Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2022 Earnings Presentation
25 slides from Carlisle Companies's earnings presentation, Feb 7, 2023
Slide 1: 4th Quarter 2022 Earnings Call
4th Quarter 2022 Earnings Call February 7, 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: Vision 2025 – Fourth Quarter and Full Year 2022 Highlights
Vision 2025 – Fourth Quarter and Full Year 2022 Highlights » Delivered record fourth quarter revenues of $1.5 billion » Delivered record fourth quarter GAAP Diluted EPS of $3.44 and 4Q Adjusted EPS of $3.92 » Delivered record FY 2022 revenues of $6.6 billion » Delivered record FY 2022 GAAP Diluted E
Slide 4: Vision 2025
Vision 2025 » Delivered organic revenue growth in excess of 5% » Fourth quarter: +7% » Full year 2022: +29% » Utilized the Carlisle Operating System (COS) effectively, driving efficiencies to enhance margins across segments » Continue to seek strategic acquisitions to complement pivot to Building Pr
Slide 5: Vision 2025 – Fourth Quarter 2022 Highlights
Vision 2025 – Fourth Quarter 2022 Highlights » Collectively, building products segments delivered record 4Q Production run of 16’ TPO line in Carlisle, PA sales and Adjusted EBITDA » Newest segment integration on track and Henry Company won The Home Depot’s Materials Vendor of the Year Award » State
Slide 6: Continued Commitment to Sustainability – Net-Zero 2050
Continued Commitment to Sustainability – Net-Zero 2050 » Announced commitment to achieve Net-Zero greenhouse gas emissions across its entire value chain by 2050 through the Science Based Targets Initiative (SBTi) » 3-pillars of Carlisle’s strategy » Develop energy efficient building products and sol
Slide 7: 4Q22 Results
4Q22 Results Financial Summary 4Q Revenue increased 5.7% year-over-year (in millions, except per share amounts and percentages) 4Q22 4Q21 Δ » Organic revenue up 6.6% driven by positive Revenues $1,454.6 $1,376.0 +5.7% pricing Operating income $239.6 $182.5 +31.3% » 0.2% acquisition growth Operating
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2022 2021 Change $ Change % Effect Revenues $ 800.4 $ 783.1 $ 17.3 2.2 % 3.0 % —% (0.8)% Operating income $ 213.3 $ 173.1 $ 40.2 23.2 % Operating m
Slide 9: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2022 2021 Change $ Change % Effect Revenues $ 349.5 $ 331.2 $ 18.3 5.5 % 5.5 % 0.8 % (0.8)% Operating income $ 22.5 $ 25.4 $ (2.9) (11.4)% Op
Slide 10: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2022 2021 Change $ Change % Effect Revenues $ 224.1 $ 184.4 $ 39.7 21.5 % 21.9 % —% (0.4)% Operating income $ 18.9 $ 6.6 $ 12.3 186.4 % Operatin
Slide 11: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2022 2021 Change $ Change % Effect Revenues $ 80.6 $ 77.3 $ 3.3 4.3 % 11.3 % —% (7.0)% Operating income $ 13.0 $ 8.4 $ 4.6 54.8 % Operating margin 16.1
Slide 12: 4Q22 Revenue Bridge
4Q22 Revenue Bridge Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 3.0% —% (0.8)% 2.2% CWT 5.5% 0.8% (0.8)% 5.5% CIT 21.9% —% (0.4)% 21.5% CFT 11.3% —% (7.0)% 4.3% * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 12
Slide 13: 4Q22 Adjusted EPS Bridge
4Q22 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 $400M as of 12/31/22 Senior » $1B available under revolver Note $750M » $134M capital returned to shareholders in 2.75% dividends Senior Note Senior » Deployed $400M of cash to repurchase $600M Note 3.75% $550M 1.6 shares 2.20% Senior » 3.4
Slide 15: 4Q22 Cash Flow Performance
4Q22 Cash Flow Performance * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 15
Slide 16: FY 2023 Outlook
FY 2023 Outlook Business Segment 2023 Revenue Growth Primary Drivers • Strong re-roofing activity Carlisle Construction Materials +LSD y/y • Pricing to the value of The Carlisle Experience • Increasing demand for energy-efficient building products • Headwinds in residential markets Carlisle Weatherp
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 Organic Revenue
Reconciliation to Organic Revenue Three Months Ended December 31, (in millions, except percentages) CSL CCM CWT CIT CFT 2021 Revenue (GAAP) $ 1,376.0 $ 783.1 $ 331.2 $ 184.4 $ 77.3 Organic revenue (volume/price) 90.8 6.6 % 23.5 3.0 % 18.1 5.5 % 40.4 21.9 % 8.8 11.3 % Acquisitions 2.7 0.2 % — — % 2.7
Slide 20: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Year Ended December 31, December 31, (in millions) 2022 2021 2022 2021 Operating cash flow (GAAP) $ 412.3 $ 137.8 $ 1,000.9 $ 421.7 Less: operating cash flow from discontinued operations (5.6) (0.4) (8.2) 8.1 Operating cash flow from continuing ope
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, (in millions, except percentages) 2022 2021 Net income (GAAP) $ 174.2 $ 128.1 Less: loss from discontinued operations (GAAP) (5.6) (2.7) Income from continuing operations (GAAP) 179.8Senior 130.8 Provision for income taxes 47.3 Note 2
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2022 Corporate and (in millions, except percentages) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 213.3 $ 22.5 $ 18.9 $ 13.0Senior $ (28.1) Non-operating (income) expense, net(1) (0.1) 0.4 0.6 0.3 Note (3.7) EBIT 213.4
Slide 23: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2021 Corporate and (in millions, except percentages) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 173.1 $ 25.4 $ 6.6 $ 8.4 $ (31.0) Non-operating (income) expense, net(1) (0.1) (0.5) (0.1) 0.3 0.7 EBIT 173.2 25.9 6.7 8
Slide 24: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended December 31, 2022 Three Months Ended December 31, 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) $ 174.2 $ 3
Slide 25: 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 ratios) LTM 12/31/2022 (in millions, except ratio) 12/31/2022 Income from continuing operations (GAAP) $ 925.2 Long-term debt, including current portion