- Record second-quarter sales improve
10.5%
- Record net income of $95.5 million
compares to loss for the fiscal 2017 quarter of $70.9 million
due to impairment and business exit charges
- Record earnings per diluted share of
$0.70 compare to year-ago loss per share of $0.54 and “adjusted”
year-ago earnings per share of $0.52
- Fiscal 2018 guidance increased
RPM International Inc. (NYSE:RPM) today reported record sales,
net income and diluted earnings per share for its fiscal 2018
second quarter ended November 30, 2017. Sales increased 10.5% and
net income of $95.5 million, or $0.70 per diluted share, compared
to a year-ago net loss of $70.9 million, or loss of $0.54 per
diluted share. The fiscal 2017 second-quarter results included a
$188.3 million pre-tax ($129.2 million or $0.97 per diluted share,
after-tax) impairment charge. The fiscal 2017 second-quarter
results also included a charge of $12.3 million, or $0.09 per
share, which had no tax impact, related to the decision to exit an
industrial segment business in the Middle East.
Second-Quarter Results
Net sales of $1.32 billion were up 10.5% over the $1.19 billion
reported a year ago. Organic sales improved 4.2% and acquisition
growth added 4.7%. Foreign currency translation increased sales by
1.6%. Net income of $95.5 million compares to last year’s adjusted
net income of $70.5 million. Earnings per diluted share of $0.70 in
the current quarter, which included a $0.09 per diluted share tax
benefit relative to last year’s tax rate, compare to an adjusted
$0.52 per diluted share last year. Earnings per diluted share
increased 34.6% from last year’s adjusted earnings per diluted
share of $0.52, and increased 17.3% excluding the $0.09 per diluted
share tax benefit. Income before income taxes (IBT) of $109.2
million compares to a loss before income taxes of $106.9 million
reported in the fiscal 2017 second quarter. RPM's consolidated
earnings before interest and taxes (EBIT) of $131.8 million compare
to a consolidated loss before interest and taxes of $86.4 million
reported in the fiscal 2017 second quarter. Excluding the year-ago
charges, RPM’s consolidated EBIT for the fiscal 2018 second quarter
improved 15.4% over $114.2 million in the fiscal 2017 second
quarter. The EBIT improvement of 15.4% included the cost savings
benefit in “Corporate/Other” expenses of $11.1 million from lower
pension, healthcare, acquisition-related expenses and professional
fees.
“We were very pleased with RPM’s results during the fiscal
second quarter. Our strategically balanced business model performed
as intended with strength in our industrial and specialty
businesses offsetting weakness in our consumer segment. Sales
growth was strong across all three of our business segments, with a
balance of organic and acquisition growth. We are also seeing the
benefits of last year’s product line acquisitions and cost
reduction efforts on improved leverage, which more than offset
higher raw material costs that have negatively impacted gross
profit margins,” stated Frank C. Sullivan, chairman and chief
executive officer.
Second-Quarter Segment Sales and Earnings
During the fiscal 2018 second quarter, industrial segment sales
increased 11.0%, to $702.9 million from $633.4 million in the
fiscal 2017 second quarter. Organic sales improved 5.4%, while
acquisition growth added 3.3%. Foreign currency translation
increased sales by 2.3%. IBT for the industrial segment increased
34.6%, to $67.7 million from $50.3 million in the fiscal 2017
second quarter. Industrial segment EBIT increased 34.5%, to $70.2
million from $52.2 million in the fiscal 2017 second quarter.
Industrial segment EBIT was up 8.9% over an adjusted $64.5 million
in the fiscal 2017 second quarter, excluding last year’s charge to
exit a Middle Eastern flooring business.
“Our strong organic sales growth of 5.4% in the industrial
segment was driven by North American roofing and those businesses
providing polymer flooring to commercial and industrial markets. We
also saw a slight rebound in our companies serving the oil and gas
industry, which reported positive organic year-over-year sales
growth for the first time in three years. We continue to see mixed
results from our industrial businesses in Europe, while Latin
American industrial operations, particularly in Brazil, continue to
struggle. EBIT margins were negatively impacted by higher raw
material costs and unfavorable transactional foreign currency
exchange,” Sullivan stated.
RPM’s fiscal 2018 second-quarter consumer segment sales
increased 11.1%, to $415.4 million from $373.8 million a year
ago. Organic sales increased 3.0%, while acquisition growth added
7.3%. Foreign currency translation increased sales by 0.8%. The
consumer segment had IBT of $45.1 million, compared to a loss
before income taxes of $140.6 million in the fiscal 2017
second quarter. The segment reported EBIT of $45.2 million,
compared to a loss before interest and taxes of $140.6 million
reported last year. EBIT was off 5.3% from an adjusted $47.7
million in the fiscal 2017 second quarter, which excludes the
impairment charge related to RPM’s consumer nail enamel
business.
“During the quarter, we saw a sharp uptick in business from
caulks and sealants products, as well as some international
markets. The segment also benefited from last year’s acquisitions
of Touch ‘N Foam in the U.S. and SPS in Europe. The decline in EBIT
resulted from higher raw material costs and unfavorable
manufacturing absorption and product mix,” stated Sullivan.
Second-quarter sales for the specialty segment increased 7.4%,
to $197.1 million from $183.6 million in the fiscal 2017 second
quarter. Organic growth was 2.8%, while acquisitions added 3.8%.
Foreign currency translation increased sales by 0.8%. IBT for the
specialty segment increased 10.5%, to $34.4 million from $31.2
million in the fiscal 2017 second quarter. Specialty segment EBIT
improved 10.8%, to $34.4 million from $31.0 million a year ago.
“We experienced strong growth in many of our specialty segment
product lines, particularly U.S.-based restoration service
businesses, with higher than normal sales volumes into the
hurricane impacted regions prior to and after the storms, as well
as powder coatings and wood finishes, after overcoming lost sales
from last year’s closure of an unprofitable European business and
recent patent expiration. We were able to mitigate the negative
impact of the patent expiration by retaining most of our larger
customers,” Sullivan stated.
Cash Flow and Financial Position
For the first half of fiscal 2018, cash from operations was
$115.2 million, compared to $158.7 million a year ago. Capital
expenditures of $45.3 million compared to $48.0 million during
the first half of last year. Total debt at November 30, 2017 was
$2.14 billion, compared to $1.64 billion at
November 30, 2016 and $2.1 billion at May 31, 2017. RPM’s
net (of cash) debt-to-total capitalization ratio was 53.8%,
compared to 52.8% at November 30, 2016. At November 30, 2017,
liquidity stood at $971.7 million, including cash of $267.9 million
and $703.8 million in long-term committed available credit.
First-Half Sales and Earnings
Fiscal 2018 first-half net sales improved 8.9%, to $2.66 billion
from $2.44 billion during the first six months of fiscal 2017.
Organic growth was 2.5%, acquisitions added 5.5% and positive
foreign currency translation added 0.9%. Net income improved
406.4%, to $211.9 million from $41.8 million in the fiscal 2017
first half. Diluted earnings per share were $1.56, up 387.5% from
$0.32 a year ago. IBT of $264.5 million was up 535.5% over the
$41.6 million reported in the fiscal 2017 first half. EBIT of
$309.4 million was 281.8% above the $81.0 million reported last
year. Excluding the impairment and Middle East business exit charge
in fiscal 2017, fiscal 2018 first half EBIT was up 9.9% over an
adjusted $281.6 million last year.
First-Half Segment Sales and Earnings
RPM’s industrial segment fiscal 2018 first-half sales were up
9.4%, to $1.43 billion from $1.31 billion in the fiscal 2017
first half. Organic sales increased 3.8%, while acquisition growth
added 4.2%. Foreign currency translation increased sales by 1.4%.
IBT for the industrial segment increased 12.2%, to
$156.6 million from $139.6 million in fiscal 2017. EBIT of
$161.7 million was up 12.8% from $143.3 million in the first
half last year. Excluding the Middle East business exit charge last
year, industrial segment EBIT increased 3.9%, from
$155.6 million a year ago.
First-half sales for the consumer segment improved 8.9%, to
$842.6 million from $773.7 million a year ago. Organic sales were
flat, but acquisition growth added 8.5% and foreign currency
translation increased sales by 0.4%. The consumer segment reported
IBT of $117.5 million, compared to a loss before interest and taxes
of $70.5 million in the year-ago first half. EBIT of $117.8 million
compares to a loss before interest and taxes in the fiscal 2017
second quarter of $70.5 million. Consumer segment EBIT was
essentially flat to an adjusted EBIT of $117.8 million last year,
excluding the impairment charge.
Specialty segment sales grew 7.1%, to $385.6 million from $359.9
million in the 2017 first half. Organic growth was 2.9%, while
acquisitions added 3.9%. Foreign currency translation increased
sales by 0.3%. IBT for the specialty segment increased 9.6%, to
$67.6 million from $61.7 million in fiscal 2017. For the first half
of fiscal 2018, specialty segment EBIT increased 9.8%, to $67.4
million from $61.4 million a year ago.
Business Outlook
“In our industrial segment, we expect steady results during the
second half of the fiscal year from our North American commercial
construction-related businesses, aided by higher sales in regions
impacted by hurricanes, as well as continued positive results from
our businesses serving the oil and gas markets. Our business in
Brazil seems to have bottomed out and should be neutral in the back
half. Overall, the global economy is improving and currency
translation is favorable. Additionally, we are driving improved
operating leverage throughout the entire industrial segment by
continually pursuing additional cost savings and efficiencies. With
this global backdrop, industrial segment sales growth for the
balance of the fiscal year should be in the upper-single-digit
range,” stated Sullivan.
“In the consumer segment, we expect sales growth in the
low-to-mid-single-digit range during the back half of the fiscal
year. Most of the growth will be organic, as last year’s
acquisitions annualize their purchase date during the third
quarter. We plan to invest in our great brands by stepping up
advertising and promotional activity in the spring sell-in season
and, therefore, expect back-half earnings results to be fairly flat
to last year in this segment,” he stated.
“In the specialty segment, we expect sales growth in the
low-single-digit range during the back half of the fiscal year.
This, too, will be mostly organic as last year’s acquisitions also
annualize their purchase date during the third quarter. We will
continue to face headwinds from the patent expiration through the
first quarter of fiscal 2019,” he stated.
“In aggregate, our operations have performed in line with our
expectations when we issued our fiscal 2018 guidance back in July,
and we would expect this trend to generally continue in the back
half of this fiscal year. In regard to our taxes, our 19.6%
effective tax rate for the first six months has been better than
expected. We approved and completed certain foreign legal entity
restructurings that resulted in the recognition of favorable
discrete tax benefits that reduces our annual effective tax rate
from the rate utilized for our current EPS guidance,” Sullivan
stated.
“With the enactment of new federal tax legislation two weeks
ago, there is a corporate rate reduction from 35% to 21%. The
corporate rate reduction is effective for us as of January 1, 2018
and accordingly will reduce our current fiscal year federal
statutory rate to a blended rate of approximately 29.2%. This is
expected to further reduce RPM’s effective tax rate this year by
two to three percentage points, adding approximately $0.10 per
diluted share to our fiscal 2018 outlook. Additionally, in the
third quarter we expect to record a discrete tax adjustment for the
impact of the rate change on our deferred tax assets and
liabilities, as well as the impact of the transition tax on
deferred foreign earnings,” stated Sullivan. “Excluding this
one-time discrete tax adjustment resulting from the new federal tax
legislation, we are increasing our full-year fiscal 2018 EPS
guidance to a range of $3.00 to $3.10 per share.”
Webcast and Conference Call Information
Management will host a conference call to discuss these results
beginning at 10:00 a.m. EST today. The call can be accessed by
dialing 888-771-4371 or 847-585-4405 for international callers.
Participants are asked to call the assigned number approximately 10
minutes before the conference call begins. The call, which will
last approximately one hour, will be open to the public, but only
financial analysts will be permitted to ask questions. The media
and all other participants will be in a listen-only mode.
For those unable to listen to the live call, a replay will be
available from approximately 12:30 p.m. EST on January 4, 2018
until 11:59 p.m. EST on January 11, 2018. The replay can be
accessed by dialing 888-843-7419 or 630-652-3042 for international
callers. The access code is 46126264. The call also will be
available both live and for replay, and as a written transcript,
via the RPM web site at www.RPMinc.com.
About RPM
RPM International Inc. owns subsidiaries that are world leaders
in specialty coatings, sealants, building materials and related
services across three segments. RPM’s industrial products include
roofing systems, sealants, corrosion control coatings, flooring
coatings and other construction chemicals. Industrial companies
include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Euclid
Chemical and RPM Belgium Vandex. RPM's consumer products are used
by professionals and do-it-yourselfers for home maintenance and
improvement and by hobbyists. Consumer brands include Rust-Oleum,
DAP, Zinsser, Varathane and Testors. RPM’s specialty products
include industrial cleaners, colorants, exterior finishes,
specialty OEM coatings, edible coatings, restoration services
equipment and specialty glazes for the pharmaceutical and food
industries. Specialty segment companies include Day-Glo, Dryvit,
RPM Wood Finishes, Mantrose-Haeuser, Legend Brands, Kop-Coat and
TCI. Additional details can be found at www.rpminc.com and by
following RPM on Twitter at www.twitter.com/RPMintl.
For more information, contact Barry M. Slifstein, vice president
– investor relations, at 330-273-5090 or bslifstein@rpminc.com.
Use of Non-GAAP Financial Information
To supplement the financial information presented in accordance
with Generally Accepted Accounting Principles in the United States
(“GAAP”) in this earnings release, we use EBIT, a non-GAAP
financial measure. EBIT is defined as earnings (loss) before
interest and taxes. We evaluate the profit performance of our
segments based on income before income taxes, but also look to EBIT
as a performance evaluation measure because interest expense is
essentially related to acquisitions, as opposed to segment
operations. For that reason, we believe EBIT is also useful to
investors as a metric in their investment decisions. EBIT should
not be considered an alternative to, or more meaningful than,
income before income taxes as determined in accordance with GAAP,
since EBIT omits the impact of interest in determining operating
performance, which represent items necessary to our continued
operations, given our level of indebtedness. Nonetheless, EBIT is a
key measure expected by and useful to our fixed income investors,
rating agencies and the banking community all of whom believe, and
we concur, that this measure is critical to the capital markets'
analysis of our segments' core operating performance. We also
evaluate EBIT because it is clear that movements in EBIT impact our
ability to attract financing. Our underwriters and bankers
consistently require inclusion of this measure in offering
memoranda in conjunction with any debt underwriting or bank
financing. EBIT may not be indicative of our historical operating
results, nor is it meant to be predictive of potential future
results. See the financial statement section of this earnings
release for a reconciliation of EBIT to income before income
taxes.
Forward-Looking Statements
This press release contains “forward-looking statements”
relating to our business. These forward-looking statements, or
other statements made by us, are made based on our expectations and
beliefs concerning future events impacting us, and are subject to
uncertainties and factors (including those specified below) which
are difficult to predict and, in many instances, are beyond our
control. As a result, our actual results could differ materially
from those expressed in or implied by any such forward-looking
statements. These uncertainties and factors include (a) global
markets and general economic conditions, including uncertainties
surrounding the volatility in financial markets, the availability
of capital and the effect of changes in interest rates, and the
viability of banks and other financial institutions; (b) the
prices, supply and capacity of raw materials, including assorted
pigments, resins, solvents and other natural gas- and oil-based
materials; packaging, including plastic containers; and
transportation services, including fuel surcharges; (c) continued
growth in demand for our products; (d) legal, environmental and
litigation risks inherent in our construction and chemicals
businesses and risks related to the adequacy of our insurance
coverage for such matters; (e) the effect of changes in interest
rates; (f) the effect of fluctuations in currency exchange rates
upon our foreign operations; (g) the effect of non-currency risks
of investing in and conducting operations in foreign countries,
including those relating to domestic and international political,
social, economic and regulatory factors; (h) risks and
uncertainties associated with our ongoing acquisition and
divestiture activities; (i) risks related to the adequacy of our
contingent liability reserves; and (j) other risks detailed in our
filings with the Securities and Exchange Commission, including the
risk factors set forth in our Annual Report on Form 10-K for the
year ended May 31, 2017, as the same may be updated from
time to time. We do not undertake any obligation to publicly update
or revise any forward-looking statements to reflect future events,
information or circumstances that arise after the date of this
release.
CONSOLIDATED STATEMENTS OF INCOME IN THOUSANDS,
EXCEPT PER SHARE DATA (Unaudited)
Three Months Ended
Six Months Ended November 30, November 30,
2017 2016 2017 2016 Net
Sales $ 1,315,416 $ 1,190,770 $ 2,660,810 $ 2,442,833 Cost of
sales 764,401 669,089 1,537,787
1,369,110 Gross profit 551,015 521,681
1,123,023 1,073,723 Selling, general & administrative expenses
419,599 419,494 814,008 803,579 Goodwill and other intangible asset
impairments 188,298 188,298 Interest expense 26,396 22,905 53,169
45,683 Investment (income), net (3,739 ) (2,416 ) (8,192 ) (6,254 )
Other expense (income), net (422 ) 257
(427 ) 799 Income (loss) before income taxes 109,181
(106,857 ) 264,465 41,618 Provision (benefit) for income taxes
13,323 (36,601 ) 51,704
(1,520 )
Net income (loss) 95,858 (70,256 ) 212,761 43,138
Less: Net income attributable to noncontrolling interests
395 670 882 1,295
Net income (loss) attributable to RPM International Inc.
Stockholders $ 95,463 $ (70,926 ) $ 211,879 $
41,843
Earnings (loss) per share of common stock
attributable to RPM International Inc. Stockholders:
Basic $ 0.72 $ (0.54 ) $ 1.59 $ 0.32
Diluted $ 0.70 $ (0.54 ) $ 1.56 $ 0.32
Average shares of common stock outstanding - basic
131,163 130,695 131,204
130,647 Average shares of common stock outstanding - diluted
135,592 130,695 135,663
130,647
SUPPLEMENTAL SEGMENT
INFORMATION IN THOUSANDS (Unaudited)
Three Months Ended
Six Months Ended November 30, November 30,
2017 2016 2017 2016 Net Sales:
Industrial Segment $ 702,905 $ 633,429 $ 1,432,673 $ 1,309,269
Consumer Segment 415,431 373,774 842,575 773,661 Specialty Segment
197,080 183,567 385,562
359,903
Total $ 1,315,416 $ 1,190,770
$ 2,660,810 $ 2,442,833
Income
Before Income Taxes: Industrial Segment Income Before Income
Taxes (a) $ 67,696 $ 50,291 $ 156,598 $ 139,557 Interest (Expense),
Net (b) (2,513 ) (1,906 ) (5,067 )
(3,743 ) EBIT (c) 70,209 52,197 161,665 143,300 Charge to exit
Flowcrete Middle East (d) - 12,275
- 12,275 Adjusted EBIT $ 70,209
$ 64,472 $ 161,665 $ 155,575 Consumer
Segment Income (Loss) Before Income Taxes (a) $ 45,085 $ (140,575 )
$ 117,453 $ (70,487 ) Interest (Expense) Income, Net (b)
(143 ) (19 ) (339 ) (22 ) EBIT (c) 45,228
(140,556 ) 117,792 (70,465 ) Kirker impairment (e) -
188,298 - 188,298
Adjusted EBIT $ 45,228 $ 47,742 $ 117,792 $
117,833 Specialty Segment Income Before Income Taxes
(a) $ 34,439 $ 31,160 $ 67,606 $ 61,664 Interest Income, Net (b)
78 137 198 290
EBIT (c) $ 34,361 $ 31,023 $ 67,408 $
61,374 Corporate/Other (Expense) Before Income Taxes
(a) $ (38,039 ) $ (47,733 ) $ (77,192 ) $ (89,116 ) Interest
(Expense), Net (b) (20,079 ) (18,701 ) (39,769
) (35,954 ) EBIT (c) $ (17,960 ) $ (29,032 ) $ (37,423 ) $
(53,162 )
Consolidated Income (Loss) Before Income
Taxes (a) $ 109,181 $ (106,857 ) $ 264,465 $ 41,618 Interest
(Expense), Net (b) (22,657 ) (20,489 ) (44,977
) (39,429 ) EBIT (c) 131,838 (86,368 ) 309,442 81,047 Charge
to exit Flowcrete Middle East (d) - 12,275 - 12,275 Kirker
impairment (e) - 188,298 -
188,298 Adjusted EBIT $ 131,838 $
114,205 $ 309,442 $ 281,620 (a)
The presentation includes a reconciliation of Income (Loss) Before
Income Taxes, a measure defined by Generally Accepted Accounting
Principles in the United States (GAAP), to EBIT. (b)
Interest income (expense), net includes
the combination of interest income (expense) and investment income
(expense), net.
(c)
EBIT is defined as earnings (loss) before
interest and taxes. We evaluate the profit performance of our
segments based on income before income taxes, but also look to EBIT
as a performance evaluation measure because interest expense is
essentially related to acquisitions, as opposed to segment
operations. For that reason, we believe EBIT is also useful to
investors as a metric in their investment decisions. EBIT should
not be considered an alternative to, or more meaningful than,
income before income taxes as determined in accordance with GAAP,
since EBIT omits the impact of interest in determining operating
performance, which represent items necessary to our continued
operations, given our level of indebtedness. Nonetheless, EBIT is a
key measure expected by and useful to our fixed income investors,
rating agencies and the banking community all of whom believe, and
we concur, that this measure is critical to the capital markets'
analysis of our segments' core operating performance. We also
evaluate EBIT because it is clear that movements in EBIT impact our
ability to attract financing. Our underwriters and bankers
consistently require inclusion of this measure in offering
memoranda in conjunction with any debt underwriting or bank
financing. EBIT may not be indicative of our historical operating
results, nor is it meant to be predictive of potential future
results.
(d) Charges related to Flowcrete decision to exit the Middle East.
(e) Reflects the impact of goodwill and other intangible asset
impairment charge of $188.3 million related to our Kirker reporting
unit.
CONSOLIDATED BALANCE SHEETS IN THOUSANDS (Unaudited)
November 30, 2017 November 30, 2016 May 31,
2017 Assets Current Assets Cash and cash
equivalents $ 267,857 $ 205,907 $ 350,497 Trade accounts receivable
1,023,748 881,723 1,039,468 Allowance for doubtful accounts
(43,508)
(40,909)
(44,138)
Net trade accounts receivable 980,240 840,814 995,330 Inventories
864,019 762,167 788,197 Prepaid expenses and other current assets
282,940 232,217 263,412
Total current assets 2,395,056
2,041,105 2,397,436
Property, Plant
and Equipment, at Cost 1,547,126 1,353,282 1,484,579 Allowance
for depreciation (786,701 ) (714,353 )
(741,893 )
Property, plant and equipment, net 760,425
638,929 742,686
Other
Assets Goodwill 1,167,963 1,085,763 1,143,913 Other intangible
assets, net of amortization 579,929 521,198 573,092 Deferred income
taxes, non-current 20,621 59,619 19,793 Other 220,677
200,847 213,529
Total other
assets 1,989,190 1,867,427
1,950,327
Total Assets $ 5,144,671 $
4,547,461 $ 5,090,449
Liabilities and
Stockholders' Equity Current Liabilities Accounts
payable $ 447,071 $ 429,941 $ 534,718 Current portion of long-term
debt 253,688 3,880 253,645 Accrued compensation and benefits
138,375 126,097 181,084 Accrued losses 23,566 33,846 31,735 Other
accrued liabilities 212,293 292,849
234,212
Total current liabilities
1,074,993 886,613 1,235,394
Long-Term Liabilities Long-term debt, less current
maturities 1,883,272 1,634,967 1,836,437 Other long-term
liabilities 506,606 701,091 482,491 Deferred income taxes
70,279 41,456 97,427
Total
long-term liabilities 2,460,157 2,377,514
2,416,355
Total liabilities
3,535,150 3,264,127 3,651,749
Commitments and contingencies
Stockholders' Equity Preferred
stock; none issued Common stock (outstanding 133,666; 133,576;
133,563) 1,337 1,336 1,336 Paid-in capital 968,919 938,963 954,491
Treasury stock, at cost (230,347 ) (215,936 ) (218,222 )
Accumulated other comprehensive (loss) (434,598 ) (555,541 )
(473,986 ) Retained earnings 1,301,442
1,112,610 1,172,442
Total RPM International
Inc. stockholders' equity 1,606,753 1,281,432 1,436,061
Noncontrolling interest 2,768 1,902
2,639
Total equity 1,609,521 1,283,334
1,438,700
Total Liabilities and
Stockholders' Equity $ 5,144,671 $ 4,547,461 $
5,090,449
CONSOLIDATED
STATEMENTS OF CASH FLOWS IN THOUSANDS (Unaudited)
Six Months
Ended November 30, 2017 2016
Cash Flows From Operating Activities: Net income $ 212,761 $
43,138 Adjustments to reconcile net income to net cash provided by
(used for) operating activities: Depreciation 40,386 35,568
Amortization 23,245 22,111 Goodwill and other intangible asset
impairments 188,298 Deferred income taxes (32,276 ) (59,363 )
Stock-based compensation expense 14,429 17,013 Other non-cash
interest expense 2,843 4,964 Realized (gain) on sales of marketable
securities (4,897 ) (3,698 ) Other 9 (47 ) Changes in assets and
liabilities, net of effect from purchases and sales of businesses:
Decrease in receivables 34,136 110,871 (Increase) in inventory
(62,923 ) (81,586 ) Decrease (increase) in prepaid expenses and
other current and long-term assets 3,919 (20,876 ) (Decrease) in
accounts payable (95,302 ) (69,518 ) (Decrease) in accrued
compensation and benefits (45,464 ) (55,662 ) (Decrease) in accrued
losses (8,490 ) (899 ) Increase in other accrued liabilities 33,304
28,057 Other (494 ) 361 Cash Provided By
Operating Activities 115,186 158,732
Cash Flows From Investing Activities: Capital expenditures
(45,295 ) (48,049 ) Acquisition of businesses, net of cash acquired
(54,647 ) (65,201 ) Purchase of marketable securities (96,039 )
(25,142 ) Proceeds from sales of marketable securities 58,867
24,588 Other 469 956 Cash (Used For)
Investing Activities (136,645 ) (112,848 )
Cash
Flows From Financing Activities: Additions to long-term and
short-term debt 35,036 76,369 Reductions of long-term and
short-term debt (1,535 ) (73,588 ) Cash dividends (82,878 ) (76,604
) Shares of common stock repurchased and returned for taxes (12,125
) (19,663 ) Payments of acquisition-related contingent
consideration (3,359 ) (4,130 ) Other (1,464 ) (1,365
) Cash (Used For) Financing Activities (66,325 )
(98,981 )
Effect of Exchange Rate Changes on Cash and
Cash Equivalents 5,144 (6,148 )
Net Change in Cash and Cash Equivalents (82,640 ) (59,245 )
Cash and Cash Equivalents at Beginning of Period
350,497 265,152
Cash and Cash
Equivalents at End of Period $ 267,857 $ 205,907
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180104005369/en/
RPM International Inc.Barry M. Slifstein, 330-273-5090vice
president – investor relationsbslifstein@rpminc.com
RPM (NYSE:RPM)
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From Aug 2024 to Sep 2024
RPM (NYSE:RPM)
Historical Stock Chart
From Sep 2023 to Sep 2024