Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2023 Earnings Presentation
24 slides from Carlisle Companies's earnings presentation, Apr 27, 2023
Slide 1: 1st Quarter 2023 Earnings Call
1st Quarter 2023 Earnings Call April 27, 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: 1Q23 Results
1Q23 Results 1Q Revenue decreased 21% y/y due to: Financial Summary » Destocking activity in non-residential roofing and difficult y/y comparisons (in millions, except per share amounts and percentages) 1Q23 1Q22 Δ » Volume declines in residential markets Revenues $1,178.8 $1,496.3 (21.2)% » Partial
Slide 4: Drivers for Carlisle's Building Products Businesses
Drivers for Carlisle’s Building Products Businesses » Building codes calling for higher energy efficiency drives demand for polyiso insulation and our suite of products around the entire building envelope » Inflation Reduction Act supports demand for our products for the next decade » Focus on innov
Slide 5: Accelerating Innovation That Address Our Customers' Needs
Accelerating Innovation That Address Our Customers’ Needs XCI Class A Plus 16-Foot TPO Wall Insulation » Launched in January 2023 » Launched in April 2023 » Launched in April 2023 » Widest TPO roll on the market » Two different facer colors on » Improved foam & facer » Reduces labor on large project
Slide 6: Vision 2025 Put Our Foundational Pillars In Place
Vision 2025 Put Our Foundational Pillars In Place » Deliver mid-single-digit organic revenue growth » Utilize the Carlisle Operating System (COS) effectively to enhance productivity » Seek accretive, strategic acquisitions with a focus on Building Products » Attract and develop exceptional talent »
Slide 7: Continued Commitment to Sustainability – Net-Zero 2050
Continued Commitment to Sustainability – Net-Zero 2050 » Recent developments include: » Committed to purchasing bio-MDI and bio-polyol to test and develop bio-based raw materials into our production » Replaced ~25% of sourced prime carbon black in certain products with recycled material » Piloting e
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended March 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2023 2022 Change $ Change % Effect Revenues $ 576.0 $ 881.1 $ (305.1) (34.6)% (34.2)% —% (0.4)% Operating income $ 122.4 $ 261.1 $ (138.7) (53.1)% Ope
Slide 9: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended March 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2023 2022 Change $ Change % Effect Revenues $ 316.6 $ 359.1 $ (42.5) (11.8)% (11.3)% —% (0.5)% Operating income $ 24.1 $ 37.5 $ (13.4) (35.7)% O
Slide 10: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended March 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2023 2022 Change $ Change % Effect Revenues $ 213.5 $ 185.0 $ 28.5 15.4 % 15.7 % —% (0.3)% Operating income $ 10.9 $ (2.5) $ 13.4 NM Operating marg
Slide 11: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended March 31, Price / Acquisition Exchange Volume Effect Rate Effect (in millions, except percentages) 2023 2022 Change $ Change % Effect Revenues $ 72.7 $ 71.1 $ 1.6 2.3 % 6.5 % —% (4.2)% Operating income $ 10.7 $ 4.8 $ 5.9 122.9 % Operating margin 14.7 %
Slide 12: 1Q23 Adjusted EPS Bridge
1Q23 Adjusted EPS* Bridge * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 12
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization » Cash on hand of $424M as of 3/31/23 Senior » $1B available under revolver Note $750M » $39M in dividends paid 2.75% Senior » Deployed $50M of cash to repurchase Note Senior 0.2M shares $600M Note 3.75% $550M » 3.2M shares remaining under 2.20% Senior autho
Slide 14: 1Q23 Cash Flow Performance
1Q23 Cash Flow Performance ▪ Reflects improved working capital ▪ Continue to expect strong free cash generation in 2023 * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 14
Slide 15: FY 2023 Outlook
FY 2023 Outlook Business Segment 2023 Revenue Growth Primary Drivers • Tough year-over-year comparisons Carlisle Construction Materials -HSD y/y • Channel destocking in 1H23 • Contractor backlog remains strong • Headwinds in residential markets Carlisle Weatherproofing Technologies -LDD y/y • Partia
Slide 16: Financial Reconciliations
et C_ ARLISL E 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 17: 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 18: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended March 31, (in millions, except percentages) CSL CCM CWT CIT CFT 2022 Revenue (GAAP) $ 1,496.3 $ 881.1 $ 359.1 $ 185.0 $ 71.1 Organic revenue (volume/price) (308.7) (20.6) % (301.7) (34.2) % (40.6) (11.3) % 29.0 15.7 % 4.6 6.5 % Acquisitions — — %
Slide 19: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended March 31, (in millions) 2023 2022 Operating cash flow (GAAP) $ 149.6 $ 44.3 Less: operating cash flow from discontinued operations 2.1 (0.7) Operating cash flow from continuing operations $ 147.5 $ 45.0 Capital expenditures (GAAP) $ (40.2) $ (31.1)
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended March 31, (in millions, except percentages) 2023 2022 Net income (GAAP) $ 101.7 $ 193.6 Less: income (loss) from discontinued operations (GAAP) 2.1 (0.7) Income from continuing operations (GAAP) 99.6Senior 194.3 Provision for income taxes 28.4 Not
Slide 21: Reconciliation to Adjusted EBITDA (2023 by segment)
Reconciliation to Adjusted EBITDA Three Months Ended March 31, 2023 Corporate and (in millions, except percentages) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 122.4 $ 24.1 $ 10.9 $ 10.7Senior $ (27.1) Non-operating income, net(1) (0.1) (0.2) (0.1) — Note (0.8) EBIT 122.5 24.3 11.0
Slide 22: Reconciliation to Adjusted EBITDA (2022 by segment)
Reconciliation to Adjusted EBITDA Three Months Ended March 31, 2022 Corporate and (in millions, except percentages) CCM CWT CIT CFT unallocated Operating income (loss) (GAAP) $ 261.1 $ 37.5 $ (2.5) $ 4.8 $ (23.6) Non-operating expense (income), net(1) — 0.1 (0.5) 0.1 0.4 EBIT 261.1 37.4 (2.0) 4.7 (2
Slide 23: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 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) $ 101.7 $ 1.96 $
Slide 24: 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 3/31/2023 (in millions, except percentages) 3/31/2023 Income from continuing operations (GAAP) $ 830.5 Long-term debt, including current por