Carlisle Companies Incorporated (NYSE:CSL) today announced its
fourth quarter 2023 financial results.
- Record 4th quarter results with GAAP diluted EPS of $3.91
and adjusted EPS of $4.17
- Revenues of $1.1 billion, -1.9% Year over Year
("YoY")
- Operating margin of 22.5% and adj EBITDA margin of 26.4%
expanded 440 bps YoY
- Repurchased 3.5 million shares for $900 million in the
year
- Launched Vision 2030 strategy, including adjusted EPS target
of $40
- Signed agreement to sell CIT as final step in pivot to pure
play building products portfolio
- 2024 outlook includes mid-single-digit revenue growth and
expanding EBITDA margins
Comments from Chris Koch, Chair,
President and Chief Executive Officer
“We are pleased to report that Carlisle had a strong finish to
2023 with record 4th quarter adjusted EPS of $4.17, an increase of
29.5% year-over-year, and adjusted EBITDA margin of 26.4% improving
440 basis points year-over-year on 1.9% lower sales. These results
were driven by stronger CCM sales and higher profitability at both
CCM and CWT supported by favorable weather conditions, solid
contractor backlogs, and stronger operating efficiencies. We
continue to emphasize a pursuit of flawless execution in our
businesses through the Carlisle Operating System ("COS"), providing
value to our customers by delivering innovative solutions for the
building envelope, and delivering the Carlisle Experience to our
customers.
“With our strong finish to 2023 and the end of the past year’s
inventory destocking in our channels, our team enters 2024
energized and clearly aligned with our recently launched Vision
2030. The announced sale agreement of our CIT business serves as a
critical last step in our successful pivot to a best-in-class pure
play building products company. As part of our superior capital
allocation philosophy, we made the strategic decision in 2021 to
allocate future cash flow and human capital to maximize total
returns by focusing on our building products businesses which have
consistently delivered the highest returns. With the expected
proceeds from the sale, we begin 2024 with an eye toward
significant value creation for shareholders and an expectation of
delivering another year of superior ROIC in excess of 25%.
“We expect combined benefits from a backlog of roofing projects
due to constrained labor and tailwinds from prior-year customer
destocking to help mitigate potential macro-economic risks. We have
entered 2024 with a positive growth outlook that we believe is
reasonable, achievable and fully supported by our Vision 2030
strategic objectives. We are confident that innovation with a focus
on energy efficiency and labor-saving solutions puts us on the
right path to drive above-market growth and earn a premium price in
the marketplace.”
Fourth Quarter 2023
Revenue for the fourth quarter of $1.1 billion decreased 1.9%
year-over-year. Organic revenue decreased 2.3% (organic revenue
defined as revenue excluding acquired revenues within the last 12
months and the impact of changes in foreign exchange rates versus
the U.S. Dollar).
Operating income for the fourth quarter of $253.6 million
increased 21.1% from $209.5 million in the fourth quarter of 2022.
Income from continuing operations for the fourth quarter of $191.7
million increased 25.3% from $153.0 million in the fourth quarter
of 2022. Adjusted EBITDA for the fourth quarter of $297.1 million
increased 17.6% from $252.7 million in the fourth quarter of 2022.
Adjusted EBITDA improved 440 bps year-over-year.
Diluted earnings per share ("EPS") from continuing operations
for the fourth quarter of $3.91 increased 33.4% from $2.93 in the
fourth quarter of 2022. Adjusted EPS for the fourth quarter of
$4.17 increased 29.5% from $3.22 in the fourth quarter of 2022
driven by higher margins and share repurchases.
Fourth Quarter 2023 Segment
Highlights
Carlisle Construction Materials ("CCM")
- Revenue of $815.9 million, increased 1.9% (+1.7% organic)
year-over-year, driven by favorable weather and the end of channel
destocking.
- Operating income was $238.3 million and adjusted EBITDA was
$254.9 million, up 11.8% year-over-year, reflecting an adjusted
EBITDA margin of 31.2%. The 270 basis points increase was driven by
lower costs and leveraging volume via COS.
Carlisle Weatherproofing Technologies ("CWT")
- Revenue of $311.6 million, declined 10.8% (-11.6% organic)
year-over-year primarily due to residential demand weakness,
project delays, and the exit of a non core business.
- Operating income was $45.5 million and adjusted EBITDA was
$69.3 million, up 54.3% year-over-year reflecting an adjusted
EBITDA margin of 22.2%, a 940 basis point increase over the prior
year. This increase was driven by strategic sourcing, operating
efficiencies gained through targeted restructuring and realized
synergies from the Henry acquisition.
Cash Flow
Operating cash flow from continuing operations for the year
ended December 31, 2023, was $1.0 billion, an increase of $96.8
million versus the prior year. Free cash flow from continuing
operations was $925.9 million, an increase of $144.3 million versus
the prior year (defined as cash provided by operating activities
less capital expenditures and comprised of continuing operations).
This increase was driven by a reduction in working capital uses
primarily related to a reduction in inventory.
During the year ended December 31, 2023, we deployed $900.0
million toward share repurchases, including $320.0 million in the
current quarter, and paid $160.3 million in cash dividends,
including $41.0 million in the current quarter. As of December 31,
2023, we had 7.4 million shares available for repurchase under our
share repurchase program. Additionally, on September 1, 2023, we
repaid $300.0 million in senior notes. As of December 31, 2023, we
had $576.7 million of cash and cash equivalents and $1.0 billion of
availability under our revolving credit facility.
2024 Outlook
- FY 2024 revenues to increase ~ 5%
- CCM - FY 2024 revenues to increase ~ 6% year-over-year
- CWT - FY 2024 revenues to increase ~ 4% year-over-year
- Adjusted EBITDA margins expanding ~ 50 bps
Conference Call and
Webcast
Carlisle will discuss fourth quarter 2023 results on a
conference call at 5:00 p.m. ET today. The call can be accessed via
webcast, along with related materials, at
www.carlisle.com/investors/events-and-presentations and via
telephone as follows:
Domestic toll free: 888-259-6580 International: 416-764-8624
Conference ID: 65889674
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," "plans," "intends," "forecast," and similar
expressions, and reflect our expectations concerning the future.
Such statements are made based on known events and circumstances at
the time of publication and, as such, are subject in the future to
unforeseen risks and uncertainties. It is possible that our future
performance may differ materially from current expectations
expressed in these forward-looking statements, due to a variety of
factors such as: increasing price and product/service competition
by foreign and domestic competitors, including new entrants;
technological developments and changes; the ability to continue to
introduce competitive new products and services on a timely,
cost-effective basis; our mix of products/services; increases in
raw material costs that cannot be recovered in product pricing;
domestic and foreign governmental and public policy changes
including environmental and industry regulations; the ability to
meet our goals relating to our intended reduction of greenhouse gas
emissions, including our net zero commitments; threats associated
with and efforts to combat terrorism; protection and validity of
patent and other intellectual property rights; the identification
of strategic acquisition targets and our successful completion of
any transaction and integration of our strategic acquisitions; our
successful completion of strategic dispositions; the cyclical
nature of our businesses; the impact of information technology,
cybersecurity or data security breaches at our businesses or third
parties; the outcome of pending and future litigation and
governmental proceedings; the emergence or continuation of
widespread health emergencies such as the COVID-19 pandemic,
including, for example, expectations regarding their impact on our
businesses, including on customer demand, supply chains and
distribution systems, production, our ability to maintain
appropriate labor levels, our ability to ship products to our
customers, our future results, or our full-year financial outlook;
and the other factors discussed in the reports we file with or
furnish to the Securities and Exchange Commission from time to
time. In addition, such statements could be affected by general
industry and market conditions and growth rates, the condition of
the financial and credit markets and general domestic and
international economic conditions, including inflation and interest
rate and currency exchange rate fluctuations. Further, any conflict
in the international arena, including the Russian invasion of
Ukraine and war in the Middle East, may adversely affect general
market conditions and our future performance. Any forward-looking
statement speaks only as of the date on which that statement is
made, and we undertake no duty to update any forward-looking
statement to reflect events or circumstances, including
unanticipated events, after the date on which that statement is
made, unless otherwise required by law. New factors emerge from
time to time and it is not possible for management to predict all
of those factors, nor can it assess the impact of each of those
factors on the business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statement.
Non-GAAP Disclosure
Carlisle reports its financial results in accordance with the
U.S. generally accepted accounting principles (GAAP). This press
release also contains certain financial measures such as adjusted
diluted EPS, adjusted EBITDA, adjusted EBITDA margin, organic
revenue, return on invested capital (ROIC) and free cash flow that
are not recognized under GAAP. Management believes that adjusted
diluted EPS, adjusted EBITDA, adjusted EBITDA margin, organic
revenue and ROIC are useful to investors because they allow for
comparison to Carlisle’s and its segments' performance in prior
periods without the effect of items that, by their nature, tend to
obscure core operating results due to potential variability across
periods based on the timing, frequency and magnitude of such items.
Management also believes free cash flow is useful to investors as
an additional way of viewing Carlisle's liquidity and provides a
more complete understanding of factors and trends affecting
Carlisle's cash flows. As a result, management believes that these
measures enhance the ability of investors to analyze trends in
Carlisle’s businesses and evaluate Carlisle’s performance relative
to similarly-situated companies. Reconciliations of these measures
to amounts reported in Carlisle's consolidated financial statements
are in the supplemental schedules of this press release. These
non-GAAP financial measures may not be comparable to similarly
titled measures reported by other companies. Carlisle is not
providing reconciliations for forward-looking non-GAAP financial
measures because Carlisle does not provide GAAP financial measures
on a forward-looking basis as Carlisle is unable to predict with
reasonable certainty the ultimate outcome of adjusted items with
unreasonable effort. There items are uncertain, depend on various
factors, and could be material to Carlisle's financial results
computed in accordance with GAAP.
About Carlisle Companies
Incorporated
Carlisle Companies Incorporated is a leading supplier of
innovative building envelope products and solutions for more energy
efficient buildings. Through its building products businesses –
Carlisle Construction Materials ("CCM") and Carlisle
Weatherproofing Technologies ("CWT") – and family of leading
brands, Carlisle delivers innovative, labor-reducing and
environmentally responsible products and solutions to customers
through the Carlisle Experience. Carlisle is committed to
generating superior shareholder returns and maintaining a balanced
capital deployment approach, including investments in our
businesses, strategic acquisitions, share repurchases and continued
dividend increases. Leveraging its culture of continuous
improvement as embodied in the Carlisle Operating System ("COS"),
Carlisle has committed to achieving net-zero greenhouse gas
emissions by 2050.
* EPS referenced in this release is from continuing operations
unless otherwise noted.
Carlisle Companies
Incorporated
Unaudited Consolidated Statements
of Income
Three Months Ended
December 31,
Year Ended
December 31,
(in millions, except per share
amounts)
2023
2022
2023
2022
Revenues
$
1,127.5
$
1,149.9
$
4,586.9
$
5,449.4
Cost of goods sold
707.8
794.4
2,952.7
3,583.4
Selling and administrative expenses
157.6
142.1
625.2
623.5
Research and development expenses
8.0
4.8
28.7
19.0
Other operating expense (income), net
0.5
(0.9
)
(2.5
)
18.7
Operating income
253.6
209.5
982.8
1,204.8
Interest expense, net
18.6
18.3
75.6
85.9
Interest income
(7.6
)
(3.2
)
(20.1
)
(6.8
)
Other non-operating (income) expense,
net
(1.9
)
(3.2
)
(3.1
)
2.0
Income from continuing operations before
income taxes
244.5
197.6
930.4
1,123.7
Provision for income taxes
52.8
44.6
211.5
265.7
Income from continuing operations
191.7
153.0
718.9
858.0
Discontinued operations:
Income before income taxes
1.5
20.4
21.7
66.6
(Benefit from) provision for income
taxes
(12.3
)
(0.8
)
(26.8
)
0.6
Income from discontinued operations
13.8
21.2
48.5
66.0
Net income
$
205.5
$
174.2
$
767.4
$
924.0
Basic earnings per share attributable to
common shares:
Income from continuing operations
$
3.96
$
2.97
$
14.38
$
16.53
Income from discontinued operations
0.29
0.40
0.97
1.27
Basic earnings per share
$
4.25
$
3.37
$
15.35
$
17.80
Diluted earnings per share attributable to
common shares:
Income from continuing operations
$
3.91
$
2.93
$
14.22
$
16.30
Income from discontinued operations
0.29
0.40
0.96
1.26
Diluted earnings per share
$
4.20
$
3.33
$
15.18
$
17.56
Average shares outstanding:
Basic
48.2
51.5
49.9
51.8
Diluted
48.9
52.1
50.4
52.5
Dividends declared and paid per share
$
0.85
$
0.75
$
3.20
$
2.58
Carlisle Companies
Incorporated
Unaudited Condensed Consolidated
Statements of Cash Flows
Year Ended
December 31,
(in millions)
2023
2022
Net cash provided by operating
activities
$
1,201.3
$
1,000.9
Investing activities:
Proceeds from sale of discontinued
operation, net of cash disposed
510.6
132.0
Capital expenditures
(142.2
)
(183.5
)
Acquisitions, net of cash acquired
(36.1
)
(24.7
)
Investment in securities
1.1
10.3
Other investing activities, net
19.0
4.8
Net cash provided by (used in) investing
activities
352.4
(61.1
)
Financing activities:
Repayments of notes
(300.0
)
(350.0
)
Borrowings from revolving credit
facility
84.0
—
Repayments of revolving credit
facility
(84.0
)
—
Repurchases of common stock
(900.0
)
(400.0
)
Dividends paid
(160.3
)
(134.4
)
Proceeds from exercise of stock
options
25.7
40.4
Withholding tax paid related to
stock-based compensation
(11.7
)
(14.7
)
Other financing activities, net
(3.4
)
(3.3
)
Net cash used in financing activities
(1,349.7
)
(862.0
)
Effect of foreign currency exchange rate
changes on cash and cash equivalents
1.5
(2.2
)
Change in cash and cash equivalents
205.5
75.6
Less: change in cash and cash equivalents
of discontinued operations
(6.4
)
9.9
Cash and cash equivalents at beginning of
period
364.8
299.1
Cash and cash equivalents at end of
period
$
576.7
$
364.8
Carlisle Companies
Incorporated
Unaudited Selected Consolidated
Balance Sheet Data
(in millions)
December 31,
2023
December 31,
2022
Cash and cash equivalents
$
576.7
$
364.8
Long-term debt, including current
portion
2,289.4
2,582.8
Total stockholders' equity
2,829.0
3,024.4
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Organic
Revenue
Organic revenue (defined as revenue excluding acquired revenues
within the last 12 months and the impact of changes in foreign
exchange rates versus the U.S. Dollar) is intended to provide
investors and others with information about Carlisle's and its
segments' recurring operating performance. This information differs
from revenue determined in accordance with accounting principles
generally accepted in the United States of America ("GAAP") and
should not be considered in isolation or as a substitute for
measures of performance determined in accordance with GAAP.
Carlisle's and its segments' organic revenue follows, which may not
be comparable to similarly titled measures reported by other
companies.
Three Months Ended December
31,
(in millions, except percentages)
CSL
CCM
CWT
2022 Revenue (GAAP)
$
1,149.9
$
800.4
$
349.5
Organic
(26.6
)
(2.3
)%
13.8
1.7
%
(40.4
)
(11.6
)%
Acquisitions
2.4
0.2
%
—
—
%
2.4
0.7
%
FX impact
1.8
0.2
%
1.7
0.2
%
0.1
0.1
%
Total change
(22.4
)
(1.9
)%
15.5
1.9
%
(37.9
)
(10.8
)%
2023 Revenue (GAAP)
$
1,127.5
$
815.9
$
311.6
Year Ended December
31,
(in millions, except percentages)
CSL
CCM
CWT
2022 Revenues (GAAP)
$
5,449.4
$
3,885.2
$
1,564.2
Organic
(862.7
)
(15.8
)%
(633.0
)
(16.3
)%
(229.7
)
(14.7
)%
Acquisitions
2.4
—
%
—
—
%
2.4
0.2
%
FX impact
(2.2
)
—
%
1.2
—
%
(3.4
)
(0.2
)%
Total change
(862.5
)
(15.8
)%
(631.8
)
(16.3
)%
(230.7
)
(14.7
)%
2023 Revenues (GAAP)
$
4,586.9
$
3,253.4
$
1,333.5
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Free
Cash Flow
Free cash flow is intended to provide investors and others with
information about Carlisle's liquidity and provides a more complete
understanding of factors and trends affecting Carlisle's cash
flows. This information differs from operating cash flow determined
in accordance with GAAP and should not be considered in isolation
or as a substitute for measures of performance determined in
accordance with GAAP. Carlisle's free cash flow follows, which may
not be comparable to similarly titled measures reported by other
companies.
Three Months Ended
December 31,
Year Ended
December 31,
(in millions)
2023
2022
2023
2022
Operating cash flow (GAAP)
$
388.9
$
412.3
$
1,201.3
$
1,000.9
Less: operating cash flow from
discontinued operations
13.6
14.5
164.1
60.5
Operating cash flow from continuing
operations
$
375.3
$
397.8
$
1,037.2
$
940.4
Capital expenditures (GAAP)
$
(35.9
)
$
(53.0
)
$
(142.2
)
$
(183.5
)
Less: capital expenditures from
discontinued operations
(11.6
)
(5.7
)
(30.9
)
(24.7
)
Capital expenditures from continuing
operations
$
(24.3
)
$
(47.3
)
$
(111.3
)
$
(158.8
)
Operating cash flow from continuing
operations
$
375.3
$
397.8
$
1,037.2
$
940.4
Capital expenditures from continuing
operations
(24.3
)
(47.3
)
(111.3
)
(158.8
)
Free cash flow from continuing
operations
$
351.0
$
350.5
$
925.9
$
781.6
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT,
Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin
Earnings before interest and taxes ("EBIT"), adjusted EBIT,
adjusted earnings before interest, taxes, depreciation and
amortization ("EBITDA") and adjusted EBITDA margin are intended to
provide investors and others with information about Carlisle's and
its segments' performance without the effect of items that, by
their nature, tend to obscure core operating results due to
potential variability across periods based on the timing, frequency
and magnitude of such items. As a result, management believes that
these measures enhance the ability of investors to analyze trends
in Carlisle's businesses and evaluate Carlisle's performance
relative to similarly-situated companies. This information differs
from net income and operating income determined in accordance with
GAAP and should not be considered in isolation or as a substitute
for measures of performance determined in accordance with GAAP.
Carlisle's and its segments' EBIT, adjusted EBIT, adjusted EBITDA
and adjusted EBITDA margin follows, which may not be comparable to
similarly titled measures reported by other companies.
Three Months Ended
December 31,
Year Ended
December 31,
(in millions, except percentages)
2023
2022
2023
2022
Net income (GAAP)
$
205.5
$
174.2
$
767.4
$
924.0
Less: Income from discontinued operations
(GAAP)
13.8
21.2
48.5
66.0
Income from continuing operations
(GAAP)
191.7
153.0
718.9
858.0
Provision for income taxes
52.8
44.6
211.5
265.7
Interest expense, net
18.6
18.3
75.6
85.9
Interest income
(7.6
)
(3.2
)
(20.1
)
(6.8
)
EBIT
255.5
212.7
985.9
1,202.8
Exit and disposal, and facility
rationalization costs
3.3
0.1
7.8
0.2
Inventory step-up amortization and
transaction costs
0.4
1.2
2.0
4.3
Impairment charges
—
—
1.8
25.3
Losses from acquisitions and disposals
1.0
—
2.8
0.1
Losses from insurance
—
—
—
0.3
Losses from litigation
1.6
—
1.4
0.1
Total non-comparable items
6.3
1.3
15.8
30.3
Adjusted EBIT
261.8
214.0
1,001.7
1,233.1
Depreciation
17.4
16.4
66.3
66.5
Amortization
17.9
22.3
84.8
92.1
Adjusted EBITDA
$
297.1
$
252.7
$
1,152.8
$
1,391.7
Divided by:
Total revenues
$
1,127.5
$
1,149.9
$
4,586.9
$
5,449.4
Adjusted EBITDA margin
26.4
%
22.0
%
25.1
%
25.5
%
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA
Margin
Three Months Ended December
31, 2023
(in millions, except percentages)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
238.3
$
45.5
$
(30.2
)
Non-operating (income) expense, net(1)
(0.4
)
0.2
(1.7
)
EBIT
238.7
45.3
(28.5
)
Exit and disposal, and facility
rationalization costs
3.3
—
—
Inventory step-up amortization and
transaction costs
—
0.5
(0.1
)
Losses from acquisitions and disposals
0.9
0.1
—
Losses from litigation
—
1.5
0.1
Total non-comparable items
4.2
2.1
—
Adjusted EBIT
242.9
47.4
(28.5
)
Depreciation
12.2
4.3
0.9
Amortization
(0.2
)
17.6
0.5
Adjusted EBITDA
$
254.9
$
69.3
$
(27.1
)
Divided by:
Total revenues
$
815.9
$
311.6
$
—
Adjusted EBITDA margin
31.2
%
22.2
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Three Months Ended December
31, 2022
(in millions, except percentages)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
213.3
$
22.5
$
(26.3
)
Non-operating (income) expense, net(1)
(0.1
)
0.4
(3.5
)
EBIT
213.4
22.1
(22.8
)
Exit and disposal, and facility
rationalization costs
0.1
—
—
Inventory step-up amortization and
transaction costs
—
—
1.2
Losses (gains) from acquisitions and
disposals
0.1
0.1
(0.2
)
Total non-comparable items
0.2
0.1
1.0
Adjusted EBIT
213.6
22.2
(21.8
)
Depreciation
10.4
5.0
1.0
Amortization
4.0
17.7
0.6
Adjusted EBITDA
$
228.0
$
44.9
$
(20.2
)
Divided by:
Total revenues
$
800.4
$
349.5
$
—
Adjusted EBITDA margin
28.5
%
12.8
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA
Margin
Year Ended December 31,
2023
(in millions)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
913.9
$
187.9
$
(119.0
)
Non-operating (income) expense, net(1)
(0.4
)
0.2
(2.9
)
EBIT
914.3
187.7
(116.1
)
Exit and disposal, and facility
rationalization costs
5.1
2.7
—
Inventory step-up amortization and
acquisition costs
—
0.5
1.5
Impairment charges
—
1.8
—
Losses (gains) from acquisitions and
disposals
0.4
2.5
(0.1
)
Losses (gains) from litigation
—
1.5
(0.1
)
Total non-comparable items
5.5
9.0
1.3
Adjusted EBIT
919.8
196.7
(114.8
)
Depreciation
45.0
17.5
3.8
Amortization
12.0
70.6
2.2
Adjusted EBITDA
$
976.8
$
284.8
$
(108.8
)
Total revenues
$
3,253.4
$
1,333.5
$
—
Adjusted EBITDA margin
30.0
%
21.4
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Year Ended December 31,
2022
(in millions)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
1,175.0
$
128.6
$
(98.8
)
Non-operating expense (income), net(1)
2.0
0.8
(0.8
)
EBIT
1,173.0
127.8
(98.0
)
Exit and disposal, and facility
rationalization costs
0.1
0.1
—
Inventory step-up amortization and
acquisition costs
—
—
4.3
Impairment charges
—
25.0
0.3
Losses (gains) from acquisitions and
disposals
—
0.3
(0.2
)
Losses from insurance
—
0.3
—
Losses from litigation
—
—
0.1
Total non-comparable items
0.1
25.7
4.5
Adjusted EBIT
1,173.1
153.5
(93.5
)
Depreciation
38.7
24.1
3.7
Amortization
16.9
73.0
2.2
Adjusted EBITDA
$
1,228.7
$
250.6
$
(87.6
)
Total revenues
$
3,885.2
$
1,564.2
$
—
Adjusted EBITDA margin
31.6
%
16.0
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures -
Adjusted Net Income and Adjusted Diluted EPS
Adjusted net income and adjusted diluted earnings per share is
intended to provide investors and others with information about
Carlisle's performance without the effect of items that, by their
nature, tend to obscure Carlisle's core operating results due to
potential variability across periods based on the timing, frequency
and magnitude of such items. This information differs from net
income and diluted earnings per share determined in accordance with
GAAP and should not be considered in isolation or as a substitute
for measures of performance determined in accordance with GAAP.
Carlisle's adjusted net income and adjusted diluted earnings per
share follows, which may not be comparable to similarly titled
measures reported by other companies.
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
(in millions, except per share
amounts)
Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Net income (GAAP)
$
205.5
$
4.20
$
174.2
$
3.33
Less: Income from discontinued operations
(GAAP)
13.8
0.29
21.2
0.40
Income from continuing operations
(GAAP)
191.7
3.91
153.0
2.93
Exit and disposal, and facility
rationalization costs
3.3
2.3
0.05
0.1
—
—
Inventory step-up amortization and
transaction costs
0.4
0.3
0.01
1.2
1.0
0.02
Losses from acquisitions and disposals
1.0
0.7
0.01
—
—
—
Losses from litigation
1.6
1.2
0.02
—
—
—
Acquisition-related amortization(3)
16.6
12.7
0.26
21.0
15.8
0.30
Discrete tax items(4)
—
(4.5
)
(0.09
)
—
(1.5
)
(0.03
)
Total adjustments
12.7
0.26
15.3
0.29
Adjusted net income
$
204.4
$
4.17
$
168.3
$
3.22
(1)
The impact to net income reflects the tax
effect of noted items, which is based on the statutory rate in the
jurisdiction in which the expense or income is deductible or
taxable.
(2)
The per share impact of adjustments to
each period is based on diluted shares outstanding using the
two-class method.
(3)
Acquisition-related amortization includes
the amortization of customer relationships, technology, trade names
and other intangible assets recorded in purchase accounting in
connection with a business combination. These intangible assets
contribute to revenue generation and the amortization of these
assets will recur until such intangible assets are fully
amortized.
(4)
Discrete tax items include current period
tax expense or benefit related to prior year items, the tax impact
of foreign currency gains and losses, or changes in tax laws or
rates.
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - Adjusted Net Income and Adjusted Diluted EPS
Year Ended
December 31, 2023
Year Ended
December 31, 2022
(in millions, except per share
amounts)
Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Net income (GAAP)
$
767.4
$
15.18
$
924.0
$
17.56
Less: Income from discontinued operations
(GAAP)
48.5
0.96
66.0
1.26
Income from continuing operations
(GAAP)
718.9
14.22
858.0
16.30
Exit and disposal, and facility
rationalization costs
7.8
5.6
0.11
0.2
0.1
—
Inventory step-up amortization and
acquisition costs
2.0
1.5
0.03
4.3
3.3
0.06
Impairment charges
1.8
1.3
0.03
25.3
19.2
0.37
Losses from acquisitions and disposals
2.8
2.1
0.04
0.1
0.1
—
Losses from insurance
—
—
—
0.3
0.2
—
Losses from litigation
1.4
1.1
0.02
0.1
0.1
—
Acquisition-related amortization(3)
79.6
60.1
1.19
87.7
66.1
1.26
Discrete tax items(4)
—
(6.3
)
(0.12
)
—
(6.3
)
(0.12
)
Total adjustments
65.4
1.30
82.8
1.57
Adjusted net income
$
784.3
$
15.52
$
940.8
$
17.87
(1)
The impact to net income reflects the tax
effect of noted items, which is based on the statutory rate in the
jurisdiction in which the expense or income is deductible or
taxable.
(2)
The per share impact of adjustments to
each period is based on diluted shares outstanding using the
two-class method.
(3)
Acquisition-related amortization includes
the amortization of customer relationships, technology, trade names
and other intangible assets recorded in purchase accounting in
connection with a business combination. These intangible assets
contribute to revenue generation and the amortization of these
assets will recur until such intangible assets are fully
amortized.
(4)
Discrete tax items include current period
tax expense or benefit related to prior year items, the tax impact
of foreign currency gains and losses, or changes in tax laws or
rates.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240206705757/en/
Mehul Patel Vice President, Investor Relations (310) 592-9668
mpatel@carlisle.com
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