Carlisle Companies Incorporated (NYSE:CSL) today announced its
second quarter 2021 financial results.
- Reported consolidated second quarter revenue of $1.2
billion, up 22% from second quarter 2020
- Delivered second quarter diluted EPS of $1.77; adjusted
diluted EPS of $2.16
- Repurchased 643 thousand shares for $116 million, 1.6
million shares for $266 million YTD
- Strong volume leverage at CCM and continued price discipline
delivered second quarter margin expansion year-over-year
- Signed a definitive agreement to acquire Henry Company for
$1.575 billion
Comments from Chris Koch, Chairman,
President and Chief Executive Officer
"I am pleased that Carlisle's performance continues to
strengthen as we accelerate into the recovery. Given our adherence
to strict safety measures across our global footprint, I am happy
to report Carlisle's COVID-19 related infection rates approached
zero in the second quarter. Over a year removed from the pandemic's
initial impact, we are well positioned to meet Carlisle's
center-led Vision 2025 objectives, supported by confidence in the
fundamentals of our businesses, positive long-term trends, and a
commitment to providing our customers superior service through the
Carlisle Experience.
I am also excited by our recently announced agreement to acquire
Henry Company, a best-in-class provider of building envelope
systems that control the flow of water, vapor and energy to
optimize building sustainability. Henry also will augment CCM’s
growth and innovation efforts in commercial construction and
increase its presence in residential construction in North America.
Henry generated revenue of $511 million and adjusted EBITDA of $119
million, representing an adjusted EBITDA margin of 23%, for the
twelve months ended May 31, 2021.
We also continue to deliver on our Vision 2025, center-led
strategies. As a reminder, Vision 2025 provides clear direction and
consistency of mission to guide our efforts to deliver in excess of
$15 of earnings per share. A few highlights of the second quarter
of 2021 include:
- On April 20th, Carlisle announced plans to invest more than $60
million to build a state-of-the-art facility in Sikeston, Missouri
where CCM will manufacture energy-efficient polyiso
insulation.
- On May 25th, consistent with our portfolio optimization
strategy, we announced an agreement to sell Carlisle Brake &
Friction (CBF) to CentroMotion for the opportunity to receive $375
million.
- On June 2nd, we announced that construction has begun on CCM's
sixth TPO manufacturing line, which will produce the commercial
roofing industry’s first 16-foot-wide TPO membranes.
- We continue to take a disciplined approach to pricing across
our businesses, realizing the full value of our products through
the Carlisle Experience. These efforts were supported by our
purchasing teams, which both ensured supply in the current
constrained environment, and optimized our input costs.
- Our ESG efforts continue to gain momentum. In April, we
published our 2020 Sustainability Report. We also are making solid
progress gathering data to set energy consumption and GHG reduction
targets.
- We achieved gross savings, benefits and cost avoidance of 1% as
a percent of sales through the Carlisle Operating System, within
our 1-2% targeted range.
- Finally, we remained disciplined and opportunistic in our
capital deployment strategy. In the quarter, we repurchased 643
thousand shares for $116 million, bringing our year-to-date total
to 1.6 million shares for $266 million. We also returned $28
million to shareholders in the form of dividends.
CCM's performance continues to confirm our conviction that
Carlisle's strategic pivot to our highest-returning business is the
correct path. Carlisle's positive second quarter results were
driven by CCM, which continues to benefit from the strong
re-roofing cycle in the United States. All of CCM's platforms
delivered double digit sales growth, while our Architectural Metals
and Spray Foam Insulation businesses delivered over 40% growth. CCM
is committed to delivering the full value of the Carlisle
Experience and being the manufacturer of choice with second-to-none
reliability for all of our channel partners. These efforts were
clearly demonstrated in the second quarter with solid execution
meeting unusually strong demand despite the significant supply
constraints. CCM continues to operate with agility and precision,
adjusting quickly to the downturn in 2020, and just as quickly
adjusting to the upturn in 2021. Lastly, our new investments in
Sikeston, MO and industry-first 16-foot-wide TPO line in Carlisle,
PA are evidence of our conviction in CCM's attractive long-term
growth prospects.
While CCM generated most of our earnings in the second quarter
of 2021, our other businesses exhibited continued progress. CIT's
results were in line with subdued expectations. Given expanding
global vaccine rollout, increased domestic travel, European
countries opening their borders to American and other vaccinated
travelers and improvements in CIT's order book, we continue to
believe CIT is positioned for sequential improvement going forward.
Taken together with the improving backlog in our Medical
Technologies business, we are optimistic CIT will return to growth
in the second half of 2021.
CFT delivered improved revenue and operating income performance
in the quarter driven by a commitment to new product introductions,
price discipline and integrating our newer platforms. With end
markets strengthening, the team continues to execute on Vision 2025
initiatives and focus on enhancing our customers' experience.
Vision 2025 continues to provide Carlisle clear direction. We
have stayed the course on our strategy throughout the past year and
a half and have regained positive momentum across all segments. We
are well positioned to accelerate through the recovery and beyond.
In closing, I want to once again express my gratitude to our
dedicated employees, their families, our business partners and all
those associated with Carlisle's success.
Second Quarter 2021
Revenue of $1.2 billion increased 22.0% year-over-year. Organic
revenue increased 20.7% (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). Acquired revenues contributed a total of 0.4% in the
quarter. Changes in foreign exchange rates had a positive 0.9%
impact on revenues.
Operating income for the second quarter of $133.8 million
increased 16.9% from $114.5 million in the second quarter of 2020.
Income from continuing operations for the second quarter of $94.1
million increased 23.8% from $76.0 million in the second quarter of
2020. Adjusted EBITDA for the second quarter of 2021 of $191.7
million increased 6.3% from $180.4 million in the second quarter of
2020.
Diluted EPS for the second quarter of $1.77 increased 29.2% from
$1.37 in the second quarter of 2020. Adjusted diluted EPS for the
second quarter of $2.16 increased 10.8% from $1.95 in the second
quarter of 2020. The increase in EPS reflects better operating
results at CCM and CFT and share repurchases, partially offset by
higher corporate expense and lower operating results at CIT.
Second Quarter 2021 Segment
Highlights
Carlisle Construction Materials (CCM)
- Revenues of $937.3 million, up 27.5% (+26.8% organic)
year-over-year, were driven by strength of U.S. commercial roofing
demand, price, strong performances by our Architectural Metals and
Polyurethane platforms, and positive results in Europe.
- Operating income was $177.4 million, up 28.9% year-over-year.
Operating margin of 18.9%, a 20 basis point improvement, was driven
by higher volumes, price and savings from COS, partially offset by
raw material inflation.
- Adjusted EBITDA was $201.2 million, up 24.0% year-over-year,
reflecting an adjusted EBITDA margin of 21.5%, a 60 basis point
decline.
- We now expect full year sales to be up high-teens.
Carlisle Interconnect Technologies (CIT)
- Revenues of $168.9 million, down 8.2% (-9.7% organic)
year-over-year, were negatively impacted by the continued decline
in orders from aerospace customers, partially offset by price
realization and acquisitions.
- Operating loss was $12.9 million. Operating margin of -7.6%,
was affected by lower volumes, unfavorable mix and raw material
inflation, partially offset by savings from COS and lower operating
expenses.
- Adjusted EBITDA was $13.5 million, down 41.3% year-over-year,
reflecting an adjusted EBITDA margin of 8.0%, a 450 basis point
decline.
- We continue to expect full year sales to be down mid-single to
high-single digits.
Carlisle Fluid Technologies (CFT)
- Revenues of $71.6 million, up 54.0% (+44.3% organic)
year-over-year, reflected higher volumes, especially in Automotive
Refinish and Transportation markets, price and acquisitions.
- Operating income was $6.6 million. Operating margin of 9.2%
reflected higher volumes, price realization, and savings from COS,
partially offset by higher SG&A and operating expenses.
- Adjusted EBITDA was $11.4 million, up 395.7% year-over-year,
reflecting an adjusted EBITDA margin of 15.9%, a 1,100 basis point
improvement.
- We now expect full year sales to be up mid-teens.
Beginning in the second quarter of 2021, Carlisle determined
that its business Carlisle Brake & Friction (CBF) met the
discontinued operations criteria and, as such, the business has
been excluded from continuing operations and segment results for
all periods presented.
Cash Flow
Operating cash flow from continuing operations for the six
months ended June, 30 2021, was $160.7 million, a decrease of $50.2
million versus the prior year. Free cash flow from continuing
operations (defined as cash provided by operating activities less
capital expenditures, and comprised of continuing operations) was
$111.2 million for the six months ended June, 30 2021, a decrease
of $56.4 million versus the prior year. Our priorities for the use
of cash are to invest in growth and performance improvement
opportunities for our existing businesses through capital
expenditures, complete strategic acquisitions that meet return
criteria and return value to shareholders through dividend payments
and share repurchases.
During the three months ended June 30, 2021, we deployed $115.6
million in share repurchases and $27.6 million in dividends paid.
As of June 30, 2021, we had $713.3 million of cash and $1.0 billion
of availability under our revolving credit facility.
Conference Call and
Webcast
Carlisle will discuss second quarter 2021 results on a
conference call at 5:00 p.m. ET today. The call may be accessed
live by going to the Investor Relations section of the Carlisle
website, or the taped call may be listened to shortly following the
live call at the same website location. A PowerPoint presentation
will accompany the call and can be found on the Carlisle website as
well.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the potential or expected
impacts of the global coronavirus (COVID-19) pandemic.
Forward-looking statements generally use words such as “expect,”
“foresee,” “anticipate,” “believe,” “project,” “should,”
“estimate,” “will,” “plans,” “forecast,” and similar expressions,
and reflect our expectations concerning the future. 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: risks from the global coronavirus
(COVID-19) pandemic including, for example, expectations regarding
the impact of the coronavirus (COVID-19) 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, 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 which cannot be
recovered in product pricing; domestic and foreign governmental and
public policy changes including environmental and industry
regulations; threats associated with and efforts to combat
terrorism; protection and validity of patent and other intellectual
property rights; the successful identification, completion and
integration of our strategic acquisitions, including Henry Company;
the successful completion of strategic dispositions, including CBF;
the cyclical nature of our businesses; and the outcome of pending
and future litigation and governmental proceedings. 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 interest rate and currency exchange rate
fluctuations. Further, any conflict in the international arena may
adversely affect general market conditions and our future
performance. We refer you to the documents we file from time to
time with the Securities and Exchange Commission, such as our
reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of
these and other risks and uncertainties that could cause our actual
results to differ materially from our current expectations and from
the forward-looking statements contained in this press release. We
undertake no obligation to update any forward-looking
statement.
Non-GAAP Disclosure
This press release also contains certain financial measures
such as adjusted diluted earnings per share, adjusted EBITDA,
adjusted EBITDA margin, organic revenue and free cash flow which
are not recognized under U.S. generally accepted accounting
principles. Management believes that adjusted diluted earnings per
share, adjusted EBITDA, adjusted EBITDA margin and organic revenue
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
business and evaluate Carlisle’s performance relative to peer
companies. Reconciliations of these measures to amounts reported in
Carlisle's consolidated financial statements are in the
supplemental schedules of this press release.
About Carlisle Companies
Incorporated
Carlisle Companies Incorporated is a leading supplier of
innovative Building Envelope products and energy-efficient
solutions for customers creating sustainable buildings of the
future. Through its Construction Materials (CCM) business and
family of leading brands, Carlisle delivers innovative,
labor-reducing and environmentally responsible products and
solutions to customers across the planet through the Carlisle
Experience. Over the life of a building, Carlisle’s products help
drive lower GHG emissions, improve energy savings for building
owners and operators, and increase a building’s resiliency to the
elements. Driven by our strategic plan, Vision 2025, 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. Carlisle also is a
leading provider of products to the Aerospace, Medical Technologies
and General Industrial markets through its Interconnect
Technologies (CIT) and Fluid Technologies (CFT) business segments.
Carlisle is headquartered in Scottsdale, Arizona with more than 180
locations worldwide. Leveraging the talents of over 13,000
employees, Carlisle generated $4.2 billion in revenues in 2020.
Learn more about Carlisle at www.carlisle.com.
- EPS referenced in this release is from continuing operations
unless otherwise noted.
Carlisle Companies
Incorporated
Unaudited Consolidated Statements
of Income
Three Months Ended June
30,
Six Months Ended June
30,
(in millions, except per share
amounts)
2021
2020
2021
2020
Revenues
$
1,177.8
$
965.4
$
2,118.7
$
1,924.6
Cost of goods sold
870.1
695.3
1,566.1
1,385.1
Selling and administrative expenses
161.3
144.6
312.1
295.5
Research and development expenses
13.8
11.7
24.2
23.6
Other operating income, net
(1.2
)
(0.7
)
(2.2
)
(1.3
)
Operating income
133.8
114.5
218.5
221.7
Interest expense, net
19.2
19.7
38.4
38.7
Loss on extinguishment of debt
—
—
—
8.8
Interest income
(0.4
)
(2.6
)
(0.9
)
(3.3
)
Other non-operating expense (income),
net
1.1
(0.7
)
4.7
(0.9
)
Income from continuing operations before
income taxes
113.9
98.1
176.3
178.4
Provision for income taxes
19.8
22.1
33.1
37.6
Income from continuing operations
94.1
76.0
143.2
140.8
Discontinued operations:
Income (loss) before income taxes
6.3
(1.1
)
10.8
(5.2
)
Provision for (benefit from) income
taxes
1.1
(0.5
)
2.5
(1.6
)
Income (loss) from discontinued
operations
5.2
(0.6
)
8.3
(3.6
)
Net income
$
99.3
$
75.4
$
151.5
$
137.2
Earnings per share attributable to common
shares:
Income from continuing operations
$
1.79
$
1.38
$
2.71
$
2.54
Income (loss) from discontinued
operations
0.10
(0.01
)
0.16
(0.07
)
Basic earnings per share
$
1.89
$
1.37
$
2.87
$
2.47
Diluted earnings per share attributable to
common shares:
Income from continuing operations
$
1.77
$
1.37
$
2.68
$
2.52
Income (loss) from discontinued
operations
0.10
(0.01
)
0.16
(0.07
)
Diluted earnings per share
$
1.87
$
1.36
$
2.84
$
2.45
Average shares outstanding:
Basic
52.3
54.8
52.7
55.3
Diluted
53.0
55.2
53.3
55.8
Dividends declared and paid per share
$
0.525
$
0.50
$
1.05
$
1.00
Carlisle Companies
Incorporated
Unaudited Condensed Consolidated
Statements of Cash Flows
Six Months Ended June
30,
(in millions)
2021
2020
Net cash provided by operating
activities
$
171.5
$
226.3
Investing activities:
Capital expenditures
(55.1
)
(48.5
)
Investment in securities
(10.2
)
—
Acquisitions, net of cash acquired
—
(2.4
)
Other investing activities, net
1.8
0.9
Net cash used in investing activities
(63.5
)
(50.0
)
Financing activities:
Proceeds from notes
—
740.7
Repayments of notes
—
(258.5
)
Borrowings from revolving credit
facility
—
500.0
Repayments of revolving credit
facility
—
(500.0
)
Financing costs
—
(24.2
)
Repurchases of common stock
(265.6
)
(191.8
)
Dividends paid
(56.0
)
(56.0
)
Proceeds from exercise of stock
options
45.6
11.4
Withholding tax paid related to
stock-based compensation
(7.7
)
(6.4
)
Other financing activities, net
(0.8
)
(0.5
)
Net cash (used in) provided by financing
activities
(284.5
)
214.7
Effect of foreign currency exchange rate
changes on cash and cash equivalents
(0.3
)
(4.5
)
Change in cash and cash equivalents
(176.8
)
386.5
Less: change in cash and cash equivalents
of discontinued operations
7.0
0.9
Cash and cash equivalents at beginning of
period
897.1
342.5
Cash and cash equivalents at end of
period
$
713.3
$
728.1
Carlisle Companies
Incorporated
Unaudited Selected Consolidated
Balance Sheet Data
(in millions)
June 30, 2021
December 31,
2020
Cash and cash equivalents
$
713.3
$
897.1
Long-term debt, including current
portion
2,081.6
2,081.3
Total shareholders' equity
2,417.9
2,537.7
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 U.S. GAAP and should not
be considered in isolation or as a substitute for measures of
performance determined in accordance with U.S. 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 June
30,
(in millions)
CSL
CCM
CIT
CFT
2020 Revenue (GAAP)
$
965.4
$
734.9
$
184.0
$
46.5
Volume/Price
200.2
20.7
%
197.4
26.8
%
(17.8
)
(9.7
)
%
20.6
44.3
%
Organic revenue
200.2
20.7
%
197.4
26.8
%
(17.8
)
(9.7
)
%
20.6
44.3
%
Acquisitions
3.6
0.4
%
—
—
%
1.9
1.1
%
1.7
3.6
%
FX impact
8.6
0.9
%
5.0
0.7
%
0.8
0.4
%
2.8
6.1
%
Total change
212.4
22.0
%
202.4
27.5
%
(15.1
)
(8.2
)
%
25.1
54.0
%
2021 Revenue (GAAP)
$
1,177.8
$
937.3
$
168.9
$
71.6
Six Months Ended June
30,
(in millions)
CSL
CCM
CIT
CFT
2020 Revenue (GAAP)
$
1,924.6
$
1,411.3
$
408.5
$
104.8
Volume/Price
171.1
8.9
%
236.1
16.7
%
(88.7
)
(21.7
)
%
23.7
22.7
%
Organic revenue
171.1
8.9
%
236.1
16.7
%
(88.7
)
(21.7
)
%
23.7
22.7
%
Acquisitions
7.8
0.4
%
—
—
%
3.7
0.9
%
4.1
3.9
%
FX impact
15.2
0.8
%
9.2
0.7
%
1.2
0.3
%
4.8
4.5
%
Total change
194.1
10.1
%
245.3
17.4
%
(83.8
)
(20.5
)
%
32.6
31.1
%
2021 Revenue (GAAP)
$
2,118.7
$
1,656.6
$
324.7
$
137.4
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 the Company's cash
flows. This information differs from operating cash flow determined
in accordance with U.S. GAAP and should not be considered in
isolation or as a substitute for measures of performance determined
in accordance with U.S. GAAP. Carlisle's free cash flow follows,
which may not be comparable to similarly titled measures reported
by other companies.
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2021
2020
2021
2020
Operating cash flow (GAAP)
$
103.9
$
173.1
$
171.5
$
226.3
Less: operating cash flow from
discontinued operations
7.3
11.3
10.8
15.4
Operating cash flow from continuing
operations
$
96.6
$
161.8
$
160.7
$
210.9
Capital expenditures (GAAP)
$
(35.1
)
$
(25.7
)
$
(55.1
)
$
(48.5
)
Less: capital expenditures from
discontinued operations
(3.1
)
(3.6
)
(5.6
)
(5.2
)
Capital expenditures from continuing
operations
$
(32.0
)
$
(22.1
)
$
(49.5
)
$
(43.3
)
Operating cash flow from continuing
operations
$
96.6
$
161.8
$
160.7
$
210.9
Less: capital expenditures from continuing
operations
(32.0
)
(22.1
)
(49.5
)
(43.3
)
Free cash flow from continuing
operations
$
64.6
$
139.7
$
111.2
$
167.6
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 income, taxes, depreciation and
amortization ("EBITDA") and adjusted EBITDA margin is 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. This information differs from net
income and operating income determined in accordance with U.S. GAAP
and should not be considered in isolation or as a substitute for
measures of performance determined in accordance with U.S. 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 June
30,
Six Months Ended June
30,
(in millions, except per share
amounts)
2021
2020
2021
2020
Net income (GAAP)
$
99.3
$
75.4
$
151.5
$
137.2
Less: income (loss) from discontinued
operations (GAAP)
5.2
(0.6
)
8.3
(3.6
)
Income from continuing operations
(GAAP)
94.1
76.0
143.2
140.8
Provision for income taxes
19.8
22.1
33.1
37.6
Interest expense, net
19.2
19.7
38.4
38.7
Interest income
(0.4
)
(2.6
)
(0.9
)
(3.3
)
EBIT
132.7
115.2
213.8
213.8
Exit and disposal, and facility
rationalization costs
7.5
7.3
10.6
10.8
Inventory step-up amortization and
acquisition costs
1.3
4.9
2.2
5.6
Impairment charges
—
—
—
—
Losses from acquisitions and disposals
0.1
2.0
3.5
2.2
Losses from insurance
0.5
—
0.5
—
Losses from litigation
0.1
—
0.1
—
Losses on extinguishment of debt
—
—
—
8.8
Total non-comparable items
9.5
14.2
16.9
27.4
Adjusted EBIT
142.2
129.4
230.7
241.2
Depreciation
20.3
21.2
40.6
41.4
Amortization
29.2
29.8
58.2
60.5
Adjusted EBITDA
$
191.7
$
180.4
$
329.5
$
343.1
Divided by:
Total revenues
$
1,177.8
$
965.4
$
2,118.7
$
1,924.6
Adjusted EBITDA margin
16.3
%
18.7
%
15.6
%
17.8
%
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT,
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended June 30,
2021
(in millions)
CCM
CIT
CFT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
177.4
$
(12.9
)
$
6.6
$
(37.3
)
Non-operating expense (income)(1)
0.1
—
1.1
(0.1
)
EBIT
177.3
(12.9
)
5.5
(37.2
)
Exit and disposal, and facility
rationalization costs
—
7.7
(0.2
)
—
Inventory step-up amortization and
acquisition costs
—
—
—
1.3
Impairment charges
—
—
—
—
(Gains) losses from acquisitions and
disposals
(0.1
)
—
0.2
—
Losses from insurance
0.5
—
—
—
Losses from litigation
—
—
—
0.1
Losses on extinguishment of debt
—
—
—
—
Total non-comparable items
0.4
7.7
—
1.4
Adjusted EBIT
177.7
(5.2
)
5.5
(35.8
)
Depreciation
12.0
6.0
1.4
0.9
Amortization
11.5
12.7
4.5
0.5
Adjusted EBITDA
$
201.2
$
13.5
$
11.4
$
(34.4
)
Divided by:
Total revenues
$
937.3
$
168.9
$
71.6
$
—
Adjusted EBITDA margin
21.5
%
8.0
%
15.9
%
NM
(1)
Includes other non-operating (income)
expense, which may be presented in separate line items on the
Condensed Consolidated Statements of Income.
Three Months Ended June 30,
2020
(in millions)
CCM
CIT
CFT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
137.6
$
(1.5
)
$
(5.2
)
$
(16.4
)
Non-operating expense (income)(1)
2.6
0.2
—
(3.5
)
EBIT
135.0
(1.7
)
(5.2
)
(12.9
)
Exit and disposal, and facility
rationalization costs
0.2
5.0
2.1
—
Inventory step-up amortization and
acquisition costs
—
—
—
4.9
Impairment charges
—
—
—
—
Losses from acquisitions and disposals
2.0
—
—
—
Losses (gains) from insurance
—
—
—
—
Losses (gains) from litigation
—
—
—
—
Losses on extinguishment of debt
—
—
—
—
Total non-comparable items
2.2
5.0
2.1
4.9
Adjusted EBIT
137.2
3.3
(3.1
)
(8.0
)
Depreciation
12.5
6.6
1.3
0.8
Amortization
12.5
13.1
4.1
0.1
Adjusted EBITDA
$
162.2
$
23.0
$
2.3
$
(7.1
)
Divided by:
Total revenues
$
734.9
$
184.0
$
46.5
$
—
Adjusted EBITDA margin
22.1
%
12.5
%
4.9
%
NM
(1)
Includes other non-operating (income)
expense, which may be presented in separate line items on the
Condensed Consolidated Statements of Income.
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT,
Adjusted EBITDA and Adjusted EBITDA Margin
Six Months Ended June 30,
2021
(in millions)
CCM
CIT
CFT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
298.7
$
(23.6
)
$
10.9
$
(67.5
)
Non-operating expense(1)
2.3
—
1.5
0.9
EBIT
296.4
(23.6
)
9.4
(68.4
)
Exit and disposal, and facility
rationalization costs
—
10.2
0.4
—
Inventory step-up amortization and
acquisition costs
—
—
0.1
2.1
Impairment charges
—
—
—
—
Losses from acquisitions and disposals
2.2
0.3
0.2
0.8
Losses from insurance
0.5
—
—
—
Losses from litigation
—
—
—
0.1
Losses on extinguishment of debt
—
—
—
—
Total non-comparable items
2.7
10.5
0.7
3.0
Adjusted EBIT
299.1
(13.1
)
10.1
(65.4
)
Depreciation
23.9
12.3
2.6
1.8
Amortization
23.0
25.3
8.9
1.0
Adjusted EBITDA
$
346.0
$
24.5
$
21.6
$
(62.6
)
Total revenues
$
1,656.6
$
324.7
$
137.4
$
—
Adjusted EBITDA margin
20.9
%
7.5
%
15.7
%
NM
(1)
Includes other non-operating (income)
expense, which may be presented in separate line items on the
Condensed Consolidated Statements of Income.
Six Months Ended June 30,
2020
(in millions)
CCM
CIT
CFT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
245.3
$
14.9
$
(2.4
)
$
(36.1
)
Non-operating expense (income)(1)
2.9
(0.6
)
(3.3
)
8.9
EBIT
242.4
15.5
0.9
(45.0
)
Exit and disposal, and facility
rationalization costs
0.3
8.4
2.1
—
Inventory step-up amortization and
acquisition costs
0.2
—
0.2
5.2
Impairment charges
—
—
—
—
Losses (gains) from acquisitions and
disposals
2.3
—
—
(0.1
)
Losses (gains) from insurance
—
—
—
—
Losses (gains) from litigation
—
—
—
—
Losses on extinguishment of debt
—
—
—
8.8
Total non-comparable items
2.8
8.4
2.3
13.9
Adjusted EBIT
245.2
23.9
3.2
(31.1
)
Depreciation
24.7
12.6
2.6
1.5
Amortization
25.1
26.2
9.0
0.2
Adjusted EBITDA
$
295.0
$
62.7
$
14.8
$
(29.4
)
Total revenues
$
1,411.3
$
408.5
$
104.8
$
—
Adjusted EBITDA margin
20.9
%
15.3
%
14.1
%
NM
(1)
Includes other non-operating (income)
expense, which may be presented in separate line items on the
Condensed Consolidated Statements of Income.
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Adjusted net income and
Adjusted 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 the Company’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
U.S. GAAP and should not be considered in isolation or as a
substitute for measures of performance determined in accordance
with U.S. GAAP. Carlisle's adjusted net income and adjusted diluted
earning per share follows, which may not be comparable to similarly
titled measures reported by other companies.
Three Months Ended June 30,
2021
Three Months Ended June 30,
2020
(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)
$
99.3
$
1.87
$
75.4
$
1.36
Less: income (loss) from discontinued
operations (GAAP)
5.2
0.10
(0.6
)
(0.01
)
Income from continuing operations
(GAAP)
$
94.1
$
1.77
$
76.0
$
1.37
Exit and disposal, and facility
rationalization costs
7.5
5.7
0.11
7.3
5.5
0.10
Inventory step-up amortization and
acquisition costs
1.3
1.1
0.02
4.9
3.7
0.07
Impairment charges
—
—
—
—
—
—
Losses from acquisitions and disposals
0.1
0.1
—
2.0
2.0
0.04
Losses from insurance
0.5
0.4
0.01
—
—
—
Losses from litigation
0.1
0.1
—
—
—
—
Losses on extinguishment of debt
—
—
—
—
—
—
Acquisition-related amortization(3)
27.9
21.1
0.40
29.4
22.4
0.40
Discrete tax items(4)
—
(8.2
)
(0.15
)
—
(1.4
)
(0.03
)
Total adjustments
20.3
0.39
32.2
0.58
Adjusted net income
$
114.4
$
2.16
$
108.2
$
1.95
(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 EPS
Six Months Ended June 30,
2021
Six Months Ended June 30,
2020
(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)
$
151.5
$
2.84
$
137.2
$
2.45
Less: income (loss) from discontinued
operations (GAAP)
8.3
0.16
(3.6
)
(0.07
)
Income from continuing operations
(GAAP)
143.2
2.68
140.8
2.52
Exit and disposal, and facility
rationalization costs
10.6
8.0
0.15
10.8
8.2
0.15
Inventory step-up amortization and
acquisition costs
2.2
1.7
0.03
5.6
4.3
0.08
Impairment charges
—
—
—
—
—
—
Losses from acquisitions and
disposals(3)
3.5
2.6
0.05
2.2
2.5
0.05
Losses from insurance
0.5
0.4
0.01
—
—
—
Losses from litigation
0.1
0.1
—
—
—
—
Losses on extinguishment of debt
—
—
—
8.8
6.6
0.12
Acquisition-related amortization(4)
56.0
42.4
0.79
59.7
45.3
0.80
Discrete tax items(5)
—
(9.8
)
(0.18
)
—
(5.0
)
(0.09
)
Total adjustments
45.4
0.85
61.9
1.11
Adjusted net income
$
188.6
$
3.53
$
202.7
$
3.63
(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)
After-tax impact includes discrete items
related to indemnification asset write-offs, which had a zero
impact to net income and diluted EPS ($(0.8) million in the first
six months of 2021 and $0.1 million in the first six months of
2020).
(4)
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.
(5)
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
Transaction EBITDA and EBITDA Margin
Earnings before interest, taxes, depreciation and amortization
("EBITDA") transaction EBITDA and transaction EBITDA margin is
intended to provide investors and others with information about
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. This information differs from net income determined in
accordance with U.S. GAAP and should not be considered in isolation
or as a substitute for measures of performance determined in
accordance with U.S. GAAP. Henry's EBITDA, transaction EBITDA and
transaction EBITDA margin follows, which may not be comparable to
similarly titled measures reported by other companies.
(in millions)
LTM 5/31/2021
Estimated Henry revenue (GAAP)
$
507
Adjustment to annualize acquired
revenue
4
Transaction revenue
$
511
Estimated Henry net income (GAAP)
$
32
Income tax expense
10
Interest expense
24
Depreciation and amortization
40
Henry EBITDA
106
Adjustment to annualize acquired
EBITDA
2
Transaction adjustments(1)
11
Transaction EBITDA
$
119
Transaction EBITDA margin
23
%
(1)
Transaction adjustments include other
adjustments related to gains and losses from acquisitions,
insurance, litigation, exit and disposal and other items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210722005917/en/
Jim Giannakouros, CFA Vice President of Investor Relations (480)
781-5135 jgiannakouros@carlisle.com
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