Carlisle(CSL) - 2024 Q1 - Quarterly Results

Company Overview & Highlights Carlisle demonstrated strong Q1 performance, strategic transformation to a pure-play building products company, and commitment to sustainability First Quarter 2024 Highlights Carlisle Companies achieved strong Q1 2024 growth in EPS, revenue, and margins, strategically transforming into a pure-play building products company Q1 2024 Financial Performance | Metric | Q1 2024 | Q1 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | Diluted EPS | $3.52 | $1.61 | 118.6% | | Adj. EPS | $3.72 | $2.01 | 85.1% | | Revenue | $1.1 billion | $892.6 million | 22.8% | | Operating Margin | 20.5% | 13.5% | +700 bps | | Adj. EBITDA Margin | 24.2% | 18.9% | +530 bps | - Final agreements were signed for the sale of CIT and acquisition of MTL, reinforcing the pure-play building products strategy[14][15] CEO Commentary & Strategic Vision CEO Chris Koch highlighted Q1 performance driven by macro trends, aligning with Vision 2030 and completing the pure-play building products transformation - First-quarter results demonstrate the company's ability to capitalize on macro trends like energy efficiency, labor savings, and growing re-roofing demand[1][4] - The company completed its transformation into a pure-play building products company by selling CIT for approximately $2 billion and acquiring MTL, a specialized manufacturer of high-performance metal edge and wall systems[15] About Carlisle Companies Incorporated Carlisle is a leading provider of innovative building envelope solutions, committed to energy efficiency, superior shareholder returns, and net-zero emissions by 2050 - A leading provider of innovative building envelope products and solutions, aiming to enhance building energy efficiency[21] - Committed to generating superior shareholder returns through balanced capital deployment and pledging to achieve net-zero greenhouse gas emissions by 2050[21] Financial Performance Carlisle's first-quarter financial performance shows significant revenue and net income growth, improved cash flows, and a healthy balance sheet Consolidated Financial Summary Carlisle achieved significant Q1 2024 revenue and net income growth, with improved cash flows and a healthy balance sheet Consolidated Statements of Income The consolidated statements of income reflect strong revenue and profit growth for Carlisle in the first quarter of 2024 Consolidated Statements of Income | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :-------------------------------- | :-------------------- | :-------------------- | | Revenues | $1,096.5 | $892.6 | | Operating Income | $225.2 | $120.7 | | Income from Continuing Operations | $170.9 | $83.6 | | Net Income | $192.3 | $101.7 | | Diluted EPS (Continuing Operations) | $3.52 | $1.61 | Consolidated Statements of Cash Flows The consolidated statements of cash flows highlight increased operating and free cash flow from continuing operations in Q1 2024 Consolidated Statements of Cash Flows | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :-------------------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $163.5 | $149.6 | | Capital expenditures | $(32.5) | $(40.2) | | Net cash used in investing activities | $(32.0) | $(31.7) | | Net cash used in financing activities | $(166.1) | $(94.8) | | Repurchases of common stock | $(150.0) | $(50.0) | | Dividends paid | $(41.5) | $(38.9) | - Operating cash flow from continuing operations increased by $33 million to $156 million year-over-year, while free cash flow from continuing operations grew by $42 million to $132 million year-over-year[5] Selected Consolidated Balance Sheet Data Selected consolidated balance sheet data indicates a stable financial position with consistent cash and debt levels Selected Consolidated Balance Sheet Data | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------ | | Cash and cash equivalents | $552.6 | $576.7 | | Long-term debt, including current portion | $2,289.7 | $2,289.4 | | Total stockholders' equity | $2,859.3 | $2,829.0 | Segment Performance Carlisle's CCM segment achieved strong Q1 revenue growth and margin expansion, while CWT improved EBITDA margin despite a slight revenue decrease Carlisle Construction Materials (CCM) Carlisle Construction Materials (CCM) demonstrated robust revenue growth and significant EBITDA margin expansion in the first quarter Carlisle Construction Materials (CCM) Performance | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Revenue | $784 | $576 | +36.0% | | Organic Revenue Growth | +35.9% | N/A | N/A | | Operating Income | $211 | $122.4 | +72.4% | | Adjusted EBITDA | $227 | $136.8 | +65.9% | | Adjusted EBITDA Margin | 28.9% | 23.8% | +510 bps | Carlisle Weatherproofing Technologies (CWT) Carlisle Weatherproofing Technologies (CWT) achieved notable EBITDA margin improvement despite a slight revenue decrease in the first quarter Carlisle Weatherproofing Technologies (CWT) Performance | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Revenue | $313 | $316.6 | -1.2% | | Organic Revenue Growth | -2.5% | N/A | N/A | | Operating Income | $42 | $24.1 | +74.3% | | Adjusted EBITDA | $65 | $53.9 | +20.6% | | Adjusted EBITDA Margin | 20.7% | 17.0% | +370 bps | Financial Outlook & Capital Allocation Carlisle updated its full-year 2024 outlook with increased revenue and margin expectations, maintaining a strong commitment to shareholder returns 2024 Full Year Outlook Carlisle raised its full-year 2024 outlook, projecting approximately 10% revenue growth and at least 100 basis points Adjusted EBITDA margin expansion - Full-year 2024 revenue is projected to grow by approximately 10%[1][14][30] - Adjusted EBITDA margin is expected to expand by over 100 basis points[1][14][30] - Segment revenue outlook includes low double-digit growth for CCM and mid-single-digit growth for CWT[30] Capital Allocation & Shareholder Returns Carlisle remains committed to shareholder returns, deploying $150 million for Q1 2024 share repurchases as part of its $1.4 billion full-year program - $150 million was deployed for share repurchases in Q1 2024, part of the $1.4 billion 2024 share repurchase program[19][27] - $42 million in cash dividends were paid in Q1 2024[19] Non-GAAP Financial Measures Carlisle utilizes non-GAAP financial measures to provide a clearer view of core operating performance and liquidity, offering reconciliations to GAAP where feasible Non-GAAP Disclosure Policy Carlisle uses non-GAAP metrics for clearer core performance and liquidity insights, providing GAAP reconciliations for historical data but not for forward-looking measures - Non-GAAP metrics are used to exclude variable items that may obscure core operating performance and enhance analysis of Carlisle's business trends and liquidity[10] - Reconciliations to GAAP are provided, but forward-looking non-GAAP measures are not reconciled due to the inability to reasonably determine the ultimate outcome of adjusting items[10] Free Cash Flow Reconciliation Free cash flow from continuing operations significantly increased in Q1 2024, primarily driven by improved operating cash flow and reduced capital expenditures from continuing operations Free Cash Flow Reconciliation | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :-------------------------------- | :-------------------- | :-------------------- | | Operating cash flow from continuing operations | $156.0 | $123.1 | | Capital expenditures from continuing operations | $(24.0) | $(33.4) | | Free cash flow from continuing operations | $132.0 | $89.7 | - Free cash flow from continuing operations increased by $42 million year-over-year[5] Organic Revenue Reconciliation Organic revenue growth was a significant driver of total revenue growth in Q1 2024, particularly within the CCM segment, while the CWT segment experienced an organic revenue decline Organic Revenue Reconciliation | Metric | Q1 2024 Total (in millions) | Q1 2024 CCM (in millions) | Q1 2024 CWT (in millions) | | :-------------------- | :-------------------------- | :------------------------ | :------------------------ | | 2023 Revenues (GAAP) | $892.6 | $576.0 | $316.6 | | Organic Change | $199.2 (22.3%) | $207.1 (35.9%) | $(7.9) (-2.5%) | | Acquisitions | $4.0 (0.4%) | — | $4.0 (1.2%) | | FX Impact | $0.7 (0.1%) | $0.5 (0.1%) | $0.2 (0.1%) | | Total Change | $203.9 (22.8%) | $207.6 (36.0%) | $(3.7) (-1.2%) | | 2024 Revenues (GAAP) | $1,096.5 | $783.6 | $312.9 | EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation Carlisle achieved strong Adjusted EBITDA growth and margin expansion in Q1 2024, primarily due to significant contributions from both CCM and CWT segments after adjusting for non-comparable items EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :-------------------------------- | :-------------------- | :-------------------- | | Net income (GAAP) | $192.3 | $101.7 | | Income from continuing operations (GAAP) | $170.9 | $83.6 | | EBIT | $225.5 | $121.7 | | Adjusted EBIT | $226.6 | $130.2 | | Adjusted EBITDA | $265.5 | $168.6 | | Total revenues | $1,096.5 | $892.6 | | Adjusted EBITDA margin | 24.2% | 18.9% | Segment Adjusted EBITDA and Margin | Segment | Q1 2024 Adj. EBITDA (in millions) | Q1 2024 Adj. EBITDA Margin | Q1 2023 Adj. EBITDA (in millions) | Q1 2023 Adj. EBITDA Margin | | :------ | :-------------------------------- | :------------------------- | :-------------------------------- | :------------------------- | | CCM | $226.8 | 28.9% | $136.8 | 23.8% | | CWT | $64.7 | 20.7% | $53.9 | 17.0% | Adjusted Net Income and Adjusted Diluted EPS Reconciliation Adjusted net income and adjusted diluted EPS both achieved significant year-over-year growth in Q1 2024, reflecting the company's core operating performance after specific adjustments Adjusted Net Income and Adjusted Diluted EPS Reconciliation | Metric | Q1 2024 (in millions, except EPS) | Q1 2023 (in millions, except EPS) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (GAAP) | $192.3 | $101.7 | | Income from continuing operations (GAAP) | $170.9 | $83.6 | | Adjusted net income | $180.5 | $104.2 | | Diluted EPS (Continuing Operations) | $3.52 | $1.61 | | Adjusted diluted EPS | $3.72 | $2.01 | - Key adjustment items include acquisition-related amortization, exit and disposal costs, and discrete tax items[42][56] Additional Information This section provides details on the Q1 earnings call, forward-looking statements, and investor contact information Conference Call and Webcast Details Carlisle held a conference call and webcast on April 25, 2024, to discuss its first-quarter 2024 results, with details provided for investor access - The conference call was held on April 25, 2024, at 5:00 p.m. ET[20] - Webcast access is available via the company website at www.carlisle.com/investors/events-and-presentations, or by phone at 800-549-8228 (domestic toll-free) or 646-564-2877 (international), using conference ID 27308[20][45] Forward-Looking Statements This press release contains forward-looking statements subject to various risks and uncertainties, with no obligation to update unless legally required - Forward-looking statements reflect future expectations but are subject to unforeseen risks and uncertainties[20] - Factors that could impact future performance include increased competition, technological developments, rising raw material costs, changes in government policy, and global economic conditions[20] Contact Information Investor relations contact information is provided for inquiries - Contact: Mehul Patel, Vice President of Investor Relations, Phone: (310) 592-9668, Email: mpatel@carlisle.com[47]