CSW Industrials board authorizes new $100M share repurchase program

CSWI announced its Board of Directors authorized a new $100 million share repurchase program, which replaces the existing $100 million program. Under the Company’s prior programs, the Company has repurchased 1.9 million shares to date. On May 18, 2021, CSWI entered into a five-year, $400 million Revolving Credit Facility agreement that contained a $150 million accordion feature. On December 15, 2022, the Company amended the Revolving Credit Facility to utilize a portion of the accordion feature, thus increasing the commitment from $400 million to $500 million, and concurrently reduced the available incremental accordion by a corresponding amount. The Company expects to employ the incremental commitment for general corporate purposes and to support its strategic growth initiatives. The additional commitment further bolsters liquidity and provides additional flexibility to execute the fiscal 2024 plan. 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 continue to prioritize accretive, synergistic acquisitions within its existing segments and end markets served. 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 1x to 3x total debt to EBITDA. The Company retains the flexibility to exceed the maximum sustained leverage ratio for a limited time to support strategic investment opportunities.