CSW Industrials, Inc. (NASDAQ:CSWI) Q2 2023 Results Conference Call November 3, 2022 10:00 AM ET Company Participants Adrianne Griffin - Vice President, Investor Relations & Treasurer Joseph Armes - Chairman, Chief Executive Officer & President James Perry - Executive Vice President and Chief Financial Officer Conference Call Participants Julio Romero - Sidoti Jon Tanwanteng - CJS Securities Operator Good morning, and welcome to the CSW Industrials Inc. Fiscal Second Quarter 2023 Earnings Conference Call. [ ...

Revenue Growth - Net revenues for the three months ended September 30, 2022 increased by $35.6 million, or 22.9%, compared to the same period in 2021, driven by acquisitions and organic sales growth [122]. - Net revenues for the six months ended September 30, 2022 increased by $74.3 million, or 23.4%, with organic sales growth contributing $54.6 million, or 17.2% [125]. - Net revenues for the three months ended September 30, 2022 increased by $27.0 million, or 26.1%, compared to the same period in 2021, driven by acquisitions and organic sales growth [143]. - Net revenues for the six months ended September 30, 2022 increased by $54.3 million, or 25.4%, compared to the same period in 2021, with organic sales contributing significantly [144]. - Net revenues for the Specialized Reliability Solutions segment for the three months ended September 30, 2022 increased by $8.4 million, or 29.6%, compared to the same period in 2021, primarily due to pricing initiatives [155]. Profitability - Gross profit for the three months ended September 30, 2022 increased by $17.4 million, or 27.5%, with a gross profit margin of 42.2%, up from 40.7% in the prior year [127]. - Operating income for the three months ended September 30, 2022 increased by $9.2 million, or 35.4%, resulting in an operating margin of 18.5% [133]. - Operating income for the three months ended September 30, 2022 increased by $5.5 million, or 20.7%, compared to the same period in 2021, attributed to higher net revenue and reduced COVID-related expenses [145]. - Operating income for the six months ended September 30, 2022 increased by $12.3 million, or 21.9%, compared to the same period in 2021, driven by increased net revenue and the inclusion of Shoemaker [147]. - Operating income for the Specialized Reliability Solutions segment for the three months ended September 30, 2022 increased by $3.4 million, or 284.0%, compared to the same period in 2021, reflecting increased net revenue [157]. Expenses and Costs - Operating expenses for the three months ended September 30, 2022 increased by $8.2 million, or 22.0%, primarily due to increased sales commissions and marketing expenses [129]. - Material and freight cost volatility is expected to continue in the near term, despite improvements observed in the latest quarter [114]. Cash Flow and Capital Management - Cash provided by operating activities for the six months ended September 30, 2022 was $47.3 million, compared to $42.8 million for the same period in 2021 [162]. - Capital expenditures during the six months ended September 30, 2022 were $4.5 million, focused on enterprise resource planning systems and capacity expansion [165]. - The company’s cash balance at September 30, 2022 was $13.6 million, down from $16.6 million at March 31, 2022 [162]. - The company utilized $26.0 million in investing activities during the six months ended September 30, 2022, compared to $3.6 million in the same period in 2021 [164]. - Cash flows used in financing activities for the six months ended September 30, 2022, were $23.9 million, down from $31.7 million in the same period of 2021 [166]. - Net borrowing on the Revolving Credit Facility and term loan was $16.7 million for the six months ended September 30, 2022, compared to $(28.3) million in 2021 [166]. - Share repurchases under the share repurchase program amounted to $35.6 million in the six months ended September 30, 2022, while there were no repurchases in the same period of 2021 [166]. - Dividend payments increased to $5.3 million for the six months ended September 30, 2022, from $4.7 million in 2021 [168]. Strategic Focus and Outlook - The company expects to maintain a strong balance sheet in fiscal year 2023, focusing on organic growth, strategic acquisitions, and returning cash to shareholders [118]. - The company has made several acquisitions, including Shoemaker, Cover Guard, and AC Guard, contributing to revenue growth in the Contractor Solutions segment [121]. - The company plans to continue investing in product offerings and maintaining facilities to drive long-term profitable growth [118]. - The company is actively evaluating acquisition opportunities, with financing costs and terms being critical considerations [169]. - The company entered into an interest rate swap agreement to hedge exposure to variable interest payments related to its indebtedness [171]. - The company remains in compliance with all covenants as of September 30, 2022 [170]. Risks and Challenges - The company is closely monitoring the impacts of the Russia-Ukraine conflict but does not anticipate a material impact on its operations [117]. - Forward-looking statements indicate potential impacts from inflationary pressures and global supply chain challenges on future revenues and operating margins [177]. - The company anticipates ongoing effects from the COVID-19 pandemic and geopolitical tensions, including the conflict in Ukraine, on its operations [177]. - The company has not made significant changes to its critical accounting policies in the six months ended September 30, 2022 [172].

CSW Industrials, Inc. (NASDAQ:CSWI) Q1 2023 Earnings Conference Call August 5, 2022 10:00 AM ET Company Participants Adrianne Griffin - Vice President, Investor Relations & Treasurer Joseph Armes - Chairman, Chief Executive Officer & President James Perry - Executive Vice President and Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities Julio Romero - Sidoti Operator Greetings, and welcome to the CSW Industrials Fiscal First Quarter 2023 Earnings Call. At this time, all part ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-37454 CSW INDUSTRIALS, INC. (Exact name of registrant as specified in its charter) Delaware 47-226 ...

CSW Industrials, Inc. (NASDAQ:CSWI) Q4 2022 Earnings Conference Call May 18, 2022 10:45 AM ET CompanyParticipants Joe Armes - Chairman, CEO & President James Perry - EVP & CFO Adrianne Griffin - VP, IR & Treasurer Conference Call Participants Stefanos Crist - CJS Securities Chris Howe - Barrington Research Julio Romero - Sidoti & Company Operator Greetings, and welcome to CSW Industrials, Inc. Fiscal Fourth Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and- ...

May 2022 Investor Presentation Fiscal 2022 4 th Quarter and Full Year Results | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Table of Contents CSW INDUSTRIALS, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-37454 Delaware 47-2266942 (state or other jurisdic ...

Financial Data and Key Metrics Changes - In Q3 2022, the company achieved a year-over-year revenue growth of 52% and adjusted EBITDA growth of 25% [5] - Year-to-date results showed revenue and adjusted EBITDA growth of 59% and 55% respectively compared to the prior year [5] - Consolidated revenue for Q3 2022 was $136.3 million, a 51.5% increase from the prior year [13] - Reported net income for Q3 2022 was $8.3 million or $0.52 per diluted share, compared to $2.3 million or $0.16 in the prior year [16] Business Segment Data and Key Metrics Changes - The Contractor Solutions segment accounted for 60.5% of consolidated revenue, delivering $38 million or 85.6% total growth, with organic revenue growth of $11.2 million or 25.3% [17] - The Engineered Building Solutions segment experienced a decline in revenue, but new product expansion and share gains helped offset most of the decline, with segment EBITDA at $3.6 million or 15.1% of revenue [18] - The Specialized Reliability Solutions segment posted organic growth of $11.5 million or 57.9%, with adjusted EBITDA of $4 million and a margin of 12.9% [19] Market Data and Key Metrics Changes - The company noted significant port delays in California impacting operations, with an average of 32 containers shipped per week from the TRUaire facility in Vietnam [9] - Demand returned in the energy, mining, rail, and general industrial end markets, supporting the Specialized Reliability Solutions segment's performance [7] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and liquidity for opportunistic acquisitions, having invested approximately $430 million in the TRUaire and Shoemaker acquisitions [8][20] - The strategy includes expanding product offerings through acquisitions and enhancing distribution capabilities, particularly in the HVAC/R market [8][24] - The company aims to develop niche product categories that grow faster than the end markets served, emphasizing innovation and customization for higher margins [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about high demand across virtually all businesses despite challenges such as port congestion and inflationary pressures [29] - The company expects to see a tailwind in the Engineered Building Solutions segment as bidding and booking trends improve, particularly in fiscal 2023 [45] Other Important Information - The company reported a total recordable incident rate improvement in safety measures, reducing from 3.2 in 2020 to 1.3 in 2021 [10] - The effective tax rate for Q3 2022 was 19.1% on a GAAP basis, with expectations of a 25% tax rate for the full fiscal year [21] Q&A Session Summary Question: Any incremental headwind anticipated in fiscal Q4? - Management noted some revenue pull forward and ongoing port congestion as potential headwinds but maintained confidence in the overall guidance [27][28] Question: Is there any risk from Omicron affecting production? - Management reported no current impact from Omicron, with production levels back to normal and no excess absenteeism reported [30][31] Question: What are the growth opportunities with Shoemaker? - Management highlighted Shoemaker's strong brand and geographic complementarity, expecting synergies and growth opportunities in both residential and commercial markets [32][33] Question: How is the M&A environment perceived? - Management feels well-positioned with a strong balance sheet to pursue acquisitions, maintaining discipline while being opportunistic [39] Question: Update on inflation versus pricing in fiscal Q4? - Management indicated that raw material prices are stabilizing, but elevated freight costs remain a concern, with efforts to pass through costs to customers [41][42]

February 2022 Investor Presentation Fiscal 2022 3 rd Quarter and Year-to-Date Results | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...