Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2021 Earnings Presentation
27 slides from Carlisle Companies's earnings presentation, Apr 22, 2021
Slide 1: 1st Quarter 2021 Earnings Conference Call
1st Quarter 2021 Earnings Conference Call April 22, 2021
Slide 2: Safe Harbor and Regulation G Disclosures
Safe Harbor and Regulation G Disclosures Forward-Looking Statements: During this presentation, we make certain forward-looking statements concerning plans and expectations for Carlisle Companies Incorporated. We caution you that actual events or results may differ materially from our plans and expec
Slide 3: Vision 2025 Remains On Track
Vision 2025 Remains On Track • Drive >5% organic growth • CCM, CBF, CFT +5% • Utilize COS to drive operating leverage, reducing costs annually 1-2% of sales • Delivered savings of 1.2% of sales • Re-shape portfolio with synergistic acquisitions • Maintaining robust M&A pipeline • Continue to invest
Slide 4: Q1 2021 Results
Q1 2021 Results Financial Summary (in millions, except per share amounts) 1Q21 1Q20 Δ • Q1 revenue flat y/y • Organic revenue down 1.4% driven by Revenues $1,029.0 $1,030.2 -0.1% the impacts of COVID pandemic on the Operating income $89.5 $102.7 -12.9% commercial aerospace industry at CIT • 0.4% acq
Slide 5: The Exceptional and Sustainable Earnings Power of CCM
The Exceptional and Sustainable Earnings Power of CCM • CCM delivers consistent organic growth, sustained Adjusted EBITDA and Adjusted EBITDA margin* expansion • CCM continues to deliver majority of Carlisle’s earnings • CCM has consistently delivered ROIC of over 30% *Refer to the appendix for a re
Slide 6: CCM Firing on All Cylinders
CCM Firing on All Cylinders • February weather events delayed spring start putting more pressure on already significant job backlogs Buildings from past 10-20 years make up 25% of current infrastructure • Solid leverage on sales growth • Continuing to enhance the Carlisle Experience • Innovation dri
Slide 7: Carlisle's Continued Commitment to ESG
Carlisle’s Continued Commitment to ESG • Launched 2020 Sustainability Report and 2021 milestones: • Report additional frameworks • Begin the ISO 14001 Environmental Management System qualification process for additional 12 manufacturing facilities • Launched new, award-winning ESG focused website: •
Slide 8: 1Q21 Capital Deployment
1Q21 Capital Deployment • Invested: • $20M in Q1 Cap Ex • Over $10M R&D facility investment in 2019 now fully capable and delivering industry leading innovation • Announced investment of ~$60M in new polyiso facility in central U.S. • Returned capital to shareholders in the form of dividends and sha
Slide 9: 1Q21 Revenue Bridge
1Q21 Revenue Bridge -1.4% +0.4% +0.9% Revenue Change by Segment Organic Acquisitions FX Total CCM 5.7% —% 0.6% 6.3% CIT (31.5)% 0.8% 0.1% (30.6)% CFT 5.3% 4.1% 3.5% 12.9% CBF 20.4% —% 3.7% 24.1% ### *Refer to the appendix for a reconciliation of non-GAAP ###measures financial Earnings to theCall rel
Slide 10: 1Q21 Margin Bridge
1Q21 Margin* Bridge Non- Non- GAAP GAAP Adj* Adj* ### *Refer to the appendix for a reconciliation of non-GAAP ###measures financial Earnings to theCall related GAAP financial measures. 10
Slide 11: 1Q21 EPS Bridge
1Q21 EPS* Bridge $ Other Non- Other Non- GAAP Adj* GAAP Adj* ### *Refer to the appendix for a reconciliation of non-GAAP ###measures financial Earnings to theCall related GAAP financial measures. 11
Slide 12: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended March 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 719.3 $ 676.4 $ 42.9 6.3 % —% 5.7 % 0.6 % Operating income $ 121.3 $ 107.7 $ 13.6 12.6 % Operating margin 16.9 % 15.9 % +100
Slide 13: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended March 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 155.8 $ 224.5 $ (68.7) (30.6)% 0.8 % (31.5)% 0.1 % Operating income $ (10.7) $ 16.4 $ (27.1) (165.2)% Operating margin (6
Slide 14: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended March 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2021 2020 Change $ Change % Effect Revenues $ 65.8 $ 58.3 $ 7.5 12.9 % 4.1 % 5.3 % 3.5 % Operating income $ 4.3 $ 2.8 $ 1.5 53.6 % Operating margin 6.5 % 4.8 % +170bps Deprec
Slide 15: Carlisle Brake & Friction
Carlisle Brake & Friction • 1Q Notable Commercial Items: • Optimistic 2021 will be an inflection year • Agriculture and Construction end markets strengthening • Bookings grew over 80% y/y • Adjusted EBITDA Margin* Increase: • Driven by higher volumes and COS savings ### *Refer to the appendix for a
Slide 16: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $767M as of 3/31/21 • $1B available under revolver Senior • $28.4M capital returned to shareholders in Note Senior $750M dividends Senior Note 2.75% Note $750M • Utilized $150M of cash to repurchase shares Senior 2.75% $600M Note ◦ 5.9M sha
Slide 17: Solid 1Q21 Cash Flow Performance
Solid 1Q21 Cash Flow Performance $703.1 $696.7 $614.2 $601.2 $53.2 $67.6 $30.4 $47.6 $22.8 $20.0 $88.9 $95.5 Operating Cash Flow Capital Expenditures Free Cash Flow* ### *Refer to the appendix for a reconciliation of non-GAAP ###measures financial Earnings to theCall related GAAP financial measures.
Slide 18: FY 2021 Outlook
FY 2021 Outlook 2021 Revenue Outlook Primary Drivers Carlisle Construction Materials +LDD • Strong re-roofing demand • Price discipline • Strong Architectural Metals, European, Polyurethanes markets Carlisle Interconnect Technologies -MSD/HSD • Commercial Aerospace performance at or near bottom, bac
Slide 19: Appendix
vision | me ~+~/2¢ A K-y A E 2025 THE NEXT 100 YEARS Appendix
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended March 31, (in millions) 2021 2020 Net income (GAAP) $ 52.2 $ 61.8 Income from discontinued operations (GAAP) — — Income from continuing operations (GAAP) 52.2 61.8 Provision for income taxes 14.7 14.4 Interest expense, net 19.2 18.9 Interest incom
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended March 31, 2021 Corporate and (in millions) CCM CIT CFT CBF unallocated Operating income (loss) (GAAP) $ 121.3 $ (10.7) $ 4.3 $ 6.1 $ (31.5) Non-operating (income) expense(1) 2.2 — 0.4 0.3 1.0 EBIT 119.1 (10.7) 3.9 5.8 (32.5) Exit and disposal, and
Slide 23: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended March 31, 2020 Corporate and (in millions) CCM CIT CFT CBF unallocated Operating income (loss) (GAAP) $ 107.7 $ 16.4 $ 2.8 $ (3.8) $ (20.4) Non-operating (income) expense(1) 0.3 (0.8) (3.3) (0.3) 12.4 EBIT 107.4 17.2 6.1 (3.5) (32.8) Exit and disp
Slide 24: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 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) $ 52.2 $ 0.97 $ 6
Slide 25: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Year Ended December 31, 2020 Year Ended December 31, 2019 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) $ 320.1 $ 5.80 $ 472.8 $ 8.
Slide 26: Reconciliation to Organic Revenue and Free Cash Flow
Reconciliation to Organic Revenue and Free Cash Flow Organic Revenue Three Months Ended March 31, (in millions) CSL CCM CIT CFT CBF 2020 Revenue (GAAP) $ 1,030.2 $ 676.4 $ 224.5 $ 58.3 $ 71.0 Volume/Price (14.6) (1.4)% 38.7 5.7 % (70.9) (31.5)% 3.1 5.3 % 14.5 20.4 % Organic revenue (14.6) (1.4)% 38.
Slide 27: 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 3/31/2021 (in millions except for ratios) 3/31/2021 Income from Continuing Operations (GAAP) $ 314.6 Long-term debt, including current po