Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2022 Earnings Presentation
24 slides from Carlisle Companies's earnings presentation, Oct 27, 2022
Slide 1: 3rd Quarter 2022 Earnings Call
3rd Quarter 2022 Earnings Call October 27, 2022
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, including statements regarding the potential or expected impacts of the global COVID-19 pandemic. Forward-looking
Slide 3: Vision 2025 – Third Quarter 2022 Highlights
Vision 2025 – Third Quarter 2022 Highlights » Delivered record third quarter revenues of $1.8 billion and Adjusted EPS of $5.66 » 6th consecutive quarter of record quarterly results » Optimistic that solid underlying trends in U.S. non-residential construction markets will overcome recent macroecono
Slide 4: Drivers of Record Performance
Drivers of Record Performance » Strong non-residential U.S. construction demand » Pricing to the value of The Carlisle Experience » Availability of materials and supply chain improving » Henry integration exceeding expectations » CIT finished quarter with record backlogs and increased profitability
Slide 5: Continued Commitment to ESG
Continued Commitment to ESG » Launched 3rd and most comprehensive Corporate Sustainability Report (Carlisle Companies Incorporated – Sustainability) » Issued an employee stock option grant or cash equivalent, our 3rd in 12 years » Continue to align our GHG reduction strategy with the Science Based T
Slide 6: 3Q22 Results
3Q22 Results 3Q Revenue increased 36% y/y » Organic revenue up 28.3% driven by volume Financial Summary growth and positive pricing (in millions, except per share 3Q22 3Q21 Δ » amounts) Continued strong demand for Commercial Revenues $1,794.1 $1,315.6 +36.4% Roofing products » 9.2% acquisition growt
Slide 7: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 1,090.3 $ 783.9 $ 306.4 39.1 % 40.1 % —% (1.0)% Operating income $ 341.7 $ 181.1 $ 160.6 88.7 % Operating margin 31.3 %
Slide 8: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 406.7 $ 281.9 $ 124.8 44.3 % 2.2 % 42.7 % (0.6)% Operating income $ 9.6 $ 6.0 $ 3.6 60.0 % Operating margin 2.4 %
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 223.7 $ 178.7 $ 45.0 25.2 % 25.5 % —% (0.3)% Operating income (loss) $ 12.9 $ (0.5) $ 13.4 NM Operating margin 5.8 %
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 73.4 $ 71.1 $ 2.3 3.2 % 10.1 % —% (6.9)% Operating income $ 11.7 $ 4.7 $ 7.0 148.9 % Operating margin 15.9 % 6.6 % +930 bps
Slide 11: 3Q22 Revenue Bridge
3Q22 Revenue Bridge Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 40.1% —% (1.0)% 39.1% CWT 2.2% 42.7% (0.6)% 44.3% CIT 25.5% —% (0.3)% 25.2% CFT 10.1% —% (6.9)% 3.2% * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures
Slide 12: 3Q22 Adjusted EPS Bridge
3Q22 Adjusted EPS* Bridge * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 12
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization » Cash on hand of $625M as of 9/30/22 » $1B available under revolver Senior Note » $39M capital returned to shareholders in $750M 2.75% dividends Senior Note Senior » Deployed $26M of cash to repurchase $600M Note 3.75% $550M shares 2.20% » 4.2M shares remai
Slide 14: 3Q22 Cash Flow Performance
3Q22 Cash Flow Performance * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 14
Slide 15: FY 2022 Outlook
FY 2022 Outlook Business Segment 2022 Revenue Growth Primary Drivers • Strong re-roofing and new construction activity Carlisle Construction Materials 35-40% • Pricing to the value of The Carlisle Experience • Increasing demand for energy-efficient building products • Henry acquisition Carlisle Weat
Slide 16: Financial Reconciliations
Lt CF ARLISL E 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 17: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics This presentation includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Adjusted EBITDA, which the Company defines as net income excluding income/loss from d
Slide 18: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended September 30, (in millions) CSL CCM CWT CIT CFT 2021 Revenue (GAAP) $ 1,315.6 $ 783.9 $ 281.9 $ 178.7 $ 71.1 Organic (volume/price) 372.8 28.3 % 314.0 40.1 % 6.1 2.2 % 45.5 25.5 % 7.2 10.1 % Acquisitions 120.4 9.2 % — — % 120.4 42.7 % — — % — — %
Slide 19: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Operating cash flow (GAAP) $ 365.1 $ 112.4 $ 588.6 $ 283.9 Less: operating cash flow from discontinued operations (0.5) (2.3) (2.6) 8.5 Operating cash flow from continu
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, (in millions) 2022 2021 Net income (GAAP) $ 254.7 $ 142.1 Less: (loss) income from discontinued operations (GAAP) (0.5) 29.1 Income from continuing operations (GAAP) 255.2Senior 113.0 Provision for income taxes 72.2 Note 33.0 Interes
Slide 21: Reconciliation to Adjusted EBITDA (2022)
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2022 Corporate and (in millions) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 341.7 $ 9.6 $ 12.9 $ $ 11.7Senior (27.7) Non-operating expense (income)(1) 1.2 0.2 (0.8) (0.4) Note 1.0 EBIT 340.5 9.4 13.7 12.1 $750 (28.7
Slide 22: Reconciliation to Adjusted EBITDA (2021)
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2021 Corporate and (in millions) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 181.1 $ 6.0 $ (0.5) $ 4.7 $ (24.8) Non-operating expense (income)(1) 0.3 0.1 (0.1) (0.2) 0.8 EBIT 180.8 5.9 (0.4) 4.9 (25.6) Exit and dispo
Slide 23: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 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) $ 254.7 $
Slide 24: 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 for ratios) LTM 9/30/2022 (in millions except for ratios) 9/30/2022 Income from continuing operations (GAAP) $ 876.2 Long-term debt, including current po