Carlisle Companies Report Record Cash Flow In spite of Automotive Products.
CHARLOTTE, N.C.--February 6, 2002--Carlisle Companies Incorporated reported record sales of $1.849 billion in 2001, up 4%, or $78 million, from 2000 sales of $1.771 billion.Acquisitions and a 14% increase at the Construction Materials segment accounted for the increase.
Net earnings in 2001 were $24.8 million, or $0.82 per share. Current year results include a $21.5 million or $0.70 per share after tax restructuring charge recorded in the first quarter 2001. After factoring out the effect of this restructuring charge, net earnings were $46.3 million or $1.52 per share, compared to 2000 net earnings of $96.2 million, or $3.14 per share. Reduced production levels and competitive pricing pressures were the primary factors that influenced the unfavorable earnings results in 2001.
For the fourth quarter, Carlisle reported sales of $433.5 million, an increase of 5% over fourth quarter 2000 sales of $413.3 million. Earnings in the fourth quarter were $7.6 million, or diluted earnings per share of $0.25, compared to 2000 fourth quarter net earnings of $10.6 million, or $0.35 per share.
Rick McKinnish, Carlisle's President and CEO said, "Throughout the year our operating divisions responded to the recessionary economic conditions they faced by reducing production levels and costs, cutting inventory, and improving cash flow. As a result of their actions we were able to reduce working capital and generate a record amount of cash flow from operations in 2001. We also believe the aggressive actions taken in the first quarter of 2001 through the closing of less efficient plants and the subsequent realignment and consolidation of other plants will provide the foundation for growth in 2002 and beyond."
Segment Highlights
Construction Materials sales of $111 million in the fourth quarter increased 12% over 2000 fourth quarter sales of $99 million. Sales of $465 million in 2001 grew 14% over 2000 sales of $407 million, with the more significant growth noted in shipments of rubber and plastic roofing membranes and accessories, insulation, and sales generated through the 2001 acquisition of EcoStar. Carlisle Coatings & Waterproofing continued to show improvement in sales of their adhesive tape and sealant products. Fourth quarter segment earnings of $14.0 million were up 23% over $11.4 million in the fourth quarter, 2000, and earnings in 2001 of $60.2 million were 5% above $57.5 million realized in 2000.
Industrial Components sales increased 14% from the fourth quarter 2000 while earnings were down 31%. Segment sales of $679 million for 2001 were up 6% over $642 million realized in 2000. Acquisitions drove the increase in sales for this segment. Segment earnings in 2001 decreased to $37.1 million from $76.1 million in 2000. Although acquisitions completed in the year were accretive, earnings in this segment fell due to lower demand and reduced production levels as all divisions brought inventories in line with sales demand.
Automotive Components sales were down 21% in the fourth quarter and earnings were 41% lower than last year. The fourth quarter 2001 was the fifth consecutive quarter-over-quarter reduction in North American vehicle production. Sales of $252 million in 2001 were down 17% from $302 million in 2000. This segment continued to experience an overall reduction in vehicle production build rates throughout 2001. Despite the very robust vehicle sales reported during the latter part of 2001, vehicle production volumes still trailed the prior year. Segment earnings of $10.5 million were below 2000 net earnings of $21.4 million. Most of the reduction in earnings was due to the decrease in net sales, and lower production levels experienced throughout the year.
General Industry sales of $107 million were up 3% over the fourth quarter 2000, and at $454 million at year end were 8% above 2000 net sales of $420 million as a result of acquisitions completed at Carlisle Systems & Equipment. Fourth quarter segment earnings were negative, primarily as a result of unabsorbed fixed overhead costs caused by scaling back production volume at most operations. Competitive pricing and acquisition related costs were also contributing factors. 2001 segment earnings of $9.7 million were down 74% from $37.1 million realized in 2000. Lower sales and margin pressure at all the operations in this segment more than offset the earnings from acquisitions.
Cash Flows
Cash flow from operations in the fourth quarter was $85 million, up from $58 million in 2000. Total year cash flow from operations of $223 million, includes $63 million associated with the accounts receivable securitization program implemented in 2001. Without giving effect to this program, cash generated from operations of $160 million compares favorably to $125 million in 2000. This improvement is primarily the result of working capital reductions at most Carlisle operations. Excluding acquisitions, inventories decreased $54 million from December 31, 2000.
Backlog
Backlog at December 31, 2001 was $288 million, compared to $273 million at the end of the third quarter and $266 million at December 31, 2000. The increase is attributable to acquisitions.
Carlisle is a diversified global manufacturing company serving the transportation, construction, commercial roofing, automotive, pharmaceutical, food service and data transmission industries.
CARLISLE COMPANIES INCORPORATED
December 31, 2001
FINANCIAL RESULTS
(In millions, except per share data)
2001 2000 % Change
Fourth Quarter
Sales $ 433.5 $ 413.3 5%
Net Earnings 7.6 10.6 -28%
Basic E.P.S. $0.25 $0.35 -28%
Diluted E.P.S. $0.25 $0.35 -28%
Twelve Months 2001 2000 % Change
---- ---- --------
Sales $ 1,849.5 $ 1,771.1 4%
Net Earnings 24.8 96.2 -74%
Basic E.P.S. $0.82 $3.18 -74%
Diluted E.P.S. $0.82 $3.14 -74%
2001 SEGMENT FINANCIAL DATA
(In millions)
DECEMBER - QTR 2001 2000
---- ----
EBIT EBIT
Sales EBIT % Sales Sales EBIT % Sales
----- ---- ------- ----- ---- -------
Construction
Materials $ 110.6 $ 14.0 12.7% $ 99.2 $ 11.4 11.5%
Industrial
Components 162.1 5.1 3.1% 141.9 7.4 5.2%
Automotive Components 54.3 2.0 3.7% 68.9 3.4 4.9%
General Industry 106.5 (1.4) -1.3% 103.3 5.8 5.6%
------ ----- ----- ----
Subtotal 433.5 19.7 4.5% 413.3 28.0 6.8%
Corporate - - (3.6) - - - - (3.0) - -
------ ----- ----- -----
Total $ 433.5 $ 16.1 3.7% $ 413.3 $ 25.0 6.0%
DECEMBER -YTD 2001 2000
---- ----
Sales EBIT Assets Sales EBIT Assets
----- ---- ------ ----- ---- ------
Construction
Materials $ 464.9 $ 60.2 $ 206.0 $ 407.0 $ 57.5 $ 258.6
Industrial Components 679.0 37.1 660.7 641.7 76.1 495.0
Automotive Components 252.0 10.5 120.5 302.4 21.4 139.2
General Industry 453.6 9.7 332.8 420.0 37.1 337.2
------ ---- ----- ----- ---- -----
Subtotal 1,849.5 117.5 $ 1,320.0 1,771.0 192.1 $ 1,230.0
Corporate - - (50.4) 64.4 - - (13.2) 75.7
------ ---- ----- ----- ---- -----
Total $ 1,849.5 $ 67.1 $ 1,384.4$ 1,771.0$ 178.9 $ 1,305.7
CARLISLE COMPANIES INCORPORATED
Comparative Balance Sheet
As of December 31
(In thousands)
2001 2000
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Assets
Current Assets
Cash and cash equivalents $ 15,606 $ 8,967
Receivables 181,570 213,656
Inventories 246,173 277,455
Prepaid expenses and other 109,923 76,399
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Total current assets 553,272 576,477
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Property, plant and equipment, net 447,660 402,614
Other assets 383,439 326,588
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$1,384,371 $1,305,679
===================================
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt, including current
maturities $ 17,688 $ 58,762
Accounts payable 137,098 108,484
Accrued expenses 128,858 97,039
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Total current liabilities 283,644 264,285
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Long-term debt 461,379 396,864
Other liabilities 99,064 96,651
Shareholders' equity 540,284 547,879
----------------------------------------------------------------------
$1,384,371 $1,305,679
===================================
CARLISLE COMPANIES INCORPORATED
Consolidated Statement of Earnings
For the periods ended December 31
(In thousands except per share data)
Fourth Quarter
2001 2000 % Change
----------------------------------------------------------------------
Net sales $ 433,498 $ 413,251 4.9%
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Cost and expenses:
Cost of goods sold 370,738 345,695 7.2%
Selling and administrative
expenses 48,649 38,178 27.4%
Research and development expenses 4,562 4,417 3.3%
Restructuring charges - - -
Other (income) & expense, net (6,562) - -
----------------------------------------------------------------------
Earnings before interest & income
taxes 16,111 24,961 -35.5%
Interest expense, net 5,256 9,434 -44.3%
----------------------------------------------------------------------
Earnings before income taxes 10,855 15,527 -30.1%
Income taxes 3,285 4,956 -33.7%
----------------------------------------------------------------------
Net earnings $ 7,570 $ 10,571 -28.4%
% of Net Sales 1.7% 2.6%
Basic earnings per share $ 0.25 $ 0.35 -28.6%
----------------------------------------------------------------------
Average shares outstanding
(000's) - basic 30,262 30,253
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Diluted earnings per share $ 0.25 $ 0.35 -28.6%
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Average shares outstanding
(000's) - diluted 30,353 30,565
----------------------------------------------------------------------
Dividends $ 6,422 $ 6,050
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Per share $ 0.21 $ 0.20 5.0%
----------------------------------------------------------------------
Twelve Months
2001 2000 % Change
----------------------------------------------------------------------
Net sales $ 1,849,477 $ 1,771,067 4.4%
----------------------------------------------------------------------
Cost and expenses:
Cost of goods sold 1,527,620 (a) 1,402,683 8.9%
Selling and administrative
expenses 207,103 176,484 17.3%
Research and development expenses 17,325 16,463 5.2%
Restructuring charges 32,811 (a) - -
Other (income) & expense, net (2,427) (3,446) -29.6%
----------------------------------------------------------------------
Earnings before interest & income
taxes 67,045 178,883 -62.5%
Interest expense, net 29,120 28,018 3.9%
----------------------------------------------------------------------
Earnings before income taxes 37,925 150,865 -74.9%
Income taxes 13,084 54,685 -76.1%
----------------------------------------------------------------------
Net earnings $ 24,841 $ 96,180 -74.2%
% of Net Sales 1.3% 5.4%
Basic earnings per share $ 0.82 $ 3.18 -74.2%
----------------------------------------------------------------------
Average shares outstanding
(000's) - basic 30,260 30,239
----------------------------------------------------------------------
Diluted earnings per share $ 0.82 $ 3.14 -73.9%
----------------------------------------------------------------------
Average shares outstanding
(000's) - diluted 30,450 30,599
----------------------------------------------------------------------
Dividends $ 24,883 $ 22,989
----------------------------------------------------------------------
Per share $ 0.82 $ 0.76 7.9%
----------------------------------------------------------------------
(a) Restructuring charge reduced by $4,883 as a result of
reclassification to Cost of goods sold
CARLISLE COMPANIES INCORPORATED
Comparative Consolidated Statement of Cash Flows
------------------------------------------------
For the periods ended December 31
(In thousands)
Fourth Quarter Twelve Months
2001 2000 2001 2000
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Operating activities
Net earnings $ 7,570 $ 10,571 $ 24,841 $ 96,180
Reconciliation of net
earnings to cash flows:
Restructuring Charge 24,650
(Gain) Loss on property,
equipment & business (4,872) 2,871 (4,880) 2,871
Depreciation and
amortization 9,881 13,539 63,960 59,549
Working capital 66,748 28,949 119,409 (30,671)
Other 5,789 2,204 (4,697) (2,803)
----------------------------------------------------------------------
Net cash provided by
operating activities 85,116 58,134 223,283 125,126
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Investing activities
Capital expenditures (15,403) (9,728) (64,525) (59,419)
Acquisitions, net of cash 788 (3,461) (174,618) (209,454)
Proceeds from sale of property,
equipment and business 13,327 729 20,012 782
Other 5,995 (7,865) 1,397 (4,174)
----------------------------------------------------------------------
Net cash used in
investing activities 4,707 (20,325) (217,734) (272,265)
----------------------------------------------------------------------
Financing activities
Net change in short-term debt
and revolving credit lines (75,076) (53,710) 29,077 171,773
Proceeds from long-term debt 163 - - -
Reductions of long-term debt - (352) (793) (2,616)
Dividends (6,422) (6,050) (24,883) (22,989)
Purchases of treasury shares
and stock options, net 1,384 1,757 (2,311) (479)
----------------------------------------------------------------------
Net cash (used in) provided
by financing activities (79,951) (58,355) 1,090 145,689
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Change in cash and cash
equivalents 9,872 (20,546) 6,639 (1,450)
Cash and cash equivalents
Beginning of period 5,734 29,513 8,967 10,417
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End of period $ 15,606 $ 8,967 $ 15,606 $ 8,967
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