SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
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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
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(Exact name of registrant as specified in its charter)
Delaware 31-1168055)
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(State or other jurisdiction of I.R.S. employer
incorporation or organization) identification no.
250 South Clinton Street, Suite 201, Syracuse, New York 13202
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(Address of principal executive offices) (Zip code)
315-474-2500
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(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
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Shares of common stock outstanding at May 1, 1997 30,256,375
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Page 1 of 9
PART I. FINANCIAL INFORMATION
CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statement of Earnings
Three Months ended March 31, 1997 and 1996
(Dollars in thousands except per share amounts)
1997 1996
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Net Sales........................................................ $ 287,819 $ 225,121
Cost and expenses:
Cost of goods sold............................................. 224,227 172,750
Selling and administrative..................................... 34,464 30,694
Research and development....................................... 3,855 3,039
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262,546 206,483
Operating profit................................................. 25,273 18,638
Other income (deductions):
Investment income.............................................. 245 109
Interest expense............................................... (3,981) (1,671)
Other, net..................................................... 687 562
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(3,049) (1,000)
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Earnings before income taxes..................................... 22,224 17,638
Income taxes..................................................... 8,803 6,999
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Net earnings..................................................... $ 13,421 $ 10,639
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Average common shares outstanding................................ 31,129 30,778
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Net earnings per share:.......................................... $ .43 $ .35
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Dividends declared and paid per share............................ $ .1225 $ .1100
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See accompanying notes to interim financial statements.
Page 2 of 9
CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, 1997 and December 31, 1996
(Dollars in thousands except share amounts)
MARCH 31, DEC. 31,
1997 1996
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ASSETS
Current assets
Cash and cash equivalents.................................... $ 12,950 $ 8,312
Receivables, less allowances of $4,308 in
1997 and $4,097 in 1996.................................... 176,131 158,463
Inventories.................................................. 149,532 137,092
Deferred income taxes........................................ 25,038 25,036
Prepaid expenses and other................................... 19,435 17,030
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Total current assets....................................... 383,086 345,933
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Property, plant and equipment.................................. 489,431 483,013
Less accumulated depreciation................................ 225,104 218,775
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Net property, plant and equipment.......................... 264,327 264,238
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Other assets
Patents and other intangibles................................ 107,168 108,648
Investments and advances to affiliates....................... 12,735 11,976
Receivables and other assets................................. 10,484 9,854
Deferred income taxes........................................ 2,445 1,814
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Total other assets......................................... 132,832 132,292
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$ 780,245 $ 742,463
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable............................................. $ 81,386 $ 74,338
Accrued expenses............................................. 98,414 96,310
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Total current liabilities.................................. 179,800 170,648
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Long-term liabilities
Long-term debt............................................... 216,457 191,167
Product warranties........................................... 73,002 71,478
Deferred compensation and other liabilities.................. 129 1,667
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Total long-term liabilities................................ 289,588 264,312
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Stockholders' equity:
Common stock, $1 par value. Authorized
50,000,000 shares; issued 39,330,624 shares.................. 39,331 39,331
Additional paid-in capital................................... 1,554 480
Retained earnings............................................ 358,258 348,558
Cost of shares in treasury (1997--8,971,624
shares; 1996--8,979,300 shares)............................ (88,286) (80,866)
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Total stockholders' equity...................................... 310,857 307,503
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$ 780,245 $ 742,463
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See accompanying notes to interim financial statements.
Page 3 of 9
CARLISLE COMPANIES INCORPORATED AND SUBSIDIARIES
Condensed Statements of Consolidated Cash Flows
Three Months ended March 31, 1997 and 1996
(Dollars in thousands)
1997 1996
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Operating Activities
Net earnings.................................................. $ 13,421 $ 10,639
Reconciliation of net earnings to cash flows:
Depreciation................................................ 8,336 6,142
Amortization................................................ 1,540 1,036
Changes in assets and liabilities, excluding
effects of acquisitions and divestitures:
Current & long-term receivables......................... (19,542) (10,136)
Inventories............................................. (14,062) (175)
Accounts payable & accrued expenses..................... 927 (4,739)
Prepaid, deferred & current income taxes................ 7,660 3,511
Long-term liabilities................................... ( 775) (259)
Other................................................... 2,622 1,984
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127 8,003
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Investing Activities
Capital expenditures.......................................... (10,255) (5,776)
Acquisitions, net of cash..................................... (2,104) (37,493)
Sales of property, equipment & business....................... 5,556 2,016
Other......................................................... -- (355)
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(6,803) (41,608)
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Financing Activities
Proceeds from long-term debt................................. 150,006 48,814
Reductions of long-term debt................................. (124,711) (1,853)
Dividends.................................................... (3,721) (3,327)
Purchases of treasury shares................................. (10,260) (8,741)
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11,314 34,893
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Change in cash and cash equivalents............................ 4,638 1,288
Cash and cash equivalents
Beginning of period.......................................... 8,312 3,198
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End of period................................................ $ 12,950 $ 4,486
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See accompanying notes to interim financial statements.
Page 4 of 9
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 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 March 31, 1997 and
December 31, 1996, the results of its operations for the three months
ended March 31, 1997 and 1996, and its cash flows for the three
months ended March 31, 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:
MARCH 31, DEC. 31,
1997 1996
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(000)'S
First-in, first-out (FIFO) costs:
Finished goods.......................................... $ 87,469 $ 82,253
Work in process......................................... 20,846 17,574
Raw materials........................................... 56,000 51,872
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$ 164,315 $ 151,699
Excess of FIFO cost over Last-in,
First-out (LIFO) inventory value....................... (14,783) (14,607)
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LIFO inventory value...................................... $ 149,532 $ 137,092
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(3) Net earnings per share of common stock are based on the weighted average
number of shares outstanding of 31,076,801 for the three months ended
March 31, 1997 assuming the exercise of dilutive stock options.
Page 5 of 9
Management's Discussion and Analysis of
Financial Condition and Results of Operations
We are pleased to report that first quarter 1997 sales set a new record
for Carlisle. First quarter sales of $287.8 million represent a 28% increase
over 1996 first quarter sales of $225.1 million. Net earnings of $13.4
million or $.43 a share, represent a 26% increase over 1996 earnings of $10.6
million, or $.35 a share. Continued record performances from the
transportation products and general industry segments, coupled with a solid
first quarter from the construction materials segment, contributed to the
Company's strong first quarter results.
Construction Materials segment sales, after eliminating the sales of
Carlisle's engineered metal roofing business, which was sold in February
1997, increased 8% over 1996 levels while segment earnings increased a record
31% resulting from a favorable product mix, productivity improvements and
continued cost control strategies. The increased sales are primarily from
domestic roofing and splice tape product lines, as well as additional
international sales. Entering the spring selling season, indications of
strong demand from both new construction and repair and replacement, coupled
with new product introductions to the domestic roofing market, are expected
to produce favorable results for the second quarter.
Transportation Products segment sales increased to $123.6 million in the
first quarter of 1997, a 48% increase over 1996 sales of $83.5 million.
Segment earnings improved 36% over 1996. Segment results not only benefitted
significantly from the expansion of its technical and manufacturing
capabilities within its automotive engineered plastics operations, but
continue to benefit from the specialized transportation trailer operations.
Additionally, the Company's aircraft wire operations set new records in sales
and earnings for the quarter. Continued positive results from the Company's
refrigerated container leasing joint venture partially offset losses at
the container manufacturer due to extremely aggressive pricing by container
manufacturers. Aftermarket activities at the Company's heavy-duty friction
operation continues to be strong, offsetting flat results in the OEM market.
Additionally, the Company acquired Overland Brakes, Inc., a spring brake
manufacturer, and B.D.I., Inc., a brake diaphragm manufacturer, with combined
sales of approximately $11.0 million.
General Industry segment sales were up 26% in the first quarter to $107.6
million from $85.1 million in 1996. Sales in the Company's speciality tire
and wheel operation continue to be strong reflecting favorable sales and
earnings results from the 1996 acquisition of Intero, Inc. and Unique Wheel,
Inc. Foodservice sales increased 17% over 1996 due to increased market
penetration, international sales and the acquisition of Hartstone in 1996.
Hartstone contributed 31% of the increased sales over 1996. Foodservice
completed the acquisition of assets related to the melamine dinnerware
business of Plastics Manufacturing Company in February of 1997. Sales and
earnings from Scherping Systems, acquired in 1996, continue to contribute to
the positive results of the Company's stainless steel in-plant processing
equipment operation.
Page 6 of 9
Working Capital was $203.3 million at March 31, 1997 compared to $175.3
million at December 31, 1996 and $125.0 at March 31, 1996. Cash and cash
equivalents increased $8.5 million, and long-term borrowings increased due
the Company's $150.0 million bond offering in January of 1997 which was used
to eliminate short-term borrowings.
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.
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 March 31, 1997 and for the three
months ended March 31, 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 May 12, 1997 By /s/ Robert J. Ryan, Jr.
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Robert J. Ryan, Jr.
Vice President, Treasurer
and Chief Financial Officer
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