Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2021 Earnings Presentation
24 slides from Carlisle Companies's earnings presentation, Jul 22, 2021
Slide 1: 2nd Quarter 2021 Earnings Call
2nd Quarter 2021 Earnings Call July 22, 2021
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: Vision 2025 On Track in Q2
Vision 2025 On Track in Q2 • Drive 5%+ Organic Growth • Delivered 20.7% organic growth • Utilize COS to drive operating leverage, reducing costs annually by 1-2% of sales • Delivered 1% of savings, cost avoidance, benefits • Re-shape portfolio with synergistic acquisitions • Announced divestiture of
Slide 4: 2Q21 Results
2Q21 Results 2Q revenue increased 22% y/y Financial Summary • Organic revenue up 20.7% driven by strong (in millions, except per share amounts) 2Q21 2Q20 Δ demand across all CCM product lines Revenues $1,177.8 $965.4 +22.0% • 0.4% acquisition growth Operating income $133.8 $114.5 +16.9% • FX had a f
Slide 5: CCM Executing Well
CCM Executing Well • Evolving from a roofing company into a diversified building Broke ground on Phase 2 of German facility expansion envelope solutions provider • Value of The Carlisle Experience demonstrated by tireless work of CCM team during 2Q demand surge • Playing an important role in reducin
Slide 6: Vision 2025 – Continued Building Envelope Expansion
Vision 2025 – Continued Building Envelope Expansion Acquisition of a complementary, best-in-class provider of Building Envelope Systems (BES) that control the flow of water, vapor, air and energy in a building to minimize air, water and energy loss Carlisle Augmenting/Adding Several Carlisle’s Energ
Slide 7: Continued Progress on Commitment to ESG
Continued Progress on Commitment to ESG • Enhanced and data focused 2020 CSR Report • Making solid progress gathering data to set achievable energy consumption and GHG reduction targets • Joined US Green Building Council as Platinum Member • Held Day of Understanding across company throughout April
Slide 8: 2Q21 Revenue Bridge
2Q21 Revenue Bridge +0.4% +0.9% +20.7% Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 26.8% —% 0.7% 27.5% CIT (9.7)% 1.1% 0.4% (8.2)% CFT 44.3% 3.6% 6.1% 54.0% *Refer to the appendix for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. 8
Slide 9: 2Q21 Adjusted EPS Bridge
2Q21 Adjusted EPS* Bridge *Refer to the appendix for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. 9
Slide 10: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 937.3 $ 734.9 $ 202.4 27.5 % —% 26.8 % 0.7 % Operating income $ 177.4 $ 137.6 $ 39.8 28.9 % Operating margin 18.9 % 18.7 % +2
Slide 11: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 168.9 $ 184.0 $ (15.1) (8.2)% 1.1 % (9.7)% 0.4 % Operating loss $ (12.9) $ (1.5) $ (11.4) (760.0)% Operating margin (7.6)%
Slide 12: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended June 30, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 71.6 $ 46.5 $ 25.1 54.0 % 3.6 % 44.3 % 6.1 % Operating income (loss) $ 6.6 $ (5.2) $ 11.8 226.9 % Operating margin 9.2 % (11.2)%
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Highlights • Cash on hand of $713M as of 6/30/21 Senior Note • $1B available under revolver $750M 2.75% • $28M capital returned to shareholders in Senior Note dividends $600M 3.75% • Utilized $116M of cash to repurchase shares • 5.3M shares remaining under S
Slide 14: Solid 2Q Cash Flow Performance
Solid 2Q Cash Flow Performance $210.9 $160.7 $161.8 $96.6 $167.6 $139.7 $111.2 $64.6 $32.0 $22.1 $49.5 $43.3 Operating Cash Flow from Continuing Operations Capital Expenditures from Continuing Operations Free Cash Flow from Continuing Operations* *Refer to the appendix for a reconciliation of non-GA
Slide 15: FY 2021 Outlook
FY 2021 Outlook Business Segment 2021 Revenue Outlook Primary Drivers • Strong re-roofing demand Carlisle Construction Materials +High-teens • Price discipline • Strong Architectural Metals, European, Polyurethane markets Carlisle Interconnect Technologies -MSD/HSD • Commercial Aerospace performance
Slide 16: Appendix
TL f AAFOL ISL E 2025 THE NEXT 100 YEARS Appendix
Slide 17: 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 18: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, (in millions) 2021 2020 Net income (GAAP) $ 99.3 $ 75.4 Less: income from discontinued operations (GAAP) 5.2 (0.6) Income from continuing operations (GAAP) 94.1 76.0 Provision for income taxes 19.8 22.1 Interest expense, net 19.2 19.7 Int
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2021 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 177.4 $ (12.9) $ 6.6 $ (37.3) Non-operating (income) expense(1) 0.1 — 1.1 (0.1) EBIT 177.3 (12.9) 5.5 (37.2) Exit and disposal, and facility rationa
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2020 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 137.6 $ (1.5) $ (5.2) $ (16.4) Non-operating (income) expense(1) 2.6 0.2 — (3.5) EBIT 135.0 (1.7) (5.2) (12.9) Exit and disposal, and facility ratio
Slide 21: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended June 30, 2021 Three Months Ended June 30, 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) $ 99.3 $ 1.87 $ 75.
Slide 22: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Organic Revenue Three Months Ended June 30, (in millions) CSL CCM CIT CFT 2020 Revenue (GAAP) $ 965.4 $ 734.9 $ 184.0 $ 46.5 Volume/Price 200.2 20.7 % 197.4 26.8 % (17.8) (9.7)% 20.6 44.3 % Organic revenue 200.2 20.7 % 197.4 26.8 % (17.8) (9.7)% 20.6 44.3 % Acquisit
Slide 23: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Operating cash flow (GAAP) $ 103.9 $ 173.1 $ 171.5 $ 226.3 Less: operating cash flow from discontinued operations 7.3 11.3 10.8 15.4 Operating cash flow from contin
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 for ratios) LTM 6/30/2021 (in millions except for ratios) 6/30/2021 Income from continuing operations (GAAP) $ 330.2 Long-term debt, including current po