Rpm International Inc. · NYSE:RPM
Rpm International — Q2 FY2019 Earnings Presentation
23 slides from Rpm International's earnings presentation, Jan 4, 2019
Slide 1: Second Quarter Results Fiscal Year 2019
Second Quarter Results Fiscal Year 2019 RPM INTERNATIONAL INC. 1
Slide 2: Consolidated Statements of Income (Fiscal Year)
Consolidated Statements of Income (As Reported) ($ in thousands, except per share and percent data) Fiscal Year Ended May 31, % 2018 % 2017 % Change Net Sales $ 5,321,643 $ 4,958,175 7.3 Cost of Sales 3,140,431 59.0 2,792,487 56.3 Gross Profit 2,181,212 41.0 2,165,688 43.7 SG&A 1,663,143 31.3 1,643,
Slide 3: Consolidated Statements of Income (Three Months)
Consolidated Statements of Income (As Reported) ($ in thousands, except per share and percent data) Unaudited Three Months Ended November 30, 2018 % 2017 % % Change Net Sales $ 1,362,531 $ 1,315,416 3.6 Cost of Sales 824,562 60.5 764,401 58.1 Gross Profit 537,969 39.5 551,015 41.9 SG&A 430,080 31.6
Slide 4: Consolidated Statements of Income (Six Months)
Consolidated Statements of Income (As Reported) ($ in thousands, except per share and percent data) Unaudited Six Months Ended November 30, 2018 % 2017 % % Change Net Sales $ 2,822,520 $ 2,660,810 6.1 Cost of Sales 1,690,509 59.9 1,537,787 57.8 Gross Profit 1,132,011 40.1 1,123,023 42.2 SG&A 889,822
Slide 5: Free Cash Flow Generation
Free Cash Flow Generation ($ in millions) Fiscal Year Ended May 31, 2018 2017 2016 2015 Net Income $ 339 $ 185 $ 357 $ 228 Depreciation & Amortization 128 117 111 99 Working Capital & Other Operating Activities (77) 84 6 3 Cash Flow From Operations 390 386 474 330 Less: Capital Expenditures (115) (1
Slide 6: Reconciliations of Non-GAAP Measures to GAAP Measures
Reconciliations of Non-GAAP Measures to GAAP Measures 1/4/2019 RPM INTERNATIONAL INC. 6
Slide 7: Free Cash Flow Generation (Non-GAAP Measure)
Free Cash Flow Generation (Non-GAAP Measure) ($ in thousands) Fiscal Year Ended May 31, 2018 2017 2016 2015 2014 Cash Flows from Operating Activities: Net income $ 339,257 $ 184,671 $ 357,458 $ 228,328 $ 305,984 Depreciation and amortization 128,499 116,773 111,039 99,176 90,069 Working capital and
Slide 8: Adjustments Detail
Adjustments Detail (a) Inventory-related charges reflect a true-up of prior inventory write-offs at our Consumer Segment and current period inventory write-offs and disposals at our Industrial Segment, all of which have been recorded in cost of goods sold during fiscal 2019 in connection with our re
Slide 9: EBIT (Non-GAAP Measure): RPM Consolidated, Three Months
EBIT* (Non-GAAP Measure): RPM Consolidated (As Reported) Unaudited ($ in thousands, except percent data) Three Months Ended November 30, 2018 2017 Income Before Income Taxes $ 66,593 $ 109,181 Add: Interest Expense, Net 30,160 22,657 EBIT* (non-GAAP measure) 96,753 131,838 Inventory-related charges
Slide 10: EBIT (Non-GAAP Measure): RPM Consolidated, Six Months
EBIT* (Non-GAAP Measure): RPM Consolidated (As Reported) Unaudited ($ in thousands, except percent data) Six Months Ended November 30, 2018 2017 Income Before Income Taxes $ 158,531 $ 264,465 Add: Interest Expense, Net 52,133 44,977 EBIT* (non-GAAP measure) 210,664 309,442 Inventory-related charges
Slide 11: Reconciliation of Reported to Adjusted Net Income
Reconciliation of "Reported" to "Adjusted" Net Income Three Months Ended November 30, 2018 2017 Net Income, As Reported $ 49,173 $ 95,858 Adjustments, pre-tax 27,106 Tax impact of adjustments and prior year tax adjustment (6,557) (18,014) Net Income, As Adjusted $ 69,722 $ 77,844 NOTE: Refer to slid
Slide 12: Reconciliation of Reported to Adjusted Net Income
Reconciliation of "Reported" to "Adjusted" Net Income Six Months Ended November 30, 2018 2017 Net Income, As Reported $ 119,359 $ 212,761 Adjustments, pre-tax 66,937 Tax impact of adjustments and prior year tax adjustment (13,188) (18,014) Net Income, As Adjusted $ 173,108 $ 194,747 NOTE: Refer to s
Slide 13: Reconciliation of Reported to Adjusted SGA
Reconciliation of “Reported” to “Adjusted” SGA Three Months Ended November 30, 2018 2017 SGA, As Reported $ 430,080 $ 419,599 2020 MAP to Growth related initiatives (a) (7,844) - Acquisition-related costs (b) (66) - Loss on South Africa Business EE (c) (540) - SGA, As Adjusted (d) $ 421,630 $ 419,59
Slide 14: Reconciliation of Reported to Adjusted SGA
Reconciliation of “Reported” to “Adjusted” SGA Six Months Ended November 30, 2018 2017 SGA, As Reported $ 889,822 $ 814,008 2020 MAP to Growth related initiatives (a) (20,831) - Acquisition-related costs (b) (66) - Loss on South Africa Business EE (c) (540) - SGA, As Adjusted (d) $ 868,385 $ 814,008
Slide 15: Reconciliation of Reported to Adjusted EPS
Reconciliation of "Reported" to "Adjusted" EPS Three Months Ended November 30, 2018 2017 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 0.37 $ 0.70 Inventory-related charges (a) 0.0
Slide 16: Reconciliation of Reported to Adjusted EPS
Reconciliation of "Reported" to "Adjusted" EPS Six Months Ended November 30, 2018 2017 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 0.89 $ 1.56 Inventory-related charges (a) 0.05
Slide 17: EBIT (Non-GAAP Measure): Industrial Segment
EBIT* (Non-GAAP Measure): Industrial Segment (As Reported) Unaudited ($ in thousands, except percent data) Three Months Ended November 30, 2018 2017 Income Before Income Taxes $ 54,393 $ 67,696 Add: Interest Expense, Net 2,417 2,513 EBIT* (non-GAAP measure) 56,810 70,209 Inventory-related charges (a
Slide 18: EBIT (Non-GAAP Measure): Industrial Segment
EBIT* (Non-GAAP Measure): Industrial Segment (As Reported) Unaudited ($ in thousands, except percent data) Six Months Ended November 30, 2018 2017 Income Before Income Taxes $ 123,450 $ 156,598 Add: Interest Expense, Net 4,810 5,067 EBIT* (non-GAAP measure) 128,260 161,665 Inventory-related charges
Slide 19: EBIT (Non-GAAP Measure): Consumer Segment
EBIT* (Non-GAAP Measure): Consumer Segment (As Reported) Unaudited ($ in thousands, except percent data) Three Months Ended November 30, 2018 2017 Income Before Income Taxes $ 41,239 $ 45,085 Add: Interest Expense, Net 107 143 EBIT* (non-GAAP measure) 41,346 45,228 Inventory-related charges (a) 976
Slide 20: EBIT (Non-GAAP Measure): Consumer Segment
EBIT* (Non-GAAP Measure): Consumer Segment (As Reported) Unaudited ($ in thousands, except percent data) Six Months Ended November 30, 2018 2017 Income Before Income Taxes $ 92,535 $ 117,453 Add: Interest Expense, Net 272 339 EBIT* (non-GAAP measure) 92,807 117,792 Inventory-related charges (a) 823
Slide 21: EBIT (Non-GAAP Measure): Specialty Segment
EBIT* (Non-GAAP Measure): Specialty Segment (As Reported) Unaudited ($ in thousands, except percent data) Three Months Ended November 30, 2018 2017 Income Before Income Taxes $ 29,979 $ 34,439 Add: Interest (Income), Net (94) (78) EBIT* (non-GAAP measure) 29,885 34,361 Restructuring expense (b) 1,78
Slide 22: EBIT (Non-GAAP Measure): Specialty Segment
EBIT* (Non-GAAP Measure): Specialty Segment (As Reported) Unaudited ($ in thousands, except percent data) Six Months Ended November 30, 2018 2017 Income Before Income Taxes $ 57,780 $ 67,606 Add: Interest (Income), Net (163) (198) EBIT* (non-GAAP measure) 57,617 67,408 Restructuring expense (b) 3,93
Slide 23: EBIT & EBITDA (Non-GAAP Measures)
EBIT* & EBITDA (Non-GAAP Measures) (In thousands) *EBIT is defined as earnings before interest and taxes, while EBITDA is 2014 2015 (2) 2016 2017 2018 defined as earnings before interest, taxes, depreciation and Net income $ 305,984 $ 228,328 $ 357,458 $ 184,671 $ 339,257 amortization. We evaluate t