-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N6fpg/JITK1a95umXlKfKP9jP9xD5o9q+sqw8BDsQRH2Uoh8HXkunku5Q35ttwPJ aebjggWEc2L6DGOJLwGfNA== 0001047469-97-003922.txt : 19971114 0001047469-97-003922.hdr.sgml : 19971114 ACCESSION NUMBER: 0001047469-97-003922 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARLISLE COMPANIES INC CENTRAL INDEX KEY: 0000790051 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 311168055 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09278 FILM NUMBER: 97713601 BUSINESS ADDRESS: STREET 1: 250 S CLINTON ST STREET 2: STE 201 CITY: SYRACUSE STATE: NY ZIP: 13202 BUSINESS PHONE: 3154779108 MAIL ADDRESS: STREET 1: 250 SOUTH CLINTON STREET STREET 2: SUITE 201 CITY: SYRACUSE STATE: NY ZIP: 13202-1258 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 [X] OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 -------------------------------- OR TRANSITION REPORT PURSUANT TO SECTION 13 [ ] OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to --------------- ----------------- Commission file number 1-9278 --------------------------------------------- CARLISLE COMPANIES INCORPORATED ------------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 31-1168055 (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification no.) 250 South Clinton Street, Suite 201, Syracuse, New York 13202 ------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) 315-474-2500 ------------------------------------------------------------------------ (Registrant's telephone number, including area code) Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- ----- Shares of common stock outstanding at November 1, 1997 30,155,909 ------------- Page 1 of 9 PART I. FINANCIAL INFORMATION CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statement of Earnings Three Months and Nine Months ended September 30, 1997 and 1996 (Dollars in thousands except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED ---------------------- ---------------------- SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Net Sales.............................................. $ 315,707 $ 252,603 $ 940,897 $ 740,039 Cost and expenses: Cost of goods sold................................... 240,618 189,965 725,505 560,547 Selling and administrative........................... 36,331 32,519 105,811 95,446 Research and development............................. 3,942 3,032 11,705 9,110 ---------- ---------- ---------- ---------- 280,891 225,516 843,021 665,103 Operating profit....................................... 34,816 27,087 97,876 74,936 Other income (deductions): Investment income.................................... 409 247 991 452 Interest expense..................................... (3,961) (1,888) (12,231) (5,987) Other, net........................................... 1,045 175 2,652 1,088 ---------- ---------- ---------- ---------- (2,507) (1,466) (8,588) (4,447) ---------- ---------- ---------- ---------- Earnings before income taxes........................... 32,309 25,621 89,288 70,489 Income taxes........................................... 12,791 10,160 35,369 27,948 ---------- ---------- ---------- ---------- Net earnings........................................... $ 19,518 $ 15,461 $ 53,919 $ 42,541 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Average common shares outstanding...................... 31,036 30,980 31,024 30,895 ---------- ---------- ---------- ---------- Net earnings per share:................................ $ 0.63 $ 0.50 $ 1.74 $ 1.38 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Dividends declared and paid per share.................. $ .1400 $ .1225 $ .3850 $ .3425 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
See accompanying notes to interim financial statements. Page 2 of 9 CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES Condensed Consolidated Balance Sheets September 30, 1997 and December 31, 1996 (Dollars in thousands except share amounts)
SEPT. 30, DEC. 31, 1997 1996 ---------- ---------- ASSETS Current assets Cash and cash equivalents.................................... $ 16,274 $ 8,312 Receivables, less allowances of $4,840 in 1997 and $4,097 in 1996.................................... 193,367 158,463 Inventories.................................................. 162,009 137,092 Deferred income taxes........................................ 25,282 25,036 Prepaid expenses and other................................... 21,022 17,030 ---------- ---------- Total current assets....................................... 417,954 345,933 ---------- ---------- Property, plant and equipment.................................. 520,649 483,013 Less accumulated depreciation................................ 239,720 218,775 ---------- ---------- Net property, plant and equipment.......................... 280,929 264,238 ---------- ---------- Other assets Patents and other intangibles................................ 114,305 108,648 Investments and advances to affiliates....................... 14,770 11,976 Receivables and other assets................................. 9,637 9,854 Deferred income taxes........................................ 3,713 1,814 ---------- ---------- Total other assets......................................... 142,425 132,292 ---------- ---------- $ 841,308 $ 742,463 ---------- ---------- ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable............................................. $ 94,424 $ 74,338 Accrued expenses............................................. 120,148 96,310 ---------- ---------- Total current liabilities.................................. 214,572 170,648 ---------- ---------- Long-term liabilities Long-term debt............................................... 218,744 191,167 Product warranties........................................... 72,047 71,478 Deferred compensation and other liabilities.................. (512) 1,667 ---------- ---------- Total long-term liabilities................................ 290,279 264,312 ---------- ---------- Stockholders' equity: Common stock, $1 par value. Authorized 50,000,000 shares; issued 39,330,624 shares.................................... 39,331 39,331 Additional paid-in capital................................... 1,753 480 Retained earnings............................................ 390,829 348,558 Cost of shares in treasury (1997--9,174,815 shares; 1996--9,124,858 shares).................................... (95,456) (80,866) ---------- ---------- Total stockholders' equity................................. 336,457 307,503 ---------- ---------- $ 841,308 $ 742,463 ---------- ---------- ---------- ----------
See accompanying notes to interim financial statements. Page 3 of 9 CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES Condensed Statements of Consolidated Cash Flows Nine Months ended September 30, 1997 and 1996 (Dollars in thousands)
1997 1996 ---------- --------- Operating Activities Net earnings............................................. $ 53,919 $ 42,541 Reconciliation of net earnings to cash flows: Depreciation........................................... 25,238 19,196 Amortization........................................... 4,652 2,896 Changes in assets and liabilities, excluding effects of acquisitions and sale of business: Current & long-term receivables.................... (29,259) (19,579) Inventories........................................ (19,319) (3,760) Accounts payable & accrued expenses................ 22,027 14,516 Prepaid, deferred & current income taxes........... 10,972 (2,853) Loss on sale of facility........................... 332 -- Long-term liabilities.............................. (1,612) 4,063 Other.............................................. 2,138 2,419 ---------- --------- 69,088 59,439 ---------- --------- Investing Activities Capital expenditures..................................... (39,218) (26,061) Acquisitions, net of cash................................ (30,603) (53,437) Sales of property, equipment & business.................. 12,336 4,158 Other.................................................... (2,794) (1,698) ---------- --------- (60,279) (77,038) ---------- --------- Financing Activities Proceeds from short-term borrowings...................... -- 55,989 Proceeds from long-term debt............................. 153,796 -- Reductions of long-term debt............................. (125,127) (11,590) Dividends................................................ (11,647) (10,376) Purchases of treasury shares............................. (17,869) (11,951) ---------- --------- (847) 22,072 ---------- --------- Change in cash and cash equivalents........................ 7,962 4,473 Cash and cash equivalents Beginning of period...................................... 8,312 3,198 ---------- --------- End of period............................................ $ 16,274 $ 7,671 ---------- --------- ---------- ---------
See accompanying notes to interim financial statements. Page 4 of 9 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (1) The accompanying unaudited condensed consolidated financial statements include the accounts of Carlisle Companies Incorporated and its wholly-owned subsidiaries (together, the "Company"). Intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with Article 10-01 of Regulation S-X of the Securities and Exchange Commission and, as such, do not include all information required by generally accepted accounting principles. However, in the opinion of the Company, these financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 1997 and December 31, 1996, the results of its operations for the three months and the nine months ended September 30, 1997 and 1996, and its cash flows for the nine months ended September 30, 1997 and 1996. While the Company believes that the disclosures presented are adequate to make the information not misleading, it is suggested that these financial statements be read in conjunction with the financial statements and notes included in the Company's 1996 Annual Report to Stockholders. (2) The components of inventories are as follows: SEPT. 30, DEC. 31, 1997 1996 ---------- ---------- (000)'S First-in, first-out (FIFO) costs: Finished goods................................. $ 96,769 $ 82,253 Work in process................................ 22,982 17,574 Raw materials.................................. 57,056 51,872 ---------- ---------- $ 176,807 $ 151,699 Excess of FIFO cost over Last-in, First-out (LIFO) inventory value............... (14,798) (14,607) ---------- ---------- LIFO inventory value............................. $ 162,009 $ 137,092 ---------- ---------- ---------- ---------- (3) Net earnings per share of common stock are based on the weighted average number of shares outstanding of 31,035,746 for the three months ended September 30, 1997 and 31,023,928 for the nine months ended September 30, 1997 assuming the exercise of dilutive stock options. Page 5 of 9 Management's Discussion and Analysis of Financial Condition and Results of Operations Carlisle Companies Incorporated reported record third quarter sales and earnings. For the quarter ended September 30, 1997 sales of $315.7 million reflect a 25% increase over 1996 third quarter sales of $252.6 million. Earnings of $19.5 million, or $.63 a share, increased 26% over 1996 earnings of $15.5 million, or $.50 a share. For the nine months ended September 30, 1997, sales totaled $940.9 million, a 27% increase over 1996 sales of $740.0 million. Year-to-date earnings rose 27% to $53.9 million, or $1.74 a share, from 1996 earnings of $42.5 million, or $1.38 a share. Construction Materials segment sales of $94.4 million, for the third quarter 1997, remained flat over 1996 third quarter sales levels, after eliminating the sales of Carlisle's engineered metal roofing business, which was sold in February 1997. On a year-to-date basis, sales of $222.2 million, are down slightly this year compared to 1996, net of engineered metals' sales impact. Declines in volumes in the roofing market overall and tight roofer-labor market conditions have had a negative impact on sales. Favorable product mix, cost control efforts and elimination of the losses of divested engineered metals operations contributed to the 13% increase in 1997 third quarter earnings of $17.1 million and to the 15% increase in year-to-date earnings of $37.0 million. Transportation Products segment sales of $124.2 million for the third quarter reflect a 49% increase over 1996, while earnings of $10.6 million exceeded 1996 levels by 71%. On a year-to-date basis, both sales and earnings increased 51% over 1996. Repeated positive performances at the Company's container leasing joint venture, coupled with significantly improved results at the Company's container manufacturing operations, contributed to this quarter's results. Sales and earnings of the Company's engineered plastics operations continue to benefit from its 1996 integration of the Engineered Plastics Division of Johnson Controls. Fueled by higher sales and production volumes and manufacturing efficiencies, the Company's aerospace wire operations continue to exceed 1996 sales and earnings. Strong performances by the Company's specialized trailer operations continue to contribute positively to this segment's sales and earnings. The negative impact of the strengthening US dollar to European currencies in the heavy friction business offset record sales and earnings attained in the Company's industrial friction business. General Industry segment sales of $97.1 million increased 36% over 1996 third quarter sales of $71.3 million while earnings increased 32% over 1996 to $11.2 million. For the nine-months ended September 30, 1997, segment sales totaled $331.6 million versus $242.7 in 1996. Year-to-date earnings rose 29% to $40.4 million. Increased sales volumes across most OE and aftermarket product lines coupled with improved manufacturing efficiencies and cost reduction programs, continue to produce record sales and earnings at the Company's tire and wheel operations. In July of 1997, the Company completed the acquisition of The City Machine and Wheel Company, a manufacturer and seller of stamped steel wheels to customers in the United States and Canada. In September of 1997, the Company completed the acquisition of Conestoga Tire & Rim Inc. and Wheeltech North America, Inc. Conestoga and Wheeltech are in the business of Page 6 of 9 assembling, marketing and distributing tire and wheel assemblies to various markets in the United States and Canada. Additionally, on October 31, 1997, the Company acquired Tilden Corporation, a value-added distributor of tire and wheel assemblies for the lawn and garden and other specialty tire and wheel markets. Sales in the Company's speciality electronic wire business reached record levels due to the growth of its low density cable products. Third quarter sales in the Foodservice operations maintained the upward trend over 1996 levels while intense competition dampened margins for the quarter. The Company's stainless steel processing equipment operations continue to report favorable results. There are no trends, demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way nor are there any known material trends, favorable or unfavorable, in the Company's capital resources. Working capital was $203.4 million at September 30, 1997 compared to $207.1 million at June 30, 1997 and $123.2 million a year ago. Working capital at September 30, 1996 included short term borrowings which were refinanced in 1997. Page 7 of 9 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits applicable to the filing of this report are as follows: (12) Ratio of Earnings to Fixed Charges. (27) Financial Data Schedule as of September 30, 1997 and for the nine months ended September 30, 1997. (b) Report on Form 8-K No reports on Form 8-K were filed during the quarter for which this report on Form 10-Q is filed. Page 8 of 9 SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CARLISLE COMPANIES INCORPORATED Date November 12, 1997 By /s/ Robert J. Ryan, Jr. ---------------------------- ------------------------------ Robert J. Ryan, Jr. Vice President, Treasurer and Chief Financial Officer Page 9 of 9 EX-12 2 RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 RATIO OF EARNINGS TO FIXED CHARGES The following table sets forth the Company's ratio of earnings to fixed charges for periods indicated:
NINE MONTHS YEAR ENDED DECEMBER 31 ENDED ------------------------------------- 9/30/97 1996 1995 1994 1993 1992 ----------- ------ ------ ----- ------ ------ Ratio of Earnings to Fixed Charges..... 6.26% 7.47% 8.70% 9.73 9.89% 7.78%
For purposes of computing the ratio of earnings to fixed charges, earnings are defined as earnings before income taxes plus fixed charges. Fixed charges consist of interest expense (including capitalized interest) and the portion of rental expense that is representative of the interest factor (deemed to be one- third of minimum operating lease rentals). The earnings to fixed charges calculation reflects the Company's proportionate share of income, expense and fixed charges attributable to the Company's investment in majority-owned unconsolidated subsidiaries and joint ventures. EX-27 3 FDS
5 This schedule contains Summary Financial Information extracted from the Financial Statements of Carlisle Companies Incorporated for the nine month period ending September 30, 1997, and is qualified in its entirety by reference to such Financial Statements. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 16,274 0 198,207 4,840 162,009 417,954 520,649 239,720 841,308 214,572 218,744 0 0 39,331 297,126 841,308 940,897 940,897 725,505 843,021 (2,652) 914 11,240 89,288 35,369 53,919 0 0 0 53,919 1.74 1.74
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