Rpm International Inc. · NYSE:RPM
Rpm International — Q1 2023 Earnings Presentation
22 slides from Rpm International's earnings presentation, Oct 5, 2022
Slide 1: Fiscal 2023 First-Quarter Results
Fiscal 2023 First-Quarter Results October 5, 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: Record Q1-23 Results as Margins Recover with Sales Growth
Record Q1-23 Results as Margins Recover with Sales Growth Consolidated Sales and Adjusted EBIT Growth 35% 33.1% FINANCIAL HIGHLIGHTS 25% 17.1% 13.0% 13.7% $1.93B 15% 10.3% 11.7% 5% 0.8% RECORD Q1 SALES +17.1% -5% Sales Growth Adj. EBIT Growth(1) $30M -15% MAP 2025 Savings $255.5M -25% Q2-22 -21.0% Q
Slide 4: All Segments Achieved Record Q1 Sales; Record Consolidated Q1 Adjusted EBIT
All Segments Achieved Record Q1 Sales; Record Consolidated Q1 Adjusted EBIT CPG PCG SPG Consumer Consolidated Record Sales Record Adjusted EBIT¹ HIGHLIGHTS • All 4 segments generated record first-quarter sales • Sales growth driven by improved material supply from insourcing and qualifying new suppl
Slide 5: Sales Growth in USD by Region | Q1-23
Sales Growth in USD by Region | Q1-23 EUROPE NORTH AMERICA 13% of total sales 80% of total sales -8.5% +22.8% ASIA/PACIFIC 2% of total sales +16.8% AFRICA/MIDDLE EAST/ CONSOLIDATED OTHER FOREIGN TOTAL 1% of total sales LATIN AMERICA +10.1% +17.1% 4% of total sales +16.4% Fiscal 2023 First-Quarter Re
Slide 6: Fiscal 2023 First-Quarter Financial Results | Consolidated
Fiscal 2023 First-Quarter Financial Results | Consolidated Record sales and adjusted EBIT achieved ($ in millions, except Q1 Q1 HIGHLIGHTS 2023 2022 % Change per share amounts) • Sales increased 17.1% to a record $1.93 billion and included FX headwinds Sales $1,932 $1,650 +17.1% of 3.4% • Sales driv
Slide 7: Construction Products Group Q1 Results
Fiscal 2023 First-Quarter Financial Results CPG generated record sales, but faced challenging markets in Europe and Canada ($ in millions, except Q1 Q1 % Change CONSTRUCTION per share amounts) 2023 2022 PRODUCTS GROUP Sales $730 $644 +13.2% EBIT1 $110 $116 -5.4% Adjusted EBIT1 $111 $117 -5.1% Adjust
Slide 8: Performance Coatings Group Q1 Results
Fiscal 2023 First-Quarter Financial Results PCG revenue and adjusted EBIT increased to record levels PERFORMANCE ($ in millions, except per share amounts) Q1 2023 Q1 2022 % Change COATINGS GROUP Sales $340 $286 +19.2% EBIT1 $47 $35 +33.7% Adjusted EBIT1 $48 $38 +27.6% Adjusted EBIT Margin1 14.1% 13.
Slide 9: Specialty Products Group Q1 Results
Fiscal 2023 First-Quarter Financial Results SPG generated record first-quarter sales and adjusted EBIT SPECIALTY ($ in millions, except per share amounts) Q1 2023 Q1 2022 % Change PRODUCTS GROUP Sales $203 $182 +11.3% EBIT1 $28 $25 +13.4% Adjusted EBIT1 $30 $25 +18.9% Adjusted EBIT Margin1 14.6% 13.
Slide 10: Consumer Group Q1 Results
Fiscal 2023 First-Quarter Financial Results Record Q1 sales and strong adjusted EBIT growth driven by improved material supply and pricing Q1 Q1 CONSUMER ($ in millions, except per share amounts) 2023 2022 % Change GROUP Sales $659 $538 +22.5% EBIT1 $117 $46 +154.5% Adjusted EBIT1 $117 $47 +149.6% A
Slide 11: Capital Allocation and Structure Update
Capital Allocation and Structure Update Q1-23 HIGHLIGHTS RETURN OF CAPITAL • Paid $51.4 million in dividends $1.5 billion returned • Repurchased $25.0 million of shares to shareholders since the • Extended term of revolving credit facility to August 2027 and increased its size to $1.35 billion from
Slide 12: Fiscal 2023 Second-Quarter Guidance
Fiscal 2023 Second-Quarter Guidance CATEGORY OUTLOOK (YOY) SALES | Consolidated Increase 9% to 12% Construction Products Group Increase high-single-digits Performance Coatings Group Increase high-single-digits to low-double-digits Specialty Products Group Increase high-single-digits Consumer Group I
Slide 13: Appendix: Reconciliation of Non-GAAP to GAAP Measures
Appendix Reconciliation of Non-GAAP to GAAP Measures October 5, 2022
Slide 14: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2022 % 2021 % % Change Net Sales $ 1,932,320 $ 1,650,420 17.1 Cost of Sales 1,187,849 61.5 1,037,069 62.8 Gross Profit 744,471 38.5 613,351 37.2 SG&A 485,205
Slide 15: 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 16: Adjustments Detail
Adjustments Detail a) Charges recorded in Cost of Goods Sold related to inventory write-offs in connection with restructuring activities at our Consumer, Construction Products and Specialty Products segments, partially offset by subsequent recoveries and revisions of accrual estimates. b) Reflects r
Slide 17: Reconciliation of Reported to Adjusted EPS: Three Months
Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Three Months Ended August 31, Earnings per Diluted Share (All amounts presented after-tax): 2022 2021 Reported Earnings per Diluted Share $ 1.31 $ 1.04 Restructu
Slide 18: 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 August 31, (Unaudited) 2022 2021 Net Income $ 169,279 $ 134,795 Provision for Income Taxes 55,842 46,676 Income Before Income Taxes 225,121 181,471 Interest Expense 26,711
Slide 19: EBIT (Non-GAAP): Construction Products Segment
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2022 2021 Income Before Income Taxes $ 109,202 $ 114,357 Add: Interest Expense, Net* 767 1,870 EBIT** (non-GAAP measure) 109,969 116,22
Slide 20: EBIT (Non-GAAP): Performance Coatings Segment
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2022 2021 Income Before Income Taxes $ 46,954 $ 35,077 Add: Interest (Income), Net* (181) (82) EBIT** (non-GAAP measure) 46,773 34,995 R
Slide 21: EBIT (Non-GAAP): Specialty Products Segment
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2022 2021 Income Before Income Taxes $ 27,885 $ 24,556 Add: Interest (Income) Expense, Net* (2) 35 EBIT** (non-GAAP measure) 27,883 24,591
Slide 22: EBIT (Non-GAAP): Consumer Segment
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2022 2021 Income Before Income Taxes $ 116,689 $ 45,915 Add: Interest (Income), Net* (26) (75) EBIT** (non-GAAP measure) 116,663 45,840 Inventory-re