NYSE$CSW

Csw Industri Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a significant increase in revenue and adjusted EPS, driven by strategic acquisitions and organic growth.

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.

Headline financials

Total Revenue

$133M

Previous: $98.5M+35.4%
EPS (adj)

$0.88

Previous: $0.83+6.0%
Adjusted EBITDA Margin

23.1%

No prior period
Adjusted EBITDA

$30.9M

No prior period
Net Income

$9.6M

Previous: $14.6M-34.2%
Operating Income

$16.9M

Previous: $15.1M+11.7%
Gross Profit

$54M

Previous: $44.7M+20.8%
Cash & Equivalents

$10.1M

Previous: $18.3M-45.0%
Total Assets

$875M

Previous: $369M+137.0%

Revenue & EPS history

Csw Industri · Revenue · Quarterly

$133M

Q4 2021+35.4%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Csw Industri · $311M total across 3 segments · Q4 2026

  • Contractor Solutions
    $237M
  • Specialized Reliability Solutions
    $46.2M
  • Engineered Building Solutions
    $27.7M

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+0.6%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.8%

Avg return

30 days after

54%

26 / 48 earnings

Positive

+13.1%

Q2 2019

Best reaction

-8.5%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-8.5%-12.9%-1.9%
Q2 2026+1.4%-2.4%+11.4%
Q1 2026-3.9%-10.7%-1.6%
Q4 2025-3.8%-0.3%-10.4%
Q3 2025-5.0%-7.4%-11.4%
Q2 2025-2.8%+0.3%+16.3%
Q1 2025+5.1%-0.3%+12.7%
Q4 2024+5.7%+4.6%+7.2%
Q3 2024+4.2%+4.4%+8.0%
Q2 2024-0.3%-1.6%+3.7%
Q1 2024+0.1%+3.4%+2.4%
Q4 2023+7.9%+7.7%+19.6%
Q3 2023+3.3%+4.2%+4.9%
Q2 2023-1.0%-4.6%-3.2%
Q1 2023+5.9%+13.2%+6.7%
Q4 2022-3.3%-2.3%-9.8%
Q3 2022+0.8%+2.6%+6.4%
Q2 2022-6.7%-2.0%-14.8%
Q1 2022+3.3%+7.1%+9.5%
Q4 2021+2.5%+0.7%-5.5%
Q3 2021+2.7%+2.3%+4.3%
Q2 2021+6.4%+7.0%+29.8%
Q1 2021+10.0%+9.8%+17.2%
Q4 2020+1.3%+0.9%+3.5%
Q3 2020-1.3%-5.7%-5.8%
Q2 2020+3.8%+4.5%+4.4%
Q1 2020+1.3%+2.9%+0.2%
Q4 2019+7.6%+6.9%+13.2%
Q3 2019+6.3%+5.0%+6.5%
Q2 2019+13.1%+10.6%+7.1%
Q1 2019-3.4%-1.2%+3.2%
Q4 2018+4.4%+6.7%+13.5%
Q3 2018+2.5%+1.8%+4.6%
Q2 2018-3.2%-4.9%-2.9%
Q1 2018+2.7%+5.2%+8.3%
Q4 2017+3.3%+0.5%+7.5%
Q3 2017-1.1%+0.3%-1.5%
Q2 2017+3.1%+5.8%+8.6%
Q1 2016-4.5%-7.6%-6.2%
Q1 2017+3.0%+2.2%+7.4%
Q4 2014-2.6%-7.1%-3.0%
Q1 2015-2.6%-7.1%-3.0%
Q4 2016-2.6%-7.1%-3.0%
Q3 2016-8.5%
Q3 2015-8.5%
Q2 2015-2.8%
Q4 2015-2.8%
Q2 2016-2.8%

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