Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2023 Earnings Presentation
22 slides from Carlisle Companies's earnings presentation, Oct 26, 2023
Slide 1: 3rd Quarter 2023 Earnings Call
3rd Quarter 2023 Earnings Call October 26, 2023
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This press release 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: 3Q23 Results
3Q23 Results 3Q Revenue decreased 16% y/y: Financial Summary » Fed Actions driving market softness (in millions, except per share amounts and percentages) 3Q23 3Q22 Δ » Residual inventory destocking Revenues $1,259.8 $1,497.0 (15.8)% Strong 3Q Adjusted EBITDA margin of 27% Operating income $299.9 $3
Slide 4: Carlisle's Long-Term Value Creation Drivers
Carlisle’s Long-Term Value Creation Drivers » CCM multi-year backlog driven by re-roofing cycle » CWT non-discretionary R&R balanced with long- term new residential growth to solve housing shortage » Growing demand for green building & energy efficient system solutions » Innovation to deliver higher
Slide 5: Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050
Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050 Our 3 Pillars And Near-Term Targets Progress 1 Carlisle sold more than $3.5 billion worth of LEED qualified products in 2022 1 Transitioned 50% of our spray foam blowing agents from Hydrofluorocarbons (HFC’s) to 1 Hyrdofluroelefins (HFO
Slide 6: ESG Dashboard – Carlisle's Impact Is Clear and Measurable
ESG Dashboard – Carlisle’s Impact Is Clear and Measurable 155M MWh of energy will be saved based on Equivalent to the amount of energy required to power almost Carlisle product sales in 20221 14 million homes for a year $3.5B 33M metric tons of GHG will be avoided based on products sold in 20221 Equ
Slide 7: Vision 2025 Put Our Foundational Pillars In Place
Vision 2025 Put Our Foundational Pillars In Place » Deliver mid-single-digit organic revenue growth » Utilize the Carlisle Operating System ("COS") effectively to enhance productivity » Seek accretive, strategic acquisitions with a focus on Building Products » Maintain a disciplined, returns-focused
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Acquisition Exchange Organic (in millions, except percentages) 2023 2022 Change $ Change % Effect Rate Effect Revenues $ 914.0 $ 1,090.3 $ (176.3) (16.2)% (16.5)% —% 0.3 % Operating income $ 272.5 $ 341.7 $ (69.2) (20.3)% Operating mar
Slide 9: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended September 30, Acquisition Exchange Organic (in millions, except percentages) 2023 2022 Change $ Change % Effect Rate Effect Revenues $ 345.8 $ 406.7 $ (60.9) (15.0)% (14.9)% —% (0.1)% Operating income $ 58.8 $ 9.6 $ 49.2 512.5 % Operating marg
Slide 10: 3Q23 Adjusted EPS Bridge
3Q23 Adjusted EPS* Bridge $0.09 $0.21 $5.04 $0.12 $1.13 $(0.21) $4.68 $(1.70) 3Q22 Adj. EPS* Volume/Price/Mix Materials/Freight/Labor COS Share Repurchases Interest/Tax Opex/Other 3Q23 Adj. EPS* * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial me
Slide 11: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization » Cash on hand of $108M as of September 30, 2023 » Repaid $300M Senior Note in 3Q23 SeniorSenior Note Note » $1B available under revolver $750M$750M 2.75%2.75% » $42M in dividends paid in 3Q23 Senior Senior Note Note Senior Senior » Repurchased 1.2M shares f
Slide 12: 3Q23 Cash Flow Performance
3Q23 Cash Flow Performance $700 $661.9 $600 $87.0 $542.6 $500 $111.5 $390.1 (in millions) $400 $30.0 $342.5 $300 $41.4 $574.9 $200 $431.1 $360.1 $301.1 $100 $0 3Q23 3Q22 YTD23 YTD22 Operating Cash Flow from Continuing Operations* Capital Expenditures from Continuing Operations* Free Cash Flow from C
Slide 13: 2023 Outlook
2023 Outlook Year over Year Outlook Q4 Primary Drivers • Medium term end market challenges driven by higher interest rates, tighter lending and project delays CCM Revenue -3% to -5% • Contractor backlog remains strong driven by re-roof cycle • Headwinds in residential markets CWT Revenue ~ -10% • Pa
Slide 14: Financial Reconciliations
Lt CF ARLISL E 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 15: 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 16: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended September 30, (in millions, except percentages) CSL CCM CWT 2022 Revenue (GAAP) $ 1,497.0 $ 1,090.3 $ 406.7 Organic (240.3) (16.1) % (179.7) (16.5) % (60.6) (14.9) % Acquisitions — — % — — % — — % FX impact 3.1 0.3 % 3.4 0.3 % (0.3) (0.1) % Total
Slide 17: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2023 2022 2023 2022 Operating cash flow (GAAP) $ 441.7 $ 365.1 $ 812.4 $ 588.6 Less: operating cash flow from discontinued operations 51.6 22.6 150.5 46.0 Operating cash flow from continui
Slide 18: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, (in millions, except percentages) 2023 2022 Net income (GAAP) $ 265.6 $ 254.7 Less: Income from discontinued operations (GAAP) 48.7 21.4 Income from continuing operations (GAAP) 216.9Senior 233.3 Provision for income taxes 66.6 Note
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2023 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 272.5 $ 58.8 Senior $ (31.4) Non-operating expense (income), net(1) 0.3 (0.2) Note 0.5 EBIT 272.2 59.0 $750 (31.9) Exit and dis
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2022 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 341.7 $ 9.6 $ (27.3) Non-operating expense, net(1) 1.2 0.2 0.5 EBIT 340.5 9.4 (27.8) Inventory step-up amortization and transac
Slide 21: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 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) $ 265.6 $
Slide 22: 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 LTM 9/30/2023 (in millions, except percentages) 9/30/2023 (in millions, except ratios) Income from continuing operations (GAAP) $ 707.0 Long-term debt, including current por