Attached files
| file | filename |
|---|---|
| 8-K - 8-K COVER - CSW INDUSTRIALS, INC. | form8-k801discopssuppfinan.htm |
CSW Industrials, Inc. Exhibit 99.1
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, September 30, December 31, March 31, June 30, September 30,
(in thousands, except per share amounts) 2016 2016 2016 2017 2017 2017
ASSETS
Current assets:
Cash and cash equivalents................................................... 21,710$ 24,624$ 20,414$ 23,146$ 25,926$ 26,483$
Bank time deposits............................................................... 13,183 10,373 1,753 1,776 1,829 1,909
Accounts receivable, net...................................................... 55,333 54,953 46,453 59,831 67,427 62,997
Inventories, net..................................................................... 42,646 42,126 45,050 43,665 44,056 43,627
Prepaid expenses and other current assets........................... 8,903 8,292 9,252 3,084 2,388 3,030
Current assets, discontinued operations.............................. 14,013 14,836 15,216 14,781 15,771 17,544
Total current assets..................................................................... 155,788 155,204 138,138 146,283 157,397 155,590
Property, plant and equipment, net............................................. 58,752 58,673 57,434 56,812 56,447 55,924
Goodwill..................................................................................... 67,440 67,375 67,147 80,863 81,286 81,766
Intangible assets, net................................................................... 51,571 50,273 48,712 59,312 58,004 56,757
Other assets................................................................................. 15,872 15,888 16,078 16,010 16,165 16,298
Noncurrent assets, discontinued operations............................... 40,157 37,032 37,957 38,809 38,935 39,024
Total assets.................................................................................. 389,580$ 384,445$ 365,466$ 398,089$ 408,234$ 405,359$
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable................................................................. 8,263$ 7,567$ 8,708$ 10,372$ 13,860$ 13,892$
Accrued and other current liabilities................................... 17,029 19,590 22,574 21,619 30,257 32,653
Current portion of long-term debt....................................... 561 561 561 561 561 561
Current liabilities, discontinued operations......................... 2,704 3,304 4,999 5,184 4,515 4,042
Total current liabilities................................................................ 28,557 31,022 36,842 37,736 49,193 51,148
Long-term debt........................................................................... 83,981 71,841 46,286 72,646 66,630 52,615
Retirement benefits payable....................................................... 1,605 1,505 1,300 1,464 1,252 1,027
Other long-term liabilities........................................................... 12,694 13,702 12,394 13,805 7,574 6,400
Total liabilities............................................................................ 126,837 118,070 96,822 125,651 124,649 111,190
Equity:
Common shares, $0.01 par value......................................... 156 156 157 157 157 157
Additional paid-in capital.................................................... 34,327 34,585 37,603 38,701 39,212 40,559
Treasury shares, at cost ....................................................... (556) (569) (972) (1,011) (1,021) (1,037)
Retained earnings................................................................. 238,051 241,892 242,298 245,026 254,046 261,348
Accumulated other comprehensive loss.............................. (9,235) (9,689) (10,442) (10,435) (8,809) (6,858)
Total equity................................................................................. 262,743 266,375 268,644 272,438 283,585 294,169
Total liabilities and equity.......................................................... 389,580$ 384,445$ 365,466$ 398,089$ 408,234$ 405,359$
CSW Industrials, Inc.
Condensed Consolidated Income Statements
(Unaudited)
Quarter Ended
June 30,
Quarter Ended
September 30,
Quarter Ended
December 31,
Quater Ended
March 31,
Quarter Ended
June 30,
Quarter Ended
September 30,
(in thousands, except per share amounts) 2016 2016 2016 2017 2017 2017
Revenues, net.................................................................................. 74,864$ 70,914$ 65,257$ 76,425$ 89,299$ 84,422$
Cost of revenues............................................................................. (38,646) (36,053) (37,888) (45,942) (47,432) (44,765)
Gross profit..................................................................................... 36,218 34,861 27,369 30,483 41,867 39,657
Selling, general and administrative expenses............................ (26,053) (22,341) (22,230) (23,866) (24,864) (24,758)
Impairment expenses............................................................... (1,082) - (13) (220) - -
Operating income........................................................................... 9,083 12,520 5,126 6,397 17,003 14,899
Interest expense, net................................................................. (748) (742) (673) (532) (631) (671)
Other income (expense), net..................................................... 530 747 587 (135) (314) 254
Income before income taxes............................................................ 8,865 12,525 5,040 5,730 16,058 14,482
Provision for income taxes.............................................................. (3,599) (5,171) (3,182) (2,408) (5,771) (5,332)
Income from continuing operations................................................. 5,266 7,354 1,858 3,322 10,287 9,150
Loss from discontinued operations, net of tax................................. (1,170) (3,512) (1,453) (594) (1,773) (1,848)
Net income..................................................................................... 4,096$ 3,842$ 405$ 2,728$ 8,514$ 7,302$
Basic earnings (loss) per common share:
Continuing operations.............................................................. 0.34$ 0.47$ 0.12$ 0.21$ 0.65$ 0.58$
Discontinued operations........................................................... (0.08) (0.23) (0.09) (0.04) (0.12) (0.12)
Net income.............................................................................. 0.26$ 0.24$ 0.03$ 0.17$ 0.53$ 0.46$
Diluted earnings (loss) per common share:
Continuing operations.............................................................. 0.33$ 0.47$ 0.12$ 0.21$ 0.65$ 0.57$
Discontinued operations........................................................... (0.07) (0.23) (0.09) (0.04) (0.12) (0.11)
Net income.............................................................................. 0.26$ 0.24$ 0.03$ 0.17$ 0.53$ 0.46$
CSW Industrials, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Year
Ended
(in thousands) March 31, 2017
Cash flows from operating activities:
Net income (loss)............................................................................................................ 11,071$
Income (loss) from discontinued operations.................................................................. (6,729)
Net income from continuing operations......................................................................... 17,800$
Adjustments to reconcile net income from continuing operations to net cash
provided by operating activities:
Depreciation and amortization................................................................................ 13,754
Share-based and other executive compensation...................................................... 4,642
Net pension benefit.................................................................................................. (1,092)
Impairment of assets................................................................................................ 1,318
Net deferred taxes.................................................................................................... 464
Other non-cash items, net........................................................................................ 143
Changes in operating assets and liabilities:
Accounts receivable, net................................................................................... (5,028)
Inventories, net................................................................................................. 214
Prepaid expenses and other current assets........................................................ (793)
Other assets....................................................................................................... (115)
Accounts payable and other current liabilities................................................. 5,669
Retirement benefits payable and other liabilities............................................. 2,385
Net cash provided by operating activities from continuing operations........................ 39,361
Net cash used by operating activities from discontinued operations............................ (325)
Net cash provided by operating activities......................................................................... 39,036
Cash flows from investing activities:
Capital expenditures....................................................................................................... (6,869)
Proceeds from sale of assets ......................................................................................... 605
Net change in bank time deposits................................................................................... 10,968
Cash paid for acquisitions.............................................................................................. (28,179)
Net cash (used) provided by investing activities from continuing operations.............. (23,475)
Net cash used by investing activities from discontinued operations.............................. (2,493)
Net cash (used) provided by investing activities.............................................................. (25,968)
Cash flows from financing activities:
Net repayments on lines of credit................................................................................... (16,476)
Payment of deferred loan costs....................................................................................... -
Purchase of treasury shares............................................................................................ (1,011)
Proceeds from stock option activity............................................................................... 2,169
Net cash used by financing activities................................................................................. (15,318)
Effect of exchange rate changes on cash and cash equivalents............................................. (591)
Net (decrease) increase in cash and cash equivalents ..................................................... (2,841)
Cash and cash equivalents, beginning of period ............................................................. 25,987
Cash and cash equivalents, end of period ....................................................................... 23,146$
CSW Industrials, Inc.
Segment Financial Information
(unaudited)
(in thousands)
Industrial
Products
Specialty
Chemicals
Subtotal -
Reportable
Segments
Eliminations
and Other Total
Quarter Ended June 30, 2016
Revenues, net.................................................. 43,475$ 31,368$ 74,843$ 21$ 74,864$
Operating income............................................ 10,607 4,443 15,050 (5,967) 9,083
Quarter Ended September 30, 2016
Revenues, net.................................................. 41,858$ 29,034$ 70,892$ 22$ 70,914$
Operating income............................................ 9,897 5,167 15,064 (2,544) 12,520
Quarter Ended December 31, 2016
Revenues, net.................................................. 31,715$ 33,498$ 65,213$ 44$ 65,257$
Operating income............................................ 3,978 3,099 7,077 (1,951) 5,126
Quarter Ended March 31, 2017
Revenues, net.................................................. 41,605$ 34,817$ 76,422$ 3$ 76,425$
Operating income............................................ 8,411 799 9,210 (2,813) 6,397
Quarter Ended June 30, 2017
Revenues, net.................................................. 53,261$ 36,036$ 89,297$ 2$ 89,299$
Operating income............................................ 13,633 5,641 19,274 (2,271) 17,003
Quarter Ended September 30, 2017
Revenues, net.................................................. 48,487$ 35,936$ 84,423$ (1)$ 84,422$
Operating income............................................ 12,280 5,428 17,708 (2,809) 14,899
CSW Industrials, Inc.
Reconciliation of Operating Income to Adjusted Operating Income---Continuing Operations
(Unaudited)
Quarter Ended
June 30,
Quarter Ended
September 30,
Quarter Ended
December 31,
Quater Ended
March 31,
Quarter Ended
June 30,
Quarter Ended
September 30,
(in thousands) 2016 2016 2016 2017 2017 2017
Operating income 9,083 12,520 5,126 6,397 17,003 14,899
Adjusting items:
Asset Impairment - - 124 220 - -
CFO Transition 2,841 31 - - - -
Consulting projects 494 303 391 459 - -
Transaction and integration costs - - - 431 - 110
Discrete Tax Provision & Other - - - - - -
Estimated Reserve for Excess Inventory - 404 - - - -
Restructuring & realignment 1,082 - 2,063 3,454 1,108 135
Adjusted Operating Income 13,500$ 13,258$ 7,704$ 10,961$ 18,111$ 15,144$
CSW Industrials
Reconciliation of Net Income to Adjusted Net Income---Continuing Operations
(Unaudited)
Quarter Ended
June 30,
Quarter Ended
September 30,
Quarter Ended
December 31,
Quater Ended
March 31,
Quarter Ended
June 30,
Quarter Ended
September 30,
(in thousands, except share data) 2016 2016 2016 2017 2017 2017
GAAP Net Income from Continuing Operations 5,266$ 7,354$ 1,859$ 3,322$ 10,287$ 9,150$
Adjusting items:
Asset Impairment - - 80 142 - -
CFO Transition 1,847 20 - - - -
Consulting projects 321 196 253 297 - -
Transaction and integration costs - - - 279 - 71
Discrete Tax Provision & Other 538 368 1,402 477 - 265
Estimated Reserve for Excess Inventory - 261 - - - -
Restructuring & realignment 782 - 1,335 2,235 720 88
Adjusted Net Income from Continuing Operations 8,754$ 8,199$ 4,929$ 6,752$ 11,007$ 9,574$
GAAP Diluted income per common share from Continuing operations 0.33$ 0.47$ 0.12$ 0.21$ 0.65$ 0.57$
Adjusting items:
Asset Impairment - - 0.01 0.01 - -
CFO Transition 0.12 0.00 - - - -
Consulting projects 0.02 0.01 0.02 0.02 - -
Transaction and integration costs - - - 0.01 - 0.00
Discrete Tax Provision & Other 0.03 0.02 0.09 0.03 - 0.02
Estimated Reserve for Excess Inventory - 0.02 - - - -
Restructuring & realignment 0.05 - 0.08 0.14 0.05 0.01
Adjusted Earnings per diluted common share from Continuing Operations 0.55$ 0.52$ 0.31$ 0.42$ 0.70$ 0.60$
CSW Industrials, Inc.
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income
(Unaudited)
For the Quarter Ended June 30, 2016
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 43,475 $ 31,368 $ 21 $ 74,864
Operating Income $ 10,607 $ 4,443 $ (5,967) $ 9,083
Adjusting items:
CFO Transition - - 2,841 2,841
Consulting projects 61 89 344 494
Restructuring & realignment 90 992 - 1,082
Adjusted Operating Income $ 10,758 $ 5,524 $ (2,782) $ 13,500
For the Quarter Ended September 30, 2016
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 41,858 $ 29,034 $ 22 $ 70,914
Operating Income $ 9,897 $ 5,167 $ (2,544) $ 12,520
Adjusting items:
CFO Transition - - 31 31
Consulting projects 23 23 257 303
Estimated Reserve for Excess Inventory 17 387 - 404
Adjusted Operating Income $ 9,937 $ 5,577 $ (2,256) $ 13,258
For the Quarter Ended December 31, 2016
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 31,715 $ 33,498 $ 44 $ 65,257
Operating Income $ 3,978 $ 3,099 $ (1,951) $ 5,126
Adjusting items:
Asset Impairment 124 - - 124
Consulting projects 191 146 54 391
Restructuring & realignment - 2,063 - 2,063
Adjusted Operating Income $ 4,293 $ 5,308 $ (1,897) $ 7,704
For the Quarter Ended March 31, 2017
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 41,605 $ 34,817 $ 3 $ 76,425
Operating Income $ 8,411 $ 799 $ (2,813) $ 6,397
Adjusting items:
Asset Impairment 13 207 - 220
Consulting projects 96 336 27 459
Transaction and integration costs 431 - - 431
Restructuring & realignment 624 2,830 - 3,454
Adjusted Operating Income $ 9,575 $ 4,172 $ (2,786) $ 10,961
For the Quarter Ended June 30, 2017
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 53,261 $ 36,036 $ 2 $ 89,299
Operating Income $ 13,633 $ 5,641 $ (2,271) $ 17,003
Adjusting items:
Restructuring & realignment 232 876 - 1,108
Adjusted Operating Income $ 13,865 $ 6,517 $ (2,271) $ 18,111
For the Quarter Ended September 30, 2017
(in thousands)
Industrial
Products
Specialty
Chemicals
Corporate and
Other
Consolidated
Continuing
Operations
Revenues, net $ 48,487 $ 35,936 $ (1) $ 84,422
Operating Income $ 12,280 $ 5,428 $ (2,809) $ 14,899
Adjusting items:
Discrete Tax Provision & Other 110 - - 110
Restructuring & realignment 135 - - 135
Adjusted Operating Income $ 12,525 $ 5,428 $ (2,809) $ 15,144