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8-K - 8-K - CARLISLE COMPANIES INCa13-16986_18k.htm

Exhibit 99.1

 

PRESS RELEASE

GRAPHIC

 

07/23/13

 

Carlisle Companies Reports Second Quarter Diluted Earnings Per Share from Continuing Operations of $0.13, Including Goodwill Impairment Charge at Carlisle Transportation Products; Excluding Goodwill Impairment Charge, Announces Diluted Earnings Per Share from Continuing Operations of $1.14

 

Evaluating Strategic Alternatives for Carlisle Transportation Products Segment

 

CHARLOTTE, NORTH CAROLINA, July 23, 2013 - Carlisle Companies Incorporated (NYSE:CSL) reported $996.1 million in net sales from continuing operations for the second quarter of 2013, an increase of 1.2% versus the prior year.  The acquisition of Thermax/Raydex (collectively “Thermax”) in the Carlisle Interconnect Technologies segment contributed 2.6% to sales in the second quarter.  Organic sales declined by 1.4%.  The negative impact on net sales from fluctuations in foreign exchange was negligible.

 

Reported income from continuing operations was $8.2 million, or $0.13 per diluted share, in the second quarter 2013.  Excluding the non-cash after-tax goodwill impairment charge of $66.1 million at Carlisle Transportation Products, income from continuing operations was $74.3 million, or $1.14 per diluted share, a 17% decline from income of $89.4 million, or $1.39 per diluted share, in 2012.  Income from continuing operations, excluding the impairment charge, was lower in the second quarter of 2013 versus the prior year due to lower sales volume in some of our key industrial markets and negative selling price realization within Carlisle Construction Materials.

 

Second quarter highlights:

 

(Dollars in millions, except per share amounts)

 

Q2 2013

 

Q2 2012

 

Net sales

 

$

996.1

 

$

984.6

 

Earnings before interest and income taxes (EBIT)

 

$

22.5

 

$

140.3

 

Earnings before interest and income taxes (EBIT), excluding impairment charge

 

$

122.5

 

$

140.3

 

Income from continuing operations, net of tax

 

$

8.2

 

$

89.4

 

Income from continuing operations, net of tax, excluding impairment charge

 

$

74.3

 

$

89.4

 

Diluted earnings per share from continuing operations

 

$

0.13

 

$

1.39

 

Diluted earnings per share from continuing operations, excluding impairment charge

 

$

1.14

 

$

1.39

 

Carlisle Transportation Products Segment EBIT

 

$

(86.8

)

$

19.3

 

Carlisle Transportation Products Segment EBIT, excluding impairment charge

 

$

13.2

 

$

19.3

 

 

For the six months ended June 30, 2013, net sales from continuing operations of $1.85 billion decreased 1.1% compared to the prior year, reflecting lower organic sales of 4.1%, partially offset by acquisition growth of 3.0%.  Reported income from continuing operations for the six months ended June 30, 2013 was $63.5 million, or $0.98 per diluted share.  Excluding the impairment charge, income from continuing operations for the first six months of 2013 was $129.6 million, or $2.00 per diluted share, as compared to income of $149.4, or $2.34 per diluted share in 2012.

 



 

All financial and percentage comparisons are made to the same quarter of the previous year, unless otherwise stated.  Reconciliations of reported amounts to results excluding the goodwill impairment charge are included in the financial exhibits.

 

Comment

 

David A. Roberts, Chairman, President and Chief Executive Officer, said, “For the second quarter of 2013, our results were again challenged by the significant decline in the global off-highway equipment market, continued weather related headwinds in certain key markets as well as negative price realization within our Construction Materials segment, which enjoyed very favorable price realization last year.  As a result, organic sales were down slightly this quarter and our EBIT (earnings before interest and taxes) of $122.5 million, excluding the pre-tax impairment charge, declined by 13% versus last year.

 

“Sales at Carlisle Construction Materials (CCM) grew 4.4% in the second quarter compared to the prior year and EBIT was lower by 8.5% as weather conditions remained challenging.  Despite the challenging weather conditions and negative price realization, EBIT margin was an impressive 15.9%.  We expect the year-over-year growth outlook in both the reroofing and non-residential construction markets to be favorable for upcoming periods.

 

“At our Carlisle Interconnect Technologies segment (CIT), sales grew by 27% and EBIT increased 28%. Organic sales growth in the second quarter was 4.3%.  We achieved solid growth in our aerospace market with growing IFE (in-flight entertainment) sales.  Additionally, the Boeing 787 program began ramping up at the end of the quarter.  However, our growth was curbed by the decline in military programs.  The integration of the Thermax acquisition continues to exceed expectations.  This acquisition contributed a very strong EBIT margin of 18.1% on $26.0 million in sales in the quarter.

 

“At our Carlisle Transportation Products (CTP) segment, sales were down 3.7% as wet weather conditions negatively impacted demand in our outdoor power equipment and agriculture markets.  Our expectations are for sales for the rest of 2013 to be relatively level to the prior year.

 

“We recorded a non-cash pre-tax loss of $100.0 million at CTP for goodwill impairment during the second quarter.  The recent increase in interest rates resulted in a higher rate used to discount CTP’s projected future cash flows, reducing CTP’s estimated fair value.  CTP’s EBIT, excluding the impairment charge, declined 32% during the second quarter on lower sales volume and continued inventory reduction efforts.  Notwithstanding the impairment charge or the unfavorable weather impacts we experienced this quarter, our performance outlook for this segment has not changed.

 

“The CTP segment has been challenged in 2013 by unfavorable weather conditions and has also undergone significant restructuring of its business in recent years. However, we believe that this business has stabilized and the outlook is favorable.  While we are optimistic about the future for CTP, it is not core to Carlisle’s growth strategy. As such, we have retained SunTrust Robinson Humphrey as financial advisor to assist in evaluating strategic alternatives for CTP.

 

“Second quarter sales at our Carlisle Brake & Friction (CBF) segment declined by 25% over the prior year but grew sequentially versus the first quarter of 2013 by 3.1%.  While EBIT was down

 



 

48% from the prior year, CBF maintained a favorable margin of 13.2%.   Because of uncertainty in our global markets and the decline in commodities, we do not expect demand for our braking applications in the heavy equipment market to recover from current levels for the remainder of this year.

 

“Finally, we’re pleased with the 28% EBIT improvement at our Carlisle Foodservice Products (CFS) segment.  We expect continued year-over-year margin improvement in the second half of this year as CFS continues to achieve savings on its previous restructuring activities.”

 

Roberts concluded by stating, “The year-over-year growth outlook for our commercial roofing and aerospace markets is positive for the remainder of 2013.  We are planning for total sales growth, including acquisitions, in 2013 to be in the low-to-mid single digit percentage range.  Excluding the impairment charge we took this quarter, we expect modest EBIT growth and slightly lower EBIT margin versus the prior year.

 

“We remain committed to making investments in our businesses to support our long-term goals.  Capital expenditures for the year are expected to be approximately $116 million.  We currently have cash on hand of $168 million and $600 million of availability under our revolving credit facility, leaving us solidly positioned to pursue our long-term growth objectives.”

 

Segment Results for Second Quarter 2013

 

Carlisle Construction Materials (CCM):  Net sales in the second quarter of 2013 of $490.5 million increased by 4.4%, primarily reflecting higher demand from new non-residential construction, partially offset by lower selling price. CCM’s EBIT margin of 15.9% in the second quarter of 2013 declined by 230 basis points primarily reflecting lower selling prices coupled with higher raw material costs in our insulation products due to continued pressure on key feed stocks.

 

Carlisle Transportation Products (CTP):  Net sales in the second quarter of 2013 decreased 3.7% to $203.5 million as compared to the prior year primarily reflecting 10% lower sales to the outdoor power equipment market and 4.2% lower sales to the agriculture/construction market.  Sales to the high speed trailer market declined by 3.2% versus the prior year.  These declines were partially offset by a 5.1% increase in sales to CTP’s power sports market.  EBIT margin, excluding the impact of the $100.0 million impairment charge, declined by 260 basis points to 6.5% in the second quarter due to lower sales and lower production to reduce inventory. CTP’s reported EBIT margin including the impairment charge was negative 42.7% during the second quarter 2013.

 

Carlisle Brake & Friction (CBF): Net sales in the second quarter of 2013 declined 25% to $93.6 million versus the prior year.  Sales for CBF’s off-highway braking applications to the construction and mining markets declined by 28% and 42%, respectively.  These declines were partially offset by an uptick in demand in the agriculture market of 11% including increased demand in Europe for CBF’s agriculture applications. CBF’s EBIT margin during the second quarter decreased 590 basis points to 13.2%, primarily due to lower sales volumes.

 

Carlisle Interconnect Technologies (CIT): Net sales in the second quarter of 2013 increased 27% to $145.7 million on acquisition growth of 22.7% and organic sales growth of 4.3% versus the prior year.  Sales in CIT’s aerospace market were up 10%, partially offset by a 19% decline in

 



 

sales to the military and defense market.   CIT’s sales to the test and measurement market grew by 29% however this growth was offset by lower sales to CIT’s industrial customers. EBIT margin for CIT of 15.3% was relatively level to the prior year, primarily due to higher sales volume partially offset by unfavorable mix changes.

 

Carlisle FoodService Products (CFS): Net sales in the second quarter of 2013 of $62.8 million declined slightly versus the prior year, primarily reflecting 13% lower sales of our healthcare products offset by 4.1% higher sales for our foodservice products.  In the second quarter 2013, conditions in the restaurant industry displayed slow improvement.  EBIT margin grew 260 basis points to 11.6% during the second quarter primarily due to savings from prior year restructuring activities and reduced operating costs.

 

Cash Flow

 

Cash flow provided from operations of $119.5 million for the six months ended June 30, 2013 declined by $34.8 million versus the prior year primarily on reduced earnings from operations. For the first six months of 2013, average working capital (defined as the average of the quarter end balances, excluding current year acquisitions, receivables, plus inventory less accounts payable) as a percentage of annualized sales (defined as year-to-date net sales, excluding current year acquisitions, calculated on an annualized basis) decreased to 21.0%, as compared to 21.8% for the prior year.

 

Free cash flow (defined as cash provided by operating activities less capital expenditures) was $70.1 million for the six months ended June 30, 2013, a reduction of $23.6 million versus the prior year period.  Included in capital expenditures of $49.4 million for the first six months of 2013 were investments in two new polyiso plants and the construction of our PVC plant at CCM.

 

Conference Call and Webcast

 

The Company will discuss second quarter 2013 results on a conference call at 8:00 a.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.  These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.  Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory factors.  More detailed information about these factors is contained in the Company’s filing with the Securities and Exchange Commission.  The Company undertakes no duty to update forward-looking statements.

 

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, outdoor power equipment, mining, construction, aerospace and defense electronics, foodservice, healthcare and sanitary maintenance. Through our group of decentralized operating companies led by entrepreneurial management teams, we bring innovative product solutions to solve the challenges our customers face. Our nearly 12,000 employees worldwide, who generated $3.6 billion in net sales in 2012, are 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.

 

CONTACT:                     Steven J. Ford

Vice President & Chief Financial Officer

Carlisle Companies Incorporated

(704) 501-1100

 

www.carlisle.com

 



 

Carlisle Companies Incorporated

Unaudited Condensed Consolidated Statements of Earnings

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

(in millions except share amounts)

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

996.1

 

$

984.6

 

$

1,853.1

 

$

1,873.9

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

755.9

 

729.2

 

1,425.3

 

1,407.3

 

Selling and administrative expenses

 

106.6

 

106.0

 

215.4

 

213.5

 

Research and development expenses

 

9.2

 

8.5

 

18.6

 

16.3

 

Impairment of assets

 

100.0

 

 

100.0

 

 

Other income, net

 

1.9

 

0.6

 

1.2

 

0.3

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest and income taxes

 

22.5

 

140.3

 

92.6

 

236.5

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

8.6

 

6.5

 

16.9

 

13.0

 

Earnings before income taxes from continuing operations

 

13.9

 

133.8

 

75.7

 

223.5

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

5.7

 

44.4

 

12.2

 

74.1

 

Income from continuing operations

 

8.2

 

89.4

 

63.5

 

149.4

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 

3.6

 

(0.1

)

3.6

 

Income tax expense

 

 

0.2

 

 

0.2

 

Income from discontinued operations

 

 

3.4

 

(0.1

)

3.4

 

Net income

 

$

8.2

 

$

92.8

 

$

63.4

 

$

152.8

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to common shares(1)

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.13

 

$

1.42

 

$

1.00

 

$

2.39

 

Income from discontinued operations

 

 

0.06

 

 

0.05

 

Basic Earnings per share

 

$

0.13

 

$

1.48

 

$

1.00

 

$

2.44

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to common shares(1)

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.13

 

$

1.39

 

$

0.98

 

$

2.34

 

Income from discontinued operations

 

 

0.06

 

 

0.05

 

Diluted earnings per share

 

$

0.13

 

$

1.45

 

$

0.98

 

$

2.39

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - in thousands

 

 

 

 

 

 

 

 

 

Basic

 

63,409

 

62,419

 

63,343

 

62,166

 

Diluted

 

64,695

 

63,797

 

64,620

 

63,483

 

 

 

 

 

 

 

 

 

 

 

Dividends declared and paid

 

$

12.8

 

$

11.3

 

$

25.6

 

$

22.5

 

Dividends declared and paid per share

 

$

0.20

 

$

0.18

 

$

0.40

 

$

0.36

 

 


(1) Numerator for basic and diluted EPS calculated based on “two-class” method of computing earnings per share:

 

Income from continuing operations

 

$

8.1

 

$

88.8

 

$

63.2

 

$

148.6

 

Net income

 

$

8.1

 

$

92.2

 

$

63.1

 

$

151.9

 

 



 

Carlisle Companies Incorporated

Unaudited Segment Information

 

 

 

Three Months Ended

 

Increase

 

Six Months Ended

 

Increase

 

 

 

June 30,

 

(Decrease)

 

June 30,

 

(Decrease)

 

In millions, except percentages

 

2013

 

2012

 

Amount

 

Percent

 

2013

 

2012

 

Amount

 

Percent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

490.5

 

$

470.0

 

$

20.5

 

4.4

%

$

830.1

 

$

823.9

 

$

6.2

 

0.8

%

Carlisle Transportation Products

 

203.5

 

211.3

 

(7.8

)

(3.7

)

430.9

 

451.3

 

(20.4

)

(4.5

)

Carlisle Brake & Friction

 

93.6

 

125.3

 

(31.7

)

(25.3

)

184.4

 

250.7

 

(66.3

)

(26.4

)

Carlisle Interconnect Technologies

 

145.7

 

114.7

 

31.0

 

27.0

 

286.9

 

225.4

 

61.5

 

27.3

 

Carlisle FoodService Products

 

62.8

 

63.3

 

(0.5

)

(0.8

)

120.8

 

122.6

 

(1.8

)

(1.5

)

Total

 

$

996.1

 

$

984.6

 

$

11.5

 

1.2

%

$

1,853.1

 

$

1,873.9

 

$

(20.8

)

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest and Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

78.2

 

$

85.5

 

$

(7.3

)

(8.5

)%

$

114.0

 

$

127.5

 

$

(13.5

)

(10.6

)%

Carlisle Transportation Products

 

(86.8

)

19.3

 

(106.1

)

NM

 

(72.3

)

40.2

 

(112.5

)

NM

 

Carlisle Brake & Friction

 

12.4

 

23.9

 

(11.5

)

(48.1

)

23.4

 

47.9

 

(24.5

)

(51.1

)

Carlisle Interconnect Technologies

 

22.3

 

17.4

 

4.9

 

28.2

 

40.7

 

34.1

 

6.6

 

19.4

 

Carlisle FoodService Products

 

7.3

 

5.7

 

1.6

 

28.1

 

12.4

 

11.2

 

1.2

 

10.7

 

Corporate

 

(10.9

)

(11.5

)

0.6

 

5.2

 

(25.6

)

(24.4

)

(1.2

)

(4.9

)

Total

 

$

22.5

 

$

140.3

 

$

(117.8

)

(84.0

)%

$

92.6

 

$

236.5

 

$

(143.9

)

(60.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlisle Construction Materials

 

15.9

%

18.2

%

 

 

 

 

13.7

%

15.5

%

 

 

 

 

Carlisle Transportation Products

 

(42.7

)

9.1

 

 

 

 

 

(16.8

)

8.9

 

 

 

 

 

Carlisle Brake & Friction

 

13.2

 

19.1

 

 

 

 

 

12.7

 

19.1

 

 

 

 

 

Carlisle Interconnect Technologies

 

15.3

 

15.2

 

 

 

 

 

14.2

 

15.1

 

 

 

 

 

Carlisle FoodService Products

 

11.6

 

9.0

 

 

 

 

 

10.3

 

9.1

 

 

 

 

 

Corporate

 

(1.1

)

(1.2

)

 

 

 

 

(1.4

)

(1.3

)

 

 

 

 

Total

 

2.3

%

14.2

%

 

 

 

 

5.0

%

12.6

%

 

 

 

 

 

NM denotes not meaningful

 



 

Carlisle Companies Incorporated

GAAP to Non-GAAP Reconciliation

 

(Dollars in millions, except share amounts)

 

 

 

Three Months Ended June 30, 2013

 

 

 

Carlisle Companies Incorporated

 

Carlisle Transportation Products

 

 

 

 

 

 

 

Income from

 

Diluted Earnings

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

Continuing

 

per Share from

 

 

 

 

 

 

 

 

 

EBIT

 

Margin

 

Operations

 

Cont. Ops.

 

Sales

 

EBIT

 

EBIT Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Reported

 

$

22.5

 

2.3

%

$

8.2

 

$

0.13

 

$

203.5

 

$

(86.8

)

(42.7

)%

Goodwill impairment

 

100.0

 

10.0

%

66.1

(1)

1.01

(1)

 

100.0

 

49.2

%

Excluding Goodwill impairment

 

$

122.5

 

12.3

%

$

74.3

 

$

1.14

 

$

203.5

 

$

13.2

 

6.5

%

 

 

 

Six Months Ended June 30, 2013

 

 

 

Carlisle Companies Incorporated

 

Carlisle Transportation Products

 

 

 

 

 

 

 

Income from

 

Diluted Earnings

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

Continuing

 

per Share from

 

 

 

 

 

 

 

 

 

EBIT

 

Margin

 

Operations

 

Cont. Ops.

 

Sales

 

EBIT

 

EBIT Margin

 

As Reported

 

$

92.6

 

5.0

%

$

63.5

 

$

0.98

 

$

430.9

 

(72.3

)

(16.8

)%

Goodwill impairment

 

100.0

 

5.4

%

66.1

(1)

1.02

(1)

 

100.0

 

23.2

%

Excluding Goodwill impairment

 

$

192.6

 

10.4

%

$

129.6

 

$

2.00

 

$

430.9

 

$

27.7

 

6.4

%

 


(1) Goodwill shown net of tax benefit of $33.9 million

 

Non-GAAP results for segment EBIT, consolidated EBIT and consolidated Income from Continuing Operations for the three and six month periods ending June 30, 2013 are presented to exclude the impairment charge at Carlisle Transportation Products recognized during the second quarter of 2013. 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

 

 

 

June 30,

 

December 31,

 

(Dollars in millions except share amounts)

 

2013

 

2012

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

168.2

 

$

112.5

 

Receivables, less allowance of $5.6 in 2013 and $6.0 in 2012

 

597.5

 

482.7

 

Inventories

 

493.0

 

538.0

 

Deferred income taxes

 

42.9

 

43.1

 

Prepaid expenses and other current assets

 

26.7

 

29.0

 

Total current assets

 

1,328.3

 

1,205.3

 

 

 

 

 

 

 

Property, plant and equipment, net of accumulated depreciation

 

634.5

 

637.1

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Goodwill, net

 

858.0

 

958.8

 

Other intangible assets, net

 

596.4

 

617.5

 

Other long-term assets

 

34.4

 

38.6

 

Non-current assets held for sale

 

10.8

 

 

Total other assets

 

1,499.6

 

1,614.9

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,462.4

 

$

3,457.3

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt, including current maturities

 

$

 

$

 

Accounts payable

 

283.5

 

259.7

 

Accrued expenses

 

164.8

 

193.3

 

Deferred revenue

 

16.9

 

17.6

 

Total current liabilities

 

465.2

 

470.6

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

Long-term debt

 

752.6

 

752.5

 

Deferred revenue

 

138.3

 

135.4

 

Other long-term liabilities

 

265.1

 

310.7

 

Total long-term liabilities

 

1,156.0

 

1,198.6

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred stock, $1 par value per share. Authorized and unissued 5,000,000 shares

 

 

 

Common stock, $1 par value per share. Authorized 100,000,000 shares; 78,661,248 shares issued; 63,516,542 outstanding in 2013 and 63,127,299 outstanding in 2012

 

78.7

 

78.7

 

Additional paid-in capital

 

188.0

 

171.4

 

Deferred compensation equity

 

3.3

 

0.6

 

Cost of shares in treasury - 14,901,476 shares in 2013 and 15,249,714 shares in 2012

 

(211.1

)

(215.4

)

Accumulated other comprehensive loss

 

(43.7

)

(35.5

)

Retained earnings

 

1,826.0

 

1,788.3

 

Total shareholders’ equity

 

1,841.2

 

1,788.1

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

3,462.4

 

$

3,457.3

 

 



 

Carlisle Companies Incorporated

Unaudited Condensed Consolidated Statements of Cash Flows

 

 

 

Six Months Ended June 30,

 

(Dollars in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

Net income

 

$

63.4

 

$

152.8

 

Reconciliation of net income to cash flows from operating activities:

 

 

 

 

 

Depreciation

 

39.4

 

37.0

 

Amortization

 

20.5

 

15.5

 

Non-cash compensation, net of tax benefit

 

8.6

 

4.0

 

Gain on sale of businesses

 

 

(3.7

)

(Gain) loss on sale of property and equipment, net

 

0.9

 

0.8

 

Impairment of assets

 

100.0

 

 

Deferred taxes

 

(46.3

)

(4.3

)

Foreign exchange (gain) loss

 

(0.1

)

 

Changes in assets and liabilities, excluding effects of acquisitions and divestitures:

 

 

 

 

 

Receivables

 

(118.3

)

(138.7

)

Inventories

 

42.7

 

(2.4

)

Prepaid expenses and other assets

 

5.7

 

23.6

 

Accounts payable

 

24.8

 

49.7

 

Accrued expenses and deferred revenues

 

(26.6

)

14.0

 

Long-term liabilities

 

6.0

 

5.2

 

Other operating activities

 

(1.2

)

0.8

 

Net cash provided by operating activities

 

119.5

 

154.3

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Capital expenditures

 

(49.4

)

(60.6

)

Acquisitions, net of cash

 

 

(49.3

)

Proceeds from sale of property and equipment

 

0.3

 

 

Proceeds from sale of businesses

 

 

25.8

 

Net cash used in investing activities

 

(49.1

)

(84.1

)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Net change in short-term borrowings and revolving credit lines

 

(0.1

)

(64.3

)

Dividends

 

(25.6

)

(22.5

)

Stock options and treasury shares, net

 

11.8

 

18.5

 

Net cash used in financing activities

 

(13.9

)

(68.3

)

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

(0.8

)

0.2

 

Change in cash and cash equivalents

 

55.7

 

(5.8

)

Cash and cash equivalents

 

 

 

 

 

Beginning of period

 

112.5

 

74.7

 

End of period

 

$

168.2

 

$

76.8