CHARLOTTE, N.C.--(BUSINESS WIRE)--
Carlisle Companies, Incorporated (NYSE:CSL) reported record first
quarter net sales from continuing operations of $794.0 million for the
first quarter ended March 31, 2016, a 12% increase from $709.3 million
in the first quarter 2015. Net sales from acquisitions contributed 8.6%
to net sales in the first quarter. Organic net sales (defined as net
sales excluding sales from acquisitions within the last twelve months,
as well as the impact of changes in foreign exchange rates versus the
U.S. dollar) grew 3.6%. Fluctuations from foreign exchange had a
negative impact to net sales of less than 1%.
Income from continuing operations increased 73% to a first quarter
record of $68.5 million, compared with $39.5 million in the first
quarter 2015. Income growth was primarily driven by continued selling
price discipline by Carlisle Construction Materials (CCM), lower raw
material costs in all segments, higher net sales volume, savings from
the Carlisle Operating System (COS), and contribution from the Finishing
Brands acquisition in the Carlisle Fluid Technologies (CFT) segment. On
a per share basis, income from continuing operations in the first
quarter 2016 rose 78% to a first quarter record of $1.05 per diluted
share, from $0.59 per diluted share in the prior year.
All financial and percentage comparisons in the Company’s first quarter
2016 reporting are made to the same quarter of the previous year, unless
otherwise stated. On April 1, 2015, the Company completed the
acquisition of the Finishing Brands business. Beginning in the second
quarter 2015, the Company added a reportable segment, Carlisle Fluid
Technologies (CFT), to report the operations of this business post
acquisition. This press release also includes a non-GAAP measure of
performance based on a comparison of three months ended March 31, 2016
to 2015 selected financial results on a pro forma basis for Carlisle and
the CFT segment, which assumes the acquisition of Finishing Brands had
occurred on January 1, 2014. For a reconciliation to the reported GAAP
amounts, refer to the financial exhibits.
Comment
D. Christian “Chris” Koch, President and Chief Executive Officer, said,
“We are very pleased with these record first quarter results as we
continue to execute on our core strategies and well established
objectives. We achieved net sales growth of 12% in the quarter,
including 3.6% organic net sales growth. Our EBIT (earnings before
interest and taxes) grew an impressive 67% to $110.6 million and EBIT
margin improved 450 bps to 13.9%, both record results for a first
quarter. Our focus on pricing maintenance at CCM, the solid integration
of the Finishing Brands acquisition, and ongoing COS savings enabled us
to again deliver increased earnings and improved cash flow in the
quarter.
“Net sales at CCM in the first quarter 2016 grew 8.7% on healthy demand
for commercial roofing and favorable weather conditions. The commercial
roofing market continued to display selling price discipline. CCM’s
strong performance in higher sales, pricing maintenance and COS savings
resulted in segment EBIT growth of 97% and EBIT margin expansion of 800
basis points to 17.9%. The continuance of CCM’s strong performance into
the first quarter provides a solid start to the year as we enter our
busiest season. We expect another record year at CCM in 2016.
“Carlisle Interconnect Technologies’ (CIT) net sales in the first
quarter grew 1.2% reflecting 2.9% higher net sales volume partially
offset by lower selling price from contractual aerospace price
reductions. In addition, CIT’s net sales growth faced a more challenging
comparison to double-digit net sales growth in the first quarter of last
year. CIT’s EBIT margin rose 90 basis points to a very strong 18.6% in
the first quarter, a 290 basis point sequential improvement from the
fourth quarter 2015. CIT’s manufacturing initiatives to expand
production capacity for its new SatCom aerospace technology and medical
applications are on track. We are very encouraged by the demand we have
received for our SatCom product, and expect shipments to begin in the
third quarter of this year. For the full year, we are planning for net
sales growth at CIT in the mid-to-high single digit percent range.
“Net sales at Carlisle Fluid Technologies of $61.2 million in the first
quarter were in line with our expectations. As previously announced, we
completed the acquisition of MS Oberflächentechnik AG (MS) in
Switzerland in the first quarter. We are excited to be taking the first
step in our focused acquisition strategy for CFT by adding this high
quality powder coating business to the CFT growth platform. CFT’s EBIT
margin of 11.3% included 750 basis points of acquisition related
amortization expense and 200 basis points, or $1.2 million, in
restructuring and relocation costs. As part of its integration strategy,
CFT commenced plans to consolidate select foreign sales and distribution
offices, and to consolidate certain administrative functions into its
new global headquarters in Phoenix, AZ. We expect CFT’s new Phoenix
headquarters to be ready in the second half of this year. Further
relocation costs and investment in staff to support our global growth
strategy are expected this year.
“We were very pleased with Carlisle FoodService Products’ (CFS)
performance this quarter. CFS’ net sales growth of 5.6% in the first
quarter represents the third consecutive quarter of increased
year-over-year net sales growth. CFS’ net sales growth was broad based
in the foodservice market with increased sales to larger accounts and
national chains. CFS’ EBIT grew 31% and its EBIT margin improved 240
basis points to 11.8% on higher net sales and increased operating
efficiencies.
“Carlisle Brake & Friction’s (CBF) net sales in the first quarter
decreased 17%, primarily due to a continued decline in volume from OEM
customers in its key end markets of construction, mining, and
agriculture. CBF’s team took notable actions to improve efficiencies and
reduce costs to achieve an EBIT margin of 5.1% this quarter, despite the
significant net sales decline. We expect the decrease in CBF’s 2016 net
sales from last year will be in the high-single digit percent range. We
continue to take aggressive cost reduction measures to mitigate the
impact of depressed market conditions.
“We had free cash flow generation of $90.3 million in the quarter, a
197% improvement over last year and another first quarter record,
reflecting strong cash generation at CCM. We ended the quarter with $451
million in cash on hand and $600 million of availability on our credit
facility. We intend to use our liquidity to maximize value to
shareholders by pursuing acquisition and organic growth opportunities as
well as returning capital to shareholders.”
Koch concluded by stating, “For the full year 2016, we continue to plan
for mid-single digit sales growth reflecting organic growth led by CCM,
CIT and CFS and acquisition driven growth at CFT. Capital expenditures
will be approximately $90 million to $110 million in 2016. Again we are
pleased with our strong start to 2016 and expect to have another record
year.”
Segment Results for First Quarter 2016
Carlisle Construction Materials (CCM): Net sales in the first
quarter 2016 grew 8.7% to $403.7 million, reflecting higher net sales
volume partially offset by lower selling price. Organic net sales growth
reflected higher demand for commercial roofing and insulation
applications and favorable weather conditions in the first quarter of
2016 versus the prior year. Segment EBIT margin rose 800 basis points to
17.9%, reflecting market discipline in selling price combined with lower
raw material costs, higher net sales volume, and savings from COS.
Carlisle Interconnect Technologies (CIT): Net sales in the first
quarter 2016 grew 1.2% to $196.7 million, reflecting higher net sales
volume partially offset by lower selling price from contractual pricing
reductions. Net sales to the aerospace market increased 2%. Net sales to
the medical market rose 6%. Net sales to the industrial market declined
16%. Segment EBIT margin increased 90 basis points to 18.6% in the first
quarter primarily reflecting savings from COS and higher net sales
volume partially offset by lower selling prices.
Carlisle Fluid Technologies (CFT): Net sales in the first quarter
2016 were $61.2 million. On a pro forma basis, net sales in the first
quarter were level with the prior year reflecting a 2.1% increase in net
sales primarily due to higher selling price offset by the negative
impact of foreign currency fluctuations. On a pro forma basis, segment
EBIT margin for the first quarter of 2016 decreased 180 basis points to
11.3% reflecting restructuring and relocation expenses in the first
quarter.
Carlisle Brake & Friction (CBF): Net sales in the first
quarter of 2016 decreased 17% to $72.0 million, comprised of 16% lower
organic net sales and a 1.0% negative impact on net sales from foreign
exchange rate fluctuations. Net sales in the construction market
declined 23%. Net sales in the mining market declined 19%. Net sales in
the agriculture market declined 6%. Segment EBIT margin declined 440
basis points to 5.1%, reflecting lower sales volume mitigated by cost
reduction actions.
Carlisle FoodService Products (CFS): Net sales in the first
quarter 2016 grew 5.6% to $60.4 million driven by 15% higher net sales
in the foodservice market partially offset by 8% lower net sales in the
healthcare market. Sales to the healthcare market declined due to lower
equipment demand. Segment EBIT margin increased 240 basis points to
11.8% in the first quarter reflecting the favorable impact of higher net
sales volume.
Cash Flow
Cash flow provided from operations of $109.0 million for the three
months ended March 31, 2016 was $59.5 million higher than cash provided
of $49.5 million for the prior year period due to higher net income and
reduction in cash usage for working capital. In 2016, average working
capital (defined as the average of the quarter-end balances, excluding
current year acquisitions, of receivables, plus inventory less accounts
payable) as a percentage of annualized sales (defined as year-to-date
net sales from continuing operations, excluding current year
acquisitions, calculated on an annualized basis) decreased to 20.2%, as
compared to 20.4% for the prior year.
Free cash flow (defined as cash provided by operating activities less
capital expenditures, and comprised of continuing and discontinued
operations) was $90.3 million in the first quarter 2016, an increase of
$59.9 million versus the prior year. The increase in free cash flow was
attributable to increased cash provided from operations.
Net cash used in investing activities for the three months ended March
31, 2016 includes $8.1 million in cash used to acquire MS.
During the first quarter 2016, we utilized $28.5 million in cash to
repurchase 331,747 in shares under our repurchase program.
Conference Call and Webcast
The Company will discuss first quarter 2016 results on a conference call
at 8:00 a.m. ET today. The call may be accessed live by going to the
Investor Relations section of the Carlisle website (http://www.carlisle.com/investor-relations/events-and-webcasts/default.aspx),
or the taped call may be listened to shortly following the live call at
the same website location. A PowerPoint presentation will accompany the
call and can be found on the Carlisle website as well.
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,” “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: 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 integration and identification of our
strategic acquisitions; the cyclical nature of our businesses; 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 Securities and Exchange Commission, such as our reports on
Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other
risks and uncertainties that could cause our actual results to differ
materially from our current expectations and from the forward-looking
statements contained in this press release. We undertake no
obligation to update any forward-looking statement.
About Carlisle Companies Incorporated
Carlisle Companies Incorporated is a global diversified company that
designs, manufactures and markets a wide range of products that serve a
broad range of niche markets including commercial roofing, energy,
agriculture, mining, construction, aerospace and defense electronics,
medical technology, foodservice, healthcare, sanitary maintenance,
transportation, auto refinishing, general industrial, protective
coating, wood and specialty. Through our group of decentralized
operating companies led by entrepreneurial management teams, we bring
innovative product solutions to solve the challenges facing our
customers. Our worldwide team of employees, who generated $3.5 billion
in net sales in 2015, is focused on continuously improving the value of
the Carlisle brand by developing the best products, ensuring the highest
quality and providing unequaled customer service in the many industries
we serve. Learn more about Carlisle at www.carlisle.com.
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Carlisle Companies Incorporated
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Unaudited Condensed Consolidated Statements of Earnings
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Three Months Ended March 31,
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(in millions except share and per share amounts)
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2016
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2015
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Net Sales
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$
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794.0
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$
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709.3
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Cost and expenses:
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Cost of goods sold
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548.6
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536.3
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Selling and administrative expenses
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124.1
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98.1
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Research and development expenses
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11.3
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8.8
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Other income, net
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(0.6)
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(0.3)
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Earnings before interest and income taxes
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110.6
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66.4
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Interest expense, net
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8.4
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8.4
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Earnings before income taxes from continuing operations
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102.2
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58.0
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Income tax expense
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33.7
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18.5
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Income from continuing operations
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68.5
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39.5
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Discontinued operations
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Loss before income taxes
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-
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(0.2)
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Income tax benefit
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-
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(0.1)
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Loss from discontinued operations
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-
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(0.1)
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Net income
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$
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68.5
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$
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39.4
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Basic earnings per share attributable to common shares(1)
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Income from continuing operations
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$
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1.06
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$
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0.60
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Income from discontinued operations
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-
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-
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Basic earnings per share
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$
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1.06
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$
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0.60
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Diluted earnings per share attributable to common shares(1)
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Income from continuing operations
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$
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1.05
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$
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0.59
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Income from discontinued operations
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-
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-
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Diluted earnings per share
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$
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1.05
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$
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0.59
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Average shares outstanding - in thousands
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Basic
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64,018
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64,876
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Diluted
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64,876
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65,896
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Dividends declared and paid
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$
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19.5
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$
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16.7
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Dividends declared and paid per share
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$
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0.30
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$
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0.25
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_________________
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(1) Numerator for basic and diluted EPS calculated based on
"two-class" method of computing earnings per share:
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Income from continuing operations
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$
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67.8
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$
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38.9
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Net Income
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$
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67.8
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$
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38.8
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Carlisle Companies Incorporated
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Unaudited Segment Information
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Three Months Ended
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Increase
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March 31,
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(Decrease)
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(in millions, except percentages)
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2016
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2015
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Amount
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Percent
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Net Sales
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Carlisle Construction Materials
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$
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403.7
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$
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371.3
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$
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32.4
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8.7
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%
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Carlisle Interconnect Technologies
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196.7
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194.4
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2.3
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1.2
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Carlisle Fluid Technologies
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61.2
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-
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61.2
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-
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Carlisle Brake & Friction
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72.0
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86.4
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(14.4)
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(16.7)
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Carlisle FoodService Products
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60.4
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57.2
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3.2
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5.6
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Total
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$
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794.0
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$
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709.3
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$
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84.7
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11.9
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%
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Earnings Before Interest and Income Taxes
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Carlisle Construction Materials
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$
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72.3
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$
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36.7
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$
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35.6
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97.0
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%
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Carlisle Interconnect Technologies
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36.6
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34.5
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2.1
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6.1
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Carlisle Fluid Technologies
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6.9
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-
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6.9
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-
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Carlisle Brake & Friction
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3.7
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8.2
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(4.5)
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(54.9)
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Carlisle FoodService Products
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7.1
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5.4
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1.7
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31.5
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Corporate
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(16.0)
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(18.4)
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2.4
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13.0
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Total
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$
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110.6
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$
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66.4
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$
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44.2
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66.6
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%
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EBIT Margins
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Carlisle Construction Materials
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17.9
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%
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9.9
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%
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Carlisle Interconnect Technologies
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18.6
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17.7
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Carlisle Fluid Technologies
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11.3
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-
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Carlisle Brake & Friction
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5.1
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9.5
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Carlisle FoodService Products
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11.8
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9.4
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Corporate
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(2.0)
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(2.6)
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Total
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13.9
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%
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9.4
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%
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Carlisle Companies Incorporated
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Unaudited Pro Forma Segment Information1
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Increase
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
Amount
|
|
|
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
|
$
|
403.7
|
|
|
|
|
$
|
371.3
|
|
|
|
|
$
|
32.4
|
|
|
|
|
8.7
|
%
|
Carlisle Interconnect Technologies
|
|
|
|
|
|
196.7
|
|
|
|
|
|
194.4
|
|
|
|
|
|
2.3
|
|
|
|
|
1.2
|
|
Carlisle Fluid Technologies
|
|
|
|
|
|
61.2
|
|
|
|
|
|
61.2
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Carlisle Brake & Friction
|
|
|
|
|
|
72.0
|
|
|
|
|
|
86.4
|
|
|
|
|
|
(14.4)
|
|
|
|
|
(16.7)
|
|
Carlisle FoodService Products
|
|
|
|
|
|
60.4
|
|
|
|
|
|
57.2
|
|
|
|
|
|
3.2
|
|
|
|
|
5.6
|
|
Total
|
|
|
|
|
$
|
794.0
|
|
|
|
|
$
|
770.5
|
|
|
|
|
$
|
23.5
|
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
|
$
|
72.3
|
|
|
|
|
$
|
36.7
|
|
|
|
|
$
|
35.6
|
|
|
|
|
97.0
|
%
|
Carlisle Interconnect Technologies
|
|
|
|
|
|
36.6
|
|
|
|
|
|
34.5
|
|
|
|
|
|
2.1
|
|
|
|
|
6.1
|
|
Carlisle Fluid Technologies
|
|
|
|
|
|
6.9
|
|
|
|
|
|
8.0
|
|
|
|
|
|
(1.1)
|
|
|
|
|
(13.8)
|
|
Carlisle Brake & Friction
|
|
|
|
|
|
3.7
|
|
|
|
|
|
8.2
|
|
|
|
|
|
(4.5)
|
|
|
|
|
(54.9)
|
|
Carlisle FoodService Products
|
|
|
|
|
|
7.1
|
|
|
|
|
|
5.4
|
|
|
|
|
|
1.7
|
|
|
|
|
31.5
|
|
Corporate
|
|
|
|
|
|
(16.0)
|
|
|
|
|
|
(18.4)
|
|
|
|
|
|
2.4
|
|
|
|
|
13.0
|
|
Total
|
|
|
|
|
$
|
110.6
|
|
|
|
|
$
|
74.4
|
|
|
|
|
$
|
36.2
|
|
|
|
|
48.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
|
|
17.9
|
%
|
|
|
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Interconnect Technologies
|
|
|
|
|
|
18.6
|
|
|
|
|
|
17.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Fluid Technologies
|
|
|
|
|
|
11.3
|
|
|
|
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Brake & Friction
|
|
|
|
|
|
5.1
|
|
|
|
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle FoodService Products
|
|
|
|
|
|
11.8
|
|
|
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
(2.0)
|
|
|
|
|
|
(2.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
13.9
|
%
|
|
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
|
1
|
|
Inclusive of pro forma adjustments in the first quarter 2015
related to the acquisition of Finishing Brands. See the last
page of the financial exhibits for a reconciliation of the
adjustments to net sales and EBIT reported above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
(in millions except share and per share amounts)
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
450.5
|
|
|
$
|
410.7
|
Receivables, net of allowance of $4.6 in 2016 and $4.7 in 2015
|
|
|
|
|
507.7
|
|
|
|
502.5
|
Inventories
|
|
|
|
|
380.9
|
|
|
|
356.0
|
Prepaid expenses and other current assets
|
|
|
|
|
43.6
|
|
|
|
50.3
|
Total current assets
|
|
|
|
|
1,382.7
|
|
|
|
1,319.5
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net of accumulated depreciation
|
|
|
|
|
592.3
|
|
|
|
585.8
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
Goodwill, net
|
|
|
|
|
1,138.8
|
|
|
|
1,134.4
|
Other intangible assets, net
|
|
|
|
|
888.1
|
|
|
|
887.8
|
Other long-term assets
|
|
|
|
|
23.9
|
|
|
|
23.4
|
Total other assets
|
|
|
|
|
2,050.8
|
|
|
|
2,045.6
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
|
$
|
4,025.8
|
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term debt, including current maturities
|
|
|
|
$
|
149.9
|
|
|
$
|
149.8
|
Accounts payable
|
|
|
|
|
248.4
|
|
|
|
212.6
|
Accrued expenses
|
|
|
|
|
202.4
|
|
|
|
219.4
|
Deferred revenue
|
|
|
|
|
28.1
|
|
|
|
24.0
|
Total current liabilities
|
|
|
|
|
628.8
|
|
|
|
605.8
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
595.8
|
|
|
|
595.6
|
Deferred revenue
|
|
|
|
|
161.3
|
|
|
|
159.7
|
Other long-term liabilities
|
|
|
|
|
252.4
|
|
|
|
242.4
|
Total long-term liabilities
|
|
|
|
|
1,009.5
|
|
|
|
997.7
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock, $1 par value per share. Authorized and unissued
5,000,000 shares
|
|
|
|
|
-
|
|
|
|
-
|
Common stock, $1 par value per share. Authorized 200,000,000;
78,661,248 issued; 63,961,112 outstanding in 2016 and
64,051,600 in 2015
|
|
|
|
|
78.7
|
|
|
|
78.7
|
Additional paid-in capital
|
|
|
|
|
298.2
|
|
|
|
293.4
|
Deferred compensation equity
|
|
|
|
|
10.4
|
|
|
|
8.0
|
Cost of shares in treasury - 14,472,806 shares in 2016 and
14,383,241 shares in 2015
|
|
|
|
|
(353.9)
|
|
|
|
(327.4)
|
Accumulated other comprehensive loss
|
|
|
|
|
(76.7)
|
|
|
|
(87.1)
|
Retained earnings
|
|
|
|
|
2,430.8
|
|
|
|
2,381.8
|
Total shareholders' equity
|
|
|
|
|
2,387.5
|
|
|
|
2,347.4
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
$
|
4,025.8
|
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
(in millions)
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
68.5
|
|
|
$
|
39.4
|
Reconciliation of net income to cash flows provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
18.4
|
|
|
|
17.6
|
Amortization
|
|
|
|
|
15.1
|
|
|
|
10.7
|
Non-cash compensation, net of tax benefit
|
|
|
|
|
2.8
|
|
|
|
2.5
|
Loss on sale of property and equipment, net
|
|
|
|
|
0.1
|
|
|
|
-
|
Deferred taxes
|
|
|
|
|
0.6
|
|
|
|
(0.8)
|
Foreign exchange gain
|
|
|
|
|
-
|
|
|
|
(0.2)
|
Changes in assets and liabilities, excluding effects of acquisitions
and divestitures:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
(1.3)
|
|
|
|
(12.2)
|
Inventories
|
|
|
|
|
(20.0)
|
|
|
|
(21.4)
|
Prepaid expenses and other assets
|
|
|
|
|
6.2
|
|
|
|
8.2
|
Accounts payable
|
|
|
|
|
27.1
|
|
|
|
33.1
|
Accrued expenses and deferred revenues
|
|
|
|
|
(12.0)
|
|
|
|
(26.5)
|
Long-term liabilities
|
|
|
|
|
3.0
|
|
|
|
0.7
|
Other operating activities
|
|
|
|
|
0.5
|
|
|
|
(1.6)
|
Net cash provided by operating activities
|
|
|
|
|
109.0
|
|
|
|
49.5
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(18.7)
|
|
|
|
(19.1)
|
Acquisitions, net of cash
|
|
|
|
|
(8.1)
|
|
|
|
-
|
Proceeds from sale of property and equipment
|
|
|
|
|
-
|
|
|
|
0.1
|
Net cash used in investing activities
|
|
|
|
|
(26.8)
|
|
|
|
(19.0)
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
|
(19.5)
|
|
|
|
(16.7)
|
Proceeds from issuance of treasury shares and stock options
|
|
|
|
|
4.5
|
|
|
|
9.1
|
Repurchases of common stock
|
|
|
|
|
(28.5)
|
|
|
|
(8.8)
|
Net cash used in financing activities
|
|
|
|
|
(43.5)
|
|
|
|
(16.4)
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
|
|
1.1
|
|
|
|
(0.5)
|
Change in cash and cash equivalents
|
|
|
|
|
39.8
|
|
|
|
13.6
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
410.7
|
|
|
|
730.8
|
End of period
|
|
|
|
$
|
450.5
|
|
|
$
|
744.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
Unaudited Reconciliation of Reported Amounts to Pro Forma
Amounts
|
|
|
|
|
|
|
|
|
Adjustments to First Quarter 2015 Reported Amounts
|
|
|
|
|
|
|
|
|
The first quarter 2015 pro forma net sales, EBIT, and EBIT margin
of (1) Carlisle Companies and Finishing Brands combined and (2) the CFT
segment inclusive of Finishing Brands are provided in this
earnings release because management of the Company believes that
the pro forma financial information provides investors with
additional information regarding trends in the financial
performance of the Finishing Brands business in the periods
presented in the earnings release, particularly those related to
changes in net sales attributable to foreign exchange
fluctuations and changes in prices, and its impact on the EBIT
results of the Company as well as the CFT segment.
|
|
|
|
|
|
|
|
|
The information provided in the Unaudited Pro Forma Segment
Information reflects the net sales, EBIT, and EBIT margin of (1)
Carlisle Companies and Finishing Brands Combined and (2) the
CFT Segment on a pro forma basis under the requirements of US GAAP
in ASC 805. The Company will also disclose the Company's and
Finishing Brands' combined pro forma financial information in its
US GAAP financial statement footnotes under Item 1 of the
first quarter 2016 Form 10-Q.
|
|
|
|
|
|
|
|
|
The pro forma financial information presented below, as required
under ASC 805, assumes the acquisition of Finishing Brands was consummated
on January 1, 2014 and therefore net sales and EBIT of Finishing
Brands have been combined with those of the Company in the
periods prior to April 1, 2015, the date of the acquisition, and
have been adjusted under the ASC 805 requirements.
|
|
|
|
|
|
|
|
|
Accordingly, certain non-recurring costs associated with the
acquisition, primarily professional fees, have been removed from
the 2015 results and included in those of 2014. Also, the
periods from January 1, 2015 to March 31, 2015 include incremental
amortization and depreciation related to the measurement of
intangible assets and property, plant and equipment at fair value.
The pro forma financial information may not necessarily be
indicative of future results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
Carlisle Companies and Finishing Brands Combined Pro Forma Results
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Reported Carlisle Companies Net Sales
|
|
|
|
|
$
|
709.3
|
|
Historical Net Sales of Finishing Brands not included in CSL
historical Net Sales
|
|
|
|
|
|
61.2
|
|
Carlisle Companies and Finishing Brands Combined Pro Forma Net
Sales
|
|
|
|
|
$
|
770.5
|
|
|
|
|
|
|
|
|
|
Reported Carlisle Companies EBIT
|
|
|
|
|
$
|
66.4
|
|
Historical EBIT of Finishing Brands not included in CSL historical
EBIT
|
|
|
|
|
|
10.0
|
|
Increase in amortization expense related to technology-based
intangibles
|
|
|
|
|
|
(1.3)
|
|
Decrease in depreciation expense related to property, plant and
equipment
|
|
|
|
|
|
0.2
|
|
Increase in amortization expense related to customer-based
intangibles
|
|
|
|
|
|
(3.1)
|
|
Decrease/(increase) in acquisition-related costs
|
|
|
|
|
|
2.2
|
|
Carlisle Companies and Finishing Brands Combined Pro Forma EBIT
|
|
|
|
|
$
|
74.4
|
|
|
|
|
|
|
|
|
|
Reported Carlisle Companies EBIT Margin
|
|
|
|
|
|
9.4
|
%
|
Carlisle Companies and Finishing Brands Combined Pro Forma EBIT
Margin
|
|
|
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
CFT Segment Pro Forma Results
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Reported Segment Net Sales
|
|
|
|
|
$
|
-
|
|
Historical Net Sales of Finishing Brands not included in CSL
historical Net Sales
|
|
|
|
|
|
61.2
|
|
CFT Pro Forma Net Sales
|
|
|
|
|
$
|
61.2
|
|
|
|
|
|
|
|
|
|
Reported Segment EBIT
|
|
|
|
|
$
|
-
|
|
Historical EBIT of Finishing Brands not included in CSL historical
EBIT
|
|
|
|
|
|
10.0
|
|
Increase in amortization expense related to technology-based
intangibles
|
|
|
|
|
|
(1.3)
|
|
Decrease in depreciation expense related to property, plant and
equipment
|
|
|
|
|
|
0.2
|
|
Increase in amortization expense related to customer-based
intangibles
|
|
|
|
|
|
(3.1)
|
|
Decrease/(increase) in acquisition-related costs
|
|
|
|
|
|
2.2
|
|
CFT Segment Pro Forma EBIT
|
|
|
|
|
$
|
8.0
|
|
|
|
|
|
|
|
|
|
Reported CFT Segment EBIT Margin
|
|
|
|
|
|
-
|
%
|
CFT Segment Pro Forma EBIT Margin
|
|
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427005439/en/
Source: Carlisle Companies Incorporated