Carlisle Companies Incorporated (NYSE:CSL) today announced its
third quarter 2023 financial results.
- GAAP diluted EPS of $4.32 & adj EPS of $4.68 for the
quarter, decreased 7.1% YoY
- Third quarter revenues of $1.3 billion, declined 15.8%
YoY
- Operating margin of 24% & adj EBITDA margin improvement
of 100 bps
- CCM adj EBITDA margin above 30% for the second consecutive
quarter
- CWT adj EBITDA margin grew 890 bps
- Repurchased 1.2 million shares for $330 million in the
quarter
Comments from Chris Koch, Chair,
President and Chief Executive Officer
“The third quarter marked a significant milestone in Carlisle’s
105-year history. With the recent announcement of the plan to sell
CIT and it being reclassified to discontinued operations in the
third quarter, we have effectively completed our restructuring of
the Carlisle portfolio of businesses with what we have referred to
as the “Pivot,” and become a pure-play building products
company.
“In 2021, we made the strategic decision, as superior capital
allocators, to focus our investments into our highest returning
building products businesses. Our history of supplying premium
products for the building envelope, our experience in the
construction markets, and our deep understanding of the future
drivers for this industry led us to believe that a pivot towards a
more simplified and streamlined building products portfolio would
provide our shareholders with the highest returns. We are also
convinced that our new focus will reward our employees, customers
and communities in many ways as our strategic initiatives will
leverage significant and positive trends in: greenhouse gas
reduction; energy efficiency and demand for “green” products; labor
reduction in installation of building envelope products; and waste
reduction in our manufacturing operations.
“The third quarter results reinforced our conviction that a
focused building products portfolio is the correct strategic path
forward. Our building products portfolio demonstrated our
resilience and ability to deliver superior returns in a challenging
environment. We are pleased by the Carlisle team’s strong margin
results, achieving an adjusted EBITDA margin of 27.0% and adjusted
EPS of $4.68 for the third quarter of 2023. We maintained pricing
levels while delivering consistent share, evidenced by our ability
to expand adjusted EBITDA margin by 100 basis points year-over
year. This adjusted EBITDA margin expansion is a testament to our
ability to sustain strong margins throughout economic cycles and
reflects our team's unwavering dedication to providing the Carlisle
Experience to end users and our commitment to continuous
improvement through the Carlisle Operating System (COS).
“In the quarter, the CCM team led with a spirit of continuous
improvement, reinforcing their efforts in driving innovation,
investing in world class manufacturing and supply chain
capabilities and refocusing our sales efforts. Their hard work
delivered a significant earnings result, despite a difficult macro
environment. Of note, adjusted EBITDA margin not only remains above
30%, but also improved sequentially. This performance continues to
prove the margin resiliency of our business through economic
cycles.
“Our CWT team delivered another quarter of exceptional results.
Adjusted EBITDA margin reached a record 23.4%, surging 890 basis
points higher than the previous year, and 90 basis points higher
than the previous quarter. CWT continues to expand margins from
Henry integration synergies, operating efficiencies through the
implementation of COS, and system selling initiatives.
“Looking ahead to the fourth quarter, we acknowledge the
headwinds that are present in the residential and non-residential
construction markets, posed by the Federal Reserve’s tightening
actions and a desire to reduce inflation. However, we remain
confident in our long-term vision and strategies, and our strong
positioning within the building products industry. Both CCM and CWT
are poised to capitalize on the growing demand for green building
solutions and energy-efficient systems, as well as the increasing
need for innovative products that simplify installation processes
and reduce labor. Additionally, CCM derives approximately 70% of
its revenue from non-discretionary re-roofing demand, providing a
reliable and sustainable growth path, particularly with the vast
majority of destocking now behind us.
“Our Vision 2025 strategy has provided us with a clear
direction, forming a solid foundation that has produced excellent
results. With Vision 2025 largely complete, and the Pivot
effectively finished, we now turn to Vision 2030, a strategic
vision that will continue to build upon Vision 2025, but with a
focus on building products. Vision 2030 will be released in
December and will provide comprehensive details about our path to
further value creation for all our stakeholders. We are excited
about the future of Carlisle, the many opportunities for continued
growth, and a strong path forward.”
Third Quarter 2023
Revenue for the third quarter of $1.3 billion decreased 15.8%
year-over-year. Organic revenue decreased 16.1% (organic revenue
defined as revenue excluding acquired revenues within the last 12
months and the impact of changes in foreign exchange rates versus
the U.S. Dollar).
Operating income for the third quarter of $299.9 million
decreased 7.4% from $324.0 million in the third quarter of 2022.
Income from continuing operations for the third quarter of $216.9
million decreased 7.0% from $233.3 million in the third quarter of
2022. Adjusted EBITDA for the third quarter of $339.7 million
decreased 12.8% from $389.5 million in the third quarter of 2022.
Despite the decline in third quarter revenues, adjusted EBITDA
margin improved 100 bps year-over-year.
Diluted earnings per share ("EPS") from continuing operations
for the third quarter of $4.32 decreased 2.3% from $4.42 in the
third quarter of 2022. Adjusted diluted EPS for the third quarter
of $4.68 decreased 7.1% from $5.04 in the third quarter of 2022.
The decrease in EPS reflects the impact from lower volume,
partially offset by raw material declines and share
repurchases.
Third Quarter 2023 Segment
Highlights
Carlisle Construction Materials ("CCM")
- Revenue of $914.0 million, declined 16.2% (-16.5% organic)
year-over-year, driven by the remaining destock that we expected
and end market softness attributable to Fed actions.
- Operating income was $272.5 million and adjusted EBITDA was
$289.4 million, down 18.3% year-over-year, reflecting an adjusted
EBITDA margin of 31.7%. The 80 basis points decrease was driven by
lower volumes, however, adjusted EBITDA margin expanded 50 basis
points from the second quarter of 2023.
- We expect Q4 2023 revenues to decrease 3% to 5%
year-over-year.
Carlisle Weatherproofing Technologies ("CWT")
- Revenue of $345.8 million, declined 15.0% (-14.9% organic)
year-over-year primarily due to residential demand weakness and
project delays.
- Operating income was $58.8 million and adjusted EBITDA was
$80.8 million, up 36.7% year-over-year reflecting an adjusted
EBITDA margin of 23.4%. The 890 basis points increase was driven by
operating efficiencies gained through targeted restructuring,
strategic sourcing and realized synergies from the Henry
acquisition.
- We expect Q4 2023 revenues to decrease approximately 10%
year-over-year.
Cash Flow
Operating cash flow from continuing operations for the nine
months ended September 30, 2023, was $661.9 million, an increase of
$119.3 million versus the prior year. Free cash flow from
continuing operations was $574.9 million, an increase of $143.8
million versus the prior year (defined as cash provided by
operating activities less capital expenditures and comprised of
continuing operations). This increase was driven by a reduction in
working capital uses as a result of lower sales volume, partially
offset by lower income from continuing operations.
During the nine months ended September 30, 2023, we deployed
$580.0 million toward share repurchases, including $330.0 million
in the current quarter, and paid $119.3 million in cash dividends,
including $42.1 million in the current quarter. As of September 30,
2023, we had 8.6 million shares available for repurchase under our
share repurchase program. Additionally, on September 1, 2023, we
repaid $300.0 million in senior notes. As of September 30, 2023, we
had $108.0 million of cash and cash equivalents and $1.0 billion of
availability under our revolving credit facility.
Conference Call and
Webcast
Carlisle will discuss third quarter 2023 results on a conference
call at 5:00 p.m. ET today. The call can be accessed via webcast,
along with related materials, at
www.carlisle.com/investors/events-and-presentations and via
telephone as follows:
Domestic toll free: 888-886-7786 International: 416-764-8658
Conference ID: 00270055
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements generally use words such as
"expect," "foresee," "anticipate," "believe," "project," "should,"
"estimate," "will," "plans," "intends," "forecast," and similar
expressions, and reflect our expectations concerning the future.
Such statements are made based on known events and circumstances at
the time of publication and, as such, are subject in the future to
unforeseen risks and uncertainties. It is possible that our future
performance may differ materially from current expectations
expressed in these forward-looking statements, due to a variety of
factors such as: increasing price and product/service competition
by foreign and domestic competitors, including new entrants;
technological developments and changes; the ability to continue to
introduce competitive new products and services on a timely,
cost-effective basis; our mix of products/services; increases in
raw material costs that cannot be recovered in product pricing;
domestic and foreign governmental and public policy changes
including environmental and industry regulations; the ability to
meet our goals relating to our intended reduction of greenhouse gas
emissions, including our net zero commitments; threats associated
with and efforts to combat terrorism; protection and validity of
patent and other intellectual property rights; the identification
of strategic acquisition targets and our successful completion of
any transaction and integration of our strategic acquisitions; our
successful completion of strategic dispositions; the cyclical
nature of our businesses; the impact of information technology,
cybersecurity or data security breaches at our businesses or third
parties; the outcome of pending and future litigation and
governmental proceedings; the emergence or continuation of
widespread health emergencies such as the COVID-19 pandemic,
including, for example, expectations regarding their impact on our
businesses, including on customer demand, supply chains and
distribution systems, production, our ability to maintain
appropriate labor levels, our ability to ship products to our
customers, our future results, or our full-year financial outlook;
and the other factors discussed in the reports we file with or
furnish to the Securities and Exchange Commission from time to
time. In addition, such statements could be affected by general
industry and market conditions and growth rates, the condition of
the financial and credit markets and general domestic and
international economic conditions, including inflation and interest
rate and currency exchange rate fluctuations. Further, any conflict
in the international arena, including the Russian invasion of
Ukraine and war in the Middle East, may adversely affect general
market conditions and our future performance. Any forward-looking
statement speaks only as of the date on which that statement is
made, and we undertake no duty to update any forward-looking
statement to reflect events or circumstances, including
unanticipated events, after the date on which that statement is
made, unless otherwise required by law. New factors emerge from
time to time and it is not possible for management to predict all
of those factors, nor can it assess the impact of each of those
factors on the business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statement.
Non-GAAP Disclosure
Carlisle reports its financial results in accordance with the
U.S. generally accepted accounting principles (GAAP). This press
release also contains certain financial measures such as adjusted
diluted EPS, adjusted EBITDA, adjusted EBITDA margin, organic
revenue and free cash flow that are not recognized under GAAP.
Management believes that adjusted diluted EPS, 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 businesses and evaluate
Carlisle’s performance relative to similarly-situated companies.
Reconciliations of these measures to amounts reported in Carlisle's
consolidated financial statements are in the supplemental schedules
of this press release.
About Carlisle Companies
Incorporated
Carlisle Companies Incorporated is a leading supplier of
innovative building envelope products and solutions for more energy
efficient buildings. Through its building products businesses –
Carlisle Construction Materials ("CCM") and Carlisle
Weatherproofing Technologies ("CWT") – and family of leading
brands, Carlisle delivers innovative, labor-reducing and
environmentally responsible products and solutions to customers
through the Carlisle Experience. Carlisle is committed to
generating superior shareholder returns and maintaining a balanced
capital deployment approach, including investments in our
businesses, strategic acquisitions, share repurchases and continued
dividend increases. Leveraging its culture of continuous
improvement as embodied in the Carlisle Operating System ("COS"),
Carlisle has committed to achieving net-zero greenhouse gas
emissions by 2050.
Carlisle Companies
Incorporated
Unaudited Consolidated Statements
of Income
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share
amounts)
2023
2022
2023
2022
Revenues
$
1,259.8
$
1,497.0
$
3,459.4
$
4,299.5
Cost of goods sold
793.7
982.5
2,244.9
2,789.0
Selling and administrative expenses
161.7
162.2
467.6
481.4
Research and development expenses
7.2
5.0
20.7
14.2
Other operating (income) expense, net
(2.7
)
23.3
(3.0
)
19.6
Operating income
299.9
324.0
729.2
995.3
Interest expense, net
19.4
22.6
57.0
67.6
Interest income
(3.6
)
(2.9
)
(12.5
)
(3.6
)
Other non-operating expense (income),
net
0.6
1.9
(1.2
)
5.2
Income from continuing operations before
income taxes
283.5
302.4
685.9
926.1
Provision for income taxes
66.6
69.1
158.7
221.1
Income from continuing operations
216.9
233.3
527.2
705.0
Discontinued operations:
Income before income taxes
43.2
24.7
20.2
46.2
(Benefit from) provision for income
taxes
(5.5
)
3.3
(14.5
)
1.4
Income from discontinued operations
48.7
21.4
34.7
44.8
Net income
$
265.6
$
254.7
$
561.9
$
749.8
Basic earnings per share attributable to
common shares:
Income from continuing operations
$
4.37
$
4.49
$
10.43
$
13.55
Income from discontinued operations
0.98
0.41
0.69
0.85
Basic earnings per share
$
5.35
$
4.90
$
11.12
$
14.40
Diluted earnings per share attributable to
common shares:
Income from continuing operations
$
4.32
$
4.42
$
10.32
$
13.35
Income from discontinued operations
0.97
0.41
0.68
0.85
Diluted earnings per share
$
5.29
$
4.83
$
11.00
$
14.20
Average shares outstanding:
Basic
49.5
51.9
50.4
51.9
Diluted
50.1
52.6
51.0
52.6
Dividends declared and paid per share
$
0.85
$
0.75
$
2.35
$
1.83
Carlisle Companies
Incorporated
Unaudited Condensed Consolidated
Statements of Cash Flows
Nine Months Ended
September 30,
(in millions)
2023
2022
Net cash provided by operating
activities
$
812.4
$
588.6
Investing activities:
Capital expenditures
(106.3
)
(130.5
)
Proceeds from sale of discontinued
operation, net of cash disposed
—
132.0
Acquisitions, net of cash acquired
—
(24.7
)
Investment in securities
0.9
10.3
Other investing activities, net
18.7
2.2
Net cash used in investing activities
(86.7
)
(10.7
)
Financing activities:
Repayments of notes
(300.0
)
—
Borrowings from revolving credit
facility
84.0
—
Repayments of revolving credit
facility
(84.0
)
—
Repurchases of common stock
(580.0
)
(201.1
)
Dividends paid
(119.3
)
(95.6
)
Proceeds from exercise of stock
options
17.7
39.3
Withholding tax paid related to
stock-based compensation
(10.4
)
(13.3
)
Other financing activities, net
(2.5
)
(2.5
)
Net cash used in financing activities
(994.5
)
(273.2
)
Effect of foreign currency exchange rate
changes on cash and cash equivalents
—
(3.7
)
Change in cash and cash equivalents
(268.8
)
301.0
Less: change in cash and cash equivalents
of discontinued operations
(12.0
)
7.3
Cash and cash equivalents at beginning of
period
364.8
299.1
Cash and cash equivalents at end of
period
$
108.0
$
592.8
Carlisle Companies
Incorporated
Unaudited Selected Consolidated
Balance Sheet Data
(in millions)
September 30,
2023
December 31,
2022
Cash and cash equivalents
$
108.0
$
364.8
Long-term debt, including current
portion
2,285.5
2,582.8
Total stockholders' equity
2,923.8
3,024.4
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Organic Revenue
Organic revenue (defined as revenue excluding acquired revenues
within the last 12 months and the impact of changes in foreign
exchange rates versus the U.S. Dollar) is intended to provide
investors and others with information about Carlisle's and its
segments' recurring operating performance. This information differs
from revenue determined in accordance with accounting principles
generally accepted in the United States of America ("GAAP") and
should not be considered in isolation or as a substitute for
measures of performance determined in accordance with GAAP.
Carlisle's and its segments' organic revenue follows, which may not
be comparable to similarly titled measures reported by other
companies.
Three Months Ended September
30,
(in millions, except percentages)
CSL
CCM
CWT
2022 Revenue (GAAP)
$
1,497.0
$
1,090.3
$
406.7
Organic
(240.3
)
(16.1
)%
(179.7
)
(16.5
)%
(60.6
)
(14.9
)%
Acquisitions
—
—
%
—
—
%
—
—
%
FX impact
3.1
0.3
%
3.4
0.3
%
(0.3
)
(0.1
)%
Total change
(237.2
)
(15.8
)%
(176.3
)
(16.2
)%
(60.9
)
(15.0
)%
2023 Revenue (GAAP)
$
1,259.8
$
914.0
$
345.8
Nine Months Ended September
30,
(in millions, except percentages)
CSL
CCM
CWT
2022 Revenues (GAAP)
$
4,299.5
$
3,084.8
$
1,214.7
Organic
(836.1
)
(19.4
)%
(646.8
)
(21.0
)%
(189.3
)
(15.6
)%
Acquisitions
—
—
%
—
—
%
—
—
%
FX impact
(4.0
)
(0.1
)%
(0.5
)
—
%
(3.5
)
(0.3
)%
Total change
(840.1
)
(19.5
)%
(647.3
)
(21.0
)%
(192.8
)
(15.9
)%
2023 Revenues (GAAP)
$
3,459.4
$
2,437.5
$
1,021.9
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 GAAP and should not be considered in isolation
or as a substitute for measures of performance determined in
accordance with GAAP. Carlisle's free cash flow follows, which may
not be comparable to similarly titled measures reported by other
companies.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Operating cash flow (GAAP)
$
441.7
$
365.1
$
812.4
$
588.6
Less: operating cash flow from
discontinued operations
51.6
22.6
150.5
46.0
Operating cash flow from continuing
operations
$
390.1
$
342.5
$
661.9
$
542.6
Capital expenditures (GAAP)
$
(36.2
)
$
(47.8
)
$
(106.3
)
$
(130.5
)
Less: capital expenditures from
discontinued operations
(6.2
)
(6.4
)
(19.3
)
(19.0
)
Capital expenditures from continuing
operations
$
(30.0
)
$
(41.4
)
$
(87.0
)
$
(111.5
)
Operating cash flow from continuing
operations
$
390.1
$
342.5
$
661.9
$
542.6
Capital expenditures from continuing
operations
(30.0
)
(41.4
)
(87.0
)
(111.5
)
Free cash flow from continuing
operations
$
360.1
$
301.1
$
574.9
$
431.1
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT,
Adjusted EBITDA and Adjusted EBITDA Margin
Earnings before interest and taxes ("EBIT"), adjusted EBIT,
adjusted earnings before interest, taxes, depreciation and
amortization ("EBITDA") and adjusted EBITDA margin are intended to
provide investors and others with information about 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.
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
September 30,
Nine Months Ended
September 30,
(in millions, except percentages)
2023
2022
2023
2022
Net income (GAAP)
$
265.6
$
254.7
$
561.9
$
749.8
Less: Income from discontinued operations
(GAAP)
48.7
21.4
34.7
44.8
Income from continuing operations
(GAAP)
216.9
233.3
527.2
705.0
Provision for income taxes
66.6
69.1
158.7
221.1
Interest expense, net
19.4
22.6
57.0
67.6
Interest income
(3.6
)
(2.9
)
(12.5
)
(3.6
)
EBIT
299.3
322.1
730.4
990.1
Exit and disposal, and facility
rationalization costs
1.7
—
4.5
0.1
Inventory step-up amortization and
transaction costs
—
2.3
1.6
3.1
Impairment charges
0.5
25.1
1.8
25.3
(Gains) losses from acquisitions and
disposals
(0.7
)
0.2
1.8
0.1
Losses from insurance
—
—
—
0.3
(Gains) losses from litigation
(0.1
)
—
(0.2
)
0.1
Total non-comparable items
1.4
27.6
9.5
29.0
Adjusted EBIT
300.7
349.7
739.9
1,019.1
Depreciation
16.8
17.2
48.9
50.1
Amortization
22.2
22.6
66.9
69.8
Adjusted EBITDA
$
339.7
$
389.5
$
855.7
$
1,139.0
Divided by:
Total revenues
$
1,259.8
$
1,497.0
$
3,459.4
$
4,299.5
Adjusted EBITDA margin
27.0
%
26.0
%
24.7
%
26.5
%
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA
Margin
Three Months Ended September
30, 2023
(in millions, except percentages)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
272.5
$
58.8
$
(31.4
)
Non-operating expense (income), net(1)
0.3
(0.2
)
0.5
EBIT
272.2
59.0
(31.9
)
Exit and disposal, and facility
rationalization costs
1.7
—
—
Impairment charges
—
0.5
—
Gains from acquisitions and disposals
(0.2
)
(0.5
)
—
Gains from litigation
—
—
(0.1
)
Total non-comparable items
1.5
—
(0.1
)
Adjusted EBIT
273.7
59.0
(32.0
)
Depreciation
11.7
4.1
1.0
Amortization
4.0
17.7
0.5
Adjusted EBITDA
$
289.4
$
80.8
$
(30.5
)
Divided by:
Total revenues
$
914.0
$
345.8
$
—
Adjusted EBITDA margin
31.7
%
23.4
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Three Months Ended September
30, 2022
(in millions, except percentages)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
341.7
$
9.6
$
(27.3
)
Non-operating expense, net(1)
1.2
0.2
0.5
EBIT
340.5
9.4
(27.8
)
Inventory step-up amortization and
transaction costs
—
—
2.3
Impairment charges
—
24.8
0.3
Losses from acquisitions and disposals
—
0.2
—
Total non-comparable items
—
25.0
2.6
Adjusted EBIT
340.5
34.4
(25.2
)
Depreciation
9.8
6.4
1.0
Amortization
3.8
18.3
0.5
Adjusted EBITDA
$
354.1
$
59.1
$
(23.7
)
Divided by:
Total revenues
$
1,090.3
$
406.7
$
—
Adjusted EBITDA margin
32.5
%
14.5
%
NM
(1)
Includes other non-operating (income)
expense, net, which may be presented in separate line items on the
unaudited Consolidated Statements of Income.
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA
Margin
Nine Months Ended September
30, 2023
(in millions)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
675.6
$
142.4
$
(88.8
)
Non-operating income, net(1)
—
—
(1.2
)
EBIT
675.6
142.4
(87.6
)
Exit and disposal, and facility
rationalization costs
1.8
2.7
—
Inventory step-up amortization and
acquisition costs
—
—
1.6
Impairment charges
—
1.8
—
(Gains) losses from acquisitions and
disposals
(0.5
)
2.4
(0.1
)
Gains from litigation
—
—
(0.2
)
Total non-comparable items
1.3
6.9
1.3
Adjusted EBIT
676.9
149.3
(86.3
)
Depreciation
32.8
13.2
2.9
Amortization
12.2
53.0
1.7
Adjusted EBITDA
$
721.9
$
215.5
$
(81.7
)
Total revenues
$
2,437.5
$
1,021.9
$
—
Adjusted EBITDA margin
29.6
%
21.1
%
NM
(1)
Includes other non-operating expense
(income), net, which may be presented in separate line items on the
Condensed Consolidated Statements of Income.
Nine Months Ended September
30, 2022
(in millions)
CCM
CWT
Corporate and
unallocated
Operating income (loss) (GAAP)
$
961.7
$
106.1
$
(72.5
)
Non-operating expense, net(1)
2.1
0.4
2.7
EBIT
959.6
105.7
(75.2
)
Exit and disposal, and facility
rationalization costs
—
0.1
—
Inventory step-up amortization and
acquisition costs
—
—
3.1
Impairment charges
—
25.0
0.3
(Gains) losses from acquisitions and
disposals
(0.1
)
0.2
—
Losses from insurance
—
0.3
—
Losses from litigation
—
—
0.1
Total non-comparable items
(0.1
)
25.6
3.5
Adjusted EBIT
959.5
131.3
(71.7
)
Depreciation
28.3
19.1
2.7
Amortization
12.9
55.3
1.6
Adjusted EBITDA
$
1,000.7
$
205.7
$
(67.4
)
Total revenues
$
3,084.8
$
1,214.7
$
—
Adjusted EBITDA margin
32.4
%
16.9
%
NM
(1)
Includes other non-operating expense
(income), net, 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 Diluted EPS
Adjusted net income and adjusted diluted earnings per share is
intended to provide investors and others with information about
Carlisle's performance without the effect of items that, by their
nature, tend to obscure 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
GAAP and should not be considered in isolation or as a substitute
for measures of performance determined in accordance with GAAP.
Carlisle's adjusted net income and adjusted diluted earnings per
share follows, which may not be comparable to similarly titled
measures reported by other companies.
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
(in millions, except per share
amounts)
Pre-tax Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Pre-tax Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Net income (GAAP)
$
265.6
$
5.29
$
254.7
$
4.83
Less: Income from discontinued operations
(GAAP)
48.7
0.97
21.4
0.41
Income from continuing operations
(GAAP)
216.9
4.32
233.3
4.42
Exit and disposal, and facility
rationalization costs
1.7
1.1
0.02
—
—
—
Inventory step-up amortization and
transaction costs
—
—
—
2.3
1.7
0.03
Impairment charges
0.5
0.3
0.01
25.1
19.1
0.36
(Gains) losses from acquisitions and
disposals
(0.7
)
(0.4
)
(0.01
)
0.2
0.1
—
Acquisition-related amortization(3)
20.9
15.8
0.32
21.6
16.3
0.31
Discrete tax items(4)
—
1.1
0.02
—
(4.6
)
(0.08
)
Total adjustments
17.9
0.36
32.6
0.62
Adjusted net income
$
234.8
$
4.68
$
265.9
$
5.04
(1)
The impact to net income reflects the tax
effect of noted items, which is based on the statutory rate in the
jurisdiction in which the expense or income is deductible or
taxable.
(2)
The per share impact of adjustments to
each period is based on diluted shares outstanding using the
two-class method.
(3)
Acquisition-related amortization includes
the amortization of customer relationships, technology, trade names
and other intangible assets recorded in purchase accounting in
connection with a business combination. These intangible assets
contribute to revenue generation and the amortization of these
assets will recur until such intangible assets are fully
amortized.
(4)
Discrete tax items include current period
tax expense or benefit related to prior year items, the tax impact
of foreign currency gains and losses, or changes in tax laws or
rates.
Carlisle Companies
Incorporated
Unaudited Non-GAAP Financial
Measures - Adjusted Net Income and Adjusted Diluted EPS
Nine Months Ended
September 30, 2023
Nine Months Ended
September 30, 2022
(in millions, except per share
amounts)
Pre-tax Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Pre-tax Impact
After-tax
Impact(1)
Impact to Diluted
EPS(2)
Net income (GAAP)
$
561.9
$
11.00
$
749.8
$
14.20
Less: Income from discontinued operations
(GAAP)
34.7
0.68
44.8
0.85
Income from continuing operations
(GAAP)
527.2
10.32
705.0
13.35
Exit and disposal, and facility
rationalization costs
4.5
3.3
0.06
0.1
0.1
—
Inventory step-up amortization and
acquisition costs
1.6
1.2
0.02
3.1
2.3
0.04
Impairment charges
1.8
1.3
0.03
25.3
19.2
0.36
Losses from acquisitions and disposals
1.8
1.4
0.03
0.1
0.1
—
Losses from insurance
—
—
—
0.3
0.2
—
(Gains) losses from litigation
(0.2
)
(0.1
)
—
0.1
0.1
—
Acquisition-related amortization(3)
63.0
47.4
0.93
66.7
50.3
0.95
Discrete tax items(4)
—
(1.8
)
(0.04
)
—
(4.8
)
(0.09
)
Total adjustments
52.7
1.03
67.5
1.26
Adjusted net income
$
579.9
$
11.35
$
772.5
$
14.61
(1)
The impact to net income reflects the tax
effect of noted items, which is based on the statutory rate in the
jurisdiction in which the expense or income is deductible or
taxable.
(2)
The per share impact of adjustments to
each period is based on diluted shares outstanding using the
two-class method.
(3)
Acquisition-related amortization includes
the amortization of customer relationships, technology, trade names
and other intangible assets recorded in purchase accounting in
connection with a business combination. These intangible assets
contribute to revenue generation and the amortization of these
assets will recur until such intangible assets are fully
amortized.
(4)
Discrete tax items include current period
tax expense or benefit related to prior year items, the tax impact
of foreign currency gains and losses, or changes in tax laws or
rates.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026715083/en/
Mehul Patel Vice President, Investor Relations (310) 592-9668
mpatel@carlisle.com
Carlisle Companies (NYSE:CSL)
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