Carlisle(US:CSL)2023-04-27 16:00Financial Performance - Revenues for Q1 2023 decreased to $1,178.8 million, down 21.2% from $1,496.3 million in Q1 2022[89] - Operating income fell to $141.0 million, resulting in an operating margin of 12.0%, compared to 18.5% in the previous year[101] - Income from continuing operations decreased to $99.6 million, with diluted earnings per share from continuing operations at $1.92, down from $3.67[89] - Revenues for Carlisle Construction Materials segment decreased by 34.6% to $576.0 million in Q1 2023 from $881.1 million in Q1 2022[113] - Operating income for Carlisle Construction Materials segment fell by 53.1% to $122.4 million in Q1 2023 from $261.1 million in Q1 2022[113] - Revenues for Carlisle Weatherproofing Technologies segment decreased by 11.8% to $316.6 million in Q1 2023 from $359.1 million in Q1 2022[116] - Operating income for Carlisle Interconnect Technologies segment increased to $10.9 million in Q1 2023 from a loss of $2.5 million in Q1 2022[122] - The company reported net income of $101.7 million for Q1 2023, down from $193.6 million in Q1 2022, primarily due to lower income from continuing operations[144] Cash Flow and Investments - Operating cash flow generated in Q1 2023 was $149.6 million, utilized for stockholder returns and capital expenditures[93] - Total cash and cash equivalents increased to $423.9 million as of March 31, 2023, compared to $400.0 million as of December 31, 2022[128] - Operating cash flows for the first three months of 2023 were $149.6 million, up from $44.3 million in the same period of 2022, reflecting lower working capital uses[133] - Cash used in investing activities was $31.7 million in Q1 2023, primarily due to capital expenditures of $40.2 million, offset by proceeds from equipment sales of $8.0 million[135] - Cash used in financing activities totaled $94.8 million in Q1 2023, mainly for share repurchases of $50.0 million and cash dividends of $38.9 million, with a quarterly dividend increase to $0.75 per share[136] Research and Development - Research and development expenses increased by 26.0% to $15.5 million, reflecting higher new product development costs[98] - New product launches include a 16-foot TPO product and ReadyFlash technology aimed at reducing installation times[84] Market Conditions and Outlook - The anticipated seasonal ramp in construction activity is underway, with improved orders and shipments noted in April 2023[83] - The company maintains a strong backlog in non-residential construction, supported by positive market indicators despite potential recession concerns[82] - The company expects a mid single-digit decline in total revenues for 2023, with specific segments projecting varying performance, including high single-digit growth in Carlisle Interconnect Technologies and Carlisle Fluid Technologies[149] Corporate Governance and Compliance - The company maintained compliance with all covenants and limitations under its debt instruments as of March 31, 2023[141] - The company has not reported any material changes in market risk for the three months ended March 31, 2023[154] Environmental Commitment - The company is committed to achieving Net-Zero greenhouse gas emissions by 2050, with initiatives including the use of bio-based raw materials[85] - The company emphasizes its commitment to reducing greenhouse gas emissions and achieving net zero commitments[151] Other Considerations - Project costs for exiting manufacturing operations in Lugano, Switzerland, are expected to total approximately $7.6 million[120] - Interest expense decreased by 16.8% to $18.8 million in Q1 2023 from $22.6 million in Q1 2022[107] - The effective income tax rate on continuing operations for Q1 2023 was 22.2%, down from 23.7% in Q1 2022[110] - Corporate expenses for 2023 are projected to be approximately $115 million, with depreciation and amortization expenses around $250 million[149] - Capital expenditures for 2023 are estimated to be between $200 million and $225 million, with net interest expense expected to be approximately $60 million[149] - The report includes forward-looking statements that may be affected by various factors, including competition, technological developments, and economic conditions[151] - There are potential impacts from geopolitical events, such as the Russian invasion of Ukraine, on market conditions and future performance[151] - The company has undertaken stock repurchases during the reporting period, although specific figures are not provided in the extracted content[154]