Rpm International Inc. · NYSE:RPM
Rpm International — Q2 FY2022 Earnings Presentation
29 slides from Rpm International's earnings presentation, Jan 5, 2022
Slide 1: Fiscal 2022 Second-Quarter Results
Fiscal 2022 Second-Quarter Results Frank C. Sullivan Chairman and CEO January 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: Fiscal 2022 Second-Quarter Financial Results | Consolidated
Fiscal 2022 Second-Quarter Financial Results | Consolidated Strong sales growth; earnings challenged by supply disruption and inflation HIGHLIGHTS % Change ($ in millions, except 2Q 2Q 2Q • Sales increased 10.3% to a Q2 record of per share amounts) 2022 2021 2020 $1.64 billion, driven by robust dema
Slide 4: 3 of 4 Segments Overcame Supply Challenges to Grow Top Line in Q2-F22
3 of 4 Segments Overcame Supply Challenges to Grow Top Line in Q2-F22 Second-Quarter Ended November 30, 2021 HIGHLIGHTS 50% 41.3% (1) • CPG and PCG worked through supply Sales Growth Adj. EBIT Growth challenges to post strong sales and 30% 22.0% earnings growth 16.5% 16.9% 10.0% 10.3% • SPG and Cons
Slide 5: Poised to Benefit from Stimulus Investments in Infrastructure & Construction
Poised to Benefit from Stimulus Investments in Infrastructure & Construction Significant planned government spending in construction, infrastructure and Covid-19 to support meaningful growth and incremental upside for RPM given its leading presence in the construction and infrastructure end-markets
Slide 6: RPM is Building a Better World (ESG)
…RPM’s products are trusted by RPM is Building a Better World (ESG) consumers and professionals worldwide to beautify structures, protect them from From homes and to and precious harsh environments, prolong workplaces, infrastructure, landmarks… their lifecycles and enhance their sustainability. Sus
Slide 7: Construction Products Group
Fiscal 2022 Second-Quarter Financial Results CPG generated strong top- and bottom-line growth, particularly in North America 2Q 2Q 2Q % Change CONSTRUCTION ($ in millions, except per share amounts) 2022 2021 2020 F22 vs F21 F22 vs F20 PRODUCTS GROUP Sales $614 $504 $500 +22.0% +23.0% EBIT1 $132 $74
Slide 8: Performance Coatings Group
Fiscal 2022 Second-Quarter Financial Results PCG rebounded from pandemic as worksites reopened and industrial maintenance resumed PERFORMANCE ($ in millions, except per share amounts) 2Q 2022 2Q 2021 2Q 2020 % Change F22 vs F21 F22 vs F20 COATINGS GROUP Sales $303 $259 $293 +16.9% +3.4% EBIT1 $38 $2
Slide 9: Specialty Products Group
Fiscal 2022 Second-Quarter Financial Results SPG generated solid sales growth; earnings challenged by supply issues and inflation SPECIALTY ($ in millions, except per share amounts) 2Q 2022 2Q 2021 2Q 2020 % Change F22 vs F21 F22 vs F20 PRODUCTS GROUP Sales $194 $176 $158 +10.0% +22.4% EBIT1 $21 $28
Slide 10: Consumer Group
Fiscal 2022 Second-Quarter Financial Results Demand remained strong, but raw material shortages and inflation impacted performance CONSUMER ($ in millions, except per share amounts) 2Q 2022 2Q 2021 2Q 2020 % Change F22 vs F21 F22 vs F20 GROUP Sales $529 $548 $451 -3.3% +17.4% EBIT1 $33 $88 $35 -62.6
Slide 11: Fiscal 2022 Third-Quarter Guidance
Fiscal 2022 Third-Quarter Guidance CATEGORY OUTLOOK (YOY) SALES | Consolidated Increase double digits Construction Products Group Increase high-double digits Performance Coatings Group Increase high-double digits Specialty Products Group Increase low-double digits vs. difficult prior-year comparison
Slide 12: Strategic Priorities to Drive Sustained Growth
Strategic Priorities to Drive Sustained Growth • Maintain a safe and productive working environment for employees through the continually changing Covid landscape • Be agile in managing through supply challenges and leveraging resources across RPM to meet customer needs; once supply issues abate, we
Slide 13: Appendix: Reconciliations of Non-GAAP to GAAP Measures
APPENDIX Reconciliations of Non-GAAP to GAAP Measures January 5, 2022
Slide 14: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. Fiscal 2022 Second-Quarter Results | January 5, 2022 14
Slide 15: Consolidated Statements of Income: Six Months
Consolidated Statements of Income: Six Months ($ in thousands, except per share and percent data) (Unaudited) NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. Fiscal 2022 Second-Quarter Results | January 5, 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 at our Consumer, Construction Products and Performance Coatings segments, partially offset by subsequent recoveries and revisions of accrual estimates. (b) Reflec
Slide 18: 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 Earnings per Diluted Share (All amounts presented after-tax): November 30, 2021 November 30, 2020 Reported Earnings per Diluted Share $ 0.96 $
Slide 19: Reconciliation of Reported to Adjusted EPS: Six Months
Reconciliation of "Reported" to "Adjusted" EPS: Six Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Six Months Ended Earnings per Diluted Share (All amounts presented after-tax): November 30, 2021 November 30, 2020 Reported Earnings per Diluted Share $ 2.00 $ 2.3
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) (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 21: EBIT (Non-GAAP): RPM Consolidated: Six Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Six Months ($ in thousands, except per share and percent data) Six Months Ended (Unaudited) November 30, 2021 November 30, 2020 Net Income $ 259,911 $ 308,670 Provision for Income Taxes 84,714 99,655 Income Before Income Taxes 344,625 408,325 Interest Exp
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) Three Months Ended (Unaudited) November 30, 2021 November 30, 2020 Income Before Income Taxes $ 130,368 $ 71,832 Add: Interest Expense, Net* 1,649 2,141 EBIT** (non-GAAP measure
Slide 23: EBIT (Non-GAAP): Construction Products Segment: Six Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Six Months ($ in thousands, except per share and percent data) Six Months Ended (Unaudited) November 30, 2021 November 30, 2020 Income Before Income Taxes $ 244,725 $ 170,182 Add: Interest Expense, Net* 3,519 4,251 EBIT** (non-GAAP measure) 2
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 (Unaudited) November 30, 2021 November 30, 2020 Income Before Income Taxes $ 37,854 $ 24,047 Add: Interest (Income), Net* (247) (9) EBIT** (non-GAAP measure) 3
Slide 25: EBIT (Non-GAAP): Performance Coatings Segment: Six Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Six Months ($ in thousands, except per share and percent data) Six Months Ended (Unaudited) November 30, 2021 November 30, 2020 Income Before Income Taxes $ 72,932 $ 52,561 Add: Interest (Income) Expense, Net* (331) 22 EBIT** (non-GAAP measure
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) (Unaudited) Three Months Ended November 30, 2021 November 30, 2020 Income Before Income Taxes $ 20,591 $ 28,406 Add: Interest Expense, Net* 29 73 EBIT** (non-GAAP measure) 20,620 2
Slide 27: EBIT (Non-GAAP): Specialty Products Segment: Six Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Six Months ($ in thousands, except per share and percent data) (Unaudited) Six Months Ended November 30, 2021 November 30, 2020 Income Before Income Taxes $ 45,147 $ 48,855 Add: Interest Expense, Net* 64 155 EBIT** (non-GAAP measure) 45,211 49,0
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) Three Months Ended November 30, 2021 November 30, 2020 Income Before Income Taxes $ 33,104 $ 88,368 Add: Interest (Income) Expense, Net* (73) 64 EBIT** (non-GAAP measure) 33,031
Slide 29: EBIT (Non-GAAP): Consumer Segment: Six Months
EBIT** (Non-GAAP Measure): Consumer Segment: Six Months ($ in thousands, except per share and percent data) (Unaudited) Six Months Ended November 30, 2021 November 30, 2020 Income Before Income Taxes $ 79,019 $ 221,089 Add: Interest (Income) Expense, Net* (149) 127 EBIT** (non-GAAP measure) 78,870 2