Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2017 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Apr 27, 2017
Slide 1: 1st Quarter 2017 Earnings Call
1st Quarter 2017 Earnings Call April 27, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 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,” “should,” “estimate,” “will,”
Slide 3: 2017 Q1 Highlights
2017 Q1 Highlights • Record Net Sales up 8.0% Financial Summary ‒ Organic net sales up 3.7% ‒ CCM sales growth in excess of non-residential ($ millions, except per share amounts) Q1 ’17 Q1 ‘16 Δ market growth rates Sales $857.3 $794.0 +8.0% ‒ Acquisition growth of 4.9% ‒ Offset by -0.6% FX EBIT $96.
Slide 4: 2017 Trends and Initiatives
2017 Trends and Initiatives • CCM – Growth outpacing U.S. Non-Residential Roofing market – Positioned to capitalize on TPO and Polyiso favorable growth trends – Focus on international expansion with greenfield facility in Germany and Arbo acquisition – Seeking acquisitions to expand building envelop
Slide 5: 2017 Q1 Sales Bridge
2017 Q1 Sales Bridge +4.9% -0.6% $857.3 Organic by Segment Construction Materials +10% +4.4% Interconnect Technologies -9% $794.0 -0.7% FoodService Products +6% Fluid Technologies -1% Brake & Friction +4% Q1 '16 Price Volume Acq F/X Q1 '17 in $ Millions 1st Quarter 2017 Earnings Call 5
Slide 6: 2017 Q1 EBIT Margin
2017 Q1 EBIT Margin +0.9% -1.1% 13.9% -0.2% +0.7% -0.5% -2.4% 11.3% Q1 '16 Price/RM Volume COS Acq Restructuring/ Other Q1 '17 Facility EBIT: $110.6 Million Rationalization EBIT: $96.7 Million 1st Quarter 2017 Earnings Call 6
Slide 7: Construction Materials
Carlisle Construction Materials • Net Sales increased 10.5% +10.5% Acq − US Commercial Roofing up 14% − Acquisitions added 0.6% − Offset by lower selling price of -1.7% • EBIT up 11.6% from $72.3M to $80.7M − Margin up 20 bps to 18.1% − Higher sales volume and strong COS savings − Unfavorable price/
Slide 8: Interconnect Technologies
Carlisle Interconnect Technologies • Net Sales declined 1.3% − Organic net sales declined 8.9% -1.3% Acq − Commercial Aerospace down 11.5% − Medical flat − Micro-Coax and Star Aviation acquisitions added 7.9% • EBIT down 39.1% from $36.6M to $22.3M − Lower sales volume − Pre-tax facility rationaliza
Slide 9: FoodService Products
Carlisle FoodService Products • Net Sales up 37.9% +37.9% Acq ‒ Organic net sales increased 6% ‒ 7th consecutive quarter of organic sales growth ‒ Healthcare up 19.0% ‒ Jan/San up 4.7% ‒ Foodservice Flat ‒ San Jamar added 32% • EBIT down 18.3% from $7.1M to $5.8M ‒ Includes $3.4M of pre-tax acquired
Slide 10: Fluid Technologies
Carlisle Fluid Technologies • Net Sales down 1.1% -1.1% − Organic net sales declined 0.5% Acq − Transportation down 15.9% − Automotive Refinish down 3.8% − General Industrial up 3.9% − MS Powder acquisition added 2.2% − Offset by -2.8% FX • EBIT declined 29.0% from $6.9M to $4.9M − Reflects continue
Slide 11: Brake & Friction
Carlisle Brake & Friction • Net Sales up 1.7% − Construction up 9.1% − Mining up 0.8% +1.7% − Agriculture up 10.9% − Aircraft down 47.9% − Offset by -1.9% FX • EBIT down 67.6% from $3.7M to $1.2M − EBIT decline on mix, higher raw material and restructuring costs • Closure of Tulsa, Oklahoma plant on
Slide 12: Balance Sheet
Balance Sheet • Cash on Hand of $134M as of 3/31/17 Debt Maturity Schedule • $226M used primarily for the acquisitions of San Jamar and Arbo • $1B available under revolver Senior • $23M capital returned YTD to shareholders in Note quarterly dividends Senior Note $350M • Currently 4.8M in additional
Slide 13: Cash Flow
Cash Flow $200 $150 In Millions $100 $50 $0 -$50 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Operating Cash Flow Capital Expenditures Free Cash Flow Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Operating Cash Flow $ 109.0 $ 70.9 $ 175.2 $ 176.1 $ 31.9 Capital Expenditures $ (18.7) $ (27.2) $ (31.4) $ (31.5) $ (30.4) F
Slide 14: 2017 Outlook
Carlisle 2017 Outlook • Total sales growth in high single digits • Corporate Expense ~ $65M • Depreciation & Amortization ~ $155M • Capital Expenditures ~ $125-150M • Free cash flow conversion ~ 100% • Interest Expense ~ $27M • Tax rate ~33% 1st Quarter 2017 Earnings Call 14
Slide 15: Q&A
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Q&A
Slide 16: Appendix
» | (CARLISLE |=: 3 CELEBRATING 100 YEARS Appendix
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio LTM 3/31/2017 Net income $243 ($ in Millions except for Ratios) Capital Income tax expense (continuing and discontinued) 154 Total Debt $600 Net Debt 466 Interest expense 30 Less: Cash 134 To