Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2018 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Jul 24, 2018
Slide 1: 2nd Quarter 2018 Earnings Conference Call
2nd Quarter 2018 Earnings Conference Call July 24, 2018
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements During this presentation, we make certain forward-looking statements concerning plans and expectations for Carlisle Companies Incorporated. We caution you that actual events or results may differ materially from our plans and expectations. See our Form 10-K for 2017 filed
Slide 3: 4th Quarter 2017 Earnings Call
4th Quarter 2017 Earnings Call 3
Slide 4: 2018 Q2 Highlights
2018 Q2 Highlights • Record Q2 revenue up 25.6% Financial Summary • 9.7% organic revenue growth (in millions, except per share amounts) Q2 '18 Q2 '17 Δ Revenues $1,236.1 $983.9 +25.6% • Strong growth at CCM, CIT, CBF Operating income $159.7 $146.3 +9.2% • 14.3% acquisition growth Income from continu
Slide 5: 2018 Q2 Revenue Bridge
2018 Q2 Revenue Bridge $1,236.1 +14.3% +0.7% Organic Revenue by Segment Construction Materials +8.5% +0.9% 1 +9.7% Interconnect Technologies +17.6% Fluid Technologies +0.4% Brake & Friction +17.7% $983.9 Q2 '17 Organic Revenue Acquisitions F/X Q2 '18 Recognition (in millions) 1 Includes ~5% Revenue
Slide 6: 2018 Q2 Operating Margin Bridge
2018 Q2 Operating Margin Bridge +1.5% -1.4% +1.4% +14.9% -3.6% +0.1% +12.9% Q2 '17 Revenues COS Acquisitions Raw Materials/ Restructuring/ Q2 '18 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6
Slide 7: 2018 Q2 EPS Bridge
2018 Q2 EPS Bridge +$0.09 +$0.07 -$0.20 +$0.15 -$0.07 +$0.24 -$0.04 -$0.12 $1.87 +$0.29 $1.46 Q2 '17 Volume Tax Items COS Share Price Raw Material, Interest Product Mix FX, Q2 '18 Repurchase Freight & Labor Expense Other Related Costs 4th Quarter 2017 Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 828.6 $ 631.2 $ 197.4 31.3% 22.3% 8.5% 0.5% Operating income $ 141.4 $ 129.1 $ 12.3 9.5% Operating margin percentage 17.1% 20
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2018 2017 Change $ Change % Effect2 Revenues $ 237.7 $ 201.8 $ 35.9 17.8% 0.1% 17.6% 0.1% Operating income $ 27.5 $ 20.2 $ 7.3 36.1% Operating margin percentage 11.6% 1
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 73.3 $ 71.0 $ 2.3 3.2% —% 0.4% 2.8% Operating income $ 7.8 $ 7.4 $ 0.4 5.4% Operating margin percentage 10.6% 10.4% +20bps Items
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended June 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 96.5 $ 79.9 $ 16.6 20.8% —% 17.7% 3.1% Operating income $ 2.9 $ 1.3 $ 1.6 123.1% Operating margin percentage 3.0% 1.6% +140bps Item
Slide 12: Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items
Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items ($ in millions) Q1 2018 Q2 2018 Q3 2018 Forecast FY 2018 Forecast CCM $(1.8) $0.7 ~$0-1 ~$0-1 CIT $2.6 $1.9 ~$1-2 ~$6-7 CFT $0.5 $1.0 ~$0-1 ~$1-2 CBF $2.0 $3.9 ~$4-5 ~$12-15 CORP $1.1 $0.2 ~$0-1 ~$2-3 TOTAL OI Pre-Tax $4.
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $762.4M as of 6/30/18 Debt Maturity Schedule • $1B available under revolver • $46M capital returned YTD to shareholders Senior in quarterly dividends Note $600M • Repurchased $241M of shares YTD 3.75% Senior • 4.9M shares remaining under Se
Slide 14: Cash Flow
Cash Flow $175 $125 (in millions) $75 $25 -$25 -$75 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Operating Cash Flow Capital Expenditures Free Cash Flow * Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Operating Cash Flow $102.8 $164.9 $159.1 $33.2 $(36.0) Capital Expenditures $(35.7) $(39.7) $(54.1) $(42.5) $(24.4) Free
Slide 15: 2018 Outlook
2018 Outlook • Total revenue growth from continuing • Corporate expense ~$75 operations approximately 20% • Depreciation & amortization ~$190M – CCM: up mid-twenties • Capital expenditures ~$135-150M – CIT: exceed 10% • Free cash flow conversion ~100%** – CFT: up mid-single digits • Net interest exp
Slide 16: Appendix
Appendix 4th Quarter 2017 Earnings Call 16
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio (in millions except for ratios) LTM 6/30/2018 (in millions except for ratios) Capital Net income $ 625 Total debt $ 1,600 Net debt $ 838 Income tax expense (continuing and discontinued) 124 L