Carlisle Companies Incorporated (NYSE:CSL) reported income from
continuing operations of $39.1 million, or $1.26 per diluted share,
for the quarter ended March 31, 2006, an increase of 36% above
$28.8 million, or $0.92 per diluted share, for the first quarter
2005. Income from continuing operations for the first quarter 2006
was positively impacted by an after-tax gain of $0.10 per diluted
share related to proceeds from the favorable resolution of certain
legal actions initiated by the Company. First quarter 2006 included
a $0.04 per diluted share charge for the expensing of stock
options. Earnings before interest and income taxes ("EBIT")
expressed as a percent of net sales increased to 10.1% for the
first quarter 2006 from 8.6% for the first quarter 2005. Net sales
of $621.1 million in the first quarter 2006 were 16% above net
sales of $537.7 million in the first quarter of 2005. All Carlisle
segments grew organically with the strongest sales growth in the
Construction Materials segment. Organic sales growth accounted for
$71.9 million, or 86%, of the total quarter-over-quarter net sales
growth while acquisitions in the Diversified Components segment
contributed $11.5 million, or 14%. Richmond McKinnish, Carlisle
President and CEO commented, "We are satisfied with the first
quarter results of our operating companies and maintain our
optimism for strong performance in 2006. Our confidence in our end
markets and management teams enables us to raise guidance for
income from continuing operations for the full year 2006 to the
range of $5.00 to $5.20 from the previous range of $4.85 to $5.05
per diluted share." Construction Materials: Net sales of $228.0
million in the first quarter 2006 were 33% above the first quarter
2005 net sales of $171.5 million primarily due to very favorable
weather conditions, a strong non-residential construction market
and Carlisle's expanded geographic reach and increased total system
sales. Unseasonably warm weather conditions in a majority of
Carlisle's geographic markets resulted in strong sales volumes on
robust construction activity during the quarter ended March 31,
2006. First quarter 2006 EBIT of $32.3 million was significantly
above first quarter 2005 EBIT of $14.6 million and included a $4.7
million pre-tax gain for proceeds received from the settlement of
the aforementioned legal actions. Segment EBIT also reflects a
pre-tax loss for the first quarter 2006 and first quarter 2005
related to the Company's equity share of losses at its European
roofing joint venture, Icopal, of $2.9 million and $4.2 million,
respectively. Industrial Components: Net sales of $224.1 million
for the three months ended March 31, 2006 increased slightly over
net sales of $222.0 million for the same period in 2005. EBIT of
$21.8 million in the first quarter of 2006 was 12% below the $24.7
million reported in the first quarter of 2005. Earnings declined
due to unfavorable product mix as the segment experienced lower
volumes in the consumer lawn and garden, and styled wheels markets
which were partially offset by increased volumes in the commercial
lawn and garden, and high speed trailer markets. In addition to the
unfavorable product mix, margins for the segment were also
negatively impacted by increased utilities and freight costs.
Diversified Components: Net sales of $169.0 million in the first
quarter 2006 were 17% above $144.2 million for the same period of
2005 and first quarter 2006 EBIT of $17.7 million was 26% above
$14.0 million reported for the same period in 2005. Strong demand
in the specialty trailer business, higher volumes for the
foodservice business and acquisitions in the two brake businesses
accounted for most of the increase in net sales and EBIT. The
Company's refrigerated truck body business, Johnson Truck Bodies,
also experienced favorable year-over-year comparisons in net sales
and EBIT. Discontinued Operations In the fourth quarter 2005 the
Company announced it was exiting the businesses of Carlisle Systems
& Equipment which include Carlisle Process Systems and the
Walker Group. On April 10, 2006, Carlisle announced it had signed a
definitive agreement to sell Carlisle Process Systems to Tetra Pak,
a division of the Tetra Laval Group, a private industrial group
headquartered in Switzerland. The sale of the Carlisle Process
Systems businesses is subject to regulatory approvals as well as
other customary closing conditions. The Company is actively
marketing the Walker Group businesses. The sale of Carlisle Process
Systems and the Walker Group businesses are expected to be
completed by December 31, 2006. Income from discontinued
operations, net of tax, in the first quarter 2006 was $2.1 million
as compared to a loss, net of tax, of $0.5 million recorded in the
first quarter 2005. Net Income Net income for the first quarter
2006 was $41.2 million, or $1.33 per diluted share, compared to
$28.3 million, or $0.90 per diluted share, for the first quarter
2005. The increase in net income was primarily due to the increased
net sales and earnings for the Construction Materials and
Diversified Components segments driven by strong end market demand.
Cash Flow Cash flow provided by continuing operations of $4.1
million for the three months ended March 31, 2006 was significantly
stronger as compared with cash used by continuing operations of
$39.3 million for the same period in 2005. Increased operating
income and a reduction in cash required to fund working capital
levels contributed to the significant improvement in operating cash
flow for 2006. Cash used in investing activities was $23.6 million
in 2006 compared to $23.0 million in 2005. Capital expenditures of
$26.2 million were 12% above $23.4 million in 2005 as the Company
continued the construction of its previously announced new
production facilities in Utah and Pennsylvania for the Construction
Materials segment. Cash flow provided by financing activities of
$7.5 million in 2006 decreased from $64.2 million in 2005 on
reduced borrowings required to fund working capital and operating
needs. Backlog Backlog from continuing operations at March 31, 2006
of $295.4 million was consistent with the backlog of $298.5 million
at December 31, 2005 and slightly higher than the backlog of $288.7
million at March 31, 2005. Decreased backlog for the Construction
Materials segment was more than offset by increased backlog in the
Industrial Components segment and the specialty trailer and brake
businesses of the Diversified Components segment on a
year-over-year basis. Conference Call and Webcast The Company will
discuss first quarter 2006 results on a conference call for
investors on Tuesday, April 25, 2006 at 11:00 a.m. Eastern. The
call may be accessed live at
http://www.carlisle.com/investors/conference_call.html, or the
taped call may be listened to shortly following the live call at
the same website location until May 9, 2006. A PowerPoint
presentation will also be available for viewing and/or printing at
the same website location. Forward-Looking Statements This press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results
may differ materially from these expectations due to changes in
global economic, business, competitive, market and regulatory
factors. More detailed information about these factors is contained
in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no duty to update
forward-looking statements. Carlisle is a diversified global
manufacturing company serving the construction materials,
commercial roofing, specialty tire and wheel, power transmission,
heavy-duty brake and friction, heavy-haul truck trailer,
foodservice, and data transmission industries. -0- *T CARLISLE
COMPANIES INCORPORATED Financial Results For the periods ended
March 31 (In millions, except per share data) First Quarter
------------------------- 2006 2005* % Change
------------------------- Net sales $621.1 $537.7 16% Income from
continuing operations, net of tax $ 39.1 $ 28.8 36% Income (loss)
from discontinued operations, net of tax 2.1 (0.5) NM
--------------- Net income $ 41.2 $ 28.3 46% =============== Basic
earnings per share Continuing operations $ 1.28 $ 0.93 38%
Discontinued operations 0.07 (0.02) NM --------------- Net income $
1.35 $ 0.91 48% =============== Diluted earnings per share
Continuing operations $ 1.26 $ 0.92 37% Discontinued operations
0.07 (0.02) NM --------------- Net income $ 1.33 $ 0.90 48%
=============== SEGMENT FINANCIAL DATA (Continuing Operations) (In
millions) First Quarter 2006 2005* ---------------------
---------------------- Sales EBIT % Sales Sales EBIT % Sales
---------------------- ---------------------- Construction
Materials $228.0 $32.3 14.2% $171.5 $14.6 8.5% Industrial
Components 224.1 21.8 9.7% 222.0 24.7 11.1% Diversified Components
169.0 17.7 10.5% 144.2 14.0 9.7% -------------- --------------
Subtotal 621.1 71.8 11.6% 537.7 53.3 9.9% Corporate - (9.2) - (7.1)
-------------- -------------- Total $621.1 $62.6 10.1% $537.7 $46.2
8.6% ============== ============== * 2005 figures have been revised
to reflect discontinued operations and conform with the 2006
segment presentation. NM = Not Meaningful CARLISLE COMPANIES
INCORPORATED Consolidated Statement of Earnings For the periods
ended March 31 (In thousands except per share data) First Quarter
----------------------------- 2006 2005* % Change
----------------------------- Net sales $621,105 $537,738 15.5%
----------------------------- Cost and expenses: Cost of goods sold
493,725 427,571 15.5% Selling and administrative expenses 61,359
55,015 11.5% Research and development expenses 3,884 3,921 -0.9%
Other (income) expense, net (455) 5,045 NM
----------------------------- Earnings before interest & income
taxes 62,592 46,186 35.5% Interest expense, net 4,256 3,905 9.0%
----------------------------- Earnings before income taxes 58,336
42,281 38.0% Income taxes 19,252 13,524 42.4%
----------------------------- 33.0% 32.0% Income from continuing
operations, net of tax 39,084 28,757 35.9%
----------------------------- Percent of net sales 6.3% 5.3% Income
(loss) from discontinued operations, net of tax 2,092 (502) NM
----------------------------- Net income $ 41,176 $ 28,255 45.7%
============================= Basic earnings per share
------------------------ Continuing operations $ 1.28 $ 0.93 37.6%
Discontinued operations 0.07 (0.02) NM
----------------------------- Basic earnings per share $ 1.35 $
0.91 48.4% ============================= Diluted earnings per share
-------------------------- Continuing operations $ 1.26 $ 0.92
37.0% Discontinued operations 0.07 (0.02) NM
----------------------------- Diluted earnings per share $ 1.33 $
0.90 47.8% ============================= Average shares outstanding
(000's) - basic 30,444 30,943 ------------------- Average shares
outstanding (000's) - diluted 30,977 31,331 -------------------
Dividends $ 7,657 $ 7,141 ----------------------------- Dividends
per share $ 0.250 $ 0.230 8.7% ----------------------------- * 2005
figures have been revised to reflect discontinued operations. NM =
Not Meaningful CARLISLE COMPANIES INCORPORATED Comparative
Condensed Consolidated Balance Sheet (In thousands) March 31,
December 31, 2006 2005 ----------- ----------- Assets Current
Assets Cash and cash equivalents $ 23,968 $ 38,745 Receivables
229,632 163,277 Inventories 358,933 336,090 Prepaid expenses and
other 50,612 57,272 Current assets held for sale 62,679 65,788
----------- ----------- Total current assets 725,824 661,172
----------- ----------- Property, plant and equipment, net 444,108
432,749 Other assets 429,998 426,381 Non-current assets held for
sale 42,071 42,955 ----------- ----------- $ 1,642,001 $ 1,563,257
=========== =========== Liabilities and Shareholders' Equity
Current Liabilities Short-term debt, including current maturities $
61,513 $ 57,993 Accounts payable 141,642 127,698 Accrued expenses
145,209 145,375 Current liabilities associated with assets held for
sale 43,196 41,645 ----------- ----------- Total current
liabilities 391,560 372,711 ----------- ----------- Long-term debt
282,212 282,426 Other liabilities 187,075 176,911 Non-current
liabilities associated with assets held for sale 1,045 970
Shareholders' equity 780,109 730,239 ----------- ----------- $
1,642,001 $ 1,563,257 =========== =========== CARLISLE COMPANIES
INCORPORATED Comparative Condensed Consolidated Statement of Cash
Flows For the Three months ended March 31 (In thousands) 2006 2005*
------------------- Operating activities Net income $ 41,176 $
28,255 Reconciliation of net earnings to cash flows: (Income) loss
from discontinued operations, net of tax (2,092) 502 Depreciation
and amortization 14,133 13,230 Loss on equity investments 2,954
3,878 Foreign exchange gain 693 398 Deferred taxes 2,188 1,331 Loss
on investments, property and equipment, net 325 34 Receivables
under securitization program (4,900) (10,000) Working capital
(50,032) (75,691) Other (369) (1,222) ------------------- Net cash
provided by (used in) operating activities 4,076 (39,285)
------------------- Investing activities Capital expenditures
(26,185) (23,353) Proceeds from investments, property and equipment
2,374 29 Other 224 312 ------------------- Net cash used in
investing activities (23,587) (23,012) -------------------
Financing activities Net change in short-term debt and revolving
credit lines 4,654 67,331 Reductions of long-term debt - (129)
Dividends (7,657) (7,141) Treasury shares and stock options, net
10,512 4,119 ------------------- Net cash provided by financing
activities 7,509 64,180 ------------------- Net cash used in
discontinued operations (2,810) (717) ------------------- Effect of
exchange rate changes on cash 35 323 ------------------- Change in
cash and cash equivalents (14,777) 1,489 Cash and cash equivalents
Beginning of period 38,745 25,018 ------------------- End of period
$ 23,968 $ 26,507 ------------------- * 2005 figures have been
revised to reflect discontinued operations. *T
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