Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2024 Earnings Presentation
25 slides from Carlisle Companies's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call October 24, 2024
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "
Slide 3: Third Quarter 2024 Overview
Third Quarter 2024 Overview • Grew revenue 6% year-over-year and expanded adjusted EBITDA margin by 60 bps $1.3B • Signed agreement to acquire Plasti-Fab Revenues • Returned $512M to shareholders through dividends and share buybacks 27.6% • Increased dividend 18%, marking the 48th consecutive annual
Slide 4: Vision 2030 Value Creation Drivers and Targets
Vision 2030 Value Creation Drivers and Targets Key Pillars Vision 2030 Key Financial Carlisle Operating System • Drive operational excellence Targets The Carlisle Experience 5% • Win with customers through exceptional service Innovation $40+ Organic Revenue • Advance energy-efficient and labor savin
Slide 5: Vision 2030 M&A Playbook Unlocking Value Creation
Vision 2030 M&A Playbook Unlocking Value Creation • Announced two value-enhancing acquisitions in 2024, building on demonstrated success with prior Henry acquisition • M&A playbook target criteria: Mid-single-digit-plus growth Achievable hard cost synergies Strong management team and cultural fit De
Slide 6: Recent Acquisition Aligned with Vision 2030 M&A Playbook
Recent Acquisition Aligned with Vision 2030 M&A Playbook Plasti-Fab is a leading, vertically integrated manufacturer of EPS insulation products across Canada and the Midwest U.S. Establishes Carlisle as a leading manufacturer within the $1.5B North American expanded polystyrene insulation market Con
Slide 7: Increasing Emphasis on Evolutionary and Revolutionary Innovation
Increasing Emphasis on Evolutionary and Revolutionary Innovation CARLISLE TODAY 5% 33% Revolutionary Revolutionary Innovation Innovation 33% Investments 80% Investments Business 15% Business Lifecycle Evolutionary Lifecycle 33% Evolutionary 7
Slide 8: Innovation Example: CWT Home Depot Partnership
Innovation Example: CWT Home Depot Partnership Roof Guard® Roof Coating Leverages Henry + Carlisle Technology Capabilities Urethane enhanced formula offers acrylic trade up and expands exclusive offering for PRO's Exclusive innovation for Home Depot Next-gen acrylic waterproof roof coating Urethane
Slide 9: Third Quarter 2024 Results
Third Quarter 2024 Results Revenue Adj. EBITDA Margin* Adj. EPS* +6% (+3% Organic*) +60 bps +24% $1,334M 27.0% 27.6% $5.78 $1,260M $4.68 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 • Normalization of channel inventory • Volume leverage on strong top • Resilient revenue and adjusted line performance EBITDA margin
Slide 10: Carlisle Construction Materials (CCM) Segment Third Quarter 2024 Performance
Carlisle Construction Materials (CCM) Segment Third Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* +9% (+6% Organic*) +13% +110 bps $998M $328M 31.7% 32.8% $914M $289M 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Notable Revenue Drivers: • Re-roof activity benefiting from pent-up demand • Normal
Slide 11: Carlisle Weatherproofing Technologies (CWT) Segment Third Quarter 2024 Performance
Carlisle Weatherproofing Technologies (CWT) Segment Third Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* -3% (-4% Organic*) -14% -270 bps $346M $335M $81M 23.4% $69M 20.7% 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Notable Revenue Drivers: • Softer residential end market and lower price in sel
Slide 12: Third Quarter 2024 Adjusted EPS Bridge
Third Quarter 2024 Adjusted EPS* Bridge $0.32 $5.78 $0.38 $0.16 $0.24 $4.68 3Q23 Adj. EPS* Organic Acquisitions Share Repurchases Net Interest/Tax 3Q24 Adj. EPS* * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 12
Slide 13: Third Quarter 2024 Cash Flow Performance
Third Quarter 2024 Cash Flow Performance $662 $662 $64 $87 $390 $329 $30 $19 $597 $575 $360 $309 3Q24 3Q23 YTD24 YTD23 Operating Cash Flow* Capital Expenditures* Free Cash Flow* On track to achieve 15%+ FCF margin in 2024, aligned with Vision 2030 target * Continuing Operations; Reference the financ
Slide 14: Strong Balance Sheet to Execute Growth and High-Return Capital Deployment Strategy
Strong Balance Sheet to Execute Growth and High-Return Capital Debt Maturity Schedule Deployment Strategy Senior Total Liquidity Net Debt to Note EBITDA* Ratio $750M 2.75% $2.5B 0.5x Senior Note Senior Senior $600M Note Note Including cash of $1.5B and Below 1.0x-2.0x target driven by CIT proceeds 3
Slide 15: Robust Free Cash Flow Generation to Build on Track Record of High Return on Capital
Robust Free Cash Flow Generation to Build on Track Record of High Return on Capital Expected Cash Generated Expected Cash Deployment 2024 – 2030E 2024 – 2030E Deployable Capital REINVESTMENT 25%+ Free Cash Flow ROIC 15%+ ACQUISITIONS of sales DIVIDENDS SHARE REPURCHASES 15
Slide 16: 2024 Full-Year Growth Outlook
2024 Full-Year Growth Outlook Primary Drivers • CCM revenue up MSD YoY in Q4 on volume growth from pent-up re-roof demand and contributions from the ~10% ~150 bps acquisition of MTL Revenue Adj. EBITDA • CWT revenue down LSD YoY in Q4 with growth initiatives Growth Margin Growth offsetting the softe
Slide 17: Appendix
CARLISLE Appendix
Slide 18: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics The Company uses the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. ROIC, which the Company defines as net income excluding income/loss from discontinued operation
Slide 19: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended September 30, (in millions, except percentages) CSL CCM CWT 2023 Revenue (GAAP) $ 1,259.8 $ 914.0 $ 345.8 Organic 35.9 2.9 % 50.8 5.6 % (14.9) (4.3)% Acquisitions 38.1 3.0 % 33.3 3.6 % 4.8 1.4 % FX impact (0.2) —% 0.1 —% (0.3) (0.1)% Total change
Slide 20: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2024 2023 2024 2023 Operating cash flow (GAAP) $ 312.8 $ 441.7 $ 659.7 $ 812.4 Less: operating cash flow from discontinued operations (15.9) 51.6 (1.8) 150.5 Operating cash flow from conti
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, (in millions, except percentages) 2024 2023 Net income (GAAP) $ 244.3 $ 265.6 Less: (Loss) income from discontinued operations Senior (2.3) 48.7 Income from continuing operations (GAAP) Note 246.6 216.9 Provision for income taxes $75
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2024 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 303.0 $ 46.8Senior $ (33.4) Non-operating (income) expense, net (1) (0.5) 0.3 Note (0.9) EBIT 303.5 46.5 $750 (32.5) M Exit and
Slide 23: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2023 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 272.5 $ 58.8 $ (31.4) (1) Non-operating expense (income), net 0.3 (0.2) 0.5 EBIT 272.2 59.0 (31.9) Exit and disposal, and facil
Slide 24: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Pre-tax Post-tax Impact to Pre-tax Post-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 244.3 $
Slide 25: Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios
Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions, except ratios) LTM 9/30/2024 (in millions, except percentages) 9/30/2024 Income from continuing operations (GAAP) $ 894.4 Long-term debt, including current por