Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2019 Earnings Presentation
16 slides from Carlisle Companies's earnings presentation, Feb 6, 2020
Slide 1: 4th Quarter 2019 Earnings Conference Call
4th Quarter 2019 Earnings Conference Call February 6, 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 our Revolving Credit Facility of Earnings statements concerning plans and expectations for Carlisle before Interest, Income Taxes, Depreciation and Amortization
Slide 3: Continued Execution of Vision 2025 - Plan to Date
Continued Execution of Vision 2025 - Plan to Date • Organic revenue growth of 5% • Demonstrated sustained price leadership in support of driving to 13.6% operating margin • Realized gross COS savings and benefits in line with our targeted 1-2% of annual revenues • Returned over $1B to shareholders t
Slide 4: 2019 Full Year Highlights
2019 Full Year Highlights • Grew total sales over 7% despite enduring four quarters of global industrial production declines • Increased pricing in all segments, contributing 1% of year-over-year sales growth • Operating income grew approximately 29% year-over-year, exhibiting strong leverage on our
Slide 5: 2019 Q4 Highlights
2019 Q4 Highlights Financial Summary Record Q4 revenue, up 6.2% (in millions, except per share amounts) Q4 '19 Q4 '18 Δ • Flat organic revenue growth Revenues $1,144.3 $1,077.3 +6.2% ◦ 5.1% organic growth at CCM Operating income $141.3 $114.6 +23.3% • 6.4% acquisition growth Income from continuing o
Slide 6: 2019 Q4 Revenue Bridge
2019 Q4 Revenue Bridge +6.4% -0.2% $1.14B Organic Revenue by Segment Construction Materials +5.1% Interconnect Technologies -3.1% Fluid Technologies -16.1% $1.08B 0.0% Brake & Friction -16.6% Q4 '18 Organic Acquisitions FX Q4 '19 (in millions) 4th Quarter 2017 Earnings Call 6
Slide 7: 2019 Q4 Operating Margin Bridge
2019 Q4 Operating Margin Bridge +0.6% 12.3% +1.4% -0.6% +0.6% 10.6% -0.3% Q4 '18 Volume/Price COS Acquisitions Raw Materials/ Restructuring/ Q4 '19 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 7
Slide 8: 2019 Q4 EPS Bridge
2019 Q4 EPS Bridge +$0.07 -$0.06 -$0.02 $1.81 +$0.19 +$0.18 $1.49 -$0.04 Q4 '18 Volume/Price/Mix Material, COS Share Tax Items Other Q4 '19 Freight & Labor Repurchase 4th Quarter 2017 Earnings Call 8
Slide 9: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 753.7 $ 676.3 $ 77.4 11.4% 6.5% 5.1% (0.2)% Operating income $ 127.6 $ 97.3 $ 30.3 31.1% Operating margin percentage 16.9
Slide 10: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 239.2 $ 231.6 $ 7.6 3.3 % 6.4% (3.1)% —% Operating income $ 29.1 $ 33.3 $ (4.2) (12.6)% Operating margin percentage 12
Slide 11: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 79.5 $ 82.4 $ (2.9) (3.5)% 12.5% (16.1)% 0.1% Operating income $ 10.1 $ 12.0 $ (1.9) (15.8)% Operating margin percentage 12.7
Slide 12: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended December 31, Price / Acquisition Exchange Volume 2019 2018 Change $ Change % Effect Rate Effect (in millions) Effect Revenues $ 71.9 $ 87.0 $ (15.1) (17.4)% —% (16.6)% (0.8)% Operating income $ 0.8 $ (7.1) $ 7.9 111.3 % Operating margin percentage 1.1% (8
Slide 13: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $351M as of 12/31/19 • $1B available under revolver Debt Maturity Schedule • $103M capital returned to shareholders in Senior dividends in 2019 Note $600M • Utilized $382M of cash in 2019 to repurchase 3.75% Senior shares Senior Note ◦ 4.9M
Slide 14: Cash Flow
Cash Flow $350 $250 (in millions) $150 $50 -$50 -$150 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Operating Cash Flow Capital Expenditures Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Operating Cash Flow $236.6 $109.8 $87.3 $292.4 $213.6 Capital Expenditures $(24.6) $(23.3) $(17.7) $(15.6) $(32.3) Free Cash Flow * $21
Slide 15: 2020 Outlook
2020 Outlook Restructuring, facility FY 2020 FY2020 Revenue rationalization acquisition/divestiture Corporate Expense $100-105M related items (in $M) Growth y/y 1Q20F FY20F D&A ~$230M CCM + MSD ~$0-1 ~$0-1 CapEx $100-120M CIT + HSD ~$2-3 ~$4-6 FCF Conversion ~120% CFT + LSD to MSD ~$0-1 ~$0-1 Intere
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 12/31/2019 Total debt $ 1,601 Net debt $ 1,250 Income from Continuing Operations $ 474 Less: cash $ 351 T