MEDINA, Ohio, April 6, 2016 /PRNewswire/ -- RPM
International Inc. (NYSE: RPM) today reported record sales and EBIT
for its fiscal 2016 third quarter ended February 29, 2016, despite the strong U.S. dollar
and overall weakness in many global markets outside the
U.S.
Third-Quarter Results
Net sales grew 4.5% to $988.6
million in the fiscal 2016 third quarter from $946.4 million in the fiscal 2015 third quarter.
Consolidated earnings before interest and taxes (EBIT) were
$42.1 million, up 23.1% from
$34.2 million a year ago. Net income
of $18.6 million in the fiscal 2016
third quarter compares to a reported loss of $57.3 million a year ago. Third-quarter diluted
earnings per common share were $0.14,
compared to a year-ago reported loss of $0.44.
The year-ago loss for the quarter was due to a one-time,
non-cash net charge for a tax accrual related to possible
repatriation of overseas earnings to fund future obligations for
the company's Specialty Products Holding Corp. (SPHC) bankruptcy
settlement. On an as-adjusted basis, earnings per diluted share
were $0.20 in the prior year's third
quarter, which included a $13.0
million or $0.10 per share tax
benefit.
"We were pleased with RPM's performance during our seasonally
slow third quarter, considering the headwinds posed by foreign
currency translation, which reduced sales by 4.2% in the quarter,
along with declining economies in a number of the international
markets we serve," stated Frank C.
Sullivan, RPM chairman and chief executive officer. "We were
able to leverage good sales growth into EBIT growth of 23%."
Third-Quarter Segment Sales and Earnings
Industrial segment sales declined 3.1% to $484.0 million from $499.6
million in the fiscal 2015 third quarter. Organic sales
improved 2.6%, while acquisitions added 0.7%. Foreign currency
translation negatively impacted sales by 6.4%. Industrial segment
EBIT for the quarter of $2.1 million, was $6.7 million below last year's EBIT of
$8.8 million. During the quarter, the
industrial segment had $6.9 million in higher product warranty
expenses and severance-related charges across businesses operating
in weaker end markets. Excluding these items, industrial EBIT would
have been up slightly year over year.
"Results from our industrial segment continue to be mixed by
both end markets and geography. Our U.S. based industrial companies
serving the commercial construction markets enjoyed high
single-digit growth. However, our businesses with exposure to the
global energy sector continue to be down by about 10%.
Geographically, our Latin American industrial businesses showed
strong organic growth in local currencies, while performance by
businesses in Europe was somewhat
choppy," stated Sullivan.
Third-quarter sales in the company's specialty segment increased
37.5% to $165.6 million from
$120.4 million a year ago.
Organic sales increased 7.5% and acquisitions added 31.5%,
primarily a result of the inclusion of December's results from SPHC
companies that were reconsolidated with RPM at the beginning of the
2015 calendar year, along with the Morrells acquisition in
March 2015. Foreign currency
translation negatively impacted sales by 1.5%. Specialty segment
EBIT increased 128.4% to $21.4
million from $9.4 million in
the fiscal 2015 third quarter.
"Excluding the additional month of SPHC sales for December, our
specialty businesses are gaining market share in a broad base of
niche markets and performed well in Europe," stated Sullivan.
Sales in RPM's consumer segment increased 3.9% to $339.0 million from $326.4
million in the fiscal 2015 third quarter. Organic sales
increased 4.6%, while acquisitions added 1.2%. Foreign currency
translation negatively impacted sales by 1.9%. Consumer segment
EBIT increased 10.3% to $38.8 million from $35.1 million a year ago.
"In our consumer segment, excluding the soft nail polish enamels
business, organic growth was approximately 6%, fueled by recent
market share gains and new product placements," stated
Sullivan.
Cash Flow and Financial Position
For the first nine months of fiscal 2016, cash from operations
was $223.8 million, compared to
$24.1 million in the first nine
months of fiscal 2015. Capital expenditures during the current
nine-month period of $54.8 million
compare to $47.3 million over the
same time in fiscal 2015. Total debt at the end of the first nine
months of fiscal 2016 was $1.75
billion, compared to $1.87
billion a year ago and $1.66 billion at the end of fiscal 2015.
RPM's net (of cash) debt-to-total capitalization ratio was 55.3%,
compared to 57.2% at February 28,
2015. During the first nine months of fiscal 2016, RPM
repurchased 800,000 shares of its stock in the open market at a
cost of $35.1 million.
"At February 29, 2016, RPM's total
liquidity, including cash and long-term committed available credit,
was $864.5 million," Sullivan stated.
"We continue our search for strong acquisition candidates to
enhance our product offerings and broaden our geographic presence,
as well as investing in our future through internal growth
initiatives," stated Sullivan.
Nine-Month Results
Nine-month net sales grew 5.1% to $3.39
billion from $3.22 billion a
year ago. Consolidated EBIT was $344.4
million, up 8.3% from $318.0
million a year ago. Reported net income of $201.8 million, or $1.50 per diluted share, increased 81.0% from net
income of $111.5 million, or
$0.84 per diluted share, in the
year-ago period. Excluding fiscal 2015's third-quarter non-cash,
net tax charge, fiscal 2016 nine-month net income improved 3.5%
from $195.0 million a year ago, or
$1.44 per diluted share.
Nine-Month Segment Sales and Earnings
Sales for RPM's industrial segment declined 4.6%, to
$1.76 billion from $1.84 billion in the fiscal 2015 first nine
months. Organic sales increased 2.8%, while acquisitions added
0.6%. Foreign currency translation negatively impacted sales by
8.0%. Industrial segment EBIT of $150.8
million declined 6.7% from EBIT of $161.7 million in the first nine months of fiscal
2015.
Specialty segment sales increased 98.1% to $535.9 million from $270.5
million in the first nine months a year ago. Organic sales
increased 3.4% and acquisitions, primarily the SPHC
reconsolidation, added 99.4%. Foreign currency translation
negatively impacted sales by 4.7%. Specialty segment EBIT grew
93.5% to $78.5 million from
$40.6 million in the same period a
year ago.
In the consumer segment, nine-month sales declined 1.4% to
$1.10 billion from $1.11 billion in the first nine months of fiscal
2015. Organic sales improved 0.4%, while acquisitions added 0.7%.
Foreign currency negatively impacted sales by 2.5%. Consumer
segment EBIT declined 1.8%, to $170.2 million from $173.4 million in the first nine months a year
ago.
Business Outlook
"For the fourth quarter of our fiscal year, we expect consumer
segment sales to grow in the mid-single-digit range. Benefits from
recent market share gains and new product placements that just
began impacting sales in the third quarter this year are expected
to continue adding incremental sales into fiscal 2017. In our
industrial segment, we expect solid growth for businesses serving
the U.S. commercial construction markets to be somewhat offset by
results from businesses serving the global energy sector. In our
specialty segment businesses, sales growth in the mid- to
upper-single-digit range will be predominately organically
driven.
"While the negative impact of currency translation is
diminishing slightly on a sequential basis, it will continue to
challenge us. In addition, during last year's fiscal fourth
quarter, the company reversed a Synta earn-out accrual in the
amount of $9.9 million, impacting EPS
favorably by $0.05 per share. Taking
into account all of these factors, we are maintaining our guidance
for fiscal 2016 full-year results of $2.50 per diluted share," Sullivan stated.
Webcast and Conference Call Information
Management will host a conference call to discuss these results
beginning at 10:00 a.m. EDT today.
The call can be accessed by dialing 888-771-4371 or 847-585-4405
for international callers. Participants are asked to call the
assigned number approximately 10 minutes before the conference call
begins. The call, which will last approximately one hour, will be
open to the public, but only financial analysts will be permitted
to ask questions. The media and all other participants will be in a
listen-only mode.
For those unable to listen to the live call, a replay will be
available from approximately 12:30 p.m. EDT today until
11:59 p.m. EDT on April 13, 2016. The replay can be accessed by
dialing 888-843-7419 or 630-652-3042 for international callers. The
access code is 41121751. The call also will be available both live
and for replay, and as a written transcript, via the RPM web site
at www.rpminc.com.
About RPM
RPM International Inc. owns subsidiaries that are world leaders
in specialty coatings, sealants, building materials and related
services across three segments. RPM's industrial products include
roofing systems, sealants, corrosion control coatings, flooring
coatings and other construction chemicals. Industrial companies
include Stonhard, Tremco, illbruck, Carboline, Flowcrete, and
Euclid Chemical. RPM's consumer products are used by professionals
and do-it-yourselfers for home maintenance and improvement and by
hobbyists. Consumer brands include Rust-Oleum, DAP, Zinsser,
Varathane and Testors. RPM's specialty products include industrial
cleaners, colorants, exterior finishes, specialty OEM coatings,
edible coatings, restoration services equipment and specialty
glazes for the pharmaceutical and food industries. Specialty
segment companies include Day-Glo, Dryvit, RPM Wood Finishes,
Mantrose-Haeuser, RPM Belgium, Legend Brands, Kop-Coat, and
TCI. Additional details can be found at www.rpminc.com and by
following RPM on Twitter at www.twitter.com/RPMintl.
For more information, contact Barry M.
Slifstein, vice president – investor relations, at
330-273-5090 or bslifstein@rpminc.com.
This press release 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
uncertainties and factors (including those specified below) which
are difficult to predict and, in many instances, are beyond our
control. As a result, our actual results could differ materially
from those expressed in or implied by any such forward-looking
statements. These uncertainties and factors include (a) global
markets and general economic conditions, including uncertainties
surrounding the volatility in financial markets, the availability
of capital and the effect of changes in interest rates, and the
viability of banks and other financial institutions; (b) the
prices, supply and capacity of raw materials, including assorted
pigments, resins, solvents and other natural gas- and oil-based
materials; packaging, including plastic containers; and
transportation services, including fuel surcharges; (c) continued
growth in demand for our products; (d) legal, environmental and
litigation risks inherent in our construction and chemicals
businesses and risks related to the adequacy of our insurance
coverage for such matters; (e) the effect of changes in interest
rates; (f) the effect of fluctuations in currency exchange rates
upon our foreign operations; (g) the effect of non-currency risks
of investing in and conducting operations in foreign countries,
including those relating to domestic and international political,
social, economic and regulatory factors; (h) risks and
uncertainties associated with our ongoing acquisition and
divestiture activities; (i) risks related to the adequacy of our
contingent liability reserves; and (j) other risks detailed in our
filings with the Securities and Exchange Commission, including the
risk factors set forth in our Annual Report on Form 10-K for the
year ended May 31, 2015, as the same may be updated from
time to time. We do not undertake any obligation to publicly update
or revise any forward-looking statements to reflect future events,
information or circumstances that arise after the date of this
release.
CONSOLIDATED
STATEMENTS OF INCOME
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IN THOUSANDS, EXCEPT
PER SHARE DATA
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(Unaudited)
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As
Reported
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Adjusted
(1)
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Three Months
Ended
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Nine Months
Ended
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Three Months
Ended
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Nine Months
Ended
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February
29,
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February
28,
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February
29,
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February
28,
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February
28,
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2016
|
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2015
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2016
|
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2015
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2015
|
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2015
|
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Net
Sales
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$
988,555
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$
946,367
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$
3,387,065
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$
3,221,391
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$
946,367
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$
3,221,391
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Cost of
sales
|
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575,593
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566,629
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1,947,211
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1,879,317
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566,629
|
|
1,879,317
|
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|
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|
Gross
profit
|
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|
|
412,962
|
|
379,738
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|
1,439,854
|
|
1,342,074
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|
|
379,738
|
|
1,342,074
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Selling, general
& administrative expenses
|
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370,913
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346,171
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1,096,361
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1,027,585
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346,171
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1,027,585
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Interest
expense
|
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23,140
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|
21,493
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68,078
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60,312
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21,493
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60,312
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Investment (income),
net
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(2,909)
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(7,693)
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(8,077)
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(16,554)
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|
(7,693)
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|
(16,554)
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Other (income),
net
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(88)
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|
(660)
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(876)
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|
(3,524)
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(660)
|
|
(3,524)
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Income before income
taxes
|
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|
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21,906
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|
20,427
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284,368
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|
274,255
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20,427
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|
274,255
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Provision for income
taxes
|
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2,613
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|
99,379
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80,564
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174,512
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(6,847)
|
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68,286
|
|
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Net
income
|
|
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|
|
19,293
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(78,952)
|
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203,804
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99,743
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27,274
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205,969
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Less: Net
income attributable to noncontrolling interests
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711
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(21,604)
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1,974
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(11,754)
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1,118
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10,968
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Net income
attributable to RPM International Inc. Stockholders
|
$
18,582
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$
(57,348)
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$
201,830
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$
111,497
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$
26,156
|
|
$
195,001
|
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Earnings per share
of common stock attributable to
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RPM International
Inc. Stockholders:
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Basic
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$
0.14
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$
(0.44)
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$
1.53
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$
0.84
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$
0.20
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$
1.47
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Diluted
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$
0.14
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$
(0.44)
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$
1.50
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$
0.84
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$
0.20
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$
1.44
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Average shares of
common stock outstanding - basic
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129,068
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129,795
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129,506
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130,039
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129,795
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130,039
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Average shares of
common stock outstanding - diluted
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129,068
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129,795
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136,848
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134,995
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129,795
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|
134,995
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(1) See attached page
for reconciliation from As Reported to Adjusted figures
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SUPPLEMENTAL
SEGMENT INFORMATION
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IN
THOUSANDS
|
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(Unaudited)
|
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|
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|
|
|
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Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
29,
|
|
February
28,
|
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|
February
29,
|
|
February
28,
|
|
|
|
|
|
|
|
|
|
|
Net
Sales:
|
|
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|
|
2016
|
|
2015
|
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|
2016
|
|
2015
|
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|
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|
|
|
|
|
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Industrial
Segment
|
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|
|
$
484,012
|
|
$
499,594
|
|
|
$
1,757,542
|
|
$
1,841,714
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Segment
|
|
|
|
|
165,559
|
|
120,403
|
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|
535,928
|
|
270,516
|
|
|
|
|
|
|
|
|
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|
Consumer
Segment
|
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|
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|
338,984
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|
326,370
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|
|
1,093,595
|
|
1,109,161
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
$
988,555
|
|
$
946,367
|
|
|
$
3,387,065
|
|
$
3,221,391
|
|
|
|
|
|
|
|
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Income Before
Income Taxes (a):
|
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|
|
|
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|
|
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|
|
Industrial
Segment
|
|
|
|
|
|
|
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Income Before Income Taxes
(b)
|
|
|
|
|
$
628
|
|
$
6,902
|
|
|
$
146,341
|
|
$
155,135
|
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net
(c)
|
|
|
|
|
(1,448)
|
|
(1,872)
|
|
|
(4,482)
|
|
(6,519)
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (d)
|
|
|
|
|
$
2,076
|
|
$
8,774
|
|
|
$
150,823
|
|
$
161,654
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
(b)
|
|
|
|
|
$
21,587
|
|
$
9,558
|
|
|
$
79,117
|
|
$
40,898
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income, Net
(c)
|
|
|
|
|
188
|
|
188
|
|
|
583
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (d)
|
|
|
|
|
$
21,399
|
|
$
9,370
|
|
|
$
78,534
|
|
$
40,594
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
(b)
|
|
|
|
|
$
38,785
|
|
$
35,147
|
|
|
$
170,337
|
|
$
173,378
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income (Expense),
Net (c)
|
|
|
|
|
16
|
|
6
|
|
|
116
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (d)
|
|
|
|
|
$
38,769
|
|
$
35,141
|
|
|
$
170,221
|
|
$
173,384
|
|
|
|
|
|
|
|
|
|
|
|
Corporate/Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expense) Before Income
Taxes (b)
|
|
|
|
|
$
(39,094)
|
|
$
(31,180)
|
|
|
$
(111,427)
|
|
$
(95,156)
|
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net
(c)
|
|
|
|
|
(18,987)
|
|
(12,122)
|
|
|
(56,218)
|
|
(37,537)
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (d)
|
|
|
|
|
$
(20,107)
|
|
$
(19,058)
|
|
|
$
(55,209)
|
|
$
(57,619)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes (b)
|
|
|
|
|
$
21,906
|
|
$
20,427
|
|
|
$
284,368
|
|
$
274,255
|
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net (c)
|
|
|
|
|
(20,231)
|
|
(13,800)
|
|
|
(60,001)
|
|
(43,758)
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (d)
|
|
|
|
|
$
42,137
|
|
$
34,227
|
|
|
$
344,369
|
|
$
318,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Prior period
information has been recast to reflect the current period change in
reportable segments.
|
|
|
|
|
|
|
|
|
|
|
(b)
|
The presentation
includes a reconciliation of Income (Loss) Before Income Taxes, a
measure defined by Generally Accepted Accounting Principles in the
United States (GAAP), to EBIT.
|
|
|
|
|
|
|
|
(c)
|
Interest (expense),
net includes the combination of interest (expense) and investment
income/(expense), net.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
EBIT is defined as
earnings (loss) before interest and taxes. We evaluate the
profit performance of our segments based on income before income
taxes, but also look to EBIT as a performance evaluation
measure
|
|
|
|
because interest
expense is essentially related to acquisitions, as opposed to
segment operations. For that reason, we believe EBIT is also
useful to investors as a metric in their investment
decisions.
|
|
|
|
EBIT should not be
considered an alternative to, or more meaningful than, income
before income taxes as determined in accordance with GAAP, since
EBIT omits the impact of interest and taxes in
determining
|
|
operating
performance, which represent items necessary to our continued
operations, given our level of indebtedness and ongoing tax
obligations. Nonetheless, EBIT is a key measure expected by
and useful to our
|
|
fixed income
investors, rating agencies and the banking community all of whom
believe, and we concur, that this measure is critical to the
capital markets' analysis of our segments' core operating
performance. We
|
|
also evaluate EBIT
because it is clear that movements in EBIT impact our ability to
attract financing. Our underwriters and bankers consistently
require inclusion of this measure in offering memoranda in
conjunction
|
|
with any debt
underwriting or bank financing. EBIT may not be indicative of
our historical operating results, nor is it meant to be predictive
of potential future results.
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
"AS REPORTED" TO "ADJUSTED"
|
|
|
|
|
|
|
|
|
|
|
|
IN THOUSANDS, EXCEPT
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
February 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED
|
|
Adjustments
|
|
ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
$
946,367
|
|
$
-
|
|
$ 946,367
|
|
|
|
|
|
Cost of
sales
|
|
566,629
|
|
-
|
|
566,629
|
|
|
|
|
|
Gross
profit
|
|
|
379,738
|
|
-
|
|
379,738
|
|
|
|
|
|
Selling, general
& administrative expenses
|
|
346,171
|
|
-
|
|
346,171
|
|
|
|
|
|
Interest
expense
|
|
21,493
|
|
-
|
|
21,493
|
|
|
|
|
|
Investment expense
(income), net
|
|
(7,693)
|
|
-
|
|
(7,693)
|
|
|
|
|
|
Other expense
(income), net
|
|
(660)
|
|
-
|
|
(660)
|
|
|
|
|
|
Income before income
taxes
|
|
20,427
|
|
-
|
|
20,427
|
|
|
|
|
|
Provision for income
taxes
|
|
99,379
|
|
(106,226)
|
(1)
|
(6,847)
|
|
|
|
|
|
Net income
(loss)
|
|
(78,952)
|
|
106,226
|
|
27,274
|
|
|
|
|
|
Less: Net (loss)
income attributable to noncontrolling interests
|
|
(21,604)
|
|
22,722
|
(1)
|
1,118
|
|
|
|
|
|
Net (loss) income
attributable to RPM International Inc. Stockholders
|
$
(57,348)
|
|
$ 83,504
|
|
$ 26,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
per share attributable to RPM International Inc.
Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.44)
|
|
$
0.64
|
|
$
0.20
|
|
|
|
|
|
Diluted
|
|
|
$
(0.44)
|
|
$
0.64
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reflects adjustments
related to the recognition of an ASC 740-30 tax liability for the
potential repatriation of foreign earnings and related impact on
NCI Net Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
February 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED
|
|
Adjustments
|
|
ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
$ 3,221,391
|
|
$
-
|
|
$ 3,221,391
|
|
|
|
|
|
Cost of
sales
|
|
1,879,317
|
|
-
|
|
1,879,317
|
|
|
|
|
|
Gross
profit
|
|
|
1,342,074
|
|
-
|
|
1,342,074
|
|
|
|
|
|
Selling, general
& administrative expenses
|
|
1,027,585
|
|
-
|
|
1,027,585
|
|
|
|
|
|
Interest
expense
|
|
60,312
|
|
-
|
|
60,312
|
|
|
|
|
|
Investment (income),
net
|
|
(16,554)
|
|
-
|
|
(16,554)
|
|
|
|
|
|
Other expense
(income), net
|
|
(3,524)
|
|
-
|
|
(3,524)
|
|
|
|
|
|
Income before income
taxes
|
|
274,255
|
|
-
|
|
274,255
|
|
|
|
|
|
Provision for income
taxes
|
|
174,512
|
|
(106,226)
|
(1)
|
68,286
|
|
|
|
|
|
Net
income
|
|
|
99,743
|
|
106,226
|
|
205,969
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
(11,754)
|
|
22,722
|
(1)
|
10,968
|
|
|
|
|
|
Net income
attributable to RPM International Inc. Stockholders
|
$
111,497
|
|
$ 83,504
|
|
$ 195,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to RPM International Inc. Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
0.84
|
|
$
0.63
|
|
$
1.47
|
|
|
|
|
|
Diluted
|
|
|
$
0.84
|
|
$
0.60
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
IN
THOUSANDS
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
February 29,
2016
|
|
February 28,
2015
|
|
May 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
220,712
|
|
$
220,390
|
|
$
174,711
|
|
|
Trade accounts
receivable
|
|
769,003
|
|
823,126
|
|
980,737
|
|
|
Allowance for
doubtful accounts
|
|
(22,450)
|
|
(25,975)
|
|
(24,526)
|
|
|
Net trade accounts
receivable
|
|
746,553
|
|
797,151
|
|
956,211
|
|
|
Inventories
|
|
739,716
|
|
724,116
|
|
674,205
|
|
|
Deferred income
taxes
|
|
29,042
|
|
29,644
|
|
29,892
|
|
|
Prepaid expenses and
other current assets
|
|
194,285
|
|
255,468
|
|
264,827
|
|
|
Total current
assets
|
|
1,930,308
|
|
2,026,769
|
|
2,099,846
|
|
|
|
|
|
|
|
|
|
|
Property, Plant
and Equipment, at Cost
|
|
1,278,553
|
|
1,224,640
|
|
1,258,304
|
|
|
Allowance for
depreciation
|
|
(698,902)
|
|
(656,328)
|
|
(668,658)
|
|
|
Property, plant
and equipment, net
|
|
579,651
|
|
568,312
|
|
589,646
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Goodwill
|
|
1,182,293
|
|
1,201,112
|
|
1,215,688
|
|
|
Other intangible
assets, net of amortization
|
|
566,977
|
|
603,398
|
|
604,130
|
|
|
Deferred income
taxes, non-current
|
|
2,237
|
|
-
|
|
5,685
|
|
|
Other
|
|
186,623
|
|
155,125
|
|
179,245
|
|
|
Total other
assets
|
|
1,938,130
|
|
1,959,635
|
|
2,004,748
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
4,448,089
|
|
$
4,554,716
|
|
$
4,694,240
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
367,038
|
|
$
379,975
|
|
$
512,165
|
|
|
Current portion of
long-term debt
|
|
3,405
|
|
151,531
|
|
2,038
|
|
|
Accrued compensation
and benefits
|
|
129,105
|
|
117,773
|
|
169,370
|
|
|
Accrued
losses
|
|
27,581
|
|
21,808
|
|
22,016
|
|
|
Other accrued
liabilities
|
|
255,274
|
|
182,145
|
|
197,647
|
|
|
Total current
liabilities
|
|
782,403
|
|
853,232
|
|
903,236
|
|
|
|
|
|
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
|
|
|
|
|
Long-term debt, less
current maturities
|
|
1,749,823
|
|
1,716,580
|
|
1,654,037
|
|
|
Other long-term
liabilities
|
|
609,952
|
|
706,915
|
|
752,821
|
|
|
Deferred income
taxes
|
|
65,391
|
|
44,196
|
|
90,681
|
|
|
Total long-term
liabilities
|
|
2,425,166
|
|
2,467,691
|
|
2,497,539
|
|
|
Total
liabilities
|
|
3,207,569
|
|
3,320,923
|
|
3,400,775
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred stock; none
issued
|
|
|
|
|
|
|
|
|
Common stock
(outstanding 132,846; 133,236; 133,203)
|
1,328
|
|
1,332
|
|
1,332
|
|
|
Paid-in
capital
|
|
895,131
|
|
852,559
|
|
872,127
|
|
|
Treasury stock, at
cost
|
|
(191,693)
|
|
(121,312)
|
|
(124,928)
|
|
|
Accumulated other
comprehensive (loss)
|
|
(497,754)
|
|
(344,576)
|
|
(394,135)
|
|
|
Retained
earnings
|
|
1,031,020
|
|
843,647
|
|
936,996
|
|
|
Total RPM International
Inc. stockholders' equity
|
1,238,032
|
|
1,231,650
|
|
1,291,392
|
|
|
Noncontrolling
interest
|
|
2,488
|
|
2,143
|
|
2,073
|
|
|
Total
equity
|
|
1,240,520
|
|
1,233,793
|
|
1,293,465
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
4,448,089
|
|
$
4,554,716
|
|
$
4,694,240
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
IN
THOUSANDS
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
February
29,
|
|
February
28,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
Net
income
|
|
|
$
203,804
|
|
$
99,743
|
|
Adjustments to
reconcile net income to net
|
|
|
|
|
|
cash provided by (used for) operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
49,980
|
|
45,870
|
|
Amortization
|
|
|
33,151
|
|
25,961
|
|
Reversal of contingent consideration obligations
|
|
(14,500)
|
|
(19,180)
|
|
Deferred income taxes
|
|
(18,556)
|
|
93,274
|
|
Stock-based compensation expense
|
|
23,000
|
|
22,443
|
|
Other non-cash interest expense
|
|
7,305
|
|
3,182
|
|
Other
|
|
|
1,994
|
|
(4,961)
|
|
Changes in
assets and liabilities, net of effect
|
|
|
|
|
|
from purchases and sales of businesses:
|
|
|
|
|
|
Decrease in receivables
|
|
179,003
|
|
72,633
|
|
(Increase) in inventory
|
|
(81,837)
|
|
(83,257)
|
|
(Increase) decrease in prepaid expenses and other
|
|
|
|
|
current and long-term assets
|
|
(13,347)
|
|
435
|
|
(Decrease) in accounts payable
|
|
(133,841)
|
|
(147,979)
|
|
(Decrease) in accrued compensation and benefits
|
(35,202)
|
|
(53,593)
|
|
Increase (decrease) in accrued losses
|
|
5,948
|
|
(7,579)
|
|
Increase in other accrued liabilities
|
|
4,696
|
|
18,801
|
|
Other
|
|
|
12,221
|
|
(41,678)
|
|
Cash Provided By Operating Activities
|
|
223,819
|
|
24,115
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Capital
expenditures
|
|
|
(54,819)
|
|
(47,293)
|
|
Acquisition of businesses,
net of cash acquired
|
|
(28,926)
|
|
(433,885)
|
|
Purchase of marketable
securities
|
|
(21,981)
|
|
(35,033)
|
|
Proceeds from sales of
marketable securities
|
|
18,722
|
|
41,308
|
|
Other
|
|
|
|
7,430
|
|
13,126
|
|
Cash (Used For) Investing Activities
|
|
(79,574)
|
|
(461,777)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Additions to long-term and
short-term debt
|
|
116,578
|
|
526,585
|
|
Reductions of long-term and
short-term debt
|
|
(19,419)
|
|
(10,609)
|
|
Cash dividends
|
|
|
(107,806)
|
|
(101,541)
|
|
Shares of common stock
repurchased and returned for taxes
|
(66,765)
|
|
(35,912)
|
|
Payments of
acquisition-related contingent consideration
|
(2,006)
|
|
(24,750)
|
|
Other
|
|
|
|
(1,239)
|
|
1,969
|
|
Cash (Used For) Provided By Financing Activities
|
(80,657)
|
|
355,742
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and
|
|
|
|
|
Cash
Equivalents
|
(17,587)
|
|
(30,558)
|
|
|
|
|
|
|
|
|
|
Net Change in Cash
and Cash Equivalents
|
46,001
|
|
(112,478)
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at Beginning of Period
|
174,711
|
|
332,868
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at End of Period
|
$
220,712
|
|
$
220,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rpm-reports-fiscal-2016-third-quarter-results-300246842.html
SOURCE RPM International Inc.