Q4 2021 Carlisle Companies Inc Earnings Call

Speaker 1: both informed and supplied with product.

Supplied with product.

Speaker 1: While our businesses continue to navigate significant supply chain, labor and inflationary challenges as we enter 2022, solid demand fundamentals for all our businesses remain intact. Specifically at CCM, we remain confident in a strong multi-year reroofing cycle, continued pent-up demand from the pandemic challenges in 2020 and 2021.

While our businesses continue to navigate significant supply chain labor and inflationary challenges as we enter 2022 solid demand fundamentals for all our businesses remain intact, specifically in CCM, we remain confident in our strong multi year re roofing cycle continued pent up demand from the pandemic challenges in 2020 in 2012.

One <unk>.

Speaker 1: increasing demand for our products that improve the energy efficiency of buildings, and expanding our ability to meet growing customer demands with a broader suite of products for the building envelope.

Increasing demand for our products that improve the energy efficiency of buildings and expanding our ability to meet growing customer demands with a broader suite of products for the building envelope.

Speaker 1: In our other Carlisle businesses, we are encouraged by increasing passenger travel numbers and improved capital spending in the medical and industrial markets, all of which are returning to pre pandemic levels. And this bodes very well for our CIT and CIT.

In our other Carlyle businesses, we are encouraged by increasing passenger air travel numbers and improved capital spending in the medical and industrial markets all of which are returning to pre pandemic levels and this bodes very well for our CIP.

And CFT businesses.

Speaker 1: Rest assured though, everyone at Carlyle is working on solutions and innovative approaches to help alleviate the pressures experienced in our markets. Our teams continue to take appropriate pricing actions to help mitigate continued inflation pressures, actions that reflect our value to our contractors, distribution channel partners, building owners and architects.

Rest assured though everyone at Carlisle was working on solutions and innovative approaches to help alleviate the pressures experienced in our markets. Our teams continue to take appropriate pricing actions to help mitigate continued inflation pressures actions that reflect our value to our contractors distribution channel partners building owners and architects.

Our solid order trends across our businesses suggest demand remains strong entering 2022, coupled with expectations for supply chain constraints beginning to abate in mid 2022, we expect healthy volume growth at accretive margins across our businesses.

Speaker 1: As solid order trends across our businesses suggest, demand remains strong entering 2022. Coupled with expectations for supply chain constraints beginning to abate in mid-2022, we expect healthy volume growth at accretive margins across our businesses.

Please turn to slide four.

Over the last several years and in particular through the pandemic vision 2025 has ensured clarity of mission and consistent direction for our entire organization.

Speaker 1: Over the last several years, and in particular through the pandemic, Vision 2025 has ensured clarity of mission and consistent direction for our entire organization. In the fourth quarter, we continue to successfully deliver on our key pillars of Vision 2025, including driving organic growth well in excess of 5 percent.

In the fourth quarter, we continued to successfully deliver on our key pillars of vision 2025, including.

Driving organic growth well in excess of 5%.

Speaker 1: In the fourth quarter, we delivered 26% organic growth for the company, both off a rebound of the COVID-induced lows of 2020 by achieving greater price realization.

In the fourth quarter, we delivered 26% organic growth for the company both offer rebound of the covenant do so those are 2020.

By achieving greater price realization.

Speaker 1: As we look forward to the prospects for growth across our business segments, we remain very confident in our ability to generate our targeted mid-single-digit organic growth CAGR in 2022 and beyond.

As we look forward to the prospects for growth across our business segments. We remain very confident in our ability to target to generate our targeted mid single digit organic growth CAGR in 2022.

And beyond.

Speaker 1: An important component of organic growth is demonstrated price leadership. We remain focused on earning price in the marketplace by delivering on the Carlisle experience, which means providing our distributors, contractors, and other channel partners with innovative products of the best quality, at the right place, at the right time, and as efficiently as possible.

An important component of organic growth is demonstrated price leadership, we remain focused on earning price in the marketplace by delivering on the Carlisle experience, which means providing our distributors contractors and other channel partners with innovative products have the best quality at the right place at the right time and as.

Gently as possible.

Speaker 1: We could not provide that value without diligent planning, significant efforts by our operations teams, and collaboration with our suppliers to ensure a steady flow of our necessary inputs.

We cannot provide that value without diligent planning.

Significant efforts by our operations teams in collaboration with our suppliers to ensure a steady flow of our necessary inputs.

Speaker 1: While anticipated supply chain challenges persisted in the fourth quarter, this collaboration proved particularly valuable in this uncertain environment.

While anticipated supply chain challenges persisted in the fourth quarter of this collaboration proved particularly valuable in this uncertain environment.

Speaker 1: Our ability to anticipate these challenges, especially this year, and proactively manage expectations around pricing has enabled us to provide a high level of visibility and service to our channel and to our end user base.

Our ability to anticipate these challenges, especially this year and proactively manage expectations around pricing has enabled us to provide a high level of visibility and service to our channel.

Our end user base.

Speaker 1: In the fourth quarter, we more than offset the significant raw material and freight cost increases experienced in CCM with pricing, meeting our full year target of being price cost neutral for the full calendar year 2021.

In the fourth quarter, we more than offset the significant raw material and freight cost increases experienced in CCM with pricing.

Our full year target of being price cost neutral for the full calendar year 2021.

Speaker 1: Another important pillar of Vision 2025 is to build scale in our highest returning businesses through acquisition.

Another important pillar of vision 2025 is to build scale in our highest returning businesses through acquisition.

Speaker 1: Since the inception of Vision 2025, we've expanded into polyurethanes with the 2017 acquisition of Acela, into architectural metals with the 2018 and 2019 acquisitions of Drexel and Peterson, and most recently expanded into weather, vapor, air, and energy barrier systems with the acquisition of the Henry Company in the third quarter of 2021.

Since the inception of vision 2025, we've expanded into polyurethane was the 2017 acquisition of a seller.

And architectural metals with the 2018, and 19 acquisitions of Drexel and Peterson and most recently expanded into weather vapor Erin energy barrier systems with the acquisition of the Henry company in the third quarter of 2021.

Speaker 1: The Henry Acquisition not only clearly demonstrates execution of our strategy to expand further into the building envelope, but also highlights our drive to increase the content of energy-efficient products in our portfolio. As a reminder, buildings account for approximately 30 to 40 percent of annual global greenhouse gas emissions.

The Henry acquisition, not only clearly demonstrates the execution of our strategy to expand further into the building envelope, but also highlights our drive to increase the content of energy efficient products in our portfolio.

As a reminder, buildings account for approximately 30% to 40% of annual global greenhouse gas emissions.

Henry's weather vapor air and energy energy barrier systems, coupled with our existing polyethylene solutions installation solutions.

Speaker 1: Henry's weather, vapor, air, and energy barrier systems, coupled with our existing polyethylene insulation solutions, help build

Help build.

Speaker 1: reductions in these emissions throughout buildings and in the environment we live in.

Reductions in these emissions throughout buildings and in the environment, We live in.

Speaker 1: With accelerating demand for increasingly energy-efficient products made to help create more sustainable buildings in the future, we will continue to emphasize the development of products that help reduce the carbon emissions of buildings and positively impact the environment.

With accelerating demand for increasingly energy efficient products made to help create more sustainable buildings in the future. We will continue to emphasize the development of products that help reduce the carbon emissions of buildings and positively impact the environment.

Andrew its culture around innovation pricing to value focus on customers and continuous improvement complement ccm's culture very well.

Speaker 1: Henry's culture around innovation, pricing to value, focus on customers, and continuous improvement complement CCM's culture very well. With strong results occurring in these initial post-acquisition months, we are raising our adjusted EPS accretion forecast to over $1.50 in 2022, up from our original commitment of $1.25.

With strong results occurring in these initial post acquisition months, we are raising our adjusted EPS accretion forecast to over a $1 50 in 2022.

From our original commitment of $1 25.

Speaker 1: Finally, in the fourth quarter, we continue to execute on our Vision 2025 Capital Deployment Strategy. We remain committed to maintaining a balanced approach to capital deployment, continuing share repurchases. We spent $25 million on share repurchases during the fourth quarter, bringing our total spend in 2021 to $316 million. I'm proud to report that our cumulative share repurchases since 2017 now stands at $1.8 billion.

Finally in the fourth quarter, we continue to execute on our vision 2025 capital deployment strategy, we remain committed to maintaining a balanced approach to capital deployment continuing share repurchases, we spent $25 million in share repurchases during the fourth quarter, bringing our total spend in 2000 $21 million to $316 million.

I'm proud to report that our cumulative share repurchases since 2017.

Now stands at $1 8 billion.

But they are building products focus in mind, we also announced today that we are realigning our CCM division by creating a new segment organized around Henry's products and applications for the sustainable building envelope.

Speaker 1: With our building products focus in mind, we also announced today that we are realigning our CCM division by creating a new segment organized around Henry's products and applications for the sustainable building envelope.

Speaker 1: With the Henry Acquisition, we've established our Carlisle Weatherproofing Technology Segment, which will be led by Frank Reddy, the President and CEO of Henry since 2014.

With the Henry acquisition, we've established our Carlisle weather Proofing technologies segment, which will be led by Frank ready, the president and CEO of Henry since 2014.

Speaker 1: In addition to Henry, Frank will also take on leadership of our Carlyle coatings and waterproofing business, Carlyle polyurethane systems, and Carlyle diversified products.

In addition to Henry Frank will also take on leadership of our Carlisle coatings, and waterproofing business Carlyle polyurethane systems and Carlisle diversified products.

Speaker 1: Additionally, Steve Schor, who has been with CCM for over 30 years, most recently serving as Senior Vice President of Sales and Marketing, has been promoted to President of Carlisle Construction Materials, which now consists largely of our core U.S. commercial roofing businesses and Carlisle Architects.

Additionally, Steve sure who has been with CCM for over 30 years. Most recently, serving as senior Vice President of sales and marketing has been promoted to president of Carlisle construction materials, which now consists largely of our core U S commercial roofing businesses.

When Carlyle architectural metals.

Speaker 1: Both Frank and Steve will continue to report to next years.

Both Frank and Steve will continue to report to next years.

<unk> has successfully led CCM through some of the most challenging times in its history and we will continue to provide leadership to both segments.

Speaker 1: It has successfully led CCM through some of the most challenging times in its history, and it will continue to provide leadership to both segments.

Speaker 1: Nick and Steve have fortified Carlisle's largest businesses with a deep and talented bench ready to drive its continued expansion into the building envelope.

And Steve have fortified carlyle's largest businesses with a deep and talented bench ready to drive its continued extension into the building envelope.

Speaker 1: And we look forward to this next chapter of our pivot, where we will continue to broaden and deepen our offerings of substantial, sustainable solutions to energy-efficient buildings of the future.

And we look forward to this next chapter of our pivot, where we will continue to broaden and deepen our offerings of substantial sustainable solutions to energy efficient buildings of the future.

Speaker 1: Turning to slide five, in 2021, we continued to make substantial progress on our ESG journey. Our key accomplishments in the fourth quarter included breaking ground on our state-of-the-art polyiso insulation facility in Sykeston, Missouri, which will be built to LEED specifications.

Turning to slide five.

In 2021, we continued to make substantial progress on our ESG journey.

Our key accomplishments in the fourth quarter included.

Breaking ground on our state of the art polyester insulation facility in Sikeston, Missouri, which will be built to lead specifications.

Speaker 1: With progressing on energy audits of our manufacturing facilities, these audits will form the baseline on which we will make a formal commitment on net-zero carbon emissions in the near future. And we're proud to have gained increased recognition for our ESG efforts with Carlisle's inclusion in Newsweek's list of America's Most Responsible Companies.

<unk>, an energy audits of our manufacturing facilities. These audits will form the baseline on which we will make a formal commitment on net zero carbon emissions in the near future.

Proud to gain increased recognition for our ESG efforts with carlyle's inclusion in Newsweek's list of America's most responsible companies.

Turning to slide six.

Speaker 1: Our performance in the fourth quarter of 2021 evidence is continued solid execution.

Our performance in the fourth quarter of 2021 evidence is continued solid execution.

Speaker 1: Revenue increased 39% year-over-year with organic revenue up over 26%. All segments contributed to this growth. Adjusted diluted EPS increased 60% year-over-year to $2.92. It's higher volumes, price, and cost discipline more than offset inflation during the quarter. And Bob will provide more detail around these numbers later.

Revenue increased 39% year over year with organic revenue up over 26% all segments contributed to this growth adjusted diluted EPS increased 60% year over year to $2 92.

As higher volumes price and cost discipline more than offset inflation during the quarter and Bob will provide more detail around these numbers later.

Speaker 1: Turning to slide 7, at CCM our core construction materials businesses delivered an outstanding quarter despite the severe challenges across its supply chain.

Turning to slide seven.

At CCM, our core construction materials businesses delivered an outstanding quarter, despite the severe challenges across its supply chain.

Speaker 1: CCM's organic growth in the fourth quarter was approximately 30% year-over-year, and notably, organic sales were well in excess of the fourth quarter of 2019. CCM continues to benefit from a growing backlog of orders fueled by the strong re-roofing cycle in the U.S., which we continue to forecast will grow at mid-single digits to a market size of over $8 billion in the next decade.

Ccs organic growth in the fourth quarter was approximately 30% year over year, and notably organic sales were well in excess of the fourth quarter of 2019.

<unk> continues to benefit from a growing backlog of orders fueled by the strong re roofing cycle in the U S, which we continue to forecast will grow at mid single digits to a market sizing over $8 billion in the next decade.

Speaker 1: An ever-increasing emphasis on the energy efficiency of buildings, proactive pricing actions, further expansion into retail and residential markets.

And ever increasing emphasis on the energy efficiency of buildings proactive pricing actions.

And their expansion into retail and residential markets and.

Speaker 1: and our investments in expanding our presence in the building envelope.

And our investments in expanding our presence in the building envelope.

Speaker 1: We believe CCM's fourth quarter and full year 2021 results support our view that replacing and upgrading a roof can only be postponed for so long and that the underlying demand trends and value proposition of the Carlisle experience are very much intact.

We believe <unk> fourth quarter and full year 2021 results support our long view excuse me they are replacing and upgrading our roof can only be postponed for so long.

And that the underlying demand trends and value proposition of the Carlisle experience are very much intact.

We're also very pleased with our other growing platforms in CCM that represent our continued expansion efforts into the building envelope.

Speaker 1: We are also very pleased with our other growing platforms in CCM that represent our continued expansion efforts into the building envelope as outlined on slide 8.

As outlined on slide eight.

Speaker 1: Architectural metals was a standout in the fourth quarter, growing over 40% year over year. Polyurethane systems over 20% and Europe grew over 30% year over year. Notably, all platforms continue to progress well on profitability improvements, given price discipline and leveraging COS to drive higher efficiency.

Architectural metals was a standout in the fourth quarter growing over 40% year over year polyurethane systems over 20% in Europe grew over 30% year over year, notably all platforms continue to progress well on profitability improvements given price discipline and leveraging pass to drive higher efficiency.

Speaker 1: Given our history of price leadership and proactive approach to price, we are very pleased that pricing more than offset raw material and freight cost inflation in the fourth quarter, which drew a full year price-cost neutrality, a target we set for 2021 this time last year.

Given our history of price leadership and proactive approach to price.

We're very pleased that pricing more than offset raw material and freight cost inflation in the fourth quarter, which drove full year price cost neutrality target. We set for 2021 this time last year.

Speaker 1: Our multi-year focus on monetizing the value of the Carlisle experience that began in 2016 continues to evolve.

Our multi year focus on monetizing the value of the Carlisle experience that began in 2016 continues to evolve.

Speaker 1: This evolution has resulted in a more robust and comprehensive pricing management philosophy, which was clearly demonstrated during this extreme inflationary environment in 2021.

This evolution has resulted in a more robust and comprehensive pricing management philosophy, which was clearly demonstrated during this extreme inflationary environment in 2021.

Moving to slide nine.

Speaker 1: At CIT, fourth quarter revenue grew over 19% year over year, evidence of continued progress in both its commercial aerospace and medical technology platforms.

At CIT fourth quarter revenue grew over 19% year over year evidence of continued progress in both its commercial aerospace and medical technology platforms.

Speaker 1: Encouragingly, in commercial aerospace, backlog is now at levels not seen since March of 2020. We are encouraged by the growing demand related to narrow-body production driven by steady rebound and global domestic air travel. Longer term, as demand for wide-body production returns with the resumption of international travel, CIT will be well positioned to capture and leverage that growth.

Encouragingly in commercial aerospace backlog is now at levels not seen since March of 2020.

We are encouraged by the growing demand related to narrow body production driven by steady rebound in global domestic air travel longer term as demand for wide body production returns with the resumption of international travel.

It will be well positioned to capture and leverage that growth.

Speaker 1: Over the past several quarters, CIT has taken significant restructuring actions to drive improved profitability. The impact of these actions has shown over the past several quarters driving CIT's profitability on an adjusted EBITDA basis to swing to positive year-over-year growth in the second half of 2021 as the resumption of revenue growth drives greater leverage.

Over the past several quarters city has taken significant restructuring actions to drive improved profitability.

The impact of these actions has shown over the past several quarters driving cit's profitability on an adjusted EBITDA basis to swing to positive year over year growth in the second half of 2021.

The resumption of revenue growth drives greater leverage.

Speaker 1: On the medical side, the team delivered record fourth quarter revenue as hospital capital spending resumes. Longer term, as our medical business gains momentum and adds to its current record backlog, we believe the platform is well positioned to drive and leverage mid to high single digit annual growth going forward.

On the medical side the team delivered record fourth quarter revenue was hospital capital spending resumes longer term as our medical business gains momentum and adds to its current record backlog. We believe the platform is well positioned to drive and leverage mid to high single digit annual growth going forward.

Speaker 1: CFT generated revenue growth of 6% year over year. We continue to be pleased on the progress CFT is making on new products, improved operational efficiencies, price realization from earning the value of innovation, and improved customer experience.

CFT CFT generated revenue growth of 6% year over year, we continue to be pleased on the progress of the progress CFT is making on new products improved operational efficiencies and price realization from earning the value of innovation and an improved customer experience.

Speaker 1: And we're confident these actions will deliver results in the coming quarters.

We're confident these actions will deliver results in the coming quarters with that I'll turn it over to Bob to discuss our financial performance in greater detail Bob Thanks, Chris as Chris mentioned, we had an outstanding fourth quarter.

Speaker 1: With that, I'll turn it over to Bob to discuss our financial performance in greater detail. Thank you, Chris. As Chris mentioned, we had an outstanding fourth quarter. I'm especially pleased about CCM's ability to effectively offset significant inflation by implementing early and effective price actions in 2021. The goal was put in place last February . Please now turn the revenue bridge.

Really pleased about <unk> ability to effectively offset significant inflation.

Early and effective price options in 2021, our goal is put in place last February .

Please now turn to the revenue bridge on slide 10 of the presentation.

Speaker 1: Revenues up 39% in the fourth quarter, driven by volume growth at all of our businesses, price, and the acquisition of Henry. Organic revenue is up 26.4% driven by CCM, which delivered approximately 30% organic revenue growth.

Revenue was up 39% in the fourth quarter, driven by volume growth at all of our businesses.

And the acquisition of Henry.

Organic revenue was up 26, 4% driven by CCM, which delivered approximately 30% organic revenue growth.

Acquisitions contributed 12, 9% of sales growth in the fourth quarter.

Speaker 1: Acquisitions contributed 12.9% of sales growth in the fourth quarter and FX was a 10 basis point headwind.

FX was a 10 basis point headwind.

On slide 11, we have provided.

Speaker 1: On slide 11, we have provided an adjusted EPS, where you can see the fourth quarter adjusted EPS was $2.92, which compares to $1.83 last year.

Adjusted EPS Bridge, where you can see the fourth quarter adjusted EPS was $2 92.

<unk> to $1 83.

Yes.

Speaker 1: Volume price and mix combined accounted for $3.02 of the year-over-year increase.

Volume price and mix combined accounted for $3 and <unk> of the year over year increase.

Speaker 1: raw material, freight, and labor costs were $1.98 spent year-over-year headland. Acquisitions contributed

Raw material freight and labor costs, while $1, 98% year over year pipeline.

Acquisitions contributed <unk> 13.

Interest and tax together with <unk> headwind.

Speaker 1: Interest and tax together were $0.09 headwind. Share repurchase contributed $0.03.

Share repurchases contributed <unk>.

Speaker 1: COS contributed $0.11, and higher OPEX was a $0.13 headwind year over year.

POS contributed 11.

And higher Opex was a 13th headwind year over year.

Now, let's turn to slide 12 to review the fourth quarter performance by segment in more detail.

Speaker 1: Now let's turn to slide 12 to review the fourth quarter performance segment in more detail.

Speaker 1: At CCM, the team again delivered outstanding results with revenue increasing 46.5 percent driven by volume and price along with contributions from Henry.

At CCM the team again delivered outstanding results with revenue, increasing 46, 5% driven by volume and price along with contributions from the Henry.

Speaker 1: On top of that, a 10-basis point FX translation headline.

On top of that a 10 basis point FX translation headwind.

Speaker 1: Notably, all of CCM's product lines deliver double-digit sales growth. CCM effectively managed raw material inflation headwinds experienced in the quarter with disciplined pricing, proactive sourcing, and allocating products to strategic customers.

Notably all of Ccm's product lines delivered double digit sales growth CCM.

CCM effectively manage raw material inflation headwinds experienced in the quarter with disciplined pricing proactive sourcing and allocating products to strategic customers.

Adjusted EBITDA margin at CCM was 21, 3% in the fourth quarter of 260 basis point decline from last year, driven by higher raw material prices labor inflation and a return to more normalized SG&A spending partially offset.

Speaker 1: Adjusted EBITDA margin and CCM was 21.3% in the fourth quarter, a 260 basis point decline from last year driven by higher raw material prices, labor inflation, and a return to more normalized SG&A spending, partially offset by volume, price, and GDP.

By volume price and steel assets.

Speaker 1: Adjusted EBITDA grew 30.5% to $237.5 million, again demonstrating the earning power of our CCM business.

Adjusted EBITDA grew 35%.

$37 $5 million again, demonstrating the earnings power of our CPM business.

Please turn to slide 13 to review Cit's results.

Speaker 1: CIP revenue increased 19.3% in the fourth quarter.

<unk> revenue increased 19, 3% in the fourth quarter.

Speaker 1: CIT's commercial aerospace backlog has consistently grown in 2021 and has now surpassed the second quarter of 2020 level.

Cit's commercial aerospace backlog and has consistently grown in 2021 and has now surpassed the second quarter of 2020 levels.

Cit's medical platform continues to build a robust pipeline of revenue generating products with an increasing backlog the team delivered record sales in the business in the fourth quarter. We continue to expect sequential improvement from pent up demand as the impacts of COVID-19 in hospital, Capex and postpone elective surgeries east.

Speaker 1: CIT's medical platform continues to build a robust pipeline of revenue-generating products with an increasing backlog. The team delivered record sales in the business in the fourth quarter. We continue to expect sequential improvement from pent-up demand as the impacts of COVID-19 on hospital capex and postponed elective surgeries ease.

Speaker 1: CIT's adjusted EBITDA margins improved year-over-year to 15.2 percent during my commercial aerospace and medical volume recovery.

Cit's adjusted EBITDA margins improved year over year to 15, 2% driven by commercial aerospace and medical volume recovery.

Speaker 1: and COS, partially offset by raw materials and labor inflation.

And Pos partially offset by raw materials and labor inflation.

Speaker 1: Given the positive indicators and actions undertaken in 20 and 21 to right-size business, we are optimistic that CIT is positioned to leverage a return to growth over the coming quarters and years and deliver profitability exceeding pre-pandemic levels.

Given the positive indicators and actions undertaken in 2020 one to rightsize. The business. We are optimistic with CIP is positioned to leverage our return to growth over the coming quarters and years and deliver profitability exceeding pre pandemic levels.

Turning now to slide 14.

Speaker 1: CFT sales grew 6% year-over-year in the quarter. Organic revenue improved 7.3% and FX was a 1.3% headwind.

Cft's sales grew 6% year over year in the quarter.

Organic revenue improved seven 3% and FX was a one 3% headwind.

CFT is well positioned to accelerate through the recovery continued stabilization in key end markets driven by an improved industrial capital spending outlook, coupled with new product introductions, which included $18 7 million of incremental new products.

Speaker 1: CFP is well-positioned to accelerate through the recovery due to continued stabilization in key end markets, driven by an improved industrial capital spending outlook, coupled with new product introductions, which included $18.7 million of incremental new products in 2021.

In 2021, along with positive pricing.

Adjusted EBITDA margins of 18% for a 410 basis point improvement year over year. This improvement was driven by both volume and price.

Speaker 1: Adjusted EBITDA margins 18% for a 410 basis point improvement year-to-year. This improvement was driven by both volume and price.

Speaker 1: On slides 15 and 16, we show selected metrics on our balance sheet, which remain strong. We ended the quarter with $324 million of cash on hand and $1 billion of availability under our revolving credit facility.

On slides 15, and 16, we show selected metrics on our balance sheet, which remains strong we ended the quarter with $324 million of cash on hand, and $1 billion of availability under our revolving credit facility.

Speaker 1: We continue to approach capital deployment in a balanced and disciplined manner, investing in organic growth through capital expenditures and opportunistically repursing shares while also actively seeking strategic and synergistic acquisitions.

We continue to approach capital deployment in a balanced and disciplined manner.

Investing in organic growth through capital expenditures and Opportunistically repurchasing shares while also actively seeking strategic and synergistic acquisitions.

Speaker 1: In the quarter, we purchased 107,000 shares for $25 million, bringing our 2021 year-to-date total to 1.9 million shares for $316 million.

In the quarter, we purchased 107000 shares for $25 million, bringing our 2021 year to date total to $1 9 million shares for $316 million.

Speaker 1: We paid $28 million in dividends in the fourth quarter, bringing our 2021 total to $113 million.

We paid $28 million in dividends in the fourth quarter, bringing our 'twenty, one 2021 totaled 300 $113 million.

Speaker 1: We invested $46 million of CapEx into our high-returning businesses to drive organic growth, bringing our 2021 total to $135 million.

We invested $46 million of Capex into our high returning businesses to drive organic growth, bringing our 2021 total to $135 million.

Speaker 1: Free cash flow from continuing operations in the fourth quarter was $92 million, a 58% decline year-over-year. The decline is attributed to the higher volumes in pricing in November and December of 2021, which drove higher receivables, and more notably, year-over-year raw material inflation driving higher working capital compared to 2020 levels.

Free cash flow from continuing operations in the fourth quarter was $92 million.

<unk>, 8% decline year over year.

The decline is attributable to the higher volumes and pricing in November and December of 2021, which drove higher receivables and more notably year over year raw material inflation, driving higher working capital compared to 2020 levels.

Speaker 1: Turning to slide 17 for full year 2022 guidance, we anticipate the following.

Turning to slide 17 for full year 2022 guidance, we anticipate the following.

At CCM the underlying <unk>.

Speaker 1: At CCM, the underlying regroup trends that have provided a solid foundation for growth over the past decade picked up momentum in the second half of 2021, accelerating into 2022. With normalized volumes, strong pricing, and the inclusion of Henry, we expect total revenue growth at CCM to be approximately 30% in 2022.

That are providing a solid foundation for growth over the past decade picked up momentum in the second half of 2021 accelerating into 2022.

With normalized volumes strong pricing and the inclusion of Henry we expect total revenue growth at CCM to be approximately 30% in 2020.

At <unk>, we are encouraged by the recovery in narrow body commercial aircraft in backlog approaching pre pandemic levels. While the first signs of recovery are encouraging demand for wide body aircraft driven by international travel will likely remain muted in 2022.

Speaker 1: At CIT, we are encouraged by the recovery in narrow-body commercial aircraft and backlogs approaching pre-pandemic levels. While the first signs of recovery are encouraging, demand for wide-body aircraft driven by international travel will likely remain muted in 2022.

Speaker 1: In our medical business, backlog continues to build. Taken together and coupled with the significant restructuring that has occurred at CIT over the past 24 months, CIT is now positioned to leverage what we anticipate would be a sustained recovery. We expect CIT revenue growth to be approximately 10% for full year 2022.

And our medical business backlog continues to build taken together and coupled with the significant restructuring that as approach the idea over the past 24 months is now positioned to leverage what we anticipate would be a sustained recovery.

We expect revenue growth to be approximately 10% for full year 2022.

Speaker 1: At CFT, with 10 market strengthening and improvements in the team's execution on our key strategies, including new product introductions accelerating, growth in our newer platforms and price discipline, we expect revenue growth of approximately 10% in 2022.

At CFT with end market, strengthening and improvements and the team's execution on our key strategies, including new product introductions accelerating growth in our newer platforms and price discipline, we expect revenue growth of approximately 10% in 2022.

Finally for Carlisle as a whole we expect to deliver revenue growth of 25% to 30% in 2022.

Speaker 1: Finally, for Carlisle as a whole, we expect to deliver a revenue growth of 25% to 30% in 2022.

Speaker 1: Turning to other items, corporate expenses expected to be flat year-over-year are approximately $120 million.

Turning to other items.

Corporate expense is expected to be flat year over year or approximately $120 million.

Speaker 1: We expect appreciation to be about $100 million and amortization to be nearly $150 million. Fifty-three of that, which is attributable to the Henry acquisition.

We expect depreciation to be about $100 million and amortization to be nearly $150 million 53 of that which is attributable to Henry acquisition.

Speaker 1: We expect free cash flow conversion to be approximately 100%.

We expect free cash flow conversion to be approximately 100%.

And we expect capital expenditures of $150 million.

Speaker 1: and we expect capital expenditures of $150 million.

Speaker 1: Net interest expense is expected to be $90 million for the year, and we expect our tax rate to be approximately 25 percent.

Net interest expense is expected to be $90 million for the year, and we expect our tax rate to be approximately 25%.

Speaker 1: With that, Alan, I'll turn it back over to Chris for closing remarks. Chris?

With that I'll now turn it back over to Chris for closing remarks, Chris. Thanks.

Thanks, Bob.

Speaker 1: 2021 was a challenging year for all of us. The manner in which the Carlisle team approached our challenges, unified, resilient, driven, allowed us to persevere and finish with record results and momentum entering 2022. All of this supporting our conviction in achieving Vision 2025.

2021 was a challenging year for all of us the manner in which the Carlyle team approach to our challenges unified resilient driven allowed us to persevere and finished with record results and momentum entering 2022 all of this.

Supporting our conviction in achieving.

Vision 2025.

Speaker 1: I'm very proud of our Carlisle team, especially the way everyone has shown respect for each other during the pandemic and supported our efforts to follow the CDC guidelines and Carlisle safety protocols.

I'm very proud of our Carlisle team, especially the way everyone has shown respect for each other during the pandemic and supported our efforts to follow the CDC guidelines and Carlisle safety protocols.

Speaker 1: Our team members cooperation with our guidelines has resulted in low levels of infection and serious illness in our workforce and for that I thank everyone at Carlisle.

Our team members' cooperation with our guidelines has resulted in low levels of infection and serious illness in our workforce and for that I think everyone at Carlisle.

Speaker 1: While we anticipate continued challenges throughout our end markets in 2022, we look forward to meeting them head-on and driving continued profitable growth going forward and achieving our strategic goals set forth in Vision 2025. And that concludes our formal comments, Elliot. We're ready for questions.

While we anticipate continued challenges throughout our end markets in 2022, we look forward to meeting them head on and driving continued profitable growth going forward in achieving our strategic goals set forth envision 2025.

And that concludes our formal comments Elliot we're ready for questions.

Thank you for our Q&A, if you'd like to ask a question. Please press star followed by one on your telephone keypad now to change your mind. Please press star followed by one preparing to ask a question taking showing a furnished on mute locally.

Speaker 2: Thank you for our Q&A. If you'd like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask a question, please ensure your phone is unmuted.

Our first question today comes from Bryan Blair from Oppenheimer, Brian . Please go ahead.

Speaker 2: Our first question today comes from Brian Blair from Oppenheimer. Brian , please go ahead.

Thanks, Good afternoon guys.

Good afternoon, Brian .

Hi.

And Bob Thank you for all your help over the years, Kevin look forward to working with you.

Speaker 3: And, Bob, thank you for all your help over the years. Kevin, look forward to working with you.

Thanks, Brian .

Speaker 3: If we, you know, look at your top line CCMF performance in 2021 and

If we.

Yes, I'll get your your topline CCN outperformance in 2021 and and.

Speaker 3: And assume the 30% growth guided for 22, you're massively ahead of expectations to the tune of...

And assuming a 30% growth guided for 'twenty two you are massive.

Massively ahead of expectations to the tune of more than $400 million.

Speaker 3: uh... for this year and revenue uh... how should we think about uh... your volume price and incremental henry contribution

For this year.

Revenue.

Should we think about.

Your volume price and incremental Henry contribution.

Factored into that guidance.

Speaker 1: Yeah, if you think about it, Brian , we're looking at somewhere around 8 to 12 percent price in the base business volume, probably in the 5 to 9 range, and then 12 percent contribution from Henry.

Yes, if you think about it Brian we're looking at somewhere around 8% to 12% price.

In the base business volume probably in the five to $9 range, and then 12% contribution from Henry.

And then that should get you to that.

Yes.

Speaker 3: Yep, and inflation has obviously picked up again to start the year, although that coincided with pretty aggressive January , February pricing. I suspect you guys were ahead of the curve on that.

Okay.

And inflation is obviously picked up again.

To start the year, although that coincided with pretty aggressive January February pricing.

With respect you guys were ahead of the curve on that.

Given current visibility how does your team thinking about price cost for 2022.

Speaker 3: Given current visibility, how is your team thinking about price cost for 2022 and

Speaker 3: to the extent that you can parse it out, you know, first, first, second half dynamic.

To the extent that you can parse it out first versus second half dynamic.

Speaker 1: Brian , Chris here. I think just overall, I think we still see, you know, some pricing, or I should say some inflationary trends here as we are in the first half of the year. And I just guess in general, we're still somewhat optimistic that, you know, we'll get some raw material.

Brian Chris Here I think just overall I think we still see.

On pricing.

Or I should say some inflationary trends here as we.

In the first half of the year and then I guess in general we're still somewhat optimistic that we'll get some raw material.

Speaker 1: Pricing relief as we head into the third quarter and hopefully some labor relief as well, but I'll let Bob more specifically address

Pricing relief as we head into the third quarter and hopefully some labor relief as well, but I'll, let Bob more specifically address.

Speaker 1: Yeah, Brian , overall, we're going to pull back some of the specific price cost guidance due to competitive issues and everything else going on. But to help everyone understand what we see from a profitability standpoint, we expect adjusted EBITDA margins with CCM Henry combined to be up 150 basis points going into next year for the full year or so.

Yes, Brian overall, we're going to pull back some of the.

Specific price cost guidance.

Due to competitive issues and everything else going on but to help everyone understand what we see from a profitability standpoint, we expect adjusted EBITDA margins.

With CCN, Henry combined to be up 150 basis points.

Going into next year for the full year or so.

That's very helpful.

Speaker 3: And focusing on Henry, if you're willing to break this out, how much of the $0.25 plus

And focusing on Henry.

If you're willing to break this out how much of the.

25, plus.

Speaker 3: increase in accretion output would be attributable to stronger growth, price cost, or other factors.

Increase in.

Accretion outlook would be attributable to stronger growth price cost or other factors.

Yes, Brian I think.

Speaker 1: Yeah, Brian , I think, first of all, synergies are running ahead.

First of all synergies are running ahead.

Speaker 1: That's where we'll start. Price cost is helping, and so is organic growth on top of it. So as Chris mentioned in his comments, I mean, we are thrilled with where Henry is and what it's doing, and it's acting exactly like our base DCM business. So it's everything moving in the right direction, not just one thing outweighing another. Yeah, and, Brian , I would just say that, you know, this is a tribute to Frank Reddy and the team and also to prior ownership.

That's where we'll start.

<unk> cost is helping.

So is organic growth on top of it so.

As Chris mentioned in his comments, we are thrilled with where Henry is and what it's doing and it's acting exactly like our base DCM business. So it's everything moving in the right direction not just one thing outweighing. Another yes, Brian I would just say that.

This is a tribute to Frank and the team and all.

Also the prior ownership.

There was really no slowdown in any of the activities that they had underway both.

Speaker 4: There was really no slowdown in any of the activities that they had underway, both, you know, as we were at Carlyle, they were ahead on pricing there, and they did a great job of getting ahead of that and making sure they were also taking care of supply chain, working to be efficient in their factories, and I'm really pleased that through all the turmoil, the acquisition, and then the integration, the teams remained really focused, and that, to me, is what's being delivered, and the synergy is being out of schedule, and then the continued momentum, and so, you know, sales, so we're really pleased, again, we said it when we bought the company, we thought it was a great fit, and we're just pleased with what the Henry team has brought to Carlyle.

As we were at Carlisle. They were ahead on pricing there and they did a great job of getting ahead of that and making sure. They were also taken care supply chain.

We're working to be efficient their factories and I'm really pleased that through all of the turmoil of the acquisition and the integration.

<unk> remained really focused and that to me is what's being delivered in the synergies being ahead of schedule and then the continued momentum in sales. So we're really pleased again, we said when we bought the company. We thought was a great fit and we're just pleased with the Henry team has brought to Carlyle.

All good to hear I appreciate the color. Thanks again.

Speaker 5: All good to hear. Appreciate the color. Thanks again.

But.

Speaker 2: Our next question comes from David McGregor from Longbow Research. David, please go ahead.

Our next question comes from David Macgregor from Longbow Research. Please.

Please go ahead.

Speaker 2: Hi, this is Joe Nolan. I'm for David McGregor. Congrats on a nice quarter.

Hi, This is Joe Nelson on for David Mcgregor, Congrats on a nice quarter.

You're welcome.

Alright.

Speaker 2: Thanks. So first I was just wondering how should we think about cash that you can harvest from working capital? How should we think about that in your 2022 guidance?

Thanks. So first I was just wondering how should we think about cash that you can harvest from working capital how should we think about that in your 2022 guidance.

Speaker 1: I don't think there's going to be a ton of cash harvested. I don't think we're going to have to invest again because we're going to have strong volumes and sales again. When things start going in a different direction, maybe we'll be able to slow down. But as long as sales are up 30 percent, I don't see us harvesting. It's just we're not going to have to put that big investment we did this year with the outsized growth, I'll call it, and the inflation.

I don't think theres going to be a ton of cash harvest. It I don't think we're going to have to invest again with us because we're going to have strong volumes and sales again.

When when things start going in a different direction, maybe we will be able to slowdown, but as long as sales are up 30% I don't see is harvesting. Its just we're not going to have to put that big investment. We did this year with the.

The outsized growth I'll call it any inflation.

Okay. Thanks Thats helpful.

Speaker 2: And then also, could you just talk about the progress that you're making on Europe in terms of share gains and support of specifiers?

And then also could you just talk about the progress that youre, making on Europe in terms of share gains in support of the buyers.

Speaker 4: share gains in support of specifiers. This talk in general in Europe , we're really pleased. Obviously, this starts off with the.

Share gains in support of specifies just talk in general in Europe . We are really pleased obviously with the starts off with the.

Speaker 4: the transition to new leadership under our new

The transition to new leadership under our new.

Speaker 4: Head of Europe , Georg, and he's brought in also some new teams and a new approach. And they're out making as much progress as they can. But, you know, our work to expand with architects, specifiers, and that is an ongoing thing. We do it all the time. One of the key things we need to do is to continue to reinforce our sales team with new products.

Head of Europe , Georg and he's brought in also some new teams and a new approach and they are out.

As much progress as they can but our work to expand with architects. Thus far is and that is an ongoing thing we do it all the time one of the key things we need to do is to continue to reinforce our sales team with new products.

Speaker 4: And new opportunities to bring into the marketplace and so we're pretty excited about the addition of things like Henry

And new opportunities to bring into the marketplace and so we're pretty excited about the addition of things like Henry.

Speaker 4: That's probably, first and foremost, one that I think has a really good, solid opportunity to drive some interest with specifiers in Europe . Obviously, we'll have to make sure the products are fit for the European market from a regulations perspective and local building codes. But then also, some of the products that we're delivering in architectural metals and polyurethanes we think have some excellent fit, which really complement and will provide a full suite of products.

That's probably first and foremost one that I think is a really good solid opportunity to drive some interest with specifier in Europe , obviously, we want to make sure the products are fit for the European market from a regulation perspective and local.

Building codes, but then also some of the products that we're delivering and architectural metals and polyurethane is we think have some excellent fit which really complement and we'll provide a full suite of products for those salespeople to to deliver and I think right now with what they've had in the past around our limited product.

Speaker 4: for those salespeople to deliver. And I think right now with what they've had in the past around our limited product line, they've done an excellent job, but really it's gonna be providing this suite of building envelope solutions for them that'll give us the most progress, I think, with our specifiers. Hopefully that answers your question.

They have done an excellent job at really it's going to be providing this suite of building envelope solutions to them that will give us the most progress I think with our specifier.

Hopefully that answered your question.

Yes that was very helpful.

And then last one for me just within vision 2025, how are you thinking about additional M&A going forward and your path to the goal of 8 billion in revenue and then if you could also just talk about higher M&A pipeline looks at this point in the year.

Speaker 2: Then last one for me, just within Vision 2025, how are you thinking about additional M&A going forward in your path to the goal of $8 billion in revenue? And then if you could also just talk about how your M&A pipeline looks at this point in the year.

Speaker 4: Well, Bob and I can split this one up, you can comment, too. I would say the pipeline looks fairly good. There have been a lot of transactions in the marketplace in a variety of areas. You saw we just picked up a small acquisition to add to Henry's. So you can tell that even with Henry, and I complimented Frank and the management team, I think it shows how much confidence we have in them that we would immediately invest in an acquisition under their leadership. And I know Henry has a list of acquisitions.

Well, Bob I can split this one up you can comment too I would say the pipeline looks fairly good there've been a lot of transactions in the marketplace.

A variety of areas you saw we just picked up a small acquisition to add to Henry So you can tell that even with Henry and I complimented Frank and the management team and I think it shows how much confidence we have.

And then we would immediately.

Invested in acquisition under their leadership and I know Henry has a list of acquisitions.

We have targets in Europe , we have targets now.

Speaker 4: We have targets in Europe , we have targets now in North America as well and other locations. So I think the pipeline is full, obviously pricing has been fairly robust for sellers. I think they're getting good multiples. So again, we're always going to be judicious and make sure that we can deliver on deals like Henry where we can exceed expectations both in terms of EPS accretion and also in terms of synergies. But I'd say we're doing pretty well.

North America as well another location. So I think the pipelines full obviously pricing has been fairly robust for sellers I think theyre getting good multiples. So again, we're always going to be judicious and make sure that we can deliver on deals like Henry where we can exceed our expectations. Both in terms of EPS accretion and also in <unk>.

<unk> of synergies.

But I'd say, we're doing pretty well.

Speaker 1: Yeah, and I think the $8 billion, while it was a goal of ours, I don't see that as being the main goal, as Chris and I talked about many times. I mean, the $15 plus of EPS and the margins and returning cash flow to shareholders is what we've been focused on, and that's where the focus continues, is profitable growth.

Yeah, and I think the $8 billion, while it was a goal of ours I don't see that as being the main goal is Chris and I talked about many times I mean, the $15 plus of EPS.

And the margins and returning cash.

Cash flow to shareholders of what we've been focused on and Thats, where the focus continues as.

As profitable growth.

Got it very helpful. Thanks, I'll pass it along.

Thanks, Joe.

Our next question comes from Adam Baumgarten from Zelman and Associates. Please go ahead.

Speaker 6: Our next question comes from Adam Baumgarten from Zalman & Associates. Adam, please go ahead.

Speaker 1: Hey, good afternoon everyone. Thanks for taking my question. I guess maybe on the supply chain headwinds you guys have been facing, I think the comment was around that maybe abating by mid-year this year. I guess one, have you started to see any relief in the early parts of this year? And then two, are you mainly referring to some of the raw material shortages that you've been facing?

Hey, good afternoon, everyone and thanks for taking my question.

Just maybe on the supply chain and headwinds you guys have been facing I think.

Comment was around that maybe abating by mid year. This year I guess, one have you started to see any relief.

The early parts of this year and then two are you mainly referring to some of the raw material shortages that you've been facing.

Speaker 4: Absolutely, yeah. And sorry for all that lack of clarification. Yeah, really revolving around the raw materials. And I think when we say abating by mid-year, you know, maybe more specifically starting to show improvement by mid-year where we are seeing some, I guess, green shoots as you call them. But, you know, with the Omicron popping up, that didn't help with a different kind of, I think, impact. We've seen the ports and the traditional supply chain issues we've seen. And then I think with Omicron and its rapid spread and then labor I'll call, you know, issues in the marketplace where people were having lots of people calling sick. We saw some delays there. But overall, we just see these trends to getting back to a more normalized.

Absolutely, yes, sorry for that lack of clarification, yes, really revolving around the raw materials and I think when we say abating by mid year, maybe more specifically starting to show improvement by mid year, we are seeing some.

Green shoots as you call them, but.

The AMA crime pumping up that didn't help with it.

Kind of I think impact we've seen in the ports.

And the traditional supply chain issues, we've seen and then I think with <unk> and its rapid spread and then labor.

I'll call it.

She is in the marketplace, where people were having lots of people call in sick, we saw some delays there but overall, we just see these.

These trends to getting back to a more normalized raw material situation and we'd like to see that and more substantial progress by mid year, obviously going to continue to evolve and we hope that there aren't anymore.

Speaker 4: uh... raw material uh... situation and uh... we that we'd like to see that

Speaker 4: have more substantial progress by mid-year. Obviously, it's going to continue to evolve, and we hope that there aren't any more outbreaks of significance that could delay that. But, yeah, we are seeing some things happening right now that are improving things, but mostly on the raw material side, as you said.

Yes.

Outbreaks of significance, we could delay that but yes.

Yes, we are seeing some things happening right now they are improving things, but mostly on the raw material side as you say.

Okay, Great and then just just on the strong replacement demand, which obviously is the vast majority of the business I guess, if we switch gears to new construction given the lag disorder pretty positive indicators, we've seen over the last year do you expect the new construction side of the business, it's actually a tailwind in 'twenty two.

Speaker 1: Okay, great, and then just on the strong replacement demand, which obviously is the vast majority of the business, I guess, if we switch gears to new construction, given the lag to some of the pretty positive indicators we've seen over the last year, do you expect the new construction side of the business to actually be a tailwind in 22?

Speaker 4: I think in 22, well, yeah, you know, we we've been having some meetings with contractors, you know, here in the first quarter. And it does seem like new construction still has some, some good legs to it. If we think about, you know, some specific areas, I'd say that warehouses still.

I think the 22 well yes.

We've been having some meetings with contractors.

In the first quarter.

And it does seem like new construction still has some some good legs.

<unk>.

We think about.

Since specific areas.

I would say that.

Warehouses still.

Speaker 4: are looking pretty good. You know, we see the trends on online ordering and things like that, data warehouses, educational facilities, you know, and really office buildings as well. Despite all the talk we had around COVID and people working from home, we're still seeing some good positive momentum in 2022 in office buildings. So maybe that gives you a little color there.

Are looking pretty good.

We see the trends on online ordering and things like that data warehouses educational.

Facilities.

And really.

Office buildings as well despite all the talk we had around Covid and people working from home, we're still seeing some good.

Positive momentum in 2022 and office buildings. So maybe that gives you a little color there.

That's great well best of luck. Thanks.

Thank you.

Sure.

We now turn to 10 margins from Baird. Your line is now open.

Speaker 6: We now turn to Tim Wodges from BAD. Tim, your line is now open.

Hey, guys. Good afternoon. Thanks, Joe.

Speaker 7: Bob, thanks for everything.

Bob Thanks for everything.

Speaker 7: So, maybe just first question just on volume growth and maybe visibility. Could you talk a little bit about, you know, kind of what you're seeing from a backlog perspective and maybe how the length of that backlog has evolved over the last three to four months? And, you know, do you think about the 5 to 9 percent, you know, kind of guidance for volume growth? How much of that is based on, you know, bringing on incremental capacity versus just seeing that improvement in the supply chain that you talked about, Chris?

So maybe just first question just on volume growth.

Disability.

Could you talk a little bit about.

Kind of what you're seeing from a backlog perspective, and maybe how the length of that backlog has evolved over the last three to four months.

And you're thinking about the 5% to 9% kind of guidance for volume growth how much of that is based on.

Bringing on incremental capacity versus just seeing that improvement in the supply chain.

Yes.

Speaker 8: Yeah, Tim, I think the capacity question is we did start up the TPO line in Carlisle, PA last month, so that's going we haven't lost.

Yes, Tim I think the capacity question is we did start up the GPO line in Carlisle.

Last month, so thats why we Havent loss launched a 16 foot sheet, yet that will be later in the year once the aligning its qualified but we'd have brought on some additional capacity, which will help drive the growth.

Speaker 8: launch the 16-foot sheet yet. That will be later in the year once the line gets qualified. But we have brought on some additional capacity, which will help drive the growth. But, you know, Sykes is not going to be open until next year. So there's not a ton of capacity. I think what we've been able to do, and even this is evident in the fourth quarter, how strong the sales were, our teams have been able to get a little bit more raw material than they thought.

<unk> is not going to be up until next year. So there's not a ton of capacity I think what we've been able to do and even this is evident in the fourth quarter, how strong our sales or our teams have been able to get a little more.

More raw material than they thought.

Speaker 4: and they're able to continue to drive it through the factories and be productive. From what we see now, I don't believe that capacity...

And they are able to continue to drive it through the factories and be productive.

What we see now I don't believe that capacity.

Speaker 8: in the, I'm going to call it the roofing industry, is the gating factor right now. It's the raws coming in. We have plenty of capacity to make more. It's having the raw materials to make it.

I'm going to call it the roofing industry as the.

The gating factor right now, it's the raws coming in we have plenty of capacity to make more it's having the raw materials to make it.

Okay. Okay.

Speaker 7: Okay. Okay. And then I guess on the backlog, I mean, have those, have they shrunk at all or are they elongating or pretty stable?

And then I guess on the backlog I mean those.

And it's shrunk at all or are they are they are the elongated are pretty stable.

Speaker 4: I think there's maybe been a little bit of an increase in backlog, and it really is related to more orders. And I think that's pretty much industry-wide. I don't think there's any limit.

It's been I think has maybe been a little bit of an increase in backlog.

And it really is related to more orders and I think thats pretty much industry wide I don't think there's anyone that's.

Speaker 4: um seeing any lessening here as we start to head into the season and people get prepared to

Seeing any lessening here as we start to head into the season and people get prepared.

Speaker 4: embark on another busy year. Obviously the delays, Tim, as you know, in 2020 just added to it. I mean labor, we talk about raw materials, but on the roof labor is still a big constraint, the installation, and that hasn't, I think raw materials probably will come back sooner.

To embark on another busy year, obviously the delays Tim as you know in 2020, just added to it I mean labor.

We talk about raw materials, but on the roof labor is still a big constraint the installation and that Hasnt I think raw materials, probably will come back sooner.

Speaker 4: than labor will. So we're still, you know, have some gating there.

Then labor well, so we're still have some gating there.

There are a couple of specific items, two that are not related to us as much as other suppliers on the roof like.

Speaker 4: There are a couple specifically items, too, that are not related to us as much as other suppliers on the roof like.

Speaker 4: plates and screws and things like that that are really lower priced items but you got to have them to put a roof down and so even though we may be fine with the TPO sheets and the PVC and EPDM and sealants and adhesives and that we're still there can be some of these small items that can be gating items too so I think labor is a big one and then you know

Plates.

Screws and things like that that are really lower priced items, but you got to have them to put a roof down and so even though we may be fine with the TBO sheets.

ABC, and <unk>, and sealants and adhesives and that we're still there can be some of these small items that can be gating items too. So I think labor is a big one and then.

Some of the things around putting down a complete system or having some constraints out with the contractor as well.

Speaker 4: some of the things around putting down a complete system or having some constraints out with the contractor as well.

Okay. Okay. Good.

Speaker 7: Okay, okay, good. And then just last one I had just by splitting up roofing and waterproofing. I mean, would you would you say that both of those are now kind of growth platforms over time? I mean, are they both going to get incremental capital deployment? And is that I guess the reason for splitting those two businesses up?

And then just last one I had just.

By splitting up roofing and water proofing.

Would you say that both of those are now kind of growth platforms over time.

They both get incremental capital deployment and is that I guess, the reason for splitting up the businesses.

Speaker 4: Yeah, I think, well, for sure, they're both going to get a lot of attention. And you can see, like I said, with that, we've invested already some capital into Henry to help with productivity and operations. We're working on some IT stuff to again, expand capacity of the whole Henry organization. Plus, we've added one acquisition already. So you can bet that that weatherproofing technologies group is going to get

Yes, I think well for sure. They are both going to get a lot of attention and you can see like I said with that we've invested already some capital into Henry to help with.

Productivity in operations, where we're working on some stuff to again expand capacity.

Alrighty reorganization plus we've added one acquisition already so you can bet that that weather proofing technologies group is going to get a lot of focus and <unk>.

Speaker 4: a lot of focus and CCM obviously that's our core. We've been doing that for a long time. We still see a lot of opportunity there. We mentioned Europe .

<unk>, obviously, that's that's our core we've been doing that for a long time, we still see a lot of opportunity there we mentioned Europe we.

Speaker 4: We have other new technologies as well around this building envelope. So there's really nothing in the portfolio within weatherproofing at CCM that isn't going to be a significant, you know, focus for our growth. And that's kind of what we're excited about. We call it the building envelope. When you look at all these verticals, we're starting to really build some strength in each one of these verticals.

We have other new technologies as well around this building envelope. So theres really nothing in the portfolio within weather proofing at CCM that isn't going to be a significant.

Focus for our growth and that's kind of what we're excited about we called building envelope. When you look at all of these verticals, we're starting to really build some <unk>.

Strength in each one of these verticals.

Speaker 4: and give that leadership team, those leadership teams opportunity to execute their visions as well. And then as we work through the continued...

Jim.

That leadership team there those leadership teams opportunity to execute their visions as well and then as we work through the continued.

Speaker 4: downsizing of our portfolio outside of building products, we'll be able to allocate capital to and focus to those from a management perspective as well.

Downsizing of our portfolio outside of building products, we will be able to allocate capital to and focus to those to those from a management perspective.

Okay, Okay, great well.

Speaker 7: Okay, okay, good. Well, thanks for your time and good luck on 22-F. Thanks. Thanks, Jim. Thanks, Ben.

Well, thank you Tom and good luck on offline. Thanks.

Thanks, Tim Thanks, Dan.

Speaker 6: As a reminder, to ask any further questions, please press star followed by one on your telephone keypad now.

As a reminder to ask any further questions. Please press star followed by one on your telephone keypad now.

We now plan to Garik <unk> from loop capital.

Speaker 6: We now turn to Garrick Schmoyne from Luke Capital. Garrick, please go ahead.

Please go ahead.

Hi, Thanks for having me on apologies if my questions are redundant I was dropped earlier, but I wanted to ask just first off on.

Speaker 9: Thanks for having me on. Apologies if my questions are redundant. I was dropped earlier, but I wanted to ask just first off on any seasonality or cyclicality to

Any seasonality or cyclicality too.

Speaker 9: call out for CCM volumes for the year, just kind of recognizing the supply chain headwinds that are still occurring here in the first half of the year. Would you expect the volume growth in CCM perhaps to be a bit more back half-weighted, just given the raw material availability, or maybe conversely, just given the strong growth you guys did the year in 2021, you know, should we expect growth to be maybe a little bit more?

Callout for CCM volumes for the year, just kind of recognizing the the supply chain headwinds that are still occurring here in the first half of the year would you expect the volume growth in CCM, perhaps to be a bit more back half weighted.

Just given the raw material availability or maybe Conversely, just given the strong growth exited the year in.

2021.

Should we expect growth to be maybe a little bit more linear.

Speaker 4: No, I mean, I think for me, Garrick, the only thing that, you know, in terms of seasonality really is just.

No I mean, I think for me Gary the only thing that in terms of seasonality really is just.

Speaker 4: the weather, right? And one of the reasons why we, you know, see fewer roofs put on in the first quarter, fourth quarter is, you know, the parts of the United States that are impacted by winter weather obviously makes it more difficult for contractors to get out and do their job and deal with that. But other than that, I mean, it's pretty much full steam ahead for everybody in terms of work and getting as much done as they can. So I don't see anything else.

The weather right.

One of the reasons why we see less if you put on in the first quarter fourth quarter as you know the.

Parts of the United States that are impacted by.

Winter weather, obviously, it makes it more difficult for contractors to get out and do their job and deal with that but other than that I mean, it's pretty much full steam ahead for everybody in terms of work and getting as much as we can so I don't see anything else.

Impacting us that would be.

Speaker 4: impacting us that would be, you know, different? Yeah, from a volume perspective, no, certainly price will be front half weighted as, as you know, for so total sales be stronger in the first half, but volumes pretty even.

Different.

From a volume perspective, now certainly price will be front half weighted as as you know.

Total sales to be stronger than the first half up volumes.

Evan.

Speaker 9: Yep. Are you seeing any kind of concern on the part of contractors just given inflation and any desire on their end to perhaps delay projects? I recognize you can only defer a commercial reroute for so long, but is that all playing out just given the inflation that's in the market?

Yes.

Are you seeing any.

Kind of concern on the part of contractors, just given inflation and any desire on their end to perhaps delay projects I recognize you're calling for.

Re roof for so long, but is that all.

All playing out just given the inflation thats in the market.

No as I mentioned with Mr. <unk> comment around and I mentioned, the plates and screws and things like that other than may be delaying jazz I don't think there are any contractors out there that are looking to defer jobs with the backlog where it is I think the bigger issue for for someone as if you were to say you wanted to defer your job I think the quote would be well if you differ.

Speaker 4: No, as I mentioned with Mr. Weiss's comment around, and I mentioned the plates and screws and things like that, that may be delaying jobs. I don't think there are any contractors out there that are looking to defer jobs. With the backlog where it is, I think the bigger issue for

Speaker 4: for someone is if you were to say you wanted to defer your job, I think the quote would be, well, if you defer it, you might not get back in the schedule until 2024. There's that much backlog in demand. So right now, I don't think there's anyone that is

You may not get back in the scheduled till 2024, there is that much backlog in demand. So right now I don't think theres anyone.

That is delaying anything unless again, they don't have the labor they don't have the.

Complete system to put down, but I don't think anybody would delay anything willingly because it probably means they're going to be waiting a lot longer than.

They like to you to get back in the schedule.

Yes understood.

Speaker 9: Yep, understood. Um, last question is just on CIT and CFT, just the

<unk> is just on CIT CFT just.

Speaker 9: The comment made in the release around bookings and backlogs coming back to near pre-pandemic levels, just wondering how quickly you would expect that to convert to revenues. And I don't know if you're willing to take a stab as to how quickly revenues come back to pre-pandemic levels in those segments.

The comment made in the there will be around bookings and backlog coming back to near pre pandemic level.

How quickly.

You would expect that to convert to revenues.

If you wanted to take a stab as to how quickly revenues come back to pre pandemic levels in those segments.

Speaker 8: Yeah, I think CFP is going to be a lot earlier with what we're seeing from a, uh, uh, industrial.

Yeah, I think CFT is going to be a lot earlier with what we're seeing from a.

Industrial Capex.

Speaker 8: We mentioned on the call also that the long-haul aircraft.

We mentioned on the call also that the long haul.

Aircrafts.

Speaker 8: you know, 787 and things like that aren't coming back even close to as quickly. So, I guess overall for CIT, you would expect revenue getting back somewhere around 2024, but that also includes the addition of Pervitian. So, from a base arrow business, you're probably looking at 2526, but total CIT would be back by 2024.

787, and things like that arent coming back even close to as quickly. So I guess overall for Ci key you would expect revenue getting back somewhere around 2024, but that also includes.

The addition of <unk>, so from a base Aero business, you're probably looking at $25 26 months totaled.

We'd be back by 2024.

Got it alright, that's all for me Bob Best of luck with Great working with you.

Speaker 9: Got it. All right. That's all for me. Bob, best of luck. It was great working with you.

Thank you I appreciate it.

Speaker 6: Our final question today comes from Kevin Hostavar from North Coast Research. Kevin, please go ahead.

Our final question today comes from Kevin Hocevar from Northcoast Research Kevin. Please go ahead.

Speaker 2: Hey, hey, everybody. Good afternoon. Nice quarter and Bob. It's been a pleasure working with you.

Hey, everybody good afternoon.

And Bob it's been a pleasure working with you.

Speaker 2: So maybe we're going to start on, I guess I just want to clarify in the pricing, you know, based on the guidance for CCM, I think Bobby mentioned pricing, 8 to 12% this year. You know, I imagine you exited the year up like mid to high teens or something in terms of pricing, in terms of that sales number you put up in the fourth quarter. And I know you started the year at zero. So it seems like you anniversary.

So.

Where to start.

I guess I just wanted to.

Clarify in the pricing.

Baked into the guidance for CCM, I think Bob you mentioned pricing, 8% to 12% this year.

I would imagine you exited the year up.

<unk> or something in terms of pricing in terms of that sales number you put up in the fourth quarter and I know you started the year with zero.

It seems like you anniversary it.

Speaker 2: if we just kind of anniversary pricing from last year into this year, it seems like you could probably get to that type of level, at least on the low half of that. But I know you also have the January price increase, you've got a February price increase, both of which are fairly sizable. So I'm curious, you know, how much incremental pricing you're assuming from the 2022 actions versus carry forward pricing? And yeah, just kind of the acceptance of these, the price increases you have out there.

Kind of anniversary pricing from last year into this year. It seems like you could probably get to that type of level at least on the low half of that.

But I know you also have the January price increase you've got a February price increase both of which are fairly sizable so I'm curious.

Sure.

How much incremental pricing, you're assuming from the 2022 action versus carryforward pricing.

Just kind of the acceptance of these up.

Because you have out there.

Speaker 8: Yeah, I mean, they're out there, they're being recognized, so I think we're counting on them to come through. I don't think there's anything unusual with what we're seeing from the price increases.

Yes.

Out there they are being recognized so I think we're counting on them.

To come through I don't think Theres anything unusual with what we're seeing from the price increases.

Speaker 7: Okay, and what about, I've heard, um...

Okay.

I've heard.

Oh No go ahead sorry.

Speaker 8: No, when you look at our guidance of 150 basis point improvement in EBITDA margins, that shows some significant price.

Now when you look at our guidance of 150 basis point improvement in EBITDA margins.

<unk> show some significant price.

Yes, yes, okay.

Speaker 7: Yep. Yep. Okay. And I've heard too that have you guys had to change or have you changed how you price warranties? I've heard that, you know, perhaps those were

I've heard to that have you guys had to change.

<unk> change.

How you price warranties I've heard that perhaps those were.

Speaker 2: you know, pretty low price than historically, maybe even unprofitable. I don't know if that's true or not, but that, you know, those had to be reset to more, you know, reasonable levels. So I'm curious if that's something that's happened. It wasn't clear to me if that's something that happened in 21 or, you know, if it could be happening here in 2022, but curious if you can comment on kind of the warranty.

Pretty low price historically, maybe even unprofitable I don't know, if thats true or not but those have to be reset to more.

Reasonable level. So I'm curious if that's something that has happened.

It wasn't clear to me if that something that happened in 'twenty, one or if it could be happening here in 2022, but curious if you can comment on.

Kind of the warranties.

Speaker 4: Well, we've had warranties for a long time. I think we've handled them differently than others have in the industry. I can tell you that I can't, I don't really want to speak to the profitability, but I can tell you that the CCM team has managed the warranties to be a value add to the people that choose to use them and not something that's a throwaway discounted item. So for sure, we won't be losing any money on them and it is a valuable part of our entire Carlisle experience. So there's value there that gets priced.

While we've had warranties for a long time, I think we've handled them differently than others have in the industry. I can tell you that I can't I don't really want to speak to the profitability, but I can tell you that the CCM team has managed.

The warranties to be a value add to the people that.

Choose to use them and thats something thats, a throw away discounted items so for sure we're.

We won't be losing any money on them and it is a valuable part of our entire Carlisle experience. So theres value there that gets priced but I can't really talk to any major changes because to be honest with you I don't think theres been any.

Speaker 4: I can't really talk to any major changes because, to be honest with you, I don't think there's been any of significance, I would say. But we'll check that out for you.

Significance I would say okay.

But we will check that out for you. Okay. I mean, we will get back.

Speaker 7: Okay. And then lastly, in terms of, you know, mid- to high-single-digit-type volume growth expectations for CCM, you know, this year, I'm curious, you know,

Okay, and then lastly in terms of.

Mid to high single digit type volume growth expectations for CCM.

This year I am curious.

Speaker 7: Is that an industry growth type number or is that, you know, I'm curious how you believe you can perform versus the industry just given, you know, you've got the new capacity that's coming online. I've heard, you know, I think some other, you know, maybe some other competitors had some issues with certain roles and I believe one of your competitors has to change their branding. They lose the branding rights at the end of this year. So I'm not sure if that's an opportunity for distributors to, you know, rethink.

Is that an industry growth type number or is that.

And curious how you believe you can perform versus the industry just given you've got the new capacity.

It's coming online I've heard I think.

Some other maybe some other competitors had some issues with certain raw.

I believe one of your competitors has to change the brand name is the branding rights at the end of this year. So I'm not sure if that's an opportunity for distributors to rethink.

Speaker 2: some things, you know, who they're using, but I guess I'm curious your thoughts on your ability to

Some things you know who they are using but I guess I'm curious your thoughts on your ability to.

Speaker 2: Is there a chance for you to outperform the market or is it going to be so tight that might not be possible?

Yes.

Hi.

Is there a chance to outperform the market or is it going to be so tight that that might not be possible.

Well I know our team at CCM and I know the team and Henry that just came in.

Speaker 4: Well, you know, I know our team at CCM and I know the team at Henry that just came in under Frank and his group. I know in architectural metals, I know everywhere, Europe included, our teams seek to provide, you know, a Carlyle product for every application that's out there. So while we don't win all of them, I would say that our team over the past few years has probably done the best job of.

Frank and his group I know an architectural metals.

Where.

Europe included our teams.

To provide a carlyle product for every application that's out there. So while we don't win all of them I would say that our team over the past few years has probably done the best job of <unk>.

Speaker 4: having the least disruptions, if that makes any sense. And in certain cases, there have been times where we've been able to take some share. But, you know, when we think about even, let's just talk about re-roofing, or we think about, we just mentioned warranty, you know, we're really looking for long-term relationships. Carl has been around a long time. We have a lot of really loyal contractors. We've got a lot of loyal architects and customers that depend on us, and we seek to serve those first. So, in a time like this.

Having the least disruptions if that makes any sense and in certain cases, there have been times, where we've been able to take some share but you know when we think about even let's just talk about re roofing or we think about we just mentioned warranty. We're really looking for long term relationships Carl has been around a long time, we have a lot of really loyal contractors.

We've got a lot of oil market tax and customers that depend on us and we seek to serve those first so at a time like this I know as much as opportunities to gain share may come along.

Speaker 4: I know as much as opportunities to gain share may come along, you know, really, Kevin, with the constraints that are there, we're going to worry less about what everybody else is doing and just make sure we're taking care of the people that are in the Carlisle family and that they get the service they need. And then, hey, look, if it results in us getting some extra share, that's fine. I mean, we definitely want to be the number one and we're going to strive to do that. But we've got to do it under that Carlisle experience. Right product, right place, right time, most efficiently.

Really Kevin with the constraints or they're worried less about what everybody else is doing and just make sure. We're taking care of the people that are in the Carlisle family and that they get the service they need and then hey look if it results in us getting some extra sure. That's fine I mean, we definitely want to be the number one and we're going to strive to do that but we got to do it under that Carlisle experience right.

Product right place right time, most efficiently.

Speaker 4: And we want to pride ourselves on having the best experience for all of our channel partners and our contractors. So, that doesn't really answer it for you. All I can tell you is we think, you know, we've shared a lot of information over the years. We think the market is going to grow, as we've said in the...

We want to pride ourselves on having the best experience for for all of our channel partners and our contractors. So doesn't really answered for you all I can tell you as we think.

We've shared a lot of information over the years, we think the market is there is going to grow as we said in the.

Speaker 4: The commentary that just, you know, over $8 billion will continue to drive towards that. And so things that happen quarter to quarter, you know, we may not focus on as much. And, you know, we're on the right trajectory and we just see that continuing to be the course that the market will take. And, you know, like I said, we'll try to do everything we can to take share, but first we got to serve our existing customers and our existing contractors.

The.

Commentary to just over $8 billion will continue to drive towards that and so things that happen quarter to quarter.

And we may not focus on as much in.

We're on the right trajectory and we just see that continuing to.

To be in the course of the.

Market will take and like I said, we'll try to do everything we can to take share, but first we got to serve our existing customers are our existing contractors.

Okay, Great alright, thank you very much.

Thank you.

Speaker 4: Well, thanks, Elliot. I guess this concludes our fourth quarter 2021 earnings call and I want to thank everybody for their participation. I want to thank all the Carlyle employees for all the hard work they've done. I want to thank all of our partners, especially the people who put their faith in our products every day. And I want to also thank Bob. It's been a great five years in these calls. We've done a few of them together and appreciate all your support. And then Kevin, we'll look forward to doing the next one together. So thanks, everybody. Thanks, Chris. Appreciate it.

Well. Thanks Elliot. This concludes our fourth quarter 2021 earnings call and I want to thank everybody for their participation and I want to thank all of the Carlisle employees for the hard work they've done I want to thank all of our partners, especially the people who put their faith in our products.

Every day and no one else so thanks Bob.

It's been a great five years in these calls we've done a few of them together I appreciate all your support and then Kevin.

We look forward to doing an excellent together so thanks, everybody. Thanks, Chris I appreciate it.

This concludes today's call. We thank you for joining you may now disconnect your lines.

Speaker 6: This concludes today's call. We thank you for joining. You may now disconnect your lines.

Yes.

Speaker 10: Thank you for watching.

Okay.