3rd Quarter 2011

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October 25, 2011 3 rd Quarter 2011

Transcript of 3rd Quarter 2011

Page 1: 3rd Quarter 2011

October 25, 2011

3rd Quarter 2011

Page 2: 3rd Quarter 2011

During the course of this presentation, we may make projections or otherforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995.

We wish to caution you that such statements reflect only our currentexpectations, and that actual events or results may differ materially dueto changes in global economic, business, competitive, market andregulatory factors.

More detailed information about these factors is contained in thedocuments that the Company files from time to time with the Securitiesand Exchange Commission. We undertake no obligation to update suchprojections or such forward-looking statements in the future.

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Forward Looking Statements

Page 3: 3rd Quarter 2011

Net sales up 31% Organic sales up 15% Solid growth led by Brake & Friction,

Construction Materials and Interconnect Technologies

$100M in sales from Hawk & PDT acquisitions, 15%

EBIT Margin of 9.4% Another record quarter for Brake &

Friction, close to 20% margin Offset by Transportation Product

management charges and operating losses

Acquired PDT on August 1, 2011

Continuing Operations EPS of $0.85

Highlights of Q3 2011

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Financial Summary

Continued sales and earnings improvement led by CBF, CCM and CITNegative impact from CTP charges and operating performance

In Millions, except per share amounts Q3 '11 Q3 '10 ∆

Net Sales 870.5$ 665.9$ 31%

Earnings Before Interest and Income Taxes (EBIT) 81.8 66.5 23%

EBIT Margin 9.4% 10.0% -60 bps

Income from Continuing Operations, Net of Tax 53.7 46.8 15%

Continuing Operations Diluted Earnings per Share 0.85$ 0.75$ 13%

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$665.9

$870.5

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1,000

Q3 '10 Price Volume / Oth Acq F/X Q3 '11

$ in M

illions

Sales Bridge

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31% Sales Growth: 15% Organic, 15% Acquisition

Organic +15.4%

+15.0% +0.3%

+6.0%

+9.4%

Organic by SegmentConstruction 21%Transportation 4%Brake & Friction 36%Interconnect 23%FoodService -4%

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Margin Bridge

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Continued positive impact from acquisitions, volume and COSOperating loss at CTP

EBIT - $66.5 Million EBIT - $81.8 Million23%

10.0% 9.4%‐5.8%

+4.5%

+0.7%

+0.8% +1.5% ‐2.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%Q3 '10 Raw Mat Price Volume COS Acq Other Op Q3 '11

EBIT M

argin

Page 6: 3rd Quarter 2011

Carlisle Construction MaterialsQ3 2011 Results

Acquired PDT on August 1st

Brings sales and manufacturing foothold in Europe for single-ply roofing

25% sales growth PDT sales $13.4M, 4%

Profiles business reported in Discontinued Operations

Organic growth of 21% on strong reroofing demand and selling price

Selling price added 5% EBIT increased 11% from $54.1M in 2010 to

$60.2M in 2011 Negative $27 million impact from raw

materials over prior year

Strong organic growth from reroofing demand and selling priceIntegration of PDT well underway

$354.8

$442.2

15.2%13.6%

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Sales PDT Margin

25%

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Carlisle Transportation ProductsQ3 2011 Results

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Actions taken to address performance and improvement plan for 2012

Sales growth of 5% Selling price increase of $19M, 12% Partially offset by lower volume

primarily in Outdoor Power Equipment Raw material cost increases recovered by

selling price increases Natural Rubber up 47% Synthetic Rubber up 66%

EBIT loss of $9M Production inefficiencies and lower

volume negatively impacted earnings Management and organizational

change costs of $4M

5%

$156.8 $164.6

2.2%

-5.4%

-8.0%

-6.0%

-4.0%

-2.0%

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$ in

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0% 

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Carlisle Transportation ProductsItems Impacting 3rd Quarter

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Management and organizational costs $4.0M

Jackson inefficiency costs 5.9M

Plant restructuring 1.3M

Total $11.2M

Jackson Productivity Tire Builder Efficiency:

Q2 Average – 50% Q3 Average – 62% October – 71%

Scrap Percentage: Q2 Average – 6% Q3 Average – 4% October – 2.4%

Page 9: 3rd Quarter 2011

Carlisle Brake & FrictionQ3 2011 Results

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Hawk contributed $86.2 million to Net Sales and $19.6 million to EBIT

Organic sales growth of 36% Driven by global demand in

Agriculture, Construction and Mining

Overall CBF EBIT margin approached 20% in Q3 2011

Markets remained strong in all global regions through Q3 2011

Another record sales and earnings quarter for CBF

$29.2

$126.6

16.8%

19.1%

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Sales Hawk Margin

334%

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Carlisle Interconnect TechnologiesQ3 2011 Results

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Sales growth 23% 38% growth in Aerospace from

legacy Boeing programs, in-flight entertainment and 787 program

22% decline in Military sales partially offset Aerospace growth

EBIT increased 33%

Margin improvement from volume and COS savings

Boeing 787 program underway

Outstanding sales performance and EBIT leverage

$61.4

$75.7

13.4%14.4%

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23%

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Carlisle FoodService ProductsQ3 2011 Results

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Sales declined 4%

Selling price added 3.5%

Foodservice sales volume up by 3% despite lower restaurant traffic in Q3 ‘11

Healthcare sales down 22%

EBIT margin negatively impacted by volume decline and raw material cost increases

Economic conditions and low consumer confidence continue to impact segment results

-4%$63.7 $61.4

9.9%

7.3%

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Sales Margin

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Strong Balance SheetDebt Maturity Schedule

In millions Cash on Hand of $82M

PDT acquisition for $113M funded primarily by free cash flow and cash on hand

Replaced $500M revolver on 10/20/11 with $600M credit facility

$464M available as of 10/25/11 under new revolver

Debt to Cap ratio of 26%

Debt to EBITDA of 1.4

Well-positioned for further investment in acquisitions, new product development and capital expenditures

LC, $31

Drawn $110

$359

$0

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$500

2012 2016 2018 2020

Available Under $500M Revolver 

at 9/30/11

IRB & OtherSenior Notes $149M

Senior Notes $249M

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Cash Flow by Quarter

Strong cash flow during Q3 2011 versus prior year

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Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11

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Operating Cash Flow Capital Expenditures Free Cash Flow

Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11Operating Cash Flow $41.9 $45.0 ($0.3) $14.0 $105.2Capital Expenditures (15.2) (17.8) (16.9) (16.9) (14.7)Free Cash Flow 26.7 27.2 (17.2) (2.9) 90.5

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Working Capital as a % of Net Sales

Working Capital reflects average of quarter ending Receivables plus Inventory less Accounts Payable. % of Net Sales calculated using average Working Capital over annualized year-to-date Net Sales.

Managing working capital on higher sales volume

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11WC as a % of Net Sales 30.4% 26.4% 25.1% 24.9% 23.5% 21.4% 21.6% 22.0% 23.4% 21.7% 21.5%

20.0%

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24.0%

26.0%

28.0%

30.0%

32.0%

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Q & A

Page 16: 3rd Quarter 2011

Carlisle 2011 Outlook

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Sales growth from Hawk & PDT acquisitions and segment organic growth totaling mid-20 percent range

Continued margin improvement, primarily from Brake & Friction and Interconnect Technologies

Cash conversion expected to be 90% (Ratio of Free Cash Flow before Dividends to Net Income)

Corporate Expense - $41.5M

Depreciation & Amortization - $89M

Interest Expense - $21M

Tax Rate - 32%

Capital Expenditures - $75M