Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2019 Earnings Presentation
15 slides from Carlisle Companies's earnings presentation, Jul 23, 2019
Slide 1: 2nd Quarter 2019 Earnings Conference Call
2nd Quarter 2019 Earnings Conference Call July 23, 2019
Slide 2: Forward-looking statements Non-GAAP financial measures
Forward-looking statements Non-GAAP financial measures During this presentation, we make certain forward-looking Certain ratios related to our Revolving Credit Facility of Earnings statements concerning plans and expectations for Carlisle before Interest, Income Taxes, Depreciation and Amortization
Slide 3: Continued Execution of Vision 2025
Continued Execution of Vision 2025 • Organic revenue growth of 4% YTD • Demonstrated sustained price leadership across all segments, driving over ~25% increase in operating income YTD • Realized YTD COS savings and benefits of 1.2%, in line with our targeted 1-2% of annual sales • Returned approxima
Slide 4: 2019 Q2 Highlights
2019 Q2 Highlights Record Q2 revenue, up 6.4% Financial Summary • 2.3% organic revenue growth (in millions, except per share amounts) Q2 '19 Q2 '18 Δ ◦ Solid organic growth at CCM Revenues $1,314.8 $1,236.1 +6.4% ◦ Strong price realization across all segments Operating income $207.2 $159.7 +29.7% •
Slide 5: 2019 Q2 Revenue Bridge
2019 Q2 Revenue Bridge +4.7% -0.6% $1.31B Organic Revenue by Segment Construction Materials +4.7% Interconnect Technologies +2.2% +2.3% Fluid Technologies -11.7% Brake & Friction -7.0% $1.24B Q2 '18 Organic Acquisitions FX Q2 '19 (in millions) 4th Quarter 2017 Earnings Call 5
Slide 6: 2019 Q2 Operating Margin Bridge
2019 Q2 Operating Margin Bridge +1.2% -0.6% +0.5% +0.4% 15.8% +1.4% 12.9% Q2 '18 Price/Volume COS Acquisitions Raw Materials/ Restructuring/ Q2 '19 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6
Slide 7: 2019 Q2 EPS Bridge
2019 Q2 EPS Bridge $2.65 +$0.15 +$0.05 +$0.17 +$0.04 +$0.13 $1.87 +$0.24 Q2 '18 Volume/Price Material, COS Tax Items Share Other Q2 '19 Freight & Labor Repurchase 4th Quarter 2017 Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 915.0 $ 828.6 $ 86.4 10.4% 6.1% 4.7% (0.4)% Operating income $ 182.5 $ 141.4 $ 41.1 29.1% Operating margin percentage 19.9% 1
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 245.4 $ 237.7 $ 7.7 3.2% 1.6% 2.2% (0.6)% Operating income $ 35.9 $ 27.5 $ 8.4 30.5% Operating margin percentage 14.6% 11.
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended June 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 67.3 $ 73.3 $ (6.0) (8.2)% 5.9% (11.7)% (2.4)% Operating income $ 3.3 $ 7.8 $ (4.5) (57.7)% Operating margin percentage 4.9% 10.6
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended June 30, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 87.1 $ 96.5 $ (9.4) (9.7)% —% (7.0)% (2.7)% Operating income $ 8.3 $ 2.9 $ 5.4 186.2 % Operating margin percentage 9.5% 3.0% +650bp
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $422.0M as of 6/30/19 • $1B available under revolver Debt Maturity Schedule • $46.2M capital returned to shareholders in Senior dividends YTD Note $600M • Utilized $232.1M of cash YTD to repurchase 3.75% Senior shares Senior Note ◦ 5.8M sha
Slide 13: Cash Flow
Cash Flow $350 $250 (in millions) $150 $50 -$50 -$150 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Operating Cash Flow Capital Expenditures Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Operating Cash Flow $(36.0) $105.4 $236.6 $109.8 $87.3 Capital Expenditures $(24.4) $(29.2) $(24.6) $(23.3) $(17.7) Free Cash Flow * $(
Slide 14: 2019 Outlook
2019 Outlook Restructuring, facility FY 2019 FY2019 rationalization acquisition/ Revenue divestiture related items (in $M) Corporate Expense ~$95M Growth y/y 2Q19A 3Q19F FY19 D&A ~$200M CCM LDD $0.2 ~$0-1 ~$3-4 CapEx ~$110M CIT MSD to HSD $2.4 ~$4-5 ~$14-16 FCF Conversion >110% CFT MSD $1.3 ~$0-1 ~$
Slide 15: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Unaudited Leverage Ratios under Credit Agreement Net Debt to Capital Ratio (in millions except for ratios) Capital (in millions except for ratios) LTM 6/30/2019 Total debt $ 1,600 Net debt $ 1,178 Income from Continuing Operations $ 417 Less: cash $ 422 To