Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2020 Earnings Presentation
15 slides from Carlisle Companies's earnings presentation, Oct 20, 2020
Slide 1: 3rd Quarter 2020 Earnings Conference Call
3rd Quarter 2020 Earnings Conference Call October 20, 2020
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements Non-GAAP financial measures During this presentation, we make certain forward-looking Certain ratios related to Earnings before Interest, Income statements concerning plans and expectations for Carlisle Taxes, Depreciation and Amortization (“EBITDA”), Free Cash Companies I
Slide 3: Vision 2025 Remains Our Focus
Vision 2025 Remains Our Focus • Drive organic growth in excess of 5%. • Utilize the Carlisle Operating System (COS) consistently to reduce costs 1-2% of sales, driving operating leverage. • Build scale with synergistic acquisitions. • Continue to invest in and develop exceptional talent. • Deploy ov
Slide 4: 2020 Q3 Results
2020 Q3 Results Financial Summary Q3 revenue declined 12% y/y (in millions, except per share amounts) Q3 '20 Q3 '19 Δ • Organic revenue down 14.3% Revenues $1,126.7 $1,280.6 -12.0% • 1.9% acquisition growth Operating income $155.7 $191.0 -18.5% • FX was a favorable 0.4% impact Income from continuing
Slide 5: 2020 Q3 Revenue Bridge
2020 Q3 Revenue Bridge $1.28B -14.3% +1.9% +0.4% $1.13B Organic Revenue by Segment Construction Materials -8.1% Interconnect Technologies -39.1% Fluid Technologies -10.8% Brake & Friction -10.8% ### ### Earnings Call 5
Slide 6: 2020 Q3 Operating Margin Bridge
2020 Q3 Operating Margin Bridge 14.9% -3.6% +2.3% +1.0% -0.2% 13.8% -0.6% ### ### Earnings Call 6
Slide 7: 2020 Q3 EPS Bridge
2020 Q3 EPS Bridge $2.42 -$1.04 $1.87 +$0.10 +$0.18 +$0.29 +$0.09 -$0.13 -$0.04 ### ### Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 823.5 $ 893.5 $ (70.0) (7.8) % — % (8.1) % 0.3 % Operating income $ 181.3 $ 173.0 $ 8.3 4.8 % Operating margin percentag
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 168.5 $ 241.9 $ (73.4) (30.3) % 8.8 % (39.1) % — % Operating income $ (3.7) $ 36.0 $ (39.7) (110.3) % Operating margi
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 65.0 $ 68.5 $ (3.5) (5.1) % 4.4 % (10.8) % 1.3 % Operating income $ 4.4 $ 4.2 $ 0.2 4.8 % Operating margin percentage 6.8 %
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended September 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 69.7 $ 76.7 $ (7.0) (9.1) % — % (10.8) % 1.7 % Operating income $ 0.9 $ 5.7 $ (4.8) (84.2) % Operating margin percentage 1.3 %
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $719M as of 9/30/20 • $1B available under revolver • $84.5M capital returned to shareholders in dividends YTD Senior Note • Utilized $341.7M of cash YTD to repurchase $750M Senior 2.75% shares Note Senior ◦ 2.3M shares remaining under autho
Slide 13: Cash Flow
Cash Flow Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Operating Cash Flow $292.4 $213.6 $53.2 $173.1 $213.9 Capital Expenditures $(15.6) $(32.3) $(22.8) $(25.7) $(24.2) Free Cash Flow * $276.8 $181.3 $30.4 $147.4 $189.7 *Represents non-GAAP measure ### ### Earnings Call 13
Slide 14: 2020 Outlook
2020 Outlook 4Q20F Items Affecting Comparability* ($M) Revenue FY 2020 Outlook 3Q20 4Q20F FY20F Corporate Expense ~$95M +LSD $1.3 ~$0-1 ~$2-3 CCM Down Mid- D&A ~$230M $4.5 ~$3-5 ~$21-23 CIT 30% Down Mid- $0.1 ~$2-3 ~$4-5 CapEx $100-110M CFT Teens -LSD $0.4 ~$2-4 ~$8-10 FCF Conversion ~150% CBF ~$0-1
Slide 15: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions except for ratios) Capital (in millions except for ratios) LTM 9/30/2020 Total debt $ 2,100 Net debt $ 1,381 Income from Continuing Operations $ 344 Total shareholders' Less: cash $ 719 equit