Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — Investor Presentation (July 2017)
26 slides from Csw Industrials's investor presentation, July 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017
Slide 2: Safe Harbor Statement
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 prec
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 and distribution channels • Expanding our market share through new product introductions and cross selling • Leverage best practices and improve performance across the busi
Slide 6: Greco Aluminum Railings Acquisition
Greco Aluminum Railings Acquisition • Acquired February 28, 2017 • Bolt on acquisition leverages architecturally specified building products channel • Greco railings & Smoke Guard curtains target same end customers (architects and general contractors) • Leverage Balco and Smoke Guard’s strength in U
Slide 7: Company at a Glance (Nasdaq: CSWI)
Company at a Glance (Nasdaq: CSWI) Industrial Products Specialty Chemicals Coatings, Sealants & Adhesives Three business segments: FY2017 Net Revenues: FY2017 Adj. Operating • Industrial Products $327.1M Income: $41.6M(2) • Specialty mechanical, controls, fire & smoke protection, architecturally spe
Slide 8: CSWI Business Segments
CSWI Business Segments Q4 FY17 Net Revenues Q4 FY17 Adj. Operating Income FY17 Net Revenues FY17 Adj. Operating Income (1) Adjustments include realignment & restructuring, SOX implementation costs, acquisition related transaction costs, excess and obsolete inventory reserve and patent and trademark
Slide 9: Sales by End Market Analysis
Sales by End Market Analysis Q4 FY16 Sales by End Market Q4 FY17 Sales by End Market (2) (2) FY16 Sales by End Market FY17 Sales by End Market (2) (2) (2) Other end use markets include Water Well drilling, Power Generation, Marine 9
Slide 10: CSWI Products – Delivering Solutions to Customers
CSWI Products – Delivering Solutions to Customers 10
Slide 11: Segments – Quarterly Net Revenues
Segments – Quarterly Net Revenues Q4 Net Revenues ($ millions) Q4 FY17 Highlights • Overall quarterly net sales increased 15% year over year • Industrial Products net revenues increased 23% with big gains in HVAC, building safety products and new Greco revenues • Specialty Chemicals net revenues inc
Slide 12: Focused Acquisitions
Focused Acquisitions Capital Invested for Acquisitions ($M) Strategy & Execution Plan • Identify and execute accretive, bolt-on $213.5 acquisitions that will broaden our portfolio $12.6 of industrial brands and products, and $200 $16.3 support our business segments $28.2 • Eliminate costs and overhe
Slide 13: Combined Financials – Capital Investment
Combined Financials – Capital Investment Capital Expenditures ($ millions, %) Highlights • Capital expenditures to net revenue $20.0 15.0% ratio averaged 3.2% in the last three $15.0 12.0% years $11.1 9.0% − Capital expenditures declined in $10.0 6.5% $8.7 $9.4 FY15 primarily due to completion 6.0%
Slide 14: 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 15: Appendix
Appendix
Slide 16: History of integrated acquisitions
History of 35 integrated acquisitions Coatings, Sealants & Adhesive Industrial Products Specialty Chemicals Smoke Guard W.H. Golden Clean RCT Aqua- Greco Metacaulk Safety Extractor Check QHi Guard Aluminum North Railings Cargo Green American SMD Pivot Bio Fireshield Chemical Island Oil Co. Research
Slide 17: Experienced Management Team
Experienced Management Team Executive Officers Joe Armes Chris Mudd Gregg Branning Luke 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 and specialty chemic
Slide 18: Business Segment Leadership
Business Segment Leadership Industrial Coatings, Sealants Specialty Products & Adhesives Chemicals Business Segment Don Sullivan Chris Mudd Craig Foster SVP/GM Interim Leader SVP/GM Primary Operating Company Industrial Brands 18 18
Slide 19: 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 20: 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 20
Slide 21: Reconciliation of Operating Inc to Adjusted Operating Inc
Reconciliation of Operating Inc to Adjusted Operating Inc (unaudited) For the Three Months Ended For the Year Ended March 31, (in thousands) March 31, 2017 2016 2017 2016 GAAP Operating Income $ 4,721 $ 6,796 $ 22,481 $ 47,486 Adjusting items: Pension gain - - - (8,020) Restructuring & realignment 5
Slide 22: Reconciliation of Net Income and EPS to Adjusted Net Income and EPS
Reconciliation of Net Income and EPS to Adjusted Net Income and EPS (unaudited) For the Three Months Ended For the Year Ended March 31, (in thousands, except share data) March 31, 2017 2016 2017 2016 GAAP Net Income $ 2,728 $ 1,860 $ 11,071 $ 25,471 Adjusting items, net of tax: Pension gain - - - (5
Slide 23: Reconciliation of Segment Operating Income to Adjusted Operating Income
Reconciliation of Segment Operating Income to Adjusted Operating Income (unaudited) For the Three Months Ended March 31, 2017 For the Three Months Ended March 31, 2016 (in thousands, except percentages) Coatings, Coatings, Industrial Sealants & Specialty Corporate Industrial Sealants & Specialty Cor
Slide 24: Reconciliation of Segment Operating Income to Adjusted Operating Income
Reconciliation of Segment Operating Income to Adjusted Operating Income (unaudited) (in thousands, except percentages) For the Year Ended March 31, 2017 For the Year Ended December 31, 2016 Coatings, Coatings, Industrial Sealants & Specialty Corporate Industrial Sealants & Specialty Corporate Produc
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (unaudited) (in thousands) For the Year Ended March 31, 2017 2016 GAAP Net Income $ 11,071 $ 25,471 Adjusting items, net of tax: Pension gain - (5,213) Restructuring & realignment 6,556 - Asset Impairment 2,102 - Estimated reserve for excess inventory
Slide 26: Investor Presentation
© csw INDUSTRIALS Investor Presentation