Fiscal Third Quarter and Year-to-Date 2020 Highlights
- Fiscal third quarter consolidated revenue from continuing operations of $83.7 million, up 8.0% (3.4% organic) compared to $77.5 million in the prior year period.
- Fiscal third quarter GAAP operating income of $10.5 million, up 11.3% compared to $9.4 million in the prior year period. There were no adjustments to operating income in the current quarter or the prior year period.
- Fiscal third quarter GAAP net income from continuing operations increased to $7.3 million, or $0.48 per diluted share, compared to $6.0 million, or $0.39 per diluted share in the prior year period.
- Year-to-date consolidated revenue from continuing operations increased 11.1% (6.6% organic) to $287.4 million, compared to $258.7 million in the prior year period.
- Year-to-date cash provided from continuing operations was $60.4 million compared to $58.3 million in the prior year period.
- Following quarter end, CSWI declared its fourth consecutive quarterly regular cash dividend of $0.135 per share, payable on February 14, 2020, to shareholders of record as of the close of business on January 31, 2020.
DALLAS, Feb. 04, 2020 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) today reported results for the fiscal third quarter and year-to-date period ended December 31, 2019.
Fiscal third quarter revenue was $83.7 million, representing 8.0% growth as compared to $77.5 million in the prior year period, driven by increased sales in both the Industrial Products and Specialty Chemicals segments. Organic growth equated to 3.4% of the total 8.0% growth, and the remainder was due to revenue generated by acquisitions completed within the past twelve months. Organic sales growth, as compared to the prior year quarter, was predominantly driven by heating, ventilation, air conditioning, and refrigeration (HVAC/R), plumbing, and general industrial end markets, and were partially offset by the architecturally-specified building products and energy end markets.
GAAP operating income from continuing operations in the fiscal third quarter of 2020 increased 11.3% to $10.5 million, compared to $9.4 million in the prior year period, primarily as a result of increased gross profit, due to sales growth, partially offset by an increase in operating expenses due to investments in our sales and marketing efforts. There were no adjustments to operating income in the third quarter 2020 or the prior year period.
GAAP net income from continuing operations in the fiscal third quarter of 2020 was $7.3 million, or $0.48 per diluted share, compared to $6.0 million, or $0.39 per diluted share, in the prior year period. After adjusting both quarters to exclude one-time items and to apply a normalized tax rate, adjusted net income from continuing operations in the fiscal third quarter of 2020 was $7.4 million, or $0.48 per diluted share, compared to $7.0 million, or $0.46 per diluted share, in the prior year period.
Joseph B. Armes, CSW Industrials’ Chairman, Chief Executive Officer, and President commented, “The momentum we have demonstrated all year continued into the fiscal third quarter, underscored by another solid quarter of growth in both the top and bottom line. This resulted in 11.1% total revenue growth and 17.9% adjusted operating income growth year to date, despite a challenging year-over-year comparison, particularly in the fiscal third quarter of 2019. Our quarterly and year-to-date results represent significant outperformance relative to GDP in these periods. These impressive results were driven by contributions from both segments, strong performance from our recent acquisitions, our team’s focus on innovative product introductions, investments in key personnel across our sales and marketing teams, and success in leveraging our channels to market.”
Armes continued, “Our focus remains on generating sustainable and profitable growth for our shareholders, while maintaining a strong balance sheet that supports our capital allocation strategy. We are succeeding on these metrics, and our strong operating cash flow provides ample resources to invest in innovative organic growth initiatives, enhance our industry leading brands, pursue accretive M&A, and deliver on our commitments to return cash to shareholders.”
Fiscal Third Quarter Results of Operations
Consolidated revenue from continuing operations increased 8.0% to $83.7 million, compared to $77.5 million in the prior year period.
Consolidated gross profit increased 10.1% to $37.7 million, compared to $34.2 million in the prior year period, primarily a result of the positive impact of recent acquisitions and leverage from increased sales, partially offset by a decline in the architecturally-specified building products end market. Gross margin as a percentage of sales improved 80 basis points to 45.0%, compared to 44.2% in the prior year period.
Consolidated operating expenses in the current quarter were $27.2 million, or 32.5% of sales, and as a percent of sales increased 50 basis points over the prior year level of 32.0%, or $24.8 million. The increases in both operating expense and operating expense as a percent of sales were primarily driven by additional personnel related expenses and selling, general and administrative costs related to acquired businesses.
GAAP net income from continuing operations of $7.3 million, or $0.48 per diluted share compared to $6.0 million, or $0.39 per diluted share in the prior year period. After adjusting both quarters to exclude one-time items and to apply a normalized tax rate, adjusted net income from continuing operations improved 5.2% to $7.4 million, or $0.48 per diluted share, compared to adjusted net income from continuing operations of $7.0 million, or $0.46 per diluted share, in the prior year period.
Industrial Products segment revenue increased 11.5% (3.3% organic) to $48.7 million, compared to $43.7 million in the prior year period. Sales volumes in the plumbing and HVAC/R end markets drove most of the strong organic revenue growth, partially offset by a decline in the architecturally-specified building products end market. GAAP segment operating income increased 7.2% to $8.6 million, compared to $8.1 million in the prior year period. The increased profits were driven by higher sales, partially offset by negative mix in architecturally-specified building products. There were no adjustments to GAAP results in the current or prior year periods.
Specialty Chemicals segment revenue improved 3.6%, all of which was organic, to $35.0 million, compared to $33.8 million in the prior year period. Growth was primarily driven by increased sales in the rail, plumbing, and mining end markets, partially offset by a decline in the energy end market. Due to increased sales and favorable sales mix, GAAP segment operating income rose 18.4% to $5.4 million, compared to $4.6 million in the prior year period. There were no adjustments to GAAP results in the current or prior year periods.
Following quarter end, CSWI declared its fourth consecutive quarterly regular cash dividend of $0.135 per share, payable on February 14, 2020, to shareholders of record as of the close of business on January 31, 2020.
Year-to-Date 2020 Results of Operations
For the first nine months of the fiscal year, consolidated revenue from continuing operations increased 11.1% (6.6% organic) to $287.4 million, compared to $258.7 million in the prior year period. Organic sales growth occurred in all end markets, except general industrial, which was relatively flat when compared to the prior year period.
For the first nine months of the fiscal year, consolidated gross profit increased 11.6% to $132.3 million, compared to $118.5 million in the prior year period, primarily a result of the positive impact of leverage from increased sales and recent acquisitions, partially offset by the negative net impact from the current and prior year sales of property, plant, and equipment. Gross margin as a percentage of sales improved approximately 20 basis points to 46.0%, compared to 45.8% in the prior year period.
For the first nine months of the fiscal year, consolidated operating expenses were $81.4 million, or 28.3% of sales, and as a percent of sales decreased approximately 40 basis points over the prior year level of 28.7%, or $74.2 million. The modest improvement in operating expense margin was primarily driven by sales leverage.
For the first nine months of the fiscal year, GAAP net income from continuing operations was $31.4 million, or $2.07 per diluted share compared to $32.4 million, or $2.07 per diluted share in the prior year period. After adjusting the current year-to-date period to exclude one-time items, the most significant being the charge in the fiscal second quarter to terminate the U.S. qualified pension plan ($5.4 million after-tax, or $0.35 per diluted share), and a normalized tax rate, adjusted net income from continuing operations improved 13.5% to $35.8 million, or $2.35 per diluted share. In the prior year period, adjusted net income from continuing operations, adjusted to exclude one-time items and applying a normalized tax rate, net income from continuing operations was $31.5 million, or $2.02 per diluted share.
For the first nine months of the fiscal year, the Industrial Products segment revenue increased 14.8% (7.2% organic) to $174.8 million, compared to $152.2 million in the prior year period. Sales volumes in the HVAC/R, plumbing and general industrial end markets drove most of the strong organic revenue growth, partially offset by a decline in the rail end market. GAAP segment operating income increased 16.4% to $42.1 million, compared to $36.2 million in the prior year period. Adjusted to exclude non-recurring items related to the sale of a facility in the prior year period, segment operating income increased 17.2% to $42.1 million, compared to $35.9 million in the prior year period. The increased profits were driven by higher sales, partially offset by increased personnel related expenses and a $0.5 million gain on the sale of property in the prior year that did not recur.
For the first nine months of the fiscal year, the Specialty Chemicals segment revenue improved 5.8%, all of which was organic, to $112.6 million, compared to $106.5 million in the prior year period. The Specialty Chemicals segment benefitted primarily from increased sales of consumable products into the rail, energy, architecturally-specified building products, and mining end markets, slightly offset by a decline in the general industrial end market. Due to increased sales, GAAP segment operating income rose 11.5% to $19.2 million, compared to $17.2 million in the prior year period. Adjusted to exclude non-recurring items related to the sale of a facility in each of the periods, segment operating income increased 17.8% to $18.4 million, compared to $15.6 million in the prior year period.
Year-to-date cash provided from continuing operations was $60.4 million compared to $58.3 million in the prior year period.
All percentages are calculated based upon the attached financial statements and reconciliations of non-GAAP financial measures.
Conference Call Information
The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the results. A live webcast of the call will also be available at https://cswindustrials.gcs-web.com/. Participants may access the call at 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 February 18, 2020. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671, and enter access code 13698150. An archived replay of the call will also be available 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, adjusted net income, and adjusted operating income, which are non-GAAP financial measures of performance. 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
CSWI is a diversified industrial growth company with well-established, scalable platforms and domain expertise across two segments: Industrial Products and Specialty Chemicals. CSWI's broad portfolio of leading products provides performance optimizing solutions to its customers. CSWI's products include mechanical products for heating, ventilation, air conditioning, and refrigeration applications, sealants, and high-performance specialty lubricants. Markets that CSWI serves include: HVAC/R, architecturally-specified building products, general industrial, plumbing, rail, energy, and mining. For more information, please visit www.cswindustrials.com.
Investor Relations
Adrianne D. Griffin
Vice President, Investor Relations, & Treasurer
214-489-7113
adrianne.griffin@cswi.com
| CSW INDUSTRIALS, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except per share amounts) |
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Revenues, net |
|
$ |
83,716 |
|
|
$ |
77,488 |
|
|
$ |
287,373 |
|
|
$ |
258,678 |
|
| Cost of revenues |
|
|
(46,025 |
) |
|
|
(43,260 |
) |
|
|
(155,043 |
) |
|
|
(140,153 |
) |
| Gross profit |
|
|
37,691 |
|
|
|
34,228 |
|
|
|
132,330 |
|
|
|
118,525 |
|
| Selling, general and administrative expenses |
|
|
(27,203 |
) |
|
|
(24,807 |
) |
|
|
(81,398 |
) |
|
|
(74,156 |
) |
| Operating income |
|
|
10,488 |
|
|
|
9,421 |
|
|
|
50,932 |
|
|
|
44,369 |
|
| Interest expense, net |
|
|
(286 |
) |
|
|
(289 |
) |
|
|
(1,086 |
) |
|
|
(1,094 |
) |
| Other (loss) income, net |
|
|
(848 |
) |
|
|
336 |
|
|
|
(8,302 |
) |
|
|
1,157 |
|
| Income before income taxes |
|
|
9,354 |
|
|
|
9,468 |
|
|
|
41,544 |
|
|
|
44,432 |
|
| Provision for income taxes |
|
|
(2,072 |
) |
|
|
(3,471 |
) |
|
|
(10,099 |
) |
|
|
(12,005 |
) |
| Income from continuing operations |
|
|
7,282 |
|
|
|
5,997 |
|
|
|
31,445 |
|
|
|
32,427 |
|
| Income/(loss) from discontinued operations, net of tax |
|
|
26 |
|
|
|
(1,016 |
) |
|
|
(148 |
) |
|
|
(616 |
) |
| Net income |
|
$ |
7,308 |
|
|
$ |
4,981 |
|
|
$ |
31,297 |
|
|
$ |
31,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.48 |
|
|
$ |
0.39 |
|
|
$ |
2.09 |
|
|
$ |
2.09 |
|
| Discontinued operations |
|
|
- |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
| Net income |
|
$ |
0.48 |
|
|
$ |
0.33 |
|
|
$ |
2.08 |
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
| Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.48 |
|
|
$ |
0.39 |
|
|
$ |
2.07 |
|
|
$ |
2.07 |
|
| Discontinued operations |
|
|
- |
|
|
|
(0.07 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
| Net income |
|
$ |
0.48 |
|
|
$ |
0.32 |
|
|
$ |
2.06 |
|
|
$ |
2.03 |
|
| CSW INDUSTRIALS, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except per share amounts) |
|
December 31, 2019 |
|
March 31, 2019 |
|
|
|
|
|
| ASSETS |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
39,884 |
|
|
$ |
26,651 |
|
| Accounts receivable, net of allowance for doubtful accounts of $1,139 and $591, respectively |
|
|
57,583 |
|
|
|
66,136 |
|
| Inventories, net |
|
|
57,269 |
|
|
|
51,429 |
|
| Prepaid expenses and other current assets |
|
|
3,843 |
|
|
|
7,030 |
|
| Current assets, discontinued operations |
|
|
46 |
|
|
|
21 |
|
| Total current assets |
|
|
158,625 |
|
|
|
151,267 |
|
| Property, plant and equipment, net of accumulated depreciation of $70,285 and $65,548, respectively |
|
|
55,599 |
|
|
|
53,639 |
|
| Goodwill |
|
|
92,720 |
|
|
|
86,295 |
|
| Intangible assets, net |
|
|
49,420 |
|
|
|
50,466 |
|
| Other assets |
|
|
22,318 |
|
|
|
10,965 |
|
| Noncurrent assets, discontinued operations |
|
|
2,012 |
|
|
|
- |
|
| Total assets |
|
$ |
380,694 |
|
|
$ |
352,632 |
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable |
|
$ |
17,704 |
|
|
$ |
19,024 |
|
| Accrued and other current liabilities |
|
|
34,666 |
|
|
|
29,426 |
|
| Current portion of long-term debt |
|
|
561 |
|
|
|
561 |
|
| Current liabilities, discontinued operations |
|
|
348 |
|
|
|
161 |
|
| Total current liabilities |
|
|
53,279 |
|
|
|
49,172 |
|
| Long-term debt |
|
|
10,477 |
|
|
|
30,898 |
|
| Retirement benefits payable |
|
|
2,049 |
|
|
|
1,978 |
|
| Other long-term liabilities |
|
|
19,302 |
|
|
|
6,114 |
|
| Noncurrent liabilities, discontinued operations |
|
|
2,595 |
|
|
|
784 |
|
| Total liabilities |
|
|
87,702 |
|
|
|
88,946 |
|
| Equity: |
|
|
|
|
| Common shares, $0.01 par value |
|
|
159 |
|
|
|
158 |
|
| Shares authorized – 50,000 |
|
|
|
|
| Shares issued – 16,054 and 16,001, respectively |
|
|
|
|
| Additional paid-in capital |
|
|
47,013 |
|
|
|
46,633 |
|
| Treasury shares, at cost (929 and 962 shares, respectively) |
|
|
(49,317 |
) |
|
|
(49,964 |
) |
| Retained earnings |
|
|
302,358 |
|
|
|
277,588 |
|
| Accumulated other comprehensive loss |
|
|
(7,221 |
) |
|
|
(10,729 |
) |
| Total equity |
|
|
292,992 |
|
|
|
263,686 |
|
| Total liabilities and equity |
|
$ |
380,694 |
|
|
$ |
352,632 |
|
| CSW INDUSTRIALS, INC. |
|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands) |
|
Nine Months Ended December 31, |
|
|
|
2019 |
|
2018 |
|
| Cash flows from operating activities: |
|
|
|
|
|
| Net income |
|
$ |
31,297 |
|
|
$ |
31,811 |
|
|
| Less: Loss from discontinued operations |
|
|
(148 |
) |
|
|
(616 |
) |
|
| Income from continuing operations |
|
|
31,445 |
|
|
|
32,427 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| Depreciation |
|
|
6,008 |
|
|
|
5,599 |
|
|
| Amortization of intangible and other assets |
|
|
5,238 |
|
|
|
4,799 |
|
|
| Provision for inventory reserves |
|
|
183 |
|
|
|
822 |
|
|
| Provision for doubtful accounts |
|
|
837 |
|
|
|
126 |
|
|
| Share-based compensation |
|
|
3,776 |
|
|
|
2,893 |
|
|
| Net gain on disposals of property, plant and equipment |
|
|
(844 |
) |
|
|
(2,854 |
) |
|
| Pension plan termination expense |
|
|
6,559 |
|
|
|
- |
|
|
| Net pension benefit |
|
|
(156 |
) |
|
|
(296 |
) |
|
| Realized deferred taxes (see Note 15) |
|
|
- |
|
|
|
10,419 |
|
|
| Net deferred taxes |
|
|
(369 |
) |
|
|
(194 |
) |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Accounts receivable, net |
|
|
10,143 |
|
|
|
12,450 |
|
|
| Inventories |
|
|
(5,099 |
) |
|
|
(7,676 |
) |
|
| Prepaid expenses and other current assets |
|
|
3,236 |
|
|
|
(2,263 |
) |
|
| Other assets |
|
|
20 |
|
|
|
293 |
|
|
| Accounts payable and other current liabilities |
|
|
(265 |
) |
|
|
1,755 |
|
|
| Retirement benefits payable and other liabilities |
|
|
(359 |
) |
|
|
(19 |
) |
|
| Net cash provided by operating activities, continuing operations |
|
|
60,353 |
|
|
|
58,281 |
|
|
| Net cash used in operating activities, discontinued operations |
|
|
(442 |
) |
|
|
(8,401 |
) |
|
| Net cash provided by operating activities |
|
|
59,911 |
|
|
|
49,880 |
|
|
| Cash flows from investing activities: |
|
|
|
|
|
| Capital expenditures |
|
|
(7,595 |
) |
|
|
(4,766 |
) |
|
| Proceeds from sale of assets held for investment |
|
|
- |
|
|
|
2,102 |
|
|
| Proceeds from sale of assets |
|
|
1,239 |
|
|
|
3,291 |
|
|
| Cash paid for acquisitions |
|
|
(11,837 |
) |
|
|
- |
|
|
| Net cash (used in) provided by investing activities, continuing operations |
|
|
(18,193 |
) |
|
|
627 |
|
|
| Net cash provided by investing activities, discontinued operations |
|
|
- |
|
|
|
7,356 |
|
|
| Net cash (used in) provided by investing activities |
|
|
(18,193 |
) |
|
|
7,983 |
|
|
| Cash flows from financing activities: |
|
|
|
|
|
| Borrowings on lines of credit |
|
|
7,500 |
|
|
|
8,000 |
|
|
| Repayments of lines of credit |
|
|
(27,921 |
) |
|
|
(20,421 |
) |
|
| Purchase of treasury shares |
|
|
(2,784 |
) |
|
|
(41,755 |
) |
|
| Dividends paid to shareholders |
|
|
(6,088 |
) |
|
|
- |
|
|
| Net cash used in financing activities |
|
|
(29,293 |
) |
|
|
(54,176 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
808 |
|
|
|
(769 |
) |
|
| Net change in cash and cash equivalents |
|
|
13,233 |
|
|
|
2,918 |
|
|
| Cash and cash equivalents, beginning of period |
|
|
26,651 |
|
|
|
11,706 |
|
|
| Cash and cash equivalents, end of period |
|
$ |
39,884 |
|
|
$ |
14,624 |
|
|
Reconciliation of Non-GAAP Measures
| CSW INDUSTRIALS, INC. |
|
| RECONCILIATION OF GAAP OPERATING INCOME - CONTINUING OPERATIONS TO ADJUSTED OPERATING INCOME - CONTINUING OPERATIONS |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands) |
Three Months Ended December 31, |
|
Nine Months Ended December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
| GAAP Operating Income - Continuing Operations |
$ |
10,488 |
|
$ |
9,421 |
|
$ |
50,932 |
|
|
$ |
44,369 |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
|
Gain on sale of property & other |
|
- |
|
|
- |
|
|
(776 |
) |
|
|
(1,839 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Income - Continuing Operations |
$ |
10,488 |
|
$ |
9,421 |
|
$ |
50,156 |
|
|
$ |
42,530 |
|
|
| CSW INDUSTRIALS, INC. |
|
| RECONCILIATION OF GAAP NET INCOME - CONTINUING OPERATIONS TO ADJUSTED NET INCOME - CONTINUING OPERATIONS |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except per share amounts) |
Three Months Ended December 31, |
|
Nine Months Ended December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
| GAAP Net Income - Continuing Operations |
$ |
7,282 |
|
|
$ |
5,997 |
|
$ |
31,445 |
|
|
$ |
32,427 |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items, net of tax: |
|
|
|
|
|
|
|
|
|
Gain on sale of property & other |
|
357 |
|
|
|
- |
|
|
(225 |
) |
|
|
(1,361 |
) |
|
|
Pension Termination |
|
- |
|
|
|
- |
|
|
5,377 |
|
|
|
- |
|
|
|
Discrete Tax Provisions & Other |
|
(267 |
) |
|
|
1,009 |
|
|
(811 |
) |
|
|
452 |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income - Continuing Operations |
$ |
7,372 |
|
|
$ |
7,006 |
|
$ |
35,786 |
|
|
$ |
31,518 |
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Diluted income per common share, Continuing operations |
$ |
0.48 |
|
|
$ |
0.39 |
|
$ |
2.07 |
|
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items, per diluted common share: |
|
|
|
|
|
|
|
|
|
Gain on sale of property & other |
|
0.02 |
|
|
|
- |
|
|
(0.02 |
) |
|
|
(0.08 |
) |
|
|
Pension Termination |
|
- |
|
|
|
- |
|
|
0.35 |
|
|
|
- |
|
|
|
Discrete Tax Provisions & Other |
|
(0.02 |
) |
|
|
0.07 |
|
|
(0.05 |
) |
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings per diluted common share |
$ |
0.48 |
|
|
$ |
0.46 |
|
$ |
2.35 |
|
|
$ |
2.02 |
|
|
| CSW INDUSTRIALS, INC. |
|
| RECONCILIATION OF GAAP SEGMENT OPERATING INCOME TO ADJUSTED SEGMENT OPERATING INCOME |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except percentages) |
Three Months Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
|
|
Industrial Products |
|
Specialty Chemicals |
|
Corporate and Other |
|
Consolidated Continuing Operations |
|
Industrial Products |
|
Specialty Chemicals |
|
Corporate and Other |
|
Consolidated Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
48,673 |
|
|
$ |
35,043 |
|
|
$ |
- |
|
|
$ |
83,716 |
|
|
$ |
43,652 |
|
|
$ |
33,836 |
|
|
$ |
- |
|
|
$ |
77,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
$ |
8,643 |
|
|
$ |
5,414 |
|
|
$ |
(3,569 |
) |
|
$ |
10,488 |
|
|
$ |
8,059 |
|
|
$ |
4,574 |
|
|
$ |
(3,212 |
) |
|
$ |
9,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| None |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Income |
$ |
8,643 |
|
|
$ |
5,414 |
|
|
$ |
(3,569 |
) |
|
$ |
10,488 |
|
|
$ |
8,059 |
|
|
$ |
4,574 |
|
|
$ |
(3,212 |
) |
|
$ |
9,421 |
|
|
| % of revenue |
|
17.8 |
% |
|
|
15.4 |
% |
|
|
|
|
12.5 |
% |
|
|
18.5 |
% |
|
|
13.5 |
% |
|
|
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Amounts in thousands, except percentages) |
|
Nine Months Ended December 31, 2019 |
|
Nine Months Ended December 31, 2018 |
|
|
|
Industrial Products |
|
Specialty Chemicals |
|
Corporate and Other |
|
Consolidated Continuing Operations |
|
Industrial Products |
|
Specialty Chemicals |
|
Corporate and Other |
|
Consolidated Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
174,794 |
|
|
$ |
112,579 |
|
|
$ |
- |
|
|
$ |
287,373 |
|
|
$ |
152,239 |
|
|
$ |
106,437 |
|
|
$ |
2 |
|
|
$ |
258,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
$ |
42,099 |
|
|
$ |
19,179 |
|
|
$ |
(10,346 |
) |
|
$ |
50,932 |
|
|
$ |
36,164 |
|
|
$ |
17,205 |
|
|
$ |
(9,000 |
) |
|
$ |
44,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of property & other |
|
- |
|
|
|
(776 |
) |
|
|
- |
|
|
|
(776 |
) |
|
|
(253 |
) |
|
|
(1,586 |
) |
|
|
- |
|
|
|
(1,839 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating Income |
$ |
42,099 |
|
|
$ |
18,403 |
|
|
$ |
(10,346 |
) |
|
$ |
50,156 |
|
|
$ |
35,911 |
|
|
$ |
15,619 |
|
|
$ |
(9,000 |
) |
|
$ |
42,530 |
|
|
| % of revenue |
|
24.1 |
% |
|
|
16.3 |
% |
|
|
|
|
17.5 |
% |
|
|
23.6 |
% |
|
|
14.7 |
% |
|
|
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We use adjusted earnings per share, adjusted net income and adjusted operating income, together with financial measures prepared in accordance with GAAP, such as revenue, income from operations, operating expense, operating income and net income, 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-operating items.
