Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — CJS Securities Conference (July 2016)
26 slides from Csw Industrials's conference presentation, July 2016
Slide 1: Investor Presentation CJS Securities Conference
Investor Presentation CJS Securities Conference July 2016
Slide 2: Safe Harbor Statement; Non-GAAP Financial Information
Safe Harbor Statement • This presentation contains forward -looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 relating to, among other things, the business, financial condition and results of operations of CSW Industrials, Inc. (“CSWI”). Any statements pre
Slide 3: Why CSW Industrials?
Why CSW Industrials? • Diversified industrial growth company with well established, scalable platforms and domain expertise across three segments • Broad, yet complimentary portfolio of leading products that provide performance optimizing solutions • Strong brand recognition in the markets we serve:
Slide 4: CSWI Key Growth Drivers
CSWI Key Growth Drivers Strong Balance Sheet Efficient Capital Allocation Leverage Existing Operational Excellence Customer Relationships, Brands and Solutions Disciplined Acquisitions that Leverage our Distribution Channels 4
Slide 5: Strategic Goals
Strategic Goals • Focus on strategic end markets which yield sustainable growth by: • Leveraging our existing product portfolio, • Expanding our market share through new product introductions and cross selling • Leverage best practices and improve performance across the business • Invest in: • Organ
Slide 6: Company at a Glance (Nasdaq: CSWI)
Company at a Glance (Nasdaq: CSWI) Industrial Products Specialty Chemicals Coatings, Sealants & Adhesives Three business segments: 2016 Net 2016 Adj. Operating • Industrial Products Revenues: Income: $45.3M(2) $319.8M • Specialty mechanical, controls, fire & smoke protection, architecturally specifi
Slide 7: CSWI Products – Delivering Solutions to Customers
CSWI Products – Delivering Solutions to Customers 7
Slide 8: Diverse End Markets and Products
Diverse End Markets and Products PF2015 Sales Revenue FY2016 Sales Revenue by End Market(1) by End Market (2) (2) Ability to leverage customer base and cross-sell products across three segments (1) PF2015 includes Strathmore FY2014 results; Strathmore fiscal year ends December 31 (2) Other key end u
Slide 9: Combined Financials – Net Revenues
Combined Financials – Net Revenues Net Revenues ($ millions, %) Highlights $350 100% • FY16 net revenues increased by $58 million $319.8 (22.2%) compared with FY2015 $300 • Consistent mid double-digit annual net revenue growth (16.4%, 13.0% and 22.2% 80% $261.8 in FY2014, FY2015 and FY2016, $250 $23
Slide 10: Focused Acquisitions
Focused Acquisitions Capital Invested for Acquisitions ($M) Strategy & Execution Plan • Identify and execute accretive, bolt-on $200 $185.3 acquisitions that will broaden our portfolio $12.6 of industrial brands and products, and $16.3 support our business segments $150 • Eliminate costs and overhea
Slide 11: Organic & Acquisition Growth
Organic & Acquisition Growth Net Revenues ($ millions, %) Highlights ($ millions) • Acquisitions contributed a combined $58.9 $350 million of revenue during FY16. $319.8 • 22.2% growth in FY16 compared to FY15 $300 $58.9 $261.8 • Organic revenue down 0.3% Acquisitions grew revenue 22.5% $15.2 $250 •
Slide 12: Combined Financials - Margins
Combined Financials - Margins Adj.(1) Operating Income ($ millions, %) Highlights $60 70% $50 $45.3 60% • Attractive operating and EBITDA margins $44.0 $37.9 50% with potential improvement from $40 $32.2 40% integration of businesses and shared $30 30% best practices $20 16.2% 16.4% 16.8% 14.2% 20%
Slide 13: Combined Financials – Capital Investment
Combined Financials – Capital Investment Capital Expenditures ($ millions, %) Highlights $20.0 15.0% • Capital expenditures to net revenue $15.5 $15.0 12.0% ratio averaged 4.4% in the last three years 7.8% $11.1 9.0% $10.0 6.5% $8.7 − Capital expenditures declined in 6.0% FY15 primarily due to compl
Slide 14: Strong Balance Sheet (as of March 31, 2016)
Strong Balance Sheet (as of March 31, 2016) Total Capitalization Indebtedness ($ millions) Amount EBITDA(1) ($ millions) Amount EBITDA(1) Total Debt $89.7 1.5x Debt: Current Portion of Long-Term Less: Cash and Cash Equivalents (39.3) 0.6 0.0x Debt Net Debt $50.4 0.8x Long-Term Debt, Less Current 89.
Slide 15: Why CSW Industrials?
Why CSW Industrials? • Diversified industrial growth company with well established, scalable platforms and domain expertise across three segments • Broad, yet complimentary portfolio of leading products that provide performance optimizing solutions • Strong brand recognition in the markets we serve:
Slide 16: Appendix
Appendix
Slide 17: CSWI vs. Industrial Goods Peers
CSWI vs. Industrial Goods Peers Three Year Revenue CAGR 30% 24.8% 25% 21.7% 20% 17.1% 16.9% 15.9% 15% (1) 10% 9.1% 7.9% Median: 8.5% 5% 2.6% 1.6% 0% 0.0% -5% -2.1% ORBK NNBR CSWI CCF MEI LFUS CTS GRC ASTE CMCO LXU LTM EBITDA Margin 25% 23.3% 19.3% 20% 17.7% 16.8% 16.8% 16.5% (1) 13.4% 12.7% Median:
Slide 18: CSWI vs. Specialty Chemicals Peers
CSWI vs. Specialty Chemicals Peers Three Year Revenue CAGR 25% 19.3% 20% 17.1% 15% 9.2% 10% 3.3% (1) 5% 2.5% 1.5% Median: 1.9% 2.2% 0% -5% -0.9% -5.2% -10% -9.4% -15% -10.1% LNDC CSWI IOSP WDFC ZEP FTK KOP TG FF OMN KRA LTM EBITDA Margin 25% 19.3% 19.1% 19.0% 20% 14.7% 15% 9.9% Median: 8.2% (1) 10%
Slide 19: Proven track record of 33 successful acquisitions
Proven track record of 33 successful acquisitions Coatings, Sealants & Adhesive Industrial Products Specialty Chemicals Smoke Guard W.H. Golden Clean RCT Aqua- Metacaulk Safety Extractor Check QHi Guard North Cargo Green American SMD Pivot Bio Fireshield Chemical Island Oil Co. Research Tools Novent
Slide 20: Experienced Management Team
Experienced Management Team Executive Officers Joseph B. Armes Christopher J. Mudd Gregg W. Branning Luke E. Alverson Chairman and CEO President & COO Executive VP & CFO Senior VP, General Counsel & Secretary Senior leadership team averages over 25 years of experience in the industrial manufacturing
Slide 21: Business Segment Leadership
Business Segment Leadership Industrial Coatings, Sealants Specialty Products & Adhesives Chemicals Business Segment Don Sullivan Mark Lee Craig Foster SVP/GM SVP/GM SVP/GM Portfolio Company Industrial Brands 21
Slide 22: CSWI Corporate Culture
CSWI Corporate Culture CSWI’s corporate culture will SHAPE and GUIDE our company by helping each team member understand how to make his/her contribution to the company we serve. Our culture manifests the OBSERVED BEHAVIORS, the NORMS, and the DOMINANT VALUES of the company. Our culture should be eff
Slide 23: CSWI Corporate Culture (Cont'd)
CSWI Corporate Culture (Cont’d) Our corporate culture will be based on our core values: • Integrity • Respect • Excellence • Stewardship • Citizenship • Accountability • Teamwork 23
Slide 24: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation ($ millions) FY2013 FY2014 FY2015 FY2016 Net Income $ 21.7 $ 24.7 $ 29.7 $ 25.5 Pension Gain - - - (5.2) Strathmore Transaction Costs - - - 1.7 Strathmore Earn Out - - - (1.3) Deacon & Leak Freeze Transaction Costs - - - 0.5 Start-up Spin Costs - - - 2.4
Slide 25: Adjusted Operating Income Reconciliation
Adjusted Operating Income Reconciliation FY2015 FY2016 Coatings, Coatings, ($ millions) Industrial Sealants Specialty Eliminations Industrial Sealants Specialty Eliminations Products and Adhesives Chemicals and Other (1) Total Products and Adhesives Chemicals and Other (1) Total Operating Income $ 1
Slide 26: Investor Presentation
© csw INDUSTRIALS Investor Presentation
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