
% Revenue |
|
30.7 |
% |
|
17.5 |
% |
|
15.9 |
% |
|
|
23.9 |
% |
CSW INDUSTRIALS, INC. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES
TO FREE CASH FLOW |
(Unaudited) |
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
|
Three Months EndedSeptember
30, |
|
Six Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating
activities |
|
$ |
44,679 |
|
|
$ |
30,480 |
|
|
$ |
94,936 |
|
|
$ |
47,293 |
|
Less: Capital
Expenditures |
|
|
(2,814 |
) |
|
|
(2,501 |
) |
|
|
(7,785 |
) |
|
|
(4,516 |
) |
Free Cash Flow |
|
$ |
41,865 |
|
|
$ |
27,979 |
|
|
$ |
87,151 |
|
|
$ |
42,777 |
|
Free Cash Flow % Net
Income |
|
|
138.7 |
% |
|
|
115.1 |
% |
|
|
142.3 |
% |
|
|
79.3 |
% |
CSW Industrials (NASDAQ:CSWI)
過去 株価チャート
から 8 2024 まで 9 2024
CSW Industrials (NASDAQ:CSWI)
過去 株価チャート
から 9 2023 まで 9 2024