Our Fiscal 2021 Performance


As we began fiscal 2021 amid the backdrop of the COVID-19 pandemic, a global recessionary environment and significant uncertainty within our served end markets, we articulated four guiding objectives: treating our employees well; serving our customers well; effectively managing our supply chains; and positioning the Company for sustainable, long-term success. With these objectives in mind, we began fiscal 2021 well positioned to successfully navigate near-term uncertainty with singular focus on emerging as an even stronger company.


I am proud to report that fiscal 2021 was, by many measures, our best year on record. Our achievements were enabled by the strength of our diversified business model, our team’s tireless work and dedication, and our continued strategic and disciplined allocation of capital. Not only did our sustainable business model demonstrate its strength and resilience, but with the support of our strong balance sheet, we executed on all aspects of our capital allocation strategy, including:


Investing in inorganic growth, including the $360 million acquisition of TRUaire and its leading portfolio of grilles, registers and diffusers for HVAC systems in December 2020;
Returning $15.4 million to stockholders through dividends and share repurchases; and
Investing $8.8 million in capital expenditures and forming the Shell & Whitmore Reliability Solutions joint venture just after the end of the fiscal year, all focused on fueling organic growth.



All these actions ultimately translated into impressive financial results, despite the unique challenges of the last year. Consolidated revenue from continuing operations increased 8.6% to $419.2 million. Adjusted operating income increased 9.6% to $72.8 million.


Adjusted net earnings from continuing operations were $51.0 million, or $3.37 per share, an increase of 5.3% on adjusted earnings per share from the prior year. All of this translated to impressive returns for our shareholders, with a total shareholder return of over 109% in fiscal 2021, and a total shareholder return of 204% over the last three years, as compared to Russell 2000 Index returns of 93.4% and 51.1%, respectively.


Throughout the year, our team continued to demonstrate a commitment to maintaining a conservative financial position, including a strong resilient balance sheet, ongoing access to capital, and ample liquidity. We ended fiscal 2021 with $10.1 million of cash on hand and delivered cash flow from operations of $66.3 million, even with the one-time transaction costs associated with growth investments during the year. Additionally, at year end our pro forma leverage ratio was 1.9x, and shortly after year end, we executed a new $400 million, five-year revolving credit facility to ensure continued ample liquidity. These actions further strengthened our balance sheet and provided ready access to capital for future growth opportunities.