Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2017 Earnings Presentation
18 slides from Carlisle Companies's earnings presentation, Jul 25, 2017
Slide 1: 2nd Quarter 2017 Earnings Call
2nd Quarter 2017 Earnings Call July 25, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 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,” “should,” “estimate,” “will,”
Slide 3: 2017 Q2 Highlights
2017 Q2 Highlights • Record quarterly sales $1.1B, +7.5% Financial Summary ‒ CCM sales growth in excess of favorable ($ millions, except per share amounts) Q2 ’17 Q2 ‘16 Δ non-residential market growth rates ‒ CFT and CBF experienced strong top-line Net Sales $1,071.7 $996.9 +7.5% Income from Contin
Slide 4: 2017 Q2 Sales Bridge
2017 Q2 Sales Bridge $1,071.7 +4.2% -0.7% +4.2% Organic by Segment $996.9 -0.2% Construction Materials +8% Interconnect Technologies -11% FoodService Products +3% Fluid Technologies +8% Brake & Friction +11% Q2 '16 Price Volume Acq F/X Q2 '17 in $ Millions 2nd Quarter 2017 Earnings Call 4
Slide 5: 2017 Q2 EBIT Margin
2017 Q2 EBIT Margin 17.9% -1.8% -1.9% -0.4% +0.8% -0.4% +0.6% 14.8% Q2 '16 Price/RM Mix/Other Volume COS Acq Restructuring/ Q2 '17 Investments Facility EBIT: $178.9 Million EBIT: $158.8 Million Rationalization 2nd Quarter 2017 Earnings Call 5
Slide 6: Carlisle Construction Materials
Carlisle Construction Materials • Net Sales increased 8.4% − US Commercial Roofing up 7.2% +8.4% Acq − Acquisitions added 0.7% − Offset by lower selling price of -0.7% • EBIT down 3.1% from $133.1M to $129.0M − Margin down 240 bps to 20.4% − 3 of last 5 quarters above 20% EBIT − Higher sales volume
Slide 7: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies • Net Sales declined 3.6% -3.6% Acq − Organic net sales declined 10.7% − Micro-Coax and Star Aviation acquisitions added 7.3% • EBIT down 49.2% from $39.6M to $20.1M − Lower sales volume and unfavorable mix − Pre-tax facility rationalization and restructuring costs
Slide 8: Carlisle FoodService Products
Carlisle FoodService Products • Net Sales up 38.3% +38.3% ‒ Organic net sales increased 2.6% Acq ‒ San Jamar added 35.7% • EBIT up 47.6% from $8.2M to $12.1M ‒ San Jamar contribution, favorable mix, higher selling prices, COS savings • Integration of San Jamar on track $ millions 2nd Quarter 2017 Ea
Slide 9: Carlisle Fluid Technologies
Carlisle Fluid Technologies • Net Sales up 4.1% +4.1% − Sales up 17.4% sequentially from Q1 2017 − Organic net sales increased 7.9% − Offset by -3.8% FX • EBIT up 2.7% from $7.3M to $7.5M − Higher sales volume, COS savings − Continued investments and realignment to support global growth strategy $ m
Slide 10: Carlisle Brake & Friction
Carlisle Brake & Friction • Net Sales up 9.0% − Construction up 14.1% − Mining up 44.1% +9.0% − Agriculture up 20.1% − Aircraft down 58.4% − Offset by -1.5% FX • EBIT down 70.8% from $4.8M to $1.4M − EBIT decline on unfavorable mix, higher raw material and restructuring costs • Closure of Tulsa, Okl
Slide 11: 2017 Special Items
2017 Special Items Restructuring, Facility Rationalization and Other Non-Operating Items 2017 FY $ millions Q1 Q2 Q3 Forecast Q4 Forecast Forecast CCM $0.5 $0.0 $0.0 $0.0 ~$1 CIT $4.3 $5.6 ~$3-5 ~$3-5 ~$18-20 CFS $3.4 $0.4 $0.0 $0.0 ~$4 CFT $0.5 $0.5 ~$8-10 ~$2-4 ~$15 CBF $0.3 $1.7 ~$1-2 ~$1-2 ~$4-7
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Debt Maturity Schedule • Cash on Hand of $139.8M as of 6/30/17 • $890M available under revolver • $45.8M capital returned YTD to Senior shareholders in quarterly dividends Note Senior $350M • Repurchased $150M of shares Note $250M 3.75% • Currently 3.3M in a
Slide 13: Cash Flow
Cash Flow Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Operating Cash Flow $ 70.9 $ 175.2 $ 176.1 $ 31.9 $ 102.8 Capital Expenditures $ (27.2) $ (31.4) $ (31.5) $ (30.4) $ (35.7) Free Cash Flow $ 43.7 $ 143.8 $ 144.6 $ 1.5 $ 67.1 2nd Quarter 2017 Earnings Call 13
Slide 14: 2017 Outlook
2017 Outlook • Total sales growth of mid-to-high • Corporate Expense ~$70M single digits • Depreciation & Amortization ‒ CCM: up high single digits ~$160M ‒ CIT: down mid-single digits • Capital Expenditures ~$125-150M ‒ CFS: up approximately 40%, • Free cash flow conversion ~100% inclusive of San J
Slide 15: 2017 CIT Current Revenue Estimate
2017 CIT Current Revenue Estimate Mid-Single $ millions -$35 Digit Growth Mid-Single -$25 -$10 Digit Decline Q1 2017 Earnings Call SatCom Ramp Delay IFE Customer Demand Insourcing Q2 2017 Earnings Call Projection Decline Projection 2nd Quarter 2017 Earnings Call 15
Slide 16: Q&A
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Q&A
Slide 17: Appendix
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Appendix
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio ($ in Millions except for Ratios) LTM 6/30/2017 ($ in Millions except for Ratios) Capital 1 Net income $231 Total Debt $710 Net Debt 570 Income tax expense (continuing and discontinued) 148 L