Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2018 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Oct 23, 2018
Slide 1: 3rd Quarter 2018 Earnings Conference Call
3rd Quarter 2018 Earnings Conference Call October 23, 2018
Slide 2: Forward-looking statements; 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: Executing on Vision 2025 Plan
Executing on Vision 2025 Plan • Exceeded organic revenue growth target of 5% YTD • Returned approximately $365M to shareholders through share repurchases and dividends YTD ◦ $295M of share repurchases ◦ $70M of dividends • Executed on CFT margin improvement initiatives driving to ~13% operating marg
Slide 4: 2018 Q3 Highlights
2018 Q3 Highlights • Record Q3 revenue up 17.9% Financial Summary • 5.5% organic revenue growth (in millions, except per share amounts) Q3 '18 Q3 '17 Δ Revenues $1,181.4 $1,002.4 +17.9% • Strong organic growth at CIT and CBF Operating income $140.0 $134.8 +3.9% • 11.7% acquisition growth Income from
Slide 5: 2018 Q3 Revenue Bridge
2018 Q3 Revenue Bridge $1,181.4 +11.7% +0.1% Organic Revenue by Segment Construction Materials +3.2% +0.6% Interconnect Technologies +9.8% +5.5% Fluid Technologies +2.8% Brake & Friction +14.9% $1,002.4 Q3 '17 Organic Revenue Acquisitions FX Q3 '18 Recognition (in millions) 4th Quarter 2017 Earnings
Slide 6: 2018 Q3 Operating Margin Bridge
2018 Q3 Operating Margin Bridge +1.4% -1.4% +1.3% +13.4% -3.5% +0.7% +11.9% Q3 '17 Price/Volume COS Acquisitions Raw Materials/ Restructuring/ Q3 '18 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6
Slide 7: 2018 Q3 EPS Bridge
2018 Q3 EPS Bridge +$0.15 -$0.22 +$0.06 +$0.14 -$0.06 -$0.07 +$0.30 -$0.12 $1.59 +$0.15 $1.26 Q3 '17 Volume Tax Items COS Share Price Raw Material, Interest Product Mix Other Q3 '18 Repurchase Freight & Labor Expense Related Costs 4th Quarter 2017 Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 776.8 $ 640.2 $ 136.6 21.3 % 18.2% 3.2% (0.1)% Operating income $ 120.9 $ 124.4 $ (3.5) (2.8)% Operating margin percenta
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2018 2017 Change $ Change % Effect1 Revenues $ 240.2 $ 210.8 $ 29.4 13.9% 0.3% 12.8% 0.8% Operating income $ 29.3 $ 25.9 $ 3.4 13.1% Operating margin percentage 12
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 72.4 $ 70.9 $ 1.5 2.1% —% 2.8% (0.7)% Operating income $ 11.6 $ 0.1 $ 11.5 NM Operating margin percentage 16.0% 0.1% NM Item
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended September 30, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 92.0 $ 80.5 $ 11.5 14.3 % —% 14.9% (0.6)% Operating income $ (1.1) $ 1.3 $ (2.4) (184.6)% Operating margin percentage (1.2)% 1
Slide 12: Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items
Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items ($ in millions) Q3 2018 Q4 2018 Forecast FY 2018 Forecast CCM $1.0 ~$0-1 ~$0-1 CIT $2.5 ~$2-3 ~$9-10 CFT $(2.0) ~$0-1 ~$0-1 CBF $4.8 ~$10-12 ~$21-23 CORP $0.8 ~$1-2 ~$3-4 TOTAL OI Pre-Tax $7.1 ~$14-18 ~$33-37 4th Quarter
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $780.5M as of 9/30/18 Debt Maturity Schedule • $1B available under revolver • $70M capital returned YTD to shareholders Senior in quarterly dividends Note $600M • Repurchased $295.4M of shares YTD 3.75% Senior • 4.4M shares remaining under
Slide 14: Cash Flow
Cash Flow $175 $125 (in millions) $75 $25 -$25 -$75 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Operating Cash Flow Capital Expenditures Free Cash Flow * Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Operating Cash Flow $164.9 $159.1 $33.2 $(36.0) $105.4 Capital Expenditures $(39.7) $(54.1) $(42.5) $(24.4) $(29.2) Free
Slide 15: 2018 Outlook
2018 Outlook • Total revenue growth from continuing • Corporate expense ~$75-80M operations high-teens • Depreciation & amortization ~$190M – CCM: up low twenty percent • Capital expenditures ~$120-130M – CIT: up double-digits • Free cash flow conversion ~100%** – CFT: up mid-single digits • Net int
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 9/30/2018 (in millions except for ratios) Capital Net income $ 638 Total debt $ 1,600 Net debt $ 819 Income tax expense (continuing and discontinued) 100 L