CSW Industrials, Inc. (NASDAQ:CSWI) Q1 2024 Earnings Conference Call August 3, 2023 10:00 AM ET

Company Participants

Alexa Huerta - Vice President, Investor Relations and Treasurer

Joseph Armes - Chairman, Chief Executive Officer and President

James Perry - Executive Vice President and Chief Financial Officer

Conference Call Participants

Lee Jagoda - CJS Securities

Alex Hantman - Sidoti & Company

Operator

Good day and welcome to the CSW Industrials First Quarter 2024 Earnings Conference Call. I am [indiscernible], the operator. Please note, this event is being recorded. I would now like to turn the conference over to Alexa Huerta, Vice President of Investor Relations and Treasurer. Please go ahead.

Alexa Huerta

Thank you, Andre. Good morning, everyone and welcome to the CSW Industrials fiscal 2024 first quarter earnings call. Joining me today is Joseph Armes, Chairman, Chief Executive Officer and President of CSW Industrials, and James Perry, Executive Vice President and Chief Financial Officer.

We issued our earnings release, updated Investor Relations presentation and Form 10-Q prior to the market’s opening today, which are available on the Investor portion of our website at www.cswindustrial.com. This call is being webcast and information on accessing the replay is included in the earnings release. During this call, we will make forward-looking statements. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Actual results could materially differ because of factors discussed today in our earnings release and the comments made during this call as well as the risk factors identified in our annual report on Form 10-K and other filings with the SEC. We do not undertake any duty to update any forward-looking statements.

I will now turn the call over to Joe.

Joseph Armes

Thank you, Alexa. Good morning, everyone, and thank you for joining our fiscal first quarter conference call. Once again, our team executed well in the face of headwinds in certain key markets. Our first quarter results reflect the tenacity, professionalism of our team members around the world. We are acutely focused on managing our costs, outperforming the categories we compete in and expanding our margins.

For the quarter, we are announcing many record results with our record first quarter revenue of $203 million, a record first quarter earnings per diluted share of $1.97 per share and our record first quarter EBITDA of $54 million. We also delivered impressive operating leverage as EBITDA grew by 10% on 2% growth in revenue. But potentially, our most impressive metric is record cash flow from operations of $50 million for the first quarter. This led to a pay-down of $43 million of borrowings under our revolving credit facility and the company ended the quarter with a balance of $210 million outstanding on our $500 million facility, allowing us to reduce our interest expense and maximize our potential to secure future opportunities as they arise.