Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2018 Earnings Presentation
16 slides from Carlisle Companies's earnings presentation, Feb 7, 2019
Slide 1: 4th Quarter 2018 Earnings Conference Call
4th Quarter 2018 Earnings Conference Call February 7, 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: Executing on Vision 2025 Plan
Executing on Vision 2025 Plan • Exceeded organic revenue growth target of 5% for Q4 and FY • Demonstrated sustained price leadership, driving over 20% increase in operating income • Realized FY COS savings and benefits of 1.6%, in line with our targeted 1-2% of annual sales • Announced the acquisiti
Slide 4: 2018 Q4 Highlights
2018 Q4 Highlights Record Q4 revenue, up 8.8% Financial Summary • 5.3% organic revenue growth (in millions, except per share amounts) Q4 '18 Q4 '17 Δ ◦ Strong organic growth at CIT and CFT Revenues $1,077.3 $990.5 +8.8% ◦ Solid price realization at CCM, CBF, CFT Operating income $114.6 $93.4 +22.7%
Slide 5: 2018 Q4 Revenue Bridge
2018 Q4 Revenue Bridge +4.3% -0.4% $1,077.3 +5.3% Organic Revenue by Segment -0.4% Construction Materials +2.8% Interconnect Technologies +12.7% Fluid Technologies +5.8% Brake & Friction +4.9% $990.5 Q4 '17 Organic Revenue Acquisitions FX Q4 '18 Recognition (in millions) 4th Quarter 2017 Earnings Ca
Slide 6: 2018 Q4 Operating Margin Bridge
2018 Q4 Operating Margin Bridge +1.3% -0.5% -1.7% +2.3% -0.2% 10.6% 9.4% Q4 '17 Price/Volume COS Acquisitions Raw Materials/ Restructuring/ Q4 '18 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6
Slide 7: 2018 Q4 EPS Bridge
2018 Q4 EPS Bridge +$0.14 -$0.25 +$0.21 -$0.51 +$0.10 $1.73 +$0.07 $1.49 Q4 '17 Volume Price COS Raw Material, Tax Items Share Q4 '18 Freight & Labor Repurchase Related Costs 4th Quarter 2017 Earnings Call 7
Slide 8: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 676.3 $ 618.7 $ 57.6 9.3% 6.6% 2.8% (0.1)% Operating income $ 97.3 $ 87.7 $ 9.6 10.9% Operating margin percentage 14.4% 1
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three months ended December 31, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 231.6 $ 208.5 $ 23.1 11.1% 0.7% 10.6% (0.2)% Operating income $ 33.3 $ 21.9 $ 11.4 52.1% Operating margin percentage 1
Slide 10: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 82.4 $ 79.0 $ 3.4 4.3% —% 5.8% (1.5)% Operating income $ 12.0 $ 3.7 $ 8.3 224.3% Operating margin percentage 14.6% 4.7% +990b
Slide 11: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended December 31, Price / Acquisition Exchange Volume 2018 2017 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 87.0 $ 84.3 $ 2.7 3.2 % —% 4.9% (1.7)% Operating income $ (7.1) $ (1.2) $ (5.9) (491.7)% Operating margin percentage (8.2)% (1.
Slide 12: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $803.6M as of 12/31/18 Debt Maturity Schedule • $1B available under revolver Senior • $93.5M capital returned to shareholders Note $600M FY18 in quarterly dividends 3.75% • Utilized $459.8M of cash to repurchase Senior Senior Note shares FY
Slide 13: Cash Flow
Cash Flow $450 $350 (in millions) $250 $150 $50 -$50 -$150 Q4 '17 FY '17 Q4 '18 FY '18 Operating Cash Flow Capital Expenditures Free Cash Flow * Q4 '17 FY '17 Q4 '18 FY '18 Operating Cash Flow $159.1 $458.7 $236.6 $339.2 Capital Expenditures $(54.1) $(159.9) $(24.6) $(120.7) Free Cash Flow * $105.0
Slide 14: 2019 Outlook
2019 Outlook FY 2019 Restructuring, facility Corporate Expense ~$75-$80M FY2019 rationalization acquisition/ Revenue D&A ~$200M divestiture related items CapEx ~$110-$125M Growth y/y 1Q19 FY19 FCF Conversion ~100% Net Interest Expense ~$55-60M CCM HSD/LDD ~$5-7 ~$5-7 Tax Rate ~25% CIT MSD ~$5-6 ~$14
Slide 15: Appendix
Appendix 4th Quarter 2017 Earnings Call 15
Slide 16: 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 12/31/2018 Total debt $ 1,600 Net debt $ 796 Income from Continuing Operations $ 359 Less: cash $ 804 Tot