Rpm International Inc. · NYSE:RPM
Rpm International — Q4 2024 Earnings Presentation
31 slides from Rpm International's earnings presentation, Jul 25, 2024
Slide 1: Fiscal 2024 Fourth-Quarter and Year-End Results
Fiscal 2024 Fourth-Quarter and Year-End Results July 25, 2024
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 Consolidated Q4-24 Adjusted EBIT and FY24 Cash Flow
Record Consolidated Q4-24 Adjusted EBIT and FY24 Cash Flow Q4 FINANCIAL HIGHLIGHTS Consolidated Sales and Adjusted EBIT Growth 40% Sales Growth Adj. EBIT Growth(1) 36.4% 35% 33.1% 31.3% $285.6M 30% RECORD Q4 25% ADJUSTED EBIT ¹ +6.6% FROM PY 20% 17.1% 15% 13.0% 13.7% 12.3% $1.12B 10 Consecutive RECO
Slide 4: CPG Strength and MAP 2025 Drive Record Adjusted EBIT
CPG Strength and MAP 2025 Drive Record Adjusted EBIT HIGHLIGHTS Record Q4-24 Roofing Strength Adjusted EBIT¹ • CPG strength driven by turnkey roofing offerings, wall systems and products serving infrastructure projects CPG • Consumer market share gains partially offset DIY softness PCG • PCG decline
Slide 5: Sales Growth in USD by Region | Q4-24
Sales Growth in USD by Region | Q4-24 KEY POINTS • Africa / Middle East continued generating strong sales growth, with North America also increasing sales EUROPE 13% of total sales • Europe sales declined due to F/X NORTH AMERICA and divestitures, but profitability 80% of total sales -4.0% significa
Slide 6: Fiscal 2024 Fourth-Quarter Financial Results | Consolidated
Fiscal 2024 Fourth-Quarter Financial Results | Consolidated Record Q4 adjusted EBIT ($ in millions, except Q4 Q4 KEY POINTS 2024 2023 % Change per share amounts) • Q4 sales declined slightly as slightly positive pricing and flat volumes were offset by F/X Sales $2,008.2 $2,016.2 -0.4% • Sales includ
Slide 7: Construction Products Group
Fiscal 2024 Fourth-Quarter Financial Results Broad-based strength drove record Q4 sales and adjusted EBIT Q4 Q4 ($ in millions, except margins) % Change Sales Components CONSTRUCTION 2024 2023 PRODUCTS GROUP Sales $762.2 $714.8 +6.6% • Organic +6.6% EBIT1 $132.0 $113.8 +16.0% • Acquisitions +0.5% Ad
Slide 8: Performance Coatings Group
Fiscal 2024 Fourth-Quarter Financial Results Challenging comparisons and project completion timing weighed on results PERFORMANCE ($ in millions, except margins) Q4 2024 Q4 2023 % Change Sales Components COATINGS GROUP Sales $365.6 $391.6 -6.7% • Organic -4.0% EBIT1 $45.7 $52.8 -13.5% • Divestitures
Slide 9: Specialty Products Group
Fiscal 2024 Fourth-Quarter Financial Results End market demand was weak, particularly in disaster restoration business SPECIALTY ($ in millions, except margins) Q4 2024 Q4 2023 % Change Sales Components PRODUCTS GROUP Sales $178.0 $193.4 -8.0% • Organic -8.1% EBIT1 $7.5 $8.4 -10.8% • Acquisitions /
Slide 10: Consumer Group
Fiscal 2024 Fourth-Quarter Financial Results MAP 2025 and market share gains resulted in record adjusted EBIT Q4 Q4 CONSUMER ($ in millions, except margins) 2024 2023 % Change Sales Components GROUP Sales $702.5 $716.4 -1.9% • Organic -1.2% EBIT1 $113.2 $102.9 +10.0% • Acquisitions / N/A Divestiture
Slide 11: Record FY24 Cash Flow from Operating Activities
Record FY24 Cash Flow from Operating Activities Cash Flow from Operating Activities Q4-24 Update $1,200 • Operating improvement initiatives simultaneously reduced working capital and improved margins, leading to record cash flow $900 • FY24 cash flow from operating activities a record at $1.12 In mi
Slide 12: Growing Acquired Businesses Through Innovation
Growing Acquired Businesses Through Innovation • Gator’s new Reptilion abrasives product line • Proprietary design that channels away dust and keeps grains sharp • Clog-resistant coating fights buildup • CeraMax® ceramic grain blend designed for fast cutting and professional performance • Lasts up t
Slide 13: Outlook Q1-25
Outlook Q1-25 Q1-25 Q1-25 OUTLOOK (YOY) PRIOR-YEAR RECORD SALES | Consolidated Approximately Flat Construction Products Group + LSD % Performance Coatings Group Approximately Flat Specialty Products Group - LSD % Consumer Group - LSD % ADJUSTED EBIT | Consolidated + MSD % Expected Trends in Q1 (+) M
Slide 14: Outlook FY-25
Outlook FY-25 PRIOR-YEAR PRIOR-YEAR FY25 FY25 OUTLOOK RESULTS RECORD SALES | Consolidated + LSD % +1.1% ADJUSTED EBIT | Consolidated + MSD % to + LDD % +11.9% Expected Trends in FY25 (+) MAP 2025 including structural SG&A actions and plant (-) Limited economic visibility, including election uncertai
Slide 15: Appendix: Reconciliation of Non-GAAP to GAAP Measures
Appendix Reconciliation of Non-GAAP to GAAP Measures
Slide 16: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended May 31, 2024 % 2023 % % Change Net Sales $ 2,008,163 $ 2,016,210 (0.4) Cost of Sales 1,177,583 58.6 1,241,062 61.6 Gross Profit 830,580 41.4 775,148 38.4 SG&A 554,504 27
Slide 17: Consolidated Statements of Income: Fiscal Year
Consolidated Statements of Income: Fiscal Year ($ in thousands, except per share and percent data) (Unaudited) Fiscal Year Ended May 31, 2024 % 2023 % % Change Net Sales $ 7,335,277 $ 7,256,414 1.1 Cost of Sales 4,320,688 58.9 4,508,370 62.1 Gross Profit 3,014,589 41.1 2,748,044 37.9 SG&A 2,113,585
Slide 18: 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 19: Adjustments Detail
Adjustments Detail a. Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $15.9 million and $8.7 million for the quarters ended May 31, 2024 and
Slide 20: 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 May 31, Earnings per Diluted Share (All amounts presented after-tax): 2024 2023 Reported Earnings per Diluted Share $ 1.40 $ 1.18 Restructurin
Slide 21: Reconciliation of Reported to Adjusted EPS: Fiscal Year
Reconciliation of "Reported" to "Adjusted" EPS: Fiscal Year (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Fiscal Year Ended May 31, Earnings per Diluted Share (All amounts presented after-tax): 2024 2023 Reported Earnings per Diluted Share $ 4.56 $ 3.72 Restructuring
Slide 22: EBIT: RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended May 31, 2024 2023 Net Income $ 180,836 $ 151,671 Provision for Income Taxes 58,442 54,968 Income Before Income Taxes 239,278 206,639 Interest Expense 27,276 33,630 Investmen
Slide 23: EBIT: RPM Consolidated: Fiscal Year
EBIT** (Non-GAAP Measure): RPM Consolidated: Fiscal Year ($ in thousands, except percent data) (Unaudited) Fiscal Year Ended May 31, 2024 2023 Net Income $ 589,442 $ 479,731 Provision for Income Taxes 198,395 169,651 Income Before Income Taxes 787,837 649,382 Interest Expense 117,969 119,015 Investm
Slide 24: EBIT: Construction Products Segment: Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended May 31, 2024 2023 Income Before Income Taxes $ 131,429 $ 113,291 Add: Interest Expense, Net* 551 491 EBIT** (non-GAAP measure) 131,980 113,782 Restructuring and
Slide 25: EBIT: Construction Products Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Construction Products Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) Fiscal Year Ended May 31, 2024 2023 Income Before Income Taxes $ 385,339 $ 300,971 Add: Interest Expense, Net* 5,170 8,580 EBIT** (non-GAAP measure) 390,509 309,551 Restructuring a
Slide 26: EBIT: Performance Coatings Segment: Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended May 31, 2024 2023 Income Before Income Taxes $ 46,589 $ 53,417 Add: Interest (Income), Net* (889) (573) EBIT** (non-GAAP measure) 45,700 52,844 Restructuring and
Slide 27: EBIT: Performance Coatings Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) Fiscal Year Ended May 31, 2024 2023 Income Before Income Taxes $ 199,951 $ 142,469 Add: Interest (Income), Net* (4,642) (1,630) EBIT** (non-GAAP measure) 195,309 140,839 Restructuri
Slide 28: EBIT: Specialty Products Segment: Three Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended May 31, 2024 2023 Income Before Income Taxes $ 7,439 $ 8,481 Add: Interest Expense (Income), Net* 89 (45) EBIT** (non-GAAP measure) 7,528 8,436 Restructuring and o
Slide 29: EBIT: Specialty Products Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Specialty Products Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) Fiscal Year Ended May 31, 2024 2023 Income Before Income Taxes $ 43,784 $ 103,279 Add: Interest (Income), Net* (204) (68) EBIT** (non-GAAP measure) 43,580 103,211 Restructuring and ot
Slide 30: EBIT: Consumer Segment: Three Months
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended May 31, 2024 2023 Income Before Income Taxes $ 113,146 $ 99,449 Add: Interest Expense, Net* 58 3,417 EBIT** (non-GAAP measure) 113,204 102,866 Restructuring and other relate
Slide 31: EBIT: Consumer Segment: Fiscal Year
EBIT** (Non-GAAP Measure): Consumer Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) Fiscal Year Ended May 31, 2024 2023 Income Before Income Taxes $ 408,200 $ 378,157 Add: Interest (Income) Expense, Net* (2,561) 3,372 EBIT** (non-GAAP measure) 405,639 381,529 Restructuring and