Rpm International Inc. · NYSE:RPM
Rpm International — Q2 FY2020 Earnings Presentation
20 slides from Rpm International's earnings presentation, Jan 8, 2020
Slide 1: Second Quarter Results Fiscal Year 2020
Second Quarter Results Fiscal Year 2020 RPM International Inc.
Slide 2: Consolidated Statements of Income (Fiscal Year Ended May 31, 2019)
Consolidated Statements of Income (As Reported) ($ in thousands, except per share and percent data) Fiscal Year Ended May 31, % 2019 % 2018 % Change Net Sales $ 5,564,551 $ 5,321,643 4.6 Cost of Sales 3,476,231 62.5 3,305,095 62.1 Gross Profit 2,088,320 37.5 2,016,548 37.9 SG&A 1,596,043 28.7 1,498,
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, 2019 % 2018 % % Change Net Sales $ 1,401,292 $ 1,362,531 2.8 Cost of Sales 871,894 62.2 868,800 63.8 Gross Profit 529,398 37.8 493,731 36.2 SG&A 403,357 28.8
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, 2019 % 2018 % % Change Net Sales $ 2,874,056 $ 2,822,520 1.8 Cost of Sales 1,769,904 61.6 1,779,436 63.0 Gross Profit 1,104,152 38.4 1,043,084 37.0 SG&A 803,923
Slide 5: Reconciliations of Non-GAAP Measures To GAAP Measures
Reconciliations of Non-GAAP Measures To GAAP Measures RPM International Inc.
Slide 6: Free Cash Flow Generation (Non-GAAP Measure)
Free Cash Flow Generation (Non-GAAP Measure) ($ in thousands) Fiscal Year Ended May 31, 2019 2018 2017 2016 2015 Cash Flows from Operating Activities: Net income $ 267,687 $ 339,257 $ 184,671 $ 357,458 $ 228,328 Depreciation and amortization 141,742 128,499 116,773 111,039 99,176 Working capital and
Slide 7: Adjustments Detail
Adjustments Detail (a) Inventory-related charges reflect the following in fiscal 2020: charges recorded in cost of goods sold that reflect product line and SKU rationalization at our Consumer Segment, as well as inventory write-offs in connection with restructuring activities at our Construction Pro
Slide 8: EBIT (Non-GAAP Measure): RPM Consolidated, Three Months
EBIT* (Non-GAAP Measure): RPM Consolidated (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Three months ended November 30, 2019 2018 Income Before Income Taxes $ 101,753 $ 66,593 Interest Expense 26,341 23,127 Investment (Income) Expense, Net (8,805) 7,033 EBIT* (non-GA
Slide 9: EBIT (Non-GAAP Measure): RPM Consolidated, Six Months
EBIT* (Non-GAAP Measure): RPM Consolidated (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Six months ended November 30, 2019 2018 Income Before Income Taxes $ 244,602 $ 158,531 Interest Expense 54,658 47,533 Investment (Income) Expense, Net (14,190) 4,600 EBIT* (non-GA
Slide 10: Reconciliation of Reported to Adjusted EPS (Three Months)
Reconciliation of "Reported" to "Adjusted" EPS (Unaudited) Three months ended November 30, 2019 2018 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 0.59 $ 0.37 Inventory-related cha
Slide 11: Reconciliation of Reported to Adjusted EPS (Six Months)
Reconciliation of "Reported" to "Adjusted" EPS (Unaudited) Six months ended November 30, 2019 2018 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 1.41 $ 0.89 Inventory-related charg
Slide 12: EBIT: Construction Products Segment, Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Three months ended November 30, 2019 2018 Income Before Income Taxes $ 57,123 $ 35,357 Add: Interest Expense, Net* 2,074 2,189 EBIT** (non-GAAP measure) 59,197 37,54
Slide 13: EBIT: Construction Products Segment, Six Months
EBIT** (Non-GAAP Measure): Construction Products Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Six months ended November 30, 2019 2018 Income Before Income Taxes $ 139,803 $ 100,401 Add: Interest Expense, Net* 4,101 4,479 EBIT** (non-GAAP measure) 143,904 104,
Slide 14: EBIT: Performance Coatings Segment, Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Three months ended November 30, 2019 2018 Income Before Income Taxes $ 33,320 $ 22,299 Add: Interest (Income) Expense, Net* (25) 223 EBIT** (non-GAAP measure) 33,295
Slide 15: EBIT: Performance Coatings Segment, Six Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Six months ended November 30, 2019 2018 Income Before Income Taxes $ 61,377 $ 30,624 Add: Interest Expense, Net* 104 341 EBIT** (non-GAAP measure) 61,481 30,965 Inven
Slide 16: EBIT: Consumer Segment, Three Months
EBIT** (Non-GAAP Measure): Consumer Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Three months ended November 30, 2019 2018 Income Before Income Taxes $ 34,456 $ 41,836 Add: Interest Expense, Net* 56 123 EBIT** (non-GAAP measure) 34,512 41,959 Inventory-relate
Slide 17: EBIT: Consumer Segment, Six Months
EBIT** (Non-GAAP Measure): Consumer Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Six months ended November 30, 2019 2018 Income Before Income Taxes $ 93,614 $ 92,805 Add: Interest Expense, Net* 161 297 EBIT** (non-GAAP measure) 93,775 93,102 Inventory-related
Slide 18: EBIT: Specialty Segment, Three Months
EBIT** (Non-GAAP Measure): Specialty Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Three months ended November 30, 2019 2018 Income Before Income Taxes $ 18,762 $ 26,119 Add: Interest Expense (Income), Net* 7 (105) EBIT** (non-GAAP measure) 18,769 26,014 Restr
Slide 19: EBIT: Specialty Segment, Six Months
EBIT** (Non-GAAP Measure): Specialty Segment (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Six months ended November 30, 2019 2018 Income Before Income Taxes $ 42,089 $ 49,935 Add: Interest (Income), Net* (19) (198) EBIT** (non-GAAP measure) 42,070 49,737 Restructurin
Slide 20: EBIT & EBITDA (Non-GAAP Measures)
EBIT* & EBITDA (Non-GAAP Measures) *EBIT is defined as earnings before interest and taxes, while EBITDA is (In thousands) (2) defined as earnings before interest, taxes, depreciation and 2015 2016 2017 2018 2019 amortization. We evaluate the profit performance of our segments Net income $ 228,328 $