-
Record Third Quarter Net Sales of $1,089.1 million
-
Third Quarter Reported Earnings per Share from Continuing
Operations of $1.37, including $0.25 of Restructuring, Facility
Rationalization and Acquisition Related Costs
-
Increasing Revenue Outlook for Full-Year 2017
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Carlisle Companies Incorporated (NYSE:CSL) reported record net sales of
$1,089.1 million for the third quarter ended September 30, 2017, a 9.9%
increase from $991.0 million in the third quarter of 2016. Acquired net
sales contributed a total of 5.3% in the quarter. Organic net sales grew
4.4% (organic net sales are 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). Foreign
exchange had a positive impact of 0.2%.
Adjusted diluted EPS declined primarily due to lower sales and margin in
the Carlisle Interconnect Technologies (CIT) segment, rising raw
material costs in the Carlisle Construction Materials (CCM) segment, and
higher Special Items related to acquisition costs, facility
rationalization and plant restructuring projects at CCM, CIT, Carlisle
Fluid Technologies (CFT) and the Carlisle Brake & Friction (CBF)
segments. Partially offsetting this decline were higher net sales volume
at CCM, acquired earnings at Carlisle FoodService Products (CFS), and
savings from the Carlisle Operating System (COS).
(in millions, except per share amounts)
|
Three Months Ended September 30,
|
|
2017
|
|
2016
|
Net Sales
|
$
|
1,089.1
|
|
|
$
|
991.0
|
|
Income from continuing operations, net of tax
|
$
|
86.4
|
|
|
$
|
(9.5
|
)
|
Adjusted income from continuing operations, net of tax (1)
|
$
|
86.4
|
|
|
$
|
113.1
|
|
Diluted EPS from continuing operations
|
$
|
1.37
|
|
|
$
|
(0.15
|
)
|
Adjusted diluted EPS from continuing operations (1)
|
$
|
1.37
|
|
|
$
|
1.74
|
|
Earnings before interest and income taxes (EBIT)
|
$
|
142.9
|
|
|
$
|
36.4
|
|
Adjusted earnings before interest and income tax (EBIT) (1)
|
$
|
142.9
|
|
|
$
|
177.9
|
|
Special Items After Tax Impact on EPS(2)
|
$
|
0.25
|
|
|
$
|
0.03
|
|
(1) Adjusted to exclude 2016 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.
|
(2) Special Items are items affecting comparability
that primarily include: acquisition related costs ($6.4 million in
2017 and $1.1 million in 2016, with $3.6 million acquisition
related costs in 2017 allocated to corporate), restructuring
($11.6 million in 2017 and $1.4 million in 2016), facility
rationalization ($2.1 million in 2017 and $1.3 million in 2016),
and gains from divestitures ($1.1 million in 2016). Tax effect is
based on the rate of the jurisdiction where the expense is
deductible or income is taxable.
|
|
All financial and percentage comparisons in the Company's third quarter
2017 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 based on a comparison of third quarter 2017 GAAP
amounts to 2016 selected financial results for Carlisle and the CBF
segment, with 2016 adjusted to exclude the previously announced
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,
“We are extremely pleased with our record third quarter sales
performance, which reflects the continued dedication and commitment of
our worldwide team of employees in executing our core strategies. Their
efforts resulted in above average organic growth, solid EBIT
performance, and advancement of our continuous improvement culture
throughout the company. Moreover, we continued to execute on our
previously announced restructuring and facility rationalization
initiatives, which we expect will contribute to Carlisle's profitable
future growth.
“Our third quarter results demonstrated solid progress against the
significant headwinds we have faced in 2017. Despite rising raw material
costs at CCM, continued market and technology challenges at CIT in their
commercial aerospace business, and the prolonged downturn in global
commodity markets at CBF, we achieved solid overall EBIT performance. We
are also pleased that core CIT results slightly exceeded our
expectations; CCM pricing continues to be relatively stable; and organic
growth initiatives at CBF have begun to pay off.
“As evidenced by our commitment to allocate almost $1 billion into four
acquisitions year-to-date, including the planned acquisition of Accella
Performance Materials ("Accella"), we continue to deploy capital in
pursuit of accretive M&A opportunities that are consistent with our
strategic plans. During the quarter, we paid $23.2 million in dividends,
and repurchased approximately $116.4 million of Carlisle shares,
bringing our total 2017 share repurchases to $266.4 million. In
furtherance of our stated objectives to optimize our capital structure,
we will continue to make investments in our businesses, return capital
to shareholders through consistent quarterly dividends and share
repurchases, and maintain flexibility with our balance sheet to support
continued growth through acquisitions."
Carlisle Construction Materials (CCM) achieved record net sales,
reflecting high single digit growth experienced in favorable U.S.
non-residential roofing markets. The year-over-year EBIT decline was
primarily due to rising raw material costs and acquisition related
costs, partially offset by higher net sales volume and COS savings.
On October 2nd we announced the planned $670.0 million
acquisition of Accella Performance Materials ("Accella"), a premier
specialty polyurethane growth platform with approximately $430.0 million
of annual net sales. The planned acquisition of Accella is part of our
well-established strategy of providing customers with high quality,
innovative solutions for building envelope applications. Upon
completion, the combined Accella and Carlisle team will bring together
significant engineering and industry expertise to create highly
engineered solutions for our customers. We expect the acquisition to
close by the end of October.
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Acquisition Effect
|
|
Price / Volume Effect
|
|
Exchange Rate Effect
|
|
|
2017
|
|
2016
|
|
Change %
|
Net sales
|
|
|
$
|
640.2
|
|
|
$
|
578.2
|
|
|
10.7
|
%
|
|
2.9
|
%
|
|
7.4
|
%
|
|
0.4
|
%
|
EBIT
|
|
|
$
|
124.2
|
|
|
$
|
132.0
|
|
|
(5.9
|
)%
|
|
|
|
|
|
|
EBIT margin
|
|
|
19.4
|
%
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
Special items
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Favorable conditions in the U.S. commercial roofing market are expected
to continue for the remainder of 2017. For full year 2017, we are
maintaining CCM’s outlook at high single digit net sales growth.
Carlisle Interconnect Technologies (CIT) net sales in the third
quarter slightly exceeded our expectations and EBIT improved
sequentially due to higher volumes and COS initiatives. Year-over-year
EBIT decline was primarily related to unfavorable mix, volume decline,
and higher facility rationalization and plant restructuring costs.
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Acquisition Effect
|
|
Price / Volume Effect
|
|
Exchange Rate Effect
|
|
|
2017
|
|
2016
|
|
Change %
|
Net sales
|
|
|
$
|
210.8
|
|
|
$
|
218.2
|
|
|
(3.4
|
)%
|
|
5.8
|
%
|
|
(9.2
|
)%
|
|
—
|
%
|
EBIT
|
|
|
$
|
25.7
|
|
|
$
|
42.2
|
|
|
(39.1
|
)%
|
|
|
|
|
|
|
EBIT margin
|
|
|
12.2
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
Special items
|
|
|
$
|
4.2
|
|
|
$
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We now expect a net sales decline of low to mid-single digits versus
prior year for CIT in 2017.
Carlisle FoodService Products (CFS) recorded its ninth
consecutive quarter of year-over-year organic sales growth. Net sales
and EBIT in the third quarter 2017 reflected growth related to the
January 2017 acquisition of San Jamar, which contributed $22.9 million
to net sales and $2.8 million to EBIT, including $3.0 million of
amortization expense.
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Acquisition Effect
|
|
Price / Volume Effect
|
|
Exchange Rate Effect
|
|
|
2017
|
|
2016
|
|
Change %
|
Net sales
|
|
|
$
|
86.7
|
|
|
$
|
63.0
|
|
|
37.6
|
%
|
|
36.4
|
%
|
|
1.2
|
%
|
|
—
|
%
|
EBIT
|
|
|
$
|
11.6
|
|
|
$
|
9.0
|
|
|
28.9
|
%
|
|
|
|
|
|
|
EBIT margin
|
|
|
13.4
|
%
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We continue to expect CFS to achieve 2017 full year net sales growth of
approximately 40%, inclusive of San Jamar.
Carlisle Fluid Technologies (CFT) net sales in the third quarter
of 2017 reflected higher systems sales volumes in the Americas and
higher standard product sales in EMEA and Asia Pacific within the
Automotive Refinish and General Industrial markets. Partially offsetting
the Americas performance was lower systems sales in Asia Pacific.
Accelerated restructuring and facility rationalization costs, and
continuation of investments to position the business for future growth
and margin improvement, contributed to EBIT decline and will continue in
the fourth quarter.
On October 3rd, we announced the appointment of Shelley Bausch as
President of Carlisle Fluid Technologies. Shelley has demonstrated
effective leadership throughout her career and is an excellent addition
to the CFT team as we complete our integration efforts and enter the
growth phase for this business. We expect Shelley and the CFT team to
complete footprint consolidation efforts in the fourth quarter and move
to placing a significant amount of effort on new product development,
expansion into core adjacencies, and accelerate profitable sales growth.
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Acquisition Effect
|
|
Price / Volume Effect
|
|
Exchange Rate Effect
|
|
|
2017
|
|
2016
|
|
Change %
|
Net sales
|
|
|
$
|
70.9
|
|
|
$
|
69.0
|
|
|
2.8
|
%
|
|
—
|
%
|
|
3.8
|
%
|
|
(1.0
|
)%
|
EBIT
|
|
|
$
|
0.1
|
|
|
$
|
9.5
|
|
|
(98.9
|
)%
|
|
|
|
|
|
|
EBIT margin
|
|
|
0.1
|
%
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
Special items
|
|
|
$
|
8.1
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The outlook across CFT’s global end markets continues to be favorable,
and our expectations for net sales growth remain in the mid-single digit
percent range for 2017.
Carlisle Brake & Friction (CBF) achieved strong organic net
sales growth in the third quarter, reflecting new business launches and
growth in their key end markets of construction, agriculture, and
mining. Adjusted EBIT and EBIT margin improved on higher volumes.
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Acquisition Effect
|
|
Price / Volume Effect
|
|
Exchange Rate Effect
|
|
|
2017
|
|
2016
|
|
Change %
|
Net sales
|
|
|
$
|
80.5
|
|
|
$
|
62.6
|
|
|
28.6
|
%
|
|
—
|
%
|
|
27.7
|
%
|
|
0.9
|
%
|
EBIT
|
|
|
$
|
1.2
|
|
|
$
|
(141.3
|
)
|
|
100.8
|
%
|
|
|
|
|
|
|
Adjusted EBIT
|
|
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
|
1.5
|
%
|
|
(225.7
|
)%
|
|
|
|
|
|
|
|
|
Adjusted EBIT margin
|
|
|
1.5
|
%
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
Special items
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As mentioned at the close of the second quarter, we continue to be
cautiously optimistic that CBF end markets have reached the bottom of
the cycle, and look to see strong sales growth for the remainder of the
year. We now expect CBF to achieve mid-teens net sales growth in 2017.
Koch concluded by stating, “We are pleased with our record third quarter
results and are now planning for total net sales growth in the high
single digit percent range for 2017. We expect capital expenditures will
be approximately $150 million as investments at CCM, CIT, and CFT move
forward, and the additional cost reduction improvements at CBF related
to their footprint rationalization efforts continue. We remain favorably
positioned with our liquidity and strong balance sheet to continue to
pursue growth opportunities both organically and through acquisitions,
while returning value to shareholders.”
Cash Flow
Cash flow provided from operations of $299.6 million for the nine months
ended September 30, 2017 was $55.5 million lower than cash provided of
$355.1 million for the prior year period primarily due to an increase in
cash usage for working capital to support organic sales growth.
Free cash flow (defined as cash provided by operating activities less
capital expenditures, and comprised of continuing and discontinued
operations) was $193.8 million in the nine months ended September 30,
2017, a decrease of $84 million versus the prior year. The decrease in
free cash flow was primarily attributable to a greater usage of cash for
working capital and higher capital expenditures versus the prior year.
For the full year, we expect free cash flow conversion to be
approximately 100%.
Net cash used in investing activities of $385.6 million for the nine
months ended September 30, 2017 included $280.0 million used primarily
for the acquisition of San Jamar and Drexel Metals, net of cash acquired.
During the nine months ended September 30, 2017, we utilized $266.4
million in cash to repurchase approximately 2.7 million shares of
Carlisle stock. The year-to-date share repurchase activity occurred in
the second and third quarters of 2017.
As of September 30, 2017, we had $147.6 million cash on hand and $815.0
million of availability under our revolving credit facility.
Conference Call and Webcast
The Company will discuss third quarter 2017 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 diversified, global portfolio of
niche brands and businesses with highly engineered and high margin
products. Carlisle is committed to generating superior shareholder
returns by combining a unique management style of decentralization,
entrepreneurial spirit, active M&A, and a balanced approach to capital
deployment, all with a culture of continuous improvement as embodied in
the Carlisle Operating System. Carlisle’s markets include: commercial
roofing, agriculture, mining, construction, aerospace, defense,
foodservice, healthcare, sanitary maintenance, transportation,
industrial, protective coating and auto refinishing. Carlisle’s
worldwide team of employees generated $3.7 billion in net sales in 2016.
Learn more about Carlisle at www.carlisle.com.
|
|
|
|
|
Carlisle Companies Incorporated
Unaudited Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
(in millions except share and per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
|
$
|
1,089.1
|
|
|
$
|
991.0
|
|
|
$
|
3,018.1
|
|
|
$
|
2,781.9
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
777.6
|
|
|
667.4
|
|
|
2,144.9
|
|
|
1,891.7
|
|
Selling and administrative expenses
|
|
152.2
|
|
|
135.6
|
|
|
433.5
|
|
|
391.2
|
|
Research and development expenses
|
|
13.5
|
|
|
12.3
|
|
|
40.2
|
|
|
35.6
|
|
Impairment charges
|
|
—
|
|
|
141.5
|
|
|
—
|
|
|
141.5
|
|
Other expense (income), net
|
|
2.9
|
|
|
(2.2
|
)
|
|
1.1
|
|
|
(4.0
|
)
|
Earnings before interest and income taxes
|
|
142.9
|
|
|
36.4
|
|
|
398.4
|
|
|
325.9
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
7.7
|
|
|
7.5
|
|
|
21.4
|
|
|
24.1
|
|
Earnings before income taxes from continuing operations
|
|
135.2
|
|
|
28.9
|
|
|
377.0
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
48.8
|
|
|
38.4
|
|
|
126.8
|
|
|
127.5
|
|
Income (loss) from continuing operations
|
|
86.4
|
|
|
(9.5
|
)
|
|
250.2
|
|
|
174.3
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
0.3
|
|
|
(0.7
|
)
|
Income tax (benefit) expense
|
|
—
|
|
|
(0.3
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
(Loss) income from discontinued operations
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
86.3
|
|
|
$
|
(9.8
|
)
|
|
$
|
250.4
|
|
|
$
|
173.9
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common shares:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
1.38
|
|
|
$
|
(0.15
|
)
|
|
$
|
3.91
|
|
|
$
|
2.69
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Basic earnings (loss) per share
|
|
$
|
1.38
|
|
|
$
|
(0.15
|
)
|
|
$
|
3.91
|
|
|
$
|
2.69
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shares:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
1.37
|
|
|
$
|
(0.15
|
)
|
|
$
|
3.89
|
|
|
$
|
2.66
|
|
(Loss) income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Diluted earnings (loss) per share
|
|
$
|
1.37
|
|
|
$
|
(0.15
|
)
|
|
$
|
3.89
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
Basic
|
|
62,432
|
|
|
64,353
|
|
|
63,503
|
|
|
64,206
|
|
Diluted
|
|
62,797
|
|
|
64,353
|
|
|
63,916
|
|
|
64,879
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and paid
|
|
$
|
23.2
|
|
|
$
|
22.8
|
|
|
$
|
69.0
|
|
|
$
|
61.8
|
|
Dividends declared and paid per share
|
|
$
|
0.37
|
|
|
$
|
0.35
|
|
|
$
|
1.07
|
|
|
$
|
0.95
|
|
|
(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
|
|
$
|
86.0
|
|
|
$
|
(9.5
|
)
|
|
$
|
248.2
|
|
|
$
|
172.8
|
|
Net income
|
|
$
|
85.9
|
|
|
$
|
(9.8
|
)
|
|
$
|
248.4
|
|
|
$
|
172.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
Unaudited Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Increase (Decrease)
|
|
Nine Months Ended September 30,
|
|
Increase (Decrease)
|
(in millions, except percentages)
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
Net Sales
|
Carlisle Construction Materials
|
|
$
|
640.2
|
|
|
$
|
578.2
|
|
|
$
|
62.0
|
|
|
10.7
|
%
|
|
$
|
1,717.5
|
|
|
$
|
1,564.4
|
|
|
$
|
153.1
|
|
|
9.8
|
%
|
Carlisle Interconnect Technologies
|
|
210.8
|
|
|
218.2
|
|
|
(7.4
|
)
|
|
(3.4
|
)
|
|
606.8
|
|
|
624.3
|
|
|
(17.5
|
)
|
|
(2.8
|
)
|
Carlisle FoodService Products
|
|
86.7
|
|
|
63.0
|
|
|
23.7
|
|
|
37.6
|
|
|
257.8
|
|
|
186.9
|
|
|
70.9
|
|
|
37.9
|
|
Carlisle Fluid Technologies
|
|
70.9
|
|
|
69.0
|
|
|
1.9
|
|
|
2.8
|
|
|
202.4
|
|
|
198.4
|
|
|
4.0
|
|
|
2.0
|
|
Carlisle Brake & Friction
|
|
80.5
|
|
|
62.6
|
|
|
17.9
|
|
|
28.6
|
|
|
233.6
|
|
|
207.9
|
|
|
25.7
|
|
|
12.4
|
|
Total
|
|
$
|
1,089.1
|
|
|
$
|
991.0
|
|
|
$
|
98.1
|
|
|
9.9
|
|
|
$
|
3,018.1
|
|
|
$
|
2,781.9
|
|
|
$
|
236.2
|
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
Carlisle Construction Materials
|
|
$
|
124.2
|
|
|
$
|
132.0
|
|
|
$
|
(7.8
|
)
|
|
(5.9
|
)%
|
|
$
|
333.9
|
|
|
$
|
337.4
|
|
|
$
|
(3.5
|
)
|
|
(1.0
|
)%
|
Carlisle Interconnect Technologies
|
|
25.7
|
|
|
42.2
|
|
|
(16.5
|
)
|
|
(39.1
|
)
|
|
68.1
|
|
|
118.4
|
|
|
(50.3
|
)
|
|
(42.5
|
)
|
Carlisle FoodService Products
|
|
11.6
|
|
|
9.0
|
|
|
2.6
|
|
|
28.9
|
|
|
29.5
|
|
|
24.3
|
|
|
5.2
|
|
|
21.4
|
|
Carlisle Fluid Technologies
|
|
0.1
|
|
|
9.5
|
|
|
(9.4
|
)
|
|
(98.9
|
)
|
|
12.5
|
|
|
23.7
|
|
|
(11.2
|
)
|
|
(47.3
|
)
|
Carlisle Brake & Friction
|
|
1.2
|
|
|
(141.3
|
)
|
|
142.5
|
|
|
100.8
|
|
|
3.8
|
|
|
(132.8
|
)
|
|
136.6
|
|
|
102.9
|
|
Corporate
|
|
(19.9
|
)
|
|
(15.0
|
)
|
|
(4.9
|
)
|
|
32.7
|
|
|
(49.4
|
)
|
|
(45.1
|
)
|
|
(4.3
|
)
|
|
9.5
|
|
Total
|
|
$
|
142.9
|
|
|
$
|
36.4
|
|
|
$
|
106.5
|
|
|
292.6
|
|
|
$
|
398.4
|
|
|
$
|
325.9
|
|
|
$
|
72.5
|
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT Margins
|
Carlisle Construction Materials
|
|
19.4
|
%
|
|
22.8
|
%
|
|
|
|
|
|
19.4
|
%
|
|
21.6
|
%
|
|
|
|
|
Carlisle Interconnect Technologies
|
|
12.2
|
|
|
19.3
|
|
|
|
|
|
|
11.2
|
|
|
19.0
|
|
|
|
|
|
Carlisle FoodService Products
|
|
13.4
|
|
|
14.3
|
|
|
|
|
|
|
11.4
|
|
|
13.0
|
|
|
|
|
|
Carlisle Fluid Technologies
|
|
0.1
|
|
|
13.8
|
|
|
|
|
|
|
6.2
|
|
|
11.9
|
|
|
|
|
|
Carlisle Brake & Friction
|
|
1.5
|
|
|
(225.7
|
)
|
|
|
|
|
|
1.6
|
|
|
(63.9
|
)
|
|
|
|
|
Total
|
|
13.1
|
|
|
3.7
|
|
|
|
|
|
|
13.2
|
|
|
11.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(in millions except share and per share amounts)
|
|
September 30, 2017
|
|
December 31, 2016
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
147.6
|
|
|
$
|
385.3
|
|
Receivables, net
|
|
690.8
|
|
|
511.6
|
|
Inventories
|
|
454.8
|
|
|
377.0
|
|
Prepaid expenses
|
|
25.3
|
|
|
24.3
|
|
Other current assets
|
|
43.2
|
|
|
57.0
|
|
Total current assets
|
|
1,361.7
|
|
|
1,355.2
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
698.5
|
|
|
632.2
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
Goodwill, net
|
|
1,212.8
|
|
|
1,081.2
|
|
Other intangible assets, net
|
|
1,018.6
|
|
|
872.2
|
|
Other long-term assets
|
|
26.3
|
|
|
25.0
|
|
Total other assets
|
|
2,257.7
|
|
|
1,978.4
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
4,317.9
|
|
|
$
|
3,965.8
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
328.9
|
|
|
$
|
243.6
|
|
Accrued expenses
|
|
277.4
|
|
|
246.7
|
|
Deferred revenue
|
|
29.3
|
|
|
23.2
|
|
Total current liabilities
|
|
635.6
|
|
|
513.5
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
Long-term debt
|
|
781.9
|
|
|
596.4
|
|
Deferred revenue
|
|
182.4
|
|
|
172.0
|
|
Other long-term liabilities
|
|
281.7
|
|
|
217.0
|
|
Total long-term liabilities
|
|
1,246.0
|
|
|
985.4
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
Common stock
|
|
78.7
|
|
|
78.7
|
|
Additional paid-in capital
|
|
346.8
|
|
|
335.3
|
|
Deferred compensation equity
|
|
11.9
|
|
|
10.3
|
|
Treasury shares, at cost
|
|
(652.6
|
)
|
|
(382.6
|
)
|
Accumulated other comprehensive loss
|
|
(77.3
|
)
|
|
(122.2
|
)
|
Retained earnings
|
|
2,728.8
|
|
|
2,547.4
|
|
Total shareholders' equity
|
|
2,436.3
|
|
|
2,466.9
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
4,317.9
|
|
|
$
|
3,965.8
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
Nine Months Ended September 30,
|
(in millions)
|
|
2017
|
|
2016
|
Operating activities
|
|
|
|
|
Net income
|
|
$
|
250.4
|
|
|
$
|
173.9
|
|
Reconciliation of net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
61.5
|
|
|
55.9
|
|
Amortization
|
|
59.2
|
|
|
46.1
|
|
Impairment charges
|
|
—
|
|
|
141.5
|
|
Stock-based compensation, net of tax benefit
|
|
11.9
|
|
|
(3.1
|
)
|
Other operating activities, net
|
|
3.5
|
|
|
(21.6
|
)
|
Changes in assets and liabilities, excluding effects of acquisitions:
|
|
|
|
|
Receivables
|
|
(155.3
|
)
|
|
(93.5
|
)
|
Inventories
|
|
(45.9
|
)
|
|
(20.6
|
)
|
Prepaid expenses and other assets
|
|
1.4
|
|
|
1.0
|
|
Accounts payable
|
|
61.3
|
|
|
43.3
|
|
Accrued expenses
|
|
39.9
|
|
|
25.3
|
|
Deferred revenues
|
|
15.4
|
|
|
7.4
|
|
Other long-term liabilities
|
|
(3.7
|
)
|
|
(0.5
|
)
|
Net cash provided by operating activities
|
|
299.6
|
|
|
355.1
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Acquisitions, net of cash acquired
|
|
(280.0
|
)
|
|
(103.1
|
)
|
Capital expenditures
|
|
(105.8
|
)
|
|
(77.3
|
)
|
Other investing activities, net
|
|
0.2
|
|
|
0.8
|
|
Net cash used in investing activities
|
|
(385.6
|
)
|
|
(179.6
|
)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Repayments of borrowings
|
|
—
|
|
|
(150.0
|
)
|
Proceeds from revolving credit facility
|
|
491.0
|
|
|
—
|
|
Repayments of revolving credit facility
|
|
(306.0
|
)
|
|
—
|
|
Repurchases of common stock
|
|
(266.4
|
)
|
|
(61.3
|
)
|
Dividends paid
|
|
(69.0
|
)
|
|
(61.8
|
)
|
Withholding tax paid related to stock-based compensation
|
|
(8.2
|
)
|
|
(4.8
|
)
|
Proceeds from exercise of stock options
|
|
4.1
|
|
|
46.2
|
|
Net cash used in financing activities
|
|
(154.5
|
)
|
|
(231.7
|
)
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
2.8
|
|
|
0.9
|
|
Change in cash and cash equivalents
|
|
(237.7
|
)
|
|
(55.3
|
)
|
Cash and cash equivalents
|
|
|
|
|
Beginning of period
|
|
385.3
|
|
|
410.7
|
|
End of period
|
|
$
|
147.6
|
|
|
$
|
355.4
|
|
|
|
|
|
|
|
|
|
|
|
Carlisle Companies Incorporated
GAAP to Non-GAAP Reconciliation
|
|
|
|
|
|
Three Months Ended September 30, 2016
|
|
|
Carlisle Companies Incorporated
|
|
Carlisle Brake & Friction
|
(in millions, except percentages and per share amounts)
|
|
EBIT
|
|
EBIT Margin
|
|
Income Tax Impact
|
|
Income from Continuing Operations
|
|
Diluted Earnings per Share from Cont.
Ops.
|
|
EBIT
|
|
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
|
|
|
$
|
0.2
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The reconciling item of $18.9 million related to income tax expense
reflects the difference between the third quarter 2016 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%. The full year tax benefit of the impairment was
$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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171024006658/en/
Source: Carlisle Companies Incorporated