Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2020 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Jul 21, 2020
Slide 1: 2nd Quarter 2020 Earnings Conference Call
2nd Quarter 2020 Earnings Conference Call July 21, 2020
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 Earnings before Interest, Income statements concerning plans and expectations for Carlisle Taxes, Depreciation and Amortization (“EBITDA”), Free Cash Companies I
Slide 3: Coronavirus Update - Employees and Facilities
Coronavirus Update - Employees and Facilities • First and foremost, our pledge is to provide a safe working environment for our employees • We continue to follow best practices and guidance from recognized authorities on employee health and safety measures • Overall infection rate is very low across
Slide 4: Coronavirus Update - Financial Strength
Coronavirus Update - Financial Strength • As of June 30, 2020, we had cash-on-hand of $738M and $1B undrawn on our credit facility, amounting to net debt to capital of approximately 35% • We expect to generate free cash flow conversion in excess of 125% in 2020 • We paid our second quarter dividend
Slide 5: Coronavirus Update - Vision 2025 Remains Our Long-term Focus
Coronavirus Update - Vision 2025 Remains Our Long-term Focus • CCM volumes down over 30% in April but showed recovery in May and June • The unprecedented downturn in the commercial aerospace industry is negatively impacting CIT, but recent positive news is encouraging (e.g. 737 MAX progress and incr
Slide 6: 2020 Q2 Results
2020 Q2 Results Financial Summary Q2 revenue down 22% (in millions, except per share amounts) Q2 '20 Q2 '19 Δ • Organic revenue down 23.8% Revenues $1,024.2 $1,314.8 -22.1% • 1.9% acquisition growth Operating income $113.4 $207.2 -45.3% • FX was an unfavorable 0.2% impact Income from continuing oper
Slide 7: 2020 Q2 Revenue Bridge
2020 Q2 Revenue Bridge $1.31B -23.8% +1.9% -0.2% $1.02B Organic Revenue by Segment Construction Materials -19.7% Interconnect Technologies -33.5% Fluid Technologies -34.2% Brake & Friction -31.1% ### ### Earnings Call 7
Slide 8: 2020 Q2 Operating Margin Bridge
2020 Q2 Operating Margin Bridge -7.3% 15.8% +3.0% -0.5% 11.1% +1.0% -0.9% ### ### Earnings Call 8
Slide 9: 2020 Q2 EPS Bridge
2020 Q2 EPS Bridge $2.65 -$1.63 +$0.25 $1.36 +$0.15 +$0.06 -$0.11 +$0.18 -$0.09 -$0.05 -$0.05 ### ### Earnings Call 9
Slide 10: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 734.9 $ 915.0 $(180.1) (19.7) % 0.1 % (19.7) % (0.1) % Operating income $ 137.6 $ 182.5 $ (44.9) (24.6) % Operating margin pe
Slide 11: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 184.0 $ 245.4 $ (61.4) (25.0) % 8.6 % (33.5) % (0.1) % Operating income $ (1.5) $ 35.9 $ (37.4) (104.2) % Operating margin
Slide 12: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended June 30, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 46.5 $ 67.3 $ (20.8) (30.9) % 4.3 % (34.2) % (1.0) % Operating income $ (5.2) $ 3.3 $ (8.5) (257.6) % Operating margin percentage
Slide 13: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended June 30, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 58.8 $ 87.1 $ (28.3) (32.5) % — % (31.1) % (1.4) % Operating income $ (1.6) $ 8.3 $ (9.9) (119.3) % Operating margin percentage (2.
Slide 14: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $738M as of 6/30/20 • $1B available under revolver • $56M capital returned to shareholders in dividends YTD Senior Note • Utilized $192M of cash YTD to repurchase $750M Senior 2.75% shares Note Senior ◦ 3.5M shares remaining under authoriza
Slide 15: Cash Flow
Cash Flow Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Operating Cash Flow $87.3 $292.4 $213.6 $53.2 $173.1 Capital Expenditures $(17.7) $(15.6) $(32.3) $(22.8) $(25.7) Free Cash Flow * $69.6 $276.8 $181.3 $30.4 $147.4 *Represents non-GAAP measure ### ### Earnings Call 15
Slide 16: 2020 Outlook
2020 Outlook 3Q20F Items Affecting Comparability* ($M) Revenue FY 2020 Outlook 2Q20 3Q20F FY20F Corporate Expense ~$85M CCM Down HSD $1.3 ~$0-1 ~$2-4 Down Mid- D&A ~$230M CIT $7.4 ~$5-7 ~$20-25 20% Down ~ $2.1 ~$0-1 ~$3-4 CapEx $100-110M CFT 20% Down Mid- $1.7 ~$1-2 ~$6-10 CBF Teens FCF Conversion ~
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions except for ratios) Capital (in millions except for ratios) LTM 6/30/2020 Total debt $ 2,100 Net debt $ 1,362 Income from Continuing Operations $ 381 Total shareholders' Less: cash $ 738 equit