Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2019 Earnings Presentation
16 slides from Carlisle Companies's earnings presentation, Apr 23, 2019
Slide 1: 1st Quarter 2019 Earnings Conference Call
1st Quarter 2019 Earnings Conference Call April 23, 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: Q1 2019: Continued Execution of Vision 2025
Q1 2019: Continued Execution of Vision 2025 • Exceeded organic revenue growth target of 5% for Q1 • Demonstrated sustained price leadership across all segments, driving over 20% increase in operating income • Realized Q1 COS savings and benefits of 1.3%, in line with our targeted 1-2% of annual sale
Slide 4: 2019 Q1 Highlights
2019 Q1 Highlights Record Q1 revenue, up 8.9% Financial Summary • 5.9% organic revenue growth (in millions, except per share amounts) Q1 '19 Q1 '18 Δ ◦ Strong organic growth at CCM and CIT Revenues $1,071.9 $984.7 +8.9% ◦ Solid price realization across all segments Operating income $114.7 $94.7 +21.
Slide 5: 2019 Q1 Revenue Bridge
2019 Q1 Revenue Bridge +3.9% (0.9)% $1,071.9M 5.9% Organic Revenue by Segment Construction Materials +6.3% Interconnect Technologies +10.0% Fluid Technologies +2.2% Brake & Friction -3.8% $984.7M Q1 '18 Organic Acquisitions FX Q1 '19 (in millions) 4th Quarter 2017 Earnings Call 5
Slide 6: 2019 Q1 Operating Margin Bridge
2019 Q1 Operating Margin Bridge +1.3% -0.5% -1.5% +2.1% -0.3% 10.7% 9.6% Q1 '18 Price/Volume COS Acquisitions Raw Materials/ Restructuring/ Q1 '19 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6
Slide 7: 2019 Q1 EPS Bridge
2019 Q1 EPS Bridge +$0.15 +$0.09 +$0.25 -$0.25 $1.33 +$0.04 +$0.13 $0.92 Q1 '18 Volume Price Material, COS Tax Items Share Q1 '19 Freight & Labor Repurchase 4th Quarter 2017 Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended March 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 671.1 $ 598.6 $ 72.5 12.1% 6.3% 6.3% (0.5)% Operating income $ 92.9 $ 75.8 $ 17.1 22.6% Operating margin percentage 13.8% 12
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended March 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 246.4 $ 224.3 $ 22.1 9.9% 0.2% 10.0% (0.3)% Operating income $ 30.6 $ 27.2 $ 3.4 12.5% Operating margin percentage 12.4%
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended March 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 63.1 $ 63.5 $ (0.4) (0.6)% —% 2.2% (2.8)% Operating income $ 6.4 $ 5.7 $ 0.7 12.3 % Operating margin percentage 10.1% 9.0% +110b
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended March 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 91.3 $ 98.3 $ (7.0) (7.1)% —% (3.8)% (3.3)% Operating income $ 6.5 $ 4.5 $ 2.0 (44.4)% Operating margin percentage 7.1% 4.6% +250b
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $516.6M as of 3/31/19 Debt Maturity Schedule • $1B available under revolver • $23.3M capital returned to shareholders in Senior dividends Note $600M • Utilized $157.1M of cash to repurchase shares 3.75% Senior ◦ 6.4M shares remaining under
Slide 13: Cash Flow
Cash Flow $350 $250 (in millions) $150 $50 -$50 -$150 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Operating Cash Flow Capital Expenditures Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Operating Cash Flow $33.2 $(36.0) $105.4 $236.6 $109.8 Capital Expenditures $(42.5) $(24.4) $(29.2) $(24.6) $(23.3) Free Cash Flow * $(
Slide 14: 2019 Outlook
2019 Outlook Restructuring, facility FY 2019 FY2019 rationalization acquisition/ Revenue divestiture related items (in $M) Corporate Expense ~$80M Growth y/y 1Q19A 2Q19F FY19 D&A ~$200M CCM LDD $1.6 ~$1-2 ~$3-4 CapEx ~$110-120M CIT MSD to HSD $4.9 ~$4-5 ~$14-16 FCF Conversion >100% CFT MSD $(0.9) ~$
Slide 15: Appendix
Appendix 4th Quarter 2017 Earnings Call 15
Slide 16: 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 3/31/2019 Total debt $ 1,600 Net debt $ 1,083 Income from Continuing Operations $ 378 Less: cash $ 517 To