Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2019 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Oct 22, 2019
Slide 1: 3rd Quarter 2019 Earnings Conference Call
3rd Quarter 2019 Earnings Conference Call October 22, 2019
Slide 2: Forward-looking statements; Non-GAAP financial measures
Forward-looking statements Non-GAAP financial measures During this presentation, we make certain forward-looking Certain ratios related to our Revolving Credit Facility of Earnings statements concerning plans and expectations for Carlisle before Interest, Income Taxes, Depreciation and Amortization
Slide 3: Continued Execution of Vision 2025 - YTD
Continued Execution of Vision 2025 - YTD • Organic revenue growth of 4% • Demonstrated sustained price leadership, in support of a 30% increase in operating income • Realized YTD COS savings and benefits of 1.3%, in line with our targeted 1-2% of annual sales • Returned $307M to shareholders through
Slide 4: Draka Fileca
Draka Fileca Company Overview Products Description: A $50M+ developer and manufacturer of high-quality, high-performance electrical and fiber cable for the Commercial Aerospace, Defense & Space Markets Locations: Sainte-Genevieve, France (HQ), Durango, Mexico Close: Expected to close early 2020 Rati
Slide 5: Providien LLC
Providien LLC Company Overview Products Description: A growing $100M+ provider of comprehensive manufacturing solutions to global medical device OEMs: thermoforming, medical device contract manufacturing, machining & metals and medical injection molding Locations: San Diego, CA (HQ), Carlsbad, CA, S
Slide 6: 2019 Q3 Highlights
2019 Q3 Highlights Record Q3 revenue, up 8.4% Financial Summary • 3.4% organic revenue growth (in millions, except per share amounts) Q3 '19 Q3 '18 Δ ◦ 8.8% organic growth at CCM Revenues $1,280.6 $1,181.4 +8.4% • 5.4% acquisition growth Operating income $191.0 $140.0 +36.4% Income from continuing o
Slide 7: 2019 Q3 Revenue Bridge
2019 Q3 Revenue Bridge +5.4% -0.4% $1.28B Organic Revenue by Segment Construction Materials +8.8% +3.4% Interconnect Technologies -0.7% Fluid Technologies -17.1% $1.18B Brake & Friction -15.0% Q3 '18 Organic Acquisitions FX Q3 '19 (in millions) 4th Quarter 2017 Earnings Call 7
Slide 8: 2019 Q3 Operating Margin Bridge
2019 Q3 Operating Margin Bridge +1.4% -0.6% +1.0% +0.3% 14.9% +0.9% 11.9% Q3 '18 Volume/Price COS Acquisitions Raw Materials/ Restructuring/ Q3 '19 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 8
Slide 9: 2019 Q3 EPS Bridge
2019 Q3 EPS Bridge +$0.08 $2.42 +$0.12 +$0.21 +$0.23 +$0.19 $1.59 Q3 '18 Volume/Price/Mix Material, COS Share Other Q3 '19 Freight & Labor Repurchase 4th Quarter 2017 Earnings Call 9
Slide 10: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 893.5 $ 776.8 $ 116.7 15.0% 6.5% 8.8% (0.3)% Operating income $ 173.0 $ 120.9 $ 52.1 43.1% Operating margin percentage 1
Slide 11: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 241.9 $ 240.2 $ 1.7 0.7% 1.5% (0.7)% (0.1)% Operating income $ 36.0 $ 29.3 $ 6.7 22.9% Operating margin percentage 14
Slide 12: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 68.5 $ 72.4 $ (3.9) (5.4)% 12.8% (17.1)% (1.1)% Operating income $ 4.2 $ 11.6 $ (7.4) (63.8)% Operating margin percentage 6.
Slide 13: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended September 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 76.7 $ 92.0 $ (15.3) (16.6)% —% (15.0)% (1.6)% Operating income $ 5.7 $ (1.1) $ 6.8 618.2 % Operating margin percentage 7.4% (
Slide 14: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $658M as of 9/30/19 • $1B available under revolver Debt Maturity Schedule • $75M capital returned to shareholders in Senior dividends YTD Note $600M • Utilized $232M of cash YTD to repurchase 3.75% Senior shares Senior Note ◦ 5.8M shares re
Slide 15: Cash Flow
Cash Flow $350 $250 (in millions) $150 $50 -$50 -$150 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Operating Cash Flow Capital Expenditures Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Operating Cash Flow $105.4 $236.6 $109.8 $87.3 $292.4 Capital Expenditures $(29.2) $(24.6) $(23.3) $(17.7) $(15.6) Free Cash Flow * $76
Slide 16: 2019 Outlook
2019 Outlook Restructuring, facility FY 2019 FY2019 rationalization acquisition/ Revenue divestiture related items (in $M) Corporate Expense $95-100M Growth y/y 3Q19A 4Q19F FY19F D&A ~$200M CCM + Low DD $0.8 ~$0-1 ~$2-3 CapEx $75-80M CIT + MSD $2.5 ~$5-7 ~$15-17 FCF Conversion >115% CFT - LSD/MSD $1
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Unaudited Leverage Ratios under Credit Agreement Net Debt to Capital Ratio (in millions except for ratios) Capital (in millions except for ratios) LTM 9/30/2019 Total debt $ 1,601 Net debt $ 943 Income from Continuing Operations $ 457 Less: cash $ 658 Tota