EX-99.1 3 a04-4482_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

CSL04005

 

04/15/04

 

(CSL)   Carlisle Companies Reports a 39% Increase in First Quarter Earnings on Record First Quarter Sales

 

CHARLOTTE, NORTH CAROLINA, April 15, 2004...Carlisle Companies Incorporated (NYSE:CSL) reported net earnings of $23.7 million, or $0.76 per share (diluted) on record first quarter sales of $562.3 million, an 18% increase over first quarter 2003 net sales of $475.7 million.  Net earnings were 39% above the first quarter 2003 net earnings of $17.1 million or $0.56 per share (diluted).

 

Strong organic net sales growth of $82.3 million, or 17%, included $7.1 million of favorable changes in foreign currency rates.  The impact of foreign currency rates on net earnings was negligible.  The growth in net sales was primarily in the General Industry, Industrial Components, and Construction Materials segments.  Acquisitions contributed $6.6 million of the growth in the first quarter 2004 net sales, partially offset by $2.3 million in divestitures.

 

Net earnings in the first quarter 2004 included a $0.05 per share (diluted) charge related to plant closure and severance costs, compared to a $0.01 per share (diluted) charge in the first quarter 2003.

 

Richmond McKinnish, Carlisle’s President and CEO said, “We are encouraged by our strong organic sales growth and our earnings performance in the first quarter.  The introduction of new products, improved manufacturing efficiencies and cost containment efforts have enabled us to improve operating results in the face of significant raw material cost increases.  Actions are underway to obtain selling price increases to offset the steep rise in raw material costs.  We are optimistic about obtaining selling price increases; however, due to the volatility of raw material costs we are maintaining our 2004 net earnings guidance at $3.25 to $3.40 per share.  Our guidance includes plant closure and severance costs of approximately $0.10 to $0.20 per share.”

 

First Quarter Highlights

 

Industrial Components net sales in the first quarter 2004 of $195.8 million were 19% above $165.3 million in the first quarter 2003.  First quarter 2004 net sales at Carlisle Tire & Wheel Company were 18% above the first quarter 2003 as a result of increased sales across all product lines.  Power Transmission net sales were 20% above the first quarter 2003 with sales improvement in the lawn and grounds care, agricultural, recreational and international sales markets.  First quarter 2004 earnings before interest and income taxes (“EBIT”) of $21.6 million were 13% above $19.1 million in the first quarter 2003.   Earnings did not keep pace with the

 

 

increase in net sales due to the rising raw materials cost.  Prices for oil-based commodities used in tire manufacturing remain at or near all time highs.

 

Construction Materials net sales of $122.8 million in the first quarter were 25% above the first quarter 2003 net sales of $98.4 million with improved sales for all product lines.  First quarter 2004 EBIT of $6.6 million was 5% above the first quarter 2003 EBIT of $6.3 million.  The first quarter 2004 EBIT includes an 18% increase in earrings at Carlisle SynTec, partially offset by a $1.1 million charge for plant closure and severance costs at Carlisle’s European roofing joint venture (“Icopal”).

 

Automotive Components net sales of $55.1 million in the first quarter 2004 were slightly below the first quarter 2003 of $56.3 million.  The decline in net sales is the result of lower North American vehicle production at Carlisle Engineered Products’ major automotive customers.  First quarter 2004 segment EBIT of $2.4 million was 23% below the first quarter 2003 of $3.1 million as a the result of lower sales, and higher labor and material costs associated with new production programs at its manufacturing plants.

 

Transportation Products net sales of $32.6 million were 16% above first quarter 2003 net sales of $28.1 million.  The improvement in net sales was a result of higher shipments of specialized trailers, aluminum dumps, pneumatic and live-bottom trailers.  EBIT of $0.9 million was the same as the first quarter 2003.  The flat earnings were primarily the result of unfavorable sales mix of lower margin products and increased steel prices.

 

First quarter 2004 net sales in the Specialty Products segment of $31.8 million showed a modest increase over the first quarter 2003.  Increased sales to OEM customers were offset by lower sales of aftermarket products.  Segment EBIT of $2.4 million was 71% above $1.4 million in the first quarter 2003.  The earnings improvement was primarily the result of improved manufacturing efficiencies and lower selling and general administrative expenses.

 

General Industry net sales of $124.2 million in the first quarter were 29% above $96.0 million in the first quarter 2003.  Net sales at Carlisle Process Systems were 41% above the first quarter 2003 as a result of increased purchases of cheese and powder capital equipment by dairy and food processors.  Carlisle FoodService net sales were 38% over the first quarter 2003 with approximately two-thirds of the increase attributable to the acquisition of Flo-Pac in the second quarter 2003.  Tensolite net sales were 31% above the first quarter 2003 due to increased sales in all their product lines.  Carlisle Walker net sales in the first quarter 2004 were 7% above 2003.  Total segment EBIT of $9.1 million was 82% above the first quarter 2003 EBIT of $5.0 million as all operations improved their earnings performance.

 

Cash Flow

 

Cash flow from operations was positive $7.9 million in the first quarter 2004 compared with negative cash flow of $15.4 million in the first quarter 2003.  Improved net income and increased utilization of the securitization program attributed to the improvement in cash flow from operations while an increase in working capital to support increased revenues had a negative impact on first quarter 2004 operating cash flow.  Capital expenditures of $17.9 million were 79% above $10.0 million in the first quarter 2003 primarily as a result of new production plants for

 

 

coating and waterproofing products and insulation products for the Construction Materials segment.  Proceeds from the sale of investments, property and equipment include the sale of properties acquired in the acquisition of Flo-Pac.  Free cash flow (cash from operating activities, less the effects of the Company’s receivables securitization program, dividends and capital expenditures) was negative $39.8 million and compared to negative free cash flow of $32.0 million in the first quarter 2003.  The reduction in year-over-year free cash flow reflects the impact of the increase in capital expenditures and working capital partially offset by the improvement in earnings.

 

Reconciliation of Net Cash Used In Operating Activities to Free Cash Flow

 

(In Millions)

 

1st Qtr.
2004

 

1st Qtr.
2003

 

Net Cash Provided by Operating Activities

 

$

7.9

 

$

(15.4

)

Less: Effects of Receivables Securitization Program

 

(23.0

)

—

 

 

 

$

(15.1

) 

$

(15.4

)

Dividends

 

(6.8

)

(6.6

)

Capital Expenditures

 

(17.9

)

(10.0

)

Free Cash Flow

 

$

(39.8

)

$

(32.0

)

 

Backlog

 

The March 31, 2004 backlog of $430 million was 38% above $312 million at March 31, 2003 and was above $419 million at December 31, 2003.  With the exception of Automotive Components, the increase in backlog was across all business segments.  The increase in backlog from the end of 2003 related to the Transportation Products and Construction Materials segments.

 

Conference Call and Webcast

 

The company will discuss first quarter results on a conference call for investors on Thursday, April 15, 2004 at 11:00 a.m. EDT.  The call may be accessed live at http://www.carlisle.com/financials/webcast.html, or the taped call may be listened to at any time shortly following the live call at the same website location until April 29, 2004.  A Powerpoint slide presentation that corresponds to the conference call will also be available for viewing and/or printing at the same website location.

 

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 filings with the Securities and Exchange Commission.  The Company undertakes no duty to update forward-looking statements.

 

 

Carlisle is a diversified global manufacturing company serving the transportation, construction, commercial roofing, automotive, pharmaceutical, foodservice, data transmission, and specialty tire and wheel Industries.

 

 

CONTACT:

 

Carol P. Lowe

 

 

Treasurer

 

 

Carlisle Companies Incorporated

 

 

(704) 501-1100

 

 

http://www.carlisle.com

 

 

CARLISLE COMPANIES INCORPORATED

March 31, 2004

 

FINANCIAL RESULTS

(In millions, except per share data)

 

First Quarter

 

2004

 

2003

 

% Change

 

Net sales

 

$

562.3

 

$

475.7

 

18

%

Net earnings

 

$

23.7

 

$

17.1

 

39

%

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.77

 

$

0.56

 

38

%

Diluted earnings per share

 

$

0.76

 

$

0.56

 

36

%

 

 

 

 

 

 

 

 

Dividends per share

 

$

0.220

 

$

0.215

 

2

%

 

SEGMENT FINANCIAL DATA

(In millions)

 

First Quarter

 

2004

 

2003

 

 

 

Sales

 

EBIT

 

% Sales

 

Sales

 

EBIT

 

% Sales

 

Industrial Components

 

$

195.8

 

$

21.6

 

11.0

%

$

165.3

 

$

19.1

 

11.6

%

Construction Materials

 

122.8

 

6.6

 

5.4

%

98.4

 

6.3

 

6.4

%

Automotive Components

 

55.1

 

2.4

 

4.4

%

56.3

 

3.1

 

5.5

%

Transportation Products

 

32.6

 

0.9

 

2.8

%

28.1

 

0.9

 

3.2

%

Specialty Products

 

31.8

 

2.4

 

7.5

%

31.6

 

1.4

 

4.4

%

General Industry

 

124.2

 

9.1

 

7.3

%

96.0

 

5.0

 

5.2

%

Subtotal

 

$

562.3

 

$

43.0

 

7.6

%

$

475.7

 

$

35.8

 

7.5

%

Corporate

 

—

 

(4.2

)

 

 

—

 

(5.5

)

 

 

Total

 

$

562.3

 

$

38.8

 

6.9

%

$

475.7

 

$

30.3

 

6.4

%

 

 

CARLISLE COMPANIES INCORPORATED

Consolidated Statement of Earnings

For the periods ended March 31

(In thousands except per share data)

 

 

 

First Quarter

 

 

 

2004

 

2003

 

% Change

 

Net sales

 

$

562,314

 

$

475,688

 

18.2

%

Cost and expenses:

 

 

 

 

 

 

 

Cost of goods sold

 

457,962

 

385,520

 

18.8

%

Selling and administrative expenses

 

56,967

 

51,941

 

9.7

%

Research and development expenses

 

5,108

 

4,805

 

6.3

%

Other (income) & expense, net

 

3,522

 

3,088

 

14.1

%

 

 

 

 

 

 

 

 

Earnings before interest & income taxes

 

38,755

 

30,334

 

27.8

%

 

 

 

 

 

 

 

 

Interest expenses, net

 

3,604

 

4,630

 

-22.2

%

 

 

 

 

 

 

 

 

Earnings before income taxes

 

35,151

 

25,704

 

36.8

%

 

 

 

 

 

 

 

 

Income taxes

 

11,424

 

8,611

 

32.7

%

 

 

 

 

 

 

 

 

Net Income

 

$

23,727

 

$

17,093

 

38.8

%

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.77

 

$

0.56

 

37.5

%

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.76

 

$

0.56

 

35.7

%

 

 

 

 

 

 

 

 

Average shares outstanding (000’s) - basic

 

30,971

 

30,608

 

 

 

Average shares outstanding (000’s) - diluted

 

31,268

 

30,705

 

 

 

 

 

 

 

 

 

 

 

Dividends

 

$

6,827

 

$

6,560

 

 

 

Per share

 

$

0.220

 

$

0.215

 

2.3

%

 

 

CARLISLE COMPANIES INCORPORATED

Comparative Balance Sheet

(In thousands)

 

 

 

March 31
2004

 

December 31
2003

 

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

$

30,056

 

$

26,848

 

Receivables

 

242,182

 

218,819

 

Inventories

 

282,142

 

263,275

 

Prepaid expenses and other

 

79,322

 

75,439

 

Total current assets

 

633,702

 

584,381

 

Property, plant and equipment, net

 

445,774

 

454,285

 

Other assets

 

399,289

 

398,243

 

 

 

$

1,478,765

 

$

1,436,909

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Short-term debt, including current maturities

 

$

15,733

 

$

7,505

 

Accounts payable

 

199,852

 

177,957

 

Accrued expenses

 

146,752

 

153,881

 

Total current liabilities

 

362,337

 

339,343

 

Long-term debt

 

293,374

 

294,581

 

Other liabilities

 

171,803

 

171,055

 

Shareholders’ equity

 

651,251

 

631,930

 

 

 

$

1,478,765

 

$

1,436,909

 

 

 

CARLISLE COMPANIES INCORPORATED

Comparative Consolidated Statement of Cash Flows

For the periods ended March 31

(In thousands)

 

 

 

2004

 

2003

 

Operating activities

 

 

 

 

 

Net income

 

$

23,727

 

$

17,093

 

Reconciliation of net earnings to cash flows:

 

 

 

 

 

Depreciation and amortization

 

15,556

 

15,258

 

Loss (earnings) on equity investments

 

4,026

 

2,635

 

Deferred taxes

 

(707

)

—

 

Gain on sales of investments, property and equipment, net

 

(373

)

—

 

Receivables under securitization program

 

23,000

 

—

 

Working capital

 

(56,925

)

(50,959

)

Other

 

(379

)

580

 

Net cash provided by operating activities

 

7,925

 

(15,393

)

Investing activities

 

 

 

 

 

Capital expenditures

 

(17,884

)

(9,982

)

Acquisitions, net of cash

 

(566

)

(1,494

)

Proceeds from sales of investments, property and equipment

 

11,931

 

—

 

Other

 

(784

)

1,322

 

Net cash used in investing activities

 

(7,303

)

(10,154

)

Financing activities

 

 

 

 

 

Net change in short-term debt and revolving credit lines

 

8,200

 

25,991

 

Reductions of long-term debt

 

(1,624

)

(855

)

Dividends

 

(6,827

)

(6,560

)

Treasury shares and stock options, net

 

2,890

 

979

 

Net cash used in financing activities

 

2,639

 

19,555

 

Effect of exchange rate changes on cash

 

(53

)

—

 

Change in cash and cash equivalents

 

3,208

 

(5,992

)

Cash and cash equivalents

 

 

 

 

 

Beginning of period

 

26,848

 

34,768

 

End of period

 

$

30,056

 

$

28,776