Carlisle Companies (CSL) 7 Feb 232022 Q4 Earnings call transcript

Good afternoon. My name is Hannah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Mr. President Relations. Vice Carlisle's Giannakouros, of Investor Jim Jim, ahead. please go

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

Chris of Financial Koch, Kevin recently discuss On and Kevin Chair, our With discussion and an general strategic today emissions provide outlook the XXXX. for of our call business full Vice update Officer; Chief with our update XXXX. achieving elaborate Net-Zero plan, and our achieving and Chief our announced call with And details XXXX, Highlights to Carlisle's to Zdimal, Smith, sustainability year our will our Dave will are and commitment a our Sustainability. Today's will Officer; our me Dave Executive additional on on of quarter by financial Chris fourth on in a Vision outlook. President commitment President progress pledge begin giving current and this results progress.

will we remarks, the prepared questions. up our Following for line open

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

which over Chris. press we've the of the release I our non-GAAP provides GAAP in financial our are our to and call website. With on appendix information, turn Carlisle that, between in reconciliations available will non-GAAP As presentation materials, provided and measures

earnings and thank Thank you, us XXXX on Slide for you our turn Good to X. quarter fourth afternoon, call. Please joining Jim. everyone,

XXXX the and team truly earnings Let full year complementing in entire sales XXXX. quarter fourth my of the exceptional year. on me commentary by the Carlisle the set was an and begin records

In early sales a billion, as to the the work milestone sales fourth generating we marked this delivering of exceeding $X for Exceeding EPS We the of of GAAP adjusted record delivered Carlisle's journey first the delivered their annual testament for $X.X record of XXXX. EPS years Carlisle's addition $X.XX for of the surpassing shareholders. in of quarter, and in GAAP in in record delivered increase $XX an work EPS also time both Vision and $X.X our a a the history. to primary XXX-year of and hard sales $XX.XX marks billion commitment XXXX our XX% Vision is Vision XXXX further of our quarter to key to diluted billion, billion year-over-year. dedication we of also $X year, X goal goal XXXX employees of all

These are of was the operating years. challenging the over few this faced I navigating record results even challenge. Of the environment extremely COVID many unexpected the more we the given say most pandemic period, challenges would remarkable past

experience traumatic in to possible in lives as all us perspective. and for as keep social actions economic For welfare, their as and significant the navigating a took grateful personal employees people, a many the was while Carlisle safe from well. COVID life so pandemic health I'm their

and supply significant In material inflationary disruptions experienced chain labor also we addition, and shortages. environment and

challenges diligently past Guided our turn that possible X. our X for the provided of we unwavering XXXX, without in the overcoming the XXXX not course faced. Please teams record remained by launch and mission since to of Vision us teams. clarity and commitment results unified XXXX, Vision have Our stayed been would Slide the has the years, its

Carlisle. for demonstrate results Our been has to that the strategy XXXX right continue Vision record

benefited of balance and from and strategic we've addition In our sheet, flow to business both excellent ambitious cash an to execute world-class a achieve our to generation financial proven strong flexibility model, diversified higher teams provide and of industrial building been to company the has portfolio portion businesses. products to significant reshaping a A portfolio our returning driven goals. success products by multiyear a from of pivot process our

of transformation This These creation going our for focused, Carlisle. remain first, better simplified of stage include: the pillars The sets future understood for core sustainable a to path and XXXX value more strategy at Vision forward. X.X% XX% drive revenue mid-single-digit fourth we drive organic quarter, In contributed helped full X the growth. XXXX. this to which Notably, segments year organic all for delivered organic revenue the growth. growth, growth

COS Second, use to to improvement. drive consistently utilize System, and continuous Carlisle COS, operating efficiencies or drive We enhance leverage. the Operating

expanded year full that. the For to contributed nicely XXXX, margin COS adjusted and EBITDA

sales. continue to annual We savings of X% X% of to target COS

invested increase launch scale into into acquisitions. And enhance over with Since capital we businesses repurchases capital build Carlisle areas returning to in optimized over and that we and build deploying of Vision our and we fourth, have of these $X the our scale capital share have divestitures of acquisitions and highest XXXX, XXXX, made have Under to our synergistic we through accretive capital the portfolio efficiencies streamlined investments allocation, over experience. X billion energy-efficient plan. also $XXX solutions. XXXX, invested our operational XXXX, includes drive accretive our billion building Through strategy ahead expenditures, over Vision of of In businesses dividends. innovation, years broaden a $X into allocation Third, million and original to acquisitions. $X returns-focused products suite in billion

this course, without continuing over exceptional And returned totaling $XXX none share in in talent. $XXX to repurchases of with million shareholders paid invest and million develop possible to also We be $XXX XXXX. and dividends would million of in

to built journey execution decentralized foundation, Carlisle management culture accelerated diversified Vision entrepreneurial continue and our a the will which continuous and guide workplace, value a a XXXX leveraging of solid Through creation has in XXXX, style, beyond. improvement, spirit of

X. like the many highlight I'd quarter. the accomplishments Slide to fourth Turning to of some in

of EBITDA. total XX% constituting segment, First, sales, over delivered sales adjusted quarter now fourth Carlisle collectively, our record Building and Products

focusing our service with continues pleased team environment. excellent at million, of on delivering the a synergies efforts newest challenging Second, in from integration acquisition The CWT. Henry effectively segment, customer we while the to the projected capture $XX ongoing are

commitment our and Building Henry October. partners recognized Vendor the Depot's Materials Award awarded when This of was to in customers Home the Year channel was

innovative Carlisle, TPO latest of continued Third, the manufactured technologically product introduction we advanced industry's labor-saving market, most to our the in and XX-foot the which TPO is line on Pennsylvania.

XXXX. quarter a As the product began of shipping reminder, we in this third

level Additionally, on construction of standards. the for to second facility and completion in LEED highest our commercial is building achieve on Sikeston, polyiso Missouri energy-efficient the quarter track Platinum of certification, in track state-of-the-art

profitability recovery, strong that, of taken Dave? our continue and at all few our customers. This to returned and backlogs supply our Dave we progress. more partners more over years. And ESG the settle over segments the CIT increased pricing on their driving President normal significant continue value and has state. global into And a normal continues the Vice chain I'll Fourth, to Smith, remained restructuring demonstrate turn actions it our positive to on to with be for of back an material to Fifth, availability and past across CIT update historical Sustainability, to finally, sales a markets aerospace back channel by enabled buying return as to the cadence. team of our

X. afternoon, is our We stakeholder responsible century-long focus, more and value had a begin everyone. Please stewardship driven productive for legacy by Chris, core to like shareholders. and Slide that of that our sustainable creating has turn to all by good continuous a of believe environment Thanks, cultural I'd Carlisle reiterating improvement. also

of X to pillars As responsible environmental environmental stakeholder sustainability. with committed an organization, our a being Carlisle is

operations First, develop energy-efficient to gas products costs help from our operating reduce building solutions the greenhouse and for and emissions GHG customers. lower or

XXXX, sold Carlisle billion XXXX. solutions, billion In products $X.X in LEED up of $X.X and certified from

landfills. wastes Second, going reduced material into

deliver with Carlisle third, of inner the of the conservation when filtration on in scrap which our And from tube to upcycling as into continually the a such we propane fleet energy implementation XXXXs rubber to of Today, water forklift the operations waste reduce operate. emissions to history environment waste enhanced and our for long we communities recycling improving production. shareholder factory continue value processes commitment our manufacturing in that has converting focus had incorporated while lowering GHG polyiso measures the century electric. tradition material improve began a our and processes Our we products. by into

in a mission XXXX. reduction the Targets an Targets To to Nations by fourth the Carlisle to step proposed of initiatives Initiative. state, Initiative U.K. in guide targets accomplish with in body chain Science quarter XXXX, Targets. took Science works conjunction achieving using that United through the to based near-term Science probably companies significant this a we reduction Net-Zero During value The Net-Zero Based establish is GHG our emissions help GHG Based the independent Based

per Scope and Scope reduction X GHG second, by GHG pound X are: targets by XXXX emissions reduce near-term to produced. XX%; first, X Scope XX% and reduce emissions Our

part U.S. shareholder in Previous cash in as to outside to returns our XXXX, small sustainability option the our and generated all and the increasing also success While based, to award no Carlisle's grant employees of contribution the allow our waste all emissions, awards U.S. efforts, on of eligible special stock On on component to proudly a key These Carlisle progress. grants part, October significant in sustainable stakeholders. participate issued significant our to we to made employees their for XX, social all commitment focus are a we XXXX, ESG and announced XXXX are employees designed reduction eligible employees products a value.

as additional X, I'll to XXXX, over Additionally, a possible a organization. in pride represents Kevin? below In continues XX% X.XX, represents as since our Path workplace that, creating commitment incident turn over details well to remarkable provide the our rate Carlisle's for XXXX. And significantly a industry Kevin to incidents the was to work financial to safest average it source outlook. program, OSHA of of that environment decline XXXX which Carlisle's and be our Zero with

Thank you, Dave.

we Slide results, to turning fourth out segment results as anticipated X. played last earnings fourth overall our The our to quarter quarter communicated much XXXX call. on Before on let's and turn

a increased EBITDA Fourth adjusted the Fourth fourth positive the pricing our challenges mentioned, we all by adjusted As many improved EPS quarter basis gained faced. X.X% driven and organically, points, revenues Chris margin through delivered were XXX records COS all fourth price very Carlisle. and efficiencies quarter by quarter EBITDA to for value. to driven Revenues, primarily ability strong despite segments. team across Carlisle quarter

Adjusted EBITDA raw material by margin the and price CCM reduction our a the a in and mix by driven performance was inflation partially of XX.X%, labor team, of in offset and volume. quarter by revenues buying much in please X. delivered year-over-year by For our more normalization customers to of CCM offsetting positive up was in performance segment organically. highlights, X% severe current declines $XXX million, weather volume by This given December than turn patterns driven price fourth of Slide and U.S. record COS unfavorable in

Weatherproofing of achieved Moving Carlisle Slide organically. on despite This The supply constraints from efficiencies to team operations. Adjusted demand. ongoing margin COS XX.X%. X. to rolling synergies throughout acquisition the our and to drive Henry, growth CWT focus Sales the residential at integration was increased Technologies continues was of and EBITDA million stated out in in $XX the greater X.X% softness

Moving technology platforms. revenue in with the organically XX% growth to of aerospace increased XX. our in quarter XXXX medical balanced Slide commercial CIT fourth and

see travel pre-pandemic in strong medical to continue growth levels, our We domestic pipeline. new backlogs approach product and

As in CIT revenue continued EBITDA positioned is for margin result, XXXX. growth a well and expansion

expanded by on driven of driven our by a margin than of provide EPS. quarter favorable efficiencies volume, XX.X%, exchange XXX revenue results basis foreign consolidated CFT partially from points gained X% growth for year-over-year XX.X%, fourth positive XX. offset organic and Adjusted pricing CFT price adjusted volume, to record details XX XX favorable more COS. Slides headwind. and and Turning Slide revenue EBITDA generated and to by

XX. from of ended operations billion. facility. with to full Moving availability cash and the bringing $XXX on flow $X generated hand XXXX of million our Carlisle under We quarter our revolving total million, XX $XXX and year XXXX Slides of cash $X billion fourth to credit continuing

to Slide XX. Turning

outlook. our year single record in up consolidated expect a full year have low Despite deliver We financial revenue challenging XXXX with to digits. another XXXX first we quarter,

the seen of as result tough already in as will have weather first for the challenge channel. of buying we patterns well CCM, continued be quarter comps normalization a a disruptions The the that as

weighing exposure a on Residential also represents headwind in revenue our growth outlook. significant for consolidated XXXX, CWT

give ability each consolidated digits backlogs XXXX. in in and confidence revenue While smaller single grow CFT contributors CIT in to results, their healthy high to both us

expect Given consolidated operational efficiency through continuous margins pricing, to points managing year-over-year. we improvement costs and our disciplined EBITDA focus XXX basis efforts, on our adjusted expand

unending strong, turn we for focus demand In towards on and remaining view XXXX, view year this we a continued another November, Carlisle. With adjusted gave reroofing nonresidential for to EPS it we drive preliminary over record of year. that, reiterate With expect I discipline stating are manufacturing pricing an closing remarks. this growth to driving and efficiencies, Chris

my work faced closing, once were would challenging and launch has The Carlisle's of Kevin. of a Thanks, thanks and accomplishments the XXXX the some for industry in I employees. In decade. Vision and has of to team perseverance express the appreciation again over conditions like under all achieved of done the hard most are remarkable since

can I look on of and think back all XXXX proud outstanding be year. we an

we move As optimistic XXXX Vision XXXX and for objectives Carlisle, ahead. throughout am ingrained the with through year well I

are ready take complex year. And growth environment, earnings shareholders another now will for our our customers, drive operating we questions. Carlisle strive deliver record that will to comments. experience this actions to deliver navigate for We conclude to Operator, and formal the our

from Bryan the of question [Operator line Oppenheimer. Instructions] is with first Blair The

lot first I through seeing how are QX And so to what QX phased where normalization us That patterns and of think, the the of understandably orders like it order if rates volume QX, in QX into the whether in see sounds is compression, There's it you destruction. of shaking the underlying channel and I would QX been relative revenue channel reset recalibration on mind, think relative you continuing focus, simply some be walked level. QX quarter. of a out demand to CCM's helpful you're indicative through the

a right, there. All there's in That's -- Bryan. lot

see we say originally going inventory down year. So thought the let by the would that me had the normalization it when do of QX be first into of end probably we just some

Some has of do that to weather. with

go XXXX. we has year still the like with strong. interest that of commercial we and We into do going good that. see a in it's to rates Some be economic impact, to overall, things roofing year, think But as

nothing large, on are, be We but do strong. have that would side. comps QX happening really fairly I demand in some to there continues the say, Reroofing

distributors. the in some real, We new inventory continuing. modulation, But contractors, think of construction. lot I a do for I see, We we've of talking it's this on it been out think, see future, sure, lot maybe normalization. to a

at I'll to and still But turn a I just And demand the to people think hinted granularity have the you underlying the demand good. it little is give on that. more Jim, order.

Yes.

in inventory XQ, Bryan, and seeing of could levels, right? most as that we extension being has that seasonally So what we certainly or normal all communicated of what approaching our typically of period an channel patterns just of saw seasonal et see And so an would that extension because we you the we're through softest those through trends taken should our And XQ then cetera, are the you seasonally softest recalibration us winter -- you XQ. take see probably normal through period. to months,

the appreciate follow set. that I guess I to Okay. color. level and just And up on

saying the QX, take with at CCM the year, our we for of step range revenue in QX. you're to out assume pattern more picks significant a So seasonal if it's stab to that up normalized low revenue where single-digit fair

of on the much revenue Right. is This about break Kevin. full revenue be of it first high typically XX% as the by that our would And say guide, say but This a we QX percent of that year, down year. throughout on we yes, and the we is CCM. our teens our our low quarter, based piece year, would would quarter single-digit for too don't year total

pretty momentum, expansion we to think is the good CCM the You think Okay. consolidated platforms? guide. basis higher that helpful. about necessitate year-on-year. That you How the year, That's point segment CIT, margin other have should I CFT. And about seems have XXX for margin core

expansion add with quantify should detail? CWT? year-on-year? And correct versus spoken further the CCM think you in Can that, terms we I more bit am that there. You've to CCM COS-based offset a CWT, be and or of how volume should And and higher of synergy course, of

be XXX into I'm on that get don't X on But breaking all would exactly Yes. the do components in say having the so points at the segments consolidated year-over-year -- improvement basis said We I we will and see margin. we are up margin, what overall too down have segments. margin. much

of so point, improvement year-over-year. expecting margin CCM -- improvement. are your definitely, We're seeing to So we each margin

line Tim question is next with The from of Wojs the Baird.

on the Maybe pricing side. just

anxiousness investors competition. just period there's think guess, I some working going some among of, to of this that I is normalization kind the pricing industry through that is create sort

seen you expect least talk so if of already what price, realization or you've kind of what maybe you've -- quarter? gone just the then you to the in first see through So stiffness kind at you fourth could around how the far and quarter as of price

Yes, Tim, firm. is pricing remaining we --

your I talked think we conference. about it at

in degradation. think, that we're about, that of in I 'XX, great and expected, just people We the increases as to We to XXXX be price no value, continue half real the deviation continue and put happen see about stability how we seeing accretive in 'XX on no earlier talked into industry, latter pricing there. we would the

have still yes, into labor constraints. or right coming we on our motivation a with participate seeing degradation on consistent with questions from people, was year, see There the from And contractors We see that. we're but premium hence, really some don't distributors really we expect Fourth people, going delivery. price, it. we in either no -- any still the from what quarter know been we hands, to that. not don't There's have

to based that have changed. upon later we of increases into in put lapping gain go as nothing's 'XX, to be so pricing the so that And we price would expect XXXX, a we accretive and

Okay.

basket mean, in of what kind just what of way company materials of and standpoint, may basis a guess, price you're to standpoint a just from expansion. a points embedded the I is total then, I raw of Okay. be kind there in the seeing That's XXX target from And contextualize raw good. materials

we it in as months, have early year, the summer the into get look some Yes. And see the costs the much we of the to of and material year, the throughout materials, going the expect there to balance first But raw as year. throughout benefit. we at we're not on raw quarter, tailwinds

for then the Henry. on last one And Okay. just me

margin kind about how those think are So what I if in in down think the offsets? any then decremental, EBITDA CWT. I CWT? digits, on do are What's volume And declines? the -- guess, guess, we we how But core do margin EBITDA potential are sales double the of there the about --

margins The Yes. -- this And expect you we to decremental segment despite, improvement said, margin incremental, around decline in XX%. are as right the double digit margins in revenue. see again, year-over-year

The next Garik from is Shmois question of the Loop Capital. with line

that to be a maybe with want point in to a could new just you little just bit or I respect of follow I if modulation to up conversations speak respect made timing you construction. to having the with some commercial customers maybe expecting your any that. you with backlogs that was wondering on speak to more, might

the a I still out part we we're what's XXXX. sales Garik. in modulation of expected that. to There have and larger construction happening little 'XX year. as And I in seeing be We may were think the coming COVID, strong, of reroofing say, really bias have I would pickup is strong new we a as in Yes, new. think, would when a see, XXXX a We did

that ] the how X may years. little you reroofing of reroofing a may over Jim backlog shared think out would indicated about to think up [ X there. our how playing we modulated because I we've that in bit, see pick quarters next I as with the charts have And previous

And that think, sites bit on we project happening governmental new as it's the little new think of were picked that underway there, delay to and it COVID came due construction delays on and and restrictions easier, up. obviously, is I COVID than things a to a out the was to experienced job delay then. I and delay reroofing back So new the

have good what things on we start see So to we're a at a then for And change is happen year, 'XX. have going what 'XX, really to as get with starts still a to the still see through other think positive level dramatic happens the happens into I what look really a scenario to to if going economy macro from Fed, in wondering new. it's

Now other through underlying things. for see we is that and still whole demand thing, positive reroofing

should good. 'XX still yes, remain So

at just impact evolve in Okay. the Great. fourth to you CWT anticipate if CCM to the on quarter in follow mix Wanted all. up and and mix how in 'XX,

and Well, PVC, on that to when where normally call steady material EPDM product say EPDM, most grower. board, across and we CCM polyiso, to seen I the been low year really of get the the with a some different availability availability single-digit would very ordering look for patterns, the the the around exception at they've mix. that then supply be TPO, the stable. we been TPO of don't the TPO. think raw we to granularity on gain maybe continues X we've last a of a part, that now layers through still gains be momentum. R-values momentum. and it and And to continue roof, higher obviously, ESG X, polyiso of as putting site. gain X, will wanting underneath putting that and polyiso polyiso, are people percentage seeing has with a I regulations square now years, on becoming But We're we're on could as efficiencies continues, that, job the the has their

team Carlisle. we the nice a And a side, opened PVC done Greenville. new our years it's plant been then ago, up great A PVC. product. think on few on It's We to in our job has relatively

in so to some And growth and gain overall. the had, quarter good again, in has PVC and 'XX polyiso or -- share continued fourth market

CWT Petersen should there. pretty an nice same the smaller, businesses R&R. a really at continue metals to acquisitions, bit the XXXX. get up percentage. pick good Drexel, don't R&R continue the little remain channels it's We grow with at pretty continue Henry. the mix and So to because you we will I have see to a retail think success little in expected gets rate bit different but much. change our improvement X look They and the in and business, When consistent think about

Accella -- And little But then ago, there that spray with group foam few that done things years through some we've the continue that lower had a I mix. bit were acquisition, as to a nice or and talking rate were X% to market market drive, some rates, I that think above we there a about when what would did there. was growth we say, deal, --

And so they But then as saw continue smaller into you Delphos with our businesses. we side grow. public on get to of ] rubber some business, And the [ you announcement that. did exit

that of obviously, little much. changes but so it's And a bit the not mix,

So you overall, to granularity that same there. pretty stays the mix give the I you. and tried for much some company, But helped hopefully

next Dan Suisse. Oppenheim with from Crédit The question is

bit was if little can the of revenue low about in a there I for you terms CCM single-digit wondering talk XXXX.

still terms there. about getting in some talked pricing benefit You've of

So about inventory the to and volume Is to assuming slightly benefit flat sort given with are on from XQ that you impact there? such, of way or the essentially think in here it? down volumes pricing slight some

I we we I at Dan, half obviously, digits, we and But color, probably too don't volume. to split give if in little to We'd of to much we -- like in share think try a don't say number, to look single competition. that price it. again, take think we'd half want because

think it's a to bit think year, seeing split a place So see better just bit. that good XX-XX. But I I could fluctuate a we're a could so start that we the little it to little to bit more happen say little volume.

obviously, is our this I XQ, to just -- mean, is toughest -- comp. Jim, also And

And We have balance in tend singles our will the out your average right? the to easiest so comp year. that low getting XQ, model, on to Dan, to for

you then, the these guess, terms of And second in there about quarter. activity get expect in for in terms that more we fourth challenges you How planning XXXX? XQ? in do increasing thing short-term repurchase Should I of Great. think once past

No.

that up I'd And consistent say to we XXXX. our for it especially think a 'XX XXXX where I then where places going what we of at same we what But in whole, look we'll I other did And should repurchases. you tend see year we to do for we that maybe share obviously, do the we value, some at for 'XX. quarter. you to into then it's in and look about a allocate work When allocation intrinsic can by be were we our capital, still probably good and think compare is capital. vary that as end starting around level point pretty to been in we've

The is from of next question line Jefferies. with the Boroditsky Saree

So just margin the following on commentary. CWT up

given you Just can declines, margins the you that through offsets volume the year? full for let walk us expand the just

I We the cost. be as mean, biggest far will as Yes. -- price -- one

the similar that's to XXXXs. time, cycles As you look so didn't whether benefit the own one, other business. But historically XXXX the in the seen for financial that's with those early we've we in saw we our our this like been to And at that Very crisis CWT. what business Henry in that roofing or we're business that as seeing you tailwinds. at at be business in what a being that's back similar look back, core it was --

when very be buy of Henry say, well Henry, and tends to an magnitude embraced we COS Yes, And I here, have think team COS, roll COS. that Frank we at Saree, the especially out, the organization, Chris I typically Ready would received. also and it

of And more a innings focus our we're some on with And longer-term in bit got little has, that upside applying rollout, that help. then, the factories. automation the should there Carlisle early capital are that because -- Lean applying view so investment we obviously, in and we Sigma we've they're think so

from in we of So And talked we boost with mix, about which some the that away margin should that that get some portfolio up. actually was efficiency taking there, action there. we And and rubber had in also out XXXX. then business, that will margin

to things on vectors So those nice returns. gives at work and you some it few see quite when a also look altogether, us

make Great. then continue believe, announced about they to in environment you And was the to talk today. a space? it buying impact competitive just any acquisitions competitor the you as had Duro-Last, I Can

know smaller to a I a I We I CWT situation. say, some roofing They really business maybe But that they're us product. they And and really in not Yes, that's it's think foot believe this our space. have It size bought too affect our great our doesn't in compete -- organization. acquisition very great I it's in than and in. deal, commercial kind or a we a of would much. different now interesting for business. of residential can't company. a us Duro-Last shingle really segments commercial competitor They roofing square mean an Malarkey earlier, well. us, impacts Duro-Last,

great So that's family business, great business. a

And so should us the well that, be I'm impact on do -- with minimal. they'll they'll sure but

think obviously, obviously, North Carlisle forward, and we're grow would they in America. to And want going to they grow want acquisitive. stated North wants be I acquisitive, and in we to they -- America,

again assets So horizon. I will we run would team into the imagine up that as come on

from is Longbow David with MacGregor Research. question Next

guess quarter. think just sequentially seasonality to of the being I [ back versus I XX% there abnormal want third down I quarter, CCM. to kind And fourth go ] as

this quantify for other might seasonality some And there had down here. Xx of kind U.S. break that. and little it was, the snowstorms us seasonality down there the obviously, looks the can you help of these a referenced Kevin starters, things like that beyond just were than have impact Maybe You more bit? in

this part talked biggest -- that buying quarter, could this that customers biggest were and The But piece. what there. impacted their last as bought fourth that of in why on XXXX. piece throughout patterns and Right. they brought inventory the the in it's it were allocation, the normalization allocation, basically earnings Folks ahead hands what had also down, first just weather about was And levels one, we was on. of the on how, I the buying call the in being we've And they get XXXX. reason really that people mean,

be can So be, a once quarter-by-quarter, for think we out broke have We QX not we and happened pre-COVID look QX, we normal in as will 'XX to as think from what play quarter year do it of normal normal. you get And because then we years the a would this the was year. probably of will you're that of to and comp say those a way. in to QX 'XX, to QX as to at how back the get would as not fourth lot like more be at even back of -- what go that normal, we easy we even and pointed look looking an that seasonality. that is balance be going But to I result year, out XXXX. far

go sorry, Excluding that -- ahead.

No, David. go ahead,

to prebuy ask, think weather, excluding you sequential and of sort be down closer that typical of sort some No, I'm going I that that the this. of the of reconciliation trying you were the pattern kind seasonality. was quantify if just the to just to that of would XX%

we'd said say, We've right, 'XX, pretty is And X, were growth. just when In Yes, what X, had think David, something 'XX. up that, prior been the I'm X. I because in XX%. I'm held we I talking Feb reroofing what CCM Kevin want up in and and construction just going or organic then 'XX, organic. high mid- to hit, think of make I'd important recognize. said jump X.X%. look probably was single X, the 'XX, it were there. it And and digits, COVID And new XXXX, to to XXXX, was in always sure we there XX% And we tracking like I March almost X, much which X that growth to We to in or there, at down organic X going been and then

some, look at the of with have been and time, it of are repeat CCM So very for QX. going long I out numbers, to themselves. we had strong be which There guess, know fundamentals, trend if in kind to And to the are I we I these working kind long-term was consistent think those that's what super underlying a reversion when mean. in think

going able get contractors carry to they it why and you might could any that inventory of with each out we just location and sense you make what variability region that, interface how I and QX and in apart be just distributors be to because don't pick and I And to it how of of I real complicated. what you that's many think normal. going on told with really super each made they're quick what think the in that that think Kevin when we're And gets of with statement know what's

take come through out did help So what strong just think to with -- I these the I don't can great But back think pre-COVID got I team It's apart, what great been, the But have that, job. of Jim that to 'XX, what parse underlying we It's years an you. And much doesn't I as we cadence. has on just we it. leverage. I which cadence. to that we're say growth look think manage when a into it, know that is to is X and really just trying trying And are at you anomaly. very demand think Kevin just to move it getting just as we do

Yes.

Okay. I appreciate that.

the in Is Sikeston here be to models? Just quarter. drag the as that a follow-up, if I the you've the second that should And phase how guess, temporary our in going got guidance, so, P&L? quarters a within ramping over we to

Jim?

-- be, facility demand if the fired will it correction demand increases up. line the demand season as be expectations is the only ability just believe and that's strong we set as it selling that margin -- service if strong be we we no, with how to to taken shouldn't in our think top given though, going for as the that say, both progression the in is Yes, the produce spring/summer I that David. this to to place for year, for ability our will marketplace, relative

be as that opportunity, ]. progression more see up an firing it or not [ So that your you modeling something we margin with hindering should

in might And the David, it, call we'd into the or April see bulk I time -- this April interesting. in think is correction of be load Jim this distribution wrapping inventory is going in is channel going American first the North where we the mean less have March, quarter, that brings the if let's about the up probably inventory timing to going season. ask normalization think that there began construction of in pre-XXXX, to inventory season construction an into be which Usually, to interesting demand point, inventory, an back is will the frame as we up the there. you question, the yourself And high normalization

does every might Then if from about to start think which and have, some -- how for that. we're Carlisle that obviously TPO And space. to be earlier. this to roofing -- new we kind with XX-foot sure, for going with that think think of asked question is which for we around product very indication commercial with good Sikeston, the pressure year prepared pricing we support right, another be there for have flex creates line some you implications a But pricing, nice in the we stuff, and the this availability, we're

So early tells never at and much about us, positive. things look point, days. to go. again, the year do whole certainly January, going QX how really But this is

Baumgarten next Zelman. The the question with of Adam is line from

you're CWT, new just demand CCM and with of kind residential then in commercial end commercial market of like across and what new and thinking res R&R. starting just reroofing, various demand Maybe roofing verticals the terms

far that new I end have is res with start and each for I'll to start the CWT, and exposure, to it that Obviously, Adam, backdrop mean, about -- let's market. demand XX% resi. in X/X nonres, I new there. level, residential side, repair each and we split high the on both as of in XX% you right, new potential think the mean Yes, down as remodel the exposure with

On obviously, mix we the discretionary remodel, a repair and have nondiscretionary. and of

that think at is maybe digits Commercial, should single both us. It flat and the a side, we on down. for would all. be potentially strong then I just shouldn't commercial going remodel. end the market low it to So be new slightly repair to think, be bad And on think --

So that's basket, the if you CWT will.

we hard out we but not discussion CCM that what that XX% in certainly for have CCM, that 'XX, of only next For we And to decade. think is for without reroofing. the tailwinds demand, pointing sell have

it. Got

kind investing? the where businesses Okay. that? driving And the then of there in something timing? you're maybe CapEx, Or of it just some across Is what's just is step-up

XXXX, of our that, Certainly, that with in highest a growth as and coming That's our our Sikeston business big a been piece you really be with to businesses. step-up continuing ROIC-type on organically investment. it. invest normal And will just of outside into say, of

Joyner with of Our line Capital last John question Markets. BMO is from the

implied? mean, price, the first And quarter been asked. the figured over have for quarter, past regard And was is closer would than the pricing carry up just feel about I the so volume, it guidance been on, question, range. would with So to not I right? half outlook, guess I down. clearly the have who the -- CCM know. at CCM, Dan first don't I it maybe put the But -- I that lot looking asked I guess, has the like probably that over this the, around following was based believe through of on half assumptions amount to, pretty what is year guess, more does significant a growth implies being I single-digit segment how that I

bigger But pieces. a side. different a be year. going Yes, is in and into of weather few throughout the didn't the quarter the challenge, over impacts to first One, carry channel. the volume because inventory Certainly, the that's fourth quarter first it's quarter the volume will on price out the the the the get actually and

were of we that not As XXXX, end issue out the going an be got weather into down. that be to slowed to we 'XX, expecting and but

from going CWT. actually in quarter first that impact rain weather volume challenge is as with So a also a for call higher in some pickup of there. then the impacted the about. been trend But was historical piece CWT 'XX California. in quarter. than to sticking piece a comp And and January, the that as of benefited that's because CCM that's the that some That's talking first in the we the the been quarter discussed the earlier we've CCM, is with other well much year-over-year first

And maybe on more, a Duro-Last. just Okay. follow-up then one just

presumably synergistically. it. has competitive I the run diligence know regardless did for So ], -- [ which on the home company due say a landscape, of would the But doubt been certainly -- you would a, and no Carlisle

guess being prices the So I by Holcim? you what think do about paid

they're is decision talk their make on get decision, to value the going how we the or that the team synergies for the company. their price have going every Well, keep they're about things they they were to don't pricing. or to company. whether whether know bring to like they whether how seek integrate, you alone, They can in even extract what thing first I integrate, much in every

to really or industry good I in margins, is good Carlisle. demonstrating But if like on numbers have it's and their in So pricing for, mean they'll comment certainly, you may we'll I years. we have been our see few would see think, I at that that, not. the decide can the can't companies whether the undervalued are Carlisle, some is the that this in last space, what's private,

positive The all demand. North space, are good good And America, in to of be it's trends us. a underlying very with for ESG

good We've think out great prices being I have the came Malarkey think and for that's reshoring. like act this got just And a the We and IRA that reflect Biden We've confidence framework a in Duro-Last got lot great can by products of many Firestone, contribution. people the administration. next the paid of be years. that recycled X I XX now for for things Carlisle. to And

probably good And then what really companies we think are multiples. not, kind It that. discount upon sends the at in of look signal good that's for see those trading trading the say, our investors. multiples I publicly-traded based at I a about if they're and can market. And also you think a at

it's think us. all for good I overall, yes, of So

additional waiting at questions this no time. are There

further the any remarks. to call for will team management over So turn I the

speaking look you quarter on we Thanks thanks, the call. This Well, to fourth our participation, Thanks. call. Appreciate your with for 'XX does conclude earnings Hannah. earnings and forward next our everyone for questions.

That your Thank today's you for concludes participation. call.

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