CSW Industrials Announces $75 Million Share Buyback Authorization; Details Capital Allocation Strategy
November 07 2018 - 8:00AM
CSW Industrials, Inc. (NASDAQ:CSWI), a diversified industrial
growth company with well-established, scalable platforms and domain
expertise across two segments: Industrial Products and Specialty
Chemicals, today announced the Board of Directors has authorized a
$75 million share repurchase program over a two-year period. To
date, the Company has repurchased approximately 656 thousand shares
and completed the current $35 million Board-authorized share
repurchase program implemented on November 11, 2016.
Under the program, shares may be repurchased
from time to time in the open market or in privately negotiated
transactions. All repurchases will be made at the Company’s
discretion, based on ongoing assessments of the business’ capital
allocation priorities, the market price of its common stock and
general market conditions. The Board of Directors has
established a two year time limit for the completion of the
repurchase program; however, the program may be extended in the
future or it may be limited or terminated at any time without
notice.
Formalized Capital Allocation
Strategy
As part of CSW Industrials’ ongoing strategic
planning with its Board of Directors, the Company also announced a
formalized capital allocation strategy.
Joseph Armes, Chief Executive Officer of CSW
Industrials, said, “We are very pleased to formalize our capital
allocation strategy, which will guide us as we remain focused on
maximizing shareholder returns on a risk adjusted basis. The
general framework of our broadly discussed capital allocation
principles remains unchanged, but we believe that articulating our
principles more formally adds incremental transparency and
accountability to our shareholders.”
Armes continued, “Additionally, with our
announcement of a new and increased share repurchase program, our
Board has expressed its confidence in the strength of our Company
and our strategy, as well as demonstrated its commitment to our
capital allocation principles.”
Stated Capital Allocation
Principles
CSW Industrials is committed to maintaining a
strong balance sheet with ample liquidity through both cash and
available credit to maximize growth opportunities, both organically
and inorganically. Capital allocation will be evaluated and
prioritized on a risk-adjusted returns basis as detailed below.
- Investment to support organic growth opportunities.
- Investment in inorganic growth opportunities:
- The Company will prioritize accretive, synergistic acquisitions
within its existing business units.
- The Company will also consider broader strategic opportunities
as appropriate.
- Return of excess free cash to stockholders as appropriate
through opportunistic share repurchases and dividends.
Through these efforts, the Company targets a
sustained leverage ratio of 3x total debt to EBITDA or less.
The Company believes that, over time, its capital
allocation priorities will prudently increase leverage from current
levels. Additionally, the Company retains the flexibility to
exceed the maximum sustained leverage ratio for a limited time to
support strategic investment opportunities.
About CSW IndustrialsCSWI is a
diversified industrial growth company with well-established,
scalable platforms and domain expertise across two segments:
Industrial Products and Specialty Chemicals. CSWI's broad portfolio
of leading products provides performance optimizing solutions to
its customers. CSWI's products include mechanical products for
heating, ventilation and air conditioning ("HVAC") and
refrigeration applications, sealants and high performance specialty
lubricants. Markets that CSWI serves include: HVAC, industrial,
rail, plumbing, architecturally-specified building products,
energy, mining and general industrial markets.
Investor contact:Michael Callahan, ICR(203)
682-8311Michael.Callahan@icrinc.com
CSW Industrials (NASDAQ:CSWI)
Historical Stock Chart
From Jun 2024 to Jul 2024
CSW Industrials (NASDAQ:CSWI)
Historical Stock Chart
From Jul 2023 to Jul 2024