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Nov 30, 2019

RPM Q2 2020 Earnings Report

Reported strong earnings growth driven by the 2020 MAP to Growth program, despite a soft macroeconomic environment.

Key Takeaways

RPM International Inc. reported a record $1.40 billion in net sales for the fiscal 2020 second quarter, up 2.8% over the previous year. Net income increased by 56.5% to $77.0 million, and diluted EPS rose by 59.5% to $0.59. The company reaffirmed its fiscal 2020 guidance for adjusted diluted EPS at between $3.30 and $3.42.

Net income increased 57%, diluted EPS up 60% and adjusted diluted EPS up 31%

Adjusted EBIT margin increases 180 basis points

Record cash flow from operations due to operating improvement initiatives and higher earnings

Fiscal 2020 guidance reaffirmed for adjusted diluted EPS for the full year at between $3.30 and $3.42

Total Revenue
$1.4B
Previous year: $1.36B
+2.8%
EPS
$0.76
Previous year: $0.52
+46.2%
Adjusted EBIT Margin
11%
Previous year: 9.2%
+19.6%
Gross Profit
$529M
Previous year: $538M
-1.6%
Cash and Equivalents
$208M
Previous year: $227M
-8.3%
Total Assets
$5.58B
Previous year: $5.24B
+6.5%

RPM

RPM

RPM Revenue by Segment

Forward Guidance

For the fiscal 2020 third quarter, we expect sales to be up 2.5% to 4% with strong leverage to the bottom line for an estimated 25% to 30% adjusted EBIT growth, resulting in adjusted diluted EPS in the high-teens to low-20-cent range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income