Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q1 2020 Earnings Presentation
17 slides from Carlisle Companies's earnings presentation, Apr 21, 2020
Slide 1: 1st Quarter 2020 Earnings Conference Call
1st Quarter 2020 Earnings Conference Call April 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 are following best practices and guidance from recognized authorities on employee health and safety measures • Carlisle businesses are considered essential,
Slide 4: Coronavirus Update - Financial Strength
Coronavirus Update - Financial Strength • As of March 31, 2020, we had cash-on-hand of $1.2B and $500M undrawn on our credit facility • No principal payments are due on outstanding debt until November 15, 2022 • We expect to generate free cash flow conversion in excess of 125% in 2020 • We paid our
Slide 5: Coronavirus Update - Responding to Increasing Economic Uncertainties
Coronavirus Update - Responding to Increasing Economic Uncertainties • Vision 2025 remains our long-term focus • CCM is positioned to perform well in this market downturn • The unprecedented downturn in the commercial aerospace industry will negatively impact CIT, but recent positive news from Boein
Slide 6: 2020 Q1 Results
2020 Q1 Results Financial Summary Q1 revenue, down 3.9% (in millions, except per share amounts) Q1 '20 Q1 '19 Δ • Organic revenue down 7.0% Revenues $1,030.2 $1,071.9 -3.9% ◦ CCM revenues up slightly Operating income $102.7 $114.7 -10.5% • 3.4% acquisition growth Income from continuing operations, n
Slide 7: 2020 Q1 Revenue Bridge
2020 Q1 Revenue Bridge $1.07B -7.0% +3.4% -0.3% $1.03B Organic Revenue by Segment Construction Materials +0.7% Interconnect Technologies -19.7% Fluid Technologies -18.8% Brake & Friction -20.8% ### ### Earnings Call 7
Slide 8: 2020 Q1 Operating Margin Bridge
2020 Q1 Operating Margin Bridge 10.7% -2.0% +1.4% -0.5% +0.2% 10.0% +0.2% ### ### Earnings Call 8
Slide 9: 2020 Q1 EPS Bridge
2020 Q1 EPS Bridge $+0.20 $-0.18 $1.33 $-0.37 $+0.08 $-0.18 $+0.21 $1.09 ### ### Earnings Call 9
Slide 10: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended March 31, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 676.4 $ 671.1 $ 5.3 0.8 % 0.3 % 0.7 % (0.2) % Operating income $ 107.7 $ 92.9 $ 14.8 15.9 % Operating margin percentage 15.9
Slide 11: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended March 31, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 224.5 $ 246.4 $ (21.9) (8.9) % 10.9 % (19.7) % (0.1) % Operating income $ 16.4 $ 30.6 $ (14.2) (46.4) % Operating margin
Slide 12: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended March 31, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 58.3 $ 63.1 $ (4.8) (7.6) % 12.0 % (18.8) % (0.8) % Operating income $ 2.8 $ 6.4 $ (3.6) (56.3) % Operating margin percentage 4.
Slide 13: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended March 31, Price / Acquisition Volume Exchange 2020 2019 Change $ Change % Effect Effect Rate Effect (in millions) Revenues $ 71.0 $ 91.3 $ (20.3) (22.2) % — % (20.8) % (1.4) % Operating income $ (3.8) $ 6.5 $ (10.3) (158.5) % Operating margin percentage (
Slide 14: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $1.2B as of 3/31/20 • $500M available under revolver • $28M capital returned to shareholders in dividends in Q1 Senior Note • Utilized $121M of cash in Q1 to repurchase $750M Senior 2.75% shares Note Senior ◦ 4.0M shares remaining under aut
Slide 15: Cash Flow
Cash Flow Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Operating Cash Flow $109.8 $87.3 $292.4 $213.6 $53.2 Capital Expenditures $(23.3) $(17.7) $(15.6) $(32.3) $(22.8) Free Cash Flow * $86.5 $69.6 $276.8 $181.3 $30.4 *Represents non-GAAP measure ### ### Earnings Call 15
Slide 16: 2020 Outlook
2020 Outlook Restructuring, facility FY 2020 rationalization acquisition/divestiture related Corporate Expense ~$80M items (in $M) 1Q20 2QF FY20F D&A ~$230M CCM $0.5 ~$2-4 ~$2-4 CapEx $100-120M CIT $5.4 ~$12-15 ~$25-30 FCF Conversion ~125% CFT $0.3 ~$5-6 ~$5-6 Interest Expense, Net ~$75M CBF $3.7 ~$
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 3/31/2020 Total debt $ 2,577 Net debt $ 1,389 Income from Continuing Operations $ 459 Less: cash $ 1,188 Total shareholders' equ