Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2017 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Oct 24, 2017
Slide 1: 3rd Quarter 2017 Earnings Call
3rd Quarter 2017 Earnings Call October 24, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 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,” “should,” “estimate,” “will,” “
Slide 3: 2017 Q3 Highlights
2017 Q3 Highlights Financial Summary • Record quarterly sales ‒ CCM sales growth above favorable non- ($ millions, except per share amounts) Q3 ’17 Q3 ‘16 Δ residential market growth rates Net Sales $1,089.1 $991.0 +9.9% ‒ CBF experienced strong top-line growth Income from Continuing Operations, net
Slide 4: 2017 Q3 Sales Bridge
2017 Q3 Sales Bridge +5.3% +0.2% $1,089.1 +4.4% Organic by Segment Construction Materials +7% $991.0 Interconnect Technologies -9% FoodService Products +1% Fluid Technologies +4% Brake & Friction +28% Q3 '16 Volume/Price Acq F/X Q3 '17 in $ Millions 3rd Quarter 2017 Earnings Call 4
Slide 5: 2017 Q3 Adjusted EBIT Margin
2017 Q3 Adjusted EBIT Margin +1.3% -1.0% +0.3% -4.6% +0.7% 18.0% -1.6% 13.1% Q3 '16 Volume/Price Mix COS Acq Raw Materials/ Special Items Q3 '17 Other Operating EBIT: $177.9 Million* Costs EBIT: $142.9 Million 3rd Quarter 2017 Earnings Call 5
Slide 6: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 640.2 $ 578.2 10.7 % 2.9% 7.4% 0.4% EBIT $ 124.2 $ 132.0 (5.9)% EBIT margin 19.4 % 22.8 % Special items $ 2.8 $ — • Q3 Notable C
Slide 7: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 210.8 $ 218.2 (3.4)% 5.8% (9.2 )% —% EBIT $ 25.7 $ 42.2 (39.1)% EBIT margin 12.2 % 19.3% Special items $ 4.2 $ 2.4 • Q3 Notab
Slide 8: Carlisle FoodService Products
Carlisle FoodService Products Three Months Ended September 30, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 86.7 $ 63.0 37.6% 36.4 % 1.2% —% EBIT $ 11.6 $ 9.0 28.9% EBIT margin 13.4 % 14.3 % • Q3 Notable Commercial Items: ‒ 9th consecutiv
Slide 9: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 70.9 $ 69.0 2.8 % —% 3.8% (1.0)% EBIT $ 0.1 $ 9.5 (98.9)% EBIT margin 0.1% 13.8 % Special items $ 8.1 $ — • Q3 Notable Commercial It
Slide 10: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended September 30, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 80.5 $ 62.6 28.6 % —% 27.7% 0.9% EBIT $ 1.2 $ (141.3) 100.8 % Adjusted EBIT $ 1.2 $ 0.2 EBIT margin 1.5% (225.7)% Adjusted EBIT margin
Slide 11: 2017 Special Items – Pre-Tax
2017 Special Items – Pre-Tax Restructuring, Facility Rationalization and Other Acquisition Related Costs 2017 FY $ millions Q1 Q2 Q3 Q4 Forecast Forecast CCM $0.6 $0.3 $2.8 ~$0.0 ~$3-4 CIT $4.3 $5.6 $4.2 ~$3-4 ~$17-18 CFS $3.7 $0.5 $0.0 $0.0 ~$4 CFT $0.5 $0.5 $8.1 ~$3-4 ~$12-13 CBF $0.3 $1.7 $1.0 ~$
Slide 12: Focused on Capital Structure Optimization as of 9/30/17
Focused on Capital Structure Optimization as of 9/30/17 Debt Maturity Schedule • Cash on Hand of $147.6M • $815M available under revolver • $69.0M capital returned YTD to Senior shareholders in quarterly dividends Note Senior $350M • Repurchased $266M of shares YTD Note $250M 3.75% • Currently 2.1M
Slide 13: Cash Flow
Cash Flow Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Operating Cash Flow $ 175.2 $ 176.1 $ 31.9 $ 102.8 $ 164.9 Capital Expenditures $ (31.4) $ (31.5) $ (30.4) $ (35.7) $ (39.7) Free Cash Flow $ 143.8 $ 144.6 $ 1.5 $ 67.1 $ 125.2 3rd Quarter 2017 Earnings Call 13
Slide 14: 2017 Outlook
2017 Outlook • Total sales growth of high single digits • Corporate Expense ~$70M ‒ CCM: up high single digits • Depreciation & Amortization ‒ CIT: down low to mid-single digits ~$160M ‒ CFS: up approximately 40%, inclusive • Capital Expenditures ~$150M of San Jamar • Free cash flow conversion ~100%
Slide 15: Q&A
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Q&A
Slide 16: Appendix
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio ($ in Millions except for Ratios) LTM 9/30/2017 ($ in Millions except for Ratios) Capital Net income $327 Total Debt $785 Net Debt 637 Income tax expense (continuing and discontinued) 159 Les