Greetings and welcome to CSW Industrials' Second Quarter Fiscal 2018 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I’d now like to turn the conference over to Tom Cook with ICR. Mr. Cook, you may now begin.

Thank you, Rob. Good morning everyone and welcome to CSW Industrials’ fiscal second quarter investor call. Joining me today are Joseph Armes, Chief Executive Officer of CSW Industrials; Gregg Branning, Chief Financial Officer; and Christopher Mudd, Chief Operating Officer. If you have not received the earnings release, it is available on our website at www.cswindustrials.com. This call is being recorded and a replay of today’s call will be available. Details on how to access the replay are in the earnings release. During this call, we will be making 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 in today’s earnings release and the comments made during this call and in the Risk Factors section of 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. This call will also include an analysis of adjusted operating income, net income and earnings per share, which are non-GAAP financial measures of performance. These non-GAAP measures should be used as a supplement to, and not a substitute for, operating income, net income and earnings per share computed in accordance with GAAP. For a more complete discussion of adjusted operating income, net income and earnings per share, see our earnings release. I’d now like to turn the call over to our Chairman and Chief Executive Officer, Joe Armes. Joe?

Thank you, Tom. Good morning, everyone. Thank you for joining us on the call today. I would like to begin our call with a few highlights from the quarter and give an update on our end markets. Then, Gregg will take you through the numbers and Chris will discuss the operational highlights for the quarter. We are pleased to report that we've continued to build on the momentum of the first quarter and delivered another strong quarter growth in fiscal Q2 of 2018. This was despite a difficult backdrop for many of our colleagues who were located in Southeast Texas and were adversely affected by Hurricane Harvey. We're very grateful that none of our team members were seriously injured during the storm although several did experience property damage. Our company quickly pulled together to provide assistance. We've launched GoFundMe site to help support our affected employees which received contributions from folks associated with our company and externally. So, I want to thank everyone for their support and thank our team for their dedication, to their colleagues and to our business during this time. As a company we were fortunate that our facilities were not damaged by the storm, but we did lose some shipping days at our RectorSeal facility and experienced some logistical challenges in Texas and Florida. The overall impact of hurricanes Harvey and Irma to our consolidated results was limited to $2.6 million of estimated lost sales. Despite this, we were still able to post double-digit revenue growth for the quarter. Turning to our financial results for the quarter, we continued to demonstrate strong performance in Industrial Products and notable improvement in Specialty Chemicals, which together drove consolidated revenue growth of 12.8% to $90.4 million. In spite of the hurricanes, organic growth was 6% during the period and…

Thanks, Joe, and good morning everyone. Our consolidated revenue during the fiscal second quarter of 2018 increased 12.8% to $90.4 million compared to the prior year period of $80.1 million. Our consolidated organic growth was 6% and acquisitions contributed 6.8% to total growth. The increase in revenue was driven primarily by higher volumes in our energy and HVAC end markets as well as $5.4 million in acquisition related revenue. This was partially offset by $2.6 million of estimated lost sales from the effects of hurricanes Harvey and Irma as Joe commented earlier. Turning to our segment level revenue and operating income, Industrial Products segment revenue was $48.5 million compared to the prior year of $41.9 million. Higher revenue was primarily the result of strong sales in the HVAC coupled with $5.4 million of acquisition related revenue from Greco. Operating income increased to $12.3 million compared to the prior year of $9.9 million. And segment adjusted operating income increased 26% to $12.5 million compared to $9.9 million in the prior year. It was driven by increased sales and operating income from our Greco acquisition of $1.4 million. Coatings, Sealants & Adhesives segment revenue decreased to $21.4 million compared to the prior year of $23 million due to shipping delays associated with the Strathmore footprint consolidation project and continued softness in the rail end markets. Segment operating income was $0.3 million compared to the prior year operating loss of $1.6 million. Segment adjusted operating income was $2.2 million which was approximately flat when compared to the prior year period. In our Specialty Chemicals segment, revenue increased 34.6% to $20.5 million which was all organic compared to the prior year of $15.2 million. The increase was the result of our energy market -- was the result of our energy end markets improving its…

Thanks, Gregg, and good morning to everyone. As Joe and Gregg have highlighted, our results through the first half of our fiscal year have been very strong. Impart thanks to the maturing of several of our operational initiatives we've implemented across our businesses. I'd like to spend our time today providing an update on these initiatives and I'll begin with our internal acquisition integration capabilities. Into our commencement as an independent public company, we have been building and continuously refining our integration capabilities. I'm pleased to report that our recent acquisition of Greco has been one of our strongest inorganic performers in the first year of ownership with success attributable in part to a stronger set of integration tools that we have developed over the past few years particularly around our sales integration efforts. As you may recall, we restructured our architecturally specified building product sales team and through joint marketing efforts with Smoke Guard, we have seen very compelling results. In the second quarter, our Smoke Guard sales coordination efforts directly led to nearly a $1 million an incremental Greco close. As another highlight from the quarter, Greco was selected to supply exterior glass railings for Toronto's newest high rise residential towers on the shores of Lake Ontario, the Eau du Soleil Condos. This massive project includes more than 10 miles of railings and marks the largest awards in Greco's history, and it showcases the breadth, capacity and sophistication of this business. Notably, the design of the buildings includes two separate aluminum railing cosmetic features dubbed the [swoosh], one of which will be on the 46-story tower and another on the 66-story tower, which Greco will also be providing. One of the Greco's core competencies to win large scale contracts is its ability to supply product on the short…

Great, thanks Chris. I'd just like to say in closing that at the halfway point in fiscal 2018, we're very pleased with the progress we've made particularly as our internal initiatives to drive performance have begun to be reflected in our results. These improvements are supported by a generally positive macro backdrop across the end markets we serve, which positions us well to focus on execution and drive shareholder value. Let me take this opportunity to thank all of my colleagues at CSW Industrials as we continue to serve our customers and steward well the capital entrusted to us by our shareholders. Thank you for your interest in CSW Industrials. And operator, we're now ready to take questions.

Thank you. [Operator Instructions] Our first question is from the line of Liam Burke with B. Riley FBR. Please state your question.

Joe, the architectural business is typically pretty variable from quarter-to-quarter based on the project nature. Could you give us a sense on how it did outside as a standalone revenue contributor this quarter?

Revenue was relatively flat, but that was against our some really some quarters last year. And so, I would say that the business overall is very, very healthy. I think the variability is going to decline as we've added new products, and so we have added the Greco business to that, and so very, very pleased with the performance there.

And on the margin front, I know that Gregg highlighted the incremental revenue contributions from Greco. You had a nice operating margin step-up to year-over-year, that wasn't entirely Greco. Was there something else in there?

Greco contributed about 1.4 million of the increased margins. The rest of it was simply the leverage on the higher sales that we saw within industrial products.

And lastly on the R&D front, it looks like that you got a nice product pipeline. Chris, you highlighted the fact that you can [gen] these new products without significantly increasing your R&D to understand that, right?

Yes, I mean it's really the matter of Liam of just prioritizing and focusing our R&D resources on the right things. So what we've really done is prioritized organically internally developed the products and product enhancements over and above sort of any kind of really loose guys stepped up activities that been might be working on it. So we've got a number of things that we are excited about that are in the pipeline that would be coming into the market in the future, and we are able to do that with the existing resources we've got and it simply matter of just prioritizing and focusing on the right things.

I would echo what Chris said. We're not expecting and I wouldn’t factor in really any increasing cost per se. It's just reallocating resources to focus their priorities where it's going to best suite us.

Thank you. At this time, I'll turn the floor back to Joe Armes for further remarks.

Great, again thank you for joining us on the call today. Really appreciate your interest and we look forward to visiting with you again next quarter. Thank you.

Thank you. This will conclude today's conference. You may disconnect your lines at this time and have a wonderful day.