Fiscal year 2021 was a record year for the Company, but also one that presented still ongoing challenges: rising input costs, supply chain disruptions, an increasingly competitive labor market and the lingering uncertainty of COVID-19. Our initiatives of managing cost structure, prioritizing customer and supplier relationships, and enacting strategic inventory builds — implemented in the prior year and continued through fiscal 2021 — allowed us to capitalize on global recovery trends that ultimately resulted in achieving all-time highs in revenue, net income and cash flow from operations.
We will continue to take a long-term view in servicing our customer base, meeting demands and maintaining the financial health of the Company as we progress forward in fiscal 2022.The Adhesives, Sealants and Additives segment delivered strong growth this year, with international markets moving in a positive direction. The acquisitions of ABchimie® — a solutions provider for the cleaning and protection of electronic assemblies, with further formulation, production, and research and development capabilities — and Emerging Technologies, Inc. (ETi) — a superabsorbent polymers solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets — also positively contributed to segment performance, each proving to be immediately accretive and well-integrated into the Chase Corporation portfolio. The Industrial Tapes segment experienced a rebound in sales over the pandemic-impacted prior year, with a notably strong fourth fiscal quarter performance. The Corrosion Protection and Waterproofing segment’s revenue, however, slightly declined over the prior year due to softer sales within pipeline and infrastructure markets. The year saw significant strides in both organic and inorganic growth and our continuing consolidation and optimization initiatives. These include the previously mentioned acquisitions of ABchimie and ETi, which serve as logical extensions of our existing electronic and industrial coatings (HumiSeal® and Resin Designs®) and superabsorbent polymers (ZappaStewart) businesses and further serve to leverage economies of scale and operational commonalities. Also, during fiscal 2021, we announced consolidation plans for both our Newark, CA and Woburn, MA facilities into other existing domestic facilities — with the consolidation of our Newark, CA operations into our Hickory, NC facility completed in the fourth quarter of fiscal 2021.In a year where Chase saw recovery through a challenging operating environment, we credit our global workforce for their perseverance and dedication to keeping Chase Corporation a leader in markets we serve.
COVID-19 PANDEMIC RESPONSE
Throughout the pandemic, Chase has worked diligently to supply products to our global customers. We provided an uninterrupted supply of materials to some of the most essential industries including manufacturers of respirators, disposable gowns, and other medical supplies. The health and safety of our employees is our first priority, and never more so than during the pandemic. We continue to adhere to health and safety protocols and remain vigilant by limiting unnecessary travel, limiting outside visitors to our facilities and, when possible, allowing employees to work from home.
Revenue in the Company’s Adhesives, Sealants and Additives segment increased $30.7 million or 32% for the year ended August 31, 2021. The revenue growth within the electronic and industrial coatings product line was largely driven by further expansion in Asian and European markets and the inorganic boost provided by the acquired operations of ABchimie. The Company’s North American-focused functional additives product line sales also experienced both organic and inorganic growth over the prior year, with the operations of ETi adding to the product line following its February 5, 2021 acquisition.
The Industrial Tapes segment’s sales increased $1.9 million or 2% for fiscal year 2021. The segment’s pulling and detection, electronic materials and specialty products lines drove top-line growth over the prior year. In the fourth quarter the cable materials, specialty products, electronic materials and pulling and detection product lines reported combined volume and price expansion and drove the segment’s growth from the prior year.
The Corrosion Protection and Waterproofing segment’s revenue decreased $0.4 million or 1% to $45.6 million for fiscal 2021 compared to $46.0 million for the prior fiscal year. The decrease in revenue was primarily driven by declines in both domestic and international infrastructure markets, further tempered by material shortages and logistic issues in the fourth fiscal quarter of the year, which resulted in decreased project demand and sales volumes for the segment as a whole
We completed fiscal 2021 with a companywide elevated backlog, most prominently impacting our Adhesive, Sealants and Additives segment, in part driven by supply chain disruptions experienced in the latter part of fiscal 2021. Addressing supply chain disruptions and the current lag in margin recovery brought on by late fiscal 2021 manufacturing input inflation and logistic challenges will be the focus of our operational plans in fiscal 2022.
As we look to the future our portfolio business model provides us a unique advantage to serve high-growth and emerging market trends while evaluating additional strategic diversification opportunities as we consistently refi ne our product suite. Our proven growth strategy is sharply focused on building upon our core businesses and on enhancing operational infrastructure and commonalities to gain a competitive advantage. We will continue to: Pursue actionable organic and inorganic growth strategies; Enhance operational infrastructure and commonalities through consolidation and rationalization of assets; Adhere to financial discipline with a focus on margin profile and free cash flow generation; and Develop competitive advantages and further drive greater market share. We expect fiscal year 2022 to be challenging but we remain optimistic. We will continue to navigate current global inflationary, labor and supply chain pressures, and will further implement solutions to satisfy our customers’ needs. In the year ahead, our proven reliability will allow us to pursue continued growth and margin recovery in the markets we serve, while maintaining our core strategic financial principles of M&A, consolidation and organic growth in select areas. As always, we value the encouragement and support of you, our Shareholders.
Adam P. Chase
President and Chief Executive Officer
Peter R. Chase
Michael J. Bourque
Treasurer and Chief Financial Officer