Carlisle(US:CSL)2022-10-27 16:00Financial Performance - Carlisle reported revenues of $1,794.1 million for the third quarter of 2022, a 36.4% increase from $1,315.6 million in the same quarter of 2021[107]. - Operating income for the third quarter of 2022 was $348.2 million, compared to $166.5 million in the third quarter of 2021, resulting in an operating margin of 19.4%[107]. - Diluted earnings per share from continuing operations increased to $4.84 in the third quarter of 2022, up from $2.12 in the same quarter of 2021[110]. - Revenues for the Carlisle Construction Materials segment in Q3 2022 were $1,090.3 million, a 39.1% increase from $783.9 million in Q3 2021, driven by positive pricing across all product lines[131]. - Operating income for the Carlisle Construction Materials segment in Q3 2022 was $341.7 million, an 88.7% increase from $181.1 million in Q3 2021, with an operating margin of 31.3%[131]. - Adjusted EBITDA for the Carlisle Construction Materials segment in Q3 2022 was $354.1 million, an increase of 82.4% from $194.1 million in Q3 2021[131]. - Total revenues for the first nine months of 2022 were $5,137.3 million, up from $3,434.3 million in the same period of 2021[177]. - The company reported net income from continuing operations of $745.4 million for the first nine months of 2022, compared to $256.2 million in the same period of 2021[177]. Cash Flow and Investments - The company generated $588.6 million in operating cash flow in the first nine months of 2022, returning $95.6 million to stockholders through dividends and repurchasing $201.1 million of shares[112]. - Total cash and cash equivalents as of September 30, 2022, were $625.4 million, up from $324.4 million as of December 31, 2021, primarily due to cash generated from operations[148]. - Cash used in investing activities was $10.7 million for the first nine months of 2022, primarily due to capital expenditures of $130.5 million and the acquisition of MBTechnology for $24.7 million[155]. - Cash used in financing activities was $273.2 million in the first nine months of 2022, mainly from share repurchases of $201.1 million and cash dividend payments of $95.6 million[156]. - The company redeemed $350.0 million of unsecured senior notes on October 17, 2022, at a total redemption price of $355.5 million[157]. Growth and Strategic Initiatives - The acquisition of ASP Henry Holdings, Inc. contributed to revenue growth in the Carlisle Weatherproofing Technologies segment[108]. - The company aims to achieve $15 of GAAP earnings per share as part of its Vision 2025 strategic plan[100]. - Carlisle Construction Materials expects 35 to 40% revenue growth driven by strong re-roofing and new construction activity, along with increasing demand for energy-efficient building products[184]. - Carlisle Weatherproofing Technologies anticipates approximately 60% growth due to the Henry acquisition and non-residential demand growth[184]. - Carlisle Interconnect Technologies projects growth exceeding 20% supported by increasing demand in commercial aerospace and medical markets[184]. - Carlisle Fluid Technologies expects mid single-digit growth, focusing on new product introductions and maintaining price discipline[184]. - Total Carlisle revenue growth is projected at 35 to 40% for 2022[184]. Expenses and Taxation - Research and development expenses increased to $13.1 million in the third quarter of 2022, reflecting higher new product development costs[117]. - Other operating expense (income), net for Q3 2022 was $22.0 million, a change of $22.3 million compared to Q3 2021, primarily due to intangible asset impairments of $18.6 million and fixed asset impairments of $6.2 million[118]. - Interest expense, net for Q3 2022 was $22.6 million, an increase of 14.1% from $19.8 million in Q3 2021, primarily due to higher long-term debt balances[122]. - Provision for income taxes for Q3 2022 was $72.2 million, a significant increase of 118.8% from $33.0 million in Q3 2021, with an effective tax rate of 22.1%[126]. - The effective income tax rate on continuing operations for the first nine months of 2022 was 23.0%, compared to 20.5% in the same period of 2021[127]. - Corporate expenses are estimated at approximately $105 million for 2022[184]. - Depreciation and amortization expense is expected to be around $250 million[184]. - Interest expense, net of interest income, is anticipated to be about $90 million[184]. - The base tax rate is expected to be approximately 24-25%[184]. Impairments and Goodwill - The company performed a quantitative impairment analysis for its rubber asset group, resulting in an impairment of $6.2 million for property, plant, and equipment and $18.6 million for definite-lived intangible assets[173]. - The carrying amount of goodwill for the CIT Medical reporting unit was $233.9 million as of September 30, 2022, with no impairment charge recorded despite a fair value exceeding the carrying amount by approximately 10%[164]. - The company experienced a significant reduction in impairment charges, with $25.0 million recorded for the nine months ended September 30, 2022, compared to $1.8 million in the same period of 2021[182].