Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2021 Earnings Presentation
26 slides from Carlisle Companies's earnings presentation, Feb 10, 2022
Slide 1: 4th Quarter 2021 Earnings Call
4th Quarter 2021 Earnings Call February 10, 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. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “
Slide 3: 4Q21 Highlights
4Q21 Highlights • Delivered record 4Q sales, Adjusted Diluted EPS and Adjusted EBITDA • Growth accelerating in 2022 – solid demand fundamentals still in place across all our businesses • CCM overcame challenge of historic demand levels to deliver the Carlisle Experience • Proactive pricing in antici
Slide 4: Vision 2025 Update
Vision 2025 Update • Delivered organic growth in excess of 26% • Proactive price actions offset raw material and freight inflation in 4Q, leading to net price/cost neutrality for FY21 • Henry acquisition exceeding expectations – now expect Adjusted Diluted EPS accretion of $1.50+ in 2022, up from $1
Slide 5: Continued Progress on Commitment to ESG
Continued Progress on Commitment to ESG • Making progress on energy audits at our facilities; we will make a formal commitment to net-zero carbon emissions in the near future. • Broke ground on Sikeston, Missouri state-of-the-art polyiso insulation facility built to LEED standards • Doubled number o
Slide 6: 4Q21 Results
4Q21 Results 4Q revenue increased 39.2% y/y Financial Summary • Organic revenue up 26.4% driven by strong (in millions, except per share amounts) 4Q21 4Q20 Δ demand across all CCM product lines and Revenues $1,376.0 $988.3 +39.2% continued recovery at CIT and CFT Operating income $182.5 $111.3 +64.0
Slide 7: Consistent Organic Growth and Margin Expansion at CCM
Consistent Organic Growth and Margin Expansion at CCM Organic Growth (y/y%) '08 '09 '10 '11 '12 '13 ‘14 ‘15 '16 '17 '18 '19 ‘20 ‘21 +4.5% (23.5%) +8.7% +18.8% +10.2% +4.4% +9.0% +5.5% +2.6% +8.6% +5.1 +6.2% (7.5%) +29.8% $4,500 25% $4,000 $3,500 20% CCM Operating Margin CCM Revenue in $M $3,000 15%
Slide 8: Further Expansion into Global Building Envelope Markets
Further Expansion into Global Building Envelope Markets Spray Foam Insulation Architectural Metals Weather, Vapor, Air, Energy Europe Barrier Systems (Henry) ~$3B market growing HSD ~$2.5B market growing ~2x GDP ~$3B market opportunity ~$10B+ market opportunity Opportunities/Key Drivers: Opportuniti
Slide 9: Continued Recovery at CIT and CFT
Continued Recovery at CIT and CFT CIT • Returned to year-over-year revenue and Adjusted EBITDA growth in second half of 2021 • Actions to right-size the footprint in 2020 and 2021 position CIT for return to profitable growth • Demand for narrow-body aircraft driving order growth; subdued wide-body p
Slide 10: 4Q21 Revenue Bridge
4Q21 Revenue Bridge +12.9% -0.1% +26.4% Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 29.8% 16.8% (0.1)% 46.5% CIT 19.1% —% 0.2% 19.3% CFT 7.3% —% (1.3)% 6.0% *Refer to the appendix for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. 10
Slide 11: 4Q21 Adjusted EPS Bridge
4Q21 Adjusted EPS* Bridge *Refer to the appendix for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. 11
Slide 12: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 1,114.3 $ 760.8 $ 353.5 46.5 % 29.8 % 16.8 % (0.1)% Operating income $ 198.5 $ 155.0 $ 43.5 28.1 % Operating margin 17.8
Slide 13: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 184.4 $ 154.6 $ 29.8 19.3 % 19.1 % —% 0.2 % Operating income (loss) $ 6.6 $ (13.3) $ 19.9 NM Operating margin 3.6 % (8
Slide 14: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 77.3 $ 72.9 $ 4.4 6.0 % 7.3 % —% (1.3)% Operating income $ 8.4 $ 3.3 $ 5.1 154.5 % Operating margin 10.9 % 4.5 % +640 bps Dep
Slide 15: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Highlights • Cash on hand of $324M as of 12/31/21 Senior • $1B available under revolver Note $750M • $113M capital returned to shareholders in 2.75% Senior dividends Note Senior • Utilized $316M of cash to repurchase shares $600M Note 3.75% $550M • 5.1M shar
Slide 16: Solid 4Q Cash Flow Performance
Solid 4Q Cash Flow Performance (1) (1) (1) (1) *Refer to the appendix for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. (1)The Company defines operating cash flow from continuing operations as operating cash flow less operating cash flow from discontinued op
Slide 17: FY 2022 Outlook
FY 2022 Outlook Business Segment 2022 Revenue Growth Primary Drivers • Proactive pricing measures gaining traction • Strong re-roofing demand and increasing demand for energy-efficient building Carlisle Construction Materials ~30% products • Henry acquisition Carlisle Interconnect Technologies ~10%
Slide 18: Appendix
vision (mw ~+/2¢ A k-yh E 2025 THE NEXT 100 YEARS Appendix
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, (in millions) 2021 2020 Net income (GAAP) $ 128.1 $ 80.6 Less: loss from discontinued operations (GAAP) (2.7) (1.6) Income from continuing operations (GAAP) 130.8 82.2 Provision for income taxes 29.4 7.7 Interest expense, net 22.1 18.
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2021 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 198.5 $ 6.6 $ 8.4 $ (31.0) Non-operating (income) expense(1) (0.6) (0.1) 0.3 0.7 EBIT 199.1 6.7 8.1 (31.7) Exit and disposal, and facility ratio
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2020 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 155.0 $ (13.3) $ 3.3 $ (33.7) Non-operating expense (income)(1) 0.6 0.2 (1.9) 4.4 EBIT 154.4 (13.5) 5.2 (38.1) Exit and disposal, and facility r
Slide 23: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended December 31, 2021 Three Months Ended December 31, 2020 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) $ 128.1 $ 2
Slide 24: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Organic Revenue Three Months Ended December 31, (in millions) CSL CCM CIT CFT 2020 Revenue (GAAP) $ 988.3 $ 760.8 $ 154.6 $ 72.9 Volume/Price 261.5 26.4 % 226.5 29.8 % 29.7 19.1 % 5.3 7.3 % Organic revenue 261.5 26.4 % 226.5 29.8 % 29.7 19.1 % 5.3 7.3 % Acquisitions
Slide 25: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Free Cash Flow Three Months Ended Year Ended December 31, December 31, (in millions) 2021 2020 2021 2020 Operating cash flow (GAAP) $ 137.8 $ 256.5 $ 421.7 $ 696.7 Less: operating cash flow from discontinued operations (0.4) 14.0 8.1 38.0 Operating cash flow from con
Slide 26: 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 12/31/2021 (in millions except for ratios) 12/31/2021 Income from continuing operations (GAAP) $ 387.0 Long-term debt, including current