Rpm International Inc. · NYSE:RPM
Rpm International — Q1 FY2022 Earnings Presentation
22 slides from Rpm International's earnings presentation, Oct 6, 2021
Slide 1: Fiscal 2022 First-Quarter Results
Fiscal 2022 First-Quarter Results Frank C. Sullivan Chairman and CEO October 6, 2021
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: 3 of 4 Segments Overcome Supply Challenges to Grow Top and Bottom Lines in Q1-F22
3 of 4 Segments Overcome Supply Challenges to Grow Top and Bottom Lines in Q1-F22 First-Quarter Ended August 31, 2021 HIGHLIGHTS 30% 17.7% 21.6% • In spite of raw material shortages, 20% 14.5% 15.2% 15.2%14.2% 9.9% supply chain disruptions and inflation, 10% 3.5% 2.7% 3 of 4 operating segments gener
Slide 4: Strategic Investments to Drive Growth and Efficiency
Strategic Investments to Drive Growth and Efficiency Manufacturing Center of Excellence Good Position in Technology End Markets New Platform for Building Maintenance Emblematic of New RPM Culture Date Acquired 6/7/21 Date Acquired 8/2/21 Date Purchased 9/7/21 Acquired By Carboline (PCG) Acquired By
Slide 5: Growth Opportunities & Positive Trends
Growth Opportunities & Positive Trends MARKET OPPORTUNITIES INDUSTRY TRENDS Abrasives & Infrastructure Nesting Schools Reopening Wall Paint Building Wall Single-Source Energy Efficiency Envelope Systems Construction Fiscal 2022 First-Quarter Results | October 6, 2021 5
Slide 6: Fiscal 2022 First-Quarter Financial Results | Consolidated
Fiscal 2022 First-Quarter Financial Results | Consolidated Earnings challenged by supply disruption and inflation 1Q 1Q 1Q % Change ($ in millions, except HIGHLIGHTS per share amounts) 2022 2021 2020 F22 vs F21 F22 vs F20 • Sales increased 2.7% to a first-quarter record $1.65 billion Sales $1,650 $1
Slide 7: Construction Products Group
Fiscal 2022 First-Quarter Financial Results CPG generated strong growth across nearly all businesses 1Q 1Q 1Q % Change CONSTRUCTION ($ in millions, except per share amounts) 2022 2021 2020 F22 vs F21 F22 vs F20 PRODUCTS GROUP Sales $644 $548 $536 +17.7% +20.2% EBIT1 $116 $100 $85 +15.7% +37.2% Adjus
Slide 8: Performance Coatings Group
Fiscal 2022 First-Quarter Financial Results PCG rebounding from pandemic as worksites reopen and energy markets recover PERFORMANCE ($ in millions, except per share amounts) 1Q 2022 1Q 2021 1Q 2020 % Change F22 vs F21 F22 vs F20 COATINGS GROUP Sales $286 $260 $297 +9.9% -3.9% EBIT1 $35 $29 $28 +22.6
Slide 9: Specialty Products Group
Fiscal 2022 First-Quarter Financial Results New leadership and emphasis on growth drives top-line SPECIALTY ($ in millions, except per share amounts) 1Q 2022 1Q 2021 1Q 2020 % Change F22 vs F21 F22 vs F20 PRODUCTS GROUP Sales $182 $158 $160 +15.2% +13.7% EBIT1 $25 $21 $23 +19.8% +5.5% Adjusted EBIT1
Slide 10: Consumer Group
Fiscal 2022 First-Quarter Financial Results Demand is strong, but material shortages limit sales growth; inflation challenges bottom line CONSUMER ($ in millions, except per share amounts) 1Q 2022 1Q 2021 1Q 2020 % Change F22 vs F21 F22 vs F20 GROUP Sales $538 $641 $479 -16.0% +12.3% EBIT1 $46 $133
Slide 11: Fiscal 2022 Second-Quarter Guidance
Fiscal 2022 Second-Quarter Guidance CATEGORY OUTLOOK (YOY) SALES | Consolidated Increase mid-single digits Construction Products Group Increase double digits Performance Coatings Group Increase double digits Specialty Products Group Increase double digits Decrease double digits vs. difficult prior-y
Slide 12: Go-Forward Strategy to Drive Sustained Growth
Go-Forward Strategy to Drive Sustained Growth Go-Forward Strategy • Maintain positive MAP to Growth momentum and complete remaining projects • Leverage resources across RPM to manage supply chain challenges and meet customer needs • Identify new operational improvement program opportunities through
Slide 13: Appendix: Reconciliations of Non-GAAP to GAAP Measures
APPENDIX Reconciliations of Non-GAAP to GAAP Measures October 6, 2021
Slide 14: Consolidated Statements of Income
Consolidated Statements of Income ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2021 % 2020 % % Change Net Sales $ 1,650,420 $ 1,606,670 2.7 Cost of Sales 1,037,069 62.8 953,015 59.3 Gross Profit 613,351 37.2 653,655 40.7 SG&A 418,850 25.4 395,953 24.6
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 that 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) Reflects res
Slide 17: Reconciliation of "Reported" to "Adjusted" EPS
Reconciliation of "Reported" to "Adjusted" EPS (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Three Months Ended Earnings per Diluted Share (All amounts presented after-tax): August 31, 2021 August 31, 2020 Reported Earnings per Diluted Share $ 1.04 $ 1.39 Restructurin
Slide 18: EBIT (Non-GAAP Measure): RPM Consolidated
EBIT** (Non-GAAP Measure): RPM Consolidated ($ in thousands, except per share and percent data) Three Months Ended August 31, (Unaudited) 2021 2020 Net Income $ 134,795 $ 180,785 Provision for Income Taxes 46,676 60,584 Income Before Income Taxes 181,471 241,369 Interest Expense 21,109 21,745 Invest
Slide 19: EBIT (Non-GAAP Measure): Construction Products Segment
EBIT** (Non-GAAP Measure): Construction Products Segment ($ in thousands, except per share and percent data) Three Months Ended August 31, (Unaudited) 2021 2020 Income Before Income Taxes $ 114,357 $ 98,349 Add: Interest Expense, Net* 1,870 2,110 EBIT** (non-GAAP measure) 116,227 100,459 Inventory-r
Slide 20: EBIT (Non-GAAP Measure): Performance Coatings Segment
EBIT** (Non-GAAP Measure): Performance Coatings Segment ($ in thousands, except per share and percent data) Three Months Ended August 31, (Unaudited) 2021 2020 Income Before Income Taxes $ 35,077 $ 28,514 Add: Interest (Income) Expense, Net* (82) 31 EBIT** (non-GAAP measure) 34,995 28,545 Inventory-
Slide 21: EBIT (Non-GAAP Measure): Specialty Products Segment
EBIT** (Non-GAAP Measure): Specialty Products Segment ($ in thousands, except per share and percent data) Three Months Ended August 31, (Unaudited) 2021 2020 Income Before Income Taxes $ 24,556 $ 20,449 Add: Interest Expense, Net* 35 82 EBIT** (non-GAAP measure) 24,591 20,531 Restructuring expense (
Slide 22: EBIT (Non-GAAP Measure): Consumer Segment
EBIT** (Non-GAAP Measure): Consumer Segment ($ in thousands, except per share and percent data) Three Months Ended August 31, (Unaudited) 2021 2020 Income Before Income Taxes $ 45,915 $ 132,722 Add: Interest (Income) Expense, Net* (75) 62 EBIT** (non-GAAP measure) 45,840 132,784 Inventory-related ch