Carlisle Companies (CSL) 21 Jul 202020 Q2 Earnings call transcript

Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies Second Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, we will conduct a question-and-answer session. turn over to Mr. like would the to call I Relations President Planning Jim Vice Investor and Giannakouros, Carlisle's of Financial and Analysis. Jim, ahead. please go

Josh. Relations results call on www.carlisle.com find after both and slide everyone, market closed XXXX presentation We Good press section. you Carlisle's the the our in you, can And released financial quarter call. earnings at release welcome quarter our second our website today. second Investor conference Thank to afternoon, and earnings

today are Executive the me discussing position. quarter second Koch, Bob Chairman, Roche, On Chief around Chief with current the experienced and Today's second performance Chris Chris President and provide XXXX. context will begin our Officer; our discuss during call and business financial trends with Bob confidence Carlisle's and quarter Vision call in Financial Officer. will achieving

Following the up will Chris line for we Bob's and open remarks, questions.

decision. press results file with considering XX-K the SEC release, our in that, and Chris. making on we this we factors, and turn reports some presentation, certain our With risks Before should investment carefully I from statements X the of materially of differ to call review we our expectations in A to in are affect discussion during COVID-XX. read that filings may provided impacts of refer and Slide Carlisle from due and our SEC may begin, a note investing that over to uncertainties results and may call Those number where including be please our made Forms of XX-Q. actual these the forward-looking an statements before

to centers the is these comments. guidelines, global each continuing to proud am and of X, a at environment begin and like around Carlisle's to and afternoon, and rigorous X, safety I'd limitations, ability their Good communities execute contributors supportive operate everyone. Carlisle's to local by a high Jim. Please remaining in our to these saying and and times. critical despite X their distribution rallied Their all employees and of borne uncertain out and our Slides have for other, while factories opening perseverance Thanks, work home families customers how team I level to safe communities. and commendable. dedication to adherence supporting infrastructure, their positive by health global refer

any I in to our transition organization have and like protect families they have second all that our to our highest loss must As Gilberto, members all while virus. employees the saddened would each infections affected, low, the of we quarter family as are the I with is wish Roy, the a and their they efforts of Carlisle we press to I health loss. threat global our Maria, ourselves this weekly remained will loss subject done cannot as since through my we pandemic I without correspondence the reality have mentioned at serious missed. the that as in with leave the is our Carlisle, and And on start that reflect and of priorities. now to overall release, we other results. stating also economy, this to their as the are three be global the best grieve virus

and have and foundation have were as solid pride essential, remained deeply ways, fortunate Vision the to they As been reduced produce helped but a allowed to a virus impacted and progress and to to they uninterrupted XXXX. strong on rely as customers we continue related in layoffs our us employees of initiatives by Throughout the importance them. to a provide our evidence operation second keeping company. quarter, service on minimum, the products key are that has many we that and took in view deemed as the we review which to I design want our hours results, of our the Carlisle the who We reiterate come businesses which in to

did resulted United workforce we to take in reductions particularly in quarter, the most global our States. actions However, that the in

position While we to pleased architectural technologies, of to financial allowing the the us with strong the enable metals, call, model, medical pandemic quarter economic in second to in platforms financial challenges technologies areas our Bob of of growth high a emerging into invest to in core and details but that which Carlisle enable on our fluid CCM We growth prospects. remain the a will leverage more in market earnings want businesses. with the future resilience certainly important I business downturn emerge challenging, financial and was enabling will prolonged weather to growth of some committed our current position touch from us are strong later current to out polyurethanes, potentially provide the continue to and position.

have of we million with the an quarter, credit $X $XXX coupled end of cash second As untapped the facility. billion of

to XXXX. and focused in be contemplated earnings as XXX% for greater strong challenging year. to share situation, free XXth current expect and Vision conversion to I the in with XXXX dynamics absolutely of in direct We increase consecutive cash Despite unknown the on our expect in than fully dividend this a we committed impacts flow per saying and remain rate want in September $XX

things are to maintaining of new construction. still important downturn. during the is foresee most market following. reroofing replacement an trends distinction of Some positive resilience CCM as demand, well that to global not positioned robust market the conviction is deliver aging a and driven CCM our roofing and with U.S. XXXX, by XXXX Vision We this exhibit the reinforced by sales continuing for through ability well driven This growing include infrastructure. need our

strong value remain CCM price cost and in our a lowest status Due We most near-term. disciplined we size we through the the the also CCM's experience our from solution in this through backdrop XX% market. reroofing shipped be typically and best-in-class industry, create structure is and CCM's and price continues cost income envelope the is believe an approaching increased. innovation, of Over building product input have provider variable operating leader lower directly in products anticipate and XXXX's to benefiting scale, the second industry-leading Carlisle and job costs leadership, XX%. quarter, to superior Vision the to structure a and evidenced targeted market percentage site profile the service,

decline right this quarter the lockdown, decline in remain reinforced failing progress the the right the experience of to window As to We third industry sales into important. in the quarter came see to to never despite our in contractors out our Carlisle sales Architectural we CCM the year-over-year smaller significant the made that platforms of on conditions. high-single Architectural revenue sales including metals architectural CCM very flat pleased customers significantly XXXX. post-acquisition with CCM, share, in overall our second much July to drive XX% profitability the the of helping spray will of volumes newer digits Through Provided quarter We CCM. during metals at challenging deliver work improvements, continue more the progress May. quarter. to regain revenue at we and make exceeded place percentage had continues significant within the every efficiency commitment and began June continue than continues, Within product initiatives. declines time. right average at anticipate year-over-year, better trend foam with polyurethanes, to the integration that metals continue the on market of daily time polyurethane the we improvement at to

resilience As expected, CCM's XX.X% Carlisle challenging operating in importantly, the its position market-driven income during profitability of a very the margins experience. and exemplified quarter by Carlisle's second valued

be interconnect travel issue had surrounding effect its addition with next burdened and by forecasted emergence COVID-XX to existing on Boeing will the into restructuring coming that footprint other The production both and an XXXX production substantial As for was line Airbus XXX MAX, acceleration our ongoing aircraft impact right-size of investment airline on and already our years. fleets. of few and our lower business, of in team actions year, platforms. Boeing significantly to expected airline in an the demand over response, immediate initiated manufacturing CIT In in almost

position overall quarter, approximately actions operating and which with income aggressive combined delivering to restructure manage the to despite the over loss as expectations to CIT footprint of costs, reported positioned slight declined able well once-in-a-lifetime for commercial a of and remainder team and talent markets. division, the our While minimal taking declines into in to are improve end invest actions aerospace profitability, only despite in XXXX, expected aerospace we restructuring Ongoing in years, restructuring took action costs currently in continue execute CIT's of to business the greatly new maintaining incurred the resumes. industry-leading our quarter. to assisted maintain XX% ensure when operations actions efficiency we losses products, manufacturing our to the in customer past we in are few our and Despite manufacturing aircraft costs production into are the the accelerated suffer

down recovery year-over-year as Recently, be as and chain a experienced have second aerospace to some for in declines for quarter We quarter in worked continues muted. in forecast signs emerged expect revenue third markets. supply similar the remained passenger aerospace CIT in travel global the inventory the the positive in

with impacted by also that implementing. do COVID-XX aerospace passengers over travel. been are towards we the to development once recent know of While become significantly of of comfortable a higher the should airlines by return a the time levels confident the safety are measures vaccine, we all which air And we will that markets have encouraged accelerate the remain pandemic, announcements progress deployed,

of is, Fileca our rates we seeking fact Boeing's assets expired returning aerospace in remain FAA the to defense purchase completion strategic which with platform. take several the years and XXX driver remains Providien opportunities airline our technologies in space the leveraging in and its approval MedTech will to continue and will the product MedTech in through July space offsetting Providien, investment supplier-of-choice in benefit positioning driven to we advantage We breadth, key growth committed in the that added entered the a RedGroup COVID-XX-related bolt-on and commercial at that our demand last we Prysmian year-over-year and of market build two spending. cable and agreement remain perform MicroConnex, moved technologies opportunities support well. XX% new device acquisition focus aircraft along customers, monitoring medical of and continue We with and in for CIT CIT aircraft on equipment. MAX Recently quarter, resumption concept business to new largest to the key service. area years the X, of disruption. a We technology ago acquired flights acquisitions. step Additionally, for however, both second core grew ultimately the by and the increased with into market. adjacencies acquisitions invest To wire the Despite their a The our and aerospace capabilities geographic broaden of and a medical expanded organic both of with expertise closer clearly, certification from to that markets. LHi medical solution June, customers CIT with declines, are Organically, offset by created component integrated market to that vertically patient

profiles, in in product as anticipated coupled addition, technology CIT's legacy in help margin will contemplated taken have margin medical actions as with improved Vision medical efforts ongoing CIT XXXX. XXXX In COS and lines product overall XXXX rationalization which

surgery towards we and deferrals drivers, while a weakness, bullishness continue. continue, such to key MedTech mix. long-term demand intact, technologies the Our positive in of remains watchful see better as U.S., remains offset trending a balanced and medical profitable hospital CIT's Near-term, we and aerospace CIT MedTech remain CIT revenues procedure elective more particularly and CapEx, on they

third overall second Taken be magnitude declines the as similar quarter revenue CIT together, reported we to year-over-year of in for expect quarter.

impact CFT. had negotiations the an slowdowns. challenging second COVID-XX market production past the exacerbated trade subsequent demand quarter of the and impacted end Turning been that several environment in The by industrial for U.S./China to already quarters

to results, income While laid weighed new of enhancing anticipated greater month continued the and progress were over including XX% margin out each heavily committed the as declines our saw quarter on we throughout share improvement technology. actions year-over-year and the gains XXXX. We second pricing, CFT on in operating revenue Vision market steady than remain initiatives

can be the by spray premium quarter. launch in launched our second differentiated solution for new technology applications initiatives the foam market of Our highlighted

industry-first an spray to We with foam quarter begin polyurethane spray foam are pleased the equipment insulation with third products. combining CFT's CCM's

half its this beginning We focus to are in on also complete made markets, the optimistic quality our in global We the once currently also particularly acquisitions quarter an XX% XXXX. product end all roughly Adhesives, to of second internal Notably, significant quarter CFT's in and Sealants an making are locations. returns. and positive versus stabilization year-over-year, cautiously XXXX to are we will second customer by encouraged in for see our deliver strategic progress we third of experience improved we in are volume CFT initiatives, we delivery decline upgrading XXXX Coupling market lineup. Asia revenues expect demand leverage continues through with and in improvements and results. the improvement signs

Approvals positioned the our to quarter meet to demand of and extended the Turning quarter. the profitability off-highway obtaining over years significant aircraft severe CBF. and to sales vehicle the An including the of second the pandemic revenue for carbon brakes. PMAs given offsetting in recent FAA in actions, Medina actions innovation in We declining investment third this consolidation was drove are is example the quarter less launching global the business, CBF which plant Manufacturer taken CBF's current in already expectations over year-over-year new second of excellent The mid-teens. Parts The CBF's past improve in Tulsa benefit or sales crisis our CBF pressure which anticipate XX% down downturn, products. visible these markets, the of experiencing future few to

CCM, M&A away XXXX, acquisitions and capital pillar a segments. our and to strategic evaluate into continue we to CFT. Moving opportunities from of business Vision and across deploy synergistic remains key CIT,

financial seek track in Vision within and our make exceeding more projected second new processes well operational quarter gains on acquisition us intend environment. rely to and remain we to they our sales to X% and generating and planned flexibility, and our committed as X% generating COS for essential repurchases sheet challenging and in on first businesses savings XXXX. efficiency remain when this is half evidenced the is business by in detail in Bob now our tool system. operations as remained of provide finally, and opportunities review cash to to capabilities we an deployment continue and strength This shareholders. million Our share discussed opportunistic. $XXX past, Notably, operating afforded subdued, cash capital activity financial returning be we the to focus of our deployment X% XXXX. will our of about to flow. efficient continue of Carlisle the for on more than to in Bob? balance the COS quarter, second will And flow

Thanks.

flow, pleased As Chris mentioned credit billion earlier, the under our revolving we had a challenging revenue with and on our earnings our resilience quarter, with cash cash but and of our million and undrawn balance hand strength position, $XXX of $X I'm the facility. sheet of liquidity

the the time. now credit the As to first in financial from quarter, we repaid $XXX due as of second quarter instability the facility in stabilized. a drew revolving X.X% the at presentation. our sales X point the on Slide markets turn that late Please million of FX Organic XX market was reminder, billion. credit contributed Revenue fully This a to quarter was quarter for XX.X%. of revenue decreased $X and the basis declined revenue headwind. Acquisitions bridge to the growth XX.X% in

and Slide material, Turning Offsetting margin offsetting Restructuring added was contributed point and XX Slide costs basis contributed these, to other to Volume and a last operating and points. rationalization an XXX acquisitions second continuing basis which while as restructuring $X.XX. $X.XX, diluted Pricing a basis net expenses points, benefit, XXX freight headwind. were points. On $X.XX bridge basis compares quarter were Partially labor a combined XXX netted bridge. of material, those, $X.XX COVID-related for both netted freight, provided operating operations our costs costs XX were and $X.XX while and and minus point always, declined acquisition-related mix a labor, $X.XX headwind, improvement. headwind, have to minus a raw combined combined year. XXX lower QX we raw were points, EPS decrease, $X.XX basis were costs to headwinds. X. $X.XX X, additional COS year-over-year interest We operating reported margin COS tax price volume and from EPS $X.XX basis headwinds on

the around the managing teams quarter, While earnings. volume represented cost our a mitigate the on to declines most help commendable clearly world impact its headwind job during did significant

price positive driven full-year offset X,XXX savings restructuring basis over by material the Slide quarter XXXX. million executed delivering of foreign and declines operating Now CCM in at turn was savings approximately in CIT's Please cost crisis net Slide headwind. aerospace XX.X%. to margin in volume, where These XX driven XX.X%, COS platform. currency in detail. CCM growth. to let's margin price a turn quarter. X.X% decreased volume by by cost were million trend you basis declined more by XXX revenue of our quarter. well the revenues performance declined COS. review realization by was to commercial actions. the partially price. year-over-year was decline partially and was year, XX% net for the anticipate second driven to second XX segment the by basis XX.X% by results. from Operating $XX points This offset while in At translation raw CIT now $XX negative XX in accelerated realization decline commercial Acquisitions in a CCM, point aerospace contributed point the quarter, revenue CIT's approximately technologies medical partially offset in a see of last X.X%, the We markets, Organic full-year

XX.X% the volume points COVID-XX. declines trade X,XXX lingering the sales offset are FX outlined Operating we Slide from revenue balance to acquisitions negative deleverage temporary also CFT market had XX. an due were in by declined accelerated as primarily closures loss XX COVID-XX-related negative X.X% U.S./China regions Asia. more costs. and volume and XX.X% selected margins was partially a was $X.X Slide and declined added in by significant declines declined lower and to automotive metrics. XX. declines, quarter. plant driven and which effects or quarter efficiencies basis CFT's by impact. CBF's Slides Operating is year-over-year to on and Organic of higher margin SG&A XX.X% XX, and experiencing in sheet related million exacerbated organic restructuring negotiations show decline declined year-over-year, made Turning negative X.X% revenue operating a acute all On XX.X% a COS. results Brexit, still by X.X% the now Europe in

Our ended balance as availability sheet cash line. million with under the remains quarter we of $XXX credit hand our strong and revolver $X in billion

approximately $XX have dividend We June quarter increasing million September totaling and million the deployed X paid repurchasing shares. quarter our consecutive in second We the $XX anticipate for dividend second in our XXX,XXX on year. XXth

investing We generates expenditures, organic in $XXX.X half in Cash for balanced deployment continue opportunistically reminder, capital of year. months CCM and and through to approach And while cash six was million. repurchasing a the manner, also in XXXX actively stronger a second seeking flow of first growth typically disciplined shares, as the a strategic acquisitions. solid capital the synergistic flow

overall cash to conversion Carlisle XXX% the full-year. excess expect of flow We in for generate free

referenced And gave our as third Chris to corporate you outlook for items. Turning affecting XX, earlier in our comparability Slide items here. revenue can see, quarter XXXX. guidance

million be tightened approximately $XX year, plans estimate, we second primarily is future our higher slightly the higher the expected our Corporate costs. for our to to costs. quarter, transaction and restructuring around through we As the move than estimates refined due previous expense

approximately and to depreciation expect to continue be We million. $XXX amortization

be be for and Net our of capital million. back to now expected we continue we with in $XX XX%. to approximately that, million expect our will and call tax the million full-year, year, business to expense invest the expect rate And the approximately For $XXX I now is over turn interest to $XXX to Chris. expenditures

my share. leverage, of utilizing $XX committed Thanks, success foundations XXXX rest earnings objectives, coupled with of created COS directed XXXX our capital Bob. an to defining consistently the our spirit of that efforts with dedicated and with to synergistic ultimately unique express the results and our Vision In increasingly all scale which business continuous families, are deployment. improvement Vision context driving and we associated the of drive remain assures employees XXXX. Vision again When a organic energy, drive entrepreneurial towards billion The to combining I employees, acquisitions long-standing per At within Carlisle, to actions culture, in with closing, and center-led efficiencies, we our want in on decentralization Carlisle's $X and growth driving with focus building to approach management initiatives over thanks those partners that their our and key framework, day-to-day support and success.

of strong the now in our Josh, uncertainty, cash unwavering we resilience the concludes outlook, financial to Given to strategic this in XXXX shown adversity and foundation, services times company to our confident we and Vision are providing has commitment XXX-year history and essential ready plan This formal for questions. products generating our capabilities, remain and our comments. Carlisle's needs. world's

Oppenheimer. Please And your from Blair with first Instructions] comes [Operator ahead. Bryan go question

Good guys. well. everyone is Hope afternoon, doing

Hi, Bryan.

you. Thank

you I recovery then month. was CCM on a could by over little there. And down hoping more some know detail XX%. We was volume tough, is from there April provide

be to you June July So helpful. on offer any May, numbers date could and would

but it has improved want definitely, and any specifics, into well. improved wouldn't give then April was July June in straight worse as I Bryan, and to through

Okay.

going momentum quarter? third some is the there So into

Definitely momentum quarter. the going some into third

you've Got price it. $XX about for half. on million realized And then cost, first the

half. implies we it think should How $XX assume cadence? million that that back quarter? through guide to the updated third of So in about most in Is the comes about reasonable

here today. to then the Yes. going quarter we the are heavily weighted more It's probably third quarter say and I'd be about five, as fourth sitting in to

Got it.

in be drivers or be mentioned about next your what the platforms, have to offset health you you two? of have remarks CCM that we that in If of there cycle. Chris, your the prospects to and year think would likely growth growth confidence take that new in declines newer kind the then is there the about reroofing prepared And the Okay. as of smaller will the revenue construction

to to significant hate a on our getting me that you have to one. Bryan, happy I to been get XXXX back you here now All that I'd going am we've and that. But give and through one. Can what has I being get focused really into with right you? to thought defer let back focus seen. number on without

Okay. Thanks That's fair. guys.

Your next comes Baird. question Wojs from Tim ahead. with Please go

Hey afternoon. guys. Yes. Good

Tim. Hey,

as Maybe in dovetail just the the question how thinking view? I some new you about as CCM, would into I – about maybe dynamics the are look guess versus at has kind your underlying just guess, contractor guess of last how there. to the I you you of reroof I And and XXXX? reroof talk on just mean, you anything backlogs, really changed your base and today go visibility construction that

and bit information, providing with been at relative time typical, then as the roof we Bob we Well, the how we would to of and start any look pretty speculative. I think through we think as builds out look decade. that good to XX-year – further I reroofing I the into a about demand certainly the that look little roofing has be the than at look this period cycle, at that next end and decade in hate

there'll the obviously, be change we developments that XXs. as product think get I some things, into

and through still maybe people and out there. flat, the get quarter contractor as delays through backlog, in requirements just have I can it's the and in in back. occurred and look They obviously roofs. little I still done. second in work that still decline the at May, been that be added prolonged it this the the just work amount the think impacted keep shutdowns the reroofing of market And the you We bit think those. sense is April the backlogs. that all the to relatively we have if to They a only that getting hopefully But same

provide on flat you'll suburban talk that know There’s side, Downtown Manhattan. more working We across for new some country working home. opportunities variability. environments see roof lot been think constructions say, the the habits, than, of I construction about from better different let's a

process, side So can it's the early it construction think that's can said to a roof to I'll being the still like that, think on even go or where old has new to deferred, or be The KMarts in cases, CapEx and Sears be reroofing It I construction side, going done. tell on challenged. little of as that you bit Obviously, happen. are many we've what's give be through the the repurposed. as impacted I example and buildings has to new

So think on in were impacted the quarter but on track We're and from on see and still projects backlog I there. COVID XXXX still into XXXX will just we linger same That through as reduction reroofing our we're the us. on QX, we Obviously, we for second reroofing. of bullish reroofing. don't any into go in

costs the quarter? Okay. if you guess, And I destock think guess you guys to had how much you do in

on But of a better public think carried that? would started about and I And that through, have pretty than thoughts March, I Bob, people it give we end – answer that was Bob, significant. for really and was say it me. significant. you up not were what wanting that is, to would load can that It any was and right impactful. probably was we

overall, down Tim. Yes. XX% mean, I we're

sold you been think you X% of the because So through the sold. can destocking been we that we're time hard in maybe judge customers have would what it's end have don't to the know could from that seeing. data But

last shipped than or quarter. year As quarter Chris on did mentioned call, this the quarter we last this direct more we

to exactly. for quantify hard us really was it that So

cost of annualized charges that? back year guess charges? of, this $XX the savings the the think to $XX cost you. what extent got be and or million cost savings million charges those associated year. then So on sort I savings, of the I What to savings, be the the And you savings have so of would would some get cost kind Okay. let's, would you next around cost just the

costs. we Yes. The stuff you're move issue all did is plant. it's one in is out of in not of reducing quick – but big take like in and with aerospace infrastructure CIT, Tim, this lot mean, a the it the of lot Medina related. there where fixed taking sort the did, is Medina not our capacity massive It's our other I reduction we capability factory and a

So as it on, come soon back, to have back. volumes go will to as long as add costs it going as will be we're some of down these but

makes on Okay. Thanks sense. All luck That half. Good right. guys. second

you. Thank

Your Please go with next from Adam question comes Suisse. ahead. Credit Baumgarten

Hey question. my guys. Thanks for taking

on net Just price. the

better was for it price Is is just raw better price. and a obviously net in ton? a up alone Our contemplates outlook's when the volume today worked outlook within bit you little given oil last more than April, benefit, just qualitatively guided that that,

Yes. Hi, are on I and think a we down weighted then. – prices point right. quarter was a cycle, Adam. barrel. since our is know, think – the was it where a We cost ago $XX mean, had where obviously in oil I I gone It's up is to I to outlook don't

for on we're more price And is time, price confident on how maintaining first be of tied two these quickly we side, they that's flat. cost pretty price to us side, second essentially but the feeling followed volumes. spike the is a going know half tendency do long for run, much we're the to to spike. the the if those year And price So going and half, who then because out all – in usually a cost of further things have to conservative also the we don't quarters

or chasing and bit. If to volumes can we going we So we'll remain play volumes things maintain a some price. get little our and and if maintain flat volumes have tough will feel be down, people growing, share, along we're able to to have

of on, on side they other, two and to exclusive. So aren't we're mutually together going with balance the trying what's those one

just secondly, commercial I backlogs, Or back by anything to consistent seeing? out, jumping contractor point? the regionally guess whether pretty what just or it's it you're all at then that's even this is vertical

between been there's some verticals. the of No, some deviation

around seen bit acceleration spending. and pretty we've even a I think little educational consistent of maybe some

Obviously, understands down. Some of what's the the retail happening. has and there been everyone impacts

when impact that side, it's again, the our see those see that you it on verticals. thing. see I roof that the or construction think across Dodge and differences side, within that, the spread fix on But in we reports, think So I kind because most would to of on got Again, in new occurs. you've same would the don't some it verticals business you replace of reroofing again,

Thank you. Great.

Yes. Thanks Adam.

question next Markets. from Please Garik ahead. Capital Shmois Your go Loop with comes

thanks. Hi,

follow-up Just shipping being Do of you permanent on wanted to up think to to this think the shift that the restocking destocking end quarter? here normalize the do you a question. by Or direct-to-jobs-site could third is that phenomenon? maybe end going

going the to Well, first I'll I a permanent it's don't be think phenomenon. take one.

distributors store set I the of lot it, very that. returns a that’s as are in but think and it mandate of really the hurts you a to you're our some role efficiency I we're that a jobs is, not mean, the you We then on that material some distributor, get do People that. There's business do can can't a you of confidence because normalcy. come that's restrictions. and sitting the smaller, do thing stuff key not We deliver of into play the of to we up a And size don't moving distributorship and they some to on we do you're of site. will the see I want side that construction that it. And think the inventory if restocking anymore. resumption costing all doing on dollars sudden in that or your you're packaging

I stabilize think think the we'll the pre don't big So see restocking there. things we'll I would've restocking do and some seen we as see season.

dealt with that. into think done that with third getting quarter, we're and the I we've

Bob, on the question, you that. first to handle want So

Maybe you first rephrase Garik. question again? can Hi, your

No.

any I parts I question, timing around phenomenon the was one question, just and to going long-term. a it. mean answered the you guess two really it of think restock sustainable I be is if

there. So you. I'm Thank good

to trends then just we've you virus those the regions is into late question in newly back? into of of conversely, any demand the impacted any guess virus? out shutdowns Second Northeast July that South, in quarter are on June had impacted some And those that as gotten is and some see more with there spreading by the the Did change I the you markets CCM, stood in regional come in April.

for is of of Florida That We been Texas, impacted down. were things. up Washington We real Florida, states City affected. be bit had crisis, had those this the obviously think In any shut hot and, good. Those down. down. had We first part a in was good. has Boston York shut to areas, New I been shut Pennsylvania shut Texas early in these us. states little new good that. have changes it's significant though picking Arizona I mean, down.

extended I some around terms sure restrictions. not facilities construction shutting I'm last week down of think at but employees they impact our industry had Pennsylvania further within into sites, our the they in job did Carlisle Pennsylvania. retrenchment

are, stated that and then the guidelines there watch done contractors the have workplace. and of I've see job more few I really can that good think what I to impacted were a those to you happens. states and I implementing we'll have So heavily CDC at a talked I who that were think tell

keep that think I locations to lot their to and contractors distributors we job they're already at But mask and jobs don't people If they're and You're them employed. distancing, down not finding on hand sanitizers a out make work a and it wearing for get of and the put done damper we revenue bit on social efficiency the the again specific a sure doing could site, little has shut and these doing, a that wearing. flow are there. the keep a jobs

you're like would the I relatively kind Okay. you're second the standpoint, was order improvement Thanks. of just this out point? expect end looks if of the for compared quarter. looking flat last third to on as you And revenues CIT. quarter out from in And into of question, a looking in It year, look just sequential the any you book sort sequential in your at CIT wondering just

I so. don't think

you, saw that no coming other will they looking TV one the in meeting. something do lot XXXX in the forecasts, out ever I – everything day, of to a back I Zoom We think hear things different on from a now can we're future. like fly again,

in between in July. not unfolded. any hasn't some the that so did there have So Airbus out know I or there's or probably of in far the new orders version somewhere we're two, June really truth

around Boeing think the with struggling the XXX get We up. MAX that see XXX. I to issues some issues did

think optimistic the great I overly to fourth in think occur it quarter. would is anything to be going

the So same I the think more we'll probably just through at the be end year. of looking of

for Got the help. it. Thanks

You bet.

Your next Kevin comes Research. ahead. Northcoast with go question Please from Hocevar

everybody. Hey

Hey.

that in quarter. remaining I volume seen similarly volume period the pricing with pretty was least continue the on Curious we've we're third given and impressive decline is – in CCM at the that the to declines see flat going impressed expectation to into

attribute just you to do price the in on curious that thoughts what I'm to So – ability hold environment. your that

Kevin committed the around great is people the back what Products right and not our at in similar, mean, teams. really making call commodity. that not selling we the to difficult problems. our with levels, else down Zoom has the sales a I contractors, they but Carlisle leaders. is a solve that's understand I to there to they're I Carlisle, And and our service everybody that what was And product experience, team same value Yes. our a go comes a sure that providing. ability to weekly the They're the systems place, thing. Carlisle it are selling I put can the do on job tell you And out

group waiting don't don't quantify value keep businesses want why are more and the successfully show to distributors. shipped. things of with just crews I pay in get our product experience. their fails our excitement that, And really in with see that products field. they and they board shipments CAF That's new to the Carlisle and our them – up is short want working and to around they it later. others and summing arrive. our to want CCM, for able team for creating lot is too, like differentiators APEEL them I for costs bit CCM They contractors be of are save they systems, that they that, that want on start for standing they what think, people, we a don't a to Some They out around and better little And once

show definitely And created guys prepared release, in the an to little harsher everything. then I might downturn, many bit a value think have and maybe actions talked about, participants, remarks which like opportunity they for during press took roofing in your sounding the the you and you

of you're believe Or of some the at actions guess of you in – curious maybe more quarter? result share, a least So taken did that share, your that lead to gaining are – you do second I thoughts? you've that just as those

No.

from capture people that provide. were pricing away I out that mean, – we to, unacceptable the there of threw and we didn't did there on walk were just that jobs. think a some a we adequately I we value few the held prices lot

show will cost any putting highlighted Those work shortages with still into obviously, jobs. Remember, an actions move typically And distributors. to savings have I interesting people second into if the second and through destocking quarter QX working inventory taken will be we're the think and to shown their there as that contractors we're we we've cause material the couple support measures, we other if efforts quarter. wouldn't QX. in see up as we is up the and and in been those the

quarter. we'll And we'll people to I share that. but how now, haven't and products, So too a shortage obviously, see we'd seen there's right and If in gained any fill were unfolds to that of that point aggressive able third of at step in be prepared that, probably void. the their then we're do that and some

me. Okay, got And you. one last for

that? to Or doing it? you're repair are more CCM, are can Just Just can if kick given any curious all. the seeing noticing needing road customers you with down work they like couple and the before environment, where that not years or seeing replace something patch sticking of you the at a

in in they Boston have say because long would a of limited very me repair weren't mean let's building tell that. a replacement, patch emergency industry. do to only the to the they a my or reason needed the full rather best for the only go access just that. the than exposure repair the doing do I and a to I dealing when and needed. with mean, They going the nobody's was here practices. something, would that be They're patch we're or not restrictions are follow only was I full mean they're if and But because – is could it able best it Yes. an do up to replacement going contractors

that, there was really, of through Carlisle associated just sell good if Carlisle them that with and do jobs. then the it and were did So see I people to and we restrictions work any we get think only that with

just right short a think And any or to on don't job years. you'd so for get couple by going of job They're the for trying a to see drifting I do the customer.

Okay. Makes sense. you. Thank

You're welcome.

with next from Research. David comes Please MacGregor Your Longbow go ahead. question

Good Yes. afternoon, everyone.

Good afternoon.

David. Hey,

energy wins reform of To standards do agenda TPO these if your would could your you roofing your maybe like products – in business? And that from for or efficiency Biden energy this thinking elections extent or of that any the feel any mean products commercial I'm group, an what what fall? benefit but increased the legislation

don't know being see do and can I what about to thing business. related what our local was One building is if Biden doing code he layer would insulation I elected, tell tell of in of for people that you two energy savings we But know back, the that I'll you the insulation Well, look you where those another don't what. buildings. reform growth dramatically the I a polyiso polyiso adding affected understood our things. in was simple can

to to say we be. saw years, to of seven our six, practice. sales And industry in going areas, kind you was polyiso maybe if run polyiso at that growth corresponded lot look the last United see standard you it over that has It can States. I'm in codified years so ago it of the And seven continues that through starting a that. become has nicely

the we so good that. efficiency that benefit sold of, also that's roofs And from around and I'd with call, we membranes people different the and kind sustainable savings things say, on putting lot and one and environmentally together planting things systems we have experience, We've energy our think and more, roof. where what of green can Carlisle putting a of friendly a really stories roofs, ponds creating

I thing much political So it in ways the agenda you And it's momentum are I I that. gained a of reduce it, the a for that right know do that need a I think to and that to administrations know has to green whatever because lot energy more expense think looking in environment. create different some customers our them there, People do don't doing, long-term. are saves to money

to guessing XXXX? to and quantify of back year this project extent going done, I'm you maybe I call, a for is are on Thanks out just you're earlier there's asked what guys coming rather is guess just, your to think that I'm way patterns that year. secondly, now. to And of And business any than done being wondering just volume there that. any seeing is the Okay. then And you comment can question there way to bidding in magnitude right if but or the to saying be terms next on the that any it's to the out? a is sales of quantify push be put way going pushed

probably reroofing just and his done I fit XX% about And idea I we year. guess, in to would years this chart perspective, that a is be after out are and to Bob Bob our to wasn't of can that done you jump next on I think my XX going that that I anything showed on we XX% Give think it think him say goes from it. this. life. But year due coming minute look roofs that back to think

don't And I there's there. think lost that's anything so

that I forward think into next will year. move

be more how we as you winters. I I work difficult we many over projects it an to is, happens, different difficult And want a again for to be going are that next of efficient. for we up have with to more those caught much think then add impact tough year, carries actually, the think we anything? on reroofing, to pretty operate, or pick the it's that biggest will gets obviously, just Bob, to that's get if question many situations our can in. When facing winter, have added environment up contractors for But we've it in a do it backlog. seen them

think people get get the didn't down permits exactly the expect that into within around talk it, to ability that future And Also, aren't done we the No, near-term. ability with and in Chris I is thing said, other that's the sometimes second fact quarter to we quarter XX%, out, offices the the is, jobs today. built kicked as being about Chris. get to a

delaying having on roof. So well a restrictions the the little that's effect as on as

So come that we we expect get as to – the of back end to year. and the

luck. good Okay. Great. Thanks and very much,

Thanks.

you. Thank

Your Please Tiss comes Joel next go BMO from with Markets. ahead. Capital question

Hey is How it going? guys.

good. all We're

You?

All sense to you right. I adjusting talk the of current just savings cost environment. structural right that the you is not if on any wonder reactive XXXX but – can just give guys you the between more that of can word, us are working for sort versus

say which we're of did it, those bring are a here of the structural indirect most But we down mean, right of was aerospace bringing corporate, we is directed Yes. down other close towards are magnitude. most cost CIT sit the both lot CIT, direct restructuring seeing even user of Joel, the was environment as factory one business, businesses, aerospace lot the demand. with the of I what being the at some across just to CCM, cost, not some a but CIT cost large at On change in XX% now. and reactionary quarter, the at with and of the today. they're the workforce in I early would change. structural there is of so some reductions largely volumes smaller infrastructure I a And mean

And Okay. of acquisitions in roughly billion plus billion kind recovery enough then get revenue we have XXXX to is capacity you $X $X think your do whatever guys of for of that you the have goals? ballpark

share. For

absolutely. Yes,

you Well, Thank that's great. so much. Okay.

You bet, Joel. Thank you.

go from comes Capital. question Berenberg next Wang Please Your ahead. with Daniel

my off question experienced this? year, quick in operating headwinds but net reversal versus drove some there improvement of a on I of worth it was last QX, capital anything else have Perhaps primarily Pretty just taking highlighting? question. for sizable obviously Hey Thanks what cash the is a flow. a income just QX I base. lower working guys. was wondering

capital, Yes, a lot it's of working Daniel. good

reduced, tough as sales The receivables. collecting a As in a we’re our job with of did thing receivable that teams impressed CFO, good this environment really our reducing did throughout increase. quarter this one I, days inventory, not

good So receivable that inventory. down. the means our came did managing balances teams job And of a

out to much managing take pushing of as hard out we While quickly, inventory can. as we and a it good did job is

So a working its lot related. of capital

also the see looking to invest We're to CapEx, starving continue the that on not CapEx. We're the in we invest for You'll future. business.

manage. capital working that to it's So able we're

follow-on. just And one Perfect.

seeing, we I suppose, hesitant might alluded the to end sellers You just monetize still any on updates in pipeline last current quarter? the assets? activity the but since to improved environment. Are have briefly this already, M&A Has of

of out funds to we our Yes. back. our Certainly a covered be I bit to the that think, April. hurdles and There's again, flow I a thing much we've in big can how pay – cost then was and on little of sure seeing we've in And always come capital in very are much of delay, the that making seen is, think threat everybody of a focused there. But we use get us think judicious be in bit quarter, the some existential changes. tried We're our deal for in pretty assets second that the some are there I appeared that.

makes so of kind right it and more a and value get both, the can both now, think say. you let's to and buyer And at that seller it's going I agree look think uncertainty difficult when for reach forward, it reasonable

good and you Thank luck. Perfect.

Thank you.

turn call There management for this the are remarks. questions back at closing any no I'll further time. to

stays Well, you thanks second earnings we again, you. speaking forward healthy, thank Carlisle. in hope your call. want participation, and to your Thank to, for Thanks at concludes quarter call. to third Josh. our the I interest look everybody you with XXXX quarter This everyone. We

conference joining. today's This you concludes for call. Thank

You disconnect. now may