Carlisle Companies Reports Third Quarter 2021 Results
Carlisle Companies (NYSE:CSL) reported record third quarter revenue of $1.3 billion, a 19.4% organic increase year-over-year. Diluted EPS rose 12.8% to $2.12, with adjusted EPS increasing 27.2% to $2.99. The acquisition of Henry Company for $1.575 billion is progressing smoothly, enhancing Carlisle's portfolio in Building Products. Challenges from supply chain issues and Hurricane Ida were noted but offset by strong operational performance. Carlisle's cash flow from operations stood at $275.4 million, and they maintained their dividend for the 45th consecutive year.
- Record third quarter revenue of $1.3 billion, up 19.4% organically year-over-year.
- Diluted EPS increased to $2.12, adjusted EPS rose to $2.99, marking a 27% increase.
- Successful acquisition of Henry Company for $1.575 billion with smooth integration.
- Strong performance in Carlisle Construction Materials (CCM), contributing significantly to revenues.
- Increased cash flow from operations at $275.4 million, supporting growth initiatives.
- Operating income growth of only 7.6%, indicating margins under pressure.
- Operating losses in Carlisle Interconnect Technologies (CIT) at $0.5 million due to inflation and costs.
- Decreased operating cash flow from continuing operations by $140.8 million year-over-year.
-
Generated record third quarter revenue of
, up$1.3 billion 19.4% organically year-over-year -
Reported third quarter diluted EPS of
; adjusted diluted EPS of$2.12 , a$2.99 27% increase from prior year - Strong volume growth and solid price realization leveraging the Carlisle Experience more than offset increased supply chain costs and weather-related impacts during the quarter
-
Completed purchase of
Henry Company for , with integration accelerating and initial results tracking to expectations$1.57 5 billion -
Issued
of senior notes at a weighted average coupon of$850 million 1.6%
Comments from
"As we exited the third quarter, the impact of the COVID-19 pandemic appears to be past its summer and early autumn peak. This trend, combined with improvements in our supply chain and positive movement towards a resumption of passenger air travel approaching pre-pandemic levels, is driving increased optimism about our ability to deliver continued strong results. We have also seen strong demand in our Building Products markets. Along with a steadily growing backlog across all three of Carlisle's segments, we are increasingly positive entering the fourth quarter and 2022. Nonetheless, within the third quarter of 2021, our teams faced a very challenging operating environment, given difficult supply chain and labor conditions, as well the impact of Hurricane Ida. Despite these challenges, I am proud to report Carlisle's employees again displayed their resilience in delivering record results, all the while doing so with strict adherence to the same health and safety protocols and precautions that have been in place throughout the pandemic, extending Carlisle's excellent safety record.
Vision 2025 continues to provide clarity of mission and a consistent direction for our entire organization. We have stayed the course and maintain confidence in our ability to execute on our strategies, despite the challenges throughout the COVID pandemic. Vision 2025 focuses our continuous improvement culture on providing our customers with innovative products of the best quality at the right place, at the right time. Ensuring the highest level of communication, transparency and service is embodied in what we call the Carlisle Experience, which we are committed to delivering to all our channel partners.
As introduced in Vision 2025, we committed to a leaner, more focused portfolio and a pivot towards investing in our highest-returning businesses, particularly
CCM continues to benefit from a growing backlog fueled by the strong re-roofing cycle in
Some additional information about the notable drivers of CCM's business include:
-
Re-roofing demand remains strong in the U.S. market, which is expected to grow from
to$6 billion in the next decade. Near term, the lingering effects of the pandemic and raw material and labor constraints have contributed to growing backlogs and significant increases in near term demand.$8 billion -
With buildings accounting for approximately
30% of annual global greenhouse gas emissions, we continue to focus on innovation, emphasizing the development of products that ensure greater energy-efficiency. -
Our drive to increase the content of energy-efficient products in our portfolio and further expand into the building envelope resulted in our acquisition of Henry for
in the third quarter. As one example of our expanded portfolio of energy-efficient products, Henry's Air and Vapor barriers prevent uncontrolled air leakage and can yield up to$1.57 5 billion30% savings on heating and cooling costs.
While we're pleased with CCM's performance, CIT and CFT both contributed to our results and exhibited continued progress. As we expected, CIT returned to growth in the third quarter. Notably, CIT is now leveraging growth quite well, having returned to positive adjusted EBIT during the quarter with expectations for continued profitability improvement going forward. Lower demand for commercial aircraft due to the pandemic forced the team to focus on improving and repositioning the business for the future. CIT took significant actions, including rightsizing its footprint, and created a more efficient operating structure. That said, CIT's commercial aerospace backlog has consistently grown in 2021, and has now surpassed second quarter of 2020 levels, a significant milestone. Coupling this with the improving backlog in our Medical Technologies business, we expect recovery to continue at CIT, and solid leverage to this growth over the coming quarters and years.
Driven by accelerating industrial capital expenditures as companies expand capacity in response to supply constraints, CFT delivered strong revenue growth, despite the many documented supply chain issues challenging the automotive industry. This growth was supported by a commitment to new product introductions, price discipline and excellent performances by our teams in
In the third quarter, we also maintained our balanced approach to capital deployment. We increased our dividend for the 45th consecutive year, returning
Finally, we had a successful debt issuance of
With all of our businesses trending positively, and leveraging the clarity of mission that Vision 2025 provides us, Carlisle is well positioned for continued acceleration through the recovery and beyond. In closing, I want to once again express my gratitude to Carlisle's dedicated employees - neither the recovery from 2020 nor achieving Vision 2025 would be possible without their commitment and perseverance."
Third Quarter 2021
Revenue of
Operating income for the third quarter of
Diluted EPS for the third quarter of
Third Quarter 2021 Segment Highlights
-
Revenues of
, up$1,065.8 million 29.4% (+23.3% organic) year-over-year, were driven by strength ofU.S. commercial roofing demand, price, the Henry acquisition and strong performances across all product lines. -
Operating income was
, up$187.1 million 3.2% year-over-year. Operating margin of17.6% was negatively impacted by raw material, freight and wage inflation, and acquisition costs, partially offset by higher volumes, price and savings from COS. -
Adjusted EBITDA was
, up$240.5 million 16.6% year-over-year, reflecting an adjusted EBITDA margin of22.6% . -
We now expect full year sales, including Henry, to be up mid
-20% year-over-year.
-
Revenues of
, up$178.7 million 6.1% (+5.2% organic) year-over-year, were driven by strengthening orders from aerospace and medical customers. -
Operating loss was
. Operating margin of -$0.5 million 0.3% , was affected by raw material and wage inflation, partially offset by higher volumes, savings from COS and lower operating expenses. -
Adjusted EBITDA was
, up$23.2 million 13.2% year-over-year, reflecting an adjusted EBITDA margin of13.0% . - We now expect full year sales to be down only mid-single digits year-over-year.
-
Revenues of
, up$71.1 million 9.4% (+6.3% organic) year-over-year, reflected price and higher volumes inChina andEurope . -
Operating income was
. Operating margin of$4.7 million 6.6% reflected higher volumes, price realization, and savings from COS, offset by higher operating expenses. -
Adjusted EBITDA was
, up$10.9 million 6.9% year-over-year, reflecting an adjusted EBITDA margin of15.3% . - We continue to expect full year sales to be up mid-teens year-over-year.
Cash Flow
Operating cash flow from continuing operations for the nine months ended September, 30 2021, was
During the three months ended
Conference Call and Webcast
Carlisle will discuss third quarter 2021 results on a conference call at
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 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 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; the 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. 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
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
About
• EPS referenced in this release is from continuing operations unless otherwise noted.
Unaudited Consolidated Statements of Income |
||||||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
(in millions, except per share amounts) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
Revenues |
|
$ |
1,315.6 |
|
|
|
$ |
1,057.0 |
|
|
|
$ |
3,434.3 |
|
|
|
$ |
2,981.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of goods sold |
|
944.0 |
|
|
|
739.1 |
|
|
|
2,510.1 |
|
|
|
2,124.2 |
|
|
||||
Selling and administrative expenses |
|
192.6 |
|
|
|
153.0 |
|
|
|
504.7 |
|
|
|
448.5 |
|
|
||||
Research and development expenses |
|
12.8 |
|
|
|
11.5 |
|
|
|
37.0 |
|
|
|
35.1 |
|
|
||||
Other operating income, net |
|
(0.3 |
) |
|
|
(1.4 |
) |
|
|
(2.5 |
) |
|
|
(2.7 |
) |
|
||||
Operating income |
|
166.5 |
|
|
|
154.8 |
|
|
|
385.0 |
|
|
|
376.5 |
|
|
||||
Interest expense, net |
|
19.8 |
|
|
|
19.1 |
|
|
|
58.2 |
|
|
|
57.8 |
|
|
||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.8 |
|
|
||||
Interest income |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
(4.0 |
) |
|
||||
Other non-operating expense (income), net |
|
0.9 |
|
|
|
0.5 |
|
|
|
5.6 |
|
|
|
(0.4 |
) |
|
||||
Income from continuing operations before income taxes |
|
146.0 |
|
|
|
135.9 |
|
|
|
322.3 |
|
|
|
314.3 |
|
|
||||
Provision for income taxes |
|
33.0 |
|
|
|
33.2 |
|
|
|
66.1 |
|
|
|
70.8 |
|
|
||||
Income from continuing operations |
|
113.0 |
|
|
|
102.7 |
|
|
|
256.2 |
|
|
|
243.5 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes |
|
2.2 |
|
|
|
0.5 |
|
|
|
13.0 |
|
|
|
(4.7 |
) |
|
||||
(Benefit from) provision for income taxes |
|
(26.9 |
) |
|
|
0.9 |
|
|
|
(24.4 |
) |
|
|
(0.7 |
) |
|
||||
Income (loss) from discontinued operations |
|
29.1 |
|
|
|
(0.4 |
) |
|
|
37.4 |
|
|
|
(4.0 |
) |
|
||||
Net income |
|
$ |
142.1 |
|
|
|
$ |
102.3 |
|
|
|
$ |
293.6 |
|
|
|
$ |
239.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic earnings per share attributable to common shares: |
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations |
|
$ |
2.15 |
|
|
|
$ |
1.89 |
|
|
|
$ |
4.86 |
|
|
|
$ |
4.42 |
|
|
Income (loss) from discontinued operations |
|
0.55 |
|
|
|
(0.01 |
) |
|
|
0.71 |
|
|
|
(0.07 |
) |
|
||||
Basic earnings per share |
|
$ |
2.70 |
|
|
|
$ |
1.88 |
|
|
|
$ |
5.57 |
|
|
|
$ |
4.35 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted earnings per share attributable to common shares: |
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations |
|
$ |
2.12 |
|
|
|
$ |
1.88 |
|
|
|
$ |
4.80 |
|
|
|
$ |
4.38 |
|
|
Income (loss) from discontinued operations |
|
0.55 |
|
|
|
(0.01 |
) |
|
|
0.70 |
|
|
|
(0.07 |
) |
|
||||
Diluted earnings per share |
|
$ |
2.67 |
|
|
|
$ |
1.87 |
|
|
|
$ |
5.50 |
|
|
|
$ |
4.31 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
52.3 |
|
|
|
54.1 |
|
|
|
52.6 |
|
|
|
54.9 |
|
|
||||
Diluted |
|
53.0 |
|
|
|
54.5 |
|
|
|
53.2 |
|
|
|
55.4 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends declared and paid per share |
|
$ |
0.54 |
|
|
|
$ |
0.525 |
|
|
|
$ |
1.59 |
|
|
|
$ |
1.525 |
|
|
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||||
|
|
Nine Months Ended
|
||||||||
(in millions) |
|
2021 |
|
|
2020 |
|
||||
Net cash provided by operating activities |
|
$ |
283.9 |
|
|
|
$ |
440.2 |
|
|
|
|
|
|
|
||||||
Investing activities: |
|
|
|
|
||||||
Acquisitions, net of cash acquired |
|
(1,573.9 |
) |
|
|
(35.4 |
) |
|
||
Proceeds from sale of discontinued operation, net of cash disposed |
|
247.7 |
|
|
|
— |
|
|
||
Capital expenditures |
|
(88.9 |
) |
|
|
(72.7 |
) |
|
||
Investment in securities |
|
(10.2 |
) |
|
|
— |
|
|
||
Other investing activities, net |
|
2.1 |
|
|
|
1.4 |
|
|
||
Net cash used in investing activities |
|
(1,423.2 |
) |
|
|
(106.7 |
) |
|
||
|
|
|
|
|
||||||
Financing activities: |
|
|
|
|
||||||
Proceeds from notes |
|
842.6 |
|
|
|
740.7 |
|
|
||
Repayments of notes |
|
— |
|
|
|
(258.5 |
) |
|
||
Borrowings from revolving credit facility |
|
650.0 |
|
|
|
500.0 |
|
|
||
Repayments of revolving credit facility |
|
(650.0 |
) |
|
|
(500.0 |
) |
|
||
Financing costs |
|
(1.7 |
) |
|
|
(24.2 |
) |
|
||
Repurchases of common stock |
|
(290.6 |
) |
|
|
(341.7 |
) |
|
||
Dividends paid |
|
(84.2 |
) |
|
|
(84.5 |
) |
|
||
Proceeds from exercise of stock options |
|
77.4 |
|
|
|
12.9 |
|
|
||
Withholding tax paid related to stock-based compensation |
|
(8.4 |
) |
|
|
(7.4 |
) |
|
||
Other financing activities, net |
|
(1.2 |
) |
|
|
(0.6 |
) |
|
||
Net cash provided by financing activities |
|
533.9 |
|
|
|
36.7 |
|
|
||
|
|
|
|
|
||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
(1.2 |
) |
|
|
(2.4 |
) |
|
||
|
|
|
|
|
||||||
Change in cash and cash equivalents |
|
(606.6 |
) |
|
|
367.8 |
|
|
||
Less: change in cash and cash equivalents of discontinued operations |
|
(5.1 |
) |
|
|
(1.1 |
) |
|
||
Cash and cash equivalents at beginning of period |
|
897.1 |
|
|
|
342.5 |
|
|
||
Cash and cash equivalents at end of period |
|
$ |
295.6 |
|
|
|
$ |
711.4 |
|
|
Unaudited Selected Consolidated Balance Sheet Data |
||||||||
(in millions) |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
295.6 |
|
|
$ |
897.1 |
|
Long-term debt, including current portion |
|
2,926.4 |
|
|
2,081.3 |
|
||
Total shareholders' equity |
|
2,544.8 |
|
|
2,537.7 |
|
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 |
|
CIT |
|
CFT |
|||||||||||||||||||||
2020 Revenue (GAAP) |
|
$ |
1,057.0 |
|
|
|
$ |
823.5 |
|
|
|
$ |
168.5 |
|
|
|
|
$ |
65.0 |
|
|
||||||||
Volume/Price |
|
204.4 |
|
19.4 |
% |
|
191.5 |
|
23.3 |
% |
|
8.8 |
|
|
5.2 |
|
% |
|
4.1 |
|
6.3 |
% |
|||||||
Organic revenue |
|
204.4 |
|
19.4 |
% |
|
191.5 |
|
23.3 |
% |
|
8.8 |
|
|
5.2 |
|
% |
|
4.1 |
|
6.3 |
% |
|||||||
Acquisitions |
|
51.0 |
|
4.8 |
% |
|
49.6 |
|
6.0 |
% |
|
0.8 |
|
|
0.5 |
|
% |
|
0.6 |
|
0.9 |
% |
|||||||
FX impact |
|
3.2 |
|
0.3 |
% |
|
1.2 |
|
0.1 |
% |
|
0.6 |
|
|
0.4 |
|
% |
|
1.4 |
|
2.2 |
% |
|||||||
Total change |
|
258.6 |
|
24.5 |
% |
|
242.3 |
|
29.4 |
% |
|
10.2 |
|
|
6.1 |
|
% |
|
6.1 |
|
9.4 |
% |
|||||||
2021 Revenue (GAAP) |
|
$ |
1,315.6 |
|
|
|
$ |
1,065.8 |
|
|
|
$ |
178.7 |
|
|
|
|
$ |
71.1 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
Nine Months Ended |
|||||||||||||||||||||||||||
(in millions) |
|
CSL |
|
CCM |
|
CIT |
|
CFT |
|||||||||||||||||||||
2020 Revenue (GAAP) |
|
$ |
2,981.6 |
|
|
|
$ |
2,234.8 |
|
|
|
$ |
577.0 |
|
|
|
|
$ |
169.8 |
|
|
||||||||
Volume/Price |
|
375.5 |
|
12.6 |
% |
|
427.6 |
|
19.1 |
% |
|
(79.9 |
) |
|
(13.9 |
) |
% |
|
27.8 |
|
16.3 |
% |
|||||||
Organic revenue |
|
375.5 |
|
12.6 |
% |
|
427.6 |
|
19.1 |
% |
|
(79.9 |
) |
|
(13.9 |
) |
% |
|
27.8 |
|
16.3 |
% |
|||||||
Acquisitions |
|
58.8 |
|
2.0 |
% |
|
49.6 |
|
2.2 |
% |
|
4.5 |
|
|
0.8 |
|
% |
|
4.7 |
|
2.8 |
% |
|||||||
FX impact |
|
18.4 |
|
0.6 |
% |
|
10.4 |
|
0.5 |
% |
|
1.8 |
|
|
0.3 |
|
% |
|
6.2 |
|
3.7 |
% |
|||||||
Total change |
|
452.7 |
|
15.2 |
% |
|
487.6 |
|
21.8 |
% |
|
(73.6 |
) |
|
(12.8 |
) |
% |
|
38.7 |
|
22.8 |
% |
|||||||
2021 Revenue (GAAP) |
|
$ |
3,434.3 |
|
|
|
$ |
2,722.4 |
|
|
|
$ |
503.4 |
|
|
|
|
$ |
208.5 |
|
|
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
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
(in millions) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
Operating cash flow (GAAP) |
|
$ |
112.4 |
|
|
|
$ |
213.9 |
|
|
|
$ |
283.9 |
|
|
|
$ |
440.2 |
|
|
Less: operating cash flow from discontinued operations |
|
(2.3 |
) |
|
|
8.6 |
|
|
|
8.5 |
|
|
|
24.0 |
|
|
||||
Operating cash flow from continuing operations |
|
$ |
114.7 |
|
|
|
$ |
205.3 |
|
|
|
$ |
275.4 |
|
|
|
$ |
416.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures (GAAP) |
|
$ |
(33.8 |
) |
|
|
$ |
(24.2 |
) |
|
|
$ |
(88.9 |
) |
|
|
$ |
(72.7 |
) |
|
Less: capital expenditures from discontinued operations |
|
(1.1 |
) |
|
|
(2.7 |
) |
|
|
(6.7 |
) |
|
|
(7.9 |
) |
|
||||
Capital expenditures from continuing operations |
|
$ |
(32.7 |
) |
|
|
$ |
(21.5 |
) |
|
|
$ |
(82.2 |
) |
|
|
$ |
(64.8 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating cash flow from continuing operations |
|
$ |
114.7 |
|
|
|
$ |
205.3 |
|
|
|
$ |
275.4 |
|
|
|
$ |
416.2 |
|
|
Capital expenditures from continuing operations |
|
(32.7 |
) |
|
|
(21.5 |
) |
|
|
(82.2 |
) |
|
|
(64.8 |
) |
|
||||
Free cash flow from continuing operations |
|
$ |
82.0 |
|
|
|
$ |
183.8 |
|
|
|
$ |
193.2 |
|
|
|
$ |
351.4 |
|
|
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
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
(in millions, except per share amounts) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||
Net income (GAAP) |
|
$ |
142.1 |
|
|
|
$ |
102.3 |
|
|
|
$ |
293.6 |
|
|
|
$ |
239.5 |
|
|
Less: income (loss) from discontinued operations (GAAP) |
|
29.1 |
|
|
|
(0.4 |
) |
|
|
37.4 |
|
|
|
(4.0 |
) |
|
||||
Income from continuing operations (GAAP) |
|
113.0 |
|
|
|
102.7 |
|
|
|
256.2 |
|
|
|
243.5 |
|
|
||||
Provision for income taxes |
|
33.0 |
|
|
|
33.2 |
|
|
|
66.1 |
|
|
|
70.8 |
|
|
||||
Interest expense, net |
|
19.8 |
|
|
|
19.1 |
|
|
|
58.2 |
|
|
|
57.8 |
|
|
||||
Interest income |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
(4.0 |
) |
|
||||
EBIT |
|
165.6 |
|
|
|
154.3 |
|
|
|
379.4 |
|
|
|
368.1 |
|
|
||||
Exit and disposal, and facility rationalization costs |
|
3.4 |
|
|
|
5.2 |
|
|
|
14.0 |
|
|
|
16.0 |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
22.2 |
|
|
|
0.5 |
|
|
|
24.4 |
|
|
|
6.1 |
|
|
||||
Impairment charges |
|
1.8 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
— |
|
|
||||
Losses (gains) from acquisitions and disposals |
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
2.2 |
|
|
||||
Losses (gains) from insurance |
|
(0.3 |
) |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
||||
Losses (gains) from litigation |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
||||
Losses on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.8 |
|
|
||||
Total non-comparable items |
|
27.1 |
|
|
|
5.7 |
|
|
|
44.0 |
|
|
|
33.1 |
|
|
||||
Adjusted EBIT |
|
192.7 |
|
|
|
160.0 |
|
|
|
423.4 |
|
|
|
401.2 |
|
|
||||
Depreciation |
|
21.6 |
|
|
|
20.4 |
|
|
|
62.2 |
|
|
|
61.8 |
|
|
||||
Amortization |
|
36.0 |
|
|
|
30.4 |
|
|
|
94.2 |
|
|
|
90.9 |
|
|
||||
Adjusted EBITDA |
|
$ |
250.3 |
|
|
|
$ |
210.8 |
|
|
|
$ |
579.8 |
|
|
|
$ |
553.9 |
|
|
Divided by: |
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
|
$ |
1,315.6 |
|
|
|
$ |
1,057.0 |
|
|
|
$ |
3,434.3 |
|
|
|
$ |
2,981.6 |
|
|
Adjusted EBITDA margin |
|
19.0 |
|
% |
|
19.9 |
|
% |
|
16.9 |
|
% |
|
18.6 |
|
% |
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin
|
|
Three Months Ended |
|||||||||||||||||
(in millions) |
|
CCM |
|
CIT |
|
CFT |
|
Corporate and
|
|||||||||||
Operating income (loss) (GAAP) |
|
$ |
187.1 |
|
|
$ |
(0.5 |
) |
|
|
$ |
4.7 |
|
|
|
$ |
(24.8 |
) |
|
Non-operating expense (income)(1) |
|
0.4 |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
0.8 |
|
|
||||
EBIT |
|
186.7 |
|
|
(0.4 |
) |
|
|
4.9 |
|
|
|
(25.6 |
) |
|
||||
Exit and disposal, and facility rationalization costs |
|
0.1 |
|
|
2.8 |
|
|
|
0.5 |
|
|
|
— |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
22.3 |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
||||
Impairment charges |
|
— |
|
|
1.8 |
|
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from acquisitions and disposals |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from insurance |
|
— |
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
||||
Losses (gains) from litigation |
|
— |
|
|
0.1 |
|
|
|
— |
|
|
|
(0.1 |
) |
|
||||
Losses on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||
Total non-comparable items |
|
22.4 |
|
|
4.7 |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
||||
Adjusted EBIT |
|
209.1 |
|
|
4.3 |
|
|
|
5.1 |
|
|
|
(25.8 |
) |
|
||||
Depreciation |
|
12.9 |
|
|
6.3 |
|
|
|
1.4 |
|
|
|
1.0 |
|
|
||||
Amortization |
|
18.5 |
|
|
12.6 |
|
|
|
4.4 |
|
|
|
0.5 |
|
|
||||
Adjusted EBITDA |
|
$ |
240.5 |
|
|
$ |
23.2 |
|
|
|
$ |
10.9 |
|
|
|
$ |
(24.3 |
) |
|
Divided by: |
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
|
$ |
1,065.8 |
|
|
$ |
178.7 |
|
|
|
$ |
71.1 |
|
|
|
$ |
— |
|
|
Adjusted EBITDA margin |
|
22.6 |
% |
|
13.0 |
|
% |
|
15.3 |
|
% |
|
|
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 |
||||||||||||||||
(in millions) |
|
CCM |
|
CIT |
|
CFT |
|
Corporate and
|
||||||||||
Operating income (loss) (GAAP) |
|
$ |
181.3 |
|
|
$ |
(3.7 |
) |
|
|
$ |
4.4 |
|
|
$ |
(27.2 |
) |
|
Non-operating expense (income)(1) |
|
0.3 |
|
|
0.2 |
|
|
|
0.1 |
|
|
(0.1 |
) |
|
||||
EBIT |
|
181.0 |
|
|
(3.9 |
) |
|
|
4.3 |
|
|
(27.1 |
) |
|
||||
Exit and disposal, and facility rationalization costs |
|
0.6 |
|
|
4.6 |
|
|
|
— |
|
|
— |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
0.2 |
|
|
0.2 |
|
|
|
0.1 |
|
|
— |
|
|
||||
Impairment charges |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
||||
Losses (gains) from acquisitions and disposals |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
||||
Losses (gains) from insurance |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
||||
Losses (gains) from litigation |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
||||
Losses on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
||||
Total non-comparable items |
|
0.8 |
|
|
4.8 |
|
|
|
0.1 |
|
|
— |
|
|
||||
Adjusted EBIT |
|
181.8 |
|
|
0.9 |
|
|
|
4.4 |
|
|
(27.1 |
) |
|
||||
Depreciation |
|
11.8 |
|
|
6.3 |
|
|
|
1.4 |
|
|
0.9 |
|
|
||||
Amortization |
|
12.6 |
|
|
13.3 |
|
|
|
4.4 |
|
|
0.1 |
|
|
||||
Adjusted EBITDA |
|
$ |
206.2 |
|
|
$ |
20.5 |
|
|
|
$ |
10.2 |
|
|
$ |
(26.1 |
) |
|
Divided by: |
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
|
$ |
823.5 |
|
|
$ |
168.5 |
|
|
|
$ |
65.0 |
|
|
$ |
— |
|
|
Adjusted EBITDA margin |
|
25.0 |
% |
|
12.2 |
|
% |
|
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 - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin
|
|
Nine Months Ended |
||||||||||||||||||
(in millions) |
|
CCM |
|
CIT |
|
CFT |
|
Corporate and
|
||||||||||||
Operating income (loss) (GAAP) |
|
$ |
485.8 |
|
|
$ |
(24.1 |
) |
|
|
$ |
15.6 |
|
|
|
$ |
(92.3 |
) |
|
|
Non-operating expense(1) |
|
2.7 |
|
|
(0.1 |
) |
|
|
1.3 |
|
|
|
1.7 |
|
|
|||||
EBIT |
|
483.1 |
|
|
(24.0 |
) |
|
|
14.3 |
|
|
|
(94.0 |
) |
|
|||||
Exit and disposal, and facility rationalization costs |
|
0.1 |
|
|
13.0 |
|
|
|
0.9 |
|
|
|
— |
|
|
|||||
Inventory step-up amortization and acquisition costs |
|
22.3 |
|
|
— |
|
|
|
0.1 |
|
|
|
2.0 |
|
|
|||||
Impairment charges |
|
— |
|
|
1.8 |
|
|
|
— |
|
|
|
— |
|
|
|||||
Losses (gains) from acquisitions and disposals |
|
2.2 |
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.8 |
|
|
|||||
Losses (gains) from insurance |
|
0.5 |
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|||||
Losses (gains) from litigation |
|
— |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|||||
Losses on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|||||
Total non-comparable items |
|
25.1 |
|
|
15.2 |
|
|
|
0.9 |
|
|
|
2.8 |
|
|
|||||
Adjusted EBIT |
|
508.2 |
|
|
(8.8 |
) |
|
|
15.2 |
|
|
|
(91.2 |
) |
|
|||||
Depreciation |
|
36.8 |
|
|
18.6 |
|
|
|
4.0 |
|
|
|
2.8 |
|
|
|||||
Amortization |
|
41.5 |
|
|
37.9 |
|
|
|
13.3 |
|
|
|
1.5 |
|
|
|||||
Adjusted EBITDA |
|
$ |
586.5 |
|
|
$ |
47.7 |
|
|
|
$ |
32.5 |
|
|
|
$ |
(86.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
|
$ |
2,722.4 |
|
|
$ |
503.4 |
|
|
|
$ |
208.5 |
|
|
|
$ |
— |
|
|
|
Adjusted EBITDA margin |
|
21.5 |
% |
|
9.5 |
|
% |
|
15.6 |
|
% |
|
|
NM |
|
|
(1) |
Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income. |
|
|
Nine Months Ended |
|||||||||||||||||
(in millions) |
|
CCM |
|
CIT |
|
CFT |
|
Corporate and
|
|||||||||||
Operating income (loss) (GAAP) |
|
$ |
426.6 |
|
|
$ |
11.2 |
|
|
|
$ |
2.0 |
|
|
|
$ |
(63.3 |
) |
|
Non-operating expense (income)(1) |
|
3.2 |
|
|
(0.4 |
) |
|
|
(3.2 |
) |
|
|
8.8 |
|
|
||||
EBIT |
|
423.4 |
|
|
11.6 |
|
|
|
5.2 |
|
|
|
(72.1 |
) |
|
||||
Exit and disposal, and facility rationalization costs |
|
0.9 |
|
|
13.0 |
|
|
|
2.1 |
|
|
|
— |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
0.4 |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
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 |
|
3.6 |
|
|
13.2 |
|
|
|
2.4 |
|
|
|
13.9 |
|
|
||||
Adjusted EBIT |
|
427.0 |
|
|
24.8 |
|
|
|
7.6 |
|
|
|
(58.2 |
) |
|
||||
Depreciation |
|
36.5 |
|
|
18.9 |
|
|
|
4.0 |
|
|
|
2.4 |
|
|
||||
Amortization |
|
37.7 |
|
|
39.5 |
|
|
|
13.4 |
|
|
|
0.3 |
|
|
||||
Adjusted EBITDA |
|
$ |
501.2 |
|
|
$ |
83.2 |
|
|
|
$ |
25.0 |
|
|
|
$ |
(55.5 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
|
$ |
2,234.8 |
|
|
$ |
577.0 |
|
|
|
$ |
169.8 |
|
|
|
$ |
— |
|
|
Adjusted EBITDA margin |
|
22.4 |
% |
|
14.4 |
|
% |
|
14.7 |
|
% |
|
|
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 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
|
|
Three Months Ended
|
|
Three Months Ended
|
|||||||||||||||||||||||
(in millions, except per share amounts) |
|
Pre-tax Impact |
|
After-tax Impact(1) |
|
Impact to
|
|
Pre-tax Impact |
|
After-tax Impact(1) |
|
Impact to
|
|||||||||||||||
Net income (GAAP) |
|
|
|
$ |
142.1 |
|
|
|
$ |
2.67 |
|
|
|
|
|
$ |
102.3 |
|
|
|
$ |
1.87 |
|
|
|||
Less: income (loss) from discontinued operations (GAAP) |
|
|
|
29.1 |
|
|
|
0.55 |
|
|
|
|
|
(0.4 |
) |
|
|
(0.01 |
) |
|
|||||||
Income from continuing operations (GAAP) |
|
|
|
$ |
113.0 |
|
|
|
$ |
2.12 |
|
|
|
|
|
$ |
102.7 |
|
|
|
$ |
1.88 |
|
|
|||
Exit and disposal, and facility rationalization costs |
|
3.4 |
|
|
|
2.5 |
|
|
|
0.05 |
|
|
|
5.2 |
|
|
4.0 |
|
|
|
0.07 |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
22.2 |
|
|
|
18.3 |
|
|
|
0.34 |
|
|
|
0.5 |
|
|
0.3 |
|
|
|
— |
|
|
||||
Impairment charges |
|
1.8 |
|
|
|
1.5 |
|
|
|
0.03 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from acquisitions and disposals |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from insurance |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from litigation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Acquisition-related amortization(3) |
|
34.7 |
|
|
|
26.3 |
|
|
|
0.49 |
|
|
|
29.9 |
|
|
22.7 |
|
|
|
0.42 |
|
|
||||
Discrete tax items(4) |
|
— |
|
|
|
(2.3 |
) |
|
|
(0.04 |
) |
|
|
— |
|
|
(1.4 |
) |
|
|
(0.02 |
) |
|
||||
Total adjustments |
|
|
|
46.1 |
|
|
|
0.87 |
|
|
|
|
|
25.6 |
|
|
|
0.47 |
|
|
|||||||
Adjusted net income |
|
|
|
$ |
159.1 |
|
|
|
$ |
2.99 |
|
|
|
|
|
$ |
128.3 |
|
|
|
$ |
2.35 |
|
|
(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 EPS
|
|
Nine Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||
(in millions, except per share amounts) |
|
Pre-tax Impact |
|
After-tax Impact(1) |
|
Impact to
|
|
Pre-tax Impact |
|
After-tax Impact(1) |
|
Impact to
|
||||||||||||||
Net income (GAAP) |
|
|
|
$ |
293.6 |
|
|
|
$ |
5.50 |
|
|
|
|
|
$ |
239.5 |
|
|
|
$ |
4.31 |
|
|
||
Less: income (loss) from discontinued operations (GAAP) |
|
|
|
37.4 |
|
|
|
0.70 |
|
|
|
|
|
(4.0 |
) |
|
|
(0.07 |
) |
|
||||||
Income from continuing operations (GAAP) |
|
|
|
256.2 |
|
|
|
4.80 |
|
|
|
|
|
243.5 |
|
|
|
4.38 |
|
|
||||||
Exit and disposal, and facility rationalization costs |
|
14.0 |
|
|
10.5 |
|
|
|
0.20 |
|
|
|
16.0 |
|
|
12.2 |
|
|
|
0.22 |
|
|
||||
Inventory step-up amortization and acquisition costs |
|
24.4 |
|
|
20.0 |
|
|
|
0.37 |
|
|
|
6.1 |
|
|
4.6 |
|
|
|
0.08 |
|
|
||||
Impairment charges |
|
1.8 |
|
|
1.5 |
|
|
|
0.03 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from acquisitions and disposals(3) |
|
3.5 |
|
|
2.6 |
|
|
|
0.05 |
|
|
|
2.2 |
|
|
2.5 |
|
|
|
0.05 |
|
|
||||
Losses (gains) from insurance |
|
0.2 |
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses (gains) from litigation |
|
0.1 |
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
||||
Losses on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
8.8 |
|
|
6.6 |
|
|
|
0.12 |
|
|
||||
Acquisition-related amortization(4) |
|
90.7 |
|
|
68.7 |
|
|
|
1.29 |
|
|
|
89.6 |
|
|
68.0 |
|
|
|
1.22 |
|
|
||||
Discrete tax items(5) |
|
— |
|
|
(12.1 |
) |
|
|
(0.23 |
) |
|
|
— |
|
|
(6.4 |
) |
|
|
(0.11 |
) |
|
||||
Total adjustments |
|
|
|
91.5 |
|
|
|
1.71 |
|
|
|
|
|
87.5 |
|
|
|
1.58 |
|
|
||||||
Adjusted net income |
|
|
|
$ |
347.7 |
|
|
|
$ |
6.51 |
|
|
|
|
|
$ |
331.0 |
|
|
|
$ |
5.96 |
|
|
(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/20211021006034/en/
Vice President of Investor Relations
(480) 781-5135
jgiannakouros@carlisle.com
Source:
FAQ
What were Carlisle Companies' third quarter 2021 revenue results?
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