Carlisle Companies (CSL) 26 Oct 232023 Q3 Earnings call transcript

Good afternoon. My name Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies Third Quarter 2023 Earnings Conference Call. [Operator Instructions] And I would now like to turn the call over to Mr. Mehul Patel, Carlisle's Vice President of Investor Relations. ahead. go please Mehul,

and good in Mehul Welcome Relations Patel, our our presentation results We and press both Quarter and website. Investor release for Carlisle's Relations Call. released the today, financial quarter I'm Head today's third can afternoon, you, find to our call everyone. for Third Carlisle. you the Thank of of Investor section

outlook CFO. Board Today's call quarter XXXX. me by will of Kevin today Chair, our President performance an provide for with Koch, with highlights and who on the Kevin, Chris. On Zdimal, results with our and Chris our call begin provide our followed He financial along CEO; update are an will overview and will accomplishments, third our on

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

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

release Carlisle our in financial provides provided press we between the and on As non-GAAP are our in appendix information, GAAP of also which presentation measures website. materials, reconciliations available non-GAAP and our

will I to Chris. call that, turn With over the

in a building in completion a milestone Quarter our portfolio company. Carlisle's businesses. final you, CIT portfolio mark The Call. successful of Mehul. significant Thank diversified businesses pending of building step Good of XXX-year In we a become will products best-in-class afternoon, you from products for to XXXX industrial a Earnings sale the pivot pure-play of Third to reached third the everyone, us on history, thank joining and the moving quarter, Carlisle's

to future flow when confident part we, and Our capital journey the and allocating decision our into the investments Carlisle XXXX strategic our our building capital innovative the focused drive reinforce delivered allocation priced envelope communities began customers cash that benefit capitalize on and to portfolio consistently reduction, of space of a methodology, businesses industry-leading Vision future provided, as that solutions of enhance highest while portfolio labor XXXX by value would superior a focused allowing in products have employees, and the made efficiency, will services become are human that and energy expand returns. We're and our shareholders our to in the that building returns. products, to

actions accompanying we in strong of products, effectively. innovative will plan, their Vision the the strategic a released form we key users build be tomorrow. This return on these Vision key of Importantly, experience, significant of value principles products, foundation services When our accomplished proposition create which proud all of the more financial will strategic of phase XXXX. XXXX, will Carlisle clear and building building marketplace end deliver competitive products and differentiation a and significant Carlisle and clear new focus with businesses with for operate envelope will the coupled and ensuring solutions alike, the contractors solutions and for today services with a Carlisle and value of XXXX, are December, at Vision you and look to creation Vision forward and our team sharing the with launch has of what next Carlisle of December under the next XXXX, and

of EPS adjusted consolidated the adjusted sales EBITDA quarter, of $XXX third and third million of Turning $X.XX share. per $X.X on billion, excluding Carlisle X. quarter to CIT, In our Slide results achieved

the rates quarter driven Reserve negatively by Our by ongoing of sales impacted effect in increasing the third actions. interest were Federal the

standards quarters. with and at increasingly the fourth lighter as In negatively first inventory we contractors addition tighter rate their the to also distributors to sentiment enter the and impact, and impacted by third levels interest traditionally quarter respect was conservative lending

quarter position, margin third We are and consistent our declines, share remain market nonetheless pleased performance, that with sales pricing our despite expectations. the

consecutive a point CCM EBITDA as second EBITDA EBITDA together marking drove and performance in solid XX% of to improvement margins, basis quarter a from XXX delivered the quarter, CCM point throughout the CWT performance margin well delivered economic quarter. improvement strong as our year-over-year improvement in XX%-plus basis CWT remarkable a of second XX This showcases maintain margins and margins a ability cycles. sequentially. sequential

Carlisle brand Carlisle value the complemented customers Experience strength future the Our and by Carlisle's by market are, position, efficiency will through strength driven for remain and under provide XXXX. pillars and the to discipline, Operating we System gains of price Vision

to consolidations, the the related Henry with enhancing X. performance the on have R&R maintaining additional the on our which as year-over-year. experience, acquisition through we efficiencies exceptional yielded EBITDA over invest margins market executing investments COS initiatives. Building long-term the consistent housing the to through growth through brand in quarter their market residential growth offset excellence. One the but to At exposure and us, efficiencies operating driving largely by XX% decades. behind as proven derived in the continue focused this and setting share efficiencies to we the commercial achieving with operational another This problems profile. CWT headwinds expected, note, continue roof EBITDA realizing volume solid and we CCM, a through initiatives. Please solving positive in over solutions. third past from quarter, CWT, factory largely synergies scale and system CWT through and in X the gain quarters team normal user Revenues the more were selling especially innovation story strength reflecting Slide and end commercial destocking team expect success through buying XXXX turn strategies nondiscretionary last and our The remains involves focus faced are operational challenging impact roofing delivered coating excel residential X in to COS performed for Carlisle continues CWT's stage of

creation bullish timing over we restocking we concerns exceedingly While the higher conditions near-term runway. interest value actions, by the acknowledge of challenges remain lending and longer-term Carlisle driven tighter industry-wide rates, on

our cycle, well the from to products mentioned are organization, attractive pure-play more pivot essentially long-term a efficient secular we portfolio benefit with positioned focused that a to include trends building and complete, As earlier, I increasing demand now extremely significant roof, the to the solutions reroofing the throughout process, on need ultimately, increase building for for deliver a and efficiency value and labor robust construction innovation for buildings, desire energy-efficient a ownership. that

backlog and solutions revenue demonstrating to remodel envelope ensure the of demand. CWT's is across demand cycles. to next helping energy-efficient This and provides and of XX% consistent highlight and commercial derived the total repair our mitigate CCM Carlisle's the this from XX% residential I a to from we markets reduce want with projects of XX of XX% building with sales to footage within roof why economic carbon-related reliable replacement spend years. a and of reroofing the products, minute for both derived key are requiring systems to square in backdrop. growing success to ebbs demand buildings. and the exposure in win clearly positioned is from U.S. benefiting and multiyear backlog are certified the flows balanced from integrated lead in drivers emissions

a integrated exceptional R&D high-quality Carlisle at $XXX premium the brand XXXX, ensuring sustainable years. The the has increasing products right and the value introduced products products products as of and with performance system are of place a delivered In and growing sales solutions at in we and we established install. products investment recognized our significantly pipeline a to Experience develop environmentally that easier right right to us have We million time. innovative more are with backed in X proposition by deliver service, improved the have last from

the balance robust growing And and flow X to return almost in cash years, of have to of a for generation, last for value-creating and we significant repurchases. Please growth is lastly, Slides and our a significant for and flexibility, important sustainability. X reliable on Sustainability capital the our initiatives, now shareholders dividends, share through progress us fund X half very sheet and acquisitions, Carlisle. provide to thanks century allowing focus refer to financial internal disciplined consistent opportunistic and strong

that is environment we Carlisle organization, beneficial our creating an is to stakeholder, and shareholders. economically productive sustainable more also environmental a for responsible As a and strongly being believe committed

our achieve In December goal emissions XXXX. announced last by year, of we zero to net

still start initiatives emissions reduction near-term this target taking show time. away, ourselves meet today XXXX To accountable Based is created hold years as by XXXX While to few Targets on and SBTi. with need conjunction two action a we Science to targets the we recognize measurable progress, in also quite short-term the known

from products, emissions energy a X First, GHG both Scope our and GHG operations. X of our from purchased we operational the production committed reduction in manufacturer to XX% our emissions in Scope our

three on lower X We we as also upstream reduction reach we of targets, focused these to downstream our in a and intensity emission GHG to Scope committed feedstocks. To carbon transition XX% pillars.

is pillar energy-efficient products. first The manufacturing

qualified sold products example, worth an than and $X.X Carlisle billion lead to As residential the building commercial more in XXXX, industry. of

as of in U.S. over XXX hours Our million the is power which for customers homes will million-megawatt save as year. lifetime XX those a energy the enough almost to products, much

HFO from In addition, agents formulas we environmentally blowing of to our traditional spray HFC XX% foam formulations. more converted over friendly

carbon-intensive HFCs As reminder, a than are X,XXXx HFOs. more

over the positioning savings. to spray years phasedown the resulted leader of insulation from of a emissions, mandated XX action landscape. tons cost $X EPA emissions to contributed Scope XXX,XXX Carlisle this HFCs while the annual ahead So of X requirements, in HFO reductions in comes Scope at This over tons time, XX,XXX X in million same sustainability GHG HFC foam of and transition as almost

and of in invested control is carbon significant programs are from qualified and shareholders. Earlier example now our by We by another management XXXXX, in factories Sikeston footprint reduce management environmental facilities building drive of ultimately for lowering the this polyiso our and energy an our in our The million leadership year, manufacturing emissions energy Montgomery, in across systems. facilities be prepared to represents including our the Utah XXXXX. This necessary at technology power value green the the pillar end to and Carlisle's facilities new facilities of $XXX qualifying base latest enhancements Tooele, to through year to XXXXX Sikeston, XXXX. also York, processes. and our Missouri ISO emissions our energy advancements our commitment we management waste savings, plants load to we facility. returning New this second ISO generation is nine reducing year, manufacturing our have to and yielding investment is latest solar ISO in over This Both the certification additional XX% programs reflected launched driving Carlisle in advances environmental standard.

We highest including the are platinum lead extremely Sikeston pleased that specifications. meets sustainability standards,

a certification Sikeston vX that building's is standard life We pending a in will United throughout the be also proud our Green the to management efficiency manufacturing industry that we first The approach this platinum final and performance-based in LEED the States LEED lead for by are cycle, facility pleased vX Building country. are Council, measurable entire calls results to transformation.

third away is and includes landfill recycle materials partnerships This programs reducing from landfills. waste. developing Our pillar and to upcycle

which published report, program posted year. These an of are a to and landfills materials, footprint sustainability of our plan clear carbon in examples sustainability our helped X. metric waste Carlisle we to was divert and how our examples As program to since August recover landfills. Please information, the I the inception reduce this you operations corporate recycle we our piloting which on take efforts, reduce XXXX tons superb of to a encourage emissions buildings, and reduce example, contains is has of in a website. of from of end Slide how and turn including ongoing all to at waste at XX,XXX products just few It our roofing look

and Our power margin XXXX. Vision earnings environment this success the challenging demonstrates sustainability in of

maintain capital sustainable XXXX greater organic the to mid-single-digit drive drive scale build reminder, three, included and organic to utilize including allocation approach to a strategy, investment pillars a two, M&A growth, continuous one, As disciplined COS revenue returns-focused with acquisitions; value Vision and four, shareholders. returning accretive drive creation drive synergistic Carlisle and under for improvement, growth; to efficiency; at a capital

course, of could the Vision with talent. With and invest a returned achieved, on of share will in shareholders but and to next paid our continue on, $XXX of XXXX, dividends. Vision journey XXX-year be develop million million And Vision we've to repurchases and focus the as building build will we XXXX Vision XXXX, notably, million rely $XXX to effectively none far phase in upon pivot continuing XXXX $XXX possible complete, now exceptional without in, this And XXXX, with company. in targets a products. turn to thus

to I'll Vision with mentioned our the in to that, as provide we'll XXXX Kevin? creation be released additional about fourth turn well will to details Carlisle stakeholders. And outlook As I quarter. further path December, for provide financial all earlier, as over and it Kevin comprehensive value updated for our details

Chris. Thank you,

$XXX interest delivered million The markets quarter please highlights, while delays. Adjusted the in holding by challenging of XX% as XX% the and to remaining we price/cost at revenues Slide drove million, expected segment project maintained that rates, turn was For driven destock end X. year. tighter of conditions strong we down higher EBITDA pricing which was third due share, from to decline prior lending the quarter. CCM $XX positive discipline margin in

CCM addition, operating In by system. improvement cost culture continuous drove the Carlisle efficiencies our reductions in through supported operating

XX%, initiatives. Slide efficiencies XXXX. Moving through demand to a selling points was XX and Slide continues third the weakness excel team delays. adjusted The due synergies primarily bridge XX.X%, items EPS. to margins in quarter system residential the quarter expanding the decreased with and provides XXX Adjusted operational basis realizing CWT achieving year-over-year through Revenues COS EBITDA X. at to CWT enhancing acquisition, to third of Henry from project margin

$XXX ended and quarter to hand. $X availability flow under repurchases, our notes September cash billion revolving deployed operations paid Slides Moving We million XX $XXX We dividends. generated in on million capital XX, XXXX million million We facility. $XXX third $XX and invested million of of share and senior from $XX in on of toward have our expenditures. and credit continuing with the million Carlisle X repaid of $XXX cash

end the under quarter, repurchase X.X have million third of available share of shares for repurchase the program. As our we

XX. to Turning Slide

updated our We outlook. have XXXX financial QX provided

decline X% in to to fourth revenue year-over-year X% the expect we CCM, quarter. For

For CWT, decline quarter. the to year-over-year in fourth expect revenue XX% we approximately

to the company, to economic and quarter X% challenging the fourth for total the expect is delays. overall We attribute For we project primarily markets which revenue uncertainty, lower year-over-year to decline X%. revenue the causing

volume execution increase year-over-year our better efforts. We are on efficiencies this through Carlisle, remain expected teams operational despite expectations. EBITDA costs points to leading solid the to lower disciplined improvement XXX pricing, price/cost continuous by managing and across capture basis margins approximately is our focused Given the year, which

Chris closing With for to remarks. that, I turn over it

perseverance XXXX closing, Thanks, Carlisle for quarter. optimistic and the Kevin. by to work to the in allowed to I future. done third excellent solid deliver thanks maintain us Their In and all the results employees express once continue for would outlook commitment again Vision like has my of and appreciation an to

formal for our comments. are And we now that concludes ready Operator, questions.

question from of your Wojs Baird. first comes [Operator line Instructions] And from the Tim

you'd company. there you gave us just guidance curious with the was Maybe case base kind share in on as high-level I any kind for kind revenue to of if QX at of assumptions know takes puts of segments ranges start, kind the I and of and kind kind were kind margins. all, of a we of just of about 'XX total planning to that be able think

kind Yes, wrapping going now XXXX it you as we're and Tim, of right planning know, things early, with through division. the up our

to update that. their Vision in December. still We'd like XXXX get in in when we final launch we greater need looks So to detail

Where 'XX. But Kevin months, little XX on have more be our that and help there'll with perspective will be few perspective think going. might you belt. things give is under able 'XX I to our that a we'll think we'll on somewhat share we outlook where our So for a other

Yes.

the So on tailwinds from have the do we -- destocking. some

are we quarter, quarter in for fourth that So XXXX. stable continue XXXX. into expect into to the remained the positive that's that where a will Pricing be third and

The So piece discuss market percentage for that couple demand, too of overall it. as maybe Chris says, early a down of XXXX. end to

of lot our into too, pricing think feedback of very CCM give we've third thing, thing. one I been I've our But there. around core in real 'XX fact, going was, is had markets the as basically things the in you that's thing good saw held for I Kevin's at competitor action. a been -- Tim, on couple to heard all the in And we've the quarter. margins same, stability the if surprised So pricing a flat

positive So volumes I into in going lot this sign of from that's And despite in the a market being despite I of think all talk the down. been think a XXXX. there's competitors rationality

think do bit pressure we I there, little if a a maybe perspective of there. give raws, little

East. don't indirectly that's prices, we I happening out raws think, on you although correlation Middle a our have know related what's And to that to or again, lot of a dependent oil come in direct oil. the

So some that -- continuing and then got we've that with good are CWT. gains

last, for of team, expansion I quarter that think tailwinds, the to good products, innovation action huge and get levels, that CWT bunch you Frank CCM And on and I to be -- a they're and should they're Ready more which to see a that saw in trend both lot margin third to are though some closer new in help think be the should on us and our CWT. know continue with with not aspirational fronts continue work should that CWT. I CCM then we even there taking

Okay.

No, CIT frame given announcement month maybe elaborate that you you discontinued little maybe of time bit looks guys can of there? us and what little helpful. sale Okay. mean the a to like? around price process kind And of that selling a bit kind or last a I made on then that's just moving And give just that operations.

Yes.

been of of conventional think from first We and the process. is I -- pretty all, would think I most strategics. have interest

happy have going a it. is very few with in We Process smoothly. parties the We're process.

would fourth quarter. to in a we have contract the think like I signed sometime

business, you we the process can it. And can our work on would back I have when process. response. the And we can from interest where good in now great by we we've of right if been probably and it's pleased we But going so announcement and close done then It's sooner based if be year, the that, probably that, of and -- you are great. exciting first that you the well that kind a closed after than think tell

Okay.

think for that sale Okay. then for is were -- the the reflected balance in buybacks. to from last or use expecting the And I sheet. of me. don't one quarter fluid you proceeds Good. And think expected I the just a end

in So does could the I in guess, mean you all first quarter the be in to back? what -- would quarter? buyback stock used fourth fourth buyback Or I proceeds lead you of actually your that assumption buy the half? the

Yes.

was million, the for $XXX million So our last plan were the $XXX planning additional the and call we $XXX we talked for that CFT. on on that about on million and year, -- was based

we're really a of $XXX that's So the officially of we million. number that closed on is week $XXX at same. looking But million number the stays you're total And that first of correct, October.

comes question Bryan from next from line your Blair And the of Oppenheimer.

I the dynamics. appreciate on detail all CCM run rate

team comps level down Just reliance seeing further X% and that in month what is first guidance? easing QX? with to align in of X% Does is to set, of there December? the Or November your some the on

I same No, is what's positive as but with you environment, actually, been from bookings Obviously, do I going concerns to seeing happening, think when, billings both how the shaping with October, pleased were perspective November. October we dynamic what think it's a we have up. we're this into and

that What And Price/cost guy. good updated is year guide on there has an year-to-date? a front? Understood. full remains realized been

Yes.

for been realized $XX time million million And million range of to to So range for that point? at we gave yes, $XX full at for last this million to about we the year. $XX $XX narrow expect year, that can and we has the a CCM X/X

But of breakout a segment, How there? to out relative Appreciate quarter that exited or a should Clearly, second XXX we drivers think has if and year, we profitable a step-up been lot again, through. or are And the has unprofitable that expansion. year, third last for obviously points of reading the the good there's synergies And believe basis been margin I this less in guy detail. of business. so, of price/cost it. last the nice. quarter-by-quarter. then CWT playing noise balance Got one, you've margin

margin what any is target there said you the provide and much curious to believe expect aspirational on should if we can Chris, that I Just forward, drivers what closer the CCM. detail going are you

if can compelling you happen. that So make that's quite

business, with And pleased. the a was the of we a COS. then to, the out that, and Kevin from on like of you job synergies more Yes. taken a board lot a credit did hit ones, a rubber few think exited I Mehul all Frank I'd to and acting consolidated teams into nice but of couple here Henry and -- quickly we will there still business, team I and of other looking driver. And One give Carlisle is coming business. We there's I will synergies. thing be and the and one a is to in need. factories coming be part getting really That right with to on really Frank jumped at note

just I Now plans a of get into lot COS COS, because long runway assessments, there And is potential, with there's one done to capital. a we've the and where a with starting we're think see that lot I and spending COS.

operations, better Kevin a couple that's of see I got he'll then on. the other So a streamlining continue think efficiency through operating COS. And things you'll themselves, But has operations touch to of positive.

what's They're Obviously, Chris, well And continued at now, other positive. there, XXXX key as one a at on Yes, see into was from but of XXXX initiatives. that's don't happening right but it. yes, all into with you in expect doing piece and improvement that we that selling resi a highlights job been good the the number.

the So years. year-over-year upcoming in improvement of each

that's our I bring could well to Carlisle, look channel jumping channel job potential Carlisle supplier a doing to another position as -- strengthen of exciting is and as new a too that create us We Frank has. Henry of forth. that that they too, probably we've new is we've with that but new and of at there. back acquisitions that you, Depot opportunities products ways won bit help here were the finding got of year a -- us got good And know products little recently. at very all at to potentially And Frank I little the them and Home some got And the think are into

of overall, So going that nice got aspirational of, plus. of a say, XX margin drive XX, let's on vectors kind to we've lot here to

And question the of Jefferies. from your line from Saree next comes Boroditsky

about owners jobs driven demand. much to to you out Obviously, is they a roof. patch just does reroofing portion ability they the by in Can it, if push appetite large that of them? the time patch decide building CCM And of if do how talk buy a

we've Well, coatings. touch think have who, the way and on Saree, here that. expert got the I afternoon, Henry Mehul who's we Mehul good can by roof on patching And and he

of I obviously, XX, constraining these we been people I is think one warranty want have looking that labor a things warranty. that's but put I know really at But what's amount year And are in the the your constraints XX the for can at to Henry under getting years push extended. be today it roofs, a that has the you always about me a XX routes item business. on their think frame. little we out warranties so, in related And I to is underneath the ultimately, how risk bit, me it's far are reroofed can value out terms warranties, generally, when the to that coatings. or that roof far of warranty. And of do think roof about that you can always start with we XX, talk thing time our push you how But of

centers. data in leaks want don't You

in kind leaks those and or of hospitals facilities things. education want don't You

a big that pushing But creates probably risk profile and it's -- for do percentage it's so it. in small I people pretty they a cases. out really when a most it again And do it, think to I think

to economic coatings. And with be Henry times, remember, will use about maybe hopefully, of Henry can long those how a life Mehul, you coatings sustain want they'll there But the Now more. tougher talk roof.

Yes, absolutely.

coating damage or on they coating are an X Saree, the require extend that several silicon completely years X roof probably the that They cycle not of roof getting There term, going have X roof Henry do of or they're roof solution which past a could years applications could temporary applications. But maybe to leaking. that seasons shape, that's X or mastics, Henry further short in existing that it roofs that restore you're side, by not horrible so. these in lot are offers. So and that's to replaced, roof offer you're they patching X themselves

XQ make coming Understood. I things case points. And up CFT? XXX for outlook to Can us for just then What's in points? where with clear to XXX Without? CIT XXXX up the that? EBITDA that you basis in the basis we're guidance, adjusted your the just think from with help and Is base understand

'XX taking 'XX out we're of that's the CIT Yes, both and number.

Got it.

we maybe prices. your demand Okay. That's talk we year, market then And next oil you've And just the price/cost some that do into end about think one. helpful. market potential I headwinds lower environment last about of a discussed? given if framework competitive see guess on commentaries Can these you given market for how think about

pretty think market a I this seen Well, competitive year. you've

think that. come competing in, time get operators lived would Elevate they've I teams we was think said that when purchased for and as complement we're and that up to Holcim we them, I the we good against. that have I to at mean, sale Firestone,

proven And they've competitor, quality of good playbook good and their acquisition certainly, run they great these how Duro-Last know is Malarkey a things, there. company. always and to GAF a

factories. tough. been everybody continue I to invest It's in in think any see channel and to so will It's sure in and in R&D, the won't tough. invest And I'm And their competition. real we continue changes

there. I much change see So really don't

the were I some had I seeing we're see a think if really Middle I stability don't I see now. in said, may there. action But We we've price disruption. what take dramatic to good other -- the right increase some think price/cost, On due as some pretty raws that opportunity East to or for

more all same. and get get So in bit all, December, things. the right me, we'll here of the And we're that going we reserve in be there color as just closer it's on October. I in we a think to through I to that more to And little have

be able So of to we'll give more that. you

Shmois Garik of from line the from comes question Loop next your And Capital.

the just [indiscernible] quarter? year-on-year I to up is quarter, CWT fourth margin ramp expecting. outlook strong been for -- fourth in on expect has XXX Would points up to the follow the just of be given the just on expansion there? with margins CCM gains how you're wanted the the from coming Or basis margin you all

at balanced or and said earlier last on between looking target piece where, a quarter, for the EBITDA. to It's I as CWT CCM year XX% we're CCM

to We're Last to basis points. So then, CWT. they fourth the improve. probably XXX CWT, quarter. year-over-year And more implies up like with absolutely for full for that the XXX point quarter, to in continue XXX improvement [ yes, year ] basis improvement said it

Perfect. I category the of That's are and ask mostly some there. residential Is wanted was on kind delays side, the segment? on get just around to discussions given seeing you want CWT, project just that project more delays the that the that Or in of impacting nonresidents that to clarity I was helpful. softer?

it's with got to that We're on to say the one you like do that are commercial debt these commercial the up. say more able factors, used standards, tightening I'd I'd be where need source they side. the got to one. when And do than it people lending finding more -- more things they

we labor the a of few is much always the emphasis is, continues pools we next in a to think all Garik, still that's we the years, lot which, labor-saving again, it We and labor think so And then in this. constraint and the really is being Experience Carlisle industry the on see added much. don't people of what We construction don't because products on why labor, gating to changing place item. I be labor over see roles think

it. Got

in just in CCM run on course destocking, to the finally. for Okay. hear channel, its the Last inventories me, some encouraging largely one

a would you conservative to in on bit being. little certainly, point As inventory this expect macro inventories 'XX, expect just would time base some of manage normal to the uncertainties to or view look be distributors at as take more patterns to the distribution case given for prudent but early, their their a you seasonal more a

and a borrowing and be think we a levels today going is It's things cash, right? pretty when they're item. the people to be I Well, you their levels that, inventory of interest like inventory So use have to have line managing rate tightly. with going

leader I they seasonally light, QX as through to business those I because, inventories anyway. looking managing QX, would into get be to CEO and the be and think again, every going at tightly think and is are we just

that's into maybe normal to higher lot interest a some think we are of you I having we going year. the can like thinking a for go a But of So say XXXX XXXX we the think like the rates. year, and as that quarters is couple more outlook I positive historically, double We've with experience of say, whammy think get back really coupled look and a in where what and see destocking back to experience levels to had some normalcy to service they've been term. longer we the level COVID is industry up get the inventory seasonally still

And question line the next Research. comes from your MacGregor Longbow David of from

but what CCM, for said look caught I CWT, -- you I price/cost I those numbers just the wanted quickly, like? them I if missed would for them to think

CWT, year, overall million full $XX for we're plus. the

question industry those and looking will million up percentage TPO terms just for XXXX of or get versus both XXXX, a years? industry XXXX, each X, And $XX . then capacity, back into on for over in for X polyiso, be categories X capacity okay. plus, we

Obviously, And we've this industry lines. in XX-foot sites no Pennsylvania polyiso. Eastern in change has for we A what's Well, TPL think think, added and the Maryland, for I'm in rational one in have I think always did line ago, add and had industry. line in We adding I Eco our We of facility, polyiso. been I looking GAF been might said pretty of our TPO. for add a couple in saw terms back added. Carlisle in as EPDM did years to

I can think of. it. think no So I real that's additions there PVC that

capacity in being or given probably see So added is historical growth industry averages. don't line I We're additional be that. we having I added. compared any been capacity with still the to where massive market think right should in

So I'd say...

any mean, percentage what way added, has is a think I there you've years you as added, X a that ago can to express what when over base about or. GAF maybe

added TPO X% factory, used to least polyiso, say one at capacity the of to we or that about Well, X% industry. in also

still a as probably that's -- probably think mean, think I industry good has grown, I that's the I number.

Last that really That's point Okay. helpful. pivot is question for you're now. passing just me

where you building business, that quite wonder envelope ahead getting that for the are I within the progress see of opportunity? on sort you chapter opportunities you what where there's substantial within could is space you to your building all on if big envelope growth maybe as the congratulations opportunities about pursue you. white you vision, inorganic So a now. Presumably, conceptually of just talk

But -- nails. have an again, we we really getting into garage Yes, wall, building doors, that core of I windows, down well, going got it's that the about for the an you've us, it's all around our look what idea at we things core discussion that shingles, stretches envelope sorts to got ideas, would you extended either from things, be could stuff. that's mean either because be you've think to do could I -- I going and think think synergies if space it doors, other to building when roofing -- into wall. But We envelope, in going channel. the -- get it's

insulated look and piece it opened on for that And that the up cladding and channel. there or think to panels polyiso and opportunities building the is in some with some there things. of some that have be we a we something one things like like do kind in obviously that channel comments wall Frank are said my having metal obviously, that products, the are certain So those has metal new roofing and interesting that. in box added materials could us new and retail and -- processes stores big do at we that things There's there. things and raw we And that, there. We us helps

to don't materials, that, could a channel see that. core We more pretty it would in it that like I far we that to metal, it's you're be example, adhesive, afield. -- cranes there at. But be keep CWT sealants, close think nails, us one going going too, products not for look to too. think enough there's that and there's now. with So synergies find with be enough that what we're things to looking or equipment into as some will CCM, getting related something us for right? into of piece getting So or too roofing like I I said, acquisition, doing

are acquisition Where Chris? now, right multiples

think. This of I the things. moving, is They're interesting one

X% knew at. for to surge down, get realistic we think more like XX%, something happening types all in last X% to of with about range, came we little the I what's pretty and and for be high a had they there's I think depending. moving But market. XX% years, look in the think I couple I they're to COVID probably think, businesses the of were that, value as also lower people bit the that maybe

things events, around seeing in think, the equity keeps monetization markets also private extended wanting to I the time seeing extending.

we so there opportunities to some and multiple think exit lower opportunities may generate And by that in be some space. for looking

your the question Adam Baumgarten of from comes line next And Zelman. from

look the price, assuming year stand you on input would and of of side, stable If impact next today we point? in where stable this costs, how at about that think the terms

there. up breaking you're sorry, -- guess I

in stable for it to year like think get costs, that we want look and stable, too a next year said right was far relatively pretty and look well, Again, were prices, given next tumultuous stable. stable at how does year if year. looks again, markets. now our the I view don't into we what pricing you on what's But this happening been was raws pricing relatively is as

kind stable think, we're But good, wasn't and is fourth think quarter. happens fact, view of what Kevin I as quarter. going beneficial. But to of or last wait another year we're into best see QX the again, have markets. we our quarter, in the the In to dictated indicated QX,

in I of the we down that. in high terms XXXs on were revenue think

and So we be and then. reasonable then is good And in if if somewhere interest rates can stability, quarter think to good get stability keep fourth back year. maybe a economy brings I we year could point year, the XXX, this in get more at range that XXX, into some our start. think can off a for XXX it exit We confidence the we the could level, I think a

Okay. demand your about and strip it in given the And like XQ, little guess XQ the out bit guidance, into then lighter is if a think destocking we seems maybe if than quarter, usual. I we fourth implied

in pieces the there, If one-off through other there's guidance? you kind could just factors kind still if of like that of moving walk some type

all uncertainty just some rates one-off some with of talked that would the things. more uncertainty no the economic biggest of that around about piece, be jobs. to that's market the try really Yes, for interest project and delay the and we delays of people It's those things

further at Mr. you. there time. proceed. Koch, Please are Thank no questions this

call. quarter want on sharing our following I with And on end to and with launching in fourth forward we for and first in up touch be as all XXXX And the Okay. thank us quarter that. to, And then look details move we'll fourth of you. call XXXX. everyone our December we joining the Vision all, those into

talking So very to and you all soon. look to thanks of forward very much,

for does conclude Thank for and our Thank conference that today. participating. Ladies gentlemen, you. all you

disconnect. all may You