Carlisle Companies Reports Record Second Quarter Results
Carlisle Companies (NYSE: CSL) reported record revenues of $1.85 billion for Q2 2022, marking a 57% year-over-year increase and 42% organic growth. GAAP diluted EPS reached $5.62, a 217.5% rise compared to the previous year. The company benefitted from strong demand in commercial construction and energy-efficient solutions, effectively offsetting inflation through pricing actions. Operating income surged to $410.6 million, up 206.9%. Carlisle raised its full-year sales growth expectation to 40%, driven by solid performances in its Construction Materials and Weatherproofing divisions.
- Record Q2 2022 revenues of $1.85 billion, up 57% YoY.
- GAAP diluted EPS of $5.62, a 217.5% increase from last year.
- Strong demand in commercial roofing and energy-efficient solutions.
- Operating income increased 206.9% to $410.6 million.
- Raised full-year sales growth expectations to approximately 40%.
- Inflationary pressures from raw materials, freight, and wages.
- Negative impact of 0.9% on revenues from foreign exchange rate changes.
-
Generated record second quarter revenues of
, up$1.85 billion 57% year-over-year (42% organic) -
Delivered record second quarter GAAP Diluted EPS of
and Adjusted Diluted EPS of$5.62 , an increase of$6.15 185% from prior year - Leveraged strong new commercial construction and re-roofing demand, coupled with increasing demand for energy efficient solutions for buildings
- Offset continuing and pervasive cost inflation with pricing actions
- Exceeding synergy targets of Henry integration plan
- Benefiting from the pivot to a more concentrated building products platform
Comments from
"I am extremely pleased with the outstanding performance delivered by the entire
As we move past the mid-point of 2022 and reflect on our Vision 2025 strategic plan that we launched in 2018, I am encouraged by our second quarter results. We believe these results clearly demonstrate
Achievements in the second quarter included:
-
Our pivot to a more concentrated building products platform continued with the first full quarter of performance for our new
Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT) divisions. Both teams experienced a second quarter marked by strong demand, robust backlogs and solid execution; - A further reinforcement of our differentiated approach to pricing that reflects the value of the Carlisle Experience, and the benefits of our products that contribute to the energy efficiency of buildings;
-
A continued and disciplined approach to capital allocation, including acquisitions, highlighted by Henry, which continues to exceed expectations and deliver on our synergy commitments of
;$30 million -
Investing in our businesses to expand capacity, drive innovation, and develop world-class capabilities, including:
-
Ongoing construction of our state-of-the-art polyiso insulation facility built to LEED specifications in
Sikeston, MO , which is on track to be operational in the second quarter of 2023; and -
Launching of our 6th TPO line in
Carlisle, PA , which, in September, will introduce to the market an industry-first 16-foot-wide TPO membrane, and is expected to result in significant labor savings, improved installation quality and less packaging waste for our installers;
-
Ongoing construction of our state-of-the-art polyiso insulation facility built to LEED specifications in
-
A continued commitment to the introduction of new products, which accounted for over
of sales in the second quarter;$100 million -
Repurchasing 204 thousand shares for
, adding to our cumulative share repurchases since 2017 of nearly$50 million ; and$2 billion -
Paying
of dividends in the quarter, continuing our 45-year trend of continuous and annually increasing dividends.$28 million
Vision 2025 continues to provide the
In closing, I want to again express my gratitude for the excellent performance of
Second Quarter 2022
Revenue of
Operating income for the second quarter of
Diluted earnings per share (EPS) for the second quarter of
Second Quarter 2022 Segment Highlights
-
Revenues of
, up$1.1 billion 54.0% (+54.9% organic) year-over-year, were driven by the strength ofU.S. commercial roofing demand and price realization across all product lines, partially offset by unfavorable impact from changes in foreign exchange rates. -
Operating income was
, up$358.9 million 131.5% year-over-year. Adjusted EBITDA was , up$371.3 million 120.6% year-over-year, reflecting an adjusted EBITDA margin of33.3% , which was positively impacted by higher volumes, positive pricing, favorable mix, and savings from the Carlisle Operating System (COS), and partially offset by raw material, freight and wage inflation. -
We have now raised full year 2022 sales expectations to approximately
40% year-over-year versus30% previously.
Carlisle Weatherproofing Technologies (CWT)
-
Revenues of
, up$448.9 million 109.3% (+24.4% organic) year-over-year, were driven by strength across our product lines, the Henry acquisition and positive pricing. -
Operating income was
, up$59.0 million 163.4% year-over-year. Adjusted EBITDA was , up$83.5 million 153.8% year-over-year reflecting an adjusted EBITDA margin of18.6% , which was positively impacted by higher volumes, contribution from Henry, positive pricing, favorable mix, and savings from COS, and partially offset by raw material, freight and wage inflation. -
We now expect full year 2022 sales to increase approximately
60% year-over-year, which includes approximately20% organic growth.
-
Revenues of
, up$212.6 million 25.9% (+26.1% organic) year-over-year, were driven by continued strengthening of aerospace and medical end markets. -
Operating income was
. Adjusted EBITDA was$7.9 million , up$27.0 million 100.0% year-over-year reflecting an adjusted EBITDA margin of12.7% , which was positively impacted by higher volumes, positive pricing, and COS savings, and partially offset by raw materials and wage inflation, unfavorable mix and higher operating expenses. -
We now expect full year 2022 sales to increase approximately
20% year-over-year up from our previous expectation of low-double digit growth.
-
Revenues of
, up$72.0 million 0.6% (+5.5% organic) year-over-year, reflected positive pricing, partially offset by unfavorable impact from changes in foreign exchange rates. -
Operating income was
. Adjusted EBITDA was$7.0 million , up$12.2 million 7.0% year-over-year reflecting an adjusted EBITDA margin of16.9% , which was positively impacted by price realization and savings from COS, and partially offset by raw material and wage inflation. -
We continue to expect full year 2022 sales to increase approximately
10% year-over-year.
Cash Flow
Operating cash flow from continuing operations for the six months ended
During the quarter ended
Conference Call and Webcast
Domestic toll free: 844-200-6205
International: +1 929-526-1599
Conference ID: 168744
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 COVID-19 pandemic. 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: risks from the global COVID-19 pandemic, including, for example, expectations regarding the impact of the COVID-19 pandemic 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 that 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 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; and the outcome of pending and future litigation and governmental proceedings and the other factors discussed in the reports we file with or furnish to the
Non-GAAP Disclosure
About
|
||||||||||||||||
Unaudited Consolidated Statements of Income |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in millions, except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
$ |
1,846.9 |
|
|
$ |
1,177.8 |
|
|
$ |
3,343.2 |
|
|
$ |
2,118.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
|
1,214.9 |
|
|
|
870.1 |
|
|
|
2,220.3 |
|
|
|
1,566.1 |
|
Selling and administrative expenses |
|
|
210.6 |
|
|
|
161.3 |
|
|
|
413.6 |
|
|
|
312.1 |
|
Research and development expenses |
|
|
12.6 |
|
|
|
13.8 |
|
|
|
24.9 |
|
|
|
24.2 |
|
Other operating income, net |
|
|
(1.8 |
) |
|
|
(1.2 |
) |
|
|
(3.5 |
) |
|
|
(2.2 |
) |
Operating income |
|
|
410.6 |
|
|
|
133.8 |
|
|
|
687.9 |
|
|
|
218.5 |
|
Interest expense, net |
|
|
22.4 |
|
|
|
19.2 |
|
|
|
45.0 |
|
|
|
38.4 |
|
Interest income |
|
|
(0.6 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.9 |
) |
Other non-operating expense, net |
|
|
2.5 |
|
|
|
1.1 |
|
|
|
2.6 |
|
|
|
4.7 |
|
Income from continuing operations before income taxes |
|
|
386.3 |
|
|
|
113.9 |
|
|
|
641.1 |
|
|
|
176.3 |
|
Provision for income taxes |
|
|
90.4 |
|
|
|
19.8 |
|
|
|
150.9 |
|
|
|
33.1 |
|
Income from continuing operations |
|
|
295.9 |
|
|
|
94.1 |
|
|
|
490.2 |
|
|
|
143.2 |
|
|
|
|
|
|
|
|
|
|
||||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
4.8 |
|
|
|
6.3 |
|
|
|
4.1 |
|
|
|
10.8 |
|
(Benefit from) provision for income taxes |
|
|
(0.8 |
) |
|
|
1.1 |
|
|
|
(0.8 |
) |
|
|
2.5 |
|
Income from discontinued operations |
|
|
5.6 |
|
|
|
5.2 |
|
|
|
4.9 |
|
|
|
8.3 |
|
Net income |
|
$ |
301.5 |
|
|
$ |
99.3 |
|
|
$ |
495.1 |
|
|
$ |
151.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to common shares: |
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
5.70 |
|
|
$ |
1.79 |
|
|
$ |
9.41 |
|
|
$ |
2.71 |
|
Income from discontinued operations |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.09 |
|
|
|
0.16 |
|
Basic earnings per share |
|
$ |
5.81 |
|
|
$ |
1.89 |
|
|
$ |
9.50 |
|
|
$ |
2.87 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to common shares: |
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
5.62 |
|
|
$ |
1.77 |
|
|
$ |
9.28 |
|
|
$ |
2.68 |
|
Income from discontinued operations |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.09 |
|
|
|
0.16 |
|
Diluted earnings per share |
|
$ |
5.73 |
|
|
$ |
1.87 |
|
|
$ |
9.37 |
|
|
$ |
2.84 |
|
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
51.8 |
|
|
|
52.3 |
|
|
|
52.0 |
|
|
|
52.7 |
|
Diluted |
|
|
52.5 |
|
|
|
53.0 |
|
|
|
52.7 |
|
|
|
53.3 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared and paid per share |
|
$ |
0.54 |
|
|
$ |
0.525 |
|
|
$ |
1.08 |
|
|
$ |
1.05 |
|
|
||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
|
||||||
|
|
Six Months Ended
|
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by operating activities |
|
$ |
223.5 |
|
|
$ |
171.5 |
|
|
|
|
|
|
||||
Investing activities: |
|
|
|
|
||||
Proceeds from sale of discontinued operation, net of cash disposed |
|
|
132.0 |
|
|
|
— |
|
Capital expenditures |
|
|
(82.7 |
) |
|
|
(55.1 |
) |
Acquisitions, net of cash acquired |
|
|
(24.7 |
) |
|
|
— |
|
Investment in securities |
|
|
10.3 |
|
|
|
(10.2 |
) |
Other investing activities, net |
|
|
2.0 |
|
|
|
1.8 |
|
Net cash provided by (used in) investing activities |
|
|
36.9 |
|
|
|
(63.5 |
) |
|
|
|
|
|
||||
Financing activities: |
|
|
|
|
||||
Repurchases of common stock |
|
|
(175.0 |
) |
|
|
(265.6 |
) |
Dividends paid |
|
|
(56.7 |
) |
|
|
(56.0 |
) |
Proceeds from exercise of stock options |
|
|
16.0 |
|
|
|
45.6 |
|
Withholding tax paid related to stock-based compensation |
|
|
(12.5 |
) |
|
|
(7.7 |
) |
Other financing activities, net |
|
|
(1.7 |
) |
|
|
(0.8 |
) |
Net cash used in financing activities |
|
|
(229.9 |
) |
|
|
(284.5 |
) |
|
|
|
|
|
||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(1.7 |
) |
|
|
(0.3 |
) |
|
|
|
|
|
||||
Change in cash and cash equivalents |
|
|
28.8 |
|
|
|
(176.8 |
) |
Less: change in cash and cash equivalents of discontinued operations |
|
|
— |
|
|
|
7.0 |
|
Cash and cash equivalents at beginning of period |
|
|
324.4 |
|
|
|
897.1 |
|
Cash and cash equivalents at end of period |
|
$ |
353.2 |
|
|
$ |
713.3 |
|
|
||||||
Unaudited Selected Consolidated Balance Sheet Data |
||||||
(in millions) |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
353.2 |
|
$ |
324.4 |
Long-term debt, including current portion |
|
|
2,929.9 |
|
|
2,927.4 |
Total stockholders' equity |
|
|
2,875.1 |
|
|
2,629.5 |
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
|
|
Three Months Ended |
||||||||||||||||||||||||||||
(in millions) |
|
CSL |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
||||||||||||||||||||
2021 Revenue (GAAP) |
|
$ |
1,177.8 |
|
|
|
$ |
722.8 |
|
|
|
$ |
214.5 |
|
|
|
$ |
168.9 |
|
|
|
$ |
71.6 |
|
|
|||||
Volume/Price |
|
|
497.0 |
|
42.2 |
% |
|
|
396.9 |
|
54.9 |
% |
|
|
52.2 |
|
24.4 |
% |
|
|
44.0 |
|
26.1 |
% |
|
|
3.9 |
|
5.5 |
% |
Organic revenue |
|
|
497.0 |
|
42.2 |
% |
|
|
396.9 |
|
54.9 |
% |
|
|
52.2 |
|
24.4 |
% |
|
|
44.0 |
|
26.1 |
% |
|
|
3.9 |
|
5.5 |
% |
Acquisitions |
|
|
183.0 |
|
15.5 |
% |
|
|
— |
|
— |
% |
|
|
183.0 |
|
85.3 |
% |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
FX impact |
|
|
(10.9 |
) |
(0.9 |
)% |
|
|
(6.3 |
) |
(0.9 |
)% |
|
|
(0.8 |
) |
(0.4 |
)% |
|
|
(0.3 |
) |
(0.2 |
)% |
|
|
(3.5 |
) |
(4.9 |
)% |
Total change |
|
|
669.1 |
|
56.8 |
% |
|
|
390.6 |
|
54.0 |
% |
|
|
234.4 |
|
109.3 |
% |
|
|
43.7 |
|
25.9 |
% |
|
|
0.4 |
|
0.6 |
% |
2022 Revenue (GAAP) |
|
$ |
1,846.9 |
|
|
|
$ |
1,113.4 |
|
|
|
$ |
448.9 |
|
|
|
$ |
212.6 |
|
|
|
$ |
72.0 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||||||||||||
(in millions) |
|
CSL |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
||||||||||||||||||||
2021 Revenue (GAAP) |
|
$ |
2,118.7 |
|
|
|
$ |
1,279.2 |
|
|
|
$ |
377.4 |
|
|
|
$ |
324.7 |
|
|
|
$ |
137.4 |
|
|
|||||
Volume/Price |
|
|
918.7 |
|
43.4 |
% |
|
|
724.4 |
|
56.6 |
% |
|
|
110.8 |
|
29.4 |
% |
|
|
73.1 |
|
22.5 |
% |
|
|
10.4 |
|
7.5 |
% |
Organic revenue |
|
|
918.7 |
|
43.4 |
% |
|
|
724.4 |
|
56.6 |
% |
|
|
110.8 |
|
29.4 |
% |
|
|
73.1 |
|
22.5 |
% |
|
|
10.4 |
|
7.5 |
% |
Acquisitions |
|
|
321.0 |
|
15.1 |
% |
|
|
— |
|
— |
% |
|
|
321.0 |
|
85.0 |
% |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
FX impact |
|
|
(15.2 |
) |
(0.7 |
)% |
|
|
(9.1 |
) |
(0.7 |
)% |
|
|
(1.2 |
) |
(0.3 |
)% |
|
|
(0.2 |
) |
— |
% |
|
|
(4.7 |
) |
(3.4 |
)% |
Total change |
|
|
1,224.5 |
|
57.8 |
% |
|
|
715.3 |
|
55.9 |
% |
|
|
430.6 |
|
114.1 |
% |
|
|
72.9 |
|
22.5 |
% |
|
|
5.7 |
|
4.1 |
% |
2022 Revenue (GAAP) |
|
$ |
3,343.2 |
|
|
|
$ |
1,994.5 |
|
|
|
$ |
808.0 |
|
|
|
$ |
397.6 |
|
|
|
$ |
143.1 |
|
|
Unaudited Non-GAAP Financial Measures - Free Cash Flow
Free cash flow is intended to provide investors and others with information about
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating cash flow (GAAP) |
|
$ |
179.2 |
|
|
$ |
103.9 |
|
|
$ |
223.5 |
|
|
$ |
171.5 |
|
Less: operating cash flow from discontinued operations |
|
|
(1.4 |
) |
|
|
7.3 |
|
|
|
(2.1 |
) |
|
|
10.8 |
|
Operating cash flow from continuing operations |
|
$ |
180.6 |
|
|
$ |
96.6 |
|
|
$ |
225.6 |
|
|
$ |
160.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures (GAAP) |
|
$ |
(51.6 |
) |
|
$ |
(35.1 |
) |
|
$ |
(82.7 |
) |
|
$ |
(55.1 |
) |
Less: capital expenditures from discontinued operations |
|
|
— |
|
|
|
(3.1 |
) |
|
|
— |
|
|
|
(5.6 |
) |
Capital expenditures from continuing operations |
|
$ |
(51.6 |
) |
|
$ |
(32.0 |
) |
|
$ |
(82.7 |
) |
|
$ |
(49.5 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Operating cash flow from continuing operations |
|
$ |
180.6 |
|
|
$ |
96.6 |
|
|
$ |
225.6 |
|
|
$ |
160.7 |
|
Capital expenditures from continuing operations |
|
|
(51.6 |
) |
|
|
(32.0 |
) |
|
|
(82.7 |
) |
|
|
(49.5 |
) |
Free cash flow from continuing operations |
|
$ |
129.0 |
|
|
$ |
64.6 |
|
|
$ |
142.9 |
|
|
$ |
111.2 |
|
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 the Company'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 the Company’s businesses and evaluate the Company’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.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in millions, except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (GAAP) |
|
$ |
301.5 |
|
|
$ |
99.3 |
|
|
$ |
495.1 |
|
|
$ |
151.5 |
|
Less: income from discontinued operations (GAAP) |
|
|
5.6 |
|
|
|
5.2 |
|
|
|
4.9 |
|
|
|
8.3 |
|
Income from continuing operations (GAAP) |
|
|
295.9 |
|
|
|
94.1 |
|
|
|
490.2 |
|
|
|
143.2 |
|
Provision for income taxes |
|
|
90.4 |
|
|
|
19.8 |
|
|
|
150.9 |
|
|
|
33.1 |
|
Interest expense, net |
|
|
22.4 |
|
|
|
19.2 |
|
|
|
45.0 |
|
|
|
38.4 |
|
Interest income |
|
|
(0.6 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.9 |
) |
EBIT |
|
|
408.1 |
|
|
|
132.7 |
|
|
|
685.3 |
|
|
|
213.8 |
|
Exit and disposal, and facility rationalization costs |
|
|
0.7 |
|
|
|
7.5 |
|
|
|
2.8 |
|
|
|
10.6 |
|
Inventory step-up amortization and transaction costs |
|
|
0.8 |
|
|
|
1.3 |
|
|
|
0.8 |
|
|
|
2.2 |
|
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Losses from acquisitions and disposals |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
3.5 |
|
Losses from insurance |
|
|
— |
|
|
|
0.5 |
|
|
|
0.3 |
|
|
|
0.5 |
|
Losses from litigation |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
Total non-comparable items |
|
|
1.6 |
|
|
|
9.5 |
|
|
|
4.5 |
|
|
|
16.9 |
|
Adjusted EBIT |
|
|
409.7 |
|
|
|
142.2 |
|
|
|
689.8 |
|
|
|
230.7 |
|
Depreciation |
|
|
24.0 |
|
|
|
20.3 |
|
|
|
48.0 |
|
|
|
40.6 |
|
Amortization |
|
|
38.5 |
|
|
|
29.2 |
|
|
|
79.2 |
|
|
|
58.2 |
|
Adjusted EBITDA |
|
$ |
472.2 |
|
|
$ |
191.7 |
|
|
$ |
817.0 |
|
|
$ |
329.5 |
|
Divided by: |
|
|
|
|
|
|
|
|
||||||||
Total revenues |
|
$ |
1,846.9 |
|
|
$ |
1,177.8 |
|
|
$ |
3,343.2 |
|
|
$ |
2,118.7 |
|
Adjusted EBITDA margin |
|
|
25.6 |
% |
|
|
16.3 |
% |
|
|
24.4 |
% |
|
|
15.6 |
% |
|
||||||||||||||||||||
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
(in millions) |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
|
Corporate and unallocated |
||||||||||
Operating income (loss) (GAAP) |
|
$ |
358.9 |
|
|
$ |
59.0 |
|
|
$ |
7.9 |
|
|
$ |
7.0 |
|
|
$ |
(22.2 |
) |
Non-operating expense (income)(1) |
|
|
0.9 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
1.8 |
|
EBIT |
|
|
358.0 |
|
|
|
58.9 |
|
|
|
8.2 |
|
|
|
7.0 |
|
|
|
(24.0 |
) |
Exit and disposal, and facility rationalization costs |
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
Inventory step-up amortization and transaction costs |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Losses from acquisitions and disposals |
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
(Gains) losses from litigation |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.1 |
|
Total non-comparable items |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
0.8 |
|
Adjusted EBIT |
|
|
357.9 |
|
|
|
59.0 |
|
|
|
9.0 |
|
|
|
7.0 |
|
|
|
(23.2 |
) |
Depreciation |
|
|
9.3 |
|
|
|
6.4 |
|
|
|
6.1 |
|
|
|
1.4 |
|
|
|
0.8 |
|
Amortization |
|
|
4.1 |
|
|
|
18.1 |
|
|
|
11.9 |
|
|
|
3.8 |
|
|
|
0.6 |
|
Adjusted EBITDA |
|
$ |
371.3 |
|
|
$ |
83.5 |
|
|
$ |
27.0 |
|
|
$ |
12.2 |
|
|
$ |
(21.8 |
) |
Divided by: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
|
$ |
1,113.4 |
|
|
$ |
448.9 |
|
|
$ |
212.6 |
|
|
$ |
72.0 |
|
|
$ |
— |
|
Adjusted EBITDA margin |
|
|
33.3 |
% |
|
|
18.6 |
% |
|
|
12.7 |
% |
|
|
16.9 |
% |
|
|
NM |
|
(1) |
Includes other non-operating expense (income), which may be presented in separate line items on the Condensed Consolidated Statements of Income. |
|
|
Three Months Ended |
||||||||||||||||||
(in millions) |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
|
Corporate and unallocated |
||||||||||
Operating income (loss) (GAAP) |
|
$ |
155.0 |
|
|
$ |
22.4 |
|
|
$ |
(12.9 |
) |
|
$ |
6.6 |
|
|
$ |
(37.3 |
) |
Non-operating expense (income)(1) |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
(0.1 |
) |
EBIT |
|
|
155.0 |
|
|
|
22.3 |
|
|
|
(12.9 |
) |
|
|
5.5 |
|
|
|
(37.2 |
) |
Exit and disposal, and facility rationalization costs |
|
|
— |
|
|
|
— |
|
|
|
7.7 |
|
|
|
(0.2 |
) |
|
|
— |
|
Inventory step-up amortization and transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
(Gains) losses from acquisitions and disposals |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Losses from insurance |
|
|
0.3 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Losses from litigation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Total non-comparable items |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
7.7 |
|
|
|
— |
|
|
|
1.4 |
|
Adjusted EBIT |
|
|
155.2 |
|
|
|
22.5 |
|
|
|
(5.2 |
) |
|
|
5.5 |
|
|
|
(35.8 |
) |
Depreciation |
|
|
9.1 |
|
|
|
2.9 |
|
|
|
6.0 |
|
|
|
1.4 |
|
|
|
0.9 |
|
Amortization |
|
|
4.0 |
|
|
|
7.5 |
|
|
|
12.7 |
|
|
|
4.5 |
|
|
|
0.5 |
|
Adjusted EBITDA |
|
$ |
168.3 |
|
|
$ |
32.9 |
|
|
$ |
13.5 |
|
|
$ |
11.4 |
|
|
$ |
(34.4 |
) |
Divided by: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
|
$ |
722.8 |
|
|
$ |
214.5 |
|
|
$ |
168.9 |
|
|
$ |
71.6 |
|
|
$ |
— |
|
Adjusted EBITDA margin |
|
|
23.3 |
% |
|
|
15.3 |
% |
|
|
8.0 |
% |
|
|
15.9 |
% |
|
|
NM |
|
(1) |
Includes other non-operating expense (income), which may be presented in separate line items on the Condensed Consolidated Statements of Income. |
|
||||||||||||||||||||
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin |
||||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||
(in millions) |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
|
Corporate and unallocated |
||||||||||
Operating income (loss) (GAAP) |
|
$ |
620.0 |
|
|
$ |
96.5 |
|
|
$ |
5.4 |
|
|
$ |
11.8 |
|
|
$ |
(45.8 |
) |
Non-operating expense (income)(1) |
|
|
0.9 |
|
|
|
0.2 |
|
|
|
(0.8 |
) |
|
|
0.1 |
|
|
|
2.2 |
|
EBIT |
|
|
619.1 |
|
|
|
96.3 |
|
|
|
6.2 |
|
|
|
11.7 |
|
|
|
(48.0 |
) |
Exit and disposal, and facility rationalization costs |
|
|
— |
|
|
|
0.1 |
|
|
|
2.7 |
|
|
|
— |
|
|
|
— |
|
Inventory step-up amortization and transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
Impairment charges |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gains) losses from acquisitions and disposals |
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.4 |
|
|
|
0.1 |
|
|
|
— |
|
Losses from insurance |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gains) losses from litigation |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.1 |
|
Total non-comparable items |
|
|
(0.1 |
) |
|
|
0.6 |
|
|
|
3.0 |
|
|
|
0.1 |
|
|
|
0.9 |
|
Adjusted EBIT |
|
|
619.0 |
|
|
|
96.9 |
|
|
|
9.2 |
|
|
|
11.8 |
|
|
|
(47.1 |
) |
Depreciation |
|
|
18.5 |
|
|
|
12.7 |
|
|
|
12.2 |
|
|
|
2.9 |
|
|
|
1.7 |
|
Amortization |
|
|
9.1 |
|
|
|
37.0 |
|
|
|
24.0 |
|
|
|
8.0 |
|
|
|
1.1 |
|
Adjusted EBITDA |
|
$ |
646.6 |
|
|
$ |
146.6 |
|
|
$ |
45.4 |
|
|
$ |
22.7 |
|
|
$ |
(44.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
|
$ |
1,994.5 |
|
|
$ |
808.0 |
|
|
$ |
397.6 |
|
|
$ |
143.1 |
|
|
$ |
— |
|
Adjusted EBITDA margin |
|
|
32.4 |
% |
|
|
18.1 |
% |
|
|
11.4 |
% |
|
|
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. |
|
|
Six Months Ended |
||||||||||||||||||
(in millions) |
|
CCM |
|
CWT |
|
CIT |
|
CFT |
|
Corporate and unallocated |
||||||||||
Operating income (loss) (GAAP) |
|
$ |
265.7 |
|
|
$ |
33.0 |
|
|
$ |
(23.6 |
) |
|
$ |
10.9 |
|
|
$ |
(67.5 |
) |
Non-operating expense(1) |
|
|
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
0.9 |
|
EBIT |
|
|
263.4 |
|
|
|
33.0 |
|
|
|
(23.6 |
) |
|
|
9.4 |
|
|
|
(68.4 |
) |
Exit and disposal, and facility rationalization costs |
|
|
— |
|
|
|
— |
|
|
|
10.2 |
|
|
|
0.4 |
|
|
|
— |
|
Inventory step-up amortization and transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
2.1 |
|
Losses from acquisitions and disposals |
|
|
2.2 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.8 |
|
Losses from insurance |
|
|
0.3 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Losses from litigation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Total non-comparable items |
|
|
2.5 |
|
|
|
0.2 |
|
|
|
10.5 |
|
|
|
0.7 |
|
|
|
3.0 |
|
Adjusted EBIT |
|
|
265.9 |
|
|
|
33.2 |
|
|
|
(13.1 |
) |
|
|
10.1 |
|
|
|
(65.4 |
) |
Depreciation |
|
|
18.3 |
|
|
|
5.6 |
|
|
|
12.3 |
|
|
|
2.6 |
|
|
|
1.8 |
|
Amortization |
|
|
8.0 |
|
|
|
15.0 |
|
|
|
25.3 |
|
|
|
8.9 |
|
|
|
1.0 |
|
Adjusted EBITDA |
|
$ |
292.2 |
|
|
$ |
53.8 |
|
|
$ |
24.5 |
|
|
$ |
21.6 |
|
|
$ |
(62.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
|
$ |
1,279.2 |
|
|
$ |
377.4 |
|
|
$ |
324.7 |
|
|
$ |
137.4 |
|
|
$ |
— |
|
Adjusted EBITDA margin |
|
|
22.8 |
% |
|
|
14.3 |
% |
|
|
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. |
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
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||
(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) |
|
|
|
$ |
301.5 |
|
|
$ |
5.73 |
|
|
|
|
$ |
99.3 |
|
|
$ |
1.87 |
|
Less: income from discontinued operations (GAAP) |
|
|
|
|
5.6 |
|
|
|
0.11 |
|
|
|
|
|
5.2 |
|
|
|
0.10 |
|
Income from continuing operations (GAAP) |
|
|
|
|
295.9 |
|
|
|
5.62 |
|
|
|
|
|
94.1 |
|
|
|
1.77 |
|
Exit and disposal, and facility rationalization costs |
|
0.7 |
|
|
0.5 |
|
|
|
0.01 |
|
|
7.5 |
|
|
5.7 |
|
|
|
0.11 |
|
Inventory step-up amortization and transaction costs |
|
0.8 |
|
|
0.6 |
|
|
|
0.01 |
|
|
1.3 |
|
|
1.1 |
|
|
|
0.02 |
|
Losses from acquisitions and disposals |
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
Losses from insurance |
|
— |
|
|
— |
|
|
|
— |
|
|
0.5 |
|
|
0.4 |
|
|
|
0.01 |
|
Losses from litigation |
|
— |
|
|
— |
|
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
Acquisition-related amortization(3) |
|
37.0 |
|
|
28.0 |
|
|
|
0.53 |
|
|
27.9 |
|
|
21.1 |
|
|
|
0.40 |
|
Discrete tax items(4) |
|
— |
|
|
(1.3 |
) |
|
|
(0.02 |
) |
|
— |
|
|
(8.2 |
) |
|
|
(0.15 |
) |
Total adjustments |
|
|
|
|
27.9 |
|
|
|
0.53 |
|
|
|
|
|
20.3 |
|
|
|
0.39 |
|
Adjusted net income |
|
|
|
$ |
323.8 |
|
|
$ |
6.15 |
|
|
|
|
$ |
114.4 |
|
|
$ |
2.16 |
(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. |
|
||||||||||||||||||||
Unaudited Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Diluted EPS |
||||||||||||||||||||
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||
(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) |
|
|
|
$ |
495.1 |
|
|
$ |
9.37 |
|
|
|
|
$ |
151.5 |
|
|
$ |
2.84 |
|
Less: income from discontinued operations (GAAP) |
|
|
|
|
4.9 |
|
|
|
0.09 |
|
|
|
|
|
8.3 |
|
|
|
0.16 |
|
Income from continuing operations (GAAP) |
|
|
|
|
490.2 |
|
|
|
9.28 |
|
|
|
|
|
143.2 |
|
|
|
2.68 |
|
Exit and disposal, and facility rationalization costs |
|
2.8 |
|
|
2.1 |
|
|
|
0.04 |
|
|
10.6 |
|
|
8.0 |
|
|
|
0.15 |
|
Inventory step-up amortization and transaction costs |
|
0.8 |
|
|
0.6 |
|
|
|
0.01 |
|
|
2.2 |
|
|
1.7 |
|
|
|
0.03 |
|
Impairment charges |
|
0.2 |
|
|
0.2 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Losses from acquisitions and disposals(3) |
|
0.4 |
|
|
0.3 |
|
|
|
0.01 |
|
|
3.5 |
|
|
2.6 |
|
|
|
0.05 |
|
Losses from insurance |
|
0.3 |
|
|
0.3 |
|
|
|
— |
|
|
0.5 |
|
|
0.4 |
|
|
|
0.01 |
|
Losses from litigation |
|
— |
|
|
— |
|
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
Acquisition-related amortization(4) |
|
76.2 |
|
|
57.5 |
|
|
|
1.09 |
|
|
56.0 |
|
|
42.4 |
|
|
|
0.79 |
|
Discrete tax items(5) |
|
— |
|
|
(1.7 |
) |
|
|
(0.03 |
) |
|
— |
|
|
(9.8 |
) |
|
|
(0.18 |
) |
Total adjustments |
|
|
|
|
59.3 |
|
|
|
1.12 |
|
|
|
|
|
45.4 |
|
|
|
0.85 |
|
Adjusted net income |
|
|
|
$ |
549.5 |
|
|
$ |
10.40 |
|
|
|
|
$ |
188.6 |
|
|
$ |
3.53 |
|
(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 |
|
(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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005894/en/
Vice President of Investor Relations
(480) 781-5135
jgiannakouros@carlisle.com
Source:
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