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Aug 31, 2020
RPM Q1 2021 Earnings Report
Growth resumed due to strategically balanced business model and operating improvement program
Key Takeaways
RPM International Inc. reported a 9.1% increase in net sales to $1.61 billion and a 70.1% increase in net income to $180.6 million for the fiscal 2021 first quarter ended August 31, 2020. Diluted EPS increased 69.5% to $1.39, and adjusted diluted EPS increased 51.6% to $1.44.
Sales increased 9.1% to a first-quarter record $1.61 billion
Net income increased 70.1% to $180.6 million
Diluted EPS increased 69.5% to $1.39; adjusted diluted EPS increased 51.6% to $1.44
Cash from operations doubled to a record $318 million due to margin improvement activities and good working capital management
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Group Revenue
CapyFin.com Forward Guidance
For the second quarter of fiscal 2021, the company expects to generate consolidated sales growth in the low- to mid-single digits with strong leverage to the bottom line for more than 20% adjusted EBIT growth.
Positive Outlook
- MAP to Growth program continues to have excellent momentum
- Ali acquisition will contribute towards second-quarter results
- Construction Products Group and Performance Coatings Group could experience sales declines for the next two quarters and then turn positive in the fourth quarter
- Consumer Group should continue its strong sales momentum throughout the fiscal year
- Specialty Products Group is likely to face flat sales comparisons during the second quarter, which should turn positive in the second half of the year
Challenges Ahead
- Construction Products Group and Performance Coatings Group could experience sales declines for the next two quarters
- Estimates assume that we do not experience a surge in Covid-19 that results in a second round of stay-at-home orders
- Continued economic uncertainty related to the impacts of Covid-19
- Upcoming U.S. elections
- Not providing fiscal 2021 full-year earnings guidance