Reports Record Third Quarter Earnings per Share from Continuing
Operations of $1.74 and Record EBIT Margin of 18.0%, Excluding Non-Cash
Impairment Charges at Carlisle Brake & Friction
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Carlisle Companies Incorporated (NYSE:CSL) reported net sales of $991.0
million for the third quarter of 2016, a 1.8% increase from $973.1
million in the third quarter of 2015. Net sales from the acquisitions of
Micro-Coax, Inc. (Micro-Coax), in the Carlisle Interconnect Technologies
(CIT) segment, and MS Oberflächentechnik AG (MS Powder), in the Carlisle
Fluid Technologies (CFT) segment, contributed a total of 1.0% to net
sales in the third quarter of 2016. Organic net sales (defined as net
sales excluding both sales from acquisitions within the last twelve
months and the impact of changes in foreign exchange rates versus the
U.S. dollar) grew 1.0%. Foreign exchange rate fluctuations had a
negative impact to net sales in the third quarter of 0.2%.
The reported loss from continuing operations in the third quarter of
2016 was $9.5 million, or $0.15 per diluted share. Included in the
reported amount were non-cash after-tax goodwill and intangible asset
impairment charges of $122.6 million within the Carlisle Brake &
Friction (CBF) segment, due to continued declines in commodities markets
and recent lowered expectations for a near-term recovery in the global
off-highway equipment market.
Adjusted income from continuing operations, excluding the impairment
charges, increased 9.2% to a third quarter record of $113.1 million,
compared with $103.6 million in the third quarter of 2015. Income growth
was driven by savings from the Carlisle Operating System (COS),
favorable selling price and raw material dynamics in the commercial
roofing market, and higher net sales volume. Excluding the impairment
charges, adjusted income, net of tax, from continuing operations on a
per share basis in the third quarter 2016 rose 12% to $1.74 per diluted
share, from $1.56 per diluted share in the prior year.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
Q3 2016
|
|
Q3 2015
|
|
Net Sales
|
|
|
|
$
|
991.0
|
|
$
|
973.1
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and income taxes (EBIT)
|
|
|
|
|
36.4
|
|
|
161.8
|
|
Adjusted EBIT (1)
|
|
|
|
|
177.9
|
|
|
161.8
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations, net of tax
|
|
|
|
|
(9.5)
|
|
|
103.6
|
|
Adjusted income from continuing operations, net of tax (1)
|
|
|
|
|
113.1
|
|
|
103.6
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share from continuing operations
|
|
|
|
|
(0.15)
|
|
|
1.56
|
|
Adjusted diluted earnings per share from continuing operations
(1)
|
|
|
|
|
1.74
|
|
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Brake & Friction segment EBIT
|
|
|
|
|
(141.3)
|
|
|
0.5
|
|
Adjusted Carlisle Brake & Friction segment EBIT (1)
|
|
|
|
|
0.2
|
|
|
0.5
|
|
_______________________
|
|
(1)
|
|
Adjusted to exclude goodwill and intangible asset impairment charges
totaling $141.5 million ($122.6 million after-tax or $1.89 per
share). See related Non-GAAP Reconciliation in the financial
exhibits.
|
|
|
|
|
All financial and percentage comparisons in the Company’s third-quarter
2016 reporting are made to the same quarter of the previous year, unless
otherwise stated. This press release also includes non-GAAP measures of
operational performance for the third quarter of 2016 and based on a
comparison of third quarter 2016 to 2015 selected financial results for
Carlisle and the CBF segment, adjusted to exclude the aforementioned
impairment charges. For a reconciliation to the reported GAAP amounts,
refer to the financial exhibits.
Comment
D. Christian “Chris” Koch, President and Chief Executive Officer, said,
“Carlisle continued its solid performance this year with strong
operating earnings growth and further investments connected to our core
strategies. Adjusted EBIT (earnings before interest and income taxes)
grew 10% in the quarter as we continue to realize significant leverage
from our operating efficiencies. COS continues to be the driver of
operational excellence throughout Carlisle and was a significant
contributor to margin results at all our segments. We achieved another
quarter of record EBIT margin on an adjusted basis, which increased 140
basis points over last year to 18.0%.
“We are very pleased with our record operating performance for the third
quarter. However, at our CBF segment, we recognized non-cash pre-tax
impairment charges of $141.5 million, reflecting further degradation in
the global off-highway equipment markets. These markets are now expected
to take longer to recover.
“Carlisle Construction Materials (CCM) net sales increased 1.4% in the
third quarter on mid-single digit growth in demand for commercial
roofing in the U.S., partially offset by lower international sales
particularly in Canada. Selling price in the commercial roofing market,
while lower than the prior year, was stable on a sequential basis. CCM
achieved EBIT growth of 14% and an EBIT margin increase of 250 basis
points to 22.8%, reflecting favorable raw material dynamics and a
relatively stable selling price environment, savings from operating
efficiencies through COS and higher net sales volume.
“CCM recently announced a 5% price increase on its polyiso insulation
applications to cover increased raw material costs, effective January 1,
2017, further reflecting our commitment to price leadership in the
marketplace. CCM remains on track to achieve record sales and earnings
results in 2016.
“CIT continued its impressive performance this year with net sales up
7.9% in the third quarter, reflecting 4.5% contribution from the
acquisition of Micro-Coax and 3.4% organic growth, driven by high single
digit growth in commercial aerospace, and 10% growth in medical
applications. Growth in the aerospace and medical markets reflected
higher demand, as well as gains from new product development and
vertical integration. CIT maintained an EBIT margin of 19.3% in the
quarter, despite incurring $1.2 million in plant startup expense and
$1.2 million in costs attributable to the Micro-Coax acquisition. We
continue to expect net sales growth at CIT for the full-year 2016 to be
in the high single digit percent range, including contribution from
acquisitions.
“We were pleased to add Star Aviation, Inc. (Star Aviation) to the CIT
business on October 3, 2016. Star Aviation designs and manufactures
satellite communications (SatCom) products, including adapter plates for
the aerospace satellite communications connectivity market. In
combination with CIT’s recently launched SatCom adapter plate solution,
the acquisition of Star Aviation positions CIT as a vertically
integrated leader in SatCom adapter plates and wiring provisions, and
increases CIT’s access to the growing line fit and retrofit sectors.
Star Aviation’s team of FAA designated engineering representatives will
contribute significantly to CIT’s new product development in the
commercial aerospace market. The leading position CIT has developed in
SatCom is expected to add significant cumulative new product revenue
over the next few years.
“The integration of the Micro-Coax acquisition at CIT, which expands our
high performance radio frequency (RF)/microwave applications, is also
progressing very well. With the Micro-Coax acquisition, we are expanding
our presence in another growing market – space connectivity. Synergies
identified through deployment of COS at Micro-Coax have exceeded initial
expectations.
“The strategic acquisitions made this year, of both Star Aviation and
Micro-Coax, are expected to provide further growth and EBIT accretion in
2017 and beyond, as benefits from participating in new high tech
aerospace markets and integration activities continue to be realized.
“CIT also continues to effectively execute on its strategy to expand its
medical platform, investing in new product development and capitalizing
on its vertical integration capabilities to increase business with
leading medical suppliers. As part of its growth strategy for the
medical market, CIT started production at our new manufacturing facility
in Dongguan, China. Production at this state-of-the-art facility will
ramp up over the next year to meet demand expectations in the medical
market.
“At CFT, net sales increased 1.6% in the third quarter reflecting the
acquisition of MS Powder and organic sales growth of approximately 1%.
Higher demand in China and the U.K. in the current quarter was offset by
a large systems order in Asia in last year’s third quarter. CFT’s EBIT
margin of 13.8% in the third quarter declined 110 basis points from the
prior year due to the ongoing integration activities centered on
investment in sales personnel, footprint rationalization, and vertical
integration. CFT remains focused on its key integration activities
through the remainder of 2016.
“Carlisle FoodService Products (CFS) recorded its fifth consecutive
quarter of year-over-year sales increase, with net sales growth of 1.4%
in the quarter. CFS’ EBIT grew 17% and its EBIT margin increased 190
basis points to a record 14.3%. CFS has done an excellent job over the
last several quarters executing on its multi-year improvement strategy,
including its successful use of COS and Lean/Sigma principles. CFS
continues to be a very reliable and profitable contributor to our
results, and the recent return to sales growth is a significant positive
trend. We expect CFS to achieve low single digit sales growth for the
full year 2016.
“CBF’s net sales declined 11% in the third quarter due to continued
weakness in off-highway equipment markets tied to lower demand for
commodities. As previously stated, pre-tax impairment charges of $141.5
million recognized in the quarter, resulted in an EBIT loss of $141.3
million reported at CBF in the quarter. Excluding the impairment
charges, CBF achieved positive EBIT of $0.2 million, reflecting little
EBIT degradation on a dollar basis, compared to prior year third quarter
EBIT of $0.5 million, despite the double digit sales decline. Throughout
this downturn, CBF has aggressively addressed its challenging markets by
realigning its cost structure. The CBF team has worked diligently to
weather this downturn and remains focused on new sources of revenue,
cost reduction, operational efficiency, and positive cash flow
generation. We remain committed to the long-term profitability and
success of this business.
“During the third quarter, on a consolidated basis, we invested $31.4
million in capital expenditures and returned $43.2 million in capital to
shareholders through dividends and share repurchases. We also received
authorization to repurchase an additional 4.1 million shares to support
our ongoing share repurchase program. We repaid $150 million for bonds
that matured during the quarter using cash generated by our operations.
We ended the third quarter with $355.4 million in cash and $600 million
of availability on our credit facility. Earlier this month, we used $82
million in cash for the acquisition of Star Aviation. Full year capital
expenditures will be approximately $110 million. With additional cash
generation expected from our businesses in the fourth quarter, we remain
committed to using our liquidity to pursue growth opportunities
organically and through acquisitions, and to return capital to
shareholders.”
Koch concluded by stating, “We are on track to deliver another record
year at Carlisle and continue to execute on our well established
strategies and goals we set out to achieve in 2016. Our expectations for
sales growth remain in the mid-single digit percent range. Exclusive of
the impairment at CBF, we expect significant earnings leverage for 2016.
We continue to focus on growth across our businesses, on driving
operational excellence through the Carlisle Operating System, and
increasing value for our shareholders.”
Cash Flow
Net cash provided by operating activities of $355.1 million for the
first nine months of 2016 was $2.2 million higher than cash provided of
$352.9 million for the prior year period, primarily due to higher net
sales volume. Free cash flow (defined as cash provided by operating
activities less capital expenditures) was $277.8 million for the first
nine months of 2016, a decrease of $26.4 million versus the prior year
amount of $304.2 million. The decrease in free cash flow was
attributable primarily to increased capital expenditures related to our
initiatives to optimize our existing assets during the first nine months
of 2016.
Net cash used in investing activities for the first nine months of 2016
includes $8.1 million in cash used to acquire MS Powder and $95.0
million in cash used to acquire Micro-Coax. During the first nine months
of 2016, we utilized $61.3 million in cash to repurchase shares under
our repurchase program.
Conference Call and Webcast
The Company will discuss third quarter 2016 results on a conference call
at 5:00 p.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 diversified global company with a
portfolio of businesses focused on the manufacture and distribution of
highly engineered products for both original equipment and aftermarket
channels. Carlisle’s markets include: commercial roofing, energy,
agriculture, mining, construction, aerospace, defense, foodservice,
healthcare, sanitary maintenance, transportation, industrial, protective
coating and auto refinishing. Leveraging the Carlisle Operating System
(COS) and an entrepreneurial spirit to drive continuous improvement,
Carlisle’s worldwide team of employees generated $3.5 billion in net
sales in 2015. Learn more about Carlisle at www.carlisle.com.
|
|
|
Carlisle Companies Incorporated
Unaudited Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(in millions except share and per share amounts)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
991.0
|
|
$
|
973.1
|
|
$
|
2,781.9
|
|
$
|
2,667.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
667.4
|
|
|
677.6
|
|
|
1,891.7
|
|
|
1,913.1
|
|
Selling and administrative expenses
|
|
|
|
135.6
|
|
|
121.7
|
|
|
391.2
|
|
|
345.4
|
|
Research and development expenses
|
|
|
|
12.3
|
|
|
11.3
|
|
|
35.6
|
|
|
31.0
|
|
Impairment charges
|
|
|
|
141.5
|
|
|
-
|
|
|
141.5
|
|
|
-
|
|
Other (income) expense, net
|
|
|
|
(2.2)
|
|
|
0.7
|
|
|
(4.0)
|
|
|
1.3
|
|
Earnings before interest and income taxes
|
|
|
|
36.4
|
|
|
161.8
|
|
|
325.9
|
|
|
376.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
7.5
|
|
|
8.7
|
|
|
24.1
|
|
|
25.6
|
|
Earnings before income taxes from continuing operations
|
|
|
|
28.9
|
|
|
153.1
|
|
|
301.8
|
|
|
350.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
38.4
|
|
|
49.5
|
|
|
127.5
|
|
|
112.7
|
|
(Loss) income from continuing operations
|
|
|
|
(9.5)
|
|
|
103.6
|
|
|
174.3
|
|
|
237.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
|
(0.6)
|
|
|
-
|
|
|
(0.7)
|
|
|
-
|
|
Income tax benefit
|
|
|
|
(0.3)
|
|
|
-
|
|
|
(0.3)
|
|
|
-
|
|
Loss from discontinued operations
|
|
|
|
(0.3)
|
|
|
-
|
|
|
(0.4)
|
|
|
-
|
|
Net (loss) income
|
|
|
$
|
(9.8)
|
|
$
|
103.6
|
|
$
|
173.9
|
|
$
|
237.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common shares(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
|
$
|
(0.15)
|
|
$
|
1.59
|
|
$
|
2.69
|
|
$
|
3.64
|
|
Loss from discontinued operations
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Basic (loss) earnings per share
|
|
|
$
|
(0.15)
|
|
$
|
1.59
|
|
$
|
2.69
|
|
$
|
3.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shares(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
|
$
|
(0.15)
|
|
$
|
1.56
|
|
$
|
2.66
|
|
$
|
3.58
|
|
Loss from discontinued operations
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Diluted (loss) earnings per share
|
|
|
$
|
(0.15)
|
|
$
|
1.56
|
|
$
|
2.66
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
64,353
|
|
|
64,970
|
|
|
64,206
|
|
|
64,952
|
|
Diluted
|
|
|
|
64,353
|
|
|
65,987
|
|
|
64,879
|
|
|
66,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and paid
|
|
|
$
|
22.8
|
|
$
|
19.6
|
|
$
|
61.8
|
|
$
|
52.7
|
|
Dividends declared and paid per share
|
|
|
$
|
0.35
|
|
$
|
0.30
|
|
$
|
0.95
|
|
$
|
0.80
|
|
_______________________
|
|
(1)
|
|
Basic and diluted EPS calculated based on "two-class" method of
computing earnings per share using the following income
attributable to common shareholders:
|
|
(Loss) income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(9.5)
|
|
|
|
|
|
$
|
103.1
|
|
|
|
|
|
$
|
172.8
|
|
|
|
|
|
$
|
236.3
|
|
Net (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(9.8)
|
|
|
|
|
|
$
|
103.1
|
|
|
|
|
|
$
|
172.4
|
|
|
|
|
|
$
|
236.3
|
|
|
|
Carlisle Companies Incorporated
Unaudited Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Increase
|
|
|
Nine Months Ended
|
|
Increase
|
|
|
|
|
|
September 30,
|
|
(Decrease)
|
|
|
September 30,
|
|
(Decrease)
|
|
|
(in millions, except percentages)
|
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
$
|
578.2
|
|
$
|
570.1
|
|
$
|
8.1
|
|
1.4
|
%
|
|
$
|
1,564.4
|
|
$
|
1,519.0
|
|
$
|
45.4
|
|
3.0
|
%
|
|
Carlisle Interconnect Technologies
|
|
|
|
218.2
|
|
|
202.3
|
|
|
15.9
|
|
7.9
|
|
|
|
624.3
|
|
|
595.0
|
|
|
29.3
|
|
4.9
|
|
|
Carlisle Fluid Technologies
|
|
|
|
69.0
|
|
|
67.9
|
|
|
1.1
|
|
1.6
|
|
|
|
198.4
|
|
|
129.6
|
|
|
68.8
|
|
53.1
|
|
|
Carlisle Brake & Friction
|
|
|
|
62.6
|
|
|
70.7
|
|
|
(8.1)
|
|
(11.5)
|
|
|
|
207.9
|
|
|
242.1
|
|
|
(34.2)
|
|
(14.1)
|
|
|
Carlisle FoodService Products
|
|
|
|
63.0
|
|
|
62.1
|
|
|
0.9
|
|
1.4
|
|
|
|
186.9
|
|
|
181.3
|
|
|
5.6
|
|
3.1
|
|
|
Total
|
|
|
$
|
991.0
|
|
$
|
973.1
|
|
$
|
17.9
|
|
1.8
|
|
|
$
|
2,781.9
|
|
$
|
2,667.0
|
|
$
|
114.9
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
$
|
132.0
|
|
$
|
115.5
|
|
$
|
16.5
|
|
14.3
|
%
|
|
$
|
337.4
|
|
$
|
264.3
|
|
$
|
73.1
|
|
27.7
|
%
|
|
Carlisle Interconnect Technologies
|
|
|
|
42.2
|
|
|
41.2
|
|
|
1.0
|
|
2.4
|
|
|
|
118.4
|
|
|
111.8
|
|
|
6.6
|
|
5.9
|
|
|
Carlisle Fluid Technologies
|
|
|
|
9.5
|
|
|
10.1
|
|
|
(0.6)
|
|
(5.9)
|
|
|
|
23.7
|
|
|
9.1
|
|
|
14.6
|
|
160.4
|
|
|
Carlisle Brake & Friction
|
|
|
|
(141.3)
|
|
|
0.5
|
|
|
(141.8)
|
|
n/a
|
|
|
|
(132.8)
|
|
|
16.8
|
|
|
(149.6)
|
|
(890.5)
|
|
|
Carlisle FoodService Products
|
|
|
|
9.0
|
|
|
7.7
|
|
|
1.3
|
|
16.9
|
|
|
|
24.3
|
|
|
20.3
|
|
|
4.0
|
|
19.7
|
|
|
Corporate
|
|
|
|
(15.0)
|
|
|
(13.2)
|
|
|
(1.8)
|
|
(13.6)
|
|
|
|
(45.1)
|
|
|
(46.1)
|
|
|
1.0
|
|
2.2
|
|
|
Total
|
|
|
$
|
36.4
|
|
$
|
161.8
|
|
$
|
(125.4)
|
|
(77.5)
|
|
|
$
|
325.9
|
|
$
|
376.2
|
|
$
|
(50.3)
|
|
(13.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
22.8
|
%
|
|
20.3
|
%
|
|
|
|
|
|
|
|
21.6
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
Carlisle Interconnect Technologies
|
|
|
|
19.3
|
|
|
20.4
|
|
|
|
|
|
|
|
|
19.0
|
|
|
18.8
|
|
|
|
|
|
|
|
Carlisle Fluid Technologies
|
|
|
|
13.8
|
|
|
14.9
|
|
|
|
|
|
|
|
|
11.9
|
|
|
7.0
|
|
|
|
|
|
|
|
Carlisle Brake & Friction
|
|
|
|
(225.7)
|
|
|
0.7
|
|
|
|
|
|
|
|
|
(63.9)
|
|
|
6.9
|
|
|
|
|
|
|
|
Carlisle FoodService Products
|
|
|
|
14.3
|
|
|
12.4
|
|
|
|
|
|
|
|
|
13.0
|
|
|
11.2
|
|
|
|
|
|
|
|
Total
|
|
|
|
3.7
|
|
|
16.6
|
|
|
|
|
|
|
|
|
11.7
|
|
|
14.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
GAAP to Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
Carlisle Companies Incorporated
|
|
Carlisle Brake & Friction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
Income from
|
|
Earnings
|
|
|
|
|
|
|
|
(in millions, except percentages
|
|
|
|
|
|
EBIT
|
|
Tax
|
|
Continuing
|
|
per Share from
|
|
|
|
|
EBIT
|
|
|
and per share info)
|
|
|
EBIT
|
|
Margin
|
|
Expense
|
|
Operations
|
|
Cont. Ops.
|
|
EBIT
|
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
$
|
36.4
|
|
3.7
|
%
|
$
|
38.4
|
|
$
|
(9.5)
|
|
$
|
(0.15)
|
|
$
|
(141.3)
|
|
(225.7)
|
%
|
|
Impairment charges
|
|
|
|
141.5
|
|
14.3
|
|
|
(18.9)
|
(1)
|
|
122.6
|
|
|
1.89
|
(2)
|
|
141.5
|
|
226.0
|
|
|
Excluding goodwill and intangible Impairments
|
|
|
$
|
177.9
|
|
18.0
|
%
|
$
|
57.3
|
|
$
|
113.1
|
|
$
|
1.74
|
(2)
|
$
|
0.2
|
|
0.3
|
%
|
|
_______________________
|
|
(1)
|
|
The reconciliation item of $18.9 million related to income tax
expense reflects the difference between the third quarter
anticipated full year tax rate of 42.5%, which includes the impact
of the impairment charges, and the tax rate excluding the impairment
charges of 33.2%. We expect the full year tax benefit of the
impairment to be $8.9 million.
|
|
(2)
|
|
Adjusted diluted earnings per share from continuing operations for
the third quarter of 2016 is calculated based on diluted average
shares outstanding of 64,353,000, which excludes performance awards
and stock options representing approximately 578,000 shares that
were excluded from the As Reported calculation as they were
anti-dilutive.
|
|
|
|
|
This selected Non-GAAP financial information for the third quarter of
2016 are presented to exclude the impairment charges at Carlisle Brake &
Friction. Management believes adjusted results more accurately portray
the ongoing operational performance and fundamentals of the underlying
business and present a more useful comparison between current results
and results in prior operating periods. Management also uses the
non-GAAP financial measures in making financial, operating and planning
decisions and in evaluating the Company’s performance.
|
|
|
Carlisle Companies Incorporated
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
(in millions except share and per share amounts)
|
|
|
2016
|
|
2015
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
355.4
|
|
$
|
410.7
|
|
Receivables, net (allowance of $5.1 and $4.7, respectively)
|
|
|
|
605.0
|
|
|
502.5
|
|
Inventories
|
|
|
|
385.8
|
|
|
356.0
|
|
Prepaid expenses and other current assets
|
|
|
|
53.5
|
|
|
50.3
|
|
Total current assets
|
|
|
|
1,399.7
|
|
|
1,319.5
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
|
|
623.6
|
|
|
585.8
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
Goodwill, net
|
|
|
|
1,046.5
|
|
|
1,134.4
|
|
Other intangible assets, net
|
|
|
|
870.5
|
|
|
887.8
|
|
Other long-term assets
|
|
|
|
23.0
|
|
|
23.4
|
|
Total other assets
|
|
|
|
1,940.0
|
|
|
2,045.6
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
$
|
3,963.3
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term debt, including current maturities
|
|
|
$
|
-
|
|
$
|
149.8
|
|
Accounts payable
|
|
|
|
264.9
|
|
|
212.6
|
|
Accrued expenses
|
|
|
|
234.8
|
|
|
219.4
|
|
Deferred revenue
|
|
|
|
23.9
|
|
|
24.0
|
|
Total current liabilities
|
|
|
|
523.6
|
|
|
605.8
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
596.2
|
|
|
595.6
|
|
Deferred revenue
|
|
|
|
167.2
|
|
|
159.7
|
|
Other long-term liabilities
|
|
|
|
229.4
|
|
|
242.4
|
|
Total long-term liabilities
|
|
|
|
992.8
|
|
|
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 shares;
issued 78,661,248 shares; outstanding 64,306,206 and 64,051,600
shares, respectively)
|
|
|
|
78.7
|
|
|
78.7
|
|
Additional paid-in capital
|
|
|
|
326.5
|
|
|
293.4
|
|
Deferred compensation equity
|
|
|
|
10.3
|
|
|
8.0
|
|
Treasury shares, at cost (14,129,777 and 14,383,241 shares,
respectively)
|
|
|
|
(370.8)
|
|
|
(327.4)
|
|
Accumulated other comprehensive loss
|
|
|
|
(91.7)
|
|
|
(87.1)
|
|
Retained earnings
|
|
|
|
2,493.9
|
|
|
2,381.8
|
|
Total shareholders' equity
|
|
|
|
2,446.9
|
|
|
2,347.4
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
3,963.3
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(in millions)
|
|
|
2016
|
|
2015
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
173.9
|
|
$
|
237.9
|
|
Reconciliation of net income to cash flows provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
102.0
|
|
|
95.4
|
|
Impairment charges
|
|
|
|
141.5
|
|
|
-
|
|
Non-cash compensation, net of tax benefit
|
|
|
|
(3.1)
|
|
|
1.0
|
|
Deferred taxes
|
|
|
|
(20.8)
|
|
|
2.3
|
|
Other operating activities, net
|
|
|
|
(0.8)
|
|
|
1.8
|
|
Changes in assets and liabilities, excluding effects of acquisitions
and divestitures:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
(93.5)
|
|
|
(108.3)
|
|
Inventories
|
|
|
|
(20.6)
|
|
|
(6.5)
|
|
Prepaid expenses and other assets
|
|
|
|
1.0
|
|
|
0.6
|
|
Accounts payable
|
|
|
|
43.3
|
|
|
49.4
|
|
Accrued expenses and deferred revenues
|
|
|
|
32.7
|
|
|
77.4
|
|
Other long-term liabilities
|
|
|
|
(0.5)
|
|
|
1.9
|
|
Net cash provided by operating activities
|
|
|
|
355.1
|
|
|
352.9
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(77.3)
|
|
|
(48.7)
|
|
Acquisitions, net of cash acquired
|
|
|
|
(103.1)
|
|
|
(598.9)
|
|
Other investing activities, net
|
|
|
|
0.8
|
|
|
0.1
|
|
Net cash used in investing activities
|
|
|
|
(179.6)
|
|
|
(647.5)
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Repayments of borrowings
|
|
|
|
(150.0)
|
|
|
(1.5)
|
|
Dividends paid
|
|
|
|
(61.8)
|
|
|
(52.7)
|
|
Proceeds from issuance of treasury shares and stock options
|
|
|
|
41.4
|
|
|
35.2
|
|
Repurchases of common stock
|
|
|
|
(61.3)
|
|
|
(57.9)
|
|
Other financing activities, net
|
|
|
|
-
|
|
|
(1.4)
|
|
Net cash used in financing activities
|
|
|
|
(231.7)
|
|
|
(78.3)
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
|
0.9
|
|
|
(3.5)
|
|
Change in cash and cash equivalents
|
|
|
|
(55.3)
|
|
|
(376.4)
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
410.7
|
|
|
730.8
|
|
End of period
|
|
|
$
|
355.4
|
|
$
|
354.4
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006636/en/
Source: Carlisle Companies Incorporated