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Mar 31, 2021
Csw Industri Q4 2021 Earnings Report
Reported a significant increase in revenue and adjusted EPS, driven by strategic acquisitions and organic growth.
Key Takeaways
CSW Industrials reported a strong fiscal fourth quarter and full year 2021, marked by a 35.4% increase in quarterly revenue to $133.4 million and a record adjusted EPS of $3.37 for the full year. The company's performance was bolstered by the TRUaire acquisition and organic growth in key end markets, particularly HVAC/R and plumbing. Despite challenges from rising commodity and transportation costs, CSWI managed to maintain profitability and increase its quarterly cash dividend.
Revenue increased by 35.4% to $133.4 million compared to the prior year.
GAAP net income was $9.6 million, with adjusted EBITDA reaching $30.9 million and a margin of 23.1%.
EPS was $0.61, while adjusted EPS increased to $0.88, driven by transaction costs and purchase accounting effects.
The integration of TRUaire is progressing as planned, contributing significantly to revenue growth.
Csw Industri
Csw Industri
Forward Guidance
CSW Industrials provided insights into its financial expectations for fiscal year 2022, including anticipated amortization of intangible assets, share-based compensation expenses, the completion of amortization related to the TRUaire inventory fair value step-up, and the company's expected effective tax rate.
Positive Outlook
- Anticipated completion of TRUaire inventory amortization by fiscal Q2 2022.
- Strategic inventory build to manage commodity and transportation price increases.
- Facilities remain fully operational.
- Strong balance sheet enabling strategic investments.
- Commitment to long-term growth and profitability.
Challenges Ahead
- Exposure to rising commodity and transportation prices.
- Anticipated amortization of intangible assets of approximately $19.3 million in fiscal year 2022.
- Expected share-based compensation expense of approximately $8.5 million in fiscal year 2022.
- Effective tax rate for fiscal 2022 is expected to be approximately 25%.
- Experienced dislocations in some raw materials.