MEDINA, Ohio, July 27, 2015 /PRNewswire/ -- RPM
International Inc. (NYSE: RPM) today reported record sales, net
income and diluted earnings per share for its fiscal fourth quarter
ended May 31, 2015.
Fourth-Quarter Results
Fourth-quarter net sales increased 7.5% to $1.37 billion from $1.28
billion. Consolidated earnings before interest and taxes
(EBIT) improved 18.7% to $204.3 million, from $172.1 million a year ago. Net income for the
fourth quarter was up 17.7% to $128.0
million from $108.8 million
reported in the fourth quarter of fiscal 2014. Diluted earnings per
share were $0.94, up 17.5% from
$0.80 reported a year ago.
"We are pleased with RPM's fourth-quarter performance,
especially in view of the headwinds posed by the very strong U.S.
dollar and sluggish conditions in many international regions,
including much of Europe and
Latin America. Despite these
challenges, our operating companies continue to compete and win in
their respective markets, helping to drive our growth. Furthermore,
fiscal 2015 will be most remembered as the year we closed the
chapter on our Bondex asbestos liability issue and reconsolidated
the Specialty Products Holding Corp. (SPHC) subsidiaries generating
more than $400 million in annualized
sales back into the fold at RPM," stated Frank C. Sullivan, RPM chairman and chief
executive officer.
Fourth-Quarter Segment Sales and Earnings
Fiscal 2015 fourth-quarter industrial segment sales increased
14.2% to $878.5 million from
$769.2 million reported a year
ago. Organic sales improved 6.4%, while acquisition growth added
16.3%, including the impact of SPHC subsidiaries that were
reconsolidated with RPM's results effective on January 1, 2015. Foreign currency translation
negatively impacted sales by 8.5%. Industrial segment EBIT was up
21.6% to $120.7 million from
$99.2 million in the prior year.
"Industrial results were mixed in the fourth quarter, as they
have been throughout the 2015 fiscal year. Our U.S.
industrial businesses performed well, benefiting in part from
continued momentum in commercial construction and the additional
sales attributable to the reconsolidation of SPHC. This performance
was dampened by the surge in the U.S. dollar against most other
currencies around the world, especially the Euro. Overall,
our industrial businesses in Europe showed tremendous resiliency with
relatively flat sales in local currencies," stated Sullivan.
Net sales for RPM's consumer segment declined 2.5% to
$494.7 million from $507.6 million in the fiscal 2014 fourth quarter.
Organic sales were down 1.3%, while acquisition growth added 1.3%.
Foreign exchange translation was a negative 2.5%. Consumer segment
EBIT increased 17.1% in the fiscal 2015 fourth quarter to
$100.6 million from $86.0 million and included an earn-out reversal
of $9.9 million from Synta,
established at the time of its acquisition in fiscal 2013.
Excluding the earn-out, EBIT increased 5.5%.
"Our consumer businesses faced some tough comparisons against a
very strong fourth quarter in fiscal 2014, particularly our Synta
deck coatings and Kirker nail enamel businesses. Additionally, the
impact of a particularly rainy spring and start to the summer
selling season dampened retail take-away across nearly all our
consumer product lines," stated Sullivan.
Cash Flow and Financial Position
For fiscal 2015, cash from operations was $330.4 million, up 18.8% from $278.1 million in fiscal 2014. Capital
expenditures during the year were $85.4
million, while depreciation was $62.2
million. Total debt at the end of fiscal 2015 was
$1.66 billion, compared to
$1.35 billion at the end of fiscal
2014. RPM's net (of cash) debt-to-total capitalization ratio was
53.4%, compared to 42.4% at May 31,
2014.
As previously reported, during the fourth quarter RPM sold
$250 million aggregate principal
amount of its 5.250% notes due June 1,
2045. Net proceeds of the offering were used to repay a
portion of borrowings under the company's revolving credit
facility.
"RPM's capital position remains strong, with 87.3% of total debt
at fixed rates and a total average interest rate of 4.26%. While
our net (of cash) debt-to-total capitalization ratio increased as a
result of borrowing to fund the first installment of our settlement
related to SPHC, it is still within our historic norms. Our strong
cash generation allowed RPM to reduce long-term debt in the fourth
quarter by more than $200 million. At
May 31, 2015, RPM had $963.7 million in liquidity, including cash and
long-term committed available credit, enabling the continuation of
our acquisition program, internal growth efforts and a growing cash
dividend," Sullivan stated.
Fiscal 2015 Consolidated Sales and Earnings
Fiscal 2015 consolidated net sales increased 5.0% to
$4.59 billion from $4.38 billion in fiscal 2014. Consolidated EBIT
was up 6.7% to $522.3 million from
$489.7 million in fiscal 2014.
Reported net income declined 17.9% to $239.5
million from $291.7 million in
fiscal 2014. Diluted earnings per share of $1.78 were down 18.3% from $2.18 a year ago.
The fiscal 2015 adjustment was $83.5
million in the third quarter for a non-cash, net charge for
a tax accrual related to possible repatriation of overseas earnings
to fund remaining obligations under the company's SPHC settlement.
On an adjusted basis, net income was up 10.7% to $323.0 million, and diluted earnings per share
improved 9.2% to $2.38.
Fiscal 2015 Segment Sales and Earnings
Fiscal 2015 sales for RPM's industrial segment increased 8.0% to
$2.99 billion from $2.77 billion in fiscal 2014. Organic sales
increased 5.1%, with acquisition growth, mostly SPHC, contributing
7.6%. Foreign currency translation negatively impacted sales by
4.7%. Industrial segment EBIT improved 5.6% to $323.0 million from $306.0
million in fiscal 2014.
Consumer segment sales for fiscal 2015 decreased slightly to
$1.60 billion from $1.61 billion in fiscal 2014. Organic sales
increased by 0.1%, and acquisition growth added 1.3%. Currency
translation negatively impacted sales by 1.6%. Consumer segment
EBIT increased 9.1%, to $273.9
million from $251.1 million,
including the benefits of the Synta earn-out reversal during the
fourth quarter and the Kirker earn-out reversal in the second
quarter.
Business Outlook
"For fiscal 2016, we expect consumer segment sales to increase
by 4% to 5%, with our core consumer businesses continuing to gain
market share with new product innovations. Unfortunately, poor
weather from the spring has continued into the summer months,
dampening first-quarter sales. On a more positive note, we expect a
return to both top- and bottom-line growth in our Synta and Kirker
units, both of which faced significant headwinds in fiscal 2015,"
Sullivan stated.
"In the industrial segment, we anticipate sales growth of 8% to
10%. We expect continued positive momentum from our
U.S.-based industrial businesses, especially those serving the
commercial construction markets. In Europe, we see a return to growth in local
currencies by many of our industrial businesses there, along with
continued strong growth in Brazil
in its local currency, with new products expected to drive
incremental sales as well. We don't foresee improvement in sales
for our businesses serving the energy sector, as both exploration
and production continue to decline as a result of lower energy
prices. In addition, we expect a continued strong negative impact
from foreign currency translation," Sullivan stated.
"RPM's guidance for earnings per diluted share in fiscal 2016 is
approximately $2.55, a 7.1%
improvement over the as-adjusted $2.38 per diluted share in fiscal 2015. The
guidance includes the anticipated negative impact of $0.10 per share as a result of a higher effective
tax rate and $0.07 per share from the
estimated negative impact of foreign currency translation during
fiscal 2016. For our consumer segment, the first quarter is getting
off to a weak start due to the weather related slowdown. Our
results for the industrial segment, with 50% of its sales outside
of the U.S., will be somewhat weighted to the second half due to
the expected negative impact of foreign exchange translation during
the first half of fiscal 2016, offset in part by the expected
continuing solid performance of the SPHC companies," stated
Sullivan.
Webcast and Conference Call Information
Management will host a conference call to discuss the results
beginning at 10:00 a.m. EDT the same
day. 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 on July 27, 2015 until 11:59
p.m. EDT on August 3, 2015.
The replay can be accessed by dialing 888-843-7419 or 630-652-3042
for international callers. The access code is 38349286. 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 for both industrial and consumer markets. RPM's industrial
products include roofing systems, sealants, corrosion control
coatings, flooring coatings and specialty chemicals. Industrial
companies include Stonhard, Tremco, illbruck, Carboline, Flowcrete,
Day-Glo, Dryvit 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. 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, 2014, 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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As
Reported
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Adjusted
(1)
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Three Months
Ended
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Year
Ended
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Year
Ended
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May
31,
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May
31,
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May
31,
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2015
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2014
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2015
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2014
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2015
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(Unaudited)
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(Unaudited)
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Net
Sales
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$ 1,373,159
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$ 1,276,782
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$ 4,594,550
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$ 4,376,353
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$ 4,594,550
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Cost of
sales
|
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773,864
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716,057
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2,653,181
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2,500,585
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2,653,181
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Gross
profit
|
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599,295
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560,725
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1,941,369
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1,875,768
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1,941,369
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Selling, general
& administrative expenses
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395,359
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389,416
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1,422,944
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1,390,128
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1,422,944
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Interest
expense
|
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27,303
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19,677
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87,615
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80,951
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87,615
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Investment (income),
net
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(2,023)
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(2,065)
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(18,577)
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(15,715)
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(18,577)
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Other (income),
net
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(342)
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(805)
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(3,866)
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(4,083)
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(3,866)
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Income before income
taxes
|
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178,998
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154,502
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453,253
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424,487
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453,253
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Provision for income
taxes
|
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50,413
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40,732
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224,925
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118,503
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118,699
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Net
income
|
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128,585
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113,770
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228,328
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305,984
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334,554
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Less: Net
income (loss) attributable to noncontrolling interests
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598
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4,991
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(11,156)
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14,324
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11,566
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Net income
attributable to RPM International Inc. Stockholders
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$ 127,987
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$ 108,779
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$ 239,484
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$ 291,660
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$ 322,988
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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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$
0.97
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$
0.82
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$
1.81
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$
2.20
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$
2.43
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Diluted
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$
0.94
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$
0.80
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$
1.78
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$
2.18
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$
2.38
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Average shares of
common stock outstanding - basic
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129,578
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129,532
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129,933
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129,438
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129,933
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Average shares of
common stock outstanding - diluted
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134,540
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134,423
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134,893
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132,288
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134,893
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(1)
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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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As
Reported
|
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|
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Three Months
Ended
|
|
|
Year
Ended
|
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|
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|
|
|
|
|
|
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|
|
May
31,
|
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May
31,
|
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|
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|
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|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
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|
|
|
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|
|
|
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(Unaudited)
|
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Net
Sales:
|
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Industrial
Segment
|
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$ 878,491
|
|
$ 769,181
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$ 2,990,721
|
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$ 2,769,657
|
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Consumer
Segment
|
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494,668
|
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507,601
|
|
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1,603,829
|
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1,606,696
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|
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Total
|
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|
|
$ 1,373,159
|
|
$ 1,276,782
|
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$ 4,594,550
|
|
$ 4,376,353
|
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Income Before
Income Taxes (a):
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Industrial
Segment
|
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Income Before Income Taxes
(a)
|
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|
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$ 119,251
|
|
$ 96,492
|
|
|
$ 315,382
|
|
$ 295,751
|
|
|
|
|
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Interest (Expense), Net
(b)
|
|
|
|
|
(1,441)
|
|
(2,752)
|
|
|
(7,656)
|
|
(10,227)
|
|
|
|
|
|
|
|
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EBIT (c)
|
|
|
|
|
$ 120,692
|
|
$ 99,244
|
|
|
$ 323,038
|
|
$ 305,978
|
|
|
|
|
|
|
|
|
|
|
Consumer
Segment
|
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|
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Income Before Income Taxes
(a)
|
|
|
|
|
$ 100,676
|
|
$ 85,998
|
|
|
$ 273,956
|
|
$ 251,229
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net
(b)
|
|
|
|
|
40
|
|
32
|
|
|
34
|
|
122
|
|
|
|
|
|
|
|
|
|
|
EBIT (c)
|
|
|
|
|
$ 100,636
|
|
$ 85,966
|
|
|
$ 273,922
|
|
$ 251,107
|
|
|
|
|
|
|
|
|
|
|
Corporate/Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expense) Before Income
Taxes (a)
|
|
|
|
|
$ (40,929)
|
|
$ (27,988)
|
|
|
$ (136,085)
|
|
$ (122,493)
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net
(b)
|
|
|
|
|
(23,879)
|
|
(14,892)
|
|
|
(61,416)
|
|
(55,131)
|
|
|
|
|
|
|
|
|
|
|
EBIT (c)
|
|
|
|
|
$ (17,050)
|
|
$ (13,096)
|
|
|
$ (74,669)
|
|
$ (67,362)
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes (a)
|
|
|
|
|
$ 178,998
|
|
$ 154,502
|
|
|
$ 453,253
|
|
$ 424,487
|
|
|
|
|
|
|
|
|
|
|
Interest (Expense), Net (b)
|
|
|
|
|
(25,280)
|
|
(17,612)
|
|
|
(69,038)
|
|
(65,236)
|
|
|
|
|
|
|
|
|
|
|
EBIT (c)
|
|
|
|
|
$ 204,278
|
|
$ 172,114
|
|
|
$ 522,291
|
|
$ 489,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
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.
|
(b)
|
Interest (expense),
net includes the combination of interest (expense) and investment
income/(expense), net.
|
(c)
|
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 corporate 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, operating income 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED
|
|
Adjustments
|
|
ADJUSTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
$ 4,594,550
|
|
$
-
|
|
$ 4,594,550
|
|
|
|
Cost of
sales
|
|
2,653,181
|
|
-
|
|
2,653,181
|
|
|
|
Gross
profit
|
|
|
1,941,369
|
|
-
|
|
1,941,369
|
|
|
|
Selling, general
& administrative expenses
|
|
1,422,944
|
|
-
|
|
1,422,944
|
|
|
|
Interest
expense
|
|
87,615
|
|
-
|
|
87,615
|
|
|
|
Investment (income),
net
|
|
(18,577)
|
|
-
|
|
(18,577)
|
|
|
|
Other expense
(income), net
|
|
(3,866)
|
|
-
|
|
(3,866)
|
|
|
|
Income before income
taxes
|
|
453,253
|
|
-
|
|
453,253
|
|
|
|
Provision for income
taxes
|
|
224,925
|
|
(106,226)
|
(1)
|
118,699
|
|
|
|
Net
income
|
|
|
228,328
|
|
106,226
|
|
334,554
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
(11,156)
|
|
22,722
|
(1)
|
11,566
|
|
|
|
Net income
attributable to RPM International Inc. Stockholders
|
$
239,484
|
|
$ 83,504
|
|
$ 322,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to RPM International Inc. Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
1.81
|
|
$
0.62
|
|
$
2.43
|
|
|
|
Diluted
|
|
|
$
1.78
|
|
$
0.60
|
|
$
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
IN
THOUSANDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
2015
|
|
|
|
May 31,
2014
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
174,711
|
|
|
|
$
332,868
|
|
Trade accounts
receivable
|
|
980,737
|
|
|
|
901,587
|
|
Allowance for
doubtful accounts
|
|
(24,526)
|
|
|
|
(27,641)
|
|
Net trade accounts
receivable
|
|
956,211
|
|
|
|
873,946
|
|
Inventories
|
|
674,205
|
|
|
|
613,644
|
|
Deferred income
taxes
|
|
29,892
|
|
|
|
22,281
|
|
Prepaid expenses and
other current assets
|
|
264,827
|
|
|
|
219,556
|
|
Total current
assets
|
|
2,099,846
|
|
|
|
2,062,295
|
|
|
|
|
|
|
|
|
Property, Plant
and Equipment, at Cost
|
|
1,258,304
|
|
|
|
1,191,676
|
|
Allowance for
depreciation and amortization
|
|
(668,658)
|
|
|
|
(658,871)
|
|
Property, plant
and equipment, net
|
|
589,646
|
|
|
|
532,805
|
Other
Assets
|
|
|
|
|
|
|
|
Goodwill
|
|
1,215,688
|
|
|
|
1,147,374
|
|
Other intangible
assets, net of amortization
|
|
604,130
|
|
|
|
459,536
|
|
Deferred income
taxes, non-current
|
|
5,685
|
|
|
|
7,943
|
|
Other
|
|
179,245
|
|
|
|
168,412
|
|
Total other
assets
|
|
2,004,748
|
|
|
|
1,783,265
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
4,694,240
|
|
|
|
$
4,378,365
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
512,165
|
|
|
|
$
525,680
|
|
Current portion of
long-term debt
|
|
2,038
|
|
|
|
5,662
|
|
Accrued compensation
and benefits
|
|
169,370
|
|
|
|
173,846
|
|
Accrued loss
reserves
|
|
22,016
|
|
|
|
27,487
|
|
Other accrued
liabilities
|
|
197,647
|
|
|
|
204,411
|
|
Total current
liabilities
|
|
903,236
|
|
|
|
937,086
|
|
|
|
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
|
|
|
|
Long-term debt, less
current maturities
|
|
1,654,037
|
|
|
|
1,345,965
|
|
Other long-term
liabilities
|
|
752,821
|
|
|
|
466,659
|
|
Deferred income
taxes
|
|
90,681
|
|
|
|
50,061
|
|
Total long-term
liabilities
|
|
2,497,539
|
|
|
|
1,862,685
|
|
Total
liabilities
|
|
3,400,775
|
|
|
|
2,799,771
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Preferred stock; none
issued
|
|
|
|
|
|
|
|
Common stock
(outstanding 133,203; 133,273)
|
|
1,332
|
|
|
|
1,333
|
|
Paid-in
capital
|
|
872,127
|
|
|
|
790,102
|
|
Treasury stock, at
cost
|
|
(124,928)
|
|
|
|
(85,400)
|
|
Accumulated other
comprehensive (loss)
|
|
(394,135)
|
|
|
|
(156,882)
|
|
Retained
earnings
|
|
936,996
|
|
|
|
833,691
|
|
Total RPM International
Inc. stockholders' equity
|
1,291,392
|
|
|
|
1,382,844
|
|
Noncontrolling
interest
|
|
2,073
|
|
|
|
195,750
|
|
Total
equity
|
|
1,293,465
|
|
|
|
1,578,594
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
4,694,240
|
|
|
|
$
4,378,365
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
IN
THOUSANDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
May
31,
|
|
May
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net
income
|
|
|
$
228,328
|
|
$
305,984
|
Adjustments to
reconcile net income to net
|
|
|
|
|
cash provided by operating activities:
|
|
|
|
|
Depreciation
|
|
|
62,188
|
|
58,543
|
Amortization
|
|
|
36,988
|
|
31,526
|
Reversal of contingent consideration obligations
|
(29,665)
|
|
|
Deferred income taxes
|
|
97,502
|
|
6,572
|
Stock-based compensation expense
|
|
31,741
|
|
23,568
|
Other
|
|
|
(1,114)
|
|
(1,672)
|
Changes in
assets and liabilities, net of effect
|
|
|
|
|
from purchases and sales of businesses:
|
|
|
|
|
(Increase) in receivables
|
|
(90,230)
|
|
(79,080)
|
(Increase) in inventory
|
|
(31,348)
|
|
(59,001)
|
(Increase) in prepaid expenses and other
|
|
|
|
|
current and long-term assets
|
|
(4,590)
|
|
(12,586)
|
(Decrease) increase in accounts payable
|
|
(16,249)
|
|
42,216
|
(Decrease) increase in accrued compensation and benefits
|
(1,297)
|
|
19,193
|
(Decrease) in accrued loss reserves
|
|
(7,218)
|
|
(146)
|
(Decrease) in contingent payment
|
|
|
|
(63,014)
|
Increase in other accrued liabilities
|
|
57,385
|
|
14,855
|
Other
|
|
|
(1,973)
|
|
(8,809)
|
Cash Provided By Operating Activities
|
|
330,448
|
|
278,149
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
|
(85,363)
|
|
(93,792)
|
Acquisition of businesses,
net of cash acquired
|
|
(467,573)
|
|
(39,248)
|
Purchase of marketable
securities
|
|
(61,511)
|
|
(83,536)
|
Proceeds from sales of
marketable securities
|
|
40,279
|
|
62,896
|
Proceeds from sales of
assets or businesses
|
|
4,079
|
|
2,794
|
Other
|
|
|
|
10,636
|
|
1,175
|
Cash (Used For) Investing Activities
|
|
(559,453)
|
|
(149,711)
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Additions to long-term and
short-term debt
|
|
460,560
|
|
208,532
|
Reductions of long-term and
short-term debt
|
|
(162,318)
|
|
(215,011)
|
Cash dividends
|
|
|
(136,179)
|
|
(125,743)
|
Repurchase of common
stock
|
|
(39,528)
|
|
(12,906)
|
Payments of acquisition
related contingent consideration, less fair value
adjustments
|
(22,179)
|
|
(5,000)
|
Exercise of stock options
and awards, including tax benefit
|
8,560
|
|
11,934
|
Other
|
|
|
|
1,277
|
|
951
|
Cash Provided By (Used For) Financing Activities
|
110,193
|
|
(137,243)
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and
|
|
|
|
Cash
Equivalents
|
(39,345)
|
|
(1,881)
|
|
|
|
|
|
|
|
Net Change in Cash
and Cash Equivalents
|
(158,157)
|
|
(10,686)
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at Beginning of Period
|
332,868
|
|
343,554
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at End of Period
|
$
174,711
|
|
$
332,868
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rpm-reports-record-fourth-quarter-results-for-fiscal-2015-300118748.html
SOURCE RPM International Inc.