Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q3 2021 Earnings Presentation
25 slides from Carlisle Companies's earnings presentation, Oct 21, 2021
Slide 1: 3rd Quarter 2021 Earnings Call
3rd Quarter 2021 Earnings Call October 21, 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 Refo rm Act of 1995. Fo rward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “b elieve,” “project,
Slide 3: 3Q21 Highlights
3Q21 Highlights • Growth accelerating across all of our businesses • Proactive pricing in anticipation of higher raw material costs offset weather, supply chain and labor constraints • Focused on expanding presence in Building Envelope and increasing content of energy-efficiency products in portfoli
Slide 4: Continued Progress on Commitment to ESG
Continued Progress on Commitment to ESG • Leveraging COS to conduct energy audits at our manufacturing facilities, identify opportunities for energy and GHG reduction, and establish achievable energy reduction targets by 2022 • Enhanced our portfolio of energy-efficient products with the acquisition
Slide 5: 3Q21 Results
3Q21 Results Q3 revenue increased 25% y/y Financial Summary • Organic revenue up 19.4% driven by strong (in millions, except per share amounts) 3Q21 3Q20 Δ demand across all CCM product lines and Revenues $1,315.6 $1,057.0 +24.5% continued recovery at CIT and CFT Operating income $166.5 $154.8 +7.6%
Slide 6: CCM – Solutions from the Ground Up
CCM – Solutions from the Ground Up 6
Slide 7: Further Expansion into Global Building Envelope Markets
Further Expansion into Global Building Envelope Markets Spray Foam Insulation Architectural Metals Europe Weather, Vapor, Air, Energy Barrier Systems (Henry) ~$3B market growing HSD ~$2.5B market growing ~2x GDP ~$10B+ market opportunity ~$3B market opportunity Opportunities/Key Drivers: Opportuniti
Slide 8: Continued Recovery at CIT and CFT
Continued Recovery at CIT and CFT CIT • Returned to revenue growth and positive adjusted EBIT in Q3 • Took significant actions in 2020 and 2021 to right-size the footprint – CIT positioned for return to profitable growth • Demand for narrow-body aircraft driving order growth; subdued wide-body produ
Slide 9: 3Q21 Revenue Bridge
3Q21 Revenue Bridge +4.8% +0.3% +19.4% Y/Y Revenue Change by Segment Segment Organic Acquisitions FX Total CCM 23.3% 6.0% 0.1% 29.4% CIT 5.2% 0.5% 0.4% 6.1% CFT 6.3% 0.9% 2.2% 9.4% *Ref er to the appendix f or a reconciliation of non-GAAP f inancial measures to the related GAAP f inancial measures.
Slide 10: 3Q21 Adjusted EPS Bridge
3Q21 Adjusted EPS* Bridge *Ref er to the appendix f or a reconciliation of non-GAAP f inancial measures to the related GAAP f inancial measures. 10
Slide 11: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended September 30, Price / Acquisition Exchange Volum e Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 1,065.8 $ 823.5 $ 242.3 29.4 % 23.3 % 6.0 % 0.1 % Operating income $ 187.1 $ 181.3 $ 5.8 3.2 % Operating margin 17.6 %
Slide 12: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended September 30, Price / Acquisition Exchange Volum e Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 178.7 $ 168.5 $ 10.2 6.1 % 5.2 % 0.5 % 0.4 % Operating loss $ (0.5) $ (3.7) $ 3.2 86.5 % Operating margin (0.3)% (2.
Slide 13: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended September 30, Price / Acquisition Exchange Volum e Effect Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 71.1 $ 65.0 $ 6.1 9.4 % 6.3 % 0.9 % 2.2 % Operating income $ 4.7 $ 4.4 $ 0.3 6.8 % Operating margin 6.6 % 6.8 % -20 bps Dep
Slide 14: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Highlights • Cash on hand of $296M as of 9/30/21 Senior • $1B available under revolver Note $750M • $28M capital returned to shareholders in dividends 2.75% Senior • Utilized $25M of cash to repurchase shares Note Senior $600M Note • 5.2M shares remaining un
Slide 15: Solid Q3 Cash Flow Performance
Solid Q3 Cash Flow Performance (1) (1) (1) (1) *Ref er to the appendix f or a reconciliation of non-GAAP f inancial measures to the related GAAP f inancial measures. (1)The Company def ines operating cash f low f rom continuing operations as operating cash f low less operating cash f low f rom disco
Slide 16: FY 2021 Outlook
FY 2021 Outlook Business Segment 2021 Revenue Outlook Primary Drivers • Strong re-roofing demand Carlisle Construction Materials +Mid-20% • Increasing demand for energy-efficient building products • Proactive pricing measures gaining traction Carlisle Interconnect Technologies -MSD • Commercial Aero
Slide 17: Appendix
TE CE LARLISLE 2025 THE NEXT 100 YEARS Appendix
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the follow ing financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Adjusted EBITDA, w hich the Company defines as net income excluding income/loss fro
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, (in millions) 2021 2020 Net income (GAAP) $ 142.1 $ 102.3 Less: income (loss) from discontinued operations (GAAP) 29.1 (0.4) Income from continuing operations (GAAP) 113.0 102.7 Provision for income taxes 33.0 33.2 Interest expense,
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2021 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 187.1 $ (0.5) $ 4.7 $ (24.8) Non-operating expense (income)(1) 0.4 (0.1) (0.2) 0.8 EBIT 186.7 (0.4) 4.9 (25.6) Exit and disposal, and facility
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended September 30, 2020 Corporate and (in millions) CCM CIT CFT unallocated Operating income (loss) (GAAP) $ 181.3 $ (3.7) $ 4.4 $ (27.2) Non-operating expense (income)(1) 0.3 0.2 0.1 (0.1) EBIT 181.0 (3.9) 4.3 (27.1) Exit and disposal, and facility ra
Slide 22: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Pre-tax Post-tax Im pact to Pre-tax Post-tax Im pact to (in millions, except per share amounts) Im pact Im pact(1) Diluted EPS(2) Im pact Im pact (1) Diluted EPS(2) Net income (GAAP) $
Slide 23: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Organic Revenue Three Months Ended September 30, (in millions) CSL CCM CIT CFT 2020 Revenue (GAAP) $ 1,057.0 $ 823.5 $ 168.5 $ 65.0 Volume/Price 204.4 19.4 % 191.5 23.3 % 8.8 5.2 % 4.1 6.3 % Organic revenue 204.4 19.4 % 191.5 23.3 % 8.8 5.2 % 4.1 6.3 % Acquisitions
Slide 24: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Operating cash flow (GAAP) $ 112.4 $ 213.9 $ 283.9 $ 440.2 Less: operating cash flow from discontinued operations (2.3) 8.6 8.5 24.0 Operating cash flow
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 for ratios) LTM 9/30/2021 (in millions except for ratios) 9/30/2021 Income from continuing operations (GAAP) $ 340.9 Long-term debt, including current po