-
Fourth Quarter Reported Earnings per Share from Continuing
Operations of $1.17, including $0.15 per share of tax expense related
to the previously announced non-cash impairment charge
-
Full Year Reported Earnings per Share from Continuing Operations of
$3.83, including $2.03 per share of after-tax impairment charges
previously reported
-
Generated record full year operating cash flows of $531.2 million
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Carlisle Companies Incorporated (NYSE:CSL) reported record net sales of
$893.5 million for the fourth quarter of 2016, a 2.0% increase from
$876.2 million in the fourth quarter of 2015. Net sales from the
acquisitions of Micro-Coax, Inc. (Micro-Coax) and Star Aviation, Inc.
(Star Aviation) in the Carlisle Interconnect Technologies (CIT) segment,
and MS Oberflächentechnik AG (MS Powder) in the Carlisle Fluid
Technologies (CFT) segment, contributed a total of 2.0% to net sales in
the fourth 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 0.5%. Fluctuations from foreign exchange had a negative impact to
net sales of 0.5%.
Income from continuing operations in the fourth quarter 2016 declined 6%
to $76.5 million, compared with $81.7 million in the fourth quarter
2015, due to after-tax restructuring costs of $5.7 million recorded at
CIT related to growth opportunities and long-term cost competitiveness
improvements in the medical business, and unfavorable selling price and
raw material cost dynamics at CCM. Partially offsetting the
year-over-year decline were savings from the Carlisle Operating System
(COS) and higher net sales volume. The Company’s effective tax rate in
the fourth quarter 2016 was 29.6%, versus an effective rate of 30.3% in
the prior year. On a per share basis, income from continuing operations
in the fourth quarter 2016 decreased 6% to $1.17 per diluted share, from
$1.24 per diluted share in the prior year.
For the full year 2016, Carlisle reported record net sales from
continuing operations of $3.68 billion, a 4% increase from $3.54 billion
for the prior year. Net sales growth in 2016 reflected acquired growth
of 2.6% and organic net sales growth of 1.3%, partially offset by the
negative impact of foreign exchange of 0.3%. For the full year 2016,
Carlisle reported income from continuing operations of $250.8 million, a
22% decrease versus income of $319.6 million in 2015. On a per share
basis, income from continuing operations in 2016 decreased 21% to $3.83
per diluted share, from $4.82 per diluted share in the prior year.
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|
|
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|
|
|
|
|
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(Dollars in millions, except per share amounts)
|
|
|
|
Q4 2016(2)
|
|
Q4 2015
|
|
YTD 2016(1)
|
|
YTD 2015
|
|
Net Sales
|
|
|
|
$
|
893.5
|
|
|
$
|
876.2
|
|
$
|
3,675.4
|
|
|
$
|
3,543.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and income taxes (EBIT)
|
|
|
|
|
115.2
|
|
|
|
125.7
|
|
|
441.1
|
|
|
|
501.9
|
|
Adjusted EBIT
|
|
|
|
|
115.2
|
|
|
|
125.7
|
|
|
582.6
|
|
|
|
501.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
|
|
|
76.5
|
|
|
|
81.7
|
|
|
250.8
|
|
|
|
319.6
|
|
Adjusted income from continuing operations, net of tax
|
|
|
|
|
86.6
|
|
|
|
81.7
|
|
|
383.5
|
|
|
|
319.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
|
|
|
1.17
|
|
|
|
1.24
|
|
|
3.83
|
|
|
|
4.82
|
|
Adjusted diluted earnings per share from continuing operations
|
|
|
|
|
1.32
|
|
|
|
1.24
|
|
|
5.86
|
|
|
|
4.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Brake & Friction segment EBIT
|
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|
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(2.9
|
)
|
|
|
0.5
|
|
|
(135.7
|
)
|
|
|
17.3
|
|
Adjusted Carlisle Brake & Friction segment EBIT
|
|
|
|
|
(2.9
|
)
|
|
|
0.5
|
|
|
5.8
|
|
|
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
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(1)
|
|
Adjusted to exclude goodwill and intangible asset impairment charges
totaling $141.5 million pre-tax, $132.7 million after-tax or $2.03
per share for the YTD period. See related Non-GAAP Reconciliation in
the financial exhibits.
|
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(2)
|
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Adjusted to exclude the Q4 2016 income tax effect of the above
goodwill and intangible asset impairment charges of $10.1 million or
$0.15 per share. See related Non-GAAP Reconciliation in the
financial exhibits.
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All financial and percentage comparisons in the Company’s fourth 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
financial performance based on a comparison of three and twelve months
ended December 31, 2016 to 2015 selected financial results for Carlisle
and the CBF segment, adjusted to exclude the pre-tax impairment charges
recorded in the third quarter of 2016 and related tax impacts recorded
in the fourth quarter 2016. For a reconciliation to the reported GAAP
amounts, refer to the financial exhibits.
Comment
D. Christian “Chris” Koch, President and Chief Executive Officer, said,
“The outstanding 2016 results are a direct reflection of the effort,
execution and daily focus on continuous improvement by Carlisle’s more
than 13,000 employees across the globe. We achieved record net sales and
record net cash provided by operating activities. We successfully
executed on our commitment to deploy capital in support of our growth
strategy as further evidenced by the completion of three acquisitions in
2016 – MS Powder, Micro-Coax and Star Aviation. In January 2017, we
announced the San Jamar acquisition in the FoodService Products segment
and the European acquisition of Arbo in the Construction Materials
segment. The Carlisle Operating System (COS) continues to drive
operational excellence company-wide, and significantly contributed to
our 2016 EBIT performance.
“Our businesses generated $531.2 million in cash from operations,
setting another record. Our cash was used to make investments in
acquisitions and capital expenditures totaling $294.3 million. In
addition, we returned $159.5 million to shareholders in dividends and
share repurchases. We ended the year with $385.3 million in cash on
hand, and used approximately $227 million of this cash to acquire San
Jamar and Arbo in January of this year. We have $600 million of
availability on our credit facility, and with our strong cash
generation, we expect to have ample liquidity to make further
investments in our businesses and continue to return capital to our
shareholders.
“Carlisle Construction Materials (CCM) achieved record net sales
of $2.1 billion, a 2.5% increase over the prior year, and record EBIT
margin of 21.0% in 2016. Sales volume growth was led by high single
digit growth experienced in U.S. non-residential commercial roofing
markets, offset by weakness in Canada and other select international
markets. CCM’s record operating performance for the year was
outstanding, with EBIT growing an impressive 23% in 2016 and EBIT margin
increasing 350 basis points. Higher net sales volume, favorable raw
material cost dynamics, a relatively stable selling price environment
and COS savings were the key contributors to the record EBIT performance
in 2016.
“On January 31st we announced the acquisition of Arbo
Holdings Limited (Arbo), a leading provider of sealants, coatings and
membrane systems based in Belper, England. Arbo complements our leading
position in EPDM (rubber) roofing systems in Europe and adds new
products to our weatherproofing offerings used to improve the thermal
performance of buildings. We are pleased to welcome the Arbo team to
Carlisle.
“The outlook in commercial construction in the U.S. remains positive. In
2017, we expect CCM to achieve mid-single digit sales growth, and
continue to operate with the same commitment to maintain price
discipline and leadership in their markets.
“Carlisle Interconnect Technologies (CIT) also had an excellent
year in 2016, achieving record net sales of $834.6 million, a 6.4%
increase over the prior year, reflecting acquisition growth of 3.4%, and
organic net sales growth of 3.2%. The organic sales growth was supported
by mid-single digit growth in commercial aerospace markets and high
single digit growth in medical markets. CIT’s EBIT grew 2.0% to a record
$144.4 million. CIT’s EBIT margin declined 70 basis points to 17.3%,
primarily due to the $7.6 million pre-tax restructuring costs related to
facility rationalization efforts focused on improving operational
efficiencies in the medical business. We expect to generate substantial
savings beginning in 2018 from these operational efficiency improvement
efforts.
“The integrations of the Micro-Coax and Star Aviation acquisitions
continue to progress very well. Micro-Coax expands our high performance
radio frequency (RF)/microwave applications, while Star Aviation
positions CIT as the vertically integrated leader in SatCom adapter
plates and wiring provisions. Synergies identified through deployment of
COS at both Micro-Coax and Star Aviation have exceeded initial
expectations. Micro-Coax sales are primarily in the military/defense,
space, and test and measurement markets. Star Aviation sales are
primarily in the commercial aerospace market.
“Of note, CIT recently received recognition from Airbus as their 2016
Electrics Supplier of the Year. This significant achievement and
recognition by a key customer is a direct result of CIT’s drive for
continuous improvement and commitment to exceeding customer
expectations. We are extremely proud of the CIT team.
“Our overall outlook for CIT in 2017 is for net sales growth in the high
single digits with growth expected in commercial aerospace, medical,
military/defense and test and measurement markets.
“Carlisle FoodService Products (CFS) achieved record EBIT of
$31.5 million on net sales of $250.2 million, leading to a record EBIT
margin of 12.6%. Net sales grew 3.1%, EBIT grew 15% and EBIT margin
increased 130 basis points versus the prior year demonstrating excellent
earnings leverage. CFS recorded its sixth consecutive quarter of a
year-over-year sales increase in the fourth quarter. We are extremely
pleased with the record operating performance CFS accomplished this past
year.
“As previously announced on January 9th, we acquired San
Jamar, Inc. (San Jamar), a leading provider of universal dispensing
systems and food safety products for foodservice and hygiene
applications. The acquisition brings to CFS excellent brand recognition,
well-entrenched sales channels, and leading positions in several
hygienic, food management, and safety product categories. San Jamar
offers CFS innovative new products, opportunities to expand Carlisle’s
presence in San Jamar’s complementary sales channels and a history of
profitable growth. In addition, Carlisle can provide new outlets for San
Jamar products and contribute to San Jamar’s continuous improvement
through the Carlisle Operating System.
“CFS had an outstanding year and continues to remain focused on the
execution of its strategies of operational excellence and sales growth.
We expect CFS to achieve low single digit organic sales growth for the
full year 2017.
“Carlisle Fluid Technologies (CFT) contributed $269.4 million in
total net sales in 2016 and $33.1 million in EBIT. 2016 EBIT margin at
CFT was 12.3%, reflecting ongoing investment to position the business
for future growth and margin improvement. We will continue to invest in
CFT’s initiatives to drive organic sales growth, new product
development, vertical integration, footprint rationalization, and
continued implementation of COS throughout 2017. Our goal is that these
investments will begin to provide best-in-class operating performance
and results in 2018. CFT also executed on their product line expansion
strategy through the acquisition of the MS Powder business.
The outlook across CFT’s largest global end markets is positive as we
enter 2017, and our expectations for growth are in the mid-single digit
percent range.
“Carlisle Brake and Friction (CBF) net sales declined 13% in 2016
to $268.6 million as double-digit percent declines in key end markets
continued throughout the year, a trend that began in 2013. As a result
of the continued declines in commodities markets and recent lowered
expectations for a near-term recovery in the global off-highway
equipment market, we recorded a non-cash pre-tax goodwill and intangible
asset impairment charge of $141.5 million in the third quarter of 2016.
Excluding the impact of the non-cash impairment charge, CBF’s adjusted
EBIT declined 66% to $5.8 million in 2016 and adjusted EBIT margin
declined 340 basis points to 2.2%. CBF contributed positive free cash
flow for the year.
“Throughout the prolonged downturn, CBF has aggressively addressed its
challenging markets by realigning its cost structure. In 2017, we will
take further cost realignment actions by closing the Tulsa, OK
manufacturing site and relocating those operations to our existing site
in Medina, OH. CBF will also continue focusing on new sources of
revenue, driving operational efficiency improvements throughout its
factories and contributing positive cash flow.
“In 2017, we do not anticipate a significant recovery in key end
markets, and expect a slight sales decline for the year.
“COS, the Carlisle Operating System based on lean enterprise and
six sigma principles and the cornerstone of Carlisle’s culture of
operational excellence, continued to drive improvements throughout the
organization in 2016. Savings from COS exceeded expectations, and were a
significant contributor to our EBIT performance. The COS philosophy and
framework has been well received at MS Powder, Micro-Coax, Star Aviation
and San Jamar, with improvements already experienced at the three
acquisitions that closed in 2016. As COS evolves and continues to gain
momentum within all our operating units, new improvement opportunities
will present themselves, and COS is expected to increase its
contribution to our earnings performance in 2017.”
Koch concluded by stating, “We are extremely pleased with the
record-setting performance at Carlisle in 2016. As we begin 2017, our 100th
anniversary year, the key operating philosophies in place for many years
at Carlisle will continue to drive increased value to Carlisle’s
shareholders. For 2017, we expect total net sales growth to be in the
high single digit percent range. We expect capital expenditures will be
approximately $125 to $150 million with new investments identified for
expansion at CCM, CIT and CFT, and the additional cost reduction
improvements at CBF related to their footprint rationalization efforts.
We plan to actively pursue strategic acquisitions, continue our history
of dividends and share repurchases, and expect 2017 will be another year
of record performance.
Cash Flow
Cash flow provided from operations of $531.2 million for the year ended
December 31, 2016 was $2.0 million higher than cash provided of $529.2
million for the prior year primarily due to higher net income excluding
the goodwill impairment charge offset by greater use of cash for working
capital in 2016 versus the prior period. 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) increased to 18.3%, as
compared to 18.2% 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 $422.4 million in 2016, a decrease of $34.7 million
versus the prior year. The decrease in free cash flow was primarily
attributable to higher capital expenditures in 2016 versus the prior
year.
Net cash used in investing activities of $293.4 million for the year
ended December 31, 2016 included $185.5 million used for the
acquisitions of MS Powder, Micro-Coax and Star Aviation, net of cash
acquired.
In 2016, the Company repurchased 835,646 shares under our share
repurchase program. The Company increased its annual dividend paid to
shareholders by 18% to $1.30 per share, our 40th year of consecutive
dividend increases. As of December 31, 2016, we had $385.3 million cash
on hand and $600 million of availability under our revolving credit
facility.
Conference Call and Webcast
The Company will discuss fourth 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 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 $3.7 billion
in net sales in 2016, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
|
Unaudited Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
For the Years Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
(in millions except share and per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
893.5
|
|
|
$
|
876.2
|
|
|
$
|
3,675.4
|
|
|
$
|
3,543.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
626.4
|
|
|
|
623.4
|
|
|
|
2,518.1
|
|
|
|
2,536.5
|
|
Selling and administrative expenses
|
|
|
140.8
|
|
|
|
116.5
|
|
|
|
532.0
|
|
|
|
461.9
|
|
Research and development expenses
|
|
|
12.5
|
|
|
|
11.8
|
|
|
|
48.1
|
|
|
|
42.8
|
|
Impairment charges
|
|
|
-
|
|
|
|
-
|
|
|
|
141.5
|
|
|
|
-
|
|
Other (income) expense, net
|
|
|
(1.4
|
)
|
|
|
(1.2
|
)
|
|
|
(5.4
|
)
|
|
|
0.1
|
|
Earnings before interest and income taxes
|
|
|
115.2
|
|
|
|
125.7
|
|
|
|
441.1
|
|
|
|
501.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
6.5
|
|
|
|
8.4
|
|
|
|
30.6
|
|
|
|
34.0
|
|
Earnings before income taxes from continuing operations
|
|
|
108.7
|
|
|
|
117.3
|
|
|
|
410.5
|
|
|
|
467.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
32.2
|
|
|
|
35.6
|
|
|
|
159.7
|
|
|
|
148.3
|
|
Income from continuing operations
|
|
|
76.5
|
|
|
|
81.7
|
|
|
|
250.8
|
|
|
|
319.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
|
(0.4
|
)
|
|
|
0.1
|
|
|
|
(1.1
|
)
|
|
|
0.1
|
|
Income tax benefit
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
(0.4
|
)
|
|
|
-
|
|
(Loss) income from discontinued operations
|
|
|
(0.3
|
)
|
|
|
0.1
|
|
|
|
(0.7
|
)
|
|
|
0.1
|
|
Net income
|
|
$
|
76.2
|
|
|
$
|
81.8
|
|
|
$
|
250.1
|
|
|
$
|
319.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common shares(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.18
|
|
|
$
|
1.25
|
|
|
$
|
3.87
|
|
|
$
|
4.89
|
|
Loss from discontinued operations
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
Basic earnings per share
|
|
$
|
1.17
|
|
|
$
|
1.25
|
|
|
$
|
3.86
|
|
|
$
|
4.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shares(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.17
|
|
|
$
|
1.24
|
|
|
$
|
3.83
|
|
|
$
|
4.82
|
|
Loss from discontinued operations
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
Diluted earnings per share
|
|
$
|
1.16
|
|
|
$
|
1.24
|
|
|
$
|
3.82
|
|
|
$
|
4.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
64,285
|
|
|
|
64,523
|
|
|
|
64,226
|
|
|
|
64,844
|
|
Diluted
|
|
|
64,873
|
|
|
|
65,356
|
|
|
|
64,883
|
|
|
|
65,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and paid
|
|
$
|
22.7
|
|
|
$
|
19.6
|
|
|
$
|
84.5
|
|
|
$
|
72.3
|
|
Dividends declared and paid per share
|
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
1.30
|
|
|
$
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Basic and diluted EPS calculated based on "two-class" method
of computing earnings per share using the following income
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
75.8
|
|
|
$
|
81.1
|
|
|
$
|
248.6
|
|
|
$
|
317.0
|
|
Net income
|
|
$
|
75.6
|
|
|
$
|
81.2
|
|
|
$
|
248.0
|
|
|
$
|
317.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
|
Unaudited Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Increase
|
|
For the Years Ended
|
|
Increase
|
|
|
|
|
|
December 31,
|
|
(Decrease)
|
|
December 31,
|
|
(Decrease)
|
|
(in millions, except percentages)
|
|
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
$
|
488.2
|
|
|
$
|
483.6
|
|
|
$
|
4.6
|
|
|
1.0
|
%
|
|
$
|
2,052.6
|
|
|
$
|
2,002.6
|
|
|
$
|
50.0
|
|
|
2.5
|
%
|
|
Carlisle Interconnect Technologies
|
|
|
|
|
210.3
|
|
|
|
189.6
|
|
|
|
20.7
|
|
|
10.9
|
|
|
|
834.6
|
|
|
|
784.6
|
|
|
|
50.0
|
|
|
6.4
|
|
|
Carlisle Fluid Technologies
|
|
|
|
|
71.0
|
|
|
|
73.6
|
|
|
|
(2.6
|
)
|
|
(3.5
|
)
|
|
|
269.4
|
|
|
|
203.2
|
|
|
|
66.2
|
|
|
32.6
|
|
|
Carlisle Brake & Friction
|
|
|
|
|
60.7
|
|
|
|
68.1
|
|
|
|
(7.4
|
)
|
|
(10.9
|
)
|
|
|
268.6
|
|
|
|
310.2
|
|
|
|
(41.6
|
)
|
|
(13.4
|
)
|
|
Carlisle FoodService Products
|
|
|
|
|
63.3
|
|
|
|
61.3
|
|
|
|
2.0
|
|
|
3.3
|
|
|
|
250.2
|
|
|
|
242.6
|
|
|
|
7.6
|
|
|
3.1
|
|
|
Total
|
|
|
|
$
|
893.5
|
|
|
$
|
876.2
|
|
|
$
|
17.3
|
|
|
2.0
|
|
|
$
|
3,675.4
|
|
|
$
|
3,543.2
|
|
|
$
|
132.2
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
$
|
93.1
|
|
|
$
|
86.8
|
|
|
$
|
6.3
|
|
|
7.3
|
%
|
|
$
|
430.5
|
|
|
$
|
351.1
|
|
|
$
|
79.4
|
|
|
22.6
|
%
|
|
Carlisle Interconnect Technologies
|
|
|
|
|
26.0
|
|
|
|
29.8
|
|
|
|
(3.8
|
)
|
|
(12.8
|
)
|
|
|
144.4
|
|
|
|
141.6
|
|
|
|
2.8
|
|
|
2.0
|
|
|
Carlisle Fluid Technologies
|
|
|
|
|
9.4
|
|
|
|
11.7
|
|
|
|
(2.3
|
)
|
|
(19.7
|
)
|
|
|
33.1
|
|
|
|
20.8
|
|
|
|
12.3
|
|
|
59.1
|
|
|
Carlisle Brake & Friction
|
|
|
|
|
(2.9
|
)
|
|
|
0.5
|
|
|
|
(3.4
|
)
|
|
(680.0
|
)
|
|
|
(135.7
|
)(1)
|
|
|
17.3
|
|
|
|
(153.0
|
)
|
|
(884.4
|
)
|
|
Carlisle FoodService Products
|
|
|
|
|
7.2
|
|
|
|
7.0
|
|
|
|
0.2
|
|
|
2.9
|
|
|
|
31.5
|
|
|
|
27.3
|
|
|
|
4.2
|
|
|
15.4
|
|
|
Corporate
|
|
|
|
|
(17.6
|
)
|
|
|
(10.1
|
)
|
|
|
(7.5
|
)
|
|
(74.3
|
)
|
|
|
(62.7
|
)
|
|
|
(56.2
|
)
|
|
|
(6.5
|
)
|
|
(11.6
|
)
|
|
Total
|
|
|
|
$
|
115.2
|
|
|
$
|
125.7
|
|
|
$
|
(10.5
|
)
|
|
(8.4
|
)
|
|
$
|
441.1
|
|
|
$
|
501.9
|
|
|
$
|
(60.8
|
)
|
|
(12.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Construction Materials
|
|
|
|
|
19.1
|
%
|
|
|
17.9
|
%
|
|
|
|
|
|
|
|
21.0
|
%
|
|
|
|
17.5
|
%
|
|
|
|
|
|
|
Carlisle Interconnect Technologies
|
|
|
|
|
12.4
|
|
|
|
15.7
|
|
|
|
|
|
|
|
|
17.3
|
|
|
|
18.0
|
|
|
|
|
|
|
|
Carlisle Fluid Technologies
|
|
|
|
|
13.2
|
|
|
|
15.9
|
|
|
|
|
|
|
|
|
12.3
|
|
|
|
10.2
|
|
|
|
|
|
|
|
Carlisle Brake & Friction
|
|
|
|
|
(4.8
|
)
|
|
|
0.7
|
|
|
|
|
|
|
|
|
(50.5
|
)
|
|
|
5.6
|
|
|
|
|
|
|
|
Carlisle FoodService Products
|
|
|
|
|
11.4
|
|
|
|
11.4
|
|
|
|
|
|
|
|
|
12.6
|
|
|
|
11.3
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
12.9
|
|
|
|
14.3
|
|
|
|
|
|
|
|
|
12.0
|
|
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes goodwill and intangible asset impairment charges totaling
$141.5 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
|
GAAP to Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 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 amounts)
|
|
|
|
EBIT
|
|
Margin
|
|
|
Impact
|
|
Operations
|
|
Cont. Ops.
|
|
EBIT
|
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
$
|
115.2
|
|
12.9
|
%
|
|
$
|
32.2
|
|
|
$
|
76.5
|
|
$
|
1.17
|
|
$
|
(2.9
|
)
|
|
(4.8
|
)%
|
|
Impairment charges
|
|
|
|
|
-
|
|
-
|
|
|
|
(10.1
|
)(1)
|
|
|
10.1
|
|
|
0.15
|
|
|
-
|
|
|
-
|
|
|
Excluding goodwill and intangible Impairments
|
|
|
|
$
|
115.2
|
|
12.9
|
%
|
|
$
|
22.1
|
|
|
$
|
86.6
|
|
$
|
1.32
|
|
$
|
(2.9
|
)
|
|
(4.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 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 amounts)
|
|
|
|
EBIT
|
|
Margin
|
|
|
Impact
|
|
Operations
|
|
Cont. Ops.
|
|
EBIT
|
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
$
|
441.1
|
|
12.0
|
%
|
|
$
|
159.7
|
|
|
$
|
250.8
|
|
$
|
3.83
|
|
$
|
(135.7
|
)
|
|
(50.5
|
)%
|
|
Impairment charges
|
|
|
|
|
141.5
|
|
3.9
|
|
|
|
8.8
|
(1)
|
|
|
132.7
|
|
|
2.03
|
|
|
141.5
|
|
|
52.7
|
|
|
Excluding goodwill and intangible Impairments
|
|
|
|
$
|
582.6
|
|
15.9
|
%
|
|
$
|
168.5
|
|
|
$
|
383.5
|
|
$
|
5.86
|
|
$
|
5.8
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
|
(1)
|
|
The reconciling item related to income tax expense for the full year
2016 reflects the tax benefit of the impairment charges, with the
fourth quarter reconciling item reflecting the difference between
the full year tax benefit of $8.8 million and the first nine months
of $18.9 million, resulting in tax expense of $10.1 million in the
fourth quarter of 2016.
|
|
|
|
|
This selected Non-GAAP financial information for the fourth quarter and
full year 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
(in millions except share and per share amounts)
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
385.3
|
|
|
$
|
410.7
|
|
|
Receivables, net
|
|
|
|
|
511.6
|
|
|
|
502.5
|
|
|
Inventories
|
|
|
|
|
377.0
|
|
|
|
356.0
|
|
|
Prepaid expenses
|
|
|
|
|
24.3
|
|
|
|
18.8
|
|
|
Other current assets
|
|
|
|
|
57.0
|
|
|
|
31.5
|
|
|
Total current assets
|
|
|
|
|
1,355.2
|
|
|
|
1,319.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
|
|
|
632.2
|
|
|
|
585.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
Goodwill, net
|
|
|
|
|
1,081.2
|
|
|
|
1,134.4
|
|
|
Other intangible assets, net
|
|
|
|
|
872.2
|
|
|
|
887.8
|
|
|
Other long-term assets
|
|
|
|
|
25.0
|
|
|
|
23.4
|
|
|
Total other assets
|
|
|
|
|
1,978.4
|
|
|
|
2,045.6
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
|
$
|
3,965.8
|
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term debt, including current maturities
|
|
|
|
$
|
-
|
|
|
$
|
149.8
|
|
|
Accounts payable
|
|
|
|
|
243.6
|
|
|
|
212.6
|
|
|
Accrued expenses
|
|
|
|
|
246.7
|
|
|
|
219.4
|
|
|
Deferred revenue
|
|
|
|
|
23.2
|
|
|
|
24.0
|
|
|
Total current liabilities
|
|
|
|
|
513.5
|
|
|
|
605.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
596.4
|
|
|
|
595.6
|
|
|
Deferred revenue
|
|
|
|
|
172.0
|
|
|
|
159.7
|
|
|
Other long-term liabilities
|
|
|
|
|
217.0
|
|
|
|
242.4
|
|
|
Total long-term liabilities
|
|
|
|
|
985.4
|
|
|
|
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 64,257,182 and 64,051,600
shares, respectively)
|
|
|
|
|
78.7
|
|
|
|
78.7
|
|
|
Additional paid-in capital
|
|
|
|
|
335.3
|
|
|
|
293.4
|
|
|
Deferred compensation equity
|
|
|
|
|
10.3
|
|
|
|
8.0
|
|
|
Treasury shares, at cost (14,178,801 and 14,383,241 shares,
respectively)
|
|
|
|
|
(382.6
|
)
|
|
|
(327.4
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(122.2
|
)
|
|
|
(87.1
|
)
|
|
Retained earnings
|
|
|
|
|
2,547.4
|
|
|
|
2,381.8
|
|
|
Total shareholders' equity
|
|
|
|
|
2,466.9
|
|
|
|
2,347.4
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
$
|
3,965.8
|
|
|
$
|
3,950.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
|
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended
|
|
(in millions)
|
|
|
|
2016
|
|
2015
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
250.1
|
|
|
$
|
319.7
|
|
|
Reconciliation of net income to cash flows provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
137.8
|
|
|
|
129.3
|
|
|
Impairment charges
|
|
|
|
|
141.5
|
|
|
|
-
|
|
|
Stock-based compensation, net of tax benefit
|
|
|
|
|
(2.6
|
)
|
|
|
2.7
|
|
|
Deferred taxes
|
|
|
|
|
(25.0
|
)
|
|
|
(15.8
|
)
|
|
Other operating activities, net
|
|
|
|
|
(6.0
|
)
|
|
|
(1.3
|
)
|
|
Changes in assets and liabilities, excluding effects of acquisitions:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
0.3
|
|
|
|
(11.8
|
)
|
|
Inventories
|
|
|
|
|
(12.2
|
)
|
|
|
23.0
|
|
|
Prepaid expenses and other assets
|
|
|
|
|
(9.2
|
)
|
|
|
6.7
|
|
|
Accounts payable
|
|
|
|
|
21.6
|
|
|
|
(2.9
|
)
|
|
Accrued expenses and deferred revenues
|
|
|
|
|
34.8
|
|
|
|
78.4
|
|
|
Other long-term liabilities
|
|
|
|
|
0.1
|
|
|
|
1.2
|
|
|
Net cash provided by operating activities
|
|
|
|
|
531.2
|
|
|
|
529.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(108.8
|
)
|
|
|
(72.1
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
|
(185.5
|
)
|
|
|
(598.9
|
)
|
|
Other investing activities, net
|
|
|
|
|
0.9
|
|
|
|
0.2
|
|
|
Net cash used in investing activities
|
|
|
|
|
(293.4
|
)
|
|
|
(670.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
Repayments of borrowings
|
|
|
|
|
(150.0
|
)
|
|
|
(1.5
|
)
|
|
Dividends paid
|
|
|
|
|
(84.5
|
)
|
|
|
(72.3
|
)
|
|
Proceeds from exercise of stock options, net
|
|
|
|
|
48.4
|
|
|
|
39.4
|
|
|
Repurchases of common stock
|
|
|
|
|
(75.0
|
)
|
|
|
(137.2
|
)
|
|
Other financing activities, net
|
|
|
|
|
-
|
|
|
|
(1.4
|
)
|
|
Net cash used in financing activities
|
|
|
|
|
(261.1
|
)
|
|
|
(173.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
|
|
(2.1
|
)
|
|
|
(5.5
|
)
|
|
Change in cash and cash equivalents
|
|
|
|
|
(25.4
|
)
|
|
|
(320.1
|
)
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
410.7
|
|
|
|
730.8
|
|
|
End of period
|
|
|
|
$
|
385.3
|
|
|
$
|
410.7
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170209006175/en/
Source: Carlisle Companies Incorporated