Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2022 Earnings Presentation
26 slides from Carlisle Companies's earnings presentation, Jul 27, 2022
Slide 1: 2nd Quarter 2022 Earnings Call
2nd Quarter 2022 Earnings Call July 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: Progress Since Vision 2025 Launch
Progress Since Vision 2025 Launch 2016 $6.78 Adj EPS* Exceeding Vision 2025 Target Vision 2030 Leverage ▪ Early realization The “Pivot” ESG Mega of Vision 2025 ▪ Pivot to Building Trends ▪ Applying these Enhanced foundational M&A Products ▪ Roofing systems, CCM Price insulation, and pillars, Process
Slide 4: Vision 2025 – Second Quarter 2022 Highlights
Vision 2025 – Second Quarter 2022 Highlights » Delivered 42% organic revenue and 146% Adjusted EBITDA growth; achieved consolidated 22% operating margins » COS savings and benefits in line with target » Henry acquisition exceeding expectations » Continued superior capital allocation » $52M capital i
Slide 5: Drivers of Record Performance
Drivers of Record Performance » Strong re-roofing demand coupled with increasing ratio of insulation to membrane » Delivering The Carlisle Experience – The right product at the right place at the right time » Seeking synergistic and accretive acquisitions such as Henry » Continued superior capital a
Slide 6: Continued Commitment to ESG
Continued Commitment to ESG » Continue to align our GHG reduction strategy with the Science Based Targets initiative » Began installation of solar panels on CCM’s Waltershausen, Germany facility, which will generate 25% of the site’s electricity » Approved the purchase of equipment to recycle produc
Slide 7: 2Q22 Results
2Q22 Results 2Q Revenue increased 57% y/y Financial Summary » Organic revenue up 42.2% driven by volume (in millions, except per share amounts) 2Q22 2Q21 Δ growth and positive pricing Revenues $1,846.9 $1,177.8 +56.8% » Continued strong demand for Commercial Operating income $410.6 $133.8 +206.9% Ro
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 1,113.4 $ 722.8 $ 390.6 54.0 % 54.9 % —% (0.9)% Operating income $ 358.9 $ 155.0 $ 203.9 131.5 % Operating margin 32.2 % 21.4
Slide 9: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 448.9 $ 214.5 $ 234.4 109.3 % 24.4 % 85.3 % (0.4)% Operating income $ 59.0 $ 22.4 $ 36.6 163.4 % Operating margin 13.1
Slide 10: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 212.6 $ 168.9 $ 43.7 25.9 % 26.1 % —% (0.2)% Operating income (loss) $ 7.9 $ (12.9) $ 20.8 NM Operating margin 3.7 % (7.6)
Slide 11: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume Effect Rate Effect (in millions) 2022 2021 Change $ Change % Effect Revenues $ 72.0 $ 71.6 $ 0.4 0.6 % 5.5 % —% (4.9)% Operating income $ 7.0 $ 6.6 $ 0.4 6.1 % Operating margin 9.7 % 9.2 % +50 bps Depreciatio
Slide 12: 2Q22 Revenue Bridge
2Q22 Revenue Bridge Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 54.9% —% (0.9)% 54.0% CWT 24.4% 85.3% (0.4)% 109.3% CIT 26.1% —% (0.2)% 25.9% CFT 5.5% —% (4.9)% 0.6% * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measure
Slide 13: 2Q22 Adjusted EPS Bridge
2Q22 Adjusted EPS* Bridge * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 13
Slide 14: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization » Cash on hand of $353M as of June 30, 2022 » $1B available under revolver Senior Note » $28M capital returned to shareholders in dividends $750M » Utilized $50M of cash to repurchase shares Senior 2.75% » 4.3M shares remaining under authorization as Note Se
Slide 15: 2Q22 Cash Flow Performance
2Q22 Cash Flow Performance * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 15
Slide 16: FY 2022 Outlook
FY 2022 Outlook Business Segment 2022 Revenue Growth Primary Drivers • Proactive pricing measures Carlisle Construction Materials ~40% • Strong re-roofing and new construction activity • Increasing demand for energy-efficient building products • Henry acquisition Carlisle Weatherproofing Technologie
Slide 17: Financial Reconciliations
et C_ ARLISL E 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 18: 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 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, (in millions) 2022 2021 Net income (GAAP) $ 301.5 $ 99.3 Less: income from discontinued operations (GAAP) 5.6 5.2 Income from continuing operations (GAAP) Senior 295.9 94.1 Provision for income taxes Note 90.4 19.8 Interest expense, net $
Slide 20: Reconciliation to Adjusted EBITDA (2022 by segment)
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2022 Corporate and (in millions) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 358.9 $ 59.0 $ 7.9 $ 7.0 Senior$ (22.2) Non-operating expense (income)(1) 0.9 0.1 (0.3) — Note 1.8 EBIT 358.0 58.9 8.2 7.0 $750 (24.0) Exit and
Slide 21: Reconciliation to Adjusted EBITDA (2021 by segment)
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2021 Corporate and (in millions) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 155.0 $ 22.4 $ (12.9) $ 6.6 $ (37.3) Non-operating expense (income)(1) — 0.1 — 1.1 (0.1) EBIT 155.0 22.3 (12.9) 5.5 (37.2) Exit and disposal, an
Slide 22: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended June 30, 2022 Three Months Ended June 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) $ 301.5 $ 5.73 $ 99
Slide 23: Reconciliation to Adjusted Diluted EPS (2016)
Reconciliation to Adjusted Diluted EPS Year Ended December 31, 2016 Pre-tax Post-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 250.1 $ 3.86 Less: loss from discontinued operations (GAAP) (0.7) (0.01) Income from continuing operations (GAAP)
Slide 24: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended June 30, (in millions) CSL CCM CWT CIT CFT 2021 Revenue (GAAP) $ 1,177.8 $ 722.8 $ 214.5 $ 168.9 $ 71.6 Volume/Price 497.0 42.2 % 396.9 54.9 % 52.2 24.4 % 44.0 26.1 % 3.9 5.5 % Organic revenue 497.0 42.2 % 396.9 54.9 % 52.2 24.4 % 44.0 26.1 % 3.9
Slide 25: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Six Months Ended June 30, June 30, (in millions) 2022 2021 2022 2021 Operating cash flow (GAAP) $ 179.2 $ 103.9 $ 223.5 $ 171.5 Less: operating cash flow from discontinued operations (1.4) 7.3 (2.1) 10.8 Operating cash flow from continuing operatio
Slide 26: Reconciliation of 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 6/30/2022 (in millions except for ratios) 6/30/2022 Income from continuing operations (GAAP) $ 734.0 Long-term debt, including current po