Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2023 Earnings Presentation
25 slides from Carlisle Companies's earnings presentation, Feb 6, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings Call
Fourth Quarter and Full Year 2023 Earnings Call February 6, 2024
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures Fourth Quarter and Full Year 2023 Earnings Call This presentation 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,"
Slide 3: Full Year 2023 Overview
Full Year 2023 Overview Fourth Quarter and Full Year 2023 Earnings Call » Adj. EBITDA margin of 25.1%, down 40 bps y/y, demonstrating exceptional resilience » CWT margin increased 540 bps on $15.52 $4.6B stronger operating efficiencies and CCM Adj. EPS* Revenue margin of 30% held up well compared to
Slide 4: Vision 2030 Value Creation Drivers and Targets
Vision 2030 Value Creation Drivers and Targets Fourth Quarter and Full Year 2023 Earnings Call Vision 2030 Key Financial Targets* » Vision 2030 builds on record of success and pivot to a pure play building products portfolio » Mega trends around energy efficiency, labor $40+ 5%+ Organic Revenue savi
Slide 5: Why Vision 2030 is Positioned to Be Successful
Why Vision 2030 is Positioned to Be Successful $40+ Fourth Quarter and Full Year 2023 Earnings Call Adj. EPS* Vision 2030 Target Exceeded Accretive M&A Vision 2025 Innovation Opportunities Target EPS Favorable Driven Organic • Disciplined M&A of $15+ Exposure to Growth approach focused on Mega Trend
Slide 6: Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050
Carlisle Is Committed To Achieve Net Zero GHG Emissions By 2050 Fourth Quarter and Full Year 2023 Earnings Call Our 3 Pillars And Near-Term 2023 Progress Targets 1 Converted 50%+ of HFC spray foam products to HFO, avoiding 250K+ metric tons of GHGs 1 2 Polyiso plant secured ISCC+ certification, clea
Slide 7: 4Q23 Results
4Q23 Results Fourth Quarter and Full Year 2023 Earnings Call Revenue Adj. EBITDA Margin* Adj. EPS* -1.9% (-2.3% Organic*) +440 bps +29.5% 26.4% $4.17 22.0% $1.1B $1.1B $3.22 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 » End of inventory channel » Adjusted EBITDA margin » Delivered 4th quarter record Adj. destocki
Slide 8: Carlisle Construction Materials (CCM) Segment 4Q23 Performance
Carlisle Construction Materials (CCM) Segment 4Q23 Performance Fourth Quarter and Full Year 2023 Earnings Call Revenue Adj. EBITDA* Adj. EBITDA Margin* +1.9% (+1.7% Organic*) +11.8% +270 bps $800M $816M $255M 31.2% $228M 28.5% 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 Notable Revenue Drivers: » Solid execution
Slide 9: Carlisle Weatherproofing Technologies (CWT) Segment 4Q23 Performance
Carlisle Weatherproofing Technologies (CWT) Segment 4Q23 Performance Fourth Quarter and Full Year 2023 Earnings Call Revenue Adj. EBITDA* Adj. EBITDA Margin* -10.8% (-11.6% Organic*) +54.3% +940 bps $350M $312M $69M 22.2% $45M 12.8% 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 Notable Revenue Drivers: » Residentia
Slide 10: 4Q23 Adjusted EPS Bridge
4Q23 Adjusted EPS* Bridge Fourth Quarter and Full Year 2023 Earnings Call $0.02 $0.23 $1.23 $0.09 $(0.24) $4.17 $3.22 $(0.38) 4Q22 Adj. EPS* Volume/Price/Mix Materials/Freight/Labor COS Share Repurchases Interest/Tax Opex/Other 4Q23 Adj. EPS* * Reference the financial reconciliations of non-GAAP fin
Slide 11: Solid Cash Flow Performance from Continuing Operations
Solid Cash Flow Performance from Continuing Operations Fourth Quarter and Full Year 2023 Earnings Call $1,037M $940M $111M $159M $398M $375M $926M $47M $24M $782M $350M $351M 4Q22 4Q23 FY 2022 FY 2023 Operating Cash Flow* Free Cash Flow* Capital Expenditures* » 20% FCF margin* in 2023, aligned with
Slide 12: Strong Balance Sheet to Execute Growth and High Return Capital Deployment Strategy
Strong Balance Sheet to Execute Growth and High Return Capital Deployment Strategy Fourth Quarter and Full Year 2023 Earnings Call Long-Dated Debt Maturity Schedule Total Liquidity Net Debt to Adj. EBITDA* Ratio $750M 2.75% $1.6B 1.3x $600M Including cash of $577M and $1.0B 3.75% $550M Within 1.0x-2
Slide 13: Disciplined Capital Deployment Approach to Drive Superior Returns
Disciplined Capital Deployment Approach to Drive Superior Returns Fourth Quarter and Full Year 2023 Earnings Call $40+ 25%+ Adj. EPS* ROIC* • Repurchased 3.5M shares for $900M in FY23 Share • 7.4M shares remaining under authorization as Repurchases of December 31, 2023 • $160M in dividends paid in F
Slide 14: 2024 Growth Outlook
2024 Growth Outlook Fourth Quarter and Full Year 2023 Earnings Call Full Year 2024 Outlook* Primary Drivers » CCM revenue up ~6% y/y based on channel tailwinds ~5% +50 bps following 2023 de-stocking, strong contractor backlogs and re-roof demand Revenue Adj. EBITDA » CWT revenue up ~4% y/y based on
Slide 15: Financial Reconciliations
Ue f AIRE ISLE Ba THE NEXT 100 YEARS Financial Reconciliations
Slide 16: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics Fourth Quarter and Full Year 2023 Earnings Call 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 de
Slide 17: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Fourth Quarter and Full Year 2023 Earnings Call Three Months Ended December 31, (in millions, except percentages) CSL CCM CWT 2022 Revenue (GAAP) $ 1,149.9 $ 800.4 $ 349.5 Organic (26.6) (2.3)% 13.8 1.7 % (40.4) (11.6)% Acquisitions 2.4 0.2% — — % 2.4 0.7% FX impact
Slide 18: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Fourth Quarter and Full Year 2023 Earnings Call Three Months Ended Year Ended December 31, December 31, (in millions) 2023 2022 2023 2022 Operating cash flow (GAAP) $ 388.9 $ 412.3 $ 1,201.3 $ 1,000.9 Less: operating cash flow from discontinued operations 13.6 14.5 1
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Fourth Quarter and Full Year 2023 Earnings Call Three Months Ended Year Ended December 31, December 31, (in millions, except percentages) 2023 2022 2023 2022 Net income (GAAP) $ 205.5 $ 174.2 $ 767.4 $ 924.0 Less: Income from discontinued operations (GAAP) 13.8 21.2
Slide 20: Reconciliation to Adjusted EBITDA (Q4 segments)
Reconciliation to Adjusted EBITDA Fourth Quarter and Full Year 2023 Earnings Call Three Months Ended December 31, 2023 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 238.3 $ 45.5 Senior$ (30.2) Non-operating (income) expense, net(1) (0.4) 0.2 Not
Slide 21: Reconciliation to Adjusted EBITDA (full year segments)
Reconciliation to Adjusted EBITDA Fourth Quarter and Full Year 2023 Earnings Call Year Ended December 31, 2023 Corporate and (in millions) CCM CWT unallocated Operating income (loss) (GAAP) $ 913.9 $ 187.9 $ (119.0) Non-operating (income) expense, net(1) (0.4) 0.2 (2.9) EBIT 914.3 187.7 (116.1) Exit
Slide 22: Reconciliation to Adjusted Diluted EPS (Q4)
Reconciliation to Adjusted Diluted EPS Fourth Quarter and Full Year 2023 Earnings Call Three Months Ended Three Months Ended December 31, 2023 December 31, 2022 Pre-tax After-tax Impact to Diluted Pre-tax After-tax Impact to Diluted (in millions, except per share amounts) Impact Impact(1) EPS(2) Imp
Slide 23: Reconciliation to Adjusted Diluted EPS (full year)
Reconciliation to Adjusted Diluted EPS Fourth Quarter and Full Year 2023 Earnings Call Year Ended Year Ended December 31, 2023 December 31, 2022 Pre-tax After-tax Impact to Diluted Pre-tax After-tax Impact to Diluted (in millions, except per share amounts) Impact Impact(1) EPS(2) Impact Impact(1) EP
Slide 24: Reconciliation to ROIC
Reconciliation to ROIC Fourth Quarter and Full Year 2023 Earnings Call Year Ended (in millions) December 31, 2023 Net income (GAAP) $ 767.4 Less: income from discontinued operations (GAAP) 48.5 Income from continuing operations (GAAP) 718.9 Provision for income taxes 211.5 Interest expense, net 75.6
Slide 25: Reconciliation of Leverage Ratios and Net Debt to Capital Ratios
Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios Fourth Quarter and Full Year 2023 Earnings Call Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions, except ratios) LTM 12/31/2023 (in millions, except percentages) 12/31/2023 Income from continuing operations (G