Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — Q4 2020 Earnings Presentation
36 slides from Csw Industrials's earnings presentation, May 20, 2020
Slide 1: Investor Presentation Fiscal Fourth Quarter 2020
Investor Presentation Fiscal Fourth Quarter 2020 May 20, 2020
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 preced
Slide 3: CSW Industrials (Nasdaq: CSWI)
CSW Industrials (Nasdaq: CSWI) A diversified industrial growth company with well-established, scalable platforms, and domain expertise across two operating segments Two Operating Segments Serving Diverse End Markets Energy Rail 6% Architecturally 5% Specified Building General Products Industrial 30%
Slide 4: Culture, Values, Capital Allocation, and Strategy
Culture, Values, Capital Allocation, and Strategy
Slide 5: Corporate Culture Statement
Corporate Culture Statement 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 b
Slide 6: Dedicated to Enhancing Shareholder Value
Dedicated to Enhancing Shareholder Value Experienced senior leadership team Strong, flexible balance sheet Disciplined capital allocation principles Strategic acquisition opportunities Core values and culture designed to maximize performance Insider ownership at approximately 7%, includi
Slide 7: Capital Allocation
Capital Allocation CSWI is committed to maintaining a strong balance sheet with ample liquidity through both cash and available credit to maximize growth opportunities, both organically and inorganically Capital allocation decisions will continue to be evaluated and prioritized on a risk- adjusted
Slide 8: CSWI Key Growth Drivers & Objectives
CSWI Key Growth Drivers & Objectives Affirmation of Core Values, Through A Focus on Four Key Objectives We will treat our employees well We will serve our customers well We will effectively manage our supply chains We will position the Company for sustainable, long-term growth and profitabil
Slide 9: Fourth Fiscal Quarter 2020 - Summary of Financial Results
Fourth Fiscal Quarter 2020 - Summary of Financial Results
Slide 10: Quarterly Results by Segment
Quarterly Results by Segment Revenues1 ($ millions) 4Q FY20 Summary of $98.5 Segment Performance 1,2 $100 $91.5 Fiscal fourth quarter revenue of $98.5 million represented a 7.7% (3.7% organic) increase as compared to the prior year $83.5 39% of period $80 $38.4 Revenue 41% of $37.8 Revenue Industria
Slide 11: Quarterly Revenue by End Market
Quarterly Revenue by End Market 75% of fiscal fourth quarter revenue was generated by sales into three key end markets architecturally specified building products, plumbing, and HVAC 4th Quarter Fiscal 20201 4th Quarter Fiscal 20191 $98.5 million in revenue $91.5 million in revenue 3% 5% 5% 6% 13% 2
Slide 12: Fiscal Full Year 2020 - Summary of Financial Results
Fiscal Full Year 2020 - Summary of Financial Results
Slide 13: Fiscal Full Year Revenues by Segment
Fiscal Full Year Revenues by Segment FY2020 Summary of Revenues1 ($ millions) Segment Performance1,2 $500 Overall full year revenue increased 10.2% (5.9% organic) compared to the prior year period $400 $385.9 Industrial Products Segment: $350.2 Revenue increased 14.1% (6.7% organic), primarily $32
Slide 14: Full Year Revenue by End Market
Full Year Revenue by End Market 72% of fiscal full year revenue was generated by sales into three key end markets, architecturally specified building products, plumbing, and HVAC/R Fiscal Full Year 20201 Fiscal Full Year 20191 $385.9 million in revenue $350.2 million in revenue 6% 7% 5% 6% 28% 30% 1
Slide 15: Company Leadership
Company Leadership
Slide 16: Executive Team - Corporate
Executive Team - Corporate Our Senior Leadership Team Averages Over 25 Years of Experience in the Industrial Manufacturing & Specialty Chemicals Industries Joe Armes James Perry Luke Alverson Chairman, CEO & President Executive VP & CFO Senior VP, General Counsel & Secretary Joe has served as the Co
Slide 17: Executive Team – Business Segments
Executive Team – Business Segments Don Sullivan Craig Foster Senior VP & GM, Industrial Products Senior VP & GM, Specialty Chemicals Portfolio Companies Industrial Brands Investor Presentation – May 20, 2020 17
Slide 18: Segment, Product, and Brand Review
Segment, Product, and Brand Review Broad, yet complimentary portfolio of leading products that provide performance optimizing solution
Slide 19: Two Business Segments Serving Niche End Markets
Two Business Segments Serving 7 Niche End Markets Industrial Products Specialty Chemicals Consumables that enhance performance Specialty mechanical products, controls, fire & characteristics and reliability including pipe smoke protection, architecturally specified thread sealants, fire stopping sea
Slide 20: Architecturally Specified Building Products
Architecturally Specified Building Products Investor Presentation – May 20, 2020 20
Slide 21: Products Serving the Energy End Market
Products Serving the Energy End Market Investor Presentation – May 20, 2020 21
Slide 22: Products Serving the HVAC/R End Market
Products Serving the HVAC/R End Market Investor Presentation – May 20, 2020 22
Slide 23: Products Serving Niche HVAC/R Mini-Splits
Products Serving Niche HVAC/R Mini-Splits Investor Presentation – May 20, 2020 23
Slide 24: Products Serving the General Industrial End Market
Products Serving the General Industrial End Market Investor Presentation – May 20, 2020 24
Slide 25: Products Serving the Mining End Market
Products Serving the Mining End Market Investor Presentation – May 20, 2020 25
Slide 26: Products Serving the Plumbing End Market
Products Serving the Plumbing End Market Investor Presentation – May 20, 2020 26
Slide 27: Products Serving the Rail End Market
Products Serving the Rail End Market Investor Presentation – May 20, 2020 27
Slide 28: Appendix
Appendix
Slide 29: Competitors in Our End Markets
Competitors in Our End Markets Building HVAC/R Industrial Rail Energy Plumbing Mining Products Investor Presentation – May 20, 2020 29
Slide 30: Focused Acquisitions
Focused Acquisitions Capital Invested for Acquisitions ($ millions) Strategic Execution Plan 180 Identify and execute accretive, bolt-on 160 acquisitions that will broaden and complement our portfolio of brands and products 140 Optimize costs in strategic acquisitions and 120 eliminate most non-
Slide 31: Acquisition History
Acquisition History Industrial Products Specialty Chemicals Greco Green Smoke SMD Aluminum Metacaulk Island Guard Research Railings RCT W.H. Clean Aqua-Guard Cargo Safety Check Petersen Chemical North Metals Bio Golden Pivot American Novent Evolve Fireshield Extractor Tools Oil Co. Deacon QHi 1990 1
Slide 32: Reconciliation of Operating Income to Adjusted Operating Income (Unaudited)
Reconciliation of Operating Income to Adjusted Operating Income (Unaudited) (Amounts in thousands) Three Months Ended March 31, Fiscal Year Ended March 31, 2020 2019 2020 2019 GAAP Operating Income - Continuing Operations $ 15,136 $ 16,071 $ 66,067 $ 60,440 Adjusting items: Gain on sale of property
Slide 33: Reconciliation of Net Income and EPS to Adjusted Net Income and EPS (Unaudited)
Reconciliation of Net Income and EPS to Adjusted Net Income and EPS (Unaudited) (Amounts in thousands, except per share amounts) Three Months Ended March 31, Fiscal Year Ended March 31, 2020 2019 2020 2019 GAAP Net Income - Continuing Operations $ 13,373 $ 13,624 $ 44,817 $ 46,052 Adjusting items, n
Slide 34: Q4 Reconciliation of Segment Operating Income to Adjusted Operating Income (Unaudited)
Q4 Reconciliation of Segment Operating Income to Adjusted Operating Income (Unaudited) (Amounts in thousands, except percentages) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Consolidated Consolidated Industrial Specialty Corporate Industrial Specialty Corporate Continuing Con
Slide 35: FY Reconciliation of Segment Operating Income to Adjusted Operating Income (Unaudited)
FY Reconciliation of Segment Operating Income to Adjusted Operating Income (Unaudited) (Amounts in thousands, except percentages) Fiscal Year Ended March 31, 2020 Fiscal Year Ended March 31, 2019 Consolidated Consolidated Industrial Specialty Corporate Industrial Specialty Corporate Continuing Conti
Slide 36: Investor Presentation May 20, 2020
Industrial Products Investor Presentation May 20, 2020 Specialty Chemicals Investor Presentation – May 20, 2020 36