In This Article:
-
Revenue: $194 million for the fiscal third quarter, an 11% increase from the prior year period.
-
Adjusted EBITDA: $42 million, a 14% growth compared to the prior year period.
-
Adjusted Earnings Per Diluted Share: $1.48, compared to $1.07 in the prior year period, representing a 49% growth.
-
Adjusted Net Income: $25 million for the fiscal third quarter.
-
Adjusted EBITDA Margin: Expanded by 70 basis points to 21.7%.
-
Gross Profit: $80 million, representing 8% growth over the prior year period.
-
Gross Profit Margin: Declined by 90 basis points to 41.4% due to increased freight expenses.
-
Contractor Solutions Segment Revenue: $132 million, accounting for 67% of consolidated revenue, with 14.5% total growth.
-
Specialized Reliability Segment Revenue: $34.6 million, a 3% increase from the prior period.
-
Engineered Building Solutions Segment Revenue: $28.8 million, a 3% increase from the prior year period.
-
Cash and Cash Flow from Operations: Ended the fiscal third quarter with $214 million of cash and reported cash flow from operations of $12 million.
-
Free Cash Flow: $8.5 million in the fiscal third quarter, compared to $43.1 million in the same period a year ago.
-
Effective Tax Rate: 13.8% on a GAAP basis and 24.5% when adjusted.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
CSW Industrials Inc (NASDAQ:CSWI) reported record fiscal third-quarter revenue of $194 million, marking an 11% increase compared to the prior year.
-
The company achieved a record adjusted EBITDA of $42 million, reflecting a 14% growth year-over-year.
-
CSW Industrials Inc (NASDAQ:CSWI) successfully executed its capital allocation strategy by acquiring PF WaterWorks, expanding its product offerings in the Contractor Solutions segment.
-
The company's adjusted earnings per diluted share increased to $1.48, a 49% growth from the previous year.
-
CSW Industrials Inc (NASDAQ:CSWI) maintained a strong balance sheet with $214 million in cash and eliminated most of its interest expense by repaying its revolver balance.
Negative Points
-
The gross profit margin declined by 90 basis points to 41.4% due to increased freight expenses.
-
Free cash flow decreased significantly to $8.5 million from $43.1 million in the same period last year, impacted by a $17 million tax payment deferral and increased inventory.
-
The Contractor Solutions segment experienced a slight decline in adjusted EBITDA margin due to increased freight expenses and acquisition integration costs.
-
Organic revenue growth was modest at 1.8%, with some headwinds from the architecturally specified building products market.
-
The Specialized Reliability segment saw revenue declines in the mining and energy end markets, despite overall segment growth.