CSL, Carlisle Companies Reports a 39% Increase in First Quarter Earnings on Record First Quarter Sales.Business Editors CHARLOTTE, N.C.--(BUSINESS WIRE)--April 15, 2004 Carlisle Carlisle, city, England Carlisle, city (1991 pop. 72,006) and district, Cumbria, NW England, near the junction of the Caldew, Eden, and Petteril rivers. The city of Carlisle is an important rail center. Companies Incorporated (NYSE NYSE See: New York Stock Exchange :CSL (Computerese as a Second Language) Said of people who love to speak high-tech words even though they often use them erroneously. See TLA. 1. CSL - Computer Structure Language. A computer hardware description language, written in BCPL. ) reported net earnings of $23.7 million, or $0.76 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) on record first quarter sales of $562.3 million, an 18% increase over first quarter 2003 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. changes in foreign currency rates. The impact of foreign currency rates on net earnings was negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . . 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 The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs, compared to a $0.01 per share (diluted) charge in the first quarter 2003. Richmond Richmond, cities, United States Richmond. 1 City (1990 pop. 87,425), Contra Costa co., W Calif., on San Pablo Bay, an inlet of San Francisco Bay; inc. 1905. McKinnish, Carlisle's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. 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 op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $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 EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and 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 earnings at Carlisle SynTec, partially offset by a $1.1 million charge for plant closure and severance costs at Carlisle's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. 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 North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. 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 spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. trailers, aluminum dumps DUMPS a lethal inherited disorder of Holstein cattle that causes infertility. The name is an acronym of Deficiency of Uridine MonoPhosphate S , pneumatic pneumatic /pneu·mat·ic/ (noo-mat´ik) 1. pertaining to air. 2. respiratory. pneu·mat·ic adj. 1. Of or relating to air or other gases. 2. 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 sales mix See product 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 (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers were offset by lower sales of aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. 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 The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. net sales were 38% over the first quarter 2003 with approximately two-thirds of the increase attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk 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 Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses 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 utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. 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 Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . 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 insulation (ĭn'səlā`shən, ĭn'sy  –), use of materials or devices to inhibit or prevent the conduction of heat or of electricity. 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 ReceivablesAn asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed 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 1st Qtr. 1st Qtr.
(In Millions) 2004 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 Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. The March 31, 2004 backlog of $430 million was 38% above $312 million at March 31, 2003 and was above $419 million at December December: see month. 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 Thursday: see week. , April 15, 2004 at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York 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 A presentation graphics program from Microsoft for Macintosh and Windows. It was the first desktop presentation program for the Mac and provides the ability to create output for overheads, handouts, speaker notes and film recorders. slide presentation that corresponds to the conference call will also be available for viewing and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. printing at the same website location. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 diversified (di·verˑ·s global manufacturing company serving the transportation, construction, commercial roofing, automotive, pharmaceutical, foodservice, data transmission, and specialty tire and wheel industries.
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 expense, 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 December 31
2004 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
----------------------------------------------------------------------
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