Rpm International Inc. · NYSE:RPM
Rpm International — Q3 FY2020 Earnings Presentation
20 slides from Rpm International's earnings presentation, Apr 8, 2020
Slide 1: Third Quarter Results Fiscal Year 2020
Third Quarter Results Fiscal Year 2020 RPM International Inc.
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, % 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 February 29, 2020 % February 28, 2019 % % Change Net Sales $ 1,173,976 $ 1,140,630 2.9 Cost of Sales 739,229 63.0 731,208 64.1 Gross Profit 434,747 37.0 409,422 35.9 SG&A
Slide 4: Consolidated Statements of Income (Nine Months)
Consolidated Statements of Income (As Reported) ($ in thousands, except per share and percent data) Unaudited Nine months ended February 29, 2020 % February 28, 2019 % % Change Net Sales $ 4,048,033 $ 3,963,150 2.1 Cost of Sales 2,509,133 62.0 2,510,643 63.3 Gross Profit 1,538,900 38.0 1,452,507 36.
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 February 29, 2020 February 28, 2019 Net Income $ 12,090 $ 14,496 Provision (Benefit) for Income Taxes 4,218 (10,032) Income Before Income Taxes 16,308 4,464 Int
Slide 9: EBIT (Non-GAAP Measure): RPM Consolidated, Nine Months
EBIT* (Non-GAAP Measure): RPM Consolidated (As Reported) ($ in thousands, except per share and percent data) (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Net Income $ 195,907 $ 133,855 Provision for Income Taxes 65,002 29,140 Income Before Income Taxes 260,909 162,995 Interest E
Slide 10: Reconciliation of Reported to Adjusted EPS
Reconciliation of "Reported" to "Adjusted" EPS (Unaudited) Three months ended February 29, 2020 February 28, 2019 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 0.09 $ 0.11 Inventor
Slide 11: Reconciliation of Reported to Adjusted EPS
Reconciliation of "Reported" to "Adjusted" EPS (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): Reported Earnings per Diluted Share $ 1.50 $ 1.00 Inventory
Slide 12: EBIT (Non-GAAP Measure): Construction Products Segment
EBIT** (Non-GAAP Measure): Construction Products Segment (As Reported) ($ in thousands and percent data) (Unaudited) Three months ended February 29, 2020 February 28, 2019 (Loss) Before Income Taxes $ (478) $ (4,025) Add: Interest Expense, Net* 2,130 2,489 EBIT** (non-GAAP measure) 1,652 (1,536) Inv
Slide 13: EBIT (Non-GAAP Measure): Construction Products Segment
EBIT** (Non-GAAP Measure): Construction Products Segment (As Reported) ($ in thousands and percent data) (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 139,324 $ 96,375 Add: Interest Expense, Net* 6,231 6,968 EBIT** (non-GAAP measure) 145,555 103,343 I
Slide 14: EBIT (Non-GAAP Measure): Performance Coatings Segment
EBIT** (Non-GAAP Measure): Performance Coatings Segment (As Reported) ($ in thousands and percent data) (Unaudited) Three months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 22,240 $ 14,365 Add: Interest Expense (Income), Net* (123) 62 EBIT** (non-GAAP measure) 22,117 14,42
Slide 15: EBIT (Non-GAAP Measure): Performance Coatings Segment
EBIT** (Non-GAAP Measure): Performance Coatings Segment (As Reported) ($ in thousands and percent data) (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 83,617 $ 44,990 Add: Interest Expense (Income), Net* (20) 401 EBIT** (non-GAAP measure) 83,597 45,391
Slide 16: EBIT (Non-GAAP Measure): Consumer Segment
EBIT** (Non-GAAP Measure): Consumer Segment (As Reported) ($ in thousands and percent data) (Unaudited) Three months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 29,798 $ 25,272 Add: Interest Expense, Net* 57 119 EBIT** (non-GAAP measure) 29,855 25,391 Inventory-related cha
Slide 17: EBIT (Non-GAAP Measure): Consumer Segment
EBIT** (Non-GAAP Measure): Consumer Segment (As Reported) ($ in thousands and percent data) (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 123,413 $ 118,078 Add: Interest Expense, Net* 219 417 EBIT** (non-GAAP measure) 123,632 118,495 Inventory-related
Slide 18: EBIT (Non-GAAP Measure): Specialty Segment
EBIT** (Non-GAAP Measure): Specialty Segment (As Reported) ($ in thousands and percent data) (Unaudited) Three months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 12,942 $ 16,115 Add: Interest Expense (Income), Net* 24 (135) EBIT** (non-GAAP measure) 12,966 15,980 Inventory
Slide 19: EBIT (Non-GAAP Measure): Specialty Segment
EBIT** (Non-GAAP Measure): Specialty Segment (As Reported) ($ in thousands and percent data) (Unaudited) Nine months ended February 29, 2020 February 28, 2019 Income Before Income Taxes $ 55,031 $ 66,049 Add: Interest Expense (Income), Net* 6 (332) EBIT** (non-GAAP measure) 55,037 65,717 Inventory-r
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) defined as earnings before interest, taxes, depreciation and 2015 (2) 2016 2017 2018 2019 amortization. We evaluate the profit performance of our segments Net income $ 228,328 $