Carlisle Companies Reports Record Second Quarter Results

Carlisle Companies Incorporated (“Carlisle”) announced its second quarter 2022 financial results.

• Generated record second quarter revenues of $1.85 billion, up 57% year-over-year (42% organic)
• Delivered record second quarter GAAP Diluted EPS of $5.62 and Adjusted Diluted EPS of $6.15, an increase of 185% from prior year
• Leveraged strong new commercial construction and re-roofing demand, coupled with increasing demand for energy efficient solutions for buildings
• Offset continuing and pervasive cost inflation with pricing actions
• Exceeding synergy targets of Henry integration plan
• Benefiting from the pivot to a more concentrated building products platform

Comments from Chris Koch, Chair, President and Chief Executive Officer

“I am extremely pleased with the outstanding performance delivered by the entire Carlisle team this quarter, especially as we operate in this highly challenging and uncertain environment. Despite these challenges, the Carlisle team continues to live our culture of perseverance, continuous improvement and unwavering focus on delivering results.

As we move past the mid-point of 2022 and reflect on our Vision 2025 strategic plan that we launched in 2018, I am encouraged by our second quarter results. We believe these results clearly demonstrate Carlisle is exceeding expectations and is on pace to achieve much of what we set out to accomplish in Vision 2025, including our goal to deliver $15 of earnings per share.

Achievements in the second quarter included:

• Our pivot to a more concentrated building products platform continued with the first full quarter of performance for our new Carlisle Construction Materials (“CCM”) and Carlisle Weatherproofing Technologies (“CWT”) divisions. Both teams experienced a second quarter marked by strong demand, robust backlogs and solid execution;
• A further reinforcement of our differentiated approach to pricing that reflects the value of the Carlisle Experience, and the benefits of our products that contribute to the energy efficiency of buildings;
• A continued and disciplined approach to capital allocation, including acquisitions, highlighted by Henry, which continues to exceed expectations and deliver on our synergy commitments of $30 million;
• Investing in our businesses to expand capacity, drive innovation, and develop world-class capabilities, including:
  • Ongoing construction of our state-of-the-art polyiso insulation facility built to LEED specifications in Sikeston, MO, which is on track to be operational in the second quarter of 2023; and
  • Launching of our 6th TPO line in Carlisle, PA, which, in September, will introduce to the market an industry-first 16-foot-wide TPO membrane, and is expected to result in significant labor savings, improved installation quality and less packaging waste for our installers;
• A continued commitment to the introduction of new products, which accounted for over $100 million of sales in the second quarter;
• Repurchasing 204 thousand shares for $50 million, adding to our cumulative share repurchases since 2017 of nearly $2 billion; and
• Paying $28 million of dividends in the quarter, continuing our 45-year trend of continuous and annually increasing dividends.

Vision 2025 continues to provide the Carlisle team with: the clarity to navigate a complex and rapidly evolving environment; a culture of continuous improvement; and a drive to employ and develop the best talent, all the while ensuring our teams know who we are and what we are trying to achieve.

In closing, I want to again express my gratitude for the excellent performance of Carlisle’s dedicated employees who delivered a truly remarkable second quarter. Our outlook remains optimistic for the rest of 2022 and the long term.”

Second Quarter 2022

Revenue of $1.8 billion increased 56.8% year-over-year. Organic revenue increased 42.2% (organic revenue defined as revenue excluding acquired revenues within the last 12 months and the impact of changes in foreign exchange rates versus the U.S. Dollar). Acquired revenues contributed a total of 15.5% in the quarter. Changes in foreign exchange rates had a negative 0.9% impact on revenues.

Operating income for the second quarter of $410.6 million increased 206.9% from $133.8 million in the second quarter of 2021. Income from continuing operations for the second quarter of $295.9 million increased 214.5% from $94.1 million in the second quarter of 2021. Adjusted EBITDA for the second quarter of 2022 of $472.2 million increased 146.3% from $191.7 million in the second quarter of 2021.

Diluted earnings per share (“EPS”) for the second quarter of $5.62 increased 217.5% from $1.77 in the second quarter of 2021. Adjusted diluted EPS for the second quarter of $6.15 increased 184.7% from $2.16 in the second quarter of 2021. The increase in EPS reflects strong operating results at CCM and CWT, improving performance at CIT and CFT, and share repurchases.

Second Quarter 2022 Segment Highlights

Carlisle Construction Materials (“CCM”)

• Revenues of $1.1 billion, up 54.0% (+54.9% organic) year-over-year, were driven by the strength of U.S. commercial roofing demand and price realization across all product lines, partially offset by unfavorable impact from changes in foreign exchange rates.
• Operating income was $358.9 million, up 131.5% year-over-year. Adjusted EBITDA was $371.3 million, up 120.6% year-over-year, reflecting an adjusted EBITDA margin of 33.3%, which was positively impacted by higher volumes, positive pricing, favorable mix, and savings from the Carlisle Operating System (“COS”), and partially offset by raw material, freight and wage inflation.
• We have now raised full year 2022 sales expectations to approximately 40% year-over-year versus 30% previously.

Carlisle Weatherproofing Technologies (“CWT”)

• Revenues of $448.9 million, up 109.3% (+24.4% organic) year-over-year, were driven by strength across our product lines, the Henry acquisition and positive pricing.
• Operating income was $59.0 million, up 163.4% year-over-year. Adjusted EBITDA was $83.5 million, up 153.8% year-over-year reflecting an adjusted EBITDA margin of 18.6%, which was positively impacted by higher volumes, contribution from Henry, positive pricing, favorable mix, and savings from COS, and partially offset by raw material, freight and wage inflation.
• We now expect full year 2022 sales to increase approximately 60% year-over-year, which includes approximately 20% organic growth.

Carlisle Interconnect Technologies (“CIT”)

• Revenues of $212.6 million, up 25.9% (+26.1% organic) year-over-year, were driven by continued strengthening of aerospace and medical end markets.
• Operating income was $7.9 million. Adjusted EBITDA was $27.0 million, up 100.0% year-over-year reflecting an adjusted EBITDA margin of 12.7%, which was positively impacted by higher volumes, positive pricing, and COS savings, and partially offset by raw materials and wage inflation, unfavorable mix and higher operating expenses.
• We now expect full year 2022 sales to increase approximately 20% year-over-year up from our previous expectation of low-double digit growth.

Carlisle Fluid Technologies (“CFT”)

• Revenues of $72.0 million, up 0.6% (+5.5% organic) year-over-year, reflected positive pricing, partially offset by unfavorable impact from changes in foreign exchange rates.
• Operating income was $7.0 million. Adjusted EBITDA was $12.2 million, up 7.0% year-over-year reflecting an adjusted EBITDA margin of 16.9%, which was positively impacted by price realization and savings from COS, and partially offset by raw material and wage inflation.
• We continue to expect full year 2022 sales to increase approximately 10% year-over-year.

Cash Flow

Operating cash flow from continuing operations for the six months ended June 30, 2022, was $225.6 million, an increase of $64.9 million versus the prior year. Free cash flow from continuing operations was $142.9 million, an increase of $31.7 versus prior year (defined as cash provided by operating activities less capital expenditures, and comprised of continuing operations).

During the quarter ended June 30, 2022, we deployed $50.0 million toward share repurchases and paid $28.0 million in cash dividends. As of June 30, 2022, we had $353.2 million of cash and cash equivalents and $1.0 billion of availability under our revolving credit facility.

For the full second quarter results, click here.

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a leading supplier of innovative Building Envelope products and energy-efficient solutions for customers creating sustainable buildings of the future. Through its construction materials businesses (CCM and CWT) and family of leading brands, Carlisle delivers innovative, labor-reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Over the life of a building, Carlisle’s products help drive lower greenhouse gas emissions, improve energy savings for building owners and operators, and increase a building’s resiliency to the elements. Driven by its strategic plan, Vision 2025, Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Carlisle also is a leading provider of products to the Aerospace, Medical Technologies and General Industrial markets through its Interconnect Technologies (CIT) and Fluid Technologies (CFT) business segments.

Contact:

Jim Giannakouros, CFA – Vice President of Investor Relations – jgiannakouros@carlisle.com – (480) 781-5135

Source: Carlisle Companies Incorporated