- First-quarter net sales increased 17.1% to a
record $1.93 billion
- First-quarter net income increased 25.6% to a
record $169.0 million, income before income taxes was a record
$225.1 million, diluted EPS was $1.31, and adjusted diluted EPS was
a record $1.47
- First-quarter EBIT increased 29.8% to a record
$255.5 million and adjusted EBIT increased 33.1% to a record $275.3
million
- Fiscal 2023 second-quarter outlook calls for
sales growth of 9% to 12% and adjusted EBIT growth of 30% to
40%
RPM International Inc. (NYSE: RPM), a world leader in specialty
coatings, sealants and building materials, today reported financial
results for its fiscal 2023 first quarter ended August 31,
2022.
“I am proud of RPM associates’ ability to generate record
first-quarter consolidated sales and adjusted EBIT. Our businesses
skillfully navigated supply chain tightness, cost inflation,
macroeconomic challenges and foreign exchange headwinds to expand
margins and deliver record first-quarter financial results. In
addition, they have continued to implement MAP operational
improvement initiatives, with a positive impact on our top and
bottom lines,” commented RPM Chairman and CEO Frank C.
Sullivan.
“All four of our segments achieved double-digit sales growth
driven by our procurement and technical teams’ ability to increase
material supply through insourcing and qualifying new suppliers.
Additionally, pricing was managed by implementing increases to
catch up with persistent cost inflation. Three out of our four
segments generated strong adjusted EBIT growth, led by our Consumer
Group, which benefited from MAP operational efficiencies that were
enhanced by our ability to improve material supply. While the
global macroeconomic outlook is uncertain, we believe that our MAP
2025 initiatives, diversified business model and strategic focus on
maintenance and restoration position us well for the future,” he
added.
First-Quarter 2023 Consolidated Results
Consolidated Three Months Ended
$ in 000s except per share data
August 31, August 31,
2022
2021
$ Change % Change Net Sales
$
1,932,320
$
1,650,420
$
281,900
17.1
%
Net Income Attributable to RPM Stockholders
169,013
134,582
34,431
25.6
%
Diluted Earnings Per Share (EPS)
1.31
1.04
0.27
26.0
%
Income Before Income Taxes (IBT)
225,121
181,471
43,650
24.1
%
Earnings Before Interest and Taxes (EBIT)
255,496
196,830
58,666
29.8
%
Adjusted EBIT(1)
275,265
206,806
68,459
33.1
%
Adjusted EPS(1)
1.47
1.08
0.39
36.1
%
(1) Excludes certain items that are not indicative of RPM's
ongoing operations. See tables below titled Supplemental Segment
Information and Reconciliation of Reported to Adjusted Amounts for
details.
Record sales were driven by improving material supply through
insourcing and qualifying new suppliers. Price increases across all
segments helped offset foreign exchange headwinds and cost
inflation, which remained elevated. Geographically, demand was
strong in the U.S. and in emerging markets. European demand was
weak during the quarter as the region experienced increasing
inflation and other macroeconomic headwinds. Sales included 19.5%
of organic growth, 1.0% growth from acquisitions and foreign
currency translation headwinds of 3.4%.
In addition to strong sales growth, record fiscal 2023
first-quarter adjusted EBIT benefited from $30 million in MAP 2025
savings as improved material supply allowed savings from
operational initiatives to be realized.
First-Quarter 2023 Segment Sales and Earnings
Construction Products Group Three
Months Ended $ in 000s
August 31, August 31,
2022
2021
$ Change % Change Net Sales
$
729,697
$
644,362
$
85,335
13.2
%
Income Before Income Taxes
109,202
114,357
(5,155
)
(4.5
%)
EBIT
109,969
116,227
(6,258
)
(5.4
%)
Adjusted EBIT(1)
111,150
117,179
(6,029
)
(5.1
%)
(1) Excludes certain items that are not indicative of RPM's
ongoing operations. See tables below titled Supplemental Segment
Information for details.
CPG’s record sales were driven by roofing systems, which
benefited from increased public sector spending, its turn-key
service model and focus on renovations. Admixtures and repair
products for concrete generated strong sales growth and grew share.
Pricing management in response to persistent cost inflation and
strength in Asia-Pacific markets also contributed to revenue
growth. Sales included 15.8% of organic growth, 1.9% growth from
acquisitions and foreign currency translation headwinds of
4.5%.
Adjusted EBIT was pressured by a slowdown in Europe where cost
pressures were severe, and volumes deteriorated as macroeconomic
conditions worsened during the quarter. In Canada, profitability
was reduced by inefficiencies, which resulted from a transportation
strike and concrete shortages that impeded the completion of
construction projects. Foreign currency and mix were headwinds to
profitability. CPG also incurred a negative financial impact from
the Corsicana plant as the facility ramps up production toward full
capacity.
Performance Coatings Group Three
Months Ended $ in 000s
August 31, August 31,
2022
2021
$ Change % Change Net Sales
$
340,434
$
285,595
$
54,839
19.2
%
Income Before Income Taxes
46,954
35,077
11,877
33.9
%
EBIT
46,773
34,995
11,778
33.7
%
Adjusted EBIT(1)
47,875
37,530
10,345
27.6
%
(1) Excludes certain items that are not indicative of RPM's
ongoing operations. See tables below titled Supplemental Segment
Information for details.
PCG’s record sales were driven by double-digit growth in
flooring systems, protective coatings and fiberglass reinforced
plastic grating, all of which are strategically well-positioned to
benefit from the trend of reshoring manufacturing to the U.S.
Additionally, energy market demand was strong. Emerging markets’
strength, pricing and improved sales management contributed to the
record revenue as well. Sales included 23.6% of organic growth, no
impact from acquisitions and foreign currency translation headwinds
of 4.4%.
Record first-quarter adjusted EBIT was driven by volume growth,
selling price increases and favorable mix resulting from digital
sales management tools, which were partially offset by foreign
exchange headwinds.
Specialty Products Group Three
Months Ended $ in 000s
August 31, August 31,
2022
2021
$ Change % Change Net Sales
$
202,697
$
182,055
$
20,642
11.3
%
Income Before Income Taxes
27,885
24,556
3,329
13.6
%
EBIT
27,883
24,591
3,292
13.4
%
Adjusted EBIT(1)
29,649
24,927
4,722
18.9
%
(1) Excludes certain items that are not indicative of RPM's
ongoing operations. See tables below titled Supplemental Segment
Information for details.
SPG’s record sales were driven by strength in food coatings and
additives, which benefited from a new management team that has
positioned the business to profit from increased institutional
demand as pandemic-related restrictions eased. Revenues continued
to grow in SPG’s disaster restoration business as it worked through
backlogs created by previous semiconductor chip shortages. Selling
prices increased across most product lines in response to continued
cost inflation. Sales included 12.8% of organic growth, 0.6% growth
from acquisitions and foreign currency translation headwinds of
2.1%.
Record adjusted EBIT was driven by improved sales and pricing
management, as well as increased fixed cost leverage from higher
production volume at the disaster restoration business.
Consumer Group Three Months
Ended $ in 000s
August 31, August 31,
2022
2021
$ Change % Change Net Sales
$
659,492
$
538,408
$
121,084
22.5
%
Income Before Income Taxes
116,689
45,915
70,774
154.1
%
EBIT
116,663
45,840
70,823
154.5
%
Adjusted EBIT(1)
117,070
46,894
70,176
149.6
%
(1) Excludes certain items that are not indicative of RPM's
ongoing operations. See tables below titled Supplemental Segment
Information for details.
Material supply, particularly alkyd resins, improved during the
quarter from insourcing and qualifying new suppliers, and resulted
in record sales. Sales also benefited from price increases to catch
up with persistent cost inflation. Sales included 24.1% of organic
growth, 0.4% growth from acquisitions and foreign currency
translation headwinds of 2.0%.
The increase in adjusted EBIT was driven by MAP operational
initiatives that were realized as a result of improved material
supply conditions and price increases in response to continued cost
inflation, which resulted in adjusted EBIT margins approaching
long-term averages. Additionally, the Consumer Group experienced
extraordinarily low profitability last year due to severe supply
chain disruptions resulting from a plant explosion at an alkyd
resin supplier, which contributed to the high year-over-year
adjusted EBIT growth in the 2023 fiscal first quarter.
Cash Flow and Financial Position
During the fiscal 2023 first quarter:
- Cash provided by operating activities was $23.6 million
compared to $76.1 million during the prior-year period. Despite
higher earnings, the decrease was driven by inventory increases
designed to build supply chain resiliency.
- Capital expenditures were $57.8 million compared to $51.9
million during the prior-year period driven by organic growth
opportunities and MAP 2025 efficiency programs.
- The company returned $76.4 million to shareholders through cash
dividends and share repurchases.
As of August 31, 2022:
- Total debt was $2.84 billion compared to $2.43 billion a year
ago.
- Total liquidity, including cash and committed revolving credit
facilities, was $1.15 billion, compared to $1.38 billion a year
ago. RPM’s liquidity remains high, enabling it to manage supply
chain challenges while continuing to invest in MAP operational
improvements, acquisitions and organic growth opportunities.
On August 1, 2022, the company amended its revolving credit
facility to increase the size of the facility to $1.35 billion from
$1.30 billion and extended the term of the facility to August 1,
2027.
Also on August 1, 2022, the company extended the maturity of its
term loan from February 21, 2023, to August 1, 2025, and prepaid
$50 million. The term loan’s remaining principal is $250
million.
Business Outlook
For the second quarter of fiscal 2023, the company expects:
- Consolidated sales growth of 9% to 12% compared to the
prior-year period.
- CPG to achieve sales growth in the high-single-digit percentage
range as commercial and infrastructure construction activity is
anticipated to remain positive and pricing management contributes
to growth, partially offset by macroeconomic weakness in
Europe.
- PCG sales to increase in the high-single-digit to
low-double-digit percentage range driven by strength in energy
markets, reshoring of manufacturing to the U.S. and government
infrastructure spending.
- SPG revenue to increase in the high-single-digit percentage
range as the segment benefits from continued strength in food
coatings and additives and has a more efficient supply chain
compared to the prior-year period when it suffered from
semiconductor chip supply shortages.
- The Consumer Group to lead revenue growth with sales up in the
teen percentage range as a result of improved material supply,
pricing management, and a favorable comparison to the 2022 fiscal
second quarter when sales were depressed by alkyd resin shortages
from an explosion at a supplier’s plant.
- Consolidated adjusted EBIT to increase by 30% to 40% compared
to the prior-year period.
Earnings Webcast and Conference Call Information
Management will host a conference call to discuss these results
beginning at 10:00 a.m. EDT today. The call can be accessed via
webcast at www.RPMinc.com/Investors/Presentations-Webcasts or by
dialing 1-800-289-0720 or 1-323-701-0160 for international callers.
The confirmation code is 1615107. 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 1:30 p.m. EDT on October 5, 2022,
until 1:30 p.m. EDT on October 12, 2022. The replay can be accessed
by dialing 1-888-203-1112 or 1-719-457-0820 for international
callers. The access code is 1615107. The call also will be
available for replay and as a written transcript via the RPM
website at www.RPMinc.com.
Investor Day Webcast Information
As previously announced, RPM will be hosting an investor day on
Friday, October 7, 2022, at 8:30 a.m. EDT. The investor day will
include management presentations focused on MAP 2025 details,
sustainability initiatives and the company’s Construction Products
Group. These presentations can be accessed via webcast at
www.RPMinc.com/Investors/Presentations-Webcasts/ or by dialing
800-289-0720, or 323-701-0160 for international callers. The
confirmation code is 2715265.
For those unable to listen to the live presentations, a replay
will be available from approximately 1:30 p.m. EDT on October 7,
2022, until 1:30 p.m. EDT on October 14, 2022. The replay can be
accessed by dialing 888-203-1112, or 719-457-0820 for international
callers. The access code is 2715265. The webcast will be available
both live and for replay via the RPM website at www.RPMinc.com.
About RPM
RPM International Inc. owns subsidiaries that are world leaders
in specialty coatings, sealants, building materials and related
services. The company operates across four reportable segments:
consumer, construction products, performance coatings and specialty
products. RPM has a diverse portfolio of market-leading brands,
including Rust-Oleum, DAP, Zinsser, Varathane, DayGlo, Legend
Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and
workplaces, to infrastructure and precious landmarks, RPM’s brands
are trusted by consumers and professionals alike to help build a
better world. The company employs approximately 16,800 individuals
worldwide. Visit www.RPMinc.com to learn more.
For more information, contact Matt Schlarb, Senior Director of
Investor Relations, at 330-273-5090 or mschlarb@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, adjusted EBIT and
adjusted earnings per share, which are all non-GAAP financial
measures. EBIT is defined as earnings (loss) before interest and
taxes, with adjusted EBIT and adjusted earnings per share provided
for the purpose of adjusting for one-off items impacting revenues
and/or expenses that are not considered by management to be
indicative of ongoing operations. 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 corporate functions, 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 and investment income
or expense 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 and
adjusted EBIT to income before income taxes, and adjusted earnings
per share to earnings per share. We have not provided a
reconciliation of our second-quarter fiscal 2023 adjusted EBIT
guidance because material terms that impact such measure are not in
our control and/or cannot be reasonably predicted, and therefore a
reconciliation of such measure is not available without
unreasonable effort.
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 viability of banks and other financial
institutions; (b) the prices, supply and availability of raw
materials, including assorted pigments, resins, solvents, and other
natural gas-and oil-based materials; packaging, including plastic
and metal 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) the timing of and the realization
of anticipated cost savings from restructuring initiatives and the
ability to identify additional cost savings opportunities; (j)
risks related to the adequacy of our contingent liability reserves;
(k) risks relating to the Covid pandemic; (l) risks related to
adverse weather conditions or the impacts of climate change and
natural disasters; (m) risks relating to the Russian invasion of
Ukraine and other wars;(n) risks related to data breaches and data
privacy violations; and (o) 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, 2022, 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 August
31, August 31,
2022
2021
Net Sales
$
1,932,320
$
1,650,420
Cost of Sales
1,187,849
1,037,069
Gross Profit
744,471
613,351
Selling, General & Administrative Expenses
485,205
418,850
Restructuring Expense
1,354
1,010
Interest Expense
26,711
21,109
Investment Expense (Income), Net
3,664
(5,750
)
Other Expense (Income), Net
2,416
(3,339
)
Income Before Income Taxes
225,121
181,471
Provision for Income Taxes
55,842
46,676
Net Income
169,279
134,795
Less: Net Income Attributable to Noncontrolling Interests
266
213
Net Income Attributable to RPM International Inc.
Stockholders
$
169,013
$
134,582
Earnings per share of common stock attributable to
RPM International Inc. Stockholders:
Basic
$
1.31
$
1.04
Diluted
$
1.31
$
1.04
Average shares of common stock outstanding - basic
127,617
128,083
Average shares of common stock outstanding - diluted
128,161
128,570
SUPPLEMENTAL SEGMENT INFORMATION IN THOUSANDS
(Unaudited)
Three Months Ended August 31,
August 31,
2022
2021
Net Sales: CPG Segment
$
729,697
$
644,362
PCG Segment
340,434
285,595
SPG Segment
202,697
182,055
Consumer Segment
659,492
538,408
Total
$
1,932,320
$
1,650,420
Income Before Income Taxes:
CPG Segment
Income Before Income Taxes (a)
$
109,202
$
114,357
Interest (Expense), Net (b)
(767
)
(1,870
)
EBIT (c)
109,969
116,227
MAP initiatives (d)
1,181
952
Adjusted EBIT
$
111,150
$
117,179
PCG Segment
Income Before Income Taxes (a)
$
46,954
$
35,077
Interest Income, Net (b)
181
82
EBIT (c)
46,773
34,995
MAP initiatives (d)
1,102
2,196
Acquisition-related costs (e)
-
339
Adjusted EBIT
$
47,875
$
37,530
SPG Segment
Income Before Income Taxes (a)
$
27,885
$
24,556
Interest Income (Expense), Net (b)
2
(35
)
EBIT (c)
27,883
24,591
MAP initiatives (d)
1,766
336
Adjusted EBIT
$
29,649
$
24,927
Consumer Segment
Income Before Income Taxes (a)
$
116,689
$
45,915
Interest Income, Net (b)
26
75
EBIT (c)
116,663
45,840
MAP initiatives (d)
407
290
Unusual executive costs (f)
-
764
Adjusted EBIT
$
117,070
$
46,894
Corporate/Other
(Loss) Before Income Taxes (a)
$
(75,609
)
$
(38,434
)
Interest (Expense), Net (b)
(29,817
)
(13,611
)
EBIT (c)
(45,792
)
(24,823
)
MAP initiatives (d)
15,313
3,880
Unusual executive costs (f)
-
1,219
Adjusted EBIT
$
(30,479
)
$
(19,724
)
TOTAL CONSOLIDATED
Income Before Income Taxes (a)
$
225,121
$
181,471
Interest (Expense)
(26,711
)
(21,109
)
Investment (Expense) Income, Net
(3,664
)
5,750
EBIT (c)
255,496
196,830
MAP initiatives (d)
19,769
7,654
Acquisition-related costs (e)
-
339
Unusual executive costs (f)
-
1,983
Adjusted EBIT
$
275,265
$
206,806
(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 and Adjusted 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, with
Adjusted EBIT provided for the purpose of adjusting for items
impacting earnings that are not considered by management to be
indicative of ongoing operations. We evaluate the profit
performance of our segments based on income before income taxes,
but also look to EBIT, or adjusted EBIT, as a performance
evaluation measure because interest expense is essentially related
to corporate functions, 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 and investment income or expense 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)
Reflects restructuring and other charges, which have been incurred
in relation to our Margin Acceleration Plan ("MAP to Growth") and
our Margin Achievement Plan ("MAP 2025"), together MAP initiatives,
as follows:"Inventory-related charges," & "Accelerated Expense
- Other," which have been recorded in
Cost of Goods
Sold;"Headcount reductions & closures of facilities and
related costs," which have been recorded in
Restructuring
Expense;"Accelerated Expense - Other," "Receivable
(recoveries)," "ERP consolidation plan," "Professional Fees,"
"Unusual credits triggered byexecutive departures," &
"Divestitures," which have been recorded in
Selling, General
& Administrative Expenses.
(e)
Acquisition costs reflect amounts included in gross profit for
inventory step-ups.
(f)
Reflects unusual compensation costs recorded unrelated to our MAP
to Growth initiative, including stock and deferred compensation
plan arrangements.
SUPPLEMENTAL INFORMATION
RECONCILIATION OF "REPORTED" TO "ADJUSTED" AMOUNTS
(Unaudited)
Three Months Ended August 31,
August 31,
2022
2021
Reconciliation of Reported Earnings
per Diluted Share to Adjusted Earnings per Diluted Share
(All amounts presented after-tax):
Reported Earnings per Diluted Share
$
1.31
$
1.04
MAP initiatives (d)
0.12
0.05
Unusual executive costs (f)
-
0.01
Investment returns (g)
0.04
(0.02
)
Adjusted Earnings per Diluted Share (h)
$
1.47
$
1.08
(d) Reflects restructuring and other charges, which have
been incurred in relation to our Margin Acceleration Plan ("MAP to
Growth") and our Margin Achievement Plan ("MAP 2025"), together MAP
initiatives, as follows:"Inventory-related charges," &
"Accelerated Expense - Other," which have been recorded in Cost of
Goods Sold;"Headcount reductions & closures of facilities and
related costs," which have been recorded in
Restructuring
Expense;"Accelerated Expense - Other," "Receivable
(recoveries)," "ERP consolidation plan," "Professional Fees,"
"Unusual credits triggered byexecutive departures," &
"Divestitures," all of which have been recorded in
Selling,
General & Administrative Expenses. (f) Reflects unusual
compensation costs recorded unrelated to our MAP to Growth
initiative, including stock and deferred compensation plan
arrangements. (g) Investment returns include realized net gains and
losses on sales of investments and unrealized net gains and losses
on equity securities, which are adjusted due to their inherent
volatility. Management does not consider these gains and losses,
which cannot be predicted with any level of certainty, to be
reflective of the Company's core business operations. (h) Adjusted
EPS is provided for the purpose of adjusting diluted earnings per
share for items impacting earnings that are not considered by
management to be indicative of ongoing operations.
CONSOLIDATED BALANCE SHEETS IN THOUSANDS (Unaudited)
August 31, 2022 August 31, 2021 May 31, 2022
Assets Current Assets Cash and cash equivalents
$
197,574
$
213,212
$
201,672
Trade accounts receivable
1,454,641
1,224,095
1,479,301
Allowance for doubtful accounts
(46,775
)
(52,181
)
(46,669
)
Net trade accounts receivable
1,407,866
1,171,914
1,432,632
Inventories
1,339,954
997,255
1,212,618
Prepaid expenses and other current assets
342,294
330,315
304,887
Total current assets
3,287,688
2,712,696
3,151,809
Property, Plant and Equipment, at Cost
2,135,573
1,949,817
2,132,915
Allowance for depreciation
(1,036,199
)
(998,993
)
(1,028,932
)
Property, plant and equipment, net
1,099,374
950,824
1,103,983
Other Assets
Goodwill
1,333,066
1,349,137
1,337,868
Other intangible assets, net of amortization
586,204
626,244
592,261
Operating lease right-of-use assets
296,101
298,878
307,797
Deferred income taxes
16,450
26,671
18,914
Other
184,105
201,754
195,074
Total other assets
2,415,926
2,502,684
2,451,914
Total Assets
$
6,802,988
$
6,166,204
$
6,707,706
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$
785,984
$
647,568
$
800,369
Current portion of long-term debt
303,387
1,649
603,454
Accrued compensation and benefits
165,796
156,031
262,445
Accrued losses
26,160
25,309
24,508
Other accrued liabilities
367,920
333,065
325,632
Total current liabilities
1,649,247
1,163,622
2,016,408
Long-Term Liabilities
Long-term debt, less current maturities
2,534,108
2,429,623
2,083,155
Operating lease liabilities
255,625
256,661
265,139
Other long-term liabilities
285,634
417,072
276,990
Deferred income taxes
80,772
108,506
82,186
Total long-term liabilities
3,156,139
3,211,862
2,707,470
Total liabilities
4,805,386
4,375,484
4,723,878
Stockholders' Equity
Preferred stock; none issued
-
-
-
Common stock (outstanding 120,099; 129,743; 129,199)
1,291
1,297
1,292
Paid-in capital
1,105,211
1,061,161
1,096,147
Treasury stock, at cost
(754,477
)
(671,314
)
(717,019
)
Accumulated other comprehensive (loss)
(612,905
)
(540,508
)
(537,337
)
Retained earnings
2,256,939
1,937,940
2,139,346
Total RPM International Inc. stockholders' equity
1,996,059
1,788,576
1,982,429
Noncontrolling interest
1,543
2,144
1,399
Total equity
1,997,602
1,790,720
1,983,828
Total Liabilities and Stockholders' Equity
$
6,802,988
$
6,166,204
$
6,707,706
CONSOLIDATED STATEMENTS OF CASH FLOWS IN
THOUSANDS (Unaudited)
Three Months Ended August 31,
August 31,
2022
2021
Cash Flows From Operating Activities: Net
income
$
169,279
$
134,795
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
38,416
37,944
Restructuring charges, net of payments
-
(2,004
)
Fair value adjustments to contingent earnout obligations
-
1,027
Deferred income taxes
(1,919
)
(3,452
)
Stock-based compensation expense
9,062
5,763
Net loss (gain) on marketable securities
6,606
(3,476
)
Other
111
(76
)
Changes in assets and liabilities, net of effect from purchases and
sales of businesses:
(Increase) decrease in receivables
(266
)
98,166
(Increase) in inventory
(148,188
)
(68,155
)
(Increase) in prepaid expenses and other current and long-term
assets
(36,021
)
(15,648
)
Increase (decrease) in accounts payable
15,113
(42,912
)
(Decrease) in accrued compensation and benefits
(92,970
)
(100,201
)
Increase (decrease) in accrued losses
1,873
(3,530
)
Increase in other accrued liabilities
62,459
37,866
Cash Provided By Operating Activities
23,555
76,107
Cash Flows From Investing Activities:
Capital expenditures
(57,818
)
(51,888
)
Acquisition of businesses, net of cash acquired
(36,373
)
(35,802
)
Purchase of marketable securities
(6,440
)
(5,843
)
Proceeds from sales of marketable securities
4,116
2,766
Other
80
250
Cash (Used For) Investing Activities
(96,435
)
(90,517
)
Cash Flows From Financing Activities:
Additions to long-term and short-term debt
250,051
60,547
Reductions of long-term and short-term debt
(75,264
)
(471
)
Cash dividends
(51,420
)
(48,901
)
Repurchases of common stock
(25,000
)
(12,500
)
Shares of common stock returned for taxes
(12,430
)
(5,802
)
Payments of acquisition-related contingent consideration
(3,705
)
(60
)
Other
(2,487
)
-
Cash Provided By (Used For)
Financing Activities
79,745
(7,187
)
Effect of Exchange Rate Changes on Cash and
Cash Equivalents
(10,963
)
(11,895
)
Net Change in Cash and Cash Equivalents
(4,098
)
(33,492
)
Cash and Cash Equivalents at Beginning of Period
201,672
246,704
Cash and Cash Equivalents at End of Period
$
197,574
$
213,212
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221005005233/en/
Matt Schlarb, Senior Director of Investor Relations 330-273-5090
or mschlarb@rpminc.com
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