Carlisle Companies (CSL) 29 Apr 222022 Q1 Earnings call transcript

Good afternoon. My name is Selena, and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies First Quarter 2022 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 Jim Vice Investor Giannakouros, Carlisle's of Jim, go please ahead.

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

Chief Chris updated the will and and Executive highlights will with quarter our a first and the today our Chairman, On XXXX, details Financial begin call plan, our for achieving strategic Kevin updating Officer; discuss financial are Zdimal, Today's Koch, discussion outlook Chief call Chris our progress XXXX. of Kevin towards record trends. and of Vision President me Officer. with current

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

based that uncertainties, results statements and we a provides Before discussed will include we presentation, our of due begin, where information. statements current press our filings. please in non-GAAP of are SEC refer comments and Carlisle from risks these today X number differ materially Slide on expectations. note which to to release forward-looking financial could Actual

release, the the call and over GAAP measures can reconciliations that, turn will available With find I which You between on to appendix presentation are in and our materials, non-GAAP our press in of our website. Chris.

for our Good joining Thank quarter on and earnings you us you, Jim. call. afternoon, thank everyone XXXX first

having many and come by world. in press Before a the in resolution the the it the we release, We and saddened on situation. individuals to quick ongoing Ukraine, we begin, conflict so as will around hope are is the families the we mentioned impact

a results, I'm challenging Companies to very continues Turning environment. be to delivered outstanding to Carlisle performance in what our announce quarterly pleased

disruptions for And extraordinary our for record significant for operating Before I'd minimize performance to and to contractors distributor efforts commitment results. our levels. to Their and reviewing drove be their thank business our Carlisle. more record in it's that competitive to partners to efforts continue advantage helping like the results teams detail, customers, our a drive

despite labor issues labor prices ongoing chain, rising services. materials, and for All within the significant raw constraints of this supply and

is ultimately Carlisle the deliver promise and of on at improvement Carlisle excellence our goal throughout drive organization, to customers. continuous to Our the experience to and the

team's Our record to Carlisle our performance XXXX. to reflected turn the delivering and remarkable in to Slide quarter first Please X. Vision dedication

XXXX clarity Carlisle's continue its which consistency results since Our to provided the our of efforts XXXX, launch has with record in Vision demonstrate right and the path to guide the for mission future.

share by emphasis first creation. value adjusted operational sustainable and up EBITDA significant our you growth when include organic reshaping $XX plus organic X% These revenue on Allow of a In of multiyear XXXX. and roadmap future financial me In XXXX growth Vision drivers by the strategy. our update line leverage. model, range, of to addition our execute the system to class approximately drive our the growth XX% businesses we over first generation and with on X% X% savings per operating to our placing leverage has to cost scale diversified with with and delivered X% excellent operating We relied for drive process of in Carlisle setting targeting the consistently quarter in synergistic targeted of delivered portion our our strategic and annually. products Vision XXXX business to sales excess of utilize earnings to build drive the acquisitions. XXX%; efficiencies, quarter, of flexibility provide team in sheet to a world strong our to focus, and balance on success A building performing proven cash accelerated flow by we both Carlisle been highest on driven portfolio

portfolio our divestitures in optimized to and highest build building through streamlined our products have scale acquisitions businesses. returning and We

continue invest develop including objective, holistic segment reinforce to Technologies recently we this Weather structure Construction and Our system, Carlisle and exceptional in Materials deployed talent. a the Proofing reinforcing deploy to selection leadership for announced that capital In incorporates mutually and XXXX, and development talent. dividends. caliber share billion of processes $X high the management over tools expenditures, repurchases talent approach And into and

With million million, $XX the businesses, over capital totaling investments $XX of our repurchases $XXX addition of million. paid of first quarter dividends into share

over billion deployed since $X.X XXXX. now launch have Vision the of We

drivers quarter our X. first Slide performance. the record Now turn and look let's return to Please of to the at

of solutions reroofing with confidence First, demand market groups reroofing the low sustainable the be energy sustainable and nondiscretionary decade to requiring continues number segment. for next our above efficient organic CCM. over more slope CCM The at growth driver a underpins

continue should shutdowns, high labor sector. benefit shortages supply and push single-digit disruptions solid created annual reroofing In in COVID-XX chain CCM volume growing and demand, energy new strong mid efficient continued we construction expect demand, solutions. boosted We near-term, to install to from expect the the by demand by pent a construction up continued growth

the employees, Carlisle generated continued equipment for the Second, the in the significant by providing earning wouldn't place, price contribution Under investment provide experience we at And over past is which marketplace decade. be we focus means the quality to our distributors the expect year. R&D, businesses the of partners contractors, delivering of create and in first We facilities, products price invested $X leading our with over in Vision the value healthy of of solutions the quarter. the improvement best price the began on we marketplace or the the building the without Earning on including to continue balance to contributing time. at billion reliably to right able right industry energy guide efficient demonstrate other in we we leadership. experience, capital in and channel XXXX, over profitability Carlisle

we to synergistic Third, accretive acquisitions. seek continue and

restoration, value soon the proposition. a size of solutions served the segment, sales. to and envelope And XXXX. newest balanced was we've markets CWT's Henry created Technologies increased total September Weatherproofing company our of acquisition of potential with exposure Our building Carlisle and after new construction enhances Henry in

driven with expanded center XX% of avenue is another has approximately business. now end segment portfolio solutions; users retail home CWT energy CWT's for increased to looking relevant by solid revenue, efficiency, growth. added Specifically, sustainable a to more for

for by being Vision allocator. capture reiterate $XX focused we've since Carlisle upgraded integration beyond X go to and anticipate of over the a target accretion superior talent As integrating to businesses continues Henry's launching and our Henry's million EPS XXXX, Fourth, capital of around acquired well. we've $X.XX I'm last we on with Notably, our initial remained that and estimate into pleased years, disciplined synergy processes share you XXXX. very XXXX

to capital operating Carlisle strategically flexible dividends, in Our to in M&A. seek of approach. shareholders flow the remain form through financially repurchases, includes just as growth, enables accretive returning mentioned, continuing balanced value approach and to opportunistic order share organic in to heavily cash This I investing drive strong a and,

our turn this XXXX reminder, Building and projects in to consecutive large paying a dividends remain and we with year, share track we be to firmly will deploy And $XXX As Since dedicated XXth capital slide of million dividends. our sustainability, Products please in committed increasing to on growth X. ESG, a segment. expenditures year to remain funding

large buildings buildings. as energy products on over by XX% of model business million were trends of annually use and Approximately is scale, be greenhouse proud operation that energy a more our over are as hours efficient And that ESG the a emissions those are the energy lower $X.X enable of our squarely gas saved sales will buildings. of GHG megawatt fact year buildings. the qualified LEED our emissions We evidenced the efficient global middle attributed XXX in of of products. to of last lifetime their over billion in estimate from products we More

XXXX. have to to year. our and will hours example, customers of building California than more Carlisle's this year nearly insulation and products to contribution XX power or every towards X grow of expected we creating to our a our products enough goal you to household for in And All that I to a Adjusted accelerate. power ask end, related net where As diluted now delivering zero we the sustainable significant segments will saved increased energy megawatt a sales to XXX a last turn to growth. further pivot in XXX% first Revenue in commitment of XX%. Slide with to this XX% Carlisle's planet EPS year-over-year to beyond, performance more contributed revenue years continue organic $X.XX. With year-over-year the increased million make up XXXX. highlight only quarter our progress in

disruptions, more offset than volumes, and quarter. operational teams the cost inflation As faced price during our discipline higher and

constraints. quite X. chain CCM For the top Contractor and product outstanding sales new the its labor demand, growth earned Slide healthy due and activity to highlights, delivered delivering experience. experienced challenges very capturing continued remains raw line are by impact of the when please Carlisle strong. on product solid mix, CCM to quarter that material supply across despite strong and segment severe an turn price backlogs

contractors currently. Our material challenging and some have issues Associated they supply more Contractors, than services supply are industry is according indicating their note of challenge recently labor. than to XX% Builders And biggest setback that with more the continue information construction source to suffered in contractors delivering

it, be reliable for and convert customers. in our held the Given dates. to ship leader on and our CCM market focus with materials to continues accountable sourcing investment products delivery our being

on segment a Carlisle our Weatherproofing sales forma pro basis, supply X, growth Slide all driven in year-over-year Technologies, to up across Moving were segments created XX% shortages. very despite by approximately strong newly

especially drive remain We average tight Despite earn supply volumes in that challenges XXXX. and strong, raw we gives through us a we and of Carlisle order will organization, the products at services. CWT as will our experience its which CCM confidence which labor the market expect value continue nicely to Henry, exceptionally material and

release, Frank and pleased future and and team. of our earnings of the CWT excited are in Reddy our Henry remain the very under out integration to contribution leadership results, new called we As about we with the

to X. the of year-over-year its CIT and and technologies Slide to platforms. the parts pre-pandemic quarter major first aerospace CIT growth now of across 'XX, medical continues XX.X% balanced commercial and stands levels. revenue in Backlog with than increased grow higher Moving

recertification resumption are of XXX of and deliveries year. We encouraged impending accelerating deliveries and the max later XXX the the in by

season CFT. approach production. and for few As the generated summer years to X.X% longer trends change On should a for growth a support travel would the year-over-year. past CFT XX welcome we On resumption be also positive travel. body wide Slide revenue international are term of and This

made year plus We and customer of new realization, the experience. progress to last by operational an price efficiencies, be improved the introduction products, increased CFT continue pleased has including over improved

will details We financial are of goal commonly strong continue margins over actions growth mid confident additional it XXXX. incremental growing to margins And with year. for towards XX% And range in in our revenue our of and incremental these the to updated we deliver turn this competitors. backlog progress combining and outlook plus our Kevin remainder I'll XX% Kevin? seen discuss to the that, with make some

EPS revenue mix adjusted Chris the so volume, growth than comments, highlight Thank move price, you, the driven that labor Chris. negative in growth and will the was I impact to of by on Slide covered inflation. bridge quarter XX. his our materials I has would primarily in offsetting EPS more and

of Additionally, contributed $X.XX in quarter. the acquisition the accretion Henry

million quarter Moving $XX and first authorization quarter. million expenditures hand, XXXX $XX have continuing last million the We currently $XXX to Slide of X share totaling the from cash remaining repurchase during million. XX shares operations, from XXXX. share on of $XXX cash million of in our and with with X.X million XX. repurchases ended generated shares Carlisle Capital of of

the to XXXX. down year our $XXX prepayments for from expected of net of our the senior EBITDA EBITDA balance given X.Xx, are of the end second XXXXX, growth this debt at and in anticipated of Xx half notes Our is

CCM, We year. updated to EBITDA by outlook. to of our debt we're and expect financial On net as as construction energy new Slide mentioned, we work interest demand, strong end XXXX have reroofing seeing as well At below Chris the increasing solutions. Xx XX, in down to the our efficient

and manufacturing to can don't XX% to as We our environment. expect all typical are in XXXX. Notably, be approximately in we CCM revenue experience expect CCM growth selling teams total constrained they this supply at sourcing, seasonality

in $X.XX as approximately the At with and in not that constraints. well. original approximately we of backlogs XX% XXXX. double-digit target CIT, levels coming grow plan, we orders Additionally, continues organically. At with integration in growing to our are navigating expectation reiterate to our efforts we accretion entering spring by to is above in XXXX. expected, revenue our to in our CWT, as for with mentioned CFT, high-teens But both XX% thus Chris we expect our the and winter Henry would contend aerospace growth for including revenue medical With XXXX. earlier, growth we months. increasing guidance are typically have supply tracking inventory encouraged XX% year-over-year. At built low we businesses, revenue maintain

together Finally, over growth XX% whole, pieces to revenue in adding of we the a for XXXX. Carlisle expect as deliver

pricing Given COS. fundamentals our businesses, the proactive staying driving actions across through with and strong of strong inflation leverage ahead

expect margins expand full We basis to Carlisle total adjusted in year XXXX. XXX approximately EBITDA points

the over see turn are other now $XXX that, spend Chris? unchanged our certain segments. estimate with items Product on in accelerate Slide it from CapEx up Chris expenditures, remarks. Building exception. the to most previous closing of You XX can projects for expect $XXX we I of on million capital our million as to We With

credible marketplace global in experienced XXXX. onset we In complicated significant changes deal closing, for to of of and labor we've then, serious uncertain the pandemic and materials. global that in by February Kevin. political this ongoing with Europe. environment Thanks, the raw Since a implications Eastern evolving in and since early complex, year, deadly had an conflict demand the markets And and continue fluctuations

these to on And their them would and our of employees. resilience, behalf the I improvement. positive things continuous thank living like challenging attitudes, have for incredibly of workplace for All of for culture our more made Carlisle,

ready That fundamentals disclose GAAP comments. share we results, that significant this solid businesses proud extremely our first of stable outlook of expectation we formal the deterioration remain trending global is remain questions. of operator quarter With our economy markets for our executing and our further conclude occur, to record chain all earnings with And I inflationary exceed our our of demand intact. navigate supply challenges, our for year. While and well, remainder now XXXX. no Vision teams XXXX should will of our our positively, of and businesses are continue to that, the and we per $XX for goal am that segments With all

Tim Instructions] [Operator proceed. The comes Please first from with Baird. Wojs question

afternoon. Good guys. Hey, Nice job.

Hey, Tim. Good afternoon.

about and growth off you. kind you're Maybe growth year? just of guidance business. the of of, kind the of you CCM in there relative start to kind give ranges on the for way kind volume the to just think Is price CWT that Thank quarters any then flavor side the a what's us here. what the When to respective you in the and seeing saw volume into the built business

Tim. Yes,

broken for talked So, margin be margin you both CCM on to CWT segments in we've different side. about revenue really trying basis we full reasons. on where of the trying two to price to points the that added year. XXX That's But break give as the last in volume, we're the where more the going into quarter as with the different well not outlook competitive out that that out we expansion full that for side and clear areas we're now and as

Okay.

just kind seeing things color about maybe seem like like just Waterproofing, can of does you where even of on the building just some you're just at even even and actually this -- because to and you give guess TTM and when though kind I you're of point, backlog activity bidding the think maybe us of And kind extend you're delivering on these numbers. and orders types Okay. side, backlog it

of bit little of just an there. kind what So a of kind update seeing you're on

Yes, Tim. Chris here.

five let's went at -- about way, months. a think a looking process, allocation bit think different we're I really backlog, new the So, which little because a through it of we about

in that in the contractors that's in good of on added then have dealing So, say I our supply touch immediate about, construction in new team now the seeing, healthy we our so we've the quarter the access jobs talked and supply, labor. and reroofing Then a on with we done. make the then and look years to few remain what to constraints allocate which give they it. add and just for first we sure what got element trends to we would and order terms distributors they you industry, and to is And I build orders, think us continue in [indiscernible] new reroofing now construction certainly that broader that in we're at the and

that, think into into gone we pretty year visibility as So, XXXX. through have much has be out said moved we've we've the before can when look be that XXXX, is we I And is there can as that XXXX. the within that fact much produced sold

So that are gives few out. a some backdrop and hopefully strong that you quarters color demand for backlog

Okay.

you long-term Waterproofing then itself, breaking Now And had do segment? see it last within they're good. Okay, technology one that the I kind of on just opportunity where of kind margin just out?

going business. there our be there the some goals that's core portfolio, we new as team with the as think technology in a well continuing I Well, CCM have as and and be products. our I some think, same of And investment to additional think, I new are to there refinement

we XX% that can past. we've start CCM targeted think approaching range the that I plus margin in in

Okay.

good. Okay, will back queue. in Congratulations hop guys. I

The Thank next question from Adam comes Zelman. proceed. Baumgarten you. with Please

Hi. Thank my for you This for Marius is actually taking Adam. question.

doubled for at go think the to Obviously, also The it at as I back CWT, XX%. stayed XX% included and quarter, want last it guidance quarter. quarter, Just also was to last of so CCM. this which

guidance, So, sort change looking wondering any in like-for-like I there? just of was expectations was the just if CCM there

businesses. didn't just When Yes. the that the acquired piece. We the for. at it's mix scale They have CWT, Henry in you A that is September. look lot and of big of a

So that in. came that's when

first the a But I the them combined. at only in improving, bit out, businesses split little that are it's for we we definitely especially pickup margin talked comparison now standpoint on both from when a the messy businesses side. we mean quarter. the reported when So, that had

So, to last XX% that it's below what CCM is the say you growth expecting? was safe for quarter were

Right.

now about are to XX%. below slightly it So, was up that, we and

it. dynamics CCM? how and then the for years? do of there compared it changes structured CWT of question. that a And from then some few -- industry more like is there in have Can pricing longer-term sort and are Got the insight of you us see compares give you Thank historical to in background And a like going you. how where been CCM of differences kind sort like last that is how that here? versus And into

that I'll is Hey, this one. Jim. take

Henry, is of it the year could nice stepped which it you -- in XXXX, as we team, of far end chunk As about mirrored CW think just ours. They really a did. in discipline Henry's like that at about we it up the talked and the way pricing the last XXXX,

And so, ahead trying cetera, mirrors in the of pricing et raw stay CCM. of material inflation, to our that philosophy base

you. Thank

Thank you. Bryan proceed. Blair with Please The next comes question Oppenheimer. from

start the Great Hey, year. to good guys. afternoon,

afternoon. Bryan. Thanks, Good

Couple say first of did want terms quick clarification for in GAAP points. of is to you EPS that XXXX, plus Chris, correct? I ask, XX

Correct.

impressive. That's

Kevin, for The figure, expansion basis margin year, XXX a other point, the points that’s the consolidated right? clarification

Correct.

out Okay. that provide And and CCM CWT the expectations? insight into or break us you can expansion margin

a The give margins on we those, not are CCM in certainly, between the bigger is exact and but end by segment, higher go to the and two of driver there? CCM is going

you fair. And CCM That's profitability. said CWT Chris, of should close the that kind gap to over time, core Okay.

inclusive going of that a should What aggressive as right there? that more that there to Or incremental pulled the kind higher? organically, about we growth the of thought levers platform think bring the forward? inorganically. seeing be over of are of CWT other drop-through bit recently range. way XX%, scaling can always in XX% XX% of time be Is of having pretty more CCM investments to think are we As the We've

little that from it's think plus bit similar a very to XX% that, CCM We side. the Yes. maybe in but

color that, Yes, into I some got Brian, and to when we've -- a we get think to just it. add

create down and already play significant around product new with energy them. new But And higher there's opportunity value development we marketplace path think Henry. haven't implementation we have a obviously, will hopefully margins before for that completed XX% significant the They Henry bought say, that. gone started. that higher I would in core the opportunities had for just into there products because are in efficiency or their way as translates first this hopefully really and of the bought I as that through we COS they're still -- we them not even well working what in

some and there. I So, efficiencies gained And that. of with operational there's things be other opportunities nice think like application the automation to some and CapEx

really margin pathway about we So, the excited there. growth forward both sales expansion the op for and then are

All Congrats to hear. great Okay. again.

you. Thank right. All

next comes from Thank question Garik Capital. Loop you. Shmois proceed. The Please with

Hi. results. Thanks. Congrats on the great

more outlook cost all, for the you the of if color could provide to First saw on the cost what basket, some on particularly side? what ask in is I you quarter wanted CCM, and the

and we got last it increases Yes, Garik, if that this continue that When our think And hoped you year. going had think were supply see the that would to raw fourth prices materials from we through trends raws, the question. continued. Those talked, that material we as And basket cost we good to front. But had perspective, we a in got into and third pleased so some are I third substantial offset. at for in have start it definitely year, quarter increased last raw and look chain into call, relief on pressures I substantially. just unfortunately, quarter we

the we're day every labor, think in to relief papers don't continue see wages I And inflation. So, you to see of are increase. then it aware side. going that People on that

pressure And there, out wage so, too. there's

that I of saw XXXX. the basket we trends kind in there think post-COVID So, cost that continues

thanks. Follow-up EBITDA to is Okay, question related CCM margins.

be seasonality expecting for how normally the the be would this quarter, That results impressive the extent level how of margin that is it could also sustainability EBITDA really to year. To quite you during given not speak the given new Just to CCM. in but helpful. you're

Yes.

is the putting we've facility Missouri efficiencies. have the over we in value I in years of TPL the that new polyiso. line the think this Carlisle around products introduced, new about creation, lot past XX-foot for We're is down We're what, talked wide in few and ways, a coming lead investing a experience out. the in sites,

our I in invest know mean story, people. R&D. to continue you the We

And going so, see I to in investments marketplace. to sustainable the the And that earning value that's up reroofing be think The we there commensurate R&D. ESG the we based we in building think demand. efficiency our hold trends provided and been are I with in is upon really picture

So, -- hard the think I think done are And we it's last we are all we has that years. -- where we like reflection over are of a are. we the the the XX investments work and team

was -- add to And has expand materials. that the on been on to some [indiscernible] going I just that there raw inflation

the hit of of some increase So year margins But well. will half the the goal always in to us as is longer-term. that second

be of balance there we little a So, go the there year. bit a will as through

Last question, it. in. one I more can got if Okay, sneak

it Just concern just the on with CWT and rates. the exposure rising for given to residential construction,

your any order there? Just curious seeing on impact book you're if

continue to really. we I for strong mean see demand Not housing.

monthly of from still builders rates out think being that despite an in may up but pretty rising, be and we've reports that I quickly. the some snapped houses seen increase interest some demand -- there's significant there payment, are the rates

probably I enough housing know we that aware have this, the well in we are country. you think don't and of stock

demand any on going we're now, not impact our forward. right seeing so And

Got it. Thanks again.

Yes.

bet, You Garik.

next The with Credit Oppenheim comes you. Suisse. question Please from Dan Thank proceed.

Great. very Thanks much.

CCM think this the over working terms recently of implementing as of quarter sort -- such margins, How of and some in we -- of in the as on you terms through are most remainder of CCM? of inflationary and think and the year terms more you about the of the of But year? trajectory the you cost think come just that pricing through I do about into course thinking just pressure thoughts in of have second terms -- been pressures improving go then challenges in answered. margins have the

I'll too. Maybe add the let that Kevin start with things on first. you mentioned pricing, to Yes. I if like But this,

pressure we on think seeing cost. continued I are

here the will be that and obviously, be year actions I have first continue to if so think pricing been the has And pricing since And you will likely of aware there. taken the action that persists. might

So, there. be on covered think side, will I that

the we this lot I a really to As on cost get relief side. fourth I of said, third see and don't quarter,

what happens. much again, labor I things side that, So, China that are might are but us. we'll also things but see transportation mean, getting with just trucking there or around haven't back, there capacity about we and the like affect talked issues

So, we need transported get lengths significant do can some to well. that that raw and as materials us and impact be

So, on do add to price. But you to want that? Kevin,

only have did the quarter, we some of mix. first piece other the Yes, favorable

bit could on year half that as overly not well, So a have significant. impact of an the second of but the

very much. Thanks Great.

Thank McGregor you. The Please next question Longbow comes Research. David from with proceed.

the call apologize But a these and And had get because good points wonderful for to want is Yes, results. ask on congratulations few guidance. about of margin XXX helpful minutes. for afternoon I off to this, I the about which you're incremental basis profitability. if talking I addressed XXXX, you've

CCM about the can So if wondering XX XX% talk the we just CWT. appreciate XX to incremental you I'm that. profitability or of off

that. So, we just triangulate against

-- The yes.

in CWT talking more that little right this environment. this in be a on previously than XX% bit XX% rate a we and as we're bit about little that the would CCM talked, call So, higher current than range in

And come. trying will of I'm talk I tangible the that of out might Okay. the talked this actual through orders just -- a into seeing for aerospace XXXX, this the the get All of you plays optimism optimistic business CWT. commercial Maybe is a moment. ask just about here for how build kind Or you could rate it second lot seems your sensitive CIT about side And about orders about more as And that. you're just year. then of are CCM, incrementally and sense coming through getting so half right. how be? now? right the a Thank though to we

would we felt come happening. 'XX, we And the out when earlier are David, organization. started when on, things a Yes. seeing and lot 'XX of even orders. the taking back. team is this restructuring thing on we work of that It's nice timeframe, that cost I that talked still and the did John think

And gets so, certified, that be the as Star this. as these just XXXX have to North expecting it back walking XXX when exactly bumps, orders up production I there think thought like is of it's we would. again mean, a I are It's coming that on while we're kind know. It and XXX XX of flying see back, good But may if you return was up. and MAXs. We don't

So that obviously impact demand. on will have an

is continuing team, it like new the retrofits XXX and invested to before. Internet in like like know is that, and excited that access see around things profitability also orders things I air to airlines aircraft, but in ARINC real and return travel and satellite things reinvestment we yes, in pickup So and about

That's as discretionary CIT, off if once Are on more flow we order And be could the procedures X pandemic, had you well? I maybe business. for seeing in. squeeze surgical you'd that there just see been of got that a would medical the past great. Again, return talk good that

has cases, now. Yes. orders we're underway projects seeing In both actual more the team and

in hospitals huge would like And so, and I think, think, again, most ways. lot a the that's huge profession put a playing out of had a obviously, medical different impact -- on people COVID just

been working targeted the it's some so where there's space. which people want we medical and new that see nice to that's in back there to be And to relief products, are on

Thanks, Chris.

Yes.

bet. You

Northcoast Kevin comes Research. The proceed. Please you. from with Thank Hocevar question next

I what Maybe in what you out you're least breaking Hey, at know a start CCM. nice ply. the price But and did, curious afternoon, volumes -- quarter. know I'm volumes not did, what your know market single good and everybody you I'll

how space strong believe just your the share curious So in you're given there. results if gaining were you

Yes, in margins, product going share line. But remained back X to been a Kevin, market the feeling amongst -- been my pretty much ebbs you're years, to consistent. or on relatively me, over longer -- I'd -- flows. margin I would some A chain this a so might supply say in not flux get our market we is but look so that going higher the based availability constant the there's probably lot all or the overall, that's share players. if the much market has some that areas say X, the certain term, is demand there's excuse over of and have where We last issues like answer, and that that. personal in share in

And build to is you inability inability of level you in just first into demand normally head that quarter given as mentioned -- to an would strong how an spring. the the normal the inventories

were everything So, make the it selling you sounds could in you like quarter.

no business? seasonality pick seasonality? levels least but would $XXX does too. understand only of trying just we is -- -- normal the window, seasonality to guess that of do there got volume out or still some maybe what I'm is sales seasonality pickup the where thing, level some another in that's million in from sequential Is have quarter Materials. the up you kind but sequentially first I Is I Construction see there pricing out that you of uplift any Or there increase So, of at know and level be price can quarterly? in because you

Well, make capacity I as materials get the completed. more again, labor we If -- and we think to on think it the depends can more -- raw you backlog these can have if provided mean, through get product. as quarter. the they went I we get raw get they obviously can contractors me. we it if I are And saw get to jobs that can product more then can materials, than really

still some So, to there is grow. opportunity

would and the labor all material -- are had. situation by raw We this we've just say, that constrained I

So materials could if the sales increased as season. again, outlook forecast, a we're and raw keep our more in better towards on we'll there But in up I lot getting come obviously, it a it's I'd and I probably say And updated. to got stands now, line quarter. of the second like be thing, things a mean, you you've definitely conservative and QX, the QX being then said, more

is inventory the there. that lastly, -- curious say, held Yes. distributors roofs you're what channel? Or on in selling there is on channel from inventory kind as that the commercial, And residential know you take if curious getting out there's maybe I in any mean But to quickly? there believe of put that roofing. compared is to, I much on not

Yes.

inventory. there's I think

like have order you I went an waiting think is part or inventory something I on and think if the that. may of out, they're component a

up products needs some they've little been access to a may and to or inventory. that anticipating they're they bit get certain done built want to So, have work be able that they

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Yes.

you very Thank Okay. much.

You bet.

next proceed. The BMO. Joyner you. question Please comes from with Thank John

for Hey, Thank you my is taking how questions. going.

Hi, John.

that might award of And your of just you the broken following day for on Chris, will this on think understatement up model. one. EPS comment year. my I the exceeding of you $XX I have give

Thank you.

to you just mean, quarter? was my first widely margins is versus business and exceeded able what obviously, in then line because being surprised your the expectations question, top but most exceeded shipped, But you? anyway, the what I guess, the such I internal the and But more surprised it the expectations. mean, get I assumptions, CCM product in

thing. There it's Kevin. one Yes, wasn't

board. it's across system. to think material and was favorable production we that getting higher very the operating Carlisle then raw the efficient I than very everything led from on just the production, more were expected, It's through we

positive raw some the as well. to of to that material that I positive. throughout able helped get realization very and that as led were efficiencies mix The mentioned, the the And pricing quarter. we're So, pricing, definitely with then inflation

all outlook. put the to that well in increase those you superior year as led together, the things beat when full So, as

about Okay. guess I you. talked right? And -- following when overall, kind on when of the I this that, market at know we Thank up just roofing look commercial and then before, you but oil guess I the stay industry much that is rational. And if And by futures that. look continues be I $XXX, mean, would affected industry just I more at to historically, Carlisle at how rational.

overall but demand, it other I answer And do what for -- But comments this, the with so changes, you getting how just just holding you up? think of because holding structural continuing see I it Do I see years? do to on You're how any say, on robust, it's you but kind up? things industry X of would see can of probably kind say, over are like stay mean know the you rational? this understandable. you the pricing, I side past

Yes.

has one the put I and Obviously, approval have single where that. added, building back but with look to be time was would I XXXX, plants that. -- say, look added at probably as think X think like or people think when we the I that frame unintentional, that mid even the rational. targeting these about capacity think probably to And we think we've time capacity a our adding in you X%, factory we when I mean industry, and I time of to I get of a business. getting XX-year mean, if that we do the right something to I contribute used But really high just of for at we of has to it maybe X%. good long would less, digits, amount over look when CAGR, X.X%, it all look And been grow a and done to takes when look that's from the industry X%, at grown, job probably on, X%. capacity, XXXX

because think very good on I starts that. data building and and and like things roofing it's information there's

as pretty model Jim a we have intelligence what out on said, put around track that think demand some is industry can be. we've And going reroofing I closely, pretty capacity what the seeing people can good be, to has and that.

rational think the future thing, and it's one holds. So more rational what around I is

of ESG that a happening and things Now less dollar as may created of new things going they're to more value energy products least around become investment. now is contribute put that are R&D efficiency CAGR will that that from probably at increase to product the commodity change now a to couple value are encourage and around systems a begin things these are on more and

Things we've and side there's And contributor the trajectory I got real And lot things a think so, then trends continue. new there that. COS, strong but on that it the automation, around construction XX the we've is talked to so of the the opportunities of out that's also I long as a in or around about. factory connectivity plants of margin think, I demand. positive, stays got fact reroofing I'd I mean as on visibility like think like as ESG, Internet I and opportunities years

going what evolve And invest invest R&D, doing really to direction. we were keep a continues I we capital good in being we've XXXX, allocators, Vision keep So, in said just positive in talent. think we a do marketplace to in got good that

but John, So sorry for that answer, long …

it. No, great. -- that's I That's appreciate

it Joel's yes, it right. did thought I said, misprint. way, I and appreciate put was that's all. So a take terms. I will the lot. I Thanks it. All by in a Joe, he

you. Thank right. All

comes Daniel from question with Thank you. next The Wang proceed. Berenberg. Please

you as our I cash I my I Hey, might mean what look this think there the been like Most update flow one on have guys so thanks XXX% is answered, but But only of about for quarter, guys. questions had you the prepared last I for taking missed my got question. free an year? expectation in remarks. conversion

be, XXX% expectation conversion. our for cash remains right that around Yes,

right. All Thank Perfect. you.

bet. You

you. of concludes and the Thank remarks. I That to conference Q&A back Chris the Chairman would like session. closing to pass Koch, Companies, for Carlisle CEO

at Thanks, next our questions. earnings We look earnings for to thanks, everyone. Selina, and Goodbye. And the your you with forward participation first the call. concludes call. This speaking XXXX quarter thanks and

you for quarter XXXX the concludes call. That conference Thank earnings first your Companies participation. Carlisle

your disconnect You may now lines.