Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2024 Earnings Presentation
24 slides from Carlisle Companies's earnings presentation, Jul 24, 2024
Slide 1: Second Quarter 2024 Earnings Call
Second Quarter 2024 Earnings Call July 24, 2024
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. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "
Slide 3: Second Quarter 2024 Overview
Second Quarter 2024 Overview » Revenue growth of 11% year-over-year and expanded adj. EBITDA margin by 220 bps $1.5B » Completed sale of CIT for $2.025B and Revenues the acquisition of MTL for $410M 28.8% » Approved $45M investment in a new state-of-the-art Adj. EBITDA Research & Innovation Center M
Slide 4: Vision 2030 Value Creation Drivers and Targets
Vision 2030 Value Creation Drivers and Targets Key Pillars Carlisle Operating System Vision 2030 Key Financial Targets » Drive operational excellence The Carlisle Experience 5% » Win with customers through exceptional service Innovation $40+ Organic Revenue » Advance energy-efficiency, and labor sav
Slide 5: MTL Acquisition Establishes Carlisle as an Industry Leader in Architectural Metal
MTL Acquisition Establishes Carlisle as an Industry Leader in Architectural Metal » Completed purchase of MTL in May » Consistent with Vision 2030 strategy to acquire superior building envelope products and solutions within CSL’s existing core » Strong track record of above market growth » Clear har
Slide 6: Recent Examples of Innovation-Driven Growth and Price Premium
Recent Examples of Innovation-Driven Growth and Price Premium Propelled by Energy-Efficient and Labor-Saving Solutions Ready Flash SeamShield Blueskin VPTech » Adjusts adhesive set-up time in » Easy-to-remove protective film on » Integrated panel installs 30% faster various temperature conditions Su
Slide 7: Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050
Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050 Carlisle 2023 Corporate Sustainability Report Released July 2024 Report Covers » How our products reduce carbon footprint of buildings » How we reduce emissions in our operations » How we reduce waste to landfills Carlisle 2023 Corporat
Slide 8: Second Quarter 2024 Results
Second Quarter 2024 Results Revenue Adj. EBITDA Margin* Adj. EPS* +11.0% (+9.0% Organic*) +220 bps +32.8% $1.5B 28.8% $6.24 $1.3B 26.6% $4.70 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 » Normalization of channel inventory » Adjusted EBITDA margin » Strong revenue and adjusted » Solid start to construction season
Slide 9: Carlisle Construction Materials (CCM) Segment Second Quarter 2024 Performance
Carlisle Construction Materials (CCM) Segment Second Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* +14.9% (+12.7% Organic*) +23.2% +220 bps $1,089M $364M 31.2% 33.4% $948M $296M 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Notable Revenue Drivers: » Normalization of inventory in the channels »
Slide 10: Carlisle Weatherproofing Technologies (CWT) Segment Second Quarter 2024 Performance
Carlisle Weatherproofing Technologies (CWT) Segment Second Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* +0.6% (-0.6% Organic*) +0.7% 0 bps $360M $362M $81M $81M 22.5% 22.5% 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Notable Revenue Drivers: » Share gain initiatives in commercial and resident
Slide 11: Second Quarter 2024 Adjusted EPS Bridge
Second Quarter 2024 Adjusted EPS* Bridge $0.38 $(0.02) $(0.08) $6.24 $0.12 $0.12 $0.62 $0.40 $4.70 2Q23 Adj. EPS* Volume/Price/Mix Materials/Freight/ Acquisitions COS Share Interest/Tax Opex/Other 2Q24 Adj. EPS* Labor Repurchases * Reference the financial reconciliations of non-GAAP financial measur
Slide 12: Second Quarter 2024 Cash Flow Performance
Second Quarter 2024 Cash Flow Performance $332.8 $45.0 $271.8 $57.0 $176.8 $21.0 $148.7 $23.6 $287.8 $214.8 $155.8 $125.1 2Q24 2Q23 YTD24 YTD23 Operating Cash Flow* Capital Expenditures* Free Cash Flow* » On track to achieve 15%+ FCF margin in 2024, aligned with Vision 2030 target * Continuing Opera
Slide 13: Strong Balance Sheet to Execute Growth and High-Return Capital Deployment Strategy
Strong Balance Sheet to Execute Growth and High-Return Capital Deployment Strategy Debt Maturity Schedule Total Liquidity Net Debt to Adj. EBITDA* Ratio Senior Senior NoteNote $2.7B 0.4x $750M $750M 2.75% 2.75% Below 1.0x-2.0x target Senior Senior Including cash of $1.7B and $1.0B available under re
Slide 14: Disciplined Capital Deployment Approach to Drive Superior Returns
Disciplined Capital Deployment Approach to Drive Superior Returns $40+ 25%+ Adj. EPS ROIC • Repurchased 1.3M shares for $550M in 2Q24 Share • 5.6M shares remaining under authorization as Repurchases of June 30, 2024 • $40M in dividends paid in 2Q24 Dividends • 47th straight year of dividend increase
Slide 15: Improved 2024 Growth Outlook
Improved 2024 Growth Outlook Full Year 2024 Outlook Primary Drivers » CCM revenue up ~ 15% YoY on channel tailwinds ~12% ~150 bps following 2023 de-stocking, pent-up re-roof demand driving strong contractor backlogs and contributions from Revenue Adj. EBITDA the acquisition of MTL Growth Margin Grow
Slide 16: Financial Reconciliations
CARLISLE 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 June 30, (in millions, except percentages) CSL CCM CWT 2023 Revenue (GAAP) $ 1,307.0 $ 947.5 $ 359.5 Organic 118.0 9.0 % 120.2 12.7 % (2.2) (0.6)% Acquisitions 26.9 2.1 % 21.9 2.3 % 5.0 1.4 % FX impact (1.3) (0.1)% (0.7) (0.1)% (0.6) (0.2)% Total
Slide 19: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Six Months Ended June 30, June 30, (in millions) 2024 2023 2024 2023 Operating cash flow (GAAP) $ 183.4 $ 221.1 $ 346.9 $ 370.7 Less: operating cash flow from discontinued operations 6.6 72.4 14.1 98.9 Operating cash flow from continuing operations
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, (in millions, except percentages) 2024 2023 Net income (GAAP) $ 712.4 $ 194.6 Less: Income (loss) from discontinued operations (GAAP) Senior 427.2 (32.1) Income from continuing operations (GAAP) Note 285.2 226.7 Provision for income taxes
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2024 Corporate and (in millions, except percentages) CCM CWT unallocated Senior Operating income (loss) (GAAP) $ 346.8 $ 59.2 $ (28.5) Note Non-operating expense (income), net(1) 0.1 (0.3)$750 0.1 EBIT 346.7 59.5 M (28.6) Exit and disposa
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2023 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 280.7 $ 59.5 $ (31.6) (1) Non-operating income, net (0.2) 0.4 (1.0) EBIT 280.9 59.1 (30.6) Exit and disposal, and facility rationali
Slide 23: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 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) $ 712.4 $ 14.84 $ 1
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 ratios) LTM 6/30/2024 (in millions, except percentages) 6/30/2024 Income from continuing operations (GAAP) $ 841.7 Long-term debt, including current por