Rpm International Inc. · NYSE:RPM
Rpm International — FY2022 Earnings Presentation
29 slides from Rpm International's earnings presentation, Jul 25, 2022
Slide 1: Fiscal 2022 Fourth-Quarter and Year-End Results
Fiscal 2022 Fourth-Quarter and Year-End Results July 25, 2022
Slide 2: Forward-Looking Statements & Regulation G
Forward-Looking Statements & Regulation G This presentation 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 uncert
Slide 3: Momentum Accelerated in Fiscal 2022, Resulting in Record Fourth Quarter Results
Momentum Accelerated in Fiscal 2022, Resulting in Record Fourth Quarter Results Fiscal 2022 Consolidated Sales and Adjusted EBIT Growth 20% FINANCIAL HIGHLIGHTS 15% 13.0% 13.7% 11.7% 10.3% 10% 5% $1.98B 2.7% 0.8% 0% RECORD SALES -5% +13.7% -10% (1) Sales Growth Adj. EBIT Growth $256.9M -15% RETURNED
Slide 4: 4 Segments Achieved Record 4Q Sales; 3 Segments Generate Record 4Q Adjusted EBIT
4 Segments Achieved Record 4Q Sales; 3 Segments Generate Record 4Q Adjusted EBIT Fourth-Quarter Ended May 31, 2022 HIGHLIGHTS 40% 37.3% • All 4 segments generated record 30% fourth-quarter sales 21.8% • 3 of 4 segments produced record 20% 18.5% 16.6% 17.7% fourth-quarter adjusted EBIT 16.3% 13.7% dr
Slide 5: Fiscal 2022 Fourth-Quarter Financial Results | Consolidated
Fiscal 2022 Fourth-Quarter Financial Results | Consolidated Record sales and adjusted EBIT achieved despite supply disruption and inflation ($ in millions, except 4Q 4Q per share amounts) 2022 2021 % Change HIGHLIGHTS Sales $1,984 $1,744 +13.7% • Sales increased 13.7% to a Q4 record of $1.98 billion
Slide 6: Construction Products Group
Fiscal 2022 Fourth-Quarter Financial Results CPG generated record fourth-quarter top- and bottom-line results ($ in millions, except 4Q 4Q % Change CONSTRUCTION per share amounts) 2022 2021 PRODUCTS GROUP Sales $746 $629 +18.5% EBIT1 $122 $109 +11.8% Adjusted EBIT1 $122 $110 +10.9% Adjusted EBIT Mar
Slide 7: Performance Coatings Group
Fiscal 2022 Fourth-Quarter Financial Results PCG revenue and adjusted EBIT increased to fourth-quarter record levels PERFORMANCE ($ in millions, except per share amounts) 4Q 2022 4Q 2021 % Change COATINGS GROUP Sales $329 $283 +16.3% EBIT1 $41 $26 +58.5% Adjusted EBIT1 $43 $31 +37.3% Adjusted EBIT M
Slide 8: Specialty Products Group
Fiscal 2022 Fourth-Quarter Financial Results SPG generated record fourth-quarter sales and adjusted EBIT SPECIALTY ($ in millions, except per share amounts) 4Q 2022 4Q 2021 % Change PRODUCTS GROUP Sales $226 $203 +11.4% EBIT1 $51 $35 +45.9% Adjusted EBIT1 $44 $36 +21.8% Adjusted EBIT Margin1 19.6% 1
Slide 9: Consumer Group
Fiscal 2022 Fourth-Quarter Financial Results Record sales achieved, while raw material shortages and inflation impacted bottom line 4Q 4Q CONSUMER ($ in millions, except per share amounts) 2022 2021 % Change GROUP Sales $683 $629 +8.6% EBIT1 $79 $91 -13.1% Adjusted EBIT1 $80 $94 -14.2% Adjusted EBIT
Slide 10: Strategic Capital Allocation to Drive Growth and Reward Stockholders
Strategic Capital Allocation to Drive Growth and Reward Stockholders Fund Internal Make Strategic Growth Initiatives Acquisitions Capital Allocation Reward Investors Repurchase Stock with Cash Dividends Fiscal 2022 Fourth-Quarter Results | July 25, 2022 10
Slide 11: Positioned to Succeed in Current Macroeconomic Environment
Positioned to Succeed in Current Macroeconomic Environment Return of Government spending Recession-resistant the professional programs on infrastructure maintenance business remodeler and energy efficiency Reshoring of manufacturing Operational improvements to Focus upon pharmaceutical, Margin recov
Slide 12: Fiscal 2023 First-Quarter Guidance
Fiscal 2023 First-Quarter Guidance CATEGORY OUTLOOK (YOY) SALES | Consolidated Increase in the mid-teens Construction Products Group Increase in the teens Performance Coatings Group Increase in the teens Specialty Products Group Increase in the teens Consumer Group Increase in the teens ADJUSTED EBI
Slide 13: Appendix: Reconciliations of Non-GAAP to GAAP Measures
APPENDIX Reconciliations of Non-GAAP to GAAP Measures July 25, 2022
Slide 14: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. Fiscal 2022 Fourth-Quarter Results | July 25, 2022 14
Slide 15: Consolidated Statements of Income: Fiscal Year
Consolidated Statements of Income: Fiscal Year ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. Fiscal 2022 Fourth-Quarter Results | July 25, 2022 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following are the non-GAAP financial measures used in this presentation: *Interest (Income) Expense, Net includes the combination of interest (income) expense and investment (income) expense, net. **EBIT is defined as earnings (loss) before interest and taxes. Managem
Slide 17: Adjustments Detail
Adjustments Detail a) Charges recorded in Cost of Goods Sold related to inventory write-offs in connection with restructuring activities, partially offset by subsequent recoveries and revisions of accrual estimates. b) Reflects restructuring charges, including headcount reductions, closures of facil
Slide 18: Reconciliation of "Reported" to "Adjusted" EPS: Three Months
Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) ****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. NOTE – Refer to “Adjustments Detail
Slide 19: Reconciliation of "Reported" to "Adjusted" EPS: Fiscal Year
Reconciliation of "Reported" to "Adjusted" EPS: Fiscal Year (Unaudited) ****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. NOTE – Refer to “Adjustments Detail”
Slide 20: EBIT (Non-GAAP): RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except per share and percent data) Three Months Ended May 31, (Unaudited) 2022 2021 Net Income $ 199,306 $ 156,364 Provision for Income Taxes 22,371 47,889 Income Before Income Taxes 221,677 204,253 Interest Expense 23,801 21
Slide 21: EBIT (Non-GAAP): RPM Consolidated: Fiscal Year
EBIT** (Non-GAAP Measure): RPM Consolidated: Fiscal Year ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information o
Slide 22: EBIT (Non-GAAP): Construction Products Segment: Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further
Slide 23: EBIT (Non-GAAP): Construction Products Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Construction Products Segment: Fiscal Year ($ in thousands, except per share and percent data) Fiscal Year Ended May 31, (Unaudited) 2022 2021 Income Before Income Taxes $ 396,509 $ 291,773 Add: Interest Expense, Net* 6,673 8,030 EBIT** (non-GAAP measure) 403,182 299,803 I
Slide 24: EBIT (Non-GAAP): Performance Coatings Segment: Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except per share and percent data) Three Months Ended May 31, (Unaudited) 2022 2021 Income Before Income Taxes $ 41,219 $ 25,968 Add: Interest (Income), Net* (168) (76) EBIT** (non-GAAP measure) 41,051 25,892 Rest
Slide 25: EBIT (Non-GAAP): Performance Coatings Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Fiscal Year ($ in thousands, except per share and percent data) Fiscal Year Ended May 31, (Unaudited) 2022 2021 Income Before Income Taxes $ 139,068 $ 90,687 Add: Interest (Income), Net* (575) (128) EBIT** (non-GAAP measure) 138,493 90,559 Inv
Slide 26: EBIT (Non-GAAP): Specialty Products Segment: Three Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except per share and percent data) Three Months Ended May 31, (Unaudited) 2022 2021 Income Before Income Taxes $ 50,909 $ 34,827 Add: Interest Expense, Net* 4 65 EBIT** (non-GAAP measure) 50,913 34,892 Restructuring
Slide 27: EBIT (Non-GAAP): Specialty Products Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Specialty Products Segment: Fiscal Year ($ in thousands, except per share and percent data) Fiscal Year Ended May 31, (Unaudited) 2022 2021 Income Before Income Taxes $ 121,937 $ 108,242 Add: Interest Expense, Net* 86 284 EBIT** (non-GAAP measure) 122,023 108,526 Inventory
Slide 28: EBIT (Non-GAAP): Consumer Segment: Three Months
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information
Slide 29: EBIT (Non-GAAP): Consumer Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Consumer Segment: Fiscal Year ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information o