CSWI - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to the CSW Industrials' First Quarter 2020 Earnings Call. [Operator Instructions] As a reminder this conference is now being recorded. It is now my pleasure to introduce your host, Mr. Tom Cook. Mr. begin. may you Cook,

Tom Cook

Good quarter and XXXX Gerry. Industrials to fiscal first earnings morning you, welcome everyone CSW Thank call.

Branning, Joining Chief me Financial Gregg Executive Armes, Officer. Chief Officer of today CSW Industrials; are Joseph and

earnings the www.cswindustrials.com. the access today's the how at is call received not be call release. you've release, is and our This replay available A recorded. in to available replay earnings it being will are website on of of If details

Form are Actual statements on be to of making materially earnings forward-looking and today's We any forward-looking this that current call differ in any in During in our Factors we update assumptions These expectations call, the will XX-K comments various statements. risks results do duty because filings based are to subject discussed Risk on and of factors and the uncertainties. could with not during release, other the undertake SEC. this and section statements. report made annual

operating analysis computed be used earnings financial This measures GAAP. income, substitute should operating These measures call supplement non-GAAP will non-GAAP and adjusted share with of and are an also net for performance. of as per per income, which income income in include and share, accordance a not to earnings a net

For share, income of see a more adjusted per complete net and our earnings discussion operating income, earnings release.

Chairman like I call Executive Chief and our Joe turn Officer, would Joe? to to now over Armes. the

Joseph Armes

a the fiscal off end for for by then a our followed results call closer you to Thank remarks, the high our thank our of markets. hand QX look call. a level you, discussion for I segment of will Tom. morning Good at Gregg begin the and level numbers. joining conference I will with and review quarter

increase off is million to $XXX.X which revenue $X.X XX.X% fiscal as Our consolidated was to million a organic. of saw year-over-year, start, our we strong year

growth helped we this and see drive across markets end to experienced continue quarter. the results widespread We the we serve

per sales, leverage and $X.XX was benefits which of of prior expansion actions an Especially adjusted diluted to increase share, the margin achieved which earnings This efficiency reflect we XX.X% from Our on took was continued initiatives over margin due continues first the quarter year. was this marked business strategic the that year. strength on operating to initiatives. Specialty our sales Chemicals and benefits the notable in leverage our last growth quarter

like focus organic to would investment. capital I and Next, allocation on

a product product As discussed, we have will range X.XX% previously introductions. in new increased X.XX% sales, capital help to portfolio to through fiscal our our diversify we and spending of which XXXX of enhance

initiative, for We success seeing enhance customers this are ability and products best-in-class needs. early of to leverage serve their internal our offering already add channels distribution value our which to through will our further

into strengthened end to our Metals and geographic and fold HVAC/R in which announced of breadth products market Moving the Research markets. to positioning MSD Industrial April, of segment, coverage Petersen exploited product and our the Products M&A, acquisitions in building we our offerings, increased our

past We reflects integrate have results two significant time within both and years, acquisitions. of and fact Industrial the are the Chemicals delivered both the with our that to support by talent we This over these pleased and spent upgrading Specialty infrastructure initial Products businesses.

stronger both opportunities believe hurdle segments position the As now company rates meet of a in internal execute that for we our are a result, much that potential returns. on to risk-adjusted

to quarterly on dividend declared our payable shareholders, $X.XXX July cash July XX. record shareholders to of share, August per second return the which of in on of to Moving is we XX

risk capital to on the for dividend to the share per returns $X.XX stock of continue we full available. will just a indicates year, adjusted the X% yield. rate shy highest a quarterly This Overall, direct

past range few actions allocate across us investment to flow in strategic part capacity the we strategies allocation over ample our capital to Furthermore, give position, is and a execute cash on to capital years. allows the strengthened flexibility cash of of debt the Our available profile and due us. options us have revolver variety minimal taken to

Moving business sales almost up to Higher for resulted volume sales quarter. mainly million. from the and increased our related our were of revenue in XX% Industrial in performance, acquisition Products segment HVAC/R $X.X revenue

businesses of we ahead While quarter which with into our one performance only essentially are we of is Research pleased expectations. the original our are of ownership and Petersen, MSD very far, both thus

in building lumpy integration with the and businesses weather. and construction labor of that remind based Peterson's our have to Products distributor MSD on products been cross-selling The commercial our We've of is teams products. Petersen team business completed specified well. integration progressing want allow We the investors Industrial order availability for commercial trained be architecturally to can flow,

As a the of quarter, easier period comparable while tougher in have we quarter first period to expect result, experienced second an fiscal we a comparable in XXXX. the

in have came at we operating compared XX.X% Segment the sales income of $XX million to in that do the will the further in strong on remained Margin year. modest, quarter sales. margin opportunity improvement level for prior incremental leverage or be adjusted performance added of or while $XX.X million and we believe XX.X% sales expansion through

end prior Specialty segment of posted markets. by increased across performance to year. sales volumes the first the increased rail, specified Growth building our segment, the highlight Chemicals of benefits top architecturally we line demonstrating operating initiatives. leverage reflected period years' mining quarter $XX and improvement million, of prior level XX% the basis Adjusted Turning X.X% year over sales of was and the efficiency operating were products up on in sales energy, a the point margins prior against and XXX driven

believe the leverage we sales. further moreover, business the the have margin optimize segment basis, still levels our On incrementally a room and for with structure and sustainable to increased mid-teen are go-forward cost we

growth, overall, see outpacing to still enhanced our across Now markets, continue the the see serve. turning to and go-to-market solid HVAC/R end to by In plumbing, introductions strategies. product our demand product still markets strength end markets, are and end we driven and we observing we offerings for expect new

housing bidding base stronger a to new acquisition is market the not the to architecturally on by of barometer diversity in repair as opportunity. serve a correlated and we provide this categories end of Petersen building represents reminder, as of exposure. as and cross a Guard, part the driven increased starts believe a us continue macro additional from with product and the strong see in serves market in and are larger offerings which help insulation In specified We activity level selling portion remodel demand Smoke for combined As that products, we opportunities, installed Balco Greco. of our

uncertainties. Canada, our sales weakness edged quarter the up commodity in geopolitical volumes Despite some up energy, were as to slightly. rig Moving prices increased the during quarter given in count

follows consists In our rail which and rail primarily for quarter. traffic, business, track we growth second lubricants strong saw consecutive and side generally the applicators of

this due XXXX. Some and To an would as on business growth quarter, of was of this that volatile generally end, based mentioned and throughout weather. is growth quarter-to-quarter a varies last to changeover is type annualized and basis. modest of growth fiscal anticipate But more we GDP result on lubricants macro business seasonal a forecast,

to end grew in the our Finally, it quarter markets, of demand general in industrial excess GDP. continued as be positive in first

by but end industrial reported pleased above market to monitor our we are as date, continue to industrial the for market with of peers We slowdown an signs performance.

of quarter. build driver to during a fiscal and still first strong on we for the and health start the us marketplace. to a well to To positioned momentum priority generated remains markets conclude, continue primary end the off our see are We win our in and growth is opportunities. XXXX the opportunities to across market Execution

value. optimize business continual these We improvements in continually will we margin to drive operations where the all expansion and make expect long-term cash efforts our further a we on enhance drive both We segments believe to additional further our and business basis. free of flow evaluate the identify generation opportunities, can business and areas incremental shareholder

Gregg with look that a over closer I'll call turn Now to numbers. the the at for

Gregg Branning

Thank morning you, and Joe, everyone. good

Our revenue prior-year XX.X% XXXX of and $XXX.X fiscal quarter to the was $XX.X organic. million to this compared consolidated in during of million XXXX -- X.X% the growth period first increased

HVAC/R both by products, Specialty driven higher coupled markets, our and revenue with smaller end energy The the inorganic increases the increased mainly and Industrial building as in the in segments, rail, architecturally market well due from sales Products into increased mining end the was to sales specified volumes recent revenue Chemicals as acquisitions.

Looking at segment coupled volume Products result income, Industrial million, in revenue. revenue up XX.X% operating acquisition-related with our was our period. was was HVAC/R mainly segment increased prior of the The higher sales revenue year $XX.X in which level and over the revenue

As we normal the seasonality acquisitions of at see segment. look the are these this subject year, we to in the balance

we So, we exit the peak the moderate will of as contribution the season. expect

a as XX.X% a prior points income XXX operating to to the operating income improved percentage adjusted increased million, segment year. GAAP of Our XX.X%. increase basis Segment over sales $XX

margin results XX% incremental which pleased on the from are We from organic incremental fall through improvement volume. an higher to volume, the to see XX% largely

note adjustments in out will items onetime we had but gains that as sales have current last prior I year year. of facilities, we adjustments results, some the favorable the did result in which a primarily we of no year on called

period. prior-year to Specialty were higher over markets. income was X.X% $X.X products mining $X.X specified the architecturally driven Increased The volumes the end Chemicals by GAAP to the segment million million. of sales operating in segment building prior energy, increased rail, and $XX year revenue million compared period

XX% to improvement of to year, the as a compared initiatives prior-year anticipated This income XX.X%. last implemented operating period operating well on through basis volume. fall efficiency points the was XXX to incremental as the in XX% sales adjusted XX% organic Segment margin of related to percentage improved as

Industrial a last prior that sale in segment, favorable items gains Specialty our of some Chemicals results. adjustments onetime Just But we year facilities, year Product with the as had did I note adjustments in primarily on have we net I current out of called year. no mentioned as segment result which will we

the gross results move million, first fiscal to profit $XX.X prior our As increased we up quarter, our over to period. consolidated in XX.X% consolidated year the

compared prior prior Our the in year. net This year, one-time decrease impact of the gain gross on to primarily primarily that recur, to did not percentage sales. gross decreased the margin points sales in basis XX% XX.X% the of was XX margin the adjustments in a facility as

Consolidated expense operating sales acquisitions, costs decrease XX prior quarter by and level in year to or the with sales as increased of leverage, a XX.X% The million by million sales operating expenses or point of $XX.X was $XX.X offset basis associated personnel-related the compared partially percentage in driven of sales. XX.X% costs of were

the the was of adjustments prior $XX.X compared Consolidated which year. year $XX.X million, no quarter had from for year or XX.X% first operating sales XX.X%. of income million million sales $X.X or income, prior we When million income increase of to saw operating operating $XX.X the of XX.X% or current adjusted comparing to an

sales of a The to the XX.X% Fiscal leverage prior on XXX first point driven adjusted compared basis was quarter margin consolidated XX.X% was of margin operating and in sales sales, year of the operating margin operating by be increase. The June rate XX% of was we rate our initiatives. in continuing to efficiency now quarter on effective year prior operations range XX.X% fiscal tax XX, and XX%. XXXX tax effective for expect the XXXX to increase

the normalized $XX.X to in from the to $X.XX prior the year fiscal to or million per quarter rate income share a $XX million XX.X% in continuing net prior and year $XX in net $XX.X $X.XX adjusted items year income diluted or compared increased $X.XX in tax period. million to to Adjusted $X per share diluted increased one-time or operations continuing both diluted in period. Reported compared exclude from years, or per per share the operations million prior applying first diluted share

Moving the to in operations fiscal capital million compared result $X.X $XX.X first flow QX balance continuing decrease fiscal the of XXXX and working in increased was sheet, prior in increased operating support our sales. from cash to generation year cash The period. was our to million our quarter a

acquisitions. we facility, was flexibility with growth borrowing ample end fund as closed of the which capital balance quarter strategy capacity quarter allocation at our $XX.X us remaining million had million our our debt net $XXX.X revolving provides cash Our million and including on sheet. credit of to We on $XX.X

to I that Joe. call the turn will With back

Joseph Armes

and Gregg. very us for initiatives positions intend and We grow. solid Thanks. products to businesses serve in balance the offer help QX customers of XXXX. strong fiscal efficiency The to foundation best-in-class our results continue their our integration of our well fiscal and

all all of thank And through at of X% over this ownership colleagues CSW thank who take that, interest for and company. me opportunity to continued collectively our Industrials other Let questions. stock in shareholders own our their employee plan. operator, take company to support our we're of ready our now also With my

Operator

from Jon a First conducting question [Operator be ahead, CJS Securities. now is Tanwanteng, go question-and-answer We'll sir. you. Instructions] Thank session. Please

Jon Tanwanteng

gentlemen. strong results. questions you congrats Good my the on Thank morning, for taking and

Joseph Armes

Thanks Jon.

Gregg Branning

Jon. Thanks

Jon Tanwanteng

upgrade an HVAC does that played a starts? do does, have maybe to and how maintenance tied said expected that goes you legs, now that and you Has it's long Joe mentioned you housing for? How as for and -- it not on extended there that year is do that you out you think trend cycle. if

Joseph Armes

Yeah, John.

thinking primary maintenance, the really it's base those that us. base. all for replacement, about installed things Our around And repair, business grown, as a are installed has good

New installs But highly growth the are installed good we're as there. on the and well. focused really opportunities base

talked to initiatives addition and our about In go-to-market I strategies. kind our of enhanced what

efforts paying marketing some I our think off of we're, seen there. an -- in our sales nicely. upgrade we've of really That's professionalization and investment

grow believe, is cycle. to through to so, the And and resilient housing continue of all the we cycle business, and going be our notwithstanding that,

Jon Tanwanteng

can what side timing construction the or any stocking lumpy. pull see, Okay, can great. your then the push you either And architectural maybe whether sometimes know order side HVAC get ins customers. from or I from little you a from from outs

Joseph Armes

Yeah. been theme a We in a that absolutely quite you've to architecturally right bit. the see move some and specified products projects building that's heard did

shortage, I of each to that as project. that idiosyncratic just some as think some labor individual of

a play can weather got pushed to think right. there I some were they but in role the that, projects

quarter, this if you of I the between would of better lumpiness and at a that. say the that. year half less would look year, look first last really way quarter have the everybody year HVAC/R, recommend next that QX the On half tougher first comp be We some at goes the of easier look versus the you at there, can be half first might so to QX,

Jon Tanwanteng

Got it.

Spec and then Okay, it looks thank great. you Chems,

markets. You one look two, sales mid-to-high the margins reason ahead number markets, obviously operating was like driving your improvement touched and of across said you you market better. they're and on any not this; algorithm target, the slowing your down Industrials XX% I were think it's the The mid-teens did number why teens? What's

Joseph Armes

mid-to-high But some we will innovative it we products be time. really yeah, have have well, teens probably feel for Yeah, now. like we strong

marketing improved. better, I strategies our think again we are go-to-market have those

I growth into marketplace. end markets that, in We very the we're have in higher geographic thoughtful a and moved markets and for way winning think,

we most are US, or domestically outgrow those our And opportunities continue end end as where the would so can at expect we -- well. markets and there to markets the be and growth while markets we expect to least of we outside GDP those growth, higher are exploring

increased and But, volume volume continue increase be can see that yeah, question, and continue throughput as and will facility, there margins. no there's through to in story our drives our that but we'll we improvement to margins our the

Gregg Branning

seasonality that we that teens thing, we we quarter. why focused on other makes I else just where John remind reason The is, one segments. the it Spec difference we everyone seen it's last you I And both pronounced in given you've add, the mid-to-high more sense but in big is, as mid-teens makes finished would the think do have do volume the a and years, thing see as think The I'll that Obviously, the I in well. fiscal in industrial, Chem few in business. over QX

as margin volume so QX it will to that off in that And down. some pull seasonality, falls

Jon Tanwanteng

you Do being July see just in based great. that what heading August? sustained you're on seeing on this Okay, QX then business. you, and into Thank momentum and

Joseph Armes

we're the it's pleased -- so We in results we don't with and guidance, provide on early far but QX. very

we information at kind any not point, providing any we're to. because see don't of need this So cautionary

Jon Tanwanteng

What's acquisitions little obviously next great. look How pipeline better, you've two you initiated the done you to your opportunities. capital in a Do does year, just more look plan? the deployment, for see then this valuations finally Okay, And M&A? dividend. on do bit

Just more color on the whole process.

Joseph Armes

that to say front. lot wouldn't do I We're pleased that an the seeing John, and better had pipeline. changed, go I have more a opportunity opportunities. of think on I've through but recently, there Yeah, activity very is valuations very with that very, we're

be So I for a on going do capital strategy. that's think the to us allocation priority high

course. capital the over us We're and growth -- to acquisitions the above in to to the highest our and rate going of opportunities pleased going very to very proud we're contribution, two to that front adjusted risk we return of stay made small seemingly allocate were Otherwise, and organic. organic our to

over I So in acquisition long-term seemingly XXX the well of compounding basis think really, effect points really proves growth that. of from really the acquisitions and singles and two work just doubles, think you quarter the small of basis strategy a that would about

distribution I new the added to that on focused pipeline, continue our area. channels going see getting highly products focused and to we're acquisition in through highly we're to So acquisition, success think on

Gregg Branning

I from of focus is more to continuing the the that think Industrial probably that adding the so for other new thing key channel, standpoint our a businesses, our even is products on Products.

longer. been it Just have at that

And we doing to which so products will in new will about have and again causing there, with to for and the quarter, some a pay working little partners but able see are the really takes that leadership products, end, year. nice looking going capital investment job on -- launch we add capital. last higher consistently growth. off the this are they're of talked nice very It's our of that lot doesn't with But quarter organic a take that being to of we

Joseph Armes

capital we put I through that, channels quickly. And it to no that whatsoever. them just some distribute fine and can distribution our are too but mean Not we on a there point John, Yeah. takes products put

from complexity speak standpoint. attractive of. is to really really no are margins There The that

for profitable -- so it's And it's nicely really business us.

are going how to we be we continue in fill some be to to that distribution and been think agnostic and as exploit I channel. if So have respects -- and

line distribution our product above, growth MSD, opportunities new will leverage rate. whether the be like is going through through to it's product extensions drive and our and capital, with The innovative organic that. answer folks, it's channels that again, we to products that can whether it's other that's development distribution going flow of all Whether

Jon Tanwanteng

thanks great, Okay, lot a guys.

Joseph Armes

Thank you.

Operator

from Sidoti have & sir. go a Joe Mondillo, question We Company. Please ahead,

Joe Mondillo

Hi guys, good morning.

Joseph Armes

Good morning, Joe.

Joe Mondillo

I'm the number much normal of sort a contribution to it acquisition contribute acquisition. income how run just a the in quarter rate earnings. that of Number about revenue did and one, two, sort or terms of was operating either wondering

Gregg Branning

that and from I lumpiness revenue revenue, in Joe, say some of there is so Yes, this HVAC there. the of Gregg. is the standpoint obviously was that would part

You'll fiscal revenue slightly diminished see a number in QX.

So not it take I for with annualize it's the exceeded then profitable were accounting contributed of got significantly to the but and topline the and from fact off I from of wouldn't a out, the both number either just it, they you've they standpoint material and pleased not we them. the And two are going annualization the -- business but be they of line. and combined the the that standpoint bottom for acquisitions. nicely, them our profitability purchase -- on say both would expectations. very, starting very And were but given They

Joe Mondillo

you for And the D&A the realized quarter. Okay. that

rate in there that Just sort you is run that the quarter of terms in of or a the type good acquisition. D&A going one-time forward? Is sort stuff of any saw of

Joseph Armes

capital say. was lighter if you in only expenditures. run sales to rate our CapEx Yeah, any our thing the at forward, We X.X% will that's I only good type than of up no D&A, The surprise CapEx ended the depreciation particularly -- higher like side, of a quarter. guidance, the in of on going just would

it's simply out. it's uptick see D&A, little how you move needle, going flows of a -- the bit will but not because So just to in depreciation

Joe Mondillo

repeat you actually? guidance Could again the okay. Yeah, CapEx

Joseph Armes

between It's Yes. X.XX%... and X.XX%

Joe Mondillo

great. Okay,

Joseph Armes

projects development, Products products the the opportunities in buying the product and been to is increase by It's This developed. driven being our sale primarily Industrial area. new in is have Of equipment -- produce

Joe Mondillo

And what in? be category would Is HVAC that that something or else?

Gregg Branning

HVAC. in That's

Joe Mondillo

Okay.

look to business. How -- does believe sort wanted like have. been this the forward? So, I trending? going building that of for architecturally does that And I visibility what, you How products backlog-driven also backlog is ask a the how does of more about that that and

Gregg Branning

you up. John, well at time news quarterly fool we know one to a look at Yeah, on the that is really at backlog it don't it because It's just sheet, you in important as because, closely you. -- balance we point it build. and could good But Gregg. this backlog as can track is And as that the it look the like is basis a book

whereas you back not. the the primarily architecturally out is If Petersen acquisition because Metals it's the backlog, products, from MSD building specified

Even up backlog, the if to quarters. you acquired back four last the prior we still five over over up were are year and out

particularly to marketplace and customers and expect we're to well earlier, when expect positioned see be labor that continue growth. to to strength to Joe nice specified, we're still due from it people continually mentioned to can But, So comes projects, weather. in it caution will nice very lumpy there. see architecturally and the we shortages as bullish But due in our continued

Joe Mondillo

as directional with that? what economy construction How architectural it well numbers the of a you buildings you we've of the would does still even sort in very the -- there just On -- it slowing slowing Index. spending index in seen as and strong? seen in Billings any Have or is recognized characterize the basis you've non-resi given

Joseph Armes

is this And products point larger -- a building those we're some really quality negative again for macro delivering built commercial providing still backlog very think and our we not at have it. trends and the much our at for building say and size, given high execution is this and the frankly driver time customers, on been I'd our to than time us. so indexes strong Yeah, feeling it's and point now

are experiencing ourselves point of the those And so And softness. any at that pleased not for backlog, very our business in we're in with pleased the very businesses. with growth this

Gregg Branning

really comment. critical can a I soft execution. down we Joe's market, Yeah. Gregg is again, and think Execution this Joe. even we so of grow And to would still in echo because is

go when products go year building buildings of last architecturally you the the in -- customers, majority specified we've prior would over I thing a the calls tend into, into now, and look cycle. that late that the as go our The over -- they they to in building other at said the

in should so theory, some give notice. that we'll -- us advance And

So go use building built they're the contract, to in. the cetera. but be substantially The those -- we that's and and curtains track Once minute. to book, et the track curtains going so and smoke before building that and our why sales let's under backlog finish railings will do a building for got railings is build continue, we bookings why

sure we're executing. and me of to execution is we continue are see more well All to key it that make that to at prepped to important but as really bookings, slowdown because Joe is the the says strong we which mentioned, despite look thing

Joe Mondillo

you're you definitely, sure but if sure. sort that end have have any Also not talk consumption? you versus is about actual seeing HVAC. strength price you the Yeah, user sense and Thanks. Can in of volume what for the stocking channel visibility, then do versus of

Joseph Armes

Yeah.

it's short pretty But channel believe is on going work the through three right that the after know there a months don't we don't way out that Joe. fact, I you four long system. its months, summer's stocking cycle mean so to and quickly till begins there. Sometimes mean I

concerns like that anything So really we about about destocking stuffing later. the channel concerned have or don't or any

increases, have price, some why dramatically. taken respect growth to also being price with So up that's or we we moving see volume or volume but growth

years. we're think at I of has strategy a fruits think products premium over really enhanced really couple really, our really, really combination premium selling it's we're seeing the of last really now think the And and that So executing again, been and nice And both. I go-to-market well. prices of I

it's nice volume. So both a and combination price of

Gregg Branning

largely said price would past, we address and in increase. what seen on to margin price the that so has that been is tariffs And the you've our I reiterate pointed

diluted prices have in they've and we market we been because we along pass have. tariff, not premium been So due of that the accepted to products the the those

seen. So we haven't

most tariff biggest far that to the -- with out driver tariff recent those biggest And head question by there might announcements, be off we affect Volume for don't going us. the a announcements maybe just us. are is the to believe

already impacted were the have seen impact. that products seen Our by tariffs --

tariff shape so, And in in we're we think increases any good absent percent, there.

Joe Mondillo

Okay. be next question. I to my actually was going

Spec about that. based. would prices appreciate materials price segment? lot input talk At I guess maybe the cost What at your And they -- are materials. biggest So talk input a that that then or don't about could business, petroleum be I Chem would whole you we

Joseph Armes

is again petroleum oils, it's -- structure worry commodity driving a be that exposure for huge but the would it it have any business component. really base our Yeah, oil, cost based not don't there. we to about primary We have

had token on products. side, indicative And price is as the action think the that Products same increase so by Industrial we've of quality volume nice we a in and some our

our are received. price And increase. volume in see very for to with we the the pleased well been products And provide for -- so that that those we charge that market the way again, our we're our have going and price increases you value that we

Joe Mondillo

it but this year than And your working in the of like may great. have last it's cash Gregg, flow prepared right, me, then the in looks weaker base. capital and it sort ago, quarter. seemed All little, I was missed a a question from remarks,

address could you if that. wondering Just

Gregg Branning

for strong growth we're also sure, good receivables shape inventory our quarter, the in working to still make down right our were significantly Yeah, sure as We a Obviously, you're year it make primarily, we used capital. fiscal sales was were so to capital versus Working our the to absolutely have result up increased prior there. and was second up. of positioning were volume. where

around some in paying items payables will that off increase cash that an year-end -- use runs with liability rebuild. see and normal compensation turn did aspect side, We of accruals of the hand type items the in hand

XXXX. cash So we should fiscal in nice still growth 'XX over have

bit quarter. Just in a little of the a blip first

Joe Mondillo

perfect. Thanks a lot guys. Okay,

Gregg Branning

Sure.

Operator

back are Joe [Operator no the further Please go at floor to Armes sir. time. comments. over like ahead, closing this Instructions] to There for questions I'd turn

Joseph Armes

we thank of the quarter. with the And very Once for again, remainder pleased prospects much. had Great, year. the you a great we're very

you. Thank forward call. you for And us this thank joining doing for We this look quarter. next to so, again

Operator

teleconference. concludes today's This

and You time. you may a disconnect good for participation lines your your day. Thank this at have

CSW Industrials (CSWI) 11 Aug 192020 Q1 Earnings call transcript