CSWI - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the CSW Industrials Fiscal First Quarter 2022 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Adrianne Griffin, Vice President of Investor Relations and Treasurer. Please go ahead.

Adrianne Griffin

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

of Investor Joining available are Perry, supplemental as site President website conjunction reportable our to to of resegmentation, in access our of and and our investor me the Officer our our www.cswindustrials.com. Financial Form at with earnings CSW on Executive today is and This Chief the replay website. earnings the new all portion today, release. Form and responsibility regarding Industrials; materials. resegmentation In X-K webcast Joseph release, Armes, market's our presentation information relaunched regarding and XX-Q We call operations opening on a James The Officer. Executive announcement, corporate the being and included and President segments, our includes Chief how we've expanded information Vice are issued newly products, designed Chairman, descriptions prior and well is as

will undertake Armes. the duty annual factors and not forward-looking our SEC. to call, During to in we expectations the XX-K as are factors differ this today update well as turn based of that on are any release I and earnings uncertainties. assumptions statements. report on subject over the statements. do forward-looking this because risk These now comments will risks call results could We made current and discussed Actual Form materially identified call, to and in other with during any the our filings various statements make Joe

Joseph Armes

joining you our Good Adrianne. conference call. thank you, Thank and for morning,

year. reporting XX% to revenue in earnings both share and XXXX last first our consolidated compared share We are growth to extraordinarily fiscal fiscal of as nearly per quarter adjusted results, the first pleased quarter

top acquisition. bringing products $XX.X growth was XX.X% team's or our or increasing share TRUaire and I $XX.X to of a management wallet intense market significant to team we our growth specifically $XX.X our can growth revenue market margin. in chains, Our growth, organic of outperforming best To to the our returned every customers' organic from that by driven growth or that was the was like this ago, of total XX.X% inventory, XXXX. highlight focus fiscal fiscal of we line XX.X% years quarter's inorganic compare This needs, the understanding and market. we end first quarter significance also by which active and in supply underscore industry magnitude our to the million would serve, and our delivered share X million results in the our of outcome growth, tremendous HVAC on our investment million

million revenue. organic or $XX that XX.X% of million Accordingly, including in we or growth For $XX.X period, XX.X%, reported quarter total million fiscal of fiscal represents over XXXX. XXXX $XXX.X first growth

Our this compared nearly and of representing years year ago. X adjusted EBITDA quarter XX% XXX% growth as to was to growth million, compared $XX.X last

Our the of EBITDA last X XX.X% quarter an first profitability strong margin years. XX.X%, remained of each of in fiscal and with the adjusted XX.X%

per the of earnings $X.XX the growth CSWI which reported growth of share XX% is adjusted fiscal $X.XX we share quarterly reporting attributable in XX.X% over over prior also the are We first and period in quarter to year per $X.XX, XXXX.

While satisfied. quarterly very are strong we're with not pleased we results, consolidated our

made the and wanted to the respond provide and establish and swiftly quarters, and will continue of address end to across have our of markets full over any X we in where manufacturing to Since executing robust region we are exceeding all plan. are integration areas products and to underperformance. recently demand The and of pursuit and manner we our had actively the operational assess occurred TRUaire resolve owned closing, our the TRUaire restrictions. our commitment enhanced phases for we operation is financial our now profitability next strong, results placed to organization, is for when under our business. Vietnam, the serve Commercial expectation operational acquire decision COVID-XX performance we located in we which diligent The was expectations the after promptly Our that integration TRUaire excellence, updates. outperforming of we we

We at and satisfy actions products health, with Production manufacturing can while the and this is that our reduced ensure focused of demand. appropriate facility welfare help operations have taken are our levels we COVID to safety protocols, the employees. continue currently on highest protecting to

average Last reduced week, an the For of context, XX production we XX the in to week prior we a Vietnam levels, containers. shipped recent containers shipped to from States. the weeks United

We are plan. operational continuing with our current

the and prepared U.S. we inventory foreseeable anticipate are this disruption. closely to demand sufficient respond our monitoring We are period through for the meet centers be further any in production distribution to that plan with to on in customer future. our situation restriction focused hand will conjunction However,

of established CSWI steadfast guiding results articulated, measures on customers, communities our and the shareholders, are our around our the Our which addressing team early commitment sound in of our we outcomes we our fiscal previously aspects members objectives have of focused efforts. that an sustainability in our the right team We by in manner the quarter first to the ongoing team and globe. the members, by corporate solutions fiscal to executed months demonstrated many benefit reflect our year, last leadership were remain

communicates XXXX, quarters, metric treat of At was insight TRIR X our Recordable we to Over was into first we through metrics end over an guiding our TRIR. X.X, which In specific on the of improved filed year-over-year. the calendar our meaningful Incident our calendar improvements shared several our XXXX. that or objective have effectiveness statement, employees calendar And continued provide Rate, well. of X.X, XXXX, recently proxy focus our important was past that months the demonstrated the safety, Total TRIR shared

attend awarded fund established CSWI This years university. X and dependents X-year generation to a were scholarship our who has recent a and recently of our to XX proud XX total ago technical we those of of first date, company's $XXX,XXX these total be our pursue We're family's future. scholarships $XX,XXX students team and or further awarded Recipients education. XX% announced of to X must Additionally, assistance recipients a recipients college of was scholarship in CSWI very or Of to to Returning students. a in post-secondary the are their the their of members education. investment their results. XXXX

served, general serve guiding of the the global to inventory health in quarter's channel was address capacity price not benefit is we the and actions actions correlates fiscal all with to the which To our results certain first therefore, price were These outstanding some at markets materials, for products reflect improvement economy. points various and in price across end profitability. and inflation full segments end of through in protect during our do in sell-through, quarter our quarter, well, objective, markets this Our in implemented ongoing resulting Demand compression demonstrated revenue actions, strong took growth. and commodities customers freight another served. those restocking the margin the

actions monitoring quarter, further needed of place to since impact actions realized if and determine protect and is profitability. have pricing ongoing cumulative continue fiscal first the the inflation end cost taken action pricing we closely of to the Additional

lead product performing discussing, While have we across we and significantly guiding indicates reflective others and the same competitors chain customer concurrent I'll our service of the are on to best-in-class results. premium than qualitative managing turn effectively. James a the will look we continue that inflation. data believe our price over markets time, address better call James? product manage We supply to time availability end for with are At supply chains that are we availability that closer that our at and provide serve, a to constraints appropriately we segment this objective

James Perry

Thank we our and and our disclosed Earlier to our good supplemental morning, information this a announced reportable earnings a historical also reflect of X-K realignment you, new morning, Joe, reportable segments. filed our segments, strategic we recast XX-Q as release, segment providing quarterly in and Form Form everyone.

leadership segments the reviews business and our in a clearer resegmentation in businesses formation of of Shell the joint Following was of more the Board appropriate team reflect our the acquisition picture reportable to the our to CSWI it Directors with manner with X and organized of consultation of performance this of our which We JV. TRUaire feel venture investors with Lubricants, determined allocates various team formation now Whitmore clearly provides is realign our and leadership our into capital. the after performance the the acquisition segments.

which our RectorSeal commercial of applications. predominantly TRUaire products, businesses, well-known value-adding comprised and residential and is mainly for segment targeting plumbing HVAC/R the are and Solutions Contractor Our

aesthetically and products, safety pleasing businesses, focused our and comprised Our Solutions Greco modernization that multifamily of engineered to for residential are commercial, Engineered provide provide segment buildings. institutional Balco, construction, is which the Building life of on code-driven refurbishment and solutions Smoke Guard primarily

business our of assets Shell is Our and third markets. and rail Specialized Whitmore which the provide in and of lifespan segment primarily end the Reliability Whitmore general joint performance the Solutions, that energy, critical mining reliability, enhance products industrial, venture, comprised

markets correlation performance. Given segments we between enhanced our and the will to improved believe have our reportable served, end the investors clarity understand

appropriately market We these provide will updates within sales the on will as reflected end quantitative results. be segment no longer directly

we are venture. the note financial are have select reported our in into a The results of financial financials reporting on to this CSWI, which quarter item in the consolidated fiscal fully is venture we basis CSWI. and joint is to Whitmore attributable Another results This quarter. first information the that joint

net attributable results income attributable interest. clarity, noncontrolling the the these exclude For to

presentation the structure website, and reporting. joint opening As it, Adrianne our the available website venture in mentioned our new on investor new reflects found is with and along incremental this quarterly remarks, segment

a $XX.X Adjusted our to shorter in revenue into marketing the quarter in of prior our implemented Engineered and quarter. segment to efforts ability sales and million, quarter or inorganic have during revenue have XX.X% first initiatives increase million Pricing million that sales XXXX, period. In year to a quarter compared this XX.X% Solutions from million, the fiscal of $X.X revenue XX.X% segment growth Solutions the enhanced building contributed from was Specialized in segment from continued $XX.X which Contractor for increased year a prior million of revenue, HVAC/R, fiscal of market. EBITDA and of of with end to to of from fiscal Contractor million these shift of revenue driven revenue or architecturally $XXX.X during $XX.X the each Many Reliability segment XXX% XX.X% Solutions Building and products. was Solutions. pricing principally million XXXX, nonresidential specified or revenue. with promote first products. increases first markets, plumbing the Building despite XX.X% Our been compared margin a TRUaire fourth and $XX XXXX. Segment $XXX.X to $X.X the Solutions, EBITDA of products was in million, they newly The year developed the revenue cycle, from Engineered sales segment $XX.X the prior $X.X the plus this began existing million construction period period. million by million in lower-margin or increased period to consolidated $XX.X from increased $XX.X contracting prior year million to second quarter consolidated compared worth growth XX% of was accounted period due to due the the and organic drop to XXXX a increase segment million in revenue to XX.X% due fiscal was decrease prior fiscal year projects higher $X.X the

ramp the of period $X.X from segment ratio and general increase revenue sales was quarters EBITDA or the X. effectiveness up is book-to-bill energy markets. contributed of approximately was the end and the to Segment as due initiatives. to first below quarters fiscal volumes quarter due a quarter, expected leading growing to the $XX.X year into to X of industrial recently Reliability Specialized income the for future which year continue growth flat this million, the accelerating we in XX.X% the The of end prior production, more just supply $XX are freight mostly million, and quickly trailing Solutions as prior our As period revenue, than market. JV million expenses accelerated of was increased material X.X% in the we pricing implemented

the year was the arrived representing confident While half that accelerating quarter improved expectation the volumes. million, prior of from inventory are final million, the new in from gross effect the this in to we segment in of million pricing exclude that end segment, JV gross resulting TRUaire results period. XX% margin of period, accounting $XX.X to remain first with improving value million to $X.X the market an the acquisition gross from due compared the in $XX.X June increased Adjusted in predominantly year in sales growth of up, Consolidated in resulting purchase disappointed prior we the profit the back and conditions, the growth from profit $XX.X and instituted incremental organic XX% step profit in profit year XX.X% adjusted already has profitability was fiscal increases. the leadership TRUaire

increased and that increased the operating incremental margin expenses primarily Adjusted previously, gross XX.X% income material the as profit in as EBITDA in a the to $XX.X XXX.X% price instituted markets in as decline of the in Adjusted mentioned revenue and and the million fiscal no the diluted $XX.X increase fiscal inclusion $X.XX was XX.X% $X.XX XX.X% adjusted had of million TRUaire percent year increases final in quarter in end and our was to outpaced million a margin increase and share first As prior million a million income $XX Adjusted related ended million adjustments. Reported exclude XXXX $XX.X period, consolidated purchase was to year inflation prior to business EBITDA to prior year from which million, or due $XX.X accounting cash attributable representing consolidated freight to period. adjusted $X.XX costs to $XX.X XXX period. of over well Transitioning million, net to in to consolidated some in TRUaire operations by diluted point first prior XX.X% margin the effect, served. basis equating period. $XX attributable operating was $XX strength year of flow periods, quarter to balance per Adjusted compared cash XX.X% current over income net share. or the prior to increased the CSWI from sheet. income respectively. CSWI We a with or the our the per of

outstanding revolving the by $XXX fiscal of reduced the approximately the amount quarter. under resulting million $XX During our of as $XXX in availability end of we quarter, million, credit first facility million the

tax As of X.Xx. X.Xx our of range of for the in allocation within as than well company's These less metrics The continues tax call fiscal With quarter for that, turn the and to expect for leave quarter-end, our XX.X% a positioned our allocation leverage a fiscal now XX% the effective the capital company was Joe. back to was rate well us on XXXX. X.Xx, the first rate continued GAAP stated basis, to ratio year capital strategy. I'll outlined

Joseph Armes

we colleagues long-term to outstanding My how say "At matters." shareholder me James. an these to you, stewards hear quarter Thank of this commitment of often: delivering capital of our good our first be achieving CSWI, represents your and value. outcome consolidated And succeed results goal

EBITDA price acquisition, was Our fueled Consolidated were margins and outstanding this fiscal today. revenue from during quarter TRUaire growth growth the from protected by organic contributions the first we've volume inflation. discussed actions

to expect rate from year, of remainder that rate of look months XX% we growth in this decline our we comparisons continue the performance quarter-over-quarter the as year-over-year will quarter fiscal strong the and further of expect last year difficult. future we fiscal necessarily the growth X more XXXX quarterly ahead this make As realized to growth

quarter growth, TRUaire TRUaire As year, the be of acquired contributions accordingly, consistent we drivers our in how revenue prior remind of we we fiscal XXXX. included that remainder we've treated consider XX, everyone And in December expected fourth fiscal on the the acquisitions. will all organic growth with

will primarily seasonally quarter expect third industry. in due the HVAC/R to We to lowest the fiscal the reduced be our continue that quarter spend revenue

in materials could headwinds impact pricing in raw to While and profitability, modestly. timing we short-term managing protect margins the freight differences are proactively

moment Quinn, the to strength remarks, profitability I'd since of end the nearly And we Bill of my open opening CSWI team years consistently like health across the of questions, performance who the we leadership thank has ago. on in all are optimistic improving take Board with but to our commented we organization. not the of satisfied are this return the segments, for Directors I to our serve about markets we served our As our founding, long-term of of line today and before X to

strong of As the We for highest meeting me, missed. and age later a on other governance serve this mandatory and conclude. be Chair standards, part our to a a I he directors. service Board. of for mentor influential his Bill's him leadership Board Committee organization. our serve commitment to boards as shareholders contributions wish the his presence indispensable member has retirement will On his of like as to annual And thank personal Audit a in after very Bill as of have on continues our sorely him to will of we month, provided wise thoughtful, our decisive note, to our has and community. and Bill our best been would

to like close all support do who X% in our great company their our questions. as a ready own interest colleagues of my plan job, stock through and and of of of here to I'd such now as we're always, for our ownership As at by employee With take collectively shareholders company. operator, all CSWI, that, thanking continued our well

Operator

Instructions]. [Operator

from first from Jon comes The CJS question Securities. Tanwanteng

Jonathan Tanwanteng

levels? any able inventory that. on share are to in a seems being table current leave Congratulations just -- was you the I And at commentary not little competitors demand and for expecting from great. for regain quarters? bit My revenue many meet TRUaire on for really that to supply to out potentially concerning. or question near-term regarding do how wondering Vietnam you TRUaire, days first of have is Really,

James Perry

record $X.XX and of I The kind happy is pleased Yes, us adjusted the the nice earnings for Thanks Jon, appreciate the James. Very that, very words. a is and quarter. for with this with remarks.

and done aware weeks, we over done team employees one, doing we've is coming there. see we all, were say, sure last investors news of mention wanted have Health about we as over much. couple a you the over is of Vietnam, the let you The me, As reduced each have, and yes, not week, necessarily loads container What I'll the the staff priority and of safety that that be reduction in job. with we job our a that. great we've things. the our there. That's to with of far as situation talked first X there, and and the tremendous

demand, We know are are those on in We products moving which Joe products the fastest focused as the mentioned. highly products. highest

of recall, company. I analysis containers from you some to announced high more even over job fact, TRUaire states and moving again, that mean taken a TRUaire Solutions of We've strategic to those may the be and that a already in did in a calls, moving we But those a being focused soon. be advantage meet this. and do We here we're company dive product level see earnings by not a we and the in about to quickly. coming talked, couple keep than the more the what's highest several, TRUaire we every a don't And team we months As extra inventory. in Jon, tack investment. being talked did with really over same those products customers. of of of anytime us about the to parts on quarters' in that acquisition few can so highest some week. other required inventory, result, the when inventory that when bought of specifically, At as the days, had Contractor these and the able high a carrying very problem got We've a in RectorSeal customer issues demand good little we've last We they several, hold of that We for deep the and pretty in inventory a containers products. is coming safe getting level

inventory. for much able look hard for products the to several Not meet being very of those than about customer demand many So companies we months. months that. next feel to several further talk about good It's

table about to being little So extra ship think, advantage we'll of having to we over quarters, in to here, If that this don't us, But being to were see coming already continue on situations to-date, left revenue talk product an anytime soon. is bit the that. market. able change we in

Jonathan Tanwanteng

Got it. to hear. That's comforting

was this want over from specifically, would I trends. if And just forward or if I order safety I sometimes. in comment your people environment, you than you anything Second, stock demonstrated. think demand wondering distributors as could know normal, pulled I And sometimes you overstock more QX. or on restock think

So continued And of that true so, are are from seeing you if strength? basis? what wondering, inventory demand the versus components I'm demand a

James Perry

you the were the outperformed a and high I and comp. what are we're not have may there in very key team orders the we that's great few our Yes, get like that terms out very that know watch a of be OEM door. comps efforts, inventory, get well. market testament the very, OEMs the availability a other starting produce little closely sales are and We for the the question and with There of that's Jon. of, doing, a very I report, out products us. really commercial doing, kind rates perfect to generally those closely And question think, in things, to the distributors side you that. and distributors. pleased about, equilibrium Sure, a last with quarter. this of those very And a sell-through Obviously, we and an space, the publicly that, although watch that, it's HVAC see rates to deceleration these of But talked the of what

watch very we of starting half a good pull second and year, that quarter quarter the selling this As there publish sell-through the our closely forward half again, ended We're that quarter they're feel third other institutions the at there. strong. still up to tough until of you Last always Joe is and It's is distributors very kind that very a our couple the demand. we what back that, had good. of get us rates quarter demand talked year-over-year side, on year, the harder about, were first again. tell are because hard out the about last get But know well buying. comps We

feel demand strong. there's bit, but forward. little pull still that the if So now is much Time we will a right not tell there's

Joseph Armes

And One Jon, larger of is to would building Joe. before much backlog we had I that is thing this add that that we quantities. haven't orders are in

And tried XX, ship so typically businesses that of there. out within backlogs XX, hours significant order an to XX have coming in, have we

is So point, we again, demand about not good at a really and feel this problem that.

Jonathan Tanwanteng

appreciate And as the improvements out ahead continued Got this you That's non-construction a continues bit on Or there basis, helpful. was I new Architectural it. segment I trough breaking be really little levels? expecting weaker? of for are go-forward you more to business is into a a these wondering structure.

James Perry

can easier Yes. new in for We're and the make over for think everybody, pleased things the historical segments time, And those you the able going segments. thanks X-K performance recognizing published. it's to that. to We to of see be present we

bit In a segment Balco, be that terms specifically of can Greco mix. with Guard, it Smoke and of

seeing in these businesses XXXX, what some having less a leads of businesses. construction. are of course, backlog these a a in in demand. sell, looks We downturn There is what commercial to like little That

and up, we're activity however, seeing, rebuild in backlogs to order up, bidding activity some are starting these. We

though, those, of a few about. we are always quarters Some as out, talk

held kind a air a about moving business, of talked little of -- the in products now, by business bit troughy some bit little are we've pocket right into getting businesses for the real a without of of specific while still these in and have Those So And term that's of side things. shorter commercial growth revenue margins nice business some well. businesses very products to year-over-year. up other the But the following nature. performing of really are what's nice are and and this

obviously, seems the pandemic, we'll because, downturn that. we're right, So lot in construction you're on But a continue there update coming out that commercial were a to the this projects hold. be seeing, of of put trends to year

fiscal that we're ramped orders that getting early completed those year projects are in of and up, be for and seeing next later Some into will this back year.

Joseph Armes

optimistic strongly that But about we are for Jon. business, XXXX fiscal

begin we're the half the setting see And up can back a already of so for here fiscal XXXX look we through nice in and year to there. year

Jonathan Tanwanteng

Okay. last And one then for me. Great.

pricing to Just in enough increase basis? margins a increases segment Reliability the are sequential the the on

Joseph Armes

of was say of a probably in was leadership timing that in feet the change through and getting price due that ground working increases. really things. of couple Part on I'll Yes. and to of kind the our That the business was latest the the the that.

contractual through. Some of to you've has relationships, and way its was got that backlog has business some it work it some

and a perspective. higher pretty some really bit us to price had increase get through You costs coming quickly, pricing it's taken offset from that time a to little of that margin

in. legs The and Solutions Reliability. back see well some that starts some there, So you Contractor really that quarter sea had going to to businesses -- really this kicking We're of degradation. our as I'll before we kind come and get of

was continues segment Specialized success early Building terms a a to headwind there. there For that as of Solutions Contractor and the Solutions the half do things quarter had able -- had to, and and Solutions, through as Engineered But of one, in during often of well. the of specifically in go now margins. we couple year. my say bit mentioned Number the Reliability a back I'd remarks,

in as general half that markets Looking picking end picking pricing in mining, having say, the the this will up through the middle the back in is through really nice of up. demand and all industrial, the is served of also business of demand I now the space, the the the energy the year. the current year, back quarter that spaces, half way see effect we rail, the a to increases little we're those

picking are volumes up. So

we numbers. because saw very we're year-over-year, lastly, to and then venture JV, some an better the leads is the absorption that we even some And the market, You in that accelerating that of quickly, ramping opportunity in mentioned the leaving joint and all have supply obviously, up the plant. to That fill demand.

have JV that well that that Jon, lot our us to And very one well, fill the investors a a reason most have worked for of and do know elegant very facility was nice and we very was You of capacity. very capacity.

organic demand, JV and year and good that have between of we think So going of is back next to quite be the year half fiscal opportunity and the year, into improvement demand back this certainly noticeable. have we the half expect margin fully to

Operator

Chris comes question Barrington from next The Howe from Research.

Chris Howe

timing and anything pressure may that this this far anything I we Jumping Reliability following price the not environment morning. quarter? this right that the to the in into it or about be as profit, it think as relates things point might here -- in if far But as the was have earlier. that how of can mentioned or may as segment. quarter And about you Juggling asked as pushing apologize as to orders talk out there increases, multiple you to might pressured the

So can you talk kind number? this expectation your is a into versus playing environment without of about quantifiable out getting just how

James Perry

James. is start, add and a that. I'll this Chris, will bit Joe little to

of first asked about The you timing orders. question

strong. mentioned I businesses unusual what some because some Joe ago a demand backlog in about backlog. than the I other has would been think We minute to, so have what nothing did our point of

backlogs. quarter, And in order those second the so that here quarter in first fiscal we see may our placed, of in maybe fiscal because the was revenue

We have and that where we shipment a the had good product of out couple when door. some of got that got lines come in and product we builds, relief

timing orders of would nothing So about that I terms this unusual other in talk quarter. than of that,

our need to Reliability for In mentioned I opportunity there, opportunity terms efforts geographies that need in to I the margin focus sales where Solutions earlier, capacity. in respect. best increases on we're which And pricing segment, our have as our Joe? opportunity have the think focus margin direction the to best products opportunity right and heading the and which focus we capacity, where to continue of we

Joseph Armes

Yes.

there's our a no this this, think I on said, late a highly available start. within protect business James the see laser have to And focus a as why the power reliability the management little won't pricing that's is of Everybody and commitment. profits. reason while, bit And focused on absolutely our team. we got we

James Perry

focused a clarify, next profit it just is ask I'll first mentioned really what couple of thing we're to times, one And question, and dollars. we've Chris, let your on is I'll you mention,

So which freight, excuse sure increase we're raw across or and covering freight materials, be goal first our as our cost me, increases, -- those to prices, labor. span we seaborne is airborne

cost have increases. those of All

Some of likely perspective. won't costs increases pricing likely least from relief, at will a down, congestion been freight our we won't. But as have dollar back over some go cover like something time those those to but some see costs

in protect As that beyond we the we can increase were market, to margin that, price percentage. able

record of headwind, percentage dollars, margin feel while see thus So earnings. mentioned, you bit as good about, we little year-over-year a those and very the may

Chris Howe

That's great question color. And it led me didn't to planned. I another have

at you we your mean, these look starts in some Is names opportunity market price? a words, an of other have give In about inflationary the good strained company it of position? I the or as to think carry you that given business. if brand not other of some loosen, we this for the price environment TRUaire, position As increases, market environment and areas take back this the to

Joseph Armes

on well, of Yes, respect be customers you're right principles. serving some perspective going one we're treating stickiness our customers guiding customers pricing. But our Chris, our some to take this long-term and that with our well is of think I a to there'll

And in is so either. being the environment approach overly not optimistic probably this right

but work to that a perspective. But long-term there's increases price to no So that, we're through take question stickiness them. some have going

cyclical, these we'll all and will there. of Some of how those these from it of come freight commodities, plays things They're see costs, some types down. out

Chris Howe

last many probably structure. your with It aren't capital But one And asked. companies been question. there has around

less a assume as kind being this a I that fully. have integrated competitive company. of TRUaire about environment is navigate from of making timing is and the But got perspective, sure than and we only you leverage You've sure turns. just would of it's growing, the your Surely, disciplined inorganic to X.X it's for ratio make pipeline growth

Joseph Armes

of more. Yes, key. free you I of discipline as really Chris, And a strong lot flow, nicely very, I is lot said, powder. agree very mean dry balance setting a couldn't up I cash we sheet, with think are

and demonstrated opportunity have waiting of was, being the the and decisive, then as track being record of We but disciplined opportunity. taking a TRUaire advantage for right

JV day. position a to to going the again, with we're great so And inorganic allocate value. capital price that in we're to of discipline the another shareholder we're for we're overpay, creates But passing and is the and the word going to getting growth be right day, every it sure it's the opportunities. not the We're So opportunity to integration are make right acquisition do that at to that. going going of to because closer looking TRUaire well, and

Chris Howe

you Thank for All the team right. great you quarter. Great. a to and

Operator

Mr. would over closing the question-and-answer like the to to Armes This conference concludes remarks. turn Joe I session. for any back

Joseph Armes

much doing I Yes. I to next your appreciate look in say you this just busy forward thank very And to quarter. interest know week. CSWI again us joining want it's for a and today.

So Take thank care. you.

Operator

This concludes call. today's conference

have your You may participating, Thank lines. you disconnect a for and pleasant day.

CSW Industrials (CSWI) 7 Aug 212022 Q1 Earnings call transcript