Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2018 Earnings Presentation
16 slides from Carlisle Companies's earnings presentation, Apr 24, 2018
Slide 1: 1st Quarter 2018 Earnings Conference Call
1st Quarter 2018 Earnings Conference Call April 24, 2018
Slide 2: Forward-looking statements; Non-GAAP financial measures
Forward-looking statements During this presentation, we make certain forward-looking statements concerning plans and expectations for Carlisle Companies Incorporated. We caution you that actual events or results may differ materially from our plans and expectations. See our Form 10-K for 2017 filed
Slide 3: Vision 2025: The Next 100 Years
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Slide 4: 2018 Q1 Highlights
2018 Q1 Highlights Financial Summary • Record Q1 Revenues up 27% ($ millions, except per share amounts) Q1 ’18 Q1 ‘17 Δ ‒ 8.8% organic revenue growth Revenues $984.7 $774.0 +27.2% ‒ Strong growth at CCM, CIT, CBF Operating Income $94.7 $89.5 +5.8% ‒ 15.5% acquisition growth Income from Continuing Op
Slide 5: 2018 Q1 Revenue Bridge
2018 Q1 Revenue Bridge +15.5% +1.5% $984.7 +8.8% +1.4% $774.0 Organic by Segment Construction Materials: +6.3% Interconnect Technologies: +9.8% Fluid Technologies -0.1% Brake & Friction +28.5% Q1 '17 Organic Revenue Acq F/X Q1 '18 Recognition In $ millions 5
Slide 6: 2018 Q1 Operating Margin Bridge
2018 Q1 Operating Margin Bridge +1.5% -1.9% +0.6% 11.6% -2.1% -0.1% 9.6% Q1 '17 Revenues COS Acq Raw Materials/ Restructuring/ Q1 '18 Other Operating Rationalization Costs Costs 6
Slide 7: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended March 31, Price / Acquisition Exchange Effect Volume Rate Effect (in millions) 2018 2017 Change $ Change % Effect Revenues $ 598.6 $ 446.1 $ 152.5 34.2 % 26.9 % 6.3 % 1.0 % Operating income $ 75.8 $ 80.7 $ (4.9) (6.1 )% Operating margin percentage 1
Slide 8: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended March 31, Price / Acquisition Exchange Effect Volume Rate Effect (in millions) 2018 2017 Change $ Change % Effect Revenues $ 224.3 $ 194.2 $ 30.1 15.5 % —% 15.3 % 0.2 % Operating income $ 27.2 $ 21.5 $ 5.7 26.5 % Operating margin percentage 12.1
Slide 9: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended March 31, Price / Acquisition Exchange Effect Volume Rate Effect (in millions) 2018 2017 Change $ Change % Effect Revenues $ 63.5 $ 60.5 $ 3.0 5.0 % —% (0.1 )% 5.1 % Operating income $ 5.7 $ 4.9 $ 0.8 16.3 % Operating margin percentage 9.0 % 8.1 % Items
Slide 10: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended March 31, Price / Acquisition Exchange Effect Volume Rate Effect (in millions) 2018 2017 Change $ Change % Effect Revenues $ 98.3 $ 73.2 $ 25.1 34.3 % —% 28.5 % 5.8 % Operating income $ 4.5 $ 1.2 $ 3.3 275.0 % Operating margin percentage 4.6 % 1.6 % Items
Slide 11: Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items
Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items $ millions Q1 2018 Q2 2018 Forecast FY 2018 Forecast CCM ($1.8) - ~$5 CIT $2.6 ~$1-2 ~$7-8 CFT $0.5 ~$0-1 ~$1-2 CBF $2.0 ~$3-4 ~$10-12 Corp $1.1 ~$0-1 ~$2-3 Total OI Pre-Tax $4.4 ~$4-8 ~$20-25 11
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Debt Maturity Schedule • Cash on Hand of $979.1M as of 3/31/18 • $1B available under revolver Senior Note • $23M capital returned YTD to shareholders in $600M 3.75% quarterly dividends Senior Note • Repurchased $129M of shares YTD Senior $400M Note 3.50% • 5
Slide 13: Cash Flow
Cash Flow $200 $150 In Millions $100 $50 $0 -$50 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Operating Cash Flow Capital Expenditures Free Cash Flow* Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Operating Cash Flow $ 31.9 $ 102.8 $ 164.9 159.1 $ 33.2 Capital Expenditures $ (30.4) $ (35.7) $ (39.7) $ (54.1) $ (42.5) Fr
Slide 14: 2018 Outlook
2018 Outlook • Total net revenue growth from • Corporate Expense ~$70M continuing operations in mid-to-high • Depreciation & Amortization ~$190M teens • Capital Expenditures ~$135-160M ‒ CCM: up low twenties • Free cash flow conversion ~100%** ‒ CIT: exceed 10% • Net Interest Expense ~$60-70M ‒ CFT:
Slide 15: Appendix
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Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio LTM ($ in Millions except for Ratios) Capital ($ in Millions except for Ratios) LTM 3/31/2018 Total Debt $1,600 Net Debt 621 Net income $613 Less: Cash 979 Total shareholders' equity 2,720 In